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September 22, 1999 atimes.com
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Business in Asia Today

Malaysia to levy flat 10% on investment profits
KUALA LUMPUR - A flat 10 percent levy on repatriation of profits on portfolio investments will replace the existing two-tier levy system with immediate effect, Bank Negara governor Ali Abul Hassan, said. In what is a major boon to foreign fund managers, he said the effect of this change is that there would no longer be any levy imposed on the principal amount. Besides this, the levy on profits made and repatriated within one year would be reduced from 30 percent to 10 percent.

 S Korea sets up $80m venture fund
SEOUL - South Korea's Small Business and Medium Administration said Tuesday it had set up a ''Korea Venture Fund'' with foreign and domestic investors, evenly splitting its $80 million capital. Domestic investors such as the Small Business Venture Fund and foreign investors will pay up $40 million each as capital for the new joint venture. The company will be run by four firms: The Korea Development Investment Management Corp, SSga of the United States, Yozma Fund of Israel and Vertex of Singapore. The new fund will provide loans to unlisted venture firms under the maximum lending limit of 5 billion won for each borrower.

 S Korea's SK Global to merge with SK Distribution
SEOUL - SK Global Corp (KSE:017400) says its merger this year with affiliate SK Distribution has been approved at a meeting of SK Group affiliate presidents on Tuesday. SK Distribution markets information communication equipment. SK Global has been expanding its information and communications marketing business by securing the exclusive rights to operate a high-tech wholesale business via the Internet in Korea from MBE Co of the US in June.

 Nissan to inject capital into subsidiaries
TOKYO - The Nissan Motor Co (TSE: 7201) and the Nissan Diesel Motor Co (7210) later this month will inject 22.7 billion yen ($216.8 million) each into the capital of the Nissan Diesel Motor Sales Co, a truck sales firm equally owned by the two companies, it was decided at separate board meetings Monday. Nissan Diesel will also pump 26 billion yen into the capital of 23 regional truck dealers affiliated with Nissan Diesel Sales. Further, the truck sales company is set to consolidate its 48 dealers nationwide into 16 as of October 1, company officials said. The capital increase will allow Nissan Diesel Motor Sales to trim cumulative losses and bad loans.

 Court orders halt in manufacturing of iMac lookalike
TOKYO - The Tokyo District Court ordered the Sotec Co on Monday to temporarily suspend the production and sales of its e-One desktop computer. The court cited the ''danger that consumers will confuse'' it with the iMac by Apple Computer Inc as the main reason for handing down the preliminary injunction. Apple Computer and subsidiary Apple Japan Inc sought the injunction against the Yokohama company. ''The iMac has an extremely original shape,'' presiding judge Toshiaki Iimura said. ''It gained a reputation for having a highly original shape and thus became a hit product. Not only do the two personal computers have curvy designs and common colors and materials, they have many details in common as well.''

 Suitor Telecom NZ proposes review of AAPT mobile arm
SYDNEY - According to takeover documents filed on Tuesday, suitor Telecom Corp of New Zealand says that if it is successful in its bid for AAPT Ltd, it will propose a review of AAPT's mobile phone business. The review would cover whether the business should be established on a stand-alone basis or whether it will continue under its plans for the company. Telecom on Tuesday served its formal Part A takeover documents on AAPT Ltd, arguing it should be able to improve the market position of AAPT if it acquires a substantial stake with its $5.10 per share bid.

 Australian govt to cut business tax rate to 30%
CANBERRA - Federal Treasurer Peter Costello on Tuesday announced a cut in the company tax rate to 30 percent in 2001-2002 and the scrapping of accelerated depreciation. The reforms to the Australian business tax system, which represent the first part of a two-stage consideration of the recommendations of the Ralph review of business taxation, will be broadly revenue neutral in 2000-2001 and are expected to drive an increase in production across the economy. A key reform in the report involves the reduction of the company tax rate in an effort to increase Australia's attractiveness as an investment location and strengthening its prospects for investment and economic and jobs growth.

 Hills Industries to acquire Australian hardware firm
MELBOURNE - Diversified manufacturer Hills Industries Ltd (ASX: HIL) is to acquire Triton Manufacturing & Design Pty Ltd, in a bid to further bolster its home and hardware products division. Announcing the acquisition on Tuesday, Hills chairman Bob Ling said the Triton range of workshop equipment would fit perfectly into the home and hardware division.

 Australia's Virax, CSIRO team on vaccine delivery
MELBOURNE - Virax Holdings Ltd, an Australian biotechnology company and the CSIRO have signed a licence agreement allowing the company to use a vaccine delivery technique for diseases including HIV/Aids. Virax said on Tuesday the licence gave it exclusive use of the CSIRO technology and expertise for all HIV/Aids applications, and for use with its existing Co-X-Gene technology for other human health problems. The agreement covers CSIRO's fowl pox virus vector technology, allowing Virax to use the virus as a vehicle to carry the active parts of a vaccine or treatment into the body.

 Explorer Boss Resources acquires Net business directory
PERTH - Explorer Boss Resources NL (ASX: BSS) on Tuesday became the latest mining company to join the push into cyberspace, acquiring national online business directory Aussie.com.au. Boss has arranged a $1.32 million share placement through Paterson Ord Minnet to fund the acquisition and ongoing development of the web-based directory, which it said already indexed 1.2 million Australian businesses and received over 250,000 hits per month. Critically, managing director Peter Youd said the acquisition would be cash positive immediately, given projected revenues of A$3.1 million (US$1.98 million) and a pre-tax profit of A$1 million in calendar 2000.

 Haworth Malaysia sees 80% rise in office furniture sales
KUALA LUMPUR - Haworth (Malaysia) Sdn Bhd, is confident of achieving an 80 percent increase in the sales of its office furniture for this year, managing director Ian Davies said. He, however, declined to disclose the total sales achieved by its Malaysian operations last year. The worldwide sales for Haworth Inc last year amounted to $1.5 billion. Haworth Malaysia, a wholly-owned unit of Haworth Inc, is a designer, maker and marketer of office furniture and seats.

 Taiwan chemical firm to build $15m Malaysian plant
KUALA LUMPUR - A Taiwanese firm, the Dairen Chemical Corporation (Dairen), will build an ethylene vinyl acetate copolymer emulsion plant at the Tanjung Langsat industrial estate near Pasir Gudang in southern Johore state. Johore Corporation chief executive Mohd Ali Hashim said the plant would be built on a 12 hectare site with a total investment of RM57 million ($15 million). The plant, to be owned by Dairen Chemical (M) Sdn Bhd, will begin operations from September next year with an annual capacity of 30,000 tons, Mohd Ali said in a statement.

 China finance firm buys Bank of Shanghai shares
SHANGHAI - With the approval of the People's Bank of China, the International Finance Corp has purchased 100 million shares in the Bank of Shanghai, with each share valued at 2.12 yuan. An agreement on the purchase was signed in Washington in early September. The corporation now accounts for 5 percent of the expanded shares, amounting to two billion in the Shanghai bank. The move indicates a major breakthrough in the reform of China's commercial banks. Since China started its reform and opening-up drive, it has been cautious on the involvement of foreign capital in financial business.

 Equitable Bank, PCIBank merger plan approved
CEBU CITY - A merger plan for Equitable Bank and PCIBank has been approved by both the Securities and Exchange Commission and the Bangko Sentral ng Pilipinas, creating the country's second-largest bank in terms of total assets, the new company said in a press statement last Friday. Based on June 1999 figures, the combined asset base of Equitable and PCIBank is about P248 billion ($6.1 billion), while its combined capital will exceed P50 billion, making it the largest in the industry, the company said. The merged institution will adopt the new corporate name Equitable PCIBank, the statement said.

 Joint tender by Korean firms wins Vietnam bridge contract
HANOI - A joint tender by Korea's Keang Nam and Vietnamese Civil Engineering Construction Corporations No1 and 4 has won a contract to build the Tan De Bridge over the Red River in northern Vietnam. The building contract was signed in Hanoi last Saturday with the Project Management Unit No 18. The joint operation, between 10 Vietnamese and international tenders, won with its bid of VND249.5 billion ($18 million) and other commitments. The 4.2 kilometer-long Tan De Bridge will be built on National Highway 10 on the outskirts of Nam Dinh City, linking the city and Thai Binh provinces.

 Indian state aluminum firm launches $184m expansion
NEW DELHI - The state-owned Indian Aluminium Company (Indal) had embarked upon a Rs 8 billion ($184 million) expansion plan to increase alumina production capacity and to set up a new captive power plant, a top company official said. ''Indal is increasing the alumina capacity from 318,000 tons per annum [ltpa] to 5.1 ltpa at a cost of Rs 4 billion [$92 million] at Belgaum [in Karnataka] and is setting up a new captive power plant at Hirakud,'' Indal Managing Director (Operations) N K Choudhary told PTI.

 Oman signs new oil exploration agreement
MUSCAT - The sultanate has signed a new concession agreement for oil exploration in Northern Oman with a consortium of three companies. According to the agreement, the consortium will spend $36 million in three stages of oil exploration for a period of up to nine years. Mohammed bin Hamad Al Romhi, the Minister of Oil and Gas, signed the agreement with representatives of Novus Australia Energy Company Pty Limited, Atlantis Holding Norway AS and Eagle Energy (Oman) Limited. Block 17 includes a land area in the Musandam Peninsula, a three-nautical-mile-long stretch of the surrounding sea area and the Wilayat of Mahdha.

(Asia Pulse)


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