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	May 23, 2000	atimes.com

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Business in Asia Today

Nissan posts $6bn net loss for FY99
TOKYO - Nissan Motor Co (TSE:7201) announced Friday that it posted a 684.4 billion yen ($6.26 billion) consolidated net loss for fiscal 1999 - a record after-tax deficit for any nonfinancial firm in Japan - amid sluggish domestic sales and massive restructuring efforts. The struggling auto maker reported a 9 percent drop in group sales, to 5.97 trillion yen, slipping for the first time into third place behind Toyota Motor Corp (TSE:7203) and Honda Motor Co (TSE:7267). Honda posted sales of 6.09 trillion yen. Nissan suffered from a slump in domestic sales, which totaled 758,000 units, down 13 percent on the year. Overseas sales also dipped 1 percent to 1.65 million units.

DDI Pocket, Nissan Systems develop secure intranet
TOKYO - Users of DDI Pocket Inc's Edge PHS (personal handyphone system) telephones will soon be able to access corporate networks directly using a new Edgeport system jointly developed with Nissin Systems Co, the two companies said Thursday. The new system will go on sale in mid-June. Users will be able to use Edge phones equipped with network cards to check their e-mail messages or to scan information on the corporate network from any location, without a personal computer or Internet connection. The Edgeport system will offer a secure connection to the corporate network.

Saehan Group saddled with $2bn debts
SEOUL - Saehan Group has debts of 2.39 trillion won ($2.13 billion), main creditor bank Hanvit (KSE: 00030) said Friday. The total includes 1.42 trillion won from financial institutions and 970 billion won in unsecured corporate bonds and commercial papers.

Lucent to invest $120m in Korean ISP
SEOUL - Lucent Technologies is expected to invest $120 million in high-speed Internet service provider Hanaro Telecom. The two companies recently signed a memorandum of understanding to set up an ultra high-speed Internet network and will strike an investment agreement of vendor financing. Under the agreement, Hanaro will receive the investment and technology assistance from Lucent, which will own the rights to provide Hanaro with related equipment in return.

Korean investment trusts to receive public funds
SEOUL - The government said it would inject funds into Korea Investment Trust and Daehan Investment Trust in the middle of next month ahead of schedule to help resolve their liquidity problem. ''The planned supply of liquidity for the two investment trust companies will help dissipate stock market jitters linked with the disparity between supply and demand,'' Finance and Economy Minister Lee Hun-jai said in a meeting with the presidents of 34 securities companies Monday. The state-run Korea Asset Management Corp will deposit its surplus funds into the two companies, a senior ministry official said.

Shanghai Huateng gets $20m shot in the arm
SHANGHAI - The Shanghai Huateng Software Systems Co Ltd (Huateng SCUBE) announced it had received more than $20 million in equity investment from lead investors Warburg Pincus and Shanghai Information Investment Inc. Huateng SCUBE's founder, CEO and President Spencer Loh said the equity investment would be used to strengthen the company's infrastructure, human resources and technology base, as well as expand its national and global reach.

Shell signs offshore oil exploration contract in China
BEIJING - Shell Exploration (China) Co Ltd has signed a contract recently with the China National Offshore Oil Corporation (CNOOC) for searching oil on the 15-12 contract area of the Pearl River mouth on the South China Sea. The area covers 18.95 million square meters. Shell will bear all the risks. If reserves are found, CNOOC will enjoy a 51 percent equity.

Philippine Airlines restores flights to Sydney
MANILA - Philippine Airlines will be returning to one of its most important core routes when it starts a long-awaited direct service between Manila and Sydney, Australia, on June 2, 2000. PAL's resumption of flights to Australia after an absence of two years fulfills a long-standing commitment by the flag carrier to serve this major marker and steps up its drive to achieve full recovery ahead of its rehabilitation timetable, the airline said.

Power bill to boost Philippine stock market
MANILA - All Philippine companies engaged in the generation, transmission and distribution of electricity, or their holding firms, must offer and sell to the public at least 20 percent of their equity within five years under new legislation, House Majority Leader Eduardo Gullas said. ''This will go a long way in building up the stock market. Market capitalization and liquidity will surely improve,'' he said. Of the over 200 firms currently listed in the Philippine Stock Exchange, Gullas said only three are directly or indirectly engaged in the business of providing electricity. They are Manila Electric Co, First Philippine Holdings Corp and Benpres Holdings Corp, all of which are controlled by the Lopez Group.

Profits rise 1.3% for Citibank Malaysia in 1999
KUALA LUMPUR - Citibank Bhd recorded a pre-tax profit of RM345.53 million ($90.93 million) for 1999, up 1.3 percent from RM340.96 million in 1998. The total assets for the bank stood at RM15.187 billion, up 14.3 percent from RM13.282 billion previously, the bank said Monday. Its net income improved by a marginal 0.26 percent to RM692.539 million and core earnings rose to RM2.84 per basic share, up a marked 57.8 percent from RM1.80 in 1998.

CAHB posts $56.6m in profit in Q1
KUALA LUMPUR - Commerce Asset-Holding Bhd (CAHB)(ASX:COMM) registered RM226.6 million ($59.6 million) in group profit before tax for the quarter ended March 31, 2000 compared with RM82.7 million posted in the same period last year. The bank attributed the increase to higher income earned. It said that Bumiputra-Commerce Bank Bhd Group recorded RM139.0 million in profit before tax for the quarter against RM35.3 million in the corresponding period last year.

June deadline set for Bank Negara's recapitalization
JAKARTA - Co-ordinating Minister for Economy, Finance and Industry Kwik Kian Gie said the second phase of recapitalization of the state owned bank BNI (JSX: BBNI) would be completed by the end of June. The final phase of recapitalization of the bank will cost an estimated Rp31.8 trillion ($3.8 billion).

Australian's Leighton wins US$454m Indonesian deal
SYDNEY - Construction heavyweight Leighton Holdings Ltd (ASX:LEI) has moved again to boost its presence in Asia, securing a long term mining contract in Indonesia valued at approximately $800 million ($454.48 million). Under the move, PT Thiess Contractors Indonesia, a subsidiary of Thiess Contractors Pty Ltd - which is a subsidiary of Leighton - will operate the mines of local firm PT Arutmin, Leighton said.

India may amend tax laws to improve payments
NEW DELHI - The government is considering bringing amendments to the Income Tax Act to make it mandatory for those going on appeal on income tax dues to make part payment before the start of their proceedings. ''We are certainly looking at an amendment in the law to ensure that anyone who goes on appeal, pays a part of the dues to prevent the litigants from taking advantage of the time-consuming proceedings,'' Indian Finance Minister Yashwant Sinha said, referring to tax arrears of about Rs400 billion ($9.1 billion) in the form of direct taxes.

India may amend tax laws to improve payments
NEW DELHI - The government is considering bringing amendments to the Income Tax Act to make it mandatory for those going on appeal on income tax dues to make part payment before the start of their proceedings. ''We are certainly looking at an amendment in the law to ensure that anyone who goes on appeal, pays a part of the dues to prevent the litigants from taking advantage of the time-consuming proceedings,'' Indian Finance Minister Yashwant Sinha said, referring to tax arrears of about Rs400 billion ($9.1 billion) in the form of direct taxes.

India's Reliance makes offer for leading power utility
MUMBAI - Indian petrochem major, Reliance Industries Ltd (RIL), has made an open offer for further acquisition of equity shares of leading power utility BSES to raise its stake from the present 14.82 percent to 20 percent. RIL together with its wholly own subsidiary, Reliance Power Ventures Private limited, has informed the Securities and Exchange Board of India, the stock market regulator, the stock exchanges and the company of its intentions for further acquisitions of equity shares in BSES.

(Asia Pulse)

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