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	February 02, 1999	atimes.com

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Business in Asia Today

Jakarta cuts crude palm oil export tax
JAKARTA - The Indonesian government has reduced export tax on crude palm oil (CPO) to 40 percent from 60 percent. Announcing the cut, the Finance Ministry said it hoped the tax reduction would lift the country's foreign exchange earnings from CPO. Under the new policy, export tax on refined bleached deodorised (RBD) palm oil and palm olein have been reduced to 32 percent from 55 percent, while export tax on crude palm kernel oil has been lowered to 30 percent from 50 percent.

Fujitsu opens circuit board plant in Vietnam
HANOI - Japan's Fujitsu company has officially opened a U.S.$60 million plant to manufacture printed circuit boards in Dong Nai province, 30km north of Ho Chi Minh City. With the new plant, the second Fujitsu plant in the province, Computer Products of Vietnam (FCV) aims to lift its annual turnover to U.S.$1 billion. The company, fully-owned by Fujitsu Limited, has already achieved a total output value of U.S.$700 million.

Manila to fast-track radar rebidding
MANILA - Philippine Transportation and Communications (DOTC) Secretary Vicente Rivera, Jr., has said that a U.S.$127 million dual radar system would be re-tendered and the winners known by end of March. "President Joseph Estrada wants a fast-tracked rebidding of the project. The project is long overdue and by March we should know the winner," Rivera said. The radar system is for joint use by the Armed Forces of the Philippines (AFP) and the DOTC.

Korean groups to close down 91 affiliates this year
SEOUL - The five largest conglomerates in South Korea will shut 91 affiliates this year, including 46 in the first half, according to restructuring programs submitted to creditor banks. The numbers break down is: 22 for Samsung Group, 25 for Hyundai, 26 for Daewoo, and nine each for LG and SK. Samsung would have 37 affiliates left, Hyundai 32, and Daewoo 10, if their restructuring plans work out. LG would have only 38 remaining subsidiaries and SK 25, but LG would have to close down six more affiliates, and SK three by 2000 to achieve their restructuring targets.

All major Indian ports to be corporatized
VISAKHAPATNAM, India - All major ports in India will be corporatized in a phased manner, a senior government official has announced. Surface Transport Ministry Secretary R. Vasudavan said the first phase of corporatisation would cover Ennoor port in Tamil Nadu, Jawaharlal Nehru port near Mumbai and Haldia Port in Bengal. With the participation of the private sector, many minor ports would be developed in Maharashtra and Gujarat as huge investments were required to develop ports, he said.

Australian engineering construction sector set to plunge
MELBOURNE - Australian engineering construction activity is poised to plunge 20 percent over three years from 1999/2000. While the sector will hold up surprisingly well in 1999/2000 with just a 0.5 percent decline, the downturn from the following year will be dramatic and mostly affect the private sector, according to a new study by BIS Shrapnel. The downturn will come after several years of strong minerals investment, major infrastructure and telecommunications construction, an upturn in residential construction, and "solid levels" of government and recreation spending. "From this point on, these factors will disappear one by one," the study said.

Hyundai, LG to sign stock contract
SEOUL - Hyundai Electronics Co. is expected to sign the contract on acquiring stock from LG Semicon next week, having neared agreement on job guarantees for LG Semicon employees after the take-over and layoff compensation, a Hyundai executive said. The Hyundai executive, requesting anonymity, said he as to meet LG Semicon officials Monday and start negotiating stock purchase price. They planned to wrap up the deal before next Wednesday.

Japan's Skylark, Bamiyan chains to merge
TOKYO - Family-restaurant chain Skylark Co. (TSE: 8180) said it will merge with Bamiyan Co. (7546), an affiliated Chinese-restaurant chain, on July 1. Skylark, which expects sales at restaurants serving Chinese food to grow considerably, plans to use its fund-raising strength to open 100 Bamiyan outlets a year. Under the terms of the deal, Skylark will be the surviving company, capitalised at 12.74 billion yen (U.S.$110 million) after the merger. Skylark has around 710 restaurants nationwide.

China to restructure power, telecom and postal prices
BEIJING - China will this year launch a new round of price reforms, with the restructuring of prices of electricity, postal and telecom services, housing and public utilities, according to the State Development Planning Commission. The prices of postal and telecom services will be reduced by a large margin, while electricity prices will be raised. The prices of electricity in rural and urban areas will also be unified.

Australia's CSR sells mining,civil contracting arms
SYDNEY - Australian building materials concern CSR Ltd. has continued its major restructuring program with the sale of two contract mining businesses to Downer Group Ltd. for around A$135 million (U.S.$84.85 million). The sale is only a relatively small part of CSR's refocusing, but it marks a major change for Downer which will emerge as Australia's second largest contract miner with a much broader and deeper share register after the purchase. Under the deal, Downer will pick up Perth-based contract miner AWP Contractors Pty Ltd. and Western Australian road works and infrastructure group CSR Contracting Ltd.

(Asia Pulse)

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