Factiva 20160512 1910

Shares of NOL unit peg ged at US$17.60-$19.50.
By Conrad Raj.
559 words
8 June 2001
Business Times Singapore
STBT
English
(c) 2001 Singapore Press Holdings Limited
Investors here can subscribe to American Eagle's SDRs at indicative price of between S$3.19 and S$3.52
(SINGAPORE) Marketing of the shares of American Eagle Tankers (AET), the oil transport subsidiary of
national shipping line Neptune Orient Lines (NOL), has kicked off at an indicative share price of between
US$17.60 and US$19.50.
NOL is doing an initial public offering (IPO) of 6.75 million shares or just over a quarter of Bermuda-registered
American Eagle's 25.38 million shares that will exist following the offering. That could increase with the
exercise of a 15 per cent greenshoe allotment.
As the main listing is on the New York Stock Exchange (NYSE), investors here will be able to subscribe to
Singapore Depository Receipts (SDRs) which are being issued in the ratio of one share to 10 SDRs and at
an indicative price of between S$3.19 and S$3.52.
The indicative prices are said to be based on a prospective price earnings ratio of around five times and a
price to net asset value of 1.15 to 1.28 times.
According to investment bank JP Morgan, this is in line with other global tanker operators, which are trading
at a P/E of 5.8 times.
However, US tanker operator General Maritime, which is placing out seven million shares in its IPO in the
next two weeks, is being priced at a higher P/E of eight to nine times and a price to net asset value of 1.76
times.
NOL is expected to raise between US$119 million and US$150 million, depending on the issue price and
whether the greenshoe allotment is exercised.
The national carrier, one of the world's top three shipping lines, had earlier said it would be using the net
proceeds of the IPO to buy more tankers or tanker businesses under American Eagle's fleet expansion plan.
Pricing and allotment are to be finalised on June 29, and the shares will start trading on July 2.
More than two-thirds of the shares are being offered in the US with the rest being marketed elsewhere,
including Singapore.
The listing will value American Eagle at between US$447 million and US$495 million, far higher than the
earlier indicated market capitalisation of US$300 million.
JP Morgan estimates the value of American Eagle per NOL share at between 50 and 56 cents, a third of the
national carrier's current share price of about S$1.50. Market rumours of the impending listing had driven
NOL share prices to an eight-month high of S$1.70 a share in May.
'We view this as a timely, strategic move by NOL to unlock the value in its chartering unit,' noted JP Morgan,
adding at the same time that 'in the prevailing high oil price environment, when tanker operators' profitability
is at its peak, American Eagle's spin-off could attract interest'.
Analysts also expect American Eagle's listing to increase awareness of NOL on Wall Street, while
strengthening its foothold in the US tanker and logistics markets.
Page 1 of 119 © 2016 Factiva, Inc. All rights reserved.

The shares are being marketed by a syndicate led by DBS Bank, Morgan Stanley, ABN-Amro and Salomon
Smith Barney.
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OUB faces lawsuit over sale of Leedon Rd property.
By Siow Li Sen.
719 words
8 June 2001
STBT
English
Businessman alleges house sold below true market value; OUB denies claims
(SINGAPORE) A businessman is suing Overseas Union Bank for allegedly selling his house below its true
market value, after the 37,247 sq feet Leedon Road home was sold last August for $11.7 million.
In a writ of summons filed with the High Court in April, Tai Sea Nyong alleges that OUB:
Failed to make a reasonable effort to market the property before its eventual sale.
Did not take reasonable care to obtain its true value.
Did not maintain it properly after it took possession, thereby causing it to sell for less than its true value.
Mr Tai, who is seeking damages from OUB, also claims that had the property been sold for its true market
value, the amount raised would have been sufficient to discharge all his outstanding liabilities to the bank.
He further claims that he would not have to sell his factory at Kaki Bukit Place to discharge his liabilities, and
alleges that his business has been jeopardised by the loss of the factory.
OUB took possession of the home at 20 Leedon Road about nine months before it was sold to Prospect
Investment Pte Ltd in what is believed to be one of the largest mortgagee sales of a single home in recent
times - in terms of price and the size of the property.
The property is described in Mr Tai's writ as a main detached house and an outhouse, with a spa pool, a
swimming pool and two fish ponds and a mature garden.
In his statement of claim, Mr Tai claims that the garden, pool and fish ponds needed daily maintenance and
periodic pest control and that it cost him an average $6,000 per month to do these things.
In its defence filed last month, OUB claimed that around December 1999 the property was valued at an open
market price of $13 million to $14 million and a forced sale price of between $11.7 million and $12.6 million.
Edmund Tie & Co carried out the valuations.
OUB said it extended loans and overdraft facilities to Mr Tai totalling $15,732,000 in June 1997, secured on
the Leedon Road property and another property at 34 Kaki Bukit Place.
According to OUB, Mr Tai defaulted on repayments on his borrowings and the bank began legal proceedings
to take possession of the house in July 1998.
OUB obtained a court order in August 1999 that said Mr Tai had to pay the bank $15,422,564.76 plus interest
owing at July 2, 1999, less $50,000 he had paid on July 16, 1999.
The court order also said OUB was entitled to exercise its power of sale over the Leedon Road property and
that Mr Tai must vacate it by August 20, 1999.
Mr Tai did not appeal against the order, OUB said.
OUB denied all of Mr Tai's claims and said it fulfilled its duties as the mortgagee in possession.
It said it took all reasonable steps to obtain the true market price for the property at the time of sale and
exercised due diligence in maintaining the property.

The bank said it appointed Knight Frank in December 1999 to market the property and hired Alexander Pool
Specialist to maintain the swimming pool, ponds and other water displays from December 1999 to August
2000.
Two auctions - carried out on Jan 6, 2000 and March 9, 2000 - were not successful, OUB said.
Open houses were held and 10 prospective buyers inspected the property, it said. Knight Frank also informed
the bank that none of the prospective buyers objected to the condition or state of repair of the property, OUB
said.
It said it obtained two firm purchase offers - $10.9 million and $11.5 million - and invited Mr Tai to revert with
any higher offer.
OUB said Mr Tai did not reply or object to the sale, and around May 2000 Prospect Investment made an offer
of $11.7 million. The sale was completed in August that year.
Carolyn Tan, of Tan & Au Partnership, is acting for Mr Tai. Hri Kumar and Ajay Advani, of Drew & Napier
LLC, are acting for OUB.
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Japan acts to soothe Asia's 'deep' WWII scars.
By Anthony Rowley.
551 words
8 June 2001
STBT
English
Improved Asia relations to be a cornerstone of foreign policy: official
In Tokyo
UNDERLINING the conciliatory tone being adopted towards China and other Asian nations by Prime Minister
Junichiro Koizumi's administration, a senior Japanese government official yesterday offered what amounted
to an elaborate apology for the 'very deep scars' that Japan's actions during and before World War II left on
parts of the region.
The official emphasised that improved Asia relations would be a cornerstone of Japanese foreign policy from
now on.
Referring to Japan's past colonising actions in parts of East Asia and its wartime activities, Seiken Sugiura,
senior vice-minister for foreign affairs, said that 'we have to think of the damage we caused to life and
property and of the scars deep inside'.
People in Asia 'have a strong sense of hurt that has not healed', added Mr Sugiura.
He was speaking during a two-day seminar on the 'Future of Asia' hosted by Japan's Nihon Keizai Shimbun
newspaper group.
Foreign Minister Makiko Tanaka, who had been invited to speak at the conference, did not attend but Mr
Sugiura was described as representing a 'direct channel to the (prime minister's) official residence in Japan'.
His repeated expressions of regret over Japan's past actions in Asia were seen as highly significant at a time
when Ms Tanaka has made it clear that Japan wants better relations with China and other Asian powers.
The continued importance of Japan-US relations was stressed at the conference, but the emphasis was on
building cooperation between Japan and its Asian neighbours.
At the same time, a former United States government official, Karl D Jackson, predicted that Washington
would 'move significantly closer to Japan and other democratic societies in Asia' under the administration of
President George W Bush.
'We will continue to see engagement with China, but China will not be a strategic partner of the US,' he
added.
Mr Sugiura stressed the need for Japan to improve relations with China, South and North Korea and with
Russia.
There are various 'issues' impeding good relations with these nations at present, but 'I am confident that all of
the problems can be solved', said the vice-minister.
He added that 'we have to strengthen and expand our relations with neighbouring countries'.
He also emphasised the need for Japan to build on its existing ties with Asean, especially in view of the
'political instability' currently afflicting some of the grouping's members.
Mr Sugiura referred specifically to the proposed 'new economic partnership' agreement between Japan and
Singapore, and suggested that, in time, this would be a forerunner of arrangements that strengthen Japan's
economic ties 'with Asean as a whole or even Asia as a whole'.
Mr Jackson, former assistant to the vice-president for national security affairs, meanwhile, suggested that
Asia could expect a 'more consistent approach towards foreign policy' under the Bush administration.

Nurcholich Madjid, rector of the University of Paramadina Mulya in Indonesia, predicted that his country
would eventually emerge in stronger condition from its current period of crisis.
'Indonesia is truly experimenting with democracy and there will be trial and error, but do not confuse popular
noise with problems of the state,' he said.
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China expected to sustain 7-8% growth.
By Vikram Khanna.
532 words
8 June 2001
STBT
English
Boost will come from infrastructure investments
(SINGAPORE) China's economy can sustain 7-8 per cent growth over the next five years despite sometimes
painful industrial and financial reforms, according to business consultant, author and China specialist
Lawrence Brahm.
In an interview, Mr Brahm said China's growth will primarily come from state investments in infrastructure.
China's 10-year blueprint to develop its central and western regions will also help boost consumer demand,
he said.
Beijing-based Mr Brahm pointed out that China's restructuring of its state-owned enterprises (SOEs) will not
slow its economic growth. 'If anything, it will allow growth to continue.'
He noted that the restructuring process is well under way, pointing out that during the past three years the
number of major loss-making enterprises has been cut from about 3,600 to 1,600.
Bank restructuring, under which non-performing assets have been transferred to asset-management
companies, complements SOE restructuring, he said, which in turn will enable further banking reforms.
According to Mr Brahm, the major potential impediment for China is social instability. 'China needs high
growth because it allows for the reabsorption of the unemployed into new, expanding industries,' he said.
However, he added that the risk of social instability is lower now than two years ago, when SOE reforms were
first implemented and many workers were laid off. 'Effectively, the worst is now over,' he said.
Mr Brahm pointed out that China's intense price-competitiveness in a number of products comes essentially
from low labour costs. 'People are coming in from the countryside to work for very low wages... If they don't
want the work, there are a lot of others lining up for jobs.'
Earlier, addressing a forum of CEOs here, Mr Brahm expressed concern about the state of US-China
relations.
He noted that Washington had adopted a 'confrontational' stance towards China by, among other things,
welcoming such figures as Taiwanese President Chen Shui-bian and the Tibetan Dalai Lama, as well as by
its plans to sell arms to Taiwan.
He said 'the best-case scenario is that this is part of traditional sabre-rattling for domestic consumption and
will die down'. But he suggested that more ominously, some US policymakers may be trying to fuel the
perception of China as a security threat to justify a major defence build-up.
'We can only hope that things don't escalate.' he said. Strained US-China relations could delay China's entry
to the World Trade Organization (WTO) at least until around October this year, according to Mr Brahm.
After China enters, new opportunities will open up, he said - notably in the banking, telecoms and financial
services sectors - but these will most favour large companies already operating there.
However, he cautioned that it will be difficult for China to implement many of its commitments to the WTO on
liberalisation and transparency within the five-year timeframe it has been allowed. 'People in China say, the
sky is high and the emperor is far away,' he observed. 'I say the sky is high and Geneva is even further
away.'.
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PM Goh to meet Bush in packed US programme.
By Chuang Peck Ming.
426 words
8 June 2001
STBT
English
(SINGAPORE) Prime Minister Goh Chok Tong will see George W Bush during a four-day visit to the United
States next week, the first South-east Asian leader to meet the new US president.
Mr Goh - who was last at the White House in 1998 when a Democrat, Bill Clinton, was president - will be
accompanied by Foreign Affairs Minister S Jayakumar and Trade and Industry Minister George Yeo, the
Prime Minister's Office said in a statement yesterday.
The Singapore leader will have a packed programme in the US capital. He will also have talks with
Vice-President Richard Cheney and other senior officials of the new Republican administration, including
Secretary of State Colin Powell, Defence Secretary Donald Rumsfeld, Commerce Secretary Donald Evans,
Treasury Secretary Paul O'Neill, US Trade Representative Robert Zoellick and National Security Adviser
Condoleezza Rice.
Except for Mr Cheney, Mr Rumsfeld and Gen Powell, Mr Goh will be meeting the officials for the first time.
In addition, Mr Goh will call on several leading members of Congress, hold discussions with board members
of the US Chamber of Commerce, give a keynote speech to US political and business leaders at the 9th
US-Asean Ambassadors Tour Dinner - the first Asean leader to do so - and meet Singaporeans working and
living in Washington DC.
The US is Singapore's second-biggest export market and biggest source of foreign investments. Mr Goh's
visit comes at a time when US and Singapore officials are working out a free trade pact, while President
Bush is trying to persuade Congress to provide him the trade promotion authority to speed up the push for
global free trade.
While the issue will be raised - especially during his meeting with Mr Zoellick and William Thomas, chairman
of the powerful House Ways and Means Committee - the main purpose of Mr Goh's visit is not to lobby for a
smoother and quicker end to the US-Singapore free trade talks, which Singapore hopes to see wrapped up
by the end of the year.
The visit is expected to cover many areas, reflecting the many ties between the two countries. But the primary
message Mr Goh will want to convey is this: it is important that the US stays interested and engaged in Asia if
there is to be peace and prosperity in the region.
Mr Goh will be away from June 9 to 18. In his absence, Deputy Prime Minister Lee Hsien Loong will be Acting
Prime Minister.
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Power politics hits Indonesia's power industry.
By Simon Montlake.
1,072 words
8 June 2001
Straits Times
STIMES
English
WHOEVER is running the show in Jakarta after August will face some tough economic choices in the
months ahead. Protracted political infighting has taken its toll on Indonesian business confidence and sent
currency and stock markets to stomach-churning lows.
Relations with the International Monetary Fund remain testy and most foreign investors are giving the country
a wide berth. A popular president could help reverse the drift, but repairing the damage will be a long, painful
process.
One of the biggest challenges lies in the electricity sector, which has become a daily necessity for the people
of Indonesia.
Few corners of the archipelago are untouched by electricity and its rapid spread was the cornerstone of
former President Suharto's industrial policy.
But, unless something is done to sort out the financial ruin bequeathed by Mr Suharto to PT Perusahaan
Listrik Negara (PLN), the state electricity company, the lights would not be burning much longer. Indeed,
Jakarta could face daily blackouts within two years, if nothing is done to stop the rot. Like many Indonesian
state companies these days, PLN is broke. Not just short of cash, but running at a huge loss, no matter how
much it tries to tighten its belt.
It is not hard to figure out why: PLN sells electricity to its customers for an average of 2.5 US cents (4.5
Singapore cents) per kilowatt-hour, but pays around 6 US cents per-kilowatt hour to private plants which
supply power to the national system.
It can generate its own electricity more cheaply, but not enough to meet demand, which rose 11 per cent on
the main Java-Bali network last year.
PRICE HIKES MAY BE INEVITABLE
IN A tight budgetary spot, Indonesia agreed recently to slash subsidies on fuel and power later this month.
This will push electricity prices up to around 3 US cents per kilowatt hour, although poor households will pay
less. Fuel prices are set to rise by 30 per cent.
Some politicians, worried by the memory of Mr Suharto's fatal fuel-price hike in April 1998, are wary of raising
prices too much. Businessmen share those concerns: Higher petrol prices hobble the economy by raising
business costs and driving up inflation.
But, in the case of electricity, industry experts say the country has to prepare for more pain - or face
blackouts in Java by 2003. In fact, some say that the government must raise consumer prices as high as 7
US cents per kilowatt hour within the next four years.
This is necessary, not just to rescue PLN from the brink of bankruptcy, but also to pay for new generating
capacity and transmission lines.
As it emerges from the financial crisis, Indonesia's demand for power is rising and someone has to foot the
bill.
However, somewhere behind the mathematics lurks a bright shining lie. Why does PLN pay such high rates
to its private power producers, when independent plants in other countries offer much lower rates?
The answer is that Indonesia contracted in the early 1990s to pay these rates to 27 foreign-owned power
producers - all of which struck deals with the Suharto family and their associates.

Mr Suharto's children and cronies got free stakes in power projects worth up to US$2.5 billion apiece.
Lenders such as the World Bank and Asian Development Bank chipped in with billions of dollars in project
financing.
And, at the end of the feeding chain, PLN agreed to buy all the electricity generated at guaranteed 'take or
pay' US dollar-denominated prices, then ran promptly into difficulties after the rupiah began sliding in 1997.
It soon became clear that PLN could not afford to pay all the private producers, and several projects were
shelved. Indonesia's severe recession also cut demand for electricity after years of breakneck growth.
But foreign owners who had completed their power plants were not about to let the country's near-collapse
stop them from collecting their investment.
Arm-twisting from the US government, which had backed several projects led by US power companies, only
added to the pressure on Jakarta to honour the contracts.
Aggrieved PLN officials, who had been overruled by Mr Suharto in awarding the contracts, accused these
producers of marking up the cost of their projects and demanded that they cut their rates. Investors baulked
at losing their honey pots. Keen to appear open for business, President Abdurrahman Wahid's government
soon fell into line and pulled a lawsuit by PLN against one of the most controversial projects, 1,230-megawatt
Paiton I in East Java.
An interim deal was reached to reduce Paiton's rates from a jaw-dropping 7.9 US cents per kilowatt hour to a
more manageable level. Other power producers did not stay the course: MidAmerican Energy Holdings made
an insurance claim of US$290 million after PLN refused to buy power from Mid-American's plants in Central
Java.
Unluckily for Indonesia, the insurer was the US government's private insurance arm OPIC, which is going
after Jakarta for the money.
Much to the dismay of some law-makers, economics chief Rizal Ramli agreed recently to pay US$260
million to OPIC, even though Indonesia's sovereign debt has already soared to 100 per cent of GDP.
Yet, despite the boom in private power plants, Indonesia is once again running short on juice.
HONOURING U.S. CONTRACTS
IT IS not only a question of more generating capacity; Java and Bali desperately need a new US$100-million
transmission line to avoid blackouts.
Who is going to pay for this? Not the foreign investors and lenders who bankrolled tainted projects like Paiton,
nor the Suharto children who creamed off the profits at the start.
And do not expect a Megawati-led government to spoil the party by taking on US corporations over their
involvement in projects that smack of corruption.
That would quickly incur the wrath of the US government, which insists that the contracts must be honoured.
Privatising PLN might be a way out, but risk-averse buyers are likely to baulk at the selling price.
Instead, Indonesian consumers and companies will just have to fork out more to keep the lights burning for
the long, difficult nights to come.
[The writer, a business journalist based in Jakarta, contributed this article to The Straits Times.].
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PacNet launches LAN service aimed at SMEs, Sohos.
By Andrew Wee.
268 words
7 June 2001
STBT
English
Users can save on support, training and other costs
PACIFIC Internet (PacNet) has launched a computer network service for the corp orate sector. Called
Smart-LAN, the service offers a suite of managed local are a network (LAN) solutions. 'The introduction of
this new service will make Pacific Internet the first ISP
in Singapore to offer an outsourced LAN service as an extension of its service
to provide end-to-end Internet solutions for its customers,' said the company.
Smart-LAN is aimed particularly at small and medium-sized enterprises and smal l office/home office users.
The service includes the rental of a Compaq ProLiant server, wireless networki ng equipment (which means
that users need not be bound to their desk PCs), and a 512 kilobit-per-second high speed ADSL (asymmetric
digital subscriber loop) I nternet connection. It also includes an Internet cache accelerator, e-mail acco unts,
anti-virus scanning and a managed firewall for Internet security. PacNet general manager for Singapore Ong
Teck Guan said: 'Smart-LAN service is
one of a series of outsourced services that we want to bring to corporates to help them manage the full
spectrum of their Internet needs.' According to PacNet, hardware and software components constitute only
one quar ter of total cost of IT investments. By delivering service and support through the Internet,
businesses can save on
support, maintenance, training and upgrade costs. Smart-LAN is priced at $2,28 8 a month for up to 10 users
and $2,888 for up to 25 users.
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LETTER - Guidelines on MVC have been formulated.
I REFER to the letter, 'Start compulsory MVC with 3% of basic wage' (ST, June 2), by Mr Eric Wong. Mr
Wong observed that many companies have yet to implement the monthly variable component (MVC) as its
implementation is currently not mandatory and there was an absence of clear guidelines on its
implementation. He suggested that the Government make it compulsory for 3 per cent of current basic wages
to be set aside as the MVC to accelerate its implementation. We share Mr Wong's concern that many
companies have yet to implement the MVC, particularly those in the non-unionised sector. Given the
rapidly-changing business conditions, it is important that the MVC be built up as soon as possible. We would
like to inform Mr Wong that a tripartite committee comprising representatives from employers, trade unions
and the Ministry of Manpower (MOM) had in
463 words
7 June 2001
Straits Times
STIMES
English
fact formulated a set of guidelines on the MVC. The guidelines cover the rationale, key principles and
implementation details of the MVC, including how it could be progressively built up, adjusted downwards and
restored. They provide a framework to assist companies and unions in implementing the MVC smoothly. The
guidelines are currently available at the MOM, the Singapore National Employers Federation (SNEF) and
the National Trades Union Congress (NTUC). They are also available at MOM's website at www.gov.sg To
help promote the implementation of the MVC, the three parties have also conducted briefings, workshops and
seminars to explain the guidelines, particularly, how the MVC could be built up and adjusted.
On how the MVC could be adjusted in times of a sudden business downturn, the tripartite committee had
recommended that since the application of the MVC was intended to be company-specific, employers and
unions/employees should discuss and establish appropriate indicators for its reduction and restoration,
taking into account the nature of their business, prevailing business conditions, profitability and prospects,
etc. With regard to Mr Wong's suggestion for Government to mandate that 3 per cent of the current basic
wages be set aside as the MVC to accelerate its implementation, we wish to highlight that the National
Wages Council (NWC) had recommended a promotional approach to encourage employers and trade
unions/workers to build up the MVC from future wage increases. A promotional approach would enable
employers to build up the MVC at their own
pace, taking into consideration the amount of wage increases to be granted, their performance and
prospects, and the interests and views of their employees and trade unions. This would also provide
flexibility and avoid rigidity in the implementation of the MVC. We would like to thank Mr Wong for his
suggestion.
JEAN TAN, DirectorCorporate Communicationsfor Permanent Secretary, Ministry of Manpower
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New kitchen and labs let undergrads test out what we eat.
By Spencer Ng.
317 words
7 June 2001
Straits Times
STIMES
English
THEY do not just eat their food. They also 'play' with it, cut it to bits or simply study it under the microscope.
This is what the 67 students from the Food Science and Technology (FST) Department in the National
University of Singapore (NUS) routinely do to 'food', which is also the main subject of their course. Miss Liu
Mei Hui, 21, a second-year student who is also the best overall student in the FST programme this year, said:
'Experimenting with food is part of the syllabus in this department. 'For example, in one of our experiments,
we had to extract oil from spring rolls and then test the oil for its composition and nutritional value.' To provide
students with the necessary equipment to conduct their experiments,
the department opened a new facility. It comes complete with laboratories, a kitchen and a small
food-processing factory. Opened officially yesterday by Mr Sidek Saniff, Senior Minister of State for the
Environment, the facility is located at the Faculty of Science in NUS. Costing $1.5 million to build, it can be
used to conduct food-tasting sessions
as well as safety and quality testing. Dr Philip Barlow, the director of the FST programme, announced that
these newly opened laboratories are specially built for the programme's students and staff so that they will no
longer have to use the facilities from other departments. NUS has been conducting the programme for two
years. The first cohort of students has moved on to industrial placements, both in Singapore and overseas,
including countries such as Switzerland, Australia, New Zealand and Europe. Commenting on the job
opportunities available to graduates, Mr Daniel Chia, 24, a first-year student, said he is looking forward to
finding work in areas such as consultancy, quality control, research and food production.
Document stimes0020010715dx67009j5

Engineers who feel the pulse.
By M. Nirmala.
849 words
7 June 2001
Straits Times
STIMES
English
NUS teams up with Dutch varsity to create engineers who can add value to a product with innovations and
designs that are people-friendly
WHY do people want their wine in wine bottles? Wouldn't they prefer cheaper wine in plastic bottles or cans?
Many might think the answers to such questions, bordering on taste and aesthetics, should come from
marketing whizzes or advertisers. But developments in the business world show that it is the engineer who
should
ask these 'why' questions because he is the main person who designs products. But are our engineers asking
these 'why' questions, or are they just designing
products which they think the market wants? Do they have an aesthetic eye or understand the quirky needs
of consumers? Can they dazzle investors with their oral or written presentations for projects? Because of the
way engineers have been trained for years, the answers to the above questions are likely to be 'no'. This is
the typical way an engineer is trained: He enters the university and specialises in an engineering discipline,
be it mechanical, electrical or civil engineering. After graduating, he might find himself in an air-conditioned
cubicle in a production factory in Tuas, designing plastic moulds which his company will use to
make more parts. Rare is the engineer who can produce something in Singapore that will be snapped up by
consumers in China and outsell a similar product made by a European market leader. To produce a new
breed of engineers, changes need to be made in the way engineers are taught and trained. In a significant
move to address these challenges, the National University of Singapore (NUS) has teamed up with a Dutch
university that has built up a reputation over the years for training engineers who can combine knowledge
with feelings. The Technische Universiteit of Eindhoven (TU/e) will help train a pool of graduate engineers at
the $28-million Design Technology Institute in NUS. The institute's work will carve new frontiers in
engineering. For instance, courses will be multi-disciplinary in focus, not mono-disciplinary. So, an engineer
will not zoom in on only one engineering speciality. Instead, he will work closely with the industry, designing
real products - not projects in the classroom - to pass examinations. He will be taught marketing skills, how to
factor in costs and make snazzy presentations. These changes are necessary as competition hots up on the
global front. The time needed to put products out on the market is shrinking. NUS vice-chancellor Shih Choon
Fong feels that Singapore has done well in getting students to master engineering concepts and function
well in the manufacturing sector. But it must now move on and train students to add value to a product with
innovations and designs that are people-friendly. One classic example, he said at a press conference, is
Nokia, Finland's immensely-successful mobile-telephone maker. Instead of highlighting its product as
technologically superior, Nokia has labelled its product, Human Technology. 'For engineers to be effective,
they must look at the senses and feel with the
heart,' explained Prof Shih, a Harvard-trained engineer. Agreeing, Dr H.G.J. De Wilt, TU/e's president, said at
the same meeting: 'As we move away from manufacturing and move towards the design industry,
technology
will be embedded in aesthetics. Engineers have to start asking questions. 'For example, why do we provide
20 different settings in a washing machine when customers usually use only one?' Another oft-quoted
example of how engineers cracked a problem by looking at human behaviour is the Swatch story. Before the
1970s, the Swiss led the watchmaking industry. Then they were jolted out of their complacency by Asian
manufacturers who made
low-cost, good-quality quartz watches. Instead of using the conventional methods of cutting costs, Swatch
engineers got cracking, finding out what people really liked. For inspiration, they examined children's Lego
blocks and drew ideas for injection moulding and die-casting. They modelled the watch after the sleekness of
disposable plastic lighters. The answer: A plastic watch. And it revolutionised the watch industry. Costs
came down because each watch had only 51 parts, compared to the 150 parts found in conventional
watches. Customers were also enticed
to buy three, 10, or an entire collection of Swatches. And they did. Engineer and entrepreneur Nicholas G.
Hayek, the genius behind the Swatch feat
and head of Zurich-based Hayek Engineering, said the critical element was understanding human feelings.
He said in a website: 'We are selling an emotional product. You wear a watch on your wrist, right against your
skin. You have it there for 12 hours a day, maybe 24 hours a day. It can be an important part of your
self-image.' From Singapore to Switzerland, the future of engineering looks exciting. The training engineers
receive at the new institute here might just throw up a
technological designer who could revolutionise the way wine is bottled and sold. Now, that will be something
worth raising your glass to.
Document stimes0020010715dx67009iq

CaseTrust advises cut-price laptop buyers to hold out.
By Oo Gin Lee.
466 words
7 June 2001
Straits Times
STIMES
English
COURTS customers unhappy with the store's refusal to honour orders for cut-price computers have been
advised to wait before accepting its latest offer. Several customers ordered $2,799 Compaq laptop computers
priced by mistake at $279 on Courts' website last month. The store later rejected the orders. On Tuesday, it
offered gifts and vouchers to appease these customers. It had earlier offered discounts to the customers who
did not have their online orders filled.
The management committee of CaseTrust, the Consumers Association of Singapore's (Case)

business-accreditation scheme, said in a statement yesterday: 'We are still investigating the circumstances
surrounding the error made by Courts concerning the pricing of a notebook computer.' This was its advice to
the dissatisfied customers: 'As we have not been satisfied with explanations given thus far nor redress
possibilities, unless affected customers are happy with the proposal by Courts, we would recommend that
they preserve the status quo, and hence their rights. 'Investigations and negotiations are ongoing.' As a
CaseTrust member, Courts is supposed to follow its guidelines on fair trading practices. Case president Teo
Ho Pin said: 'If a CaseTrust member is a recalcitrant, we will not spare any effort to delist them or even
blacklist them.' It all started last month when Courts said it would not fulfil orders for the $2,799 Compaq
laptops advertised erroneously for $279 on its website. Instead, it offered a 5-per-cent discount for those who
had placed orders. On Tuesday, Courts added free printers, scanners and other goodies to sweeten the deal
for those among the disgruntled customers who were willing to pay the correct price. It failed to appease
them, especially those who insisted Courts had accepted their initial orders, since the purchases had been
charged to their credit cards, then reversed later. One of them, Mr Choong Kheen Yau, 34, who had ordered
three laptops, said disdainfully of the sweeteners offered: 'My two-year-old printer and scanner at home are
better than what Courts is offering.' Two litigation lawyers said that once Courts charged the purchases to the
customers' credit cards, it could be argued that the customers had a valid sales contract with the retailer. One
of the lawyers, Mr Tan Peng Kwee, said that the fact that the charges were
reversed did not change anything. He said: 'The issue is whether Courts has acted in a way that shows that
they have accepted the orders, not whether Courts gets any money at the end of the transaction.' On
Tuesday, Courts maintained that it was not obliged to fulfil the orders because 'the transactions were
reversed in exactly the same way that other errors are reversed by the credit-card company'.
Document stimes0020010715dx67009ip

US envoys upbeat despite S-E Asia woes.
By Zuraidah Ibrahim.
563 words
7 June 2001
Straits Times
STIMES
English
Diplomats to the region optimistic about its long-term prospects but note factors blocking investment, which
has not returned to pre-crisis levels
PALO ALTO - South-east Asia may face many challenges but United States diplomats working in the region
said here that they were not pessimistic about the region's prospects. In a roundtable discussion held by the
Shorenstein Forum at Stanford University on Tuesday, three United States envoys and other high-ranking
diplomats gave their views on the current economic and political issues preoccupying the region. They gave
an upbeat assessment of the region's prospects over the long term but cited uncertainties that could continue
to deter the flow of investments back
to the region. US Ambassador to Malaysia Lynn Pascoe noted that investments had not returned to the levels
prior to the Asian financial crisis, and there were fears of marginalisation in Singapore and Malaysia as
China increasingly became an more attractive market for products and investments. These fears of being less
attractive to investors would prompt Asean members to revitalise their organisation and re-energise their
commitment to their free-trade agreement, he predicted. Washington's Ambassador to Indonesia, Mr Robert
Gelbard, highlighted the challenges of managing public expectations, building democratic institutions and
tackling corruption in the country. Commenting on President Abdurrahman Wahid's fortunes, he said that his
biggest
problem was his inability to deliver some short-term results to try to assuage
Indonesians' high expectations following their first democratic elections. If Vice-President Megawati
Sukarnoputri succeeds in taking over, she, too, will have to address those high expectations. 'She will face
the same problems, the same challenges,' he said. He noted in particular that pressures for decentralisation
would persist. How she meets the challenge of the separatist movement in Aceh will be an area
that the US will pay attention to. Should she take over, he said, the US would try and engage her government
in pursuing alternative non-military strategies of coping with the clamour for separation, including civilian
programmes that emphasise justice and human rights. Asked during the discussion about the impact of the
tense relationship between
the US and China, Mr Pascoe said the overall sentiment among Asean members was: 'Nobody wants to be in
bed with two elephants.' The expectation is that the US must be present in the region as a 'China handler'
but, at the same time, the best scenario for South-east Asia was good and stable US-China relations. As for
US ties with Malaysia, he acknowledged that relations had not been easy
going since the arrest of former deputy premier Anwar Ibrahim. He also said that while Malaysia's economy
was undergoing a slowdown, he expected it to 'weather the hiccup' and recover pretty smoothly. He also
believed that political transition in the country would not be an explosive affair. In comments on Singapore,
Mr Herbert Schulz, the charge d'affaires of the US Embassy in the Republic, highlighted Singapore's strong
fundamentals, including transparent rules for firms, a culture of two-way communication between business
and labour, and a political leadership that worked hard to stay in touch with
the grassroots. The session, attended by about 100 academics and businessmen, was part of a national
tour of ambassadors sponsored by the US-Asean Business Council.
Document stimes0020010715dx67009ic

Top-level reshuffles in SingTel, SIA boards.
By Denesh Divyanathan.
343 words
7 June 2001
Straits Times
STIMES
English
SINGAPORE'S two most profitable listed companies yesterday announced a boardroom shuffle at the
highest level which, analysts say, is likely to have little impact on the firms' bottomline. Singapore Telecom's
non-executive chairman, Mr Koh Boon Hwee, is stepping down
in favour of another board member - NatSteel president Ang Kong Hua - after nine years as group chairman.
Mr Koh, who has been credited with steering SingTel through its transition from a statutory board to a
public-listed company, will replace Singapore Airlines' non-executive chairman, Mr Michael Fam. Market
watchers said yesterday that the movements were unlikely to have significant impact on the operations of the
two companies since both positions are non-executive. In a statement yesterday, SIA said that Mr Fam, 74,
will step down from the SIA board, where he is the longest-serving director, at the upcoming annual general
meeting on July 14. Similarly, Mr Koh, who joined SIA's board in March, will not seek re-election to SingTel's
board of directors in August. His proposed replacement, Mr Ang, 57, was appointed a non-executive director
of SingTel only last month. Analysts said yesterday that Mr Koh's departure was 'somewhat expected' as it
had been the subject of speculation for some time. But they added that it was 'surprising' that Mr Ang would
be taking over as SingTel chairman. 'Koh Boon Hwee is well-respected by the market so his departure will be
SingTel's loss. But things shouldn't change too much because the management team at SingTel is staying
the same. 'And ultimately, it's really BG Lee that runs the company,' said an analyst with a local brokerage.
SingTel is led by Brigadier-General Lee Hsien Yang, its president and chief executive. SingTel yesterday paid
tribute to its outgoing chairman. 'Under his able leadership, SingTel has grown its business in spite of
increasing competition and continues to maintain its leading position in all key market segments,' it said in the
statement.
Document stimes0020010715dx67009i8

China fever continues to cool - property, tech stocks gain.
By R Sivanithy.
697 words
7 June 2001
STBT
English
THE play on China stocks continued to cool yesterday, while the Straits Times Index was supported by a rally
in property and technology issues. But a quiet opening for European markets - after only a marginally firm day
for Nasdaq futur es - meant prices closed off highs, with the biggest falls coming during the fi nal hour. At one
point, the STI looked like it might pierce the 1,700 mark - a level not
seen since May 11. But selling emerged late in the day - having peaked at 1,69 9, the index retreated to close
a net 4.51 points higher at 1,679.13. Some observers went so far as to suggest that the falls seen throughout
the ma rket after 4pm were due mainly to the meltdown in China stocks, particularly Ti anjin Zhong Xin.
'When Tianjin did well, so did the market,' said a dealer. 'Wh en it collapsed, sentiment was hurt and people
took profit.' Tianjin ended down 14.5 US cents, or 16 per cent, at 75 US cents on a volume o f 68.6 million
units. The stock has surged in the past few weeks because of a l isting of shares in Shanghai at a much
higher price than here. Tianjin debuted in Shanghai yesterday, ending at 28 yuan, or about US$3.36, ag ainst
its 10-yuan offer price. But the shares are not transferable between Sing apore and Shanghai - which
apparently haven't deterred punters so far. 'It was all down to momentum trading,' said a dealer. 'People are
always on th e lookout for something to pop into life. Look at Parkway, the moment it moved,
people rushed in.' Parkway Holdings hit a high of 98 cents in the morning but ended at 94.5 cents. Despite
the pullback in the broad market, brokers said there was still an unde rcurrent of optimism that the worst is
over. This is the signal from the US mar ket, where prices have held firm even when news has been bad. In a
comment on the Singapore economy, DBS Economic-Market Research unit said a turnaround in the fourth
quarter was possible. 'The impact of the sharp cuts in US rates should kick in by the second half,' it said. 'The
decline in the Si ngapore composite leading indicator appears to be moderating. And inventories h ave been
run down quickly, which will facilitate the recovery later.' Property stocks recovered some ground following
news that the government would
cut back its land sales programme, but market watchers believe the rise will b e short-lived. Kim Eng
Securities said the news may have a mildly positive effect on the sect or insofar as it could shore up
short-term sentiment in the sluggish residentia l market, but this is unlikely to lead to a surge in property
prices. 'The redu ction is not expected to benefit major developers such as CityDev, CapitaLand, Allgreen and
Keppel Land in the short to medium term as they already have sizea ble land banks on hand,' it said. Kim Eng
pointed out that the oversupply needs to be worked out of the system b efore there can be a sustained
recovery. 'Meanwhile, demand is not likely to im prove substantially with the slowdown in the economy, the
negative rental yield
and the subdued HDB resale market.' Possibly because investors know this, property stocks finished off their
highs
yesterday - CapitaLand, for instance, raced to $2.54, but closed just seven ce nts up at $2.44 with 6.1 million
shares traded. Elsewhere, the recent trend of improved sentiment towards new listings continu ed with the
debut of Colorland Animation, an animation service provider to film s and TV stations. Offered at 20 cents per
share, the counter hit an intra-day high of 40.5 cents before closing at 33 cents on a volume of 32.4 million
units. Excluding foreign currency issues, 541.6 million units worth $485 million were
traded. Non-Sing dollar issues added 102.6 million units and there were 162 ri ses against 137 falls.
Document stbt000020010716dx67003qd

Coping with the downturn sensibly.
685 words
7 June 2001
STBT
English
MARKET forecasts of Singapore's economic growth in 2001 have now fallen to 3.5
per cent, results of the latest Monetary Authority of Singapore (MAS) quarterl y survey of forecasters show.
The forecasts obtained in the June 2001 poll of 27 economists range between 0. 1 and 6 per cent, but
almost half of the projections fall within the 2.3 to 3.6
per cent interval. As a result, the median estimate is now 3.5 per cent - down
from 5 per cent in the March 2001 survey, and 6.5 per cent obtained three mont hs earlier last December.
The new median forecast is also the low end of the Mi nistry of Trade & Industry's growth projection for
the year, which stands a t 3.5 to 5.5 per cent, and had itself been pared, in early April, from earlier estimates
of 5 to 7 per cent. What's more, the economists polled by MAS' economics department reckon there's
a 56 per cent probability of GDP growth falling below the official 3.5 to 5.5 per cent forecast, and only a 36
per cent chance of it coming within that range. As for the likelihood of growth actually exceeding 5.5 per cent
this year - a
7 per cent chance, the economists say. Last year this time, the economy was no tching up 8-9 per cent
growth, and maintaining a double-digit pace of momentum.
The slump in sentiment, apparent for a few quarters now, stems largely from th e sluggish conditions in the
manufacturing and industrial sectors. After growin g 15 per cent last year, the manufacturing sector -
weighed down by weak extern al demand and a plunge in electronics performance - is expected to grow
barely 2 per cent this year. That's the median forecast from the MAS poll; the project ions actually span a
wide minus-5 to about 7 per cent growth, reflecting the un certainty in prospects and, to an extent, the uneven
performance from industry to industry. And the purchasing manager's index (PMI) readings continue to pain
t a fairly grim picture of the growth outlook for the manufacturing sector, esp ecially electronics. The key
indices show no turnaround in sight; the other PMI
findings also indicate that Singapore manufacturers seem to have hunkered down
for the downturn, managing their business 'with extreme caution'. From all acc ounts, most companies seem
to be in 'cutback' mode - budget constraints, bottom line imperatives and sheer caution. In such
circumstances, the first to go - or at least pared - tends to be discre tionary spending on non-core activities
and projects, even investment in IT and
training, and of course 'good-times' perks like travel, entertainment and othe r fringe benefits. But many
companies have also decided to freeze recruitment o r reduce through attrition, if not lay off some, and overall
moderate the wage bill. Anecdotal evidence from the PMI polls suggest that many companies are now
'hiring less and demanding more from their workforce', according to the survey
compilers. And these cutbacks are certainly not confined to the manufacturing sector; Bank of America
yesterday announced that it intends to axe 55 employees
in its equities and mergers and acquisitions units in Singapore, Hong Kong and
Bombay over the next few weeks. Invest in manpower When it comes to the crunch, companies and
businesses inevitably have to bite the bullet and do whatever it takes to stay afloat. But in other
circumstances,
unless the business is in a state of near-crisis, some of these cutbacks may w ell prove to be short-sighted
and counter-productive. For the fortunate compani es whose finances remain in a healthy state, an
economic slowdown is probably t he best time to invest in developing their manpower - and the myriad other

acti vities they had been hard-pressed to do when business was booming. Greater migh t be the opportunity
costs incurred when trying to pick up the pace when the ec onomy turns around - as it eventually will.
Document stbt000020010716dx67003qc

JBWere sets up shop in S'pore, thanks to GIC.
By Chuang Peck Ming.
627 words
7 June 2001
STBT
English
JBWERE is a name many investors think of when they want to buy Australian stocks - and this leading
investment house from Down Under has just set up shop here, thanks to the Government of Singapore
Investment Corporation. GIC's growth and its massive reserves have drawn many of JBWere's clients - the
global fund managers - to Singapore, says the firm's executive chairman, Terr y Campbell. 'They're now
operating their Asia-Pacific business out of Singapore, and so a lot of the business we do in London and
New York has moved here,' he
told BT. 'It therefore makes sense for us to establish an office to service the clients
who have moved here and, of course, GIC and other Singapore institutions we've
been dealing with for a long time.' Increasingly, also, fund managers are taking a regional approach to their
inve stments. 'They don't look at markets like Singapore and Australia individually, ' Mr Campbell said.
'We've got to present Australia and New Zealand as part of the region, and that's very difficult to do within
Australia. We can do it bett er by having a research, as well as a sales, presence in Singapore.' The
160-year-old JBWere - Australia's biggest, independent merchant bank and s tockbroker, with a private client
base worth more than A$30 billion (S$28 billi on) Down Under alone - has a small sales office in Tokyo, but
much of its Asian
business, from institutional clients, has been handled through its Melbourne h eadquarters for the past 35
years. Singapore, JBWere's biggest market in Asia and its Asian regional HQ from yest erday, will now take
on this role. Housed in Republic Plaza in Raffles Place, t he Singapore operation has kicked off with five
institutional advisers. The num ber of professional staff will grow to about a dozen in 12 months, when
researc h analysts and proprietary advisers are added. By then, JBWere may also introduce a retail sales
force - its first outside Au stralia and New Zealand. 'We're looking at whether it'll make sense, just to test the
market' said Mr C ampbell, who joined the firm in 1959. 'We've not tried out retail elsewhere in the world
(JBWere also has offices in London and New York), but it might work h ere because there are lots of social
links between Singapore and Australia.' JBWere, which boasts first-rate research and an ability to handle
large transa ctions, is hopeful its Singapore business will grow. According to Mr Campbell, recent mega
investments by Singapore Telecom in Australia and by Singapore Airl ines in New Zealand should arouse
considerable interest in corporate stocks in that part of the world. What's more, Singaporeans will soon be
able to deal directly in the Australian
Stock Exchange (ASX), and vice versa, following a recent agreement between the
Singapore Exchange (SGX) and its Aussie counterpart. 'The more trading there is between Australia and
Singapore, the better it's fo r us,' Mr Campbell said. 'We're sufficiently confident in our ability to think that if
more people are interested, there will be more business for us.' JBWere is already seeing a rise in interest in
Australian stocks, but that's d ue mainly to the current slowdown in the global economy. 'Investors are attract
ed to Australia because it's a safe haven in difficult times,' according to Mr Campbell. 'During periods of rapid
economic growth, investors put more money in Asia rat her than in Australia,' he said. 'But in times of slow
growth (like now), they look to Australia to provide safe investments with some growth potential.'.
Document stbt000020010716dx67003qb

South Kalimantan safe, governor tells S'pore.
By Conrad Raj.
494 words
7 June 2001
STBT
English
SOUTH Kalimantan governor Sjachriel Darhan yesterday met Senior Minister of State for Trade and Industry
Peter Chen to reassure the Singapore government and potential investors that all is well in the Indonesian
province. Dr Sjachriel said he has been encouraged by the response so far from Singapore
investors, especially those connected with the development of a US$1.2 billion
pulp mill for which Singapore Power is building and operating a US$300-million
power plant with a capacity of 120 megawatts. He also pointed out that 80 per cent of South Kalimantan's
trade goes through Singapore and said that further investments from the island would be welcome. The pulp
mill project includes the power plant, a water and effluent treatment
plant costing US$64 million by France's Vivendi Universal and a chemical treat ment plant costing US$84
million by Akzo Nobel. The mill will be South Kalimantan's largest foreign investment and will eventu ally
result in the creation of over 200 supporting companies and jobs for more than 200,000 Indonesians. China
State Construction Engineering Corporation will construct the pulp fibre
line, which will cost US$550 million before financing charges. Upon completion, the pulp mill will have a
capacity of 600,000 tonnes a year a nd will be among the world's top 10 hardwood market pulp producers. It
will als o be one of the world's most efficient mills and, according to one of the proje ct's proponents, will be
profitable even at prices around US$250 a tonne. Pulp prices are now about US$400 a tonne. Sweden's
Cellmark, the largest independent market pulp trader in the world, ha s agreed to take 90 per cent of the mill's
output for at least 10 years at prev ailing market prices. According to Dr Sjachriel, preliminary agreements
have been signed with all th e parties concerned and work on the project will begin in the first quarter of next
year. 'South Kalimantan and the central government are supportive of the greenfield project as it will act as a
catalyst for the state's economic development,' he said as he reassured Singaporeans that South
Kalimantan is one of the safest pl aces to invest in Indonesia. Finance for the project is expected to be raised
largely in Singapore, with ex port credits and other insurance providing guarantees against possible hitches.
'Most of the risks will be Singapore-based and that's why we are confident of going ahead with our water
treatment plant,' Vivendi Water's vice-president for
Industrial Service Asia, Richard Jacob, told BT. The mill will be environmentally friendly, with the wood
coming from a planted
forest of 100,000 hectares. Local company Poh Lian plans to get involved after the completion of its rever se
takeover by a consortium led by Tektronix, which is linked to Cellmark Holdi ng.

HP to make advanced chip for printers in S'pore.
302 words
7 June 2001
STBT
English
US computer giant Hewlett-Packard will transfer technology to Singapore for the production of an advanced
microchip used to control computer printers. The move follows a multi-million dollar project to upgrade and
expand HP's ink jet wafer fab at Depot Road, just off the Ayer Rajah Expressway. The plant will
be officially opened tomorrow, when HP is also expected to announce substantial new investment in
Singapore. With the plant's upgrading and expansion, it is expected soon to roll out adva nced JetMOS
microchips which are used to control the company's latest line of i nkjet printers. The technology to produce
the chips will be transferred to its Singapore unit,
Hewlett-Packard Singapore, for the first time. JetMOS chips are the main processors that control the
ink-firing action in HP' s high-resolution inkjet printers. Singapore is a major manufacturing centre for the
group - HP Singapore's first - half manufacturing turnover jumped 19 per cent to more than US$4 billion
year-on-year. At HP's interim results briefing last month, HP Singapore and South-east Asia managing
director Chia Wee Boon said the company would announce a significant ' operational investment' in June. BT
understands this announcement will be made tomorrow at the official launch of the revamped inkjet wafer fab
plant. In Singapore, HP makes about 40 per cen t of its products in-house. The remaining work is outsourced
to contract manufa cturers such as Omni Industries, Venture Manufacturing, Flextronics Internation al and
Solectron Corp. Last month HP reported strong first-half revenue growth in South-east Asia, de spite the
slowdown in the US economy. It expects revenue in the second half to be the same or slightly better
compared with the first half.

Tiong Woon bets on giant crane for a big lift.
By David Boey.
674 words
7 June 2001
STBT
English
LAND transport and heavy haulage companies know that they have to keep their e quipment well-oiled for
times when their customers come a-calling. With over 10 0 land transport companies in the game, the ability
to provide special services
is often what makes or breaks a company. For mainboard-listed Tiong Woon Corporation, its commitment to
providing speci al services comes in the form of a monster crane billed as the biggest in Asia.
With a lifting capacity of 1,000 tonnes, the German Demag CC 6400 crawler cran e is said to be rivalled only
by about five other machines in the world. This m akes it a special beast indeed and Tiong Woon's bosses
know their crane is one trump card its competitors will find hard to beat. In fact, Tiong Woon found a customer
for the giant crane so quickly that the c ompany hardly had time to repaint the machine in the company's
signature golden
hue or stencil its corporate initials on the crane. Still, giving the crane a stronger corporate identity hasn't
been a top priori ty for Tiong Woon's bosses. Soon after they bought the second-hand machine from
a Japanese company, they arranged to ship the crane direct to Jurong Island. I t is now being used to raise
heavy equipment at the Seraya Power Station and wi ll remain there till at least early 2002. Renting out such
a crane is big money. It is understood that these heavyweight
cranes can command rentals of $300,000 to $400,000 per month. Tiong Woon has s aid its turnover could
rise by some 5 per cent in FY2002, thanks to its new acq uisition. Tiong Woon chairman and managing
director Ang Kah Hong said: 'Ever since we bo ught this crane, we have received numerous enquiries from
interested parties, b oth within and outside Singapore.' On the stock market, transport and haulage
companies have been overshadowed by
the more alluring plays on electronics stocks. With investors' money drawn els ewhere and coupled with the
volatility of fuel prices, the handful of listed co mpanies in the sector - Eng Kong Holdings, Sembawang
Kimtrans and Tiong Woon - have seen their fortunes fade in recent months. At yesterday's price of 14 cents,
Eng Kong shares were down 20 per cent from t heir year's high of 17.5 cents. Sembawang Kimtrans shares,
which closed at 17 c ents yesterday, have fallen 13 per cent from their year-high of 19.5 cents. And
for Tiong Woon, the stock has fallen 21 per cent from its 19-cent high in earl y January. At 15 cents
yesterday, its price-to-earnings ratio is 10.9 and puts it five cents behind its initial public offer price. With little
good news on the horizon, land transport counters are expected to continue hugging the bottom in the
coming months. Said Tiong Woon's Mr Ang: 'The local construction sector has not improved and sentiment is
still weak. We are looking at ways to mitigate this reliance on th e construction industry.' With limited local
market demand and the regional economic and political insta bility, he said the group will face stiff
challenges in the near future. 'That is precisely why we bought this crane. We have to compete not only in th
is region, but also extend our services globally. We're ready to move into the international market and we
believe we have the facilities to do so,' he said. Looking at the way the company has steadily grown its fleet of
cranes to over 200 machines, Tiong Woon's monster crane is likely to have new stablemates as t he
company's expansion gathers pace. The company has bet heavily that these special machines will help lift its
ear nings, a view that might be shared by those market investors who think Tiong Wo on is making the right
moves.

BP starts talks on sale of SRC stake.
By Angela Tan.
381 words
7 June 2001
STBT
English
(SINGAPORE) BP Amoco has begun talks with prospective buyers of its one-third stake in Singapore
Refining Company (SRC) as a June target for the sale beckons, industry sources say. The British oil giant
has also distributed detailed information documents to p otential buyers worldwide. 'We have had some
interest expressed in the stake but we are unable to comment
on details of the evaluations of the bids offered,' BP Singapore spokesman Mat thew Yap told BT. SRC is a
petroleum refining venture owned jointly by BP, Singapore Petroleum C ompany (SPC) and Caltex
Corporation, a joint venture between Chevron Corp and T exaco. Each shareholder owns about a third of the
company. BP's chief executive for refining and marketing, Doug Ford, said last July tha t BP planned to sell
its SRC stake by June this year. BP's decision to shed the stake is in line with its global strategy to shift i ts
focus from refining to more profitable oil and gas exploration. Caltex and SPC, which is 77 per cent owned by
Keppel Fels, have pre-emptive ri ghts to BP's SRC stake in the event of a sale. Contacted by BT, a Caltex
spokesman said the oil company has not been approach ed by BP. 'We are aware that BP is in the process of
selling its stake in SRC but we can not comment unless a final offer is made for consideration,' he said.
Keppel Fels, which has made known its potential interest in the one-third shar eholding since BP's
announcement last July, said it too is aware that BP has di stributed information to prospective buyers. 'We
remain interested in the stake, if it comes at the right price,' a Keppel Group spokeswoman said. The refinery
business in Singapore is suffering from over-capacity and poor ma rgins, prompting some operators to
reduce buying of crude. According to industry sources, Asian refining margins using Middle East Dubai
crude oil as a benchmark have fallen sharply - to minus US$2.49 a barrel on Mon day, down from an average
of minus 15 US cents in the past 15 days. Monday's margins are the worst so far this year.
Document stbt000020010716dx67003pw

Decision on major petrochem plants in 6 months.
By Loh Hui Yin.
695 words
7 June 2001
STBT
English
Shell, Sumitomo and Mitsui may build one or even two ethylene crackers here
(SINGAPORE) Singapore will know in about six months if it gets to host new bil lion-dollar petrochemical
plants being considered by oil giant Shell and two Ja panese companies, Sumitomo Chemical and Mitsui
Chemicals. A Shell spokesman said the company was carrying out feasibility studies on the
project - an ethylene cracker that will easily cost US$1 billion. At a one-million-tonne capacity a year, the
cracker is considered a world-scal e plant and will be the fourth - and the largest in Singapore - if Shell
procee ds with it. 'We will decide by end-2001 whether to continue the development of this projec t. If the
project is approved and progresses as planned, the start-up could be around 2005-06,' said the spokesman.
The new investment will reinforce Singapore's efforts to develop a petrochemic als hub, and also help
cushion the down-cycle from the electronics sector. Ethylene is the basic building block for a range of
petrochemicals. Said a market observer: 'This is good news for Singapore. It makes us a more s erious
contender as a supplier of petrochemicals to the Asia-Pacific region. Th e EDB (Economic Development
Board) has been trying to promote Singapore as a su pply base to the region.' The Shell spokesman told BT
that Singapore was the only location being conside red for the project in order to leverage on its existing
investments. Apart from its well-established refinery on Pulau Bukom, Shell has invested mo re than US$1.6
billion in petrochemicals here, including a half-share in two et hylene crackers. The other half share is held by
Sumitomo Chemical. It is, however, not clear at this point if Shell will go it alone on the new i nvestment or will
continue to work with Sumitomo, which is being merged with Mi tsui Chemicals. The Anglo-Dutch company
said it is exploring 'various options, including the o ption to build the cracker on our own or together with
various partners'. 'Shell and Sumitomo Mitsui are currently having good and solid discussions but
we cannot conclude at this stage where these discussions will lead to.' Industry sources say Shell is leaning
towards having its own plant while the J apanese companies also want their own plant, raising the possibility
of two new
ethylene crackers here. These sources add that Shell and Sumitomo, equal partners in the Petrochemical
Corporation of Singapore which owns the two ethylene crackers on Jurong island, have not been seeing
eye-to-eye in daily management. However, a source questioned if demand would warrant two new plants.
'They are
both strong partners. They may have operational problems but if they stay focu sed, they should be able to
work together. To survive in the future, you need t o work together.' Sumitomo and Mitsui, which aim to effect
a full merger by October 2003, have s aid the merged firm will build a petrochemical complex in Singapore. It
will build an ethylene plant, also of one million tonne capacity. Perhaps reflecting their different positions,
Shell thinks it is a better idea
to locate the plant on Bukom to intergrate with its refinery. Furthermore, the re are existing pipelines which
can carry the cracker's products to the buyers who are mostly located on Jurong Island, it pointed out. 'So, for
the consumers of cracker products, there is no difference between the
cracker being built on Bukom or Jurong Island,' said the Shell spokesman. Shell will have to reclaim its
crowded Bukom island if it is to find land to a ccommodate the new project. Whether Singapore gets one or
two plants will depend ultimately on how much ne w capacity will be coming onto the market. Timing the
projects' start-up to catch the upswing in demand will be critical if the investments are to be economically
viable. Meanwhile, ExxonMobil's 800,000 tonne a year ethylene cracker, Singapore's thi rd and the largest at
the moment, has just started up.
Document stbt000020010716dx67003pv

New chairmen to take the helm at SIA, SingTel soon.
682 words
7 June 2001
STBT
English
Koh Boon Hwee slated to lead SIA, while Ang Kong Hua set to be SingTel chai rman
(SINGAPORE) A new round of top-level changes in listed government-linked compa nies (GLCs) has started
with the chairmen of Singapore Telecommunications and S ingapore Airlines to step down after the
companies' next annual general meeting. Koh Boon Hwee, who has been chairman of SingTel since the late
1980s when it w as still a statutory board, has been recommended to take over the SIA chair fro m Michael
Fam. Mr Ang: a high-ranking civil servant before becoming Singapore's 'man of steel '-Ang Kong Hua,
currently a director of SingTel, has been nominated to succeed M r Koh as chairman with effect from the
conclusion of the AGM, subject to Mr Ang 's re-election as a director. Mr Ang is president of Natsteel Ltd.
Both SingTel and SIA issued statements saying that their respective chairmen w ill not seek re-election to the
board at the forthcoming AGM. SIA's AGM is to b e held on July 14, while SingTel's is scheduled for August.
Mr Koh, 50, joined the SIA board three months ago and has been recommended by SIA's board of directors
to succeed Mr Fam. BT got wind of the impending changes some time back and contacted Temasek Hold
ings last week. The government holding company deliberated for a few days and e ventually said it would not
comment on market rumours. Temasek controls most GLCs, including SIA, SingTel and NatSteel. By market
val ue, SingTel and SIA, together with DBS Bank, are the three biggest listed compa nies in Singapore.
Since two years ago, Temasek has pushed for a separation of the chairman and chief executive in GLCs - it
would generally appoint a non-exe cutive chairman to counterbalance the CEO, who runs the show. SingTel's
CEO is Lee Hsien Yang while the CEO of SIA is Cheong Choong Kong. Mr Koh was first appointed chairman
of former Telecommunication Authority of S ingapore in October 1986 when SingTel was still a statutory
board. He was appoi nted chairman of SingTel in April 1992 following its corporatisation and has co ntinued
to serve in this capacity since then. He now sits on some 40 boards, mo stly technology companies. His
appointment to SIA's board three months ago sparked talk that he was repla cing the 74-year Mr Fam, who
has been interim chairman for the past three years. Mr Fam is said to want to spend the next few years to
restore the fortunes of
the once-powerful Fraser & Neave group. He took over as SIA chairman in June 1998 from former Cabinet
minister S Dhana balan, who took over the chairmanship of DBS Bank. Mr Dhanabalan is also chairm an of
Temasek. By contrast, Mr Ang's move to SingTel has caught many by surprise, not least b ecause he is seen
as more of an 'old economy' hand, given his long track record
at NatSteel. But he did preside over the diversification of NatSteel into electronics, in p articular contract
manufacturing. NatSteel recently sold off its associate NatS teel Electronics at a huge profit. Though Mr Ang
is linked in the public mind almost inextricably with NatSteel, he was in fact a high-ranking civil servant before
becoming Singapore's 'man of
steel'. In the early days of Singapore independence, he was with the Economic Developm ent Board,
together with Mr Dhanabalan, before EDB spun off its finance arm to become the Development Bank of
Singapore. Today, Mr Ang is on the board of the Government of Singapore Investment Corp (GIC) which
manages the country's reser ves. If he were to leave NatSteel, he would be hard to replace. It could signal tha
t Temasek might be willing to divest its stake in NatSteel to a foreign party, although given the weak state of
the global steel industry, it is unlikely to g et a good price from it.
Document stbt000020010716dx67003pu

AMK site a test of developers' confidence.
By Vince Chong.
722 words
7 June 2001
STBT
English
Response of property stocks to govt's cutback low-key
(SINGAPORE) The property market is expected to see a major test of developers'
confidence in about four months' time. This is because the government is due to launch in October a land
parcel in An g Mo Kio that will be the only government site to be released in the next half-year to involve
mass market developers. Response to the site, property consulta nts say, will be a good gauge of confidence
among industry players. The Ang Mo Kio site is one of five confirmed residential sites announced by th e
government on Tuesday that will be released in the next six months. Consultan ts say that of the five sites,
three will involve niche market developers, whil e one mixed residential/commercial site next to the Punggol
LRT station is not expected to feature strongly as the general area has not shaped up. The remaining site, at
Ang Mo Kio Ave 5/8 and slated to be launched in October, is the sole plot regarded to attract general market
interest. Jones Lang Lasalle's national director Steven Choo said: 'A landed parcel at S embawang, to be
released in July, is expected to generate demand from individua l contractors and smaller developers, while
the Pasir Ris executive condominium
(EC) and Enggor Street inner city site are also niche markets. Only when the A ng Mo Kio site is out will we
see the level of confidence in the market.' Dr Choo also reckoned that Ang Mo Kio is the best site among
those to be relea sed in the next six months because of its proximity to the MRT station and town
centre. The 215,278 sq ft 99-year condo plot for 580 homes is near Anderson Ju nior College and Nanyang
Polytechnic. However, Knight Frank's senior director Ong Teck Hui said that there is little
basis for comparison among the sites as all the parcels to be released are dif ferent. 'If market conditions are
fair, there could be interest for all of them,' he s aid. The Ang Mo Kio site is expected to attract bids in the
region of $150 million,
or $200 psf per plot ratio, with breakeven cost at $387 psf. As announced by Minister of National
Development Mah Bow Tan on Tuesday, land sales for this year have been scaled down to 4,000 homes,
including EC units. Due to be released in the second half of this year is land for some 1,700 home s, with land
for a further 2,300 homes placed on a reserve list. 'We take it as positive news that the supply is now
adjusting to current marke t conditions,' said CapitaLand president and chief executive Liew Mun Leong.
Property Enterprises Development (PED), the Singapore property arm of Hongkong
tycoon Li Ka-shing, is one developer which has indicated it would not be biddi ng for any of the released sites.
PED general manager Annie Loke said: 'We have no plans to enter this category of the private residential
market as it is already well-taken care of by existi ng players.' In the stock market yesterday, the response of
property stocks to the cutback in residential land supply was low-key, as expected. GK Goh analyst Tan
Cheng Teng said that not much movement was seen because the
news does not make much of a difference to a market that will still be regulat ed by property developers. This
was echoed by the research head of a foreign brokerage, who said: 'Proper ty share prices have been
strengthening in recent trading sessions as investors
believe that the worst has been discounted on the back of improving take-up ra tes in recent property
launches. 'On the back of less negative news recently, brokerage firms have also re-rate d the property sector
from underweight to neutral in the last few months.' Shares of property giant CapitaLand opened the day at
$2.36 and hit a high of $5.54 before pulling back to close seven cents higher at $2.44. Other counters, such
as Allgreen and Keppel Land, rose four cents and five cen ts to close at $1.10 and $1.97 respectively.
Document stbt000020010716dx67003pt

Visit Changi MRT station without going there.
By Steve Dawson.
458 words
6 June 2001
Straits Times
STIMES
English
Engineers can now take virtual tours of uncompleted projects, which can mean huge savings in time and cost
tours of uncompleted projects, which can mean huge savings in time and cost
WELL before the ground-breaking ceremony on the new MRT station at Changi had even taken place, those
charged with designing its interior had already strolled through a completed version of the train stop. Their
visit was virtual and they were able to do this by using an Automatic Virtual Environment (Cave). This is a
'room' where engineers can work on projects ranging from an MRT station and the interior of the
recently-opened Fullerton Hotel to an unexplored oil field. Through a Cave, they can ensure a structure is
both functional and pleasing to
the eye before it is built. This can mean huge savings in both time and cost. In a Cave, images of the
proposed structure are presented on a front wall, two
side walls and the floor using a three-dimensional projection, rather than on a desktop computer. Users can
move in any direction they want using a handheld control. The Cave was used recently to gauge how well
ventilated the proposed Changi MRT station and adjoining atrium will be. The 3 m by 3 m room at Science
Park Drive monitored simulated temperatures and
air flow in various parts of the structure, so that the optimal site for air vents could be determined. The Cave
was co-developed by the Institute of High Performance Computing and visualisation specialists Silicon
Graphics (SGI). 'We have 60 or more Caves implemented worldwide, and in the Asia-Pacific, we have five,'
said Mr Lawrence Lee, SGI's general manager. Singapore has two Caves. One is at the institute's office in
Science Park Drive; the other is open to the public at the Science Centre. Project managers viewing
environments like the Fullerton Hotel from within the
Cave can see it from just about any perspective. They can breeze through the walkways, wander up and
down staircases and even float into the air for a bird's-eye view. At the click of a switch, fixtures and
fittings, like the colour of wall tiles, can be changed instantly. The cost savings that the Caves offer are
particularly pertinent in the oil-exploration industry. Oil giant Texaco claims that using a Cave at a cost of
US$3
million (S$5.4 million) compares favourably to US$14 million for a seismic survey and US$40 million for
drilling an exploratory well. Caves have also been used in designing cars and pagers, and for taking virtual
galactic tours at the American Museum of Natural History in New York.
Document stimes0020010715dx66009hh

New stores in Johor will target S'porean shoppers.
By Reme Ahmad.
344 words
6 June 2001
Straits Times
STIMES
English
SINGAPOREANS will have more reasons to go across the Causeway over the next few years. Foreign
retailers in Malaysia say they plan to open more hypermarkets and superstores in Johor Baru, setting the
stage for the second big retail battleground
after Kuala Lumpur. Locally-listed Jaya Jusco says it plans to open three to four stores in the Johor capital.
'Some will be big to catch the Singaporean crowd,' Mr Soichi Okazaki, general manager of Jaya Jusco
Stores, told The Straits Times. Jaya Jusco is 42.4 per cent owned by Japan's Jusco Ltd. New local player,
Tesco Stores, is mum about its plans but is also expected to
an outlet in Johor, industry officials say. Johor Baru's status as the second biggest Malaysian city after Kuala
Lumpur is
another attraction. 'We target locals but Singapore customers are always a bonus to us,' says Ms Regina
Loo, director of marketing at TOPS Malaysia. The southern expansions will pitch them against rivals who
have established footholds there. These include French retailer Carrefour, Dutch hypermarket operator Makro
and Giant, controlled by Hongkong-based Dairy Farm. Major local player Parkson also has one hypermarket
in Johor under the Xtra Supercentre brand. The big players TOPS Supermarket Foreign group:Royal Ahold
(Holland), 100 per cent equity. Local partner: Nil. Outlets: 39. GiantForeign group: Dairy Farm (Hongkong), 90
per cent equity. Local partner: Teng family, 10 per cent. Outlets: 13. Jaya Jusco Foreign group: Jusco Ltd
(Japan), 42.4 per cent. Local partner: Pelita Dekad, 10.7 per cent. The rest is owned by minority
shareholders. Outlets: 8. Makro Foreign group: Orkam Asia (Holland), 65 per cent. Local partners: Selangor
state agency (PKNS), 21 per cent, and Li & Fung Holdings, 14 per cent. Outlets: 8. Carrefour Foreign
group: Carrefour (France), 70 per cent. Local partner: Datuk
Ishak Ismail, 30 per cent. Outlets: 6. Tesco Stores Foreign group: Tesco Plc (British), 70 per cent. Local
partner: Sime Darby, 30 per cent. Outlets: Planning 15.
Document stimes0020010715dx66009hb

Heed appeals for greater openness.
By Chua Lee Hoong.
1,058 words
6 June 2001
Straits Times
STIMES
English
Account to the elected President, account to us. When people urgethis, what are they really saying?
IN THIS space last week, I wrote about secrecy and the Government of Singapore
Investment Corporation (GIC), arguing that non-disclosure was a tactical choice, a way of maintaining
leverage over currency speculators who might otherwise play havoc with the Sing dollar. I also noted that
foreign observers seemed to have a penchant for probing the GIC in a way they did not towards the
investment arms of other governments, not
even the Kuwaiti or Bruneian ones which have similar reputations for secrecy. The number and, more
importantly, the nature of the responses I have received since then made me decide that a sequel was called
for. First, several readers suggested that comparing the GIC with the investment authorities of Kuwait and
Brunei was unfair, the latter being monarchies 'which are not expected to account to the people'. Yet, the
fallacy in that argument should be obvious: Kuwait and Brunei are not
absolute, but constitutional, monarchies. Distinction is made between state money and money belonging to
the royal family, and I am sure their governments are held as accountable by their people as the best in the
democratic republics. Only the mechanisms of accountability differ. Second, the South China Morning Post's
Singapore-based correspondent, Jake Lloyd-Smith, pointed out to me that when he asked about GIC's
secrecy, he meant his question to be in the context of a debate among Singaporeans. No personal agenda
on his part, he assures me. Third, there is the relationship between secrecy and accountability, which was
an issue raised by many. While a handful of them insisted that the two are directly related - secrecy means no
accountability - the majority were prepared to concede that secrecy could be justified under certain
circumstances, such as to protect Singapore's economic security. Where opinions differed was over the
extent to which GIC should open its books
to public scrutiny. I summarise some of their views here, in the hope that GIC
will take them into consideration should it decide on more disclosure. The most popular item on the public's
wish list: Some idea of how GIC fares in
investing the nation's reserves, such as an annual rate of return which can be
published with a time lag, say at the end of each year. 'Such information will be of little use to speculators and
a lot of encouragement to us,' said a reader. Other readers wanted more: They wanted that rate of return
broken down according to region, such as America, Europe, and Asia; and market, for example, equities,
bonds, property, or venture-capital. Even more demanding, some readers wanted the full list of the GIC's
holdings -
a stark contrast to one reader who simply wanted an annual valuation of the national reserves. The latter
said: 'Disclosure need not be made in full; even if GIC did, very few would appreciate its magnitude and
strategic implications... I would believe
that since GIC deals with the people's money, the people have the right to at least know the value of their
(Singapore's) reserves.' Will the GIC take up any of these suggestions? The dilemma it faces is probably that
once it starts supplying information, people will ask for more. For instance, once it publishes an annual rate of
return, some will ask how that rate is arrived at. What benchmarks does it use? What time frame? What
adjustments for risk? And so on. Reader Dharmo Soejanto summed it up well. Disclosure, he said, 'would
mean that GIC may have to answer a lot of questions that it doesn't have to now'. 'Is the Singapore
Government willing to pay the price of greater openness?' he
asked. It's a good question, and how the Government answers it will say a lot about the kind of democracy it
holds in mind as applicable here - a model which I suspect differs from that in the minds of Singaporeans who
want a democracy with more direct accountability. Take, for instance, the frequent suggestions to give the
elected President more authority over the GIC. The reasoning seems to be that because the President is
elected directly by the people, he will somehow be more accountable to them, compared to the legislature in
a system dominated by one party. It's a reasoning which rejects implicitly the argument put forth by Deputy
Prime Minister Lee Hsien Loong in April, in defence of the GIC: 'The accounts of the GIC are checked by the
Accountant-General, Auditor-General and examined by the Council of Presidential Advisers. There's total
accountability.' Singapore did not operate a direct democracy in the fashion of ancient Greece,
he had said. 'We operate a representative democracy in which the people elect the government... and, here,
the government has decided that as a matter of policy, the reserves are a matter which are best not published
and discussed every
year.' In the jargon of political theory, BG Lee's version of representative democracy is that in which a
representative is elected to decide according to his own judgment and conscience - instead of to merely
mirror and record the views of his constituents. That difference raises a question whose time has come in
Singapore: What is the vote for? Is it to delegate authority to the winning party for it to decide policy on
behalf of citizens? Is it an investiture of trust in the winning candidate? Or is
it to choose a representative who will find out, and reflect the views of his or her constituents? It is an
important question, and one which the nation has to come to grips with sooner rather than later, given the
increasing frequency with which 'accountability' is rearing its head in public discourse. That notion surfaced in
demands to know more about the Government's liabilities in the Suzhou Industrial Park project. It cropped
up too in questions over loans to Indonesia. On the non-monetary front, the 'A' word leads the march in
appeals for greater
transparency in how laws, such as the Societies Act, are implemented. With the General Election on the
horizon, this is one issue it won't harm the Government to pay attention to.
Document stimes0020010715dx66009gw

In the US, it's right turn on red.
243 words
6 June 2001
Straits Times
STIMES
English
WHEN it comes to driving, the United States does almost everything differently
from Singapore. Right turn on red (RTOR), the equivalent of 'left turn on red' (LTOR) for drivers who drive on
the right side of the road, has been allowed in the US for more than 60 years now. First introduced in
California in 1937, the scheme was found to offer important economic benefits, particularly because shorter
waiting times meant lower fuel consumption. Efforts to expand the scheme to other states received a
lukewarm response. In the wake of the 1973 Opec oil embargo, it prompted the federal government to
introduce new legislation in 1975, effectively requiring each state to adopt RTOR schemes. A 1976 study
published by the US Federal Highway Administration concluded that
there were substantial reductions in delays, fuel consumption and vehicle emissions, without a significant
increase in road accidents. By Jan 1, 1980, all 50 states had adopted the scheme. Nearly 90 per cent of US
traffic junctions permit vehicles to turn right at least during part of the red-light signal for all approaches where
right turns are possible. Singapore has more than 1,000 junctions with traffic-light signals, but fewer than 50
where one can turn left on red. In the US, RTOR is allowed unless where prohibited, whereas in Singapore,
LTOR
is allowed only where there is a sign to say that it is permitted.
Document stimes0020010715dx66009gr

Lower cap set for bus and train fee hikes.
377 words
6 June 2001
Straits Times
STIMES
English
THE Public Transport Council (PTC) has cut the rate at which bus and train companies can raise their fares
from 2 per cent to 1.5 per cent. This is on top of the increase in the Consumer Price Index (CPI) it factors into
the 'CPI plus X' formula that is used to set the maximum overall fare hike operators are allowed each year.
The new cap takes effect this year and will apply till 2005. This year, the CPI had gone up by 1.3 per cent,
which means that the effective
cap for this year's allowed fare hike works out to 2.8 per cent. The three main public-transport operators,
Trans-Island Bus Services, Singapore Bus Services and Singapore MRT, say they will have to manage
costs and boost productivity even more to meet this stricter limit. Last year, the 'X-factor' was 2 per cent,
while CPI had gone up by 0.4 per cent, giving a maximum overall increase of 2.4 per cent. The council cited
cost factors and productivity trends in the transport industry, in justifying the change in the allowed rate of
fare increase. It noted that the latest round of fare hikes for feeder services will earn the
two bus operators a 1.3-per-cent increase in revenue, which is below the 2.8-per-cent limit for this year. Still,
the PTC promised to keep a close eye on their services, to see if they justify the fare hikes. This is one of the
roles the council plays, in addition to approving and regulating bus and train routes and fares. The statutory
board under the Ministry of Communications and Information Technology also handles the licensing of bus
services here. Headed by chairman Eric Gwee, the council was set up in 1987 and has 15 council members
who include high-level representatives from the Land Transport Authority, welfare organisations, schools as
well as those from the transport companies. Last year, the council had allowed Singapore MRT to raise train
fares by between five and 20 cents, and bus companies to raise their feeder-service fares by 10 cents for
adults, and five cents for children and students.
Document stimes0020010715dx66009go

NTUC, Case welcome fare decision.
By Philip Allen.
418 words
6 June 2001
Straits Times
STIMES
English
They are happy that the Public Transport Council has responded to commuters' concerns and has limited fare
increases to feeder buses
THE decision by the Public Transport Council (PTC) yesterday to limit bus-fare rises to feeder-bus services
and to freeze MRT, LRT and trunk-bus fares was broadly welcomed. NTUC director Yeo Guat Kwang was
pleased at the limited impact of the bus-fare increase. Mr Yeo, who is an MP for Cheng San GRC, said: 'What
a relief - no overall fare
increase! I am glad the PTC has taken into account public views. 'I am glad also that the feeder-fare increase
is offset for those who use it with trunk services. There will be no increase for them. 'But intra-town travelling
costs will go up. Can the bus companies work harder
to keep the cost down?' Mr Yeo had called on Friday for a freeze on student fares and for increases in
feeder-bus fares to be offset against fares for connecting trunk services. Consumers Association of
Singapore president Teo Ho Pin said: 'We are very happy to learn that the PTC responded positively to our
concerns. 'We had asked the PTC to consider not to raise fares in the light of the economic situation and
workers facing retrenchment and wage restraints. This is good
news for commuters.' A spokesman for the Ministry of Communications and Information Technology said:
'We note that the PTC has moderated the impact of the fare increase on commuters in view of slower
economic growth. 'The PTC has a difficult decision to balance the need for operators to remain financially
viable and to safeguard the interests of commuters. 'Hence, given the current economic outlook, its decision
to turn down the operators' main fare proposals, while proceeding to rectify the feeder-fare structure to bring it
in line with the trunk-fare structure, is understandable.' PTC chairman Eric Gwee said the increase in
feeder-bus fares to the minimum trunk-fare level was to stop cross-subsidies, where passengers on one route
pay more to allow lower fares elsewhere. Asked if this meant that concession fares might one day be
scrapped, Mr Gwee said: 'I would like to think that one day they will, but that might be a long way away yet.'
He added that it might be left to the operator, or concessions could be structured differently, perhaps as a
percentage of the fare rather than a fixed discount.
Document stimes0020010715dx66009gk

Staff woes bedevil Thai Airways - analysts.
By Edward Tang.
501 words
6 June 2001
Straits Times
STIMES
English
Outbursts against SIA reflect the frustration of executives, demoralisedb y its recent scandals and losses
BANGKOK - Recent outbursts against Singapore Airlines (SIA) by senior executives of Thai Airways
International is a reflection of the deep-seated frustration
among the top management of the loss-making Thai carrier, analysts here said. The airline, which is
93-per-cent state-owned, reported a sharp plunge in profit recently and has delayed its privatisation plan. It
was also rocked by scandals concerning abuse of privileges, political interference and in-fighting among
senior staff. But the hardest knock must have been Prime Minister Thaksin Shinawatra's recent remark about
sub-standard service. On May 25, the Bangkok Post also quoted Thai Airways executive committee chairman
Sunthorn Pokachaipat questioning the Star Alliance's decision to admit SIA into the 15-member network. Last
week, airline president Bhisit Kuslasayanon claimed that Thai Airways had
lost half its passenger sales on the Europe-Australia sector since SIA joined the alliance last December.
Bangkok, he said, was the only transit point between the two continents until SIA joined the 15-member
alliance. Star Alliance is the largest airline network and includes big names like Lufthansa, United Airlines and
All Nippon Airways. The comments by the two senior Thai Airways executives came after the airline turned in
a poor first-half performance, attributed to high fuel costs and foreign exchange losses. Thai Airways
announced a loss of 935 million baht (S$36 million) for the six months of the fiscal year ending March - a
109-per-cent drop over the same period in the previous fiscal year. In March, it postponed an international
roadshow to raise funds due to unfavourable market conditions. A plan to privatise 23 per cent of the
government's 93-per-cent holding has also been delayed indefinitely. The airline is also hit by multiple delays
in the completion of Nong Ngu Hao International Airport. Thai Airways is also bogged down by foreign loans
and appears to have a serious productivity problem. Mr Supasit Chumpol, a director, has pointed out that
Thai Airways employs 24,000 people for its fleet of 80 aircraft while SIA operates 92 planes with 13,000
people. Some Australia-bound tourists from Europe have also switched to SIA because of
better in-flight entertainment and services, prompting sharp reactions from Thai Airways executives, who
claimed that SIA has captured more than 50 per cent of its passengers on that sector. But a Bangkok-based
aviation expert said the figure is incorrect. Thai Airways is losing mainly passenger transfers - and that figure
is no more than 3 per cent, he said. He also pointed out that there were other 'strong non-Star Alliance
competitors' plying that route. Thai Airways public relations director Sunathee Isvarphonchai downplays the
rivalry, describing it as 'fair competition'. 'We just have to look at ourselves and try to improve, like upgrading
our seats and in-flight entertainment,' she said.
Document stimes0020010715dx66009gf

Feeder fares up 10 cents.
By Leslie Koh.
436 words
6 June 2001
Straits Times
STIMES
English
Transport council rejects proposals for all-round increases, but corrects 'pricing anomaly' in feeder fares
PROPOSALS by bus and rail companies for an across-the-board fare hike have been turned down by the
Public Transport Council, which cited the slowing economy in Singapore as a reason for its decision. But it
did give the green light for adult fares on feeder services to rise by 10 cents. Come next month, trips on
feeder buses will cost between 55 and 70 cents. But passengers who subsequently hop onto the MRT or
trunk services will get a larger transfer rebate - 25 cents instead of the present 15 cents - on their farecards,
to offset the fare hike. The PTC approved these fare hikes as part of its efforts to bring feeder bus fares in line
with the minimum fare on trunk services, it said. The latest price hike will hit an estimated 140,000
passengers, or 6.4 per cent of the total 4.4 million trips that commuters make on the buses and MRT trains
each day. Ending over a week of speculation about the applications made by public-transport operators here
to raise fares, council chairman Eric Gwee announced the news yesterday at the PTC headquarters at the
World Trade Centre. While the council had accepted the reasons cited for the proposed fare hikes - increased
operating costs - it had turned them down in view of the current economic downturn. The one exception it
made in allowing feeder fares to go up, however, was in line with its aim to rectify the 'pricing anomaly' in
these fares, said Mr Gwee.
He added: 'Feeder services utilise the same level of resources. If feeder fares are lower, there is no incentive
for operators to provide better networks and
services.' The PTC last approved all-round fare hikes in June last year. Mr Gwee stressed that the
15-member council had balanced public interest against operators' need to stay financially viable in its latest
move. Proposals by Singapore MRT, Trans-Island Bus Services and Singapore Bus Services had sparked
off protests by many, who said the present downturn made it the worst time to raise fares. Responding, Mr
Gwee said the aim was to allow fares to go up regularly but in small steps, and added: 'If we don't increase
fares this time, the next increase will be a bigger jump.' Yesterday's announcement was welcomed by the
National Trades Union Congress and the Consumers Association of Singapore, both of which said that the
new fares would not affect most passengers.
Document stimes0020010715dx66009g9

BMW's hydrogen-fuelled cars may debut in S'pore.
By Kannan Chandran.
582 words
6 June 2001
STBT
English
(TOKYO) Singaporeans will get a taste of rocket fuel cars as early as next year - if a BMW initiative gets the
blessing of the authorities. According to top executives at a BMW event here, the German company sees
Singapore as an ideal setting for a 'live' trial of its fleet of cars that are powered by hydrogen - one of the
fuels used to propel rockets into space. Unlike the hydrogen-based fuel cell electric cars pursued by other
manufacturers, BMW's H-cars use the lighter-than-air element as an alternative fuel. As in
rockets, the hydrogen goes through a combustion process. Fuel cells on the oth er hand generate electricity
via a reactive process involving hydrogen and oxyg en. On a roadshow here last week to present its
hydrogen cars, BMW vice-president for clean energy Anton Reisinger said his company would be talking to
the Singa pore authorities to have these cars run in the city. 'Singapore is a good country to pilot the
hydrogen-powered BMW cars, and we ar e seriously looking at the possibility of building a common project,'
he said. 'The Singapore authorities are interested, and BMW will be having meetings in t he coming months
with them to look into this matter.' If approved, BMW will be the second to take part in a new initiative by the
Si ngapore government to promote new energy technologies. The scheme kicked off la st week when the
Economic Development Board and DaimlerChrysler teamed up to te st fuel cell technology in the Republic.
For more than two decades, BMW has been pushing its hydrogen-powered internal combustion engines.
While hydrogen-combustion engines may be less energy-effici ent than fuel cell motors, BMW has been
positioning its hydrogen cars as a ronm ent means of protecting the enviwithout sacrificing driving pleasure. 'If
petrol and diesel have to be replaced, this replacement should be sought i n an alternative fuel instead of
taking the roundabout route of a completely di fferent form of propulsion, as many of our competitors are
doing,' said directo r of development Burkhard Goschel. Mr Reisinger said: 'The fuel cell is a highly complex
system and requires plat inum to work. It is hard to make a profit. With the hydrogen combustion engine,
it costs 100 Deutschemarks (S$78) for 1kW of output. The fuel cell is aiming t o produce 1kW of energy at a
cost of 1,000 Deutschemarks.' BMW's main reason for steering away from the electric car was the desire to
pr es ent a car that is not a marked departure from what motorists have come to ex pect of their cars'
performance and behaviour. 'We want to show you that sporti ness and pure driving pleasure on the one
hand, and responsibility for the envi ronment on the other hand are by no means irreconcilable opposites,' Dr
Goschel
said. Some of the hydrogen-powered fleet of 15 BMW 750hL cars, which are similar to the current 7-series
long-wheelbase models, were on show here. They are part of
BMW's one billion marks hydrogen vehicle project, which is still subject to of ficial support and acceptance by
worldwide governments. 'If the hydrogen combustion car fails, it would be the end of a dream, and the
loss of time and money. But we don't think this will happen,' Mr Reisinger sai d.
Document stbt000020010716dx66003po

Astra likely to renegotiate debt-repayment terms.
By Christopher Tan.
460 words
6 June 2001
STBT
English
At US$695m and 819 billion rupiah, this forms the bulk of Astra's restructu red debt of US$1.05b and 1.1
trillion rupiah
ASTRA International, the Indonesian conglomerate in which Cycle & Carriage Ltd
(CCL) has a 30 per cent stake, is likely to renegotiate terms for a debt repayment due at the end of next year.
At US$695 million and 819 billion rupiah (S$129.4 million), this second tranch e loan forms the bulk of Astra's
restructured debt of US$1.05 billion and 1.1 t rillion rupiah. The first principal repayment of close to US$200
million is due
end-2002. Astra director Kour Nam Tiang, CCL's proxy in Jakarta, said the group could resort to another debt
restructure 'in a worst-case scenario' but added that it had not approached its lenders - a consortium of
mainly Japanese banks - yet. 'There's no panic at the moment,' he told BT yesterday. 'Indonesia is still in
transition and things can recover very quickly. But right now, we just have to
put on our safety-belt and ride things through.' Astra has already repaid the first tranche of US$200 million
and 199 billion r upiah and is expected to have no problem meeting the final portion due in June 2006. BT
understands the group is unlikely to raise funds through a rights issu e or any other avenue at the moment - a
course president-director Teddy Rachmat
had considered earlier. The group, with interests as diverse as timber, palm oil, tractors and telecom
munications, has also ruled out asset disposal as a means of raising cash. Agai n, this was highlighted as a
probable action when CCL bought into the company l ast year. The reason for this change of heart is that
Astra would be getting a pittance if it sold any of its businesses right now, with the political and economic
woe s Indonesia is embroiled in. This is reflected starkly in the rupiah, which has
depreciated by more than 30 per cent to the US dollar since March 2000 - when CCL made a successful bid
for Astra in a Singapore government-led consortium. Astra's share price has also fallen since (from about
3,700 rupiah when CCL ca me in to around 1,500 rupiah now), technically halving CCL's $660 million inves
tment value. In these circumstances, Astra may have no choice but to re-negotiate terms for
repayment of the second tranche loan. This aside, Mr Kour said Astra would sti ll divest non-core businesses
'when the time is right'. 'That has not changed, that has been our policy from day one,' he said.
Document stbt000020010716dx66003pm

Wee Poh bags $23.4m contract.
Compiled by Christopher Tan.
595 words
6 June 2001
STBT
English
WEE POH Construction Co has landed a $23.4 million contract to build the Tampi nes Expressway/Sengkang
East Road Interchange and the TPE/Sengkang Drive Flyover. When completed by third-quarter 2003, the
new roads will improve access to Sengkang and Punggol new towns. The project will include the widening of
TPE fro m dual three lanes to four lanes between the existing Punggol Road Interchange and the proposed
TPE/Sengkang East Road Interchange.
Sneak preview for BMW 7-series
BMW recently conducted a show-and-tell programme on the new 7-series limo in P huket for dealers in the
region. Sources said the new car is a marked departure
in design from the current flagship. It has more curves and is noticeably bigg er, which should go down well
with Asian buyers. Although a static event, guest s were shown the car's technological wizardry. The new
7-series will be officia lly launched at the Frankfurt Motor Show in September and could hit the roads h ere by
early 2002."
Goethe gets 750,000 euros from Daimler DAIMLERCHRYSLER has pledged 750,000 euros (S$1.1 million) to
the Goethe Institute in support of the institute's activities in Asia up to 2003. Nine Goethe In stitutes in the
region, including that in Singapore, will each receive 60,000 e uros during the three-year period, while 14
others will get 15,000 euros. The Goethe Institute is a cultural organisation working on behalf of the German
gove rnment. It operates in 76 countries and has 3,500 employees."
DaimlerChrysler sets car safety goal
A PROGRAMME to reduce car accidents by at least 50 per cent in the next 15 years. That's
DaimlerChrysler's "Accident-Free Driving" research plan highlighte d at the recent Global Conference on
Transportation and Technological Advanceme nts here. The German manufacturer is working towards this
objective with its advanced telematics technology. Telematics is a new science that explores the use
of "live" traffic information and a vehicle's sensors and computers to make motoring friendlier, safer and more
efficient. At the conference, DaimlerChrysler also announced its decision to use Singapore as a South-east
Asian e-commerce centre. A first project here is the Car Configurator, a dedicated website tha t allows
consumers "to design their very own personal cars on the Internet" a nd approach a dealer with their
configuration."
Ford widens Firestone recall to Europe
FORD MOTOR is widening its controversial recall of Firestone tyres to include models sold in Europe,
according to the Financial Times. The US group, which is
embroiled in a bitter war of words with Firestone over tyre safety, plans to r ecall about 23,000 vehicles in
Europe to fit new tyres the first time it has ac knowledged a potential problem in the region. Officials said the
European recal l will affect mainly Ford Explorers, the sport-utility vehicle cited in a wave of US lawsuits
following the deaths of at least 170 American motorists. Firestone, part of the Bridgestone group of Japan,
has alleged that faulty Exp lorer design contributed to many of the "rollover" accidents in the US. Last week,
the firm urged the National Highway Traffic Safety Administration to inve stigate the safety of Explorer. Ford
has rejected the allegations, blaming inst ead problems with "tread separation" on Firestone ATX and
Wilderness AT tyres. Over 60 per cent of all Explorers sold in Europe in the past 10 years are due
to be recalled.
Document stbt000020010716dx66003pl

Patently in love.
1,017 words
6 June 2001
STBT
English
Ella Cheong - a pioneer in intellectual property law - shares with CORINNE KERK her passion for IP work
SHE is one of the pioneers of intellectual property (IP) law in Hong Kong and Singapore, and a familiar name
among international IP lawyers. She speaks fast and animatedly, and you can't help noticing her glowing skin
though she is turning 60 this year. Hongkonger Ella Cheong has blazed her way from the days when the term
IP didn't even exist (law firms simply chucked such work under 'miscel laneous') to what it is today - a
buzzword. Now the chairman of the board of Ella Cheong Mirandah & Sprusons - a Singa pore-based
specialist IP services company - Ms Cheong has over 30 years of IP p ractice under her belt and is a solicitor
in Hong Kong, the UK and Australia. Concurrently a consultant at Wilkinson & Grist (W&G) - one of Hong
Kong's oldest and best-known law firms - Ms Cheong is also heavily involved in int ernational IP
organisations, being chairman of the group of independent members
in one of them (AIPPI), and the first Asian to be sitting on the council of an other (FICPI). Previously, she has
served on the board of directors of the Inte rnational Trademark Association (INTA) and was president of the
Hong Kong group
of the Asian Patent Attorneys Association. While her accomplishments are impre ssive, Ms Cheong's reason
for going into legal practice is a lot less inspiring. The fourth child in a family of seven children, her three elder
sisters were a ll degree holders who got married almost immediately after graduation. It was a
trend her civil servant father was getting tired of. So her father gave her th ree options - study medicine, do a
secretarial course or a five-year law articl e (apprenticeship). She chose the third option and spent three
years in Hong Ko ng and two years in England. Having gained her qualifications, she returned hom e and
joined W&G as a 22-year-old. 'They didn't have anyone to deal with the tiny amount of trademark work
they h ad then, so being junior, I did it together with probate and divorce cases... b asically, all the rubbish,'
she recalls with a laugh. Then came a major patent infringement case referred to her firm by a big City firm in
London. Being 'sup posedly in-charge' of trademark matters, she handled the case, which was won in
Hong Kong, and again on appeal in the territory. To reward her, W&G sent her to a conference, which
was the forerunner to I NTA. There, she got to know people, received more IP work and found herself ret
urning to the conference every few years to network and build the business. 'And that's how I established the
IP department in the early 70s,' she says. S he rose up the ranks in W&G to become its first Chinese
and first woman sen ior partner in 1988, a post she held until March this year, when she 'retired' and became
its consultant. 'The firm has about 40 lawyers and a total staff of 170,' she says. 'It's around 10th or 11th in
terms of size in Hong Kong, but in
terms of its IP department, I always claim it's number one!' Her claim is not without some basis, as the
department has been rated number o ne in international surveys for both Hong Kong and China. And
interestingly, th e 60-strong IP department with 14 lawyers had only female staff for most of its
history. Hence, a joke that W&G stood for Women & Girls. 'Women are mo re dedicated and
committed and pay greater attention to details, which is very important for the type of work we're doing,' Ms
Cheong explains. In 1985, Singapore's attorney-general invited her to set up practice here. Tha t was when
she formed Ella Cheong & G Mirandah - a boutique legal IP firm -
in 1986. Publicly, her road to success seems relatively smooth. But privately,
she has had to cope with a history of poor health, as well as the death of her
husband. Her late husband - a litigation lawyer - suffered from heart problems and diab etes for 10 years
before dying of a heart attack 16 years ago. Meanwhile, Ms Cheong endured chronic asthma, bronchitis as
well as scoliosis - a curvature of t he spine. On top of that, she was diagnosed with breast cancer two years
ago. F ortunately, her treatment was successful and she now goes only for monthly chec k-ups. On a good
day, she takes three types of medication every evening to treat her asthmatic condition. 'And on a bad day,
it's four times a day,' she says. 'The steroids I take have also caused me to break the bones in my arm and
legs...I suffer badly from osteoporosis.' All this time, she had to cope with her career and four children - now
aged 29, 31, 33 and 35. Recalling those early years of IP practice, Ms Cheong admits it was very tough trying
to establish herself. 'Now, a lot of IP lawyers are women, but not then,' she points out. 'I've alwa ys said to my
daughters that to get to the top as a woman is very difficult, bu t to stay on top is even harder. Everyone
wants to knock you off.' Having succe eded in her career, and with her poor health, Ms Cheong could very
well choose to retire. But instead, she is amused at the idea. 'My kids will say, 'Mom, ret iring? No way, you'll
nag us to death!',' she laughs. For a woman who loves her
work, her philosophy of life is simple. 'It is to be very interested in everyt hing that you do and see. To have
passion in your life. The only passion I lack
is a man... nobody wants me!'.
Document stbt000020010716dx66003pk

Euro still fragile, regionals enjoy indirect reprieve.
614 words
6 June 2001
STBT
English
THE attention of financial markets remained focused on the fragile euro during
the past week, while an assurance from Federal Reserve chief Alan Greenspan th at US inflation is not a
problem helped boost the US bond market and reverse mo st of the week's losses on Wall Street. Our gut
feeling is that while the euro may have a little way to fall yet, the upward lift it has recently given to the yen -
via Japanese investors dumping t he euro for their home currency as it nosedived - may be running out of
steam. So while the euro fell to a marginal six-month low of 84.2 US cents yesterday,
it managed to hang its hat well north of key 100 yen support - thanks in part to the US dollar's ability to
recover from at least four forays below 119 yen d uring the past fortnight or so. Closer to home, untidy
changes in the Indonesian Cabinet were counter-balanced
by modest optimism that there will soon be a leadership change, leaving the ru piah to languish quite unloved
above 11,000 per US dollar. And yesterday the US dollar finally fell sharply below a two-month old support
zone at around 45.20 Thai baht - in anticipation of a stronger baht and higher
domestic interbank interest rates promised by new Bank of Thailand governor Pr idiyathorn Devakula. Our
take on likely price action is as follows. In each of the past four tradin g sessions, players have tried to force
the euro below the 84.40-84.60 US cent support area we've identified as crucial. If it can survive this
onslaught of selling we may see a corrective spike back
above 85 US cents - but if this is surrendered, the next target will be last y ear's 82.25 US cent all-time low.
The euro's fortunes will be heavily influenced by its ability to stay on the r ight side of 100 yen. Near-term,
we've been told by our contacts that there was a maturity of a big euro-yen option yesterday. With that out of
the way, watch how well the US doll ar holds up above equally important 118.40 to 118.60 yen support. From
a more fundamental perspective, the arguments for an eventual greenback m ove back above near-term
resistance at 120.30 yen are persuasive. 118.40 yen su pport for the US dollar should therefore be a much
tougher nut to crack, we rec kon. Recent macro-numbers out of Japan point to an imminent relapse into
recession for the Japanese economy - and the country's benchmark Nikkei 225 Stock Index a ppears to
have been particularly damaged by such fears. Consider this: during the past four weeks, major Wall Street
stock indices hav e recovered between 1.5 and 3.6 per cent. But over the same time frame, the Nik kei has
fallen 6.2 per cent. For the Singapore dollar, the implication is that those who need US dollars ma y not get
them cheaper than S$1.80 in the near term. Not only because we're doubtful about a powerful yen rally from
current levels, but also because we anticipate further US dollar support between S$1.7950 and
S$1.7970. Against the Thai baht, yesterday's sharp downmove for the US dollar is what ch artists would
describe as a triangle breakout at 45.2 baht support - one that s ignals a possible foray below 45 baht, and a
minimum objective of 44.70 baht if
the break can be sustained.
Document stbt000020010716dx66003pi

Asia Pacific's changing economic landscape.
By Yang Razali Kassim.
1,442 words
6 June 2001
STBT
English
Free trade trend gathers pace; FTAs attract Asian trading giants China and Japan
THE economic landscape of the Asia Pacific region is changing. The region's ma jor economic powers are
quietly engaged in a new ball game of trading alliances. The US, Japan and China are all wooing, or
responding to, shifting partnership s. Asean, despite its current slowdown, is a key player. In turn, Singapore
is playing the role of a catalyst within the Asean group. China and Japan have both warmed up to the idea of
a free trade area (FTA) wit h Asean. After years of eschewing regionalism, Japan started talking about a fr ee
trade arrangement with Singapore. Even sectors sensitive to Japan, like agri culture, have been put on the
table, a top Singapore trade official says. But it was China which first expressed interest in forging a free
trade area w ith Asean as a whole. As if playing catch-up, the Japanese are also now talking
to the South-east Asian grouping on a possible Japan-Asean free trade area. Th is is being pursued in
parallel with Tokyo's current talks with Singapore for a
bilateral FTA, due to be wrapped up by year-end. At the moment, China's free trade area talks with Asean are
at the level of ex pert study groups. The Asean-China group has met once in China. Key recommendat ions
on the viability of a free trade area with China are being readied, Heng S wee Keat, CEO of the Trade
Development Board (TDB), told BT in an interview. Th e plan is to table these at this year's 'Asean Plus 3'
summit - the de facto su mmit of East Asian leaders, says Mr Heng, who is also deputy secretary (trade) of
the Ministry of Trade and Industry (MTI). Japan and China's decision to consider free trade with Asean is the
most signi ficant development this year. If the trend goes on, a huge East Asian free-trad ing group could
emerge. This would link South-east and North-east Asia for the first time as one unified East Asian economic
community. It is a goal that Asea n and East Asian leaders have been quietly laying the foundations for,
despite initial opposition from the US. The question is whether such an East Asian free trade area - or an
expanded As ean FTA - will also include Australia and New Zealand. The two countries are ju st as eager to
link up with Asean to gain access to a wider market. Analysts say the Japanese want an FTA with Asean to
compete better with an eme rging China. Indeed, according to Kyodo, quoting Japanese government sources
recently, an F TA with Asean would also help both to compete not only with China but also with
regional trading blocs in Europe and the Americas. Beijing, on its part, sees a free trade area with Asean as a
bargaining chip t o get into the World Trade Organization (WTO). 'It's a very good way of signall ing that
'okay, if other countries block my entry, I will pursue a regional rou te' ... So it strengthens their card quite a
lot,' according to one economic consultant to the government who prefers not to be named. But given the
competitive nature of the economic relationship between Japan an d China, the race to link up with Asean in
free trade could work in Asean's fav our, adds the economic consultant. 'China would need to concede more
to get Ase an's support and cooperation.' But in this Asean trade tango with the trading majors, the US is
strangely out
of step and lagging behind. Under President George W Bush, Washington is torn between its enchantment
with the Americas and its desire to have a toehold in t he lucrative Asia Pacific trade. With the just-announced
Free Trade Area of the Americas (FTAA), will Washingto n have more time for Asia? Fortunately for Asean,
the signal from the Americans
is that they will not want to lose out in East Asia. Singapore officials note that recent statements by Mr Bush
and his top trade representative, Robert Zoel lick, suggest the US remains economically interested in East
Asia. Giving Washington a leg-up in the region is, of course, Singapore's push for a
bilateral FTA with the US, for which the third round of talks were held in Sin gapore last month. 'It would be
interesting to see if the FTAA reduces the mome ntum of the US-Singapore FTA. However, in view of US
strategic interest in East
Asia, it might not,' says the economic consultant. Officials and analysts BT spoke to say the spate of bilateral
FTAs Singapore h as been pushing with the US, Japan, Australia, New Zealand, Mexico, Canada and Efta

(the European Free Trade Association), is part of a new global trend. Last year, 17 Asia Pacific economies
were involved in bilateral FTA talks of o ne form or another. 'Most of the industrialised world has been
hedging their be ts with bilateral FTAs,' says Woo Yuen Pau, senior economist and vice-president
of the Asia Pacific Foundation of Canada. Within Asean, Thailand and the Philippines have now joined the
bandwagon, show ing an inclination for bilateral FTAs as well. The main detractor is Malaysia, which has
expressed concern about a possible 'back-door entry' for non-Asean go ods into the Asean Free Trade Area
(Afta). But even Kuala Lumpur has of late sh own a softening of its stand. The flurry of moves for free trade
groupings are motivated by a common fear: o f losing out should the World Trade Organization (WTO)
collapse. The trend in bilateral FTAs, however, also suggests some dissatisfaction with the progress of
existing regional blocs. In Asia, two of the major trading grou ps - Asean and the Asia Pacific Economic
Cooperation forum (Apec) - are bogged down to varying degrees. Asean has not fully succeeded in
recovering its former
allure although the regional financial crisis of 1997 has blown over. Individu ally, its key members are still
grappling with domestic aftershocks, economical ly and politically. In the meantime, North-east Asia (NEA)
has taken over as the main growth centr e in the Pacific Rim. It's not just China sucking up the bulk of
investments th at used to flood Asean. Friedrich Wu, writing in the journal, World Economics, says the NEA
region will outperform Asean in real GDP growth by 2.2 and 1.4 per centage points in 2000 and 2001
respectively. And if Singapore is excluded, the
growth differentials are expected to widen even further to 3.2 and 1.6 percent age points respectively. The
trend means Asean could soon be displaced as a pivotal player in Apec. Ape c started off well as a powerful
vehicle to carve out a huge free trade area li nking Asean, Japan, China, Australia and the US, among others.
But the Apec lus tre seems to be fading. 'Apec now is little more than an exhausted sub-committee of the
WTO,' said the
Vancouver-based Mr Woo in an e-mail to BT. This year's Apec summit in Shanghai will therefore be crucial in
bringing back
the shine to the forum. BT understands that Singapore and its various counterp arts involved in bilateral FTA
talks are all aiming to wrap up their negotiatio ns in time for the Shanghai summit at year-end. If this happens,
the Shanghai s ummit could become a major platform to revive the flagging interest in the foru m, anchor US
economic interests in Asia - and even prop up the WTO. In 1993, the first Apec summit in Seattle pressured
Europe into coming to a gl obal deal on trade, leading to the birth of the WTO. Analysts like the Asia Pac ific
Foundation's Mr Woo think Apec should become the 'OECD of the Pacific Rim'
to revive the free trade agenda in the Asia Pacific. 'The fact that most Apec members are having FTA
flirtations amongst themselves
and with non-members does not help. Apec should move to becoming more of an OE CD of the Pacific Rim,'
he says. Whatever the merits, one thing is clear. 'All these changes that are going on around the rest of the
world - the FTAA, China drawing in a huge amount of FDI (foreign direct investment) - will change the
economic landscape quite dramatic ally,' says Mr Heng, the TDB chief. The writer is BT's regional analysis
editor .
Document stbt000020010716dx66003pg

China Club Singapore attracts 600 members in three weeks.
By Vince Chong.
344 words
6 June 2001
STBT
English
CHINA Club Singapore - the third in the 'series' after Beijing and Hong Kong -
has officially opened, and 600 members have signed up in three weeks. Club founder David Tang said he
hopes to bring his exclusive town club brand to cities such as Tokyo, Kuala Lumpur and Bangkok within the
next few years. The Singapore members are mostly from the financial sector. China Club Singapore is the
least expensive of the three establishments, with 550 members paying a special one-off membership fee of
$8,888 while the remaining 50 members paid the usual $15,000 fee. One-off membership fees for the Beijing
and Hong Kong town clubs are set at US $15,000 and US$20,000 respectively. The monthly subscription for
the Singapore club is $128. At least 400 overseas
members are also expected to join by the end of the year. The 12,000 sq ft club, which opened on May 19, is
at the top of Capital Tower,
and according to Mr Tang, one does not have to be in any exclusive profession to be a member. 'As long as
you are sure you want to come and your cheque doesn 't bounce, you can be a member,' he said. The cost of
setting up China Club Singapore came to $3 million and Mr Tang expects an annual turnover of $4-$6
million. Property giant CapitaLand owns 40 per cent of the establishment and, according
to company president Liew Mun Leong, they may be involved in future China Club
projects overseas. He stressed however, that CapitaLand is not diversifying into the club busines s. The
'labour of love', as founder Mr Tang describes the club, offers an eclecti c mix of typical Cantonese cuisine as
well as certain Western dishes. The period Chinese decor also features recent motifs inspired by Mao
Zedong. The club has a main dining hall which can seat 240 diners, a lounge, and up to
12 private rooms catering to functions and meetings.
Document stbt000020010716dx66003p5

Science Hub development to get a big hand.
By Melissa Sim.
301 words
6 June 2001
STBT
English
THE Science Hub - Singapore's self-contained focal point for research and development - will receive input
and direction from high-powered members of the Steering Committee and Resource and Advisory Panel
(RAP). The project will be under the overall supervision of the Steering Committee, which is chaired by Acting
Environment Minister and Minister of State for Communications and IT, Lim Swee Say. The committee,
whose members include Economic De velopment Board (EDB) co-chairman Philip Yeo, EDB chairman Teo
Ming Kian and Tr ade and Industry Ministry's Permanent Secretary Khaw Boon Wan to name a few, wi ll also
facilitate inter-agency co-operation in the development of the Science Hub. Heading the Resource and
Advisory Panel is Dr Tan Chin Nam, Permanent Secretar y of Ministry of Manpower. His team comprises
prominent international and local
architects and private sector individuals such as RSP Architects director Liu Thai Ker, and Jones Lang
LaSalle national director Steven Choo who will provide
advice and bring new perspectives to the project. Lim Neo Chian, JTC's chairman, said: 'We hope the
Science Hub will be interest ingly different. With the consultants on board, planning and development can no
w proceed at full steam.' JTC was appointed in September last year as the maste r developer of the project.
Also appointed were the master plan consultant Zaha Hadid Ltd from London and transport consultant MVA
Asia Ltd. The two companies were chosen to participate in this project from a total of 20 international and
local consultants for the master plan and another 12 companies for the Advanced People Mover System
(APMS). The final master plan and the Science Hub's corporate identity are expected to
be revealed towards the end of this year.

Lawyers give up licences for IP joint venture.
By Conrad Raj.
411 words
6 June 2001
STBT
English
RATHER than wait for the laws to be changed to allow for multi-disciplinary practices, lawyers Ella Cheong
and Gladys Mirandah have decided to give up their law licences to form a joint venture with one of Australia's
oldest and leading
patent and trademark law firm, Spruson & Ferguson. Formed just two months ago,
the new Singapore-based joint venture, Ella Cheong Mirandah & Spruson Pte Ltd (ECMS) already boasts
overseas offices in Malaysia and India and a staff of 140, including 96 in Singapore. The firm offers a range
of services in the intellectual property field covering such areas as biotechnology, electronics, telecom
munications, software, pharmaceuticals, and medical devices. Ms Cheong, a Hongkonger with permanent
resident status here, and regarded as one of Asia's top IP lawyers, teamed up with Ms Mirandah, another IP
and tradema rks specialist, in 1986 to form the boutique law firm of Ella Cheong & G Mirand ah (ECGM),
which continues to run as a legal practice without its founding memb ers. While other sectors of the economy
are either in the doldrums or are on the de cline, 'the intellectual property field offers tremendous
opportunities', remar ked ECMS director Robert Miller, an electrical engineer with a law degree. Ms M irandah
estimates the market for IP and trademark services in Singapore at more
than $60 million. 'The catalyst (for the formation of the JV) was requests from our clients (ECG M's) to extend
our IP services to other parts of Asia and approaches by several
well-established IP practices from the United States, Germany and the United K ingdom to form an alliance,'
Ms Cheong said. She also pointed out that 'to main tain the conditions required for Asian innovation and the
wealth of opportuniti es this brings, adequate IP protection is essential'. Mr Miller notes that ECMS has one of
the widest range of specialists in an IP firm in Singapore, with experts in biotechnology, engineering,
pharmacology and
IT, many of them with PhDs. The team comprises technical professionals from no t only Singapore but also
Australia, India, South Korea, Malaysia and UK. While
Australia has recognised patent lawyers as a separate profession for many year s now, Singapore will only
be admitting its first batch of about 30 students fo r the Graduate Certificate in Intellectual Property next
month. ECMS is sponsor ing four students for the qualification.

LUV-ly advice.
278 words
6 June 2001
STBT
English
IT'S by now common news that advisers at the Government of Singapore Investment Corp had offered
Senior Minister Lee Kuan Yew three scenarios on the prospects for the world economy. Some forecast a
protracted L-shaped economic recovery while others argued that a sharp V-shaped rebound will take place
by the second
half of this year. The majority went for a U-shaped recovery, the senior minister told delegates of a monetary
conference at a dinner here on Monday. Which led one wit to quip that Singapore's external financial
reserves are in good hands with such LUV-ly advisers.
Face value
SOME banks, it seems, have many faces. Two readers, miffed by their banks, said first they received mail
from their banks addressing them as Dear Valued Customer because the banks wanted to sell them a
product. Subsequently, one got a terse letter which set out the terms and penalties in relation to the
redemption
of a loan. Another got a reminder warning of harsh action if she didn't immediately pay a small amount that
was outstanding after she cancelled her credit card.
Of better stock
INDONESIA was among the world's top performing stock markets last month despit e the political
uncertainties in the country. According to markets index provid er FTSE, Indonesia was the second-best
performer after Columbia in US dollar te rms with a rise of 20 per cent. It took third place in local currency
terms. Th e top five markets in May in US dollar terms were Columbia, Indonesia, Russia, China and Mexico,
all with double-digit percentage gains, while world markets g enerally declined.

Can Sing $ bond market make it to the Big League?
By Angela Tan.
672 words
6 June 2001
STBT
English
THE fledgling Singapore dollar bond market has grown significantly over the pa st years largely due to efforts
by the Monetary Authority of Singapore (MAS). After the Asian crisis of 1997-98, the central bank has taken
steps to open th e financial market, taking extra care to spur liquidity in the debt market by o pening it to
international issuers and investors. According to DBS Economic Market Research, Singapore's bond
market, though tin y in absolute size, has grown to quite a respectable size. From 1998 to 2000, the total
bond size has risen a whopping 135 per cent from $40 billion to $94 billion, of which $50.5 billion were
corporate bonds. Not ba d for an effort that began only in August 1998. However, the Singapore bond market
remains small in size compared to other reg ional players. It has only 5 per cent of the total Asian bond
market, making it
the second smallest bond market next to Indonesia and a far cry from South Kor ea's which has a 30 per cent
share and Hong Kong which has 9 per cent. Potential growth: On a global basis, Singapore's share is 0.15
per cent compar ed to the US which leads the pack with a 47 per cent share. Looking forward, the potential
for further bond market growth in Asia is evide nt, with China, India and South Korea most likely to lead due
to their economic
size and hunger for funds. But where does that leave Singapore? Will the bond market here ever become big
enough to compete with the more developed markets? It certainly looks like an uphill battle for the MAS,
which will still face ma ny hurdles along the way. Despite the MAS' efforts to broaden the market, expand the
number of primary d ealers from eight to 11 in 2001 and mandating a regular calendar of Singapore G
overnment Securities issuance, Singapore still does not enjoy the economies of scale and size crucial for a
vibrant debt market. Singapore lacks funding needs from both the public and private sectors. This i s not
surprising given that public infrastructure projects are largely funded b y tax revenues and the fiscal surpluses
enjoyed by the government. Until recently, there was not even an actively traded Sing dollar government b
ond yield curve. Without a benchmark yield curve, the corporate bond market could not be develo p either. As
for the private sector, corporates have shown a bias towards bank borrowing s or securities-based funding as
they do not need to disclose too much informat ion to the public. It is also easier and cheaper to raise funds
through the equity market, which is much more developed than the debt market. Credit culture: So it is not a
surprise that the bond market's development in triple-A credit rated Singapore has been undermined by a
lack of a credit cultu re and a credit curve. But having said that, this is not to say Singapore will never be a
major debt market. On the contrary, a very driven MAS has made all the right moves forward. Apart from
cultivating a credit culture among issuers and investors, the MAS i s trying to nurture a liquid primary and
secondary market as well as foster a m ore liquid swap market. While it has resisted internationalising the
Sing dollar, it relaxed its polic y last December, paving the way for greater international participation in the
Sing dollar capital market. So while the Singapore bond market may be nascent, there are signs that auger
well for the sector. After all, last year was a great year for bond investors a s bonds generally outperformed
local equities. And according to OCBC Fixed Income Research, 2001 is also off to a promising s tart - Sing
dollar bond prices have risen significantly in the first quarter, b uoyed by lower interest rate expectations.

Sharp drop in SIA load factors.
By Conrad Raj.
285 words
6 June 2001
STBT
English
THE global economic downturn continues to clip the wings of Singapore Airlines
- though the latter is still flying profitably. The national carrier has reported a sharp decline in year-on-year
load factors
for April. The overall load factor fell 3.8 percentage points to 67.9 per cent - the lowe st level this year - as SIA
flew fewer passengers and carried less cargo. The passenger seat factor dipped 3.1 points to 73.2 per cent,
while declining electronics exports to the US led to a 4.8 point fall in the cargo load factor to 67.9 per cent.
The number of passengers carried slipped 1.8 percentage points to 1.21 million, while the amount of cargo
fell 6.9 points to 74.5 million kilos. This is the airline's third drop in overall load factors after a 0.5 point dec
line in February and a one point slip in March. SIA breaks even when it fills 66.7 per cent of its capacity,
which means that at current levels the airline is still operating in the black. But Reuters quoted Jardine
Fleming airline analyst Peter Negline as saying: 'W e haven't seen levels of decline like this year-on-year
since 1998' - when airl ines were feeling the effects of the Asian financial crisis. Mr Negline added: 'This very
much reflects the sluggish economy on a global ba sis and the impact of the strong (US) dollar affecting
outbound tourism from ma rkets such as Australia, Singapore and Japan.' SIA shares closed 10 cents up at
$12.90 yesterday, after rising as much as 2.3 per cent earlier.

Keppel Cap not in the running for HKCB Bank.
By Quak Hiang Whai.
436 words
6 June 2001
STBT
English
S'pore bank declines comment but sources say it's not a bidder despite pres s reports
KEPPEL Capital Holdings is not in the running for a major stake in Hong Kong-l isted HKCB Bank Holdings,
contrary to earlier press reports, sources told BT ye sterday. The Singapore bank yesterday declined to
comment on what it termed 'market spe culation', but reliable Hong Kong sources said the bank is not among
those nego tiating with the controlling shareholder for the stake. Lippo China Resources had earlier confirmed
it was in talks to sell its stake in the smallish bank. "The LCR group does have discussions with interested par
ties from time to time and is currently in preliminary discussions regarding po ssible merger and acquisition
opportunities involving the HKCB Bank Holding Co Ltd and/or its subsidiaries,' it said. Last week, another
shareholder of the bank, red chip China Resources Enterpris e Ltd, said it planned to divest its 35 per cent
stake in HKCB Bank and other n on-core businesses. Like other red chips, which are mainland controlled
Hong Kong conglomerates, C hina Resources is expected to get out of non-core businesses after several
high - profile corporate collapses among mainland enterprises in the last three years. HKCB Bank is 58.78
per cent held by Lippo CRE (Financial Services) Ltd, which is jointly held by Lippo China Resources and
China Resources Enterprise which i tself also owns a direct 5.84 per cent stake in the bank. Indonesia's Lippo
Gro up which is controlled by James Riady has a stake in Lippo China Resources. A report by the South
China Morning Post yesterday said HKCB had received four
bids which are believed to have come from Agricultural Bank of China, Keppel C apital, Fortis Bank and Citic
Ka Wah Bank. China Resources, it said, was holding out for a bid pitched at a premium of 1. 5 times present
value of each HKCB share of HK$2.92, putting the deal at some H K$3.84 billion (S$891.6 million). News of
more mergers and acquisitions among smallish Hong Kong banks picked up
steam after Quek Leng Chan's Guoco Group sold its major stake in Dao Heng Bank
for an attractive price-to-book value of above three times to Singapore's DBS Group. Several Singapore
banks, including United Overseas Bank and OCBC, have consist ently been rumoured to be looking at
several possible Hong Kong targets althoug h no deals have emerged so far.
Document stbt000020010716dx66003oz

US-China ties will blow hot and cold, says expert.
By Anna Teo.
782 words
6 June 2001
STBT
English
There'll be discord on geopolitical issues and harmony on economic issues
(SINGAPORE) US-China relations will likely warm on the economic front but 'wit h friction along the way' on
geopolitical issues, says the president and chief executive officer of The Conference Board, Richard
Cavanagh. Americans are trying to deal with an emerging superpower without incurring - a s with the former
Soviet Union - an attendant protracted Cold War, he said in a n interview yesterday. 'So you see what
appears to be a schizophrenia' in the American approach towar ds China, said Mr Cavanagh, who was
executive dean of the John F Kennedy School
of Government at Harvard before he joined The Conference Board in 1995. The board is a widely-cited
private source of economic and business intelligen ce. While ties between Washington and Beijing have
been strained lately due to var ious skirmishes on the political and military fronts, at the same time the US i s
keen to build economic relations, not least because of the amount of business
that Americans conduct with the Chinese, says Mr Cavanagh, in town on a brief visit. The Americans have
called for early World Trade Organization admission for Chi na, and just last week, President George Bush
sought in Congress to renew China 's normal trade status for another year. 'So you have discord on
geopolitical issues and harmony on economic issues,' s aid Mr Cavanagh, who held senior positions in the
White House Office of Managem ent & Budget in the late 1970s during the Carter administration. 'That's what
i t means to be the 'first superpower' and the 'second superpower',' he quipped. China is, in many respects,
already one, he added, 'in terms of its military p rowess; its influence on the region; by virtue of its population
and natural re sources; and it's quickly becoming an economic superpower, though it's not ther e yet'. Mr
Cavanagh - who addressed Singapore corporate members of The Conference Boar d at a closed-door
lunchtime session yesterday on, among other things, the new US administration and ramifications for Asia -
says President Bush's second 100
days in office will be tougher than his first. 'The first 100 days were better than anyone had expected, given
that he won by
the slimmest of margins,' said Mr Cavanagh. What is most significant, he told BT, is that President Bush's
'most important
campaign promise' - tax cuts - 'happened, and happened on time'. 'So that's got to be a big victory for him,'
said Mr Cavanagh, who, incidental ly, is a Democrat. The Conference Board is a non-partisan organisation.
But President Bush's second 100 days won't be so easy now that the Senate is i n the hands of the
Democrats, Mr Cavanagh said. 'Economic issues are going to dominate the agenda,' he expects, 'because,
even
though we think the economy is in good shape, a lot of people are still worrie d about it'. Indeed, on the US
economy, The Conference Board believes 'the worst is behind us', he said. In an interview last month when
she was in town, the board's chief economist, Gail Fosler, told BT she expects US economic growth to pick
up to 4-5 per cent in the second half of 2001, for a full-year average of 3 per cent. She also saw
a reversal of the US Federal Reserve's rate-cutting policy by perhaps year-end
as inflationary pressures set in. On Monday, Fed chairman Alan Greenspan said there are as yet no cost
pressures
on the US economy. Mr Cavanagh, however, yesterday cited mounting energy costs, especially in Cal ifornia
- 'which, if it were an own country, would be the world's fifth largest
economy' - that will come to a head at some point. 'Between now and year-end, it's likely that the Fed will cut
rates (one more t ime)', but by next year, perhaps in the second half, interest rates will start rising, he
reckons. But meanwhile, 'because of consumers, who drive two-thirds of the economy', Un cle Sam is still in
good health. Real wages rose by 4 per cent in the first qua rter. That, plus the US$600 (S$1,086) cheques in
the mail for American couples,
thanks to the latest tax cuts, will probably keep American consumers spending away. 'The future doesn't look
so bad,' Mr Cavanagh said, and cited a personal examp le: 'I just bought a house,' he said, which is one
consumer action that typical ly triggers a wave of related spending.
Document stbt000020010716dx66003ov

Reserve List feature lauded for offering flexibility.
By Vince Chong.
555 words
6 June 2001
STBT
English
While it may not be tapped immediately, analysts believe it will have usefu l role when sentiment turns
(SINGAPORE) The government's introduction of a reserve land sale list was laud ed for its flexibility to both
the government and the private sector. Developers, property consultants and analysts polled by BT also
welcomed the r eduction in confirmed land supply to 4,000 private homes and ECs for this year.
Announcing this yesterday, the Ministry of National Development said an additi onal 2,300 units (including
about 1,200 EC units) will be put in a 'Reserve Lis t'. The sites in the list will be released for tender if
developers indicate in terest in them. Describing it as 'refreshing', DTZ Debenham Tie Leung executive
director Ong C hoon Fah said: 'This gives developers flexibility to bid for land parcel that t hey want, even if
it's on the reserve list. At least the government is letting the market speak for itself now. In the future, the
reserve list could also be used to gauge site response.' Analysts believe developers are unlikely to tap the
reserve list within the ne xt six months given the weak macro factors of the economy - oversupply, low GDP
forecasts and uncertainty in the US market. The research head of a foreign broking firm said: 'Nobody would
call for land to be built in a time like this and so, the reserve list will probably remain j ust that - in reserve.' GK
Goh analyst Tan Cheng Teng sees the innovative list as an ideal solution fo r the government. She said: 'On
one hand, the government wants to help the mark et and on the other, they do not want to be seen as bailing
out the developers. ' However, questions were raised about the timing. A market observer said: 'The
government seems to be eager to boost the market in their rush to release the r eview without having
finalised the mechanisms of the reserve list.' On the move to cut real land sales, Jones Lang Lasalle national
director Steve n Choo said that though it was a welcome relief, the move does not necessarily constitute an
impact on property prices. 'The cutback on real supply to 4,000 h omes is responsive and reflective of current
market conditions. It is what the market wants. 'But any upside effect on the entire market can only be felt one
to two years later, as the macro factors of poor sentiment is still around.' Redas executive director Ho Wing
Yin added: 'Redas welcomes the cutback on lan d releases. We therefore urge the government to monitor the
market situation cl osely and to make further adjustment in the GLS (Government Land Sales) Program me
where the situation so warrants.' As for property stocks, UBS Warburg research head Lee Gek Lang said that
histo rically, announcements in government land sale cuts have had only a shortlived positive impact. 'But this
time around, we are begining to see an improvement i n take-up at recent property launches. Against this
backdrop, I expect property
stocks to react positively, especially those with substantial exposure to the housing market and counters that
are trading at steep discounts to their RNAV l ike CapitaLand and Allgreen.'.
Document stbt000020010716dx66003ot

PTC rejects fare hikes for all except feeder buses.
By Christopher Tan.
539 words
6 June 2001
STBT
English
SBS, Tibs to be allowed 10-cent rise; higher rebates for transfer to trunk services
(SINGAPORE) The Public Transport Council (PTC) has rejected all but one propos al for fare adjustment -
that for feeder bus services. The two public bus operators, SBS and Tibs, will be allowed to charge 10 cents
more for feeder rides from July 1 - an approximate 20 per cent increase from t he previous rates. But
commuters who transfer to trunk services will get corres pondingly higher rebates. The move - which raises
feeder rates from 45-60 cents previously to 55-70 cent s - aligns intra-town bus fares with minimum trunk
fares. The adjustment affect s only rides up to the central stop. Rides that go beyond will remain unchanged
at 55-70 cents. Consequently, transfer rebates will now be 25 cents, up from 15 cents previous ly. The PTC
said all other applications - including those by train operators SMRT and SLRT - have been rejected in light of
the current economic climate. The ope rators had sought the maximum allowable increase - CPI plus 1.3
percentage poin ts, as formulated some years ago - across-the-board. Council chairman Eric Gwee said the
feeder rate change came on the back of an ongoing exercise to align trunk and feeder rates, as both services
incurred sim ilar costs. 'This move is necessary to correct the under-pricing of feeder fares today and
will help to remove the cross-subsidy between different groups of commuters to
achieve a more equitable fare structure,' he said, adding that if the adjustme nt was not made, bigger ones
would be necessary in future. 'It's very difficult to do something without affecting anybody,' the chairman said.
'Because it affects very few people, we decided to do it in one step.' The change will affect 280,000
passenger trips a day, out of a total of 4.4 mi llion, including train rides. Mr Gwee said it would also boost bus
revenue by 1 .3 per cent, but pointed out that operating costs of public transport providers
have risen some 4 per cent over the past three years due mainly to service imp rovements. Nevertheless, a
transport stock analyst said the compounded impact on the curr ent financial year is still significant, as bus
operators will enjoy a full yea r of the last increase. One reckoned this will lead to a 2 per cent rise in far e
revenue. Analysts, many of whom were counting on a fare rise for SMRT Corp, a re not ready to downgrade
the stock yet. One said a mitigating factor is that c osts would not be as high as forecast. Indeed, Mr Gwee
said every operator will
be financially viable this year without any adjustment. In the stock market yesterday, Tibs ended one cent
higher at $1.28, while SMRT
fell 1.5 cents to 79 cents and SBS shed one cent to $1.80. SBS parent DelGro l ost 15 cents to $5.75.
Looking ahead, Mr Gwee said with the onset of smart farecards next year, small er adjustments could be
made. Also, concession fares could be 'fine-tuned'.
Document stbt000020010716dx66003os

Govt slashes land sales to 4,000 private homes and ECs.
By Kalpana Rashiwala.
1,087 words
6 June 2001
STBT
English
It starts Reserve List of 2,300 units to give more flexibility to GLS progr amme
(SINGAPORE) The government has cut the release of land for private homes and e xecutive condos this
year by more than 30 per cent from its projections in Nove mber - but instead of an outright pullback, the
amount reduced will go into a ' Reserve List'. Minister for National Development Mah Bow Tan yesterday
announced that land wi ll be released for a confirmed supply of 4,000 units including ECs this year - down a
substantial 33 to 43 per cent from the 6,000 to 7,000 units it announced
last November for this year. However, it is ready to release a further 2,300 units from its 'Reserve List' of sites
in the second half of the year if developers indicate interest in them. If done, this will bring total potential
supply to 6,300 units - matching the
earlier figure. This new feature of offering a reserve supply of land is aimed
at giving the Government Land Sales programme greater flexibility in adjusting
to rapid market changes, Mr Mah said following the programme's mid-year review. Likewise for its
commercial land sales programme, the Ministry of National Dev elopment (MND) will offer a confirmed land
supply for 90,000 sq metres of net f loor area of offices and shops, but has set aside a reserve site in the New
Dow ntown that can add a further 90,000 sq metres of net floor area (NFA). Again, t his total potential supply
of 180,000 sq metres will bring the figure back to t he level the government indicated last November. The
government will also release two confirmed hotel sites this year for 400 r ooms, in line with its earlier figure.
There will be no reserve sites for hotel
development. The reserve list of sites - a feature of state land sales in Hong Kong but new
in Singapore - is a new approach the government has taken in view of the 'curr ent uncertain economic
situation', Mr Mah said yesterday. 'It will allow for greater flexibility for the market to adjust supply to matc h
demand and it will also allow the GLS programme to better respond to any rapi d changes in the market,' he
said. For the first half year, the government has released land for 2,300 private ho mes. No EC sites will be
offered in the first half. In the second half, the sta te will tender out land for a total of 1,700 units - comprising
1,400 private h omes and 300 ECs - resulting in a confirmed supply of about 4,000 units. The se cond-half
reserve supply of 2,300 units comprises 1,100 private homes and 1,200
ECs. All the unsold sites from last year's residential GLS programme and an EC site
in Segar Road in Bukit Panjang originally slated for release in the first half
will be in the reserve list. MND will go ahead with the planned launch this mo nth of a 'white' site in the New
Downtown that can yield 55,000 sq m of NFA and
a hotel site diagonally opposite Raffles City for 250 rooms. However, a third site under the first-half - an
entertainment site in Bugis - will not be offere d this year as there is 'minimal interest' in such sites at the
moment. Three confirmed sites in the second-half list will yield 35,000 sq m of office
and shop net floor area and 150 hotel rooms. Developers, which had been hoping for a big cut in second-half
land sales due to the weak economy and a housing oversupply, yesterday welcomed the cut in con firmed
supply and the new feature of the reserve list. Private home prices have fallen 9.2 per cent after their recent
peak in Q2 las t year, due to an oversupply. There are about 20,000 unsold private homes which
have launch approvals - enough to meet demand for three to four years. MND yesterday also revealed the
sites in its reserve list. If a developer is k een on any of these sites, it can submit an application, indicating the
minimum

price it is willing to bid for the parcel. As long as there is at least one ap plication and the bid meets the state's
reserve price, the parcel will be offer ed through a tender within a month. However, the developer which
submits such an application cannot subsequently b id in the tender a price lower than what it had indicated
earlier. It will be p enalised if it does so. Further details will be released next month. UBS Warburg research
head Lee Gek Lang said she does not see the 2,300-unit re serve supply having a significant impact 'unless
demand picks up substantially and developers' appetite for land increases'. Ms Lee said MND's
announcement was likely to create a floor against further pr ivate home price falls - at most a further 5 per
cent from current levels, she forecasts. 'But I do not expect it to lead to prices shooting up.' Agreeing, Knight
Frank senior director Ong Teck Hui said the factors that were
more likely to have an immediate impact on home prices are demand and the exis ting stock of unsold units.
'Today's announcement pertains more to medium-term supply, which will not have an immediate impact,' he
added. MND did not release a much expected 10-year or medium-term supply quantum, as Mr Mah had
promised developers earlier. 'Supply and demand at the best of times
are already very difficult to estimate, let alone trying to do it over a 10-ye ar period. We have to retain certain
flexibility. It is not possible for us to make such long-term projections and stick to them,' he said yesterday. In
terms of the split between private homes and ECs, only 300 units out of the
4,000 is for ECs. This gives ECs a mere 7.5 per cent share. However, including
the reserve supply, there will be land for 1,500 EC units - or nearly 24 per o f the total supply of 6,300 units.
This is close to the 25:75 split between ECs
and private housing the MND announced last November. ECs are a hybrid between public and private
housing.
Document stbt000020010716dx66003oq

SingTel's surge props up STI as China play cools off.
679 words
6 June 2001
STBT
English
SINGAPORE Telecom's continued rehabilitation and a frenzied play on China-link ed counters that vaporised
as the day wore on were the main talking points in a n otherwise drab session marked by a lack of direction
from overseas as well as
any meaningful institutional presence. Traders also homed in on recent listings Surface Mount Technology
and Norelco,
with the former now almost double its offer price. Most of the other movers we re penny stocks - the lower the
price, the better. This was nicely illustrated by the composition of business done - excluding fo reign
currency issues, 776 million units worth $509 million were traded, about 66 cents per unit. Overall, the market
was said to be 'mimicking Wall Street' - that is, searchin g for direction because analysts are unsure where
the US economy is headed. In the meantime, house traders seized the opportunity created by this lull to try
to play up the second line. The 8.5-point rise in the Straits Times Index to 1,674.62 was due almost entir ely
to SingTel's 12-cent jump to $1.89 with 35.8 million shares traded. Some traders attributed the recovery to
news that SingTel's chief executive of ficer bought shares last week, while others said a rally in Cable &
Wireles s Optus shares in Australia has led to a higher implied value for SingTel share s here. This implied
value comes from SingTel's takeover offer for Optus, which involv es a swap of shares and cash. Whatever
the reason, the strength of the recovery was such that SingTel's shar es - which traded at $1.67 last week -
touched an intraday high of $1.94 yester day. Meanwhile, among the 123 million non-Sing dollar stocks that
were traded was T ianjin Zhong Xin, which accounted for 67 million units or 54 per cent of total volume. The
de facto leader of the second line first rocketed to US$1.10 but co llapsed in the final hour, finishing a net
16.5 US cents down at 89.5 US cents.
Brokers said a rumour started circulating about 3pm that some houses had slapp ed trading curbs on the
counter, although this could not be confirmed. Within the broad China theme there was a distinct 'food' flavour
to the puntin g - top gainers were People's Food and Unifood, while frozen fish and vegetable
supplier Pacific Andes, whose major market is China, also burst into life. In response to the indiscriminate
punting of China plays, DMG & Partners S ecurities issued a report, 'China Play - All That Glitters is Not
Gold', in whi ch it said the 'old and tired' argument of China's admission to the World Trade
Organization doesn't hold water since many of the stocks now being punted won' t be immediate
beneficiaries. 'Our study of 11 high-volume China stocks shows that only six qualify as 'buys ' on sound
investment criteria,' DMG said. 'Our top pick among the six is TPV H oldings, which is the only company
among the 11 that supplies (TV monitors) to the rest of world.' On Tianjin Zhong Xin, which has tripled in price
in three weeks, DMG called an
outright 'sell', even if the listing of its A shares in Shanghai could see the
stock trade at levels significantly above the price here. 'It should be noted that the shares are not transferable
between China and Sin gapore,' DMG pointed out. 'As China is a closed market, there will be a valuati on
discrepancy between the two markets before the liberalisation of the China m arket. We believe the
speculative frenzy is reaching a crescendo and recommend a 'sell'.' Among the blue chips that fell yesterday
were banks DBS, OCBC and UOB, while e lectronics heavyweights Venture Manufacturing, Datacraft and
Chartered Semicond uctor Manufacturing were also slightly weaker. In total, there were 160 rises a gainst
141 falls, with 364 counters either not traded or unchanged.
Document stbt000020010716dx66003ph

Heed honest feedback, SIA.
By JOE MOREIRA.
500 words
5 June 2001
Straits Times
STIMES
English
I REFER to the letters, 'SIA is a company and must look after itsprofits' (ST, June 2) by Mr Anthony
Prakasam, and 'Forget about the gamesandgive us more legroom' (ST, May 26) by Mr Robert Bartlett. Mr
Prakasam said that as SIA is not a charitybut a profit-makingorganisation, it is thus natural that it would
segment the market andfavour the group that contributes more to the bottom line. I feel that this is misleading
in terms of business perceptions incustomer service. Fundamentally, a business is created and continues to
exist becauseit serves the needs of customers, who then pay for the service rendered. The quality of this
continued exchange will determine the qualityof the business' continued existence. Businesses can make
profits, but they have to provide a servicefirst.
Mr Prakasam also mentioned that economy-class fares are cheapbecause first-and business-class
passengers are subsidising the cost ofthe flight.p Then, does this mean that all customers who purchase
SIAtickets from Singapore are subsidising those customers who purchase theirtickets elsewhere in the world
- as Singapore is one of the most expensivecountries in which to purchase a ticket? Mr Bartlett's call is
probably honest-to-goodness feedback to SIAto say, 'hey, most economy-class passengers would actually
prefer morelegroom than some new computer game'. Mr Prakasam has not denied that there is such a
customer need. Thefact that he claims first-and business-class passengers subsidise economy-class
passengers attests to the fact that 'legroom' is rated highly amongfare-paying passengers. When the world
expected SIA to fold up without a domestic market,it not only survived but also excelled. It did this not by
fleecing its customers, but by identifying theunexpressed but highly-valued needs of the fare-paying
passenger. It delivered more than the customer expected. It neither served cup noodles, nor selected boring
stewards andstewardesses who showed openly that they would rather not be on that flightor be in that job. It
also did not buy the cheapest aircraft from the secondhandmarket or lease such craft. From a strictly
pecuniary point of view, most airlines continue todo so, because they are 'penny-wise'. Interestingly, this
millennium began with a big bang aboutintegrity. Leaders and businesses which compromised on this virtue
as thecentury turned started falling, and continue to do so. It is perhaps the millennium of the knowledgeable
customer who willnot be taken for a ride because he is well-informed. SIA can continue to lead and heed
honest feedback from the likes ofMr Bartlett or rest on its laurels, on loyalty from passengers such as
MrPrakasam, hoping that games and such gimmicks are hypnotic enough to get byon 'penny-wise' decisions.
I sincerely hope it will not be 'pound-foolish'. On his point about passengers who 'chose' to be cramped up
ineconomy class, perhaps Mr Prakasam has forgotten the days when smoking wasan accepted practice,
even on SIA flights. But it no longer is. Does he wonder why?
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Youngsters out to break taboos over Aids.
By James East.
478 words
5 June 2001
Straits Times
STIMES
English
A brave Singapore girl is among those gathering in Bangkok this weekwho say it is time for the world to talk
openly about HIV-relatedillnesses
BANGKOK - She is young, beautiful and determined to tell peopleabout the dangers of sex and drug-taking.
But her HIV status means that, back at home in Singapore, few knowthat she is infected with the virus that
can lead to Aids. Her business card says Natashya Yong, but this is not her realname. The 21-year-old
worries about photographers taking her picture. In Singapore, her two siblings have no idea their older sister
isHIV positive. She has shared her secret with only a few trusted friends, yet shetravels the world urging
governments and their agencies to talk openlyabout sex and drugs. 'If I did not have my family obligations, I
would not mind my realname being used,' she said. 'People in Singapore have a stereotyped view of those
with HIV.' This week, Natashya is in Bangkok where more than 100 young peoplefrom across the Asia Pacific
have been meeting at the headquarters of theUnited Nations Economic and Social Commission for Asia and
the Pacific(Escap). They are sharing their stories and telling governments what theythink should be done to
halt the spread of HIV, drugs and teen pregnancies. Escap's executive secretary Kim Hak-Su told them: 'We
must breakthe silence that we have imposed on these issues and discuss them openly,without being
judgmental.' Natashya, who is studying for a business degree at the OpenUniversity, does not know how she
contracted HIV, whether through sex or asa result of a visit to a dentist. But she learnt of her HIV status three
years ago when she went togive blood. As a representative for the Asia-Pacific Network for People Livingwith
HIV/Aids in Singapore, she is off to conferences abroad almost everymonth, most recently to Malaysia. She
worries that the natural conservatism of Singaporeans means themessage is not getting home. She says
most people associate HIV infection with homosexuals,transvestites and businessmen using prostitutes
abroad, believing it haslittle to do with 'normal' people. In reality, she says, young heterosexuals are having
unprotectedsex. She says there are now about 330 people aged 10 to 29 with HIV inSingapore. For some,
the drug-cocktail treatment is prohibitively expensive atS$1,200 a month. Others have had to move out of
their homes - or have been thrownout - because they are thought to have brought dishonour upon
theirfamilies. Plans to build an Aids hospice have also met with difficulties. These are the sorts of issues that
29 members of Singapore's YouthChallenge are also learning about in Bangkok, where they are sharing
theirideas. National Junior College student Serene Woon, 18, said she believedmany young people did not
think the issue was of relevance to them.
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S'pore 'may lose out in global brain war'.
By Mary Kwang.
515 words
5 June 2001
Straits Times
STIMES
English
Singapore risks being squeezed out between the East and the West unless it does more to promote the
brain gainfor itself, saysSingaporean author
BEIJING - A silent global war is being waged for the world's bestbrains with the main players being China,
Taiwan and India on one side andthe United States and other Western countries on the other. Singapore
risks being squeezed out unless it does more to promotethe brain gain for itself, according to a Singaporean
who has spent morethan a decade pursuing the subject. Dr Vincent Yip was in Singapore over the weekend
to launch his newbook, The Great Talent Battle, at the Singapore Book Fair. In an interview with The Straits
Times in Beijing before he leftfor Singapore, he said: 'Watch China progress rapidly. 'In another 20 years,
Singapore might be reduced to the role of aBelgium or Luxembourg, not Switzerland as we had set out to do,
vis-a-visthe European Union; or the role of a Hawaii or Puerto Rico, not New YorkCity, vis-a-vis the US.'
Referring to the thousands of Asians who study and work in the US,he said: 'The competition for the best is
just too cut-throat and the US iswinning the race hands down.' On this side of the Pacific, Chinese coastal
cities such asShanghai, Beijing, Guangzhou and Shenzhen are magnets for returning ethnicChinese as well
as Western expatriates. The attractions of China, including the romanticism of workingthere, will increase in
intensity in the next 20 years as the countryimproves its living conditions and political and social environment,
Dr Yipsaid. Hongkong could create a 'Hongkong Bay Area' encompassing Shenzhen,Zhuhai, Macau and
Nansha. In 1999, high-tech industries accounted for 35 per cent ofShenzhen's total industrial output.
China's best universities, Qinghua and Beijing University, haveestablished research bases there. Talent from
the huge hinterland of China is also Hongkong's 'secretweapon' in its fight for technological supremacy with
Singapore. Dr Yip suggests, in his book, that Singaporeans learn from thetalent war. 'Learn the plans, the
strategies and tactics, especially of Chinaand Taiwan, and apply them to Singapore.' He pointed out that in
Singapore, the most popular professions arethose of doctor, lawyer and banker. Scientist and professors lag
behind. China, on the other hand, has always admired world-famousscientists, such as mathematician Hua
Luogeng and physicists Qian Xuesenand Yang Zhenning, a Nobel Prize winner. Dr Yip said Singaporeans
lacked the Mandarin-scholar mentality,which stresses the honour and supremacy of intellectual pursuit over
allother human endeavours. He said that many Singaporeans have opportunities and can afford tostudy
abroad. But they choose merely to pursue bachelor's or master's degrees andthen to seek a stable job with
the government or internationalcorporations. They show little desire to pursue higher degrees or to
undertakeresearch and development (R & D) projects. By contrast, there are numerous Taiwanese with
doctorates from theUS who either remain in the US or return to Taiwan to carry out R & Dwork and establish
high-technology companies, he said.
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Fewer foreign patients in Singapore.
386 words
5 June 2001
Straits Times
STIMES
English
Overseas patients are attracted by cheaper
treatment options offered by private hospitals across the Causeway
SINGAPORE'S private doctors are losing some of their overseas patients, especially those from Indonesia, to
cheaper private hospitals in Malaysia. Recent figures from the Ministry of Health show that the number of
foreign inpatients here has dropped by almost a quarter - from 16,418 in 1997 to 12,746 last year. In contrast,
Malaysia's Health Ministry reported a huge jump in foreign patients seeking treatment there - mainly in
Malacca, Penang and Kuala Lumpur - since the government started promoting health tourism during the 1998
economic crisis. The number of foreigners who went there to seek treatment more than doubled a year later.
In 1999, about 77,000 foreign patients sought treatment at 13 private hospitals in Malaysia, compared to just
33,000 the previous year. Doctors and hospital chiefs on both sides of the Causeway say Malaysia's
health-care costs are between 50 and 70 per cent cheaper than Singapore's. Mr Alan Yeo, the chief
executive officer of Singapore-based Health Management International (HMI), said: 'The weaker ringgit and
lower ground costs make Malaysian private health care much cheaper than Singapore's.' HMI runs one of
Malacca's more popular private hospitals, the Mahkota Medical Centre. Its Australian chief, Mr Keith Dry,
said: 'We probably see about 2,000 foreign patients a month. Eight out of 10 are from Sumatra and other
parts of Indonesia. The rest are from countries like Thailand, Brunei andIndia.' Recent political and economic
troubles at home have also made theIndonesian middle classes more careful with their medical expenses,
headded. For example, Batam resident Lily Chu, 51, said she used to take ashort ferry ride to Singapore
whenever she needed to see a doctor. But, like her relatives and friends, she chose to travel almost sixhours
by ferry and car to Malacca when she required treatment for her coloncancer recently. Raffles Medical Group
executive chairman Loo Choon Yong believesthe regional market is big enough to sustain Singapore's
private hospitals. He said: 'Whether patients are local or foreign, they will keepcoming back if you provide
high-quality treatment at reasonable prices. 'That's why we are optimistic that Raffles Hospital can stillattract
half of its patients from outside Singapore.'.
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Sorting plant to give recycling a boost.
273 words
5 June 2001
Straits Times
STIMES
English
THE Government is prepared to work with the industry to help set up an automated waste-sorting facility
here to help make recycling a success. Acting Environment Minister Lim Swee Say said that getting people to
recycle because they should, rather than because they must, in order to avoid a fine, will not happen
overnight. He said that a waste-sorting plant would help speed up the process. It would make recycling more
convenient for households, who would not have to worry about separating their trash at home into glass,
metal and paper wastes, for example, as they do in some countries. Instead, they only have to place all the
recyclable waste in one green bag and wait for it to be collected from their homes. He said: 'If the process is
complicated, there will be more resistance to change... we will work with the industry to facilitate the setting
up of an automated sorting plant.
This will make it more convenient.' Two other necessary ingredients for a successful nationwide recycling
programme are: Public education: If people know that Singapore could run out of landfill space, they might
be more willing to take part, said Mr Lim. Incentives: In the past, it was thought that the more peoplerecycled,
the more they should be paid for the recyclable material. 'But feedback from grassroots leaders suggests that
what Singaporeans are looking for is not so much just financial returns... 'If we can somehow find ways to link
the benefits of recycling tothe good of the community, that may be good enough reason for many residents to
take part.'.
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'Fine city' not enough for going green.
By Dominic Nathan.
497 words
5 June 2001
Straits Times
STIMES
English
PASSING tough laws and enforcing strict compliance with pollution standards have kept Singapore clean
and green for 35 years, but the same approach will no longer be enough, said the Acting Environment
Minister, Mr Lim Swee Say. 'While Singapore may continue to be a clean and green city for years to come,
we will never be able to run away from this image of being a'fine city', where we will always be doing things
not out of personalcommitment, but because we have to do so under the law.' Enacting laws only stops
people from doing what is illegal, andadopting such a strategy to achieve environmental sustainability will
meanthat the pace and progress of going green will be slow. 'Environmental sustainability goes far beyond
what is illegal. Itis about doing things which we believe in,' said Mr Lim in an interviewlast week to mark World
Environment Day today.
To mark the occasion, the United Nations Environment Programmepublished a special edition of its
magazine, Our Planet, for which Mr Limwas invited to pen an article on how Singapore manages its
land-transportsystem in an environmentally sustainable way. Just as radical and creative solutions like the
vehicle quotasystem and road pricing were devised to keep Singapore congestion-free, amindset change is
needed in other areas to ensure that Singapore continuesto achieve economic growth and social progress
without harming theenvironment - as it has done for the past 35 years. New solutions will have to be found to
manage water, air and landresources in an 'end-to-end manner and, more importantly, to have the twoends
linked as well', said Mr Lim. Explaining how this would work for each of the three resources, hesaid: Water -
As demand grows, instead of just adding to the supply, theauthorities are now looking at how to recycle water
instead, so that thesame drop is used several times. This is already being tested. Treated sewage water is
beingpurified for industrial use, possibly for wafer-fabrication plants. Air - Instead of controlling pollution from
industrial smokestacksor vehicle exhaust pipes, efforts should be moved upstream, by conservingenergy or
using cleaner fuels or technologies. This way, instead of curing a problem, it is being prevented. Land - The
focus had always been on incinerating solid waste, asthis reduced the volume of rubbish by 80 to 85 per cent.
Now, however, instead of concentrating on waste disposal, effortsare being made to reduce waste, through
recycling either the productsthemselves or the raw materials. 'And we are also looking at how we can close
the loop by re-usingthe bottom ash in incinerators by turning it to a resource for use insecondary materials.'
He added: 'A commitment has to be made to go green, not just by theGovernment, but it has to be a
collective commitment by the people, publicand private sectors. It cannot be imposed but has to evolve and
be jointly embraced byall three sectors for a shared vision and joint ownership.'.
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700 chosen for NUS' new gifted scheme.
By Sandra Davie.
481 words
5 June 2001
Straits Times
STIMES
English
The undergrads, to be groomed for leadership roles, will study a broadrange of subjects and do a year
abroad
A NEW programme for gifted undergraduates will be launched nextmonth by the National University of
Singapore (NUS), with 700undergraduates, including 300 freshmen, having been hand-picked for
theprogramme. Students selected for the University Scholars Programme will pursuespecially designed
courses which will include core curriculum modules, onsuch subjects as human behaviour; science,
technology and society; andsocial and economic analysis. They will be taught the mode of thought in the
differentdisciplines and be trained to think and write clearly and effectively. They will do the modules on top of
their major and electivesubjects. Unlike the other freshmen, the first-year students on the programmedo not
sign up for a specific course when they enter the university. Instead, they will take a wide range of subjects,
deciding on theirdegree course only at the end of the first year or even in their secondyear. The students
have also been offered places at the newest hall ofresidence, the Prince George's Park. About 250 to 300
students are expectedto take up the offer. NUS plans to offer all students on the scheme a one-year stint in
aleading overseas university too. They will also be sent to conferences and given the opportunity totake part
in community action projects to develop their leadershippotential. Professor George Landow, dean of the the
programme, said the schemewill allow NUS to have an 'Ivy League university within a stateuniversity', where
the best and brightest students will be developed intoleaders for the government, industry, academia and
even the arts. He added that through the core curriculum modules, NUS hopes toturn out leaders for the new
economy 'who can integrate knowledgecreatively'. He said that over the last few years, the university had
launchedseveral smaller faculty-based schemes, such as the talent-development andthe core-curriculum
programmes to groom the best and brightest. But now all these schemes have been brought under one
comprehensiveprogramme. A few NUS students have criticised the new plan as being elitist,but Prof Landow
said: 'The programme is no more elite than the medicalfaculty, where the best students are admitted.'
Students are selected based on their results, co-curricularactivities, personal essay and an interview. The
senior students who have signed up for the programme alsodefended the scheme. Said Mr Lee Wei Bing, an
economics major who is in his second yearof study: 'Every student can apply. It is open to all. And those of
us whogot in worked very hard for it.' Another student, Ms Sabrina Lim, 21, said she hoped that the
newscheme will give her an edge in the job market. Said the literature and psychology student: 'It prepares
you forthe new economy well in allowing you to understand and use the linksbetween the sciences and the
arts.'.
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Doubling your potential market.
By Trina Foo.
601 words
5 June 2001
STBT
English
Pick up a new language, and raise your chances of outshining the mainstream cohort
A GOOD education with a French twist and more options at the end of the day - these are just some of the
reasons why Adrian Ong chose to attend an engineering school in Paris. 'I was looking for a tertiary education
that could offer me something extra compared with conventional Anglo-Saxon ones, and having learnt a new
foreign language was that extra edge I got,' he says. 'It doubles your future po tential 'client' market to include
Anglo-Saxon, and non-Anglo-Saxon communities.' Adrian attended Institut Superior D'Electronique de Paris
from October 1990 to August 1996 as a Public Service Commission (PSC) scholar. At that time, the PSC was
promoting education in France, so there was ample information available on study opportunities. He says that
the PSC did a good job at facilitating the decision-making process, but the choice was ultimately his. 'When I
made that decision a decade ago, it was not the mainstream choice of scholars...but that decision in your
future lies with you and you have to acquire enough capacity to decide what is best for yourself.' What struck
him as he took his first step outside the airport was the French autumn, and the 'hint of seasonal anxiety that
you would be embracing for the next six prime years of your life'. He spent a year in Vichy mastering the
French language, and was struck by the intimacy between the people, who knew everyone else by name and
treated each other amicably. He enthuses: 'The best sport I have taken up is skiing in the Alps of the Mount
Blanc region.' His tutor first taught him using pictures, without resorting to a single word of English, to convey
the meaning of French words. At times, his frustration even made him want to fly back home, but today he
says, 'If you speak English in your French lessons now, you are going the wrong way. 'Learning a language is
also about capturing the mood and developing a spontaneous thinking logic a la francaise, especially the
reasoning logic which is diagonally opposite from the Anglo-Saxon's.' He reckons this explains the superiority
the French have in mathematics, the basis of many new technologies. He stresses the importance of a
willingness to let go of past language burdens and immersing oneself in the native living environment,
something which cannot be done while living in Singapore. The French also have a very different attitude
towards work. Working professionals would have one cafe break in the morning and another in the afternoon,
but would clock long hours and have little vacation. In engineering schools, each lesson would last two to four
hours. So what made the biggest impact on him during his years in France? 'I suppose it would be the
emphasis on backyard thinking - theory founding instead of the more pragmatic applied science and math -
how you derive theories and inventions.' He is with the Infocomm Development Authority of Singapore, and
thinks his French education has positioned him well, with regard to future markets driven by European
superpowers like France and Germany, in addition to China and the Unites States. 'At least, you can have
easy access to French written materials on the Internet. It helps you build trust and confidence with your
business partners when you speak the same language,' he says. 'After all, it's about how you lay your path
early to increase that opportunity to shine from the mainstream cohort.'.
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A good mix of culture and technology.
561 words
5 June 2001
STBT
English
France offers a host of academic opportunities, not just studies in the humanities as is commonly believed,
reports MELISSA SIM
ALL for one and one for all. Indeed, France could be the one place for all your needs - fine dining, the arts,
romance and, to top it off, an all-round education. Perhaps you think France is a place for the humanities.
Well, dispel that thought because there is a host of other opportunities available to students in areas such as
engineering, business studies and the sciences. In fact, the French Embassy in Singapore is keen to
promote France as a place that offers a good mix of old and new - culture and technology. 'It's the ideal place
to pursue my studies in architecture due to the richness of its architecture and arts and its openness with
respect to culture,' says Kelvin Tan Soon Yee, a PSC scholar who is studying at Ecole Speciale
d'Architecture. 'It's a good mixture of old, charming Europe and metropolitan internationalism - a fertile
breeding ground for architectural studies.' Laure Bourdarot, counsellor for co-operation and cultural action at
the French Embassy, points out that one third of the world's engineering and scientific developments come
from the European Union countries. The French education system is a dual system. On one side, there are
the universities and on the other the Grandes Ecoles. The Grandes Ecoles provide a specialised,
professional education more oriented towards industry. The fields covered are mostly engineering and
business management. Students have to go through two years of preparatory courses before sitting for a
competitive entry exam. Courses last about three years and students have to go for an industrial
attachment, which lasts one to six months. The state universities, including the famous La Sorbonne in Paris -
renowned for studies in the humanities, offer courses such as the humanities, medicine, management and life
sciences. The universities lean more towards training students for research. The language barrier is,
according to Ms Bourdarot, easily overcome. 'If a student is taking a course in engineering, then they only
need about three months of French lessons in France to be able to get by,' she says. But for the arts and
humanities, a much deeper understanding of the language is necessary. Applicants must also sit for a
language test before entering university. Besides the language barrier, a problem overseas students may
face is recognition of French degrees. But Ms Bourdarot points out that there was a meeting between 32
European countries in May 2001 and it was decided a degree conferred by any of them will be recognised by
the rest. In terms of cost of living, the French Embassy estimates that one needs about $900 to $1,000 per
month. Tuition fees at state universities are $200 to $300 per year, while those at the Grandes Ecoles are
$800 to $1,000 a year. Students also have to make a one-time payment of $40 for a visa. About 100
Singaporeans are now studying in France, and the French Embassy is keen to encourage more to study
there. 'Our major priority is to welcome Asian students, especially Singaporeans,' Ms Bourdarot said. For
more information on studying in France, contact Sophie Millot at edu - cedust@france.org.sg or visit the
website www.france.org.sg.
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Peg worth of manager to the value he creates.
244 words
5 June 2001
STBT
English
HOW much money one makes depends on how much value one creates. The phrase 'pay peanuts and you
get monkeys' is well understood by all Singaporeans. How much a management team should be paid must
be tied to how much shareholder value it has created. Shareholders of Hutchison Whampoa in Hong Kong
never need to justify the millions of dollars paid to the company's senior management. The shareholder value
it created has been remarkable. Top talent should be seen in terms of shareholder value created. Many
factors affect an executive's performance - ranging from luck to understanding of the local business
environment. Top talent, like football players, lose their form from time to time. Off-form talent like football
players should also be sidelined, transferred or forced into retirement whenever they underperform. Even
George Soros and Mike Tyson have paid the price for being 'off-form'.
Recently, I sold most of my shares in a Singapore bank as I felt that its management did not understand
Asia. Hence there is a limit to how far this team can lead an Asian bank. I was proven right as the share price
has since fallen. Singapore has taken a bold first step in building world-class companies by paying
world-class salaries to foreign managers. The next step is to drive these managers to deliver world-class
performance and corresponding shareholder value. Lee Kheng JooHong Kong.
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China fever grips punters, but broader market drifts.
664 words
5 June 2001
STBT
English
Ven Sreenivasan IT was China fever yesterday as punters chased a handful of China-linked plays, leaving
the broader market largely drifting. There was also some nibbling on selected blue chips, which helped the
Straits Times Index snap a three-day losing streak. But still, it was the penny stocks that hogged the limelight.
Volume was strong, but skewed by the heavy play on small caps. China-linked issues accounted for almost
half of the 746 million shares traded. The STI ended the session 16.34 points higher at 1,666.12, thanks
largely to Singapore Airlines and the banks. In the second line, Tianjin Zhong Xin surged US 23.5 cents or
28 per cent to a record US$1.06 on 80 million shares amid frenzied punting sparked by speculation relating to
its A shares, which will be listed on the Shanghai bourse tomorrow. Brokers said punters chased up the stock
on rumours that the A shares will debut at almost double the 10-yuan issue price.
'Many retail players reckon they can enjoy some kind of arbitrage if that happens,' said one broker. This is
despite the fact that the A shares will be traded in a 'closed market' exclusively for Chinese nationals. Also
fuelling Tianjin's surge were rumours that the company could delist in Singapore following the Shanghai
listing - something the firm has already denied. Another counter with China exposure, that of monitor maker
TPV Technology, rose eight cents to 43.5 cents on 56.2 million shares. But unlike Tianjin, analysts believe
this stock has more upside, given the company's strong fundamentals and market position. UOB Kay Hian
has a six-month target of 60 cents, after meeting TPV's chairman and managing director Jason Hsuan
recently. Most brokers dismissed the enthusiasm for China plays as a passing phase. 'People need a flavour
or story for the month,' said one trader. 'It could just as well have been infrastructure or technology stocks.'
Meanwhile, there was noticeable interest in some blue chips. Singapore Telecom was the day's surprise,
shooting up by as much as 10 cents as investors took a cue from SingTel's chief executive Lee Hsien Yang,
who bought a quarter of a million shares at between $1.66 and $1.71. It closed with a net six-cent gain at
$1.77 on 27 million units yesterday - and market watchers such as OngCo sales director Gabriel Yap believe
the long-suffering counter has bottomed out. 'The market is beginning to realise that SingTel was oversold,'
he said. 'No doubt, the huge premium it paid for C&W Optus is earnings dilutive and a big negative, but
now that it's a done deal people are beginning to look ahead. There seems to be a growing realisation that
Optus could enhance SingTel's position, both regionally and its mobile services market, and boost its
earnings in the longer term.' Other observers, such as NetResearch-Asia managing director Kevin Scully,
attribute SingTel's recovery to 'reverse-arbitrage'. 'Optus shares have recovered some 6 per cent in recent
days and at the current price of about A$3.60, the implied value for SingTel is around $1.99,' he said.
Singapore Airlines, which also could unveil a major Australian acquisition in the coming months, finished the
day in positive territory. The stock bounced back from a six-week low to close 20 cents higher at $12.80 on a
volume of 1.1 million shares. Tech stocks, meanwhile, were supported by a report showing that US
unemployment fell unexpectedly in May, suggesting the economy could be bottoming out. Chartered
Semiconductor rose 15 cents to $5.15, while Omni Industries added nine cents to $2.90 and Venture
Manufacturing gained 30 cents to $12.60. Elec & Elteck, which is the subject of a takeover proposal by
GES International, gained 9 US cents to US$2.64.
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Some vital questions on elipva still unanswered.
By Jennifer Lien.
1,395 words
5 June 2001
STBT
English
And settling them will help a lot in setting people's minds at rest about the viability and worth of the company
In Silicon Valley
THE website of e-commerce software provider, elipva Ltd, was taken offline on Thursday, May 17. Before it
was taken down, the front page of the website boasted 37 news stories related to the company, 12 press
releases, two 'white papers' and three published articles. When it was restored a few days later, there were
only four news stories, no press releases, one white paper, and two published articles written by company
officials. In the three working days between May 17 and May 23, the company suspended, then fired, Dennis
Lee, its co-founder and chief technology officer (CTO), for making false claims about winning non-existent
awards, writing non-existent books, and writing articles that had been plagiarised. From the copious amount
of public-relations information removed from elipva's website, it is apparent that there was a great deal that
was of questionable authenticity. Of course, none of the material now remaining on elipva's front page has
any reference to the now-notorious Mr Lee. 'We really want to get on with our business,' chief executive
officer Thomas Choong told BT late last month. 'We have had very much to do in the past week, as you
would understand. We really have nothing to add to what we've already said.' But what elipva has said so far
still leaves several important questions unanswered - questions which should be important to anyone
interested in the state of technopreneurship in Singapore today, and which offer valuable lessons to all
entrepreneurs in Singapore. After swiftly firing Mr Lee for his misdeeds and 'categorically severing all ties'
with him, the company - over 70 per cent owned by ST Telemedia, a Singapore Technologies unit -
emphasised in a statement that its products and services, and its fundamental performance, would 'remain
untouched'. But can elipva's business and product really remain 'untouched' after losing a co-founder who,
from all public accounts, invented its product, and whose achievements formed an integral part of its pitches
to customers and potential investors? The company has lost not only its chief architect and 'world-renowned'
creator of its product, but also its chief evangelist and all-round poster boy. In fielding the company's press
pitches in the past, it was hard for journalists to divert company officials away from the subject of Dennis Lee.
What was Mr Lee's actual involvement in elipva's product? To what extent did he actually develop the
product? These matters are of interest, not least to its current and future clients, but also to the venture
capitalists that the company has been courting in recent months. But that aside, who will take over the
technical side from now on? Without an artificial-intelligence 'guru' on its team, what makes elipva's product
and direction more compelling than those of its competitors? On the issue of management, pressing
questions remain about the nature of due diligence employed in assessing, and publicising, Mr Lee's claims.
Wrote Benjamin Lian, managing consultant for MediaHub Pte Ltd: 'Anyone with a solid information technology
background would have been sufficiently sceptical on seeing his unbelievably impressive resume to
immediately do some quick research on the Web.' Dr Lian, cited as a co-author for one of Mr Lee's
non-existent books, added that he had never met Mr Lee. Gary Morgenthaler, a Silicon Valley venture
capitalist, said: 'Reference checks involve checking not just references that a candidate has offered, but
references that he has not offered but who would have reason to know him. The latter are often the most
instructive - character issues that would lead to falsification of facts are often uncovered in this process.
Ultimately, it is the character issues - even more than individual facts - that are of concern to investors.' Such
comments apply not just to investors, but to managers as well - and here there are important lessons for all
technopreneurs. 'Founding teams of many start-ups have to know and trust each other very well, sometimes
more intimately than their own spouses,' said Silicon Valley-based tech consultant Jek Kian Jin. He added:
'However, trust is not enough. They work together, discuss business plans, system architectures, software
design and implementation issues. In all this time, if there is the slightest doubt that one member of the team
is not what he says, this would be found out in short order.' While Mr Lee's fake claims began some time
before the founding of elipva, many of his most fantastic assertions - the winning of the MIT and Stanford
awards, the authorship of several non-existent new books - were made after the founding of the company. A
simple word search on the Web would have been sufficient to debunk many of his bogus claims. Why did
no-one in the company think of doing this? Mr Lee's most 'recent' book, Dotcomming The Enterprise, is
another example. Even a casual examination should have raised questions about the book, which appears to
be a shoddy, self-published fake. There is no title, author and publisher information on the dust jacket spine.

The black cloth binding of the book is completely blank, with nothing printed anywhere on the cover. The
publisher's name is misspelled 'Penguin Putram' - instead of Putnam - on the dust jacket as well as
throughout the book, although in a company biography as well as material furnished by elipva's public
relations office, the publisher's name had been correctly spelt. The book is also full of stylistic aberrations,
inconsistent with international norms of book publishing. For example, the credits page appears on the
right-hand side, instead of the left-hand side, as is the standard practice. Grammatical and editorial errors
also dot the book, highly uncharacteristic of a world-class publishing house. In addition, a random sampling of
the main text using the Web search engine Google showed large chunks of the book actually having been
lifted from materials by Sun Microsystems, Netscape, IBM, BEA Systems, SAP, the Patricia Seybold Group,
and several industry magazines. The book appears to have formed a major part of elipva's PR material.
Copies of the book were handed out to Malaysian journalists at an elipva press conference earlier this year,
and CEO Dr Choong himself gave BT a copy of the book, stamped with elipva's name and address on the
first page. It is understandable, although not excusable, that busy journalists, constantly bombarded with
information, would not have paid close attention to the book, let alone read it. But it is less understandable
that the company's PR team - and its chief executive himself - would not have paid closer attention to a book
that they were giving out as publicity material. In fact, internal company e-mails obtained by BT paint a picture
of a 40-something CEO who was impressed by the credentials claimed by his 29-year-old co-founder and
CTO. Dr Choong publicly stood by his 'wonder boy' through frequent absences attributed to a potentially fatal
disease. In fact, Dr Choong was so impressed by news of Mr Lee winning an award that he suggested
holding a press conference. 'We ought to get the details to the press,' he wrote in one e-mail. 'They love a
local boy in the limelight!' In elipva's statement last week, Dr Choong, denouncing Mr Lee's conduct in the
'strongest possible terms', also expressed 'regret' on behalf of elipva for 'inadvertently' misrepresenting
'misleading information concerning Mr Lee's credentials' as true. The company also confirmed that it applied
'certain checks' to verify various elements of the information before announcing them, including obtaining
copies of proof from Mr Lee. But when asked, the company declined to detail how extensive the checks were,
and to what elements they were applied. Perhaps the company had convincing reasons for believing Mr Lee's
fabrications - but being transparent about this could go a long way towards setting people's minds at rest. And
then, with these loose ends finally tied up, elipva will have the peace of mind, and the freedom, to get on with
its business. The writer is BT's Silicon Valley correspondent .
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Questions of integrity.
600 words
5 June 2001
STBT
English
THE sorry tale of the Singapore super-achiever who wasn't confirms the old adage that you can't fool all of
the people all of the time. More than that, it raises troubling questions of accountability and integrity. The star
that allegedly went off-course is 29-year-old Dennis Lee, who co-founded an e-business software firm
funded by a local technology giant. Mr Lee came in on a wave of acclaim, having apparently won prestigious
international awards and fellowships for his work in artificial intelligence and co-authored several books and
articles. A BT investigation, however, uncovered evidence that appeared to confirm suspicions that most of
the stellar credentials had been faked. The errant technopreneur has since been dismissed. In a sense, the
young man who metamorphosed so dramatically from shooting star to fallen star was a product of his times.
In pre-Internet days, 20-somethings were rarely seen in the forefront of businesses.
That began to change with the advent of the personal computer and the rise and rise of the new technology's
Young Turks like Steve Jobs, Bill Gates and Michael Dell. But even then they were the exception, and
consequently faced a media spotlight that would have quickly exposed any fakery. Came the Internet and the
stories of young technology wizards riding the dotcom boom to fame and riches became too many to be
remarkable any more. Even after the dotcom bubble burst, the cult of young genius remained very much alive
and stars remained much in demand. All the more so since competition for new Internet business was
getting more intense. Perhaps, like ardent viewers of The X-Files, some company chiefs wanted to believe.
That to some extent explains - but, of course, cannot excuse - the failure of some companies to exercise the
level of due diligence that would prevail under other circumstances. The broader perspective, though, is that
the faking of credentials by one or several individuals is by itself not grievous. What needs to be asked is
whether this is symptomatic of a larger problem: has technology, and the Internet in particular, compromised
acceptable standards of business integrity? On the surface, the answer appears to be yes, because the
Internetoffers a level of individual power never before seen in human history, and the temptation to exploit it is
proving too strong for some. But that is misleading. The philosophy of 'greed is good' predates the Internet.
And it's no coincidence that acceptance, even approval, of corporate excesses plumbed new depths even as
Wall Street climbed to new heights. It is true that the Internet, with its awesome reach and its ability to give
the expert user access to astounding amounts of public and private information, offers potent new tools to the
already greedy and corrupt. But then, the same Internet provides the means to detect the abuse. The Net is
just a tool; and, overwhelmingly, it is a positive tool that empowers individuals in the best sense of the word.
Trust What needs to be critically examined is the corporate ethos that allows matters of integrity to be glossed
over or even ignored. Without being moralistic, it is easy to see how greed and a collapse of integrity
accelerated and then burst the dotcom bubble. More fundamentally, work by Stephen Covey and others
shows that principles-based business is, quite simply, good business. Customers prefer to buy from those
they trust. Workers who are treated with trust and integrity are more satisfied and more productive.
Singapore workers and bosses can surely relate to that.
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M'sia slowdown will hit S'pore - SG.
By Anna Teo.
282 words
5 June 2001
STBT
English
THE key risk to Singapore's near-term economic growth - and Sing-dollar prospects - comes not from the
US economy or the global electronics cycle, but from much nearer home: Malaysia, says SG Securities. It
said growing 'policy disarray' in Malaysia is 'depressing demand there more than warranted by the electronics
slowdown' - which could hurt the country's demand for Singapore goods and services. SG forecasts that
economic growth in Malaysia - one of Singapore's biggest trading partners - will slow to 5 per cent or lower
this year. This, plus rising political uncertainty and a likely ringgit devaluation next year, could pose major
downside risks for Singapore's growth, given the extensive links between the two neighbours. To start with,
bad news in Malaysia could dampen business and consumer confidence in Singapore, SG says.
There is a high level of integration of manufacturing activities on both sides of the Causeway, it notes, and 'a
lot of Singapore-based activities in finance, wholesale, business services really service the Malaysian
hinterland'. Singapore's Q1 weakening (GDP growth slowed to 4.5 per cent) went beyond the well-known
cyclical factors - structural factors were also at work, SG says, citing accelerated efforts by Singapore
companies to cut costs. SG's forecasts see the Singapore economy slowing further to 4-4.4 per cent growth
in Q2, before staging 'a strong bounce' of 6.8 per cent growth in the second half for a full-year average of 5.8
per cent. That's the base scenario. If the downside risks ensue, growth this year could well drop to about 4
per cent, SG reckons.
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State Street Corp wins offshore bank licence.
By Genevieve Cua.
255 words
5 June 2001
STBT
English
US-based State Street Corporation has won a licence to operate an offshore bank branch here, and expects
to open the branch in the next few months. The group - which provides global custody and investment
management services as well as currency management and securities lending - has lately been making
inroads in Asia. In Hong Kong, for example, its investment management arm, State Street Global Advisors,
launched the Hong Kong Tracker Fund. The group will launch a similar fund based on the Straits Times Index
here in the third quarter. State Street employs around 1,200 people in its Asian offices, including 30 in
Singapore. At a press conference yesterday, the group's chairman and chief executive David Spina said
services to be rolled out by the Singapore branch will include Singapore dollar deposits as well as foreign
exchange trading facilities.
It will also introduce an electronic trading platform for its client base of institutions and sophisticated investors,
to enable them to execute and settle trades electronically. At the moment the system offers foreign exchange
transaction capabilities, but this is being expanded to include equities and fixed-income securities. The
system will also include tools for risk management and research. Mr Spina pointed to the world's ageing
populations and the increasing emphasis on retirement savings as an impetus for growth. 'We believe the
changes in savings and retirement systems are creating bigger pools of financial assets to be managed,
administered, traded and taken care of.'.
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SM Lee to attend JP Morgan meeting in HK.
158 words
5 June 2001
STBT
English
SENIOR Minister Lee Kuan Yew arrives in Hongkong today to attend the two-day meeting of investment bank
JP Morgan Chase's International Council. From Hongkong, he will go to Suzhou for the Suzhou Industrial
Park's (SIP) celebration ceremony. Trade and Industry Minister BG (NS) George Yeo will accompany him for
the Suzhou leg which will be from June 7 to 9. The SIP, which was launched seven years ago as a flagship
project of Sino-Singapore co-operation, is turning the corner after the initial years of difficulties. Since the
beginning of the year, the Chinese have taken majority control of the project and a ceremony will be held to
effect the changeover of ownership. Mr Lee's next leg, from June 9 to 12, will take him to Shanghai and
Beijing where he will meet Chinese leaders. The Senior Minister will be accompanied by Mrs Lee.
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Smoother sailing for NOL on good fundamentals.
By Ven Sreenivasan.
764 words
5 June 2001
STBT
English
THE SHARES of Neptune Orient Lines have been one of the top performing stocks on the local bourse this
year. The stock has outperformed the Straits Times Index (STI) by a whopping 40 per cent since January and
hit an eight-month high of $1.75 last week. However, it has hit rough waters lately, closing at $1.61 yesterday.
So are we about to see the share price sink again? Not if the group's improving fundamentals and recent
corporate developments mean anything. NOL has come a long way from the days when its debts used to
trigger alarm bells in financial circles. Today, it is hailed as a turnaround story with strong growth prospects.
Even its debt of just over $3 billion is now considered manageable. This is quite a turnaround from just two
years ago when the group was bleeding red ink to the tune of $423.2 million as it struggled to service a
massive debt of $5 billion, part of which was due to its 1997 purchase of US transport giant APL for $1.2
billion.
But just a year later, the group posted net earnings of US$93.8 million. And in FY2000, this leapt 90 per cent
to US$178 million. Stronger earnings: With average charter rates for tankers and bulk carriers expected to
remain firm, this year's earnings are expected to be even stronger. But it would be a mistake to underestimate
the magnitude of the challenges NOL still faces. This is a group which remains highly geared by any account.
At the end of December 2000, it was sitting on some $2.9 billion of debt and faced total liabilities of some
$5.9 billion. The group still faces US$130 million in interest expenses. But on the other hand, its ability to deal
with the debt burden has improved. Its interest cover - a measure of operating profit versus interest costs -
rose to 2.3 times at the end of last year from just 2 times a year earlier. Meanwhile, its gearing has fallen to
1.8 times, from 2.6 times in FY1999. The group's reserves of cash and equivalents have also risen sharply. At
the end of last year, NOL was sitting on cash of some US$587 million, two thirds more than the US$356
million it had at the end of FY1999. But can the growth momentum be sustained? The group's performance
will be helped by falling interest rates, lower effective tax and a strong pick-up in most of its businesses,
especially its logistics operations. Logistics is the key to the group's growth. NOL itself has said it intends to
grow this business, built around APL, fivefold in the next five years. Its recent purchases of Mare Logistik &
Spedition GmbH in April and US-based GATX Logistics were in line with these plans. APL Logistics itself is
expected to chalk up revenues of some US$3 billion by the middle of this decade. But NOL is also unlocking
value by listing some of its subsidiaries. Last week, it announced plans for the listing of its Bermuda-based
subsidiary American Eagle Tankers (AET) on the New York Stock Exchange (NYSE) by the third quarter of
this year. The shares will also be available on the Singapore Exchange (SGX) through the offer of
Singapore depository receipts. Raise awareness: The successful listing of AET could boost NOL's market
capitalisation by some US$300 million, translating into a 46 cent or 28 per cent rise against NOL's current
share price. The listing will also increase awareness of the Singapore-based shipping giant on Wall Street.
This is not the first time NOL has tapped international capital markets. In 1998, it made an international share
placement that was so well received that it increased the issue size to US$500 million from the original
US$300 million. And NOL is expected to continue tapping international capital markets via the listing of more
of its units. Yes, NOL has turned the corner. Today, it rides on much calmer financial waters than it has in the
last five years. While the stock could see some gyrations in sympathy with the broader market, those analysts
who expect the stock to go up to $2.15 to $2.30 some time this year are not being unrealistic. In any case,
this would translate into only about 8 to 10 times its FY2001 earnings, which is still a significant discount to
the market.

Dairy Farm sells a qtr of Franklins' stores.
By Quak Hiang Whai.
353 words
5 June 2001
STBT
English
Aussie authorities approve US$119m purchase by Woolworths
In Hongkong
DAIRY Farm International has agreed to sell 67 of the 282 stores of its Australian subsidiary, Franklins Ltd,
for US$119 million. The food and drugstore retailer of the Jardine Matheson Group said the part sale of the
stores to Woolworths Ltd is the first of a number of transactions anticipated in the group's managed sell-down
to exit its Australian supermarket business. Under the agreement, Woolsworths will buy the stores with a net
carrying value of US$55 million at end-2000 and a net loss of US$11.5 million for last year. Woolsworth will
also acquire associated stock and certain personnel-related and other liabilities. The transaction has received
in-principle clearance from the Australian Competition and Consumer Commission subject to satisfactory
undertakings. These are expected to be finalised shortly and the sale is expected to be completed within six
months. Dairy Farm said the proceeds from the sale would be used to reduce debts in Australia. The surplus
over carrying value related to this transaction is expected to be offset by closure and related costs of the
managed sell-down process. The Singapore-listed company said negotiations are being conducted with
other interested parties for the sale of the remaining stores and further announcements will be made in due
course. Earlier this year, Dairy Farm said it was considering a possible sale of Franklins because it couldn't
boost earnings at the struggling chain. It took a US$129 million charge to reflect a drop in the value of the
business in February. Franklins' market share in Australia's grocery market fell to about 11 per cent this year
from 15 per cent a decade ago. In 2000, it lost US$71 million after sales fell 17 per cent. A poor performance
from Franklins dented Dairy Farm's full-year results last financial year. Profit sank 56 per cent to US$64
million, from US$147 million previously, despite good showings in Singapore, Malaysia and Indonesia.

BG Lee - S'pore to stay open to global players.
By Angela Tan.
589 words
5 June 2001
STBT
English
It will unveil more financial reforms this month, and level the playing field
(SINGAPORE) Singapore is opening up to - rather than sheltering from - global competition, and will unveil
more financial reforms this month, Monetary Authority of Singapore (MAS) chairman Lee Hsien Loong said
yesterday. 'We are now finalising a second banking liberalisation package, which we will announce at the end
of this month,' he said. BG Lee, who is also Singapore's Deputy Prime Minister, was speaking at the
International Monetary Conference luncheon. BG Lee did not give any hints of the latest package to come but
said: 'We have been levelling the playing field for local and foreign competitors and opening up hitherto
closed parts of the financial industry, including domestic banking, insurance and securities trading.' BG Lee,
the chief architect of Singapore's banking reforms, said the tiny city-state has to compete with its neighbours
to gain market share to anchor some of the businesses that are now conducted in global financial centres
such as London and New York. 'In Asia, while Tokyo will always be big and significant, the role of the other
centres is still unclear,' he said. 'Hong Kong, Singapore, Sydney and, in the longer term, Shanghai are in
play.' Each of these places has its advantages and limitations, stemming from their geographic and political
situations as well as regulatory and corporate climates, he said. BG Lee pointed out that competition among
financial centres will not be a zero-sum game in which winner takes all. 'Smaller centres can co-exist with the
mega centres, focusing on different niches and serving different regions,' he said. Regional financial centres,
he noted, provide easy access to funding and hedging opportunities, links to other key centres and markets
with liquidity and reach, especially for emerging economies. While vulnerable to the health of their hinterland,
financial centres are important conduits for funds for corporate restructuring and new investments.
'Singapore's financial centre will be ready to play that role, whether the capital is to be raised through loan
syndication, debt securitisation, private equity or bond issuance.' Singapore, home to some 6,000
multinational corporations, will never have Tokyo's large economic base advantage or Hong Kong's
proximity to China, he said. So the republic will have to compete by providing a world-class regulatory
environment and the most efficient infrastructure for these businesses to use as a platform for Asia. On
staying open to competition, BG Lee noted that Singapore's insurance industry is already completely
opened and the securities industry will be freed from next year. But a more cautious approach has been
taken in banking, where MAS considers it crucial for systemic stability to have strong Singapore banks retain
a significant market share. MAS is now reviewing the privileges extended to foreign banks with qualifying full
bank (QFB) licence. MAS managing director Tharman Shanmugaratnam told BT earlier at the conference
that the central bank will be on schedule with its invitation for applications for two QFB licences in June. A
QFB licence now allows foreign banks to open up to five branches, relocate existing branches, set up off-site
Automated Teller Machines and run a shared-ATM network among themselves. BG Lee said the MAS
approach is to liberalise in a phased manner to inject more competition and spur stronger Singapore banks
to upgrade and compete, not to put off liberalisation while waiting for smaller players to become strong and
confident.
Document stbt000020010716dx65003nx

Greenspan - No inflation pressures in US at this time.
By Angela Tan.
617 words
5 June 2001
STBT
English
(SINGAPORE) US Federal Reserve chairman Alan Greenspan said yesterday he did not see inflationary
pressures in the United States, noting that higher energy prices have yet to percolate down to the economy.
'My own impression is that inflation is not a significant problem at this moment,' Mr Greenspan told delegates
at the International Monetary Conference (IMC) via a satellite link from Washington. 'What we are observing
is a very complex process in which the economy is adjusting,' he said. Mr Greenspan was addressing a
gathering of central bankers, including Willem Guisenberg from the European Central Bank, Jean-Claude
Trichet from France and Yutaka Yamaguchi from Japan on the US energy crisis and its impact on the
economy. Mr Greenspan said higher costs as a result of a tight labour market, higher energy prices and
cyclical slowdown have not exerted significant pressures on prices but on corporate profit margins.
'We don't see inflationary pressures broadening because of changes in aggregate demand,' he said. Mr
Greenspan said higher energy prices contributed partly to slower US economic growth. A heightened
wariness about recent developments reflected a possibility that the responsiveness of the US GDP to energy
prices might escalate in the event of abnormal energy price movements, he said. Energy prices affect the
economy through their effects on the profitability of non-energy corporates, where a major part in the rise in
their total costs between the second quarter of last year and the first quarter this year reflected higher energy
costs. Mr Greenspan noted overall energy prices fell from the first quarter levels, suggesting some easing in
pressures on profit margins. 'We may also be seeing a flattening of retail gasoline prices in the United States
after a short rise over the past couple of years,' he said, noting that spikes in the price of gasoline in the past
had undermined real purchasing power and consumer confidence. Mr Greenspan said US gasoline
inventories were finally beginning to build up again as a result of inflows from Europe due to more attractive
prices in the US. 'As a consequence, wholesale prices are off their peaks and forward prices are down
significantly. But we cannot be certain that the recent spike in gasoline prices in the United States is behind
us,' he cautioned. Since the beginning of the year, the Fed has cut its interest rates six times, shaving off a
total of 250 basis points, from 6 per cent to 3.5 per cent - a rate last seen in May 1994. The Fed is widely
seen as being near the end of its rate cut cycle, with the odds of a further 50 basis point cut very low. But
manufacturing softness, reflected in the May data, keeps the door open for that possibility at the June 27
Federal Open Market Committee (FOMC) meeting despite better-than-expected employment and even
stronger consumer spending. 'The Fed themselves must feel that rates are low enough but may want to
respond to continued weakness in manufacturing. The choice is between 25 and zero. Our view has been no
action,' SG said in its report yesterday. Financial leaders gathered for the two-day conference discussed the
outlook for the euro, the setting up of an Asian Monetary Fund as well as the role of central bankers in a
global slowdown. Many, including Edward George from England, agreed that a central bank's mantra should
revolve around ensuring consistently low inflation and price stability. Malaysia's Zeti Akhtar Aziz criticised the
International Monetary Fund's rescue packages after the 1997-98 Asian crisis as having been 'achieved at a
very high cost'.
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SM on why GIC opts for diversified portfolio.
By Siow Li Sen.
658 words
5 June 2001
STBT
English
He says April decision to balance risks based on his belief in U-shaped recovery for US
(SINGAPORE) Senior Minister Lee Kuan Yew believes the US and other global economies will have a
U-shaped recovery and decided on a conservative diversified portfolio of equities, bonds and cash
instruments to balance the risks for the Government of Singapore Investment Corp (GIC). Mr Lee was
speaking to delegates of the International Monetary Conference at a dinner hosted by the Monetary Authority
of Singapore last night at the Istana. US stocks and longer-term bonds have risen, and are set to lift the GIC
investments with them. As GIC chairman, Mr Lee is briefed every quarter on prospects for the world
economy. And he told the dinner guests he found no consensus among his advisers on the outlook for the
US and global economies. 'In the wake of the technology stock bubble, I asked my staff: 'Were the
economic improvements of the past few years structural or merely cyclical? Can the US economy sustain
higher productivity and higher growth'?' he said. Some staff had argued that a sharp V-shaped rebound
would take place by the second half of this year, while others predicted a protracted L-shaped recovery. 'The
majority of my staff took the middle view that a U-shaped recovery was the more likely outcome, but they
were not in agreement on how long it would be before the economy trends up,' Mr Lee said. 'I adopted the
middle view of a U-shaped recovery and chose a conservative diversified portfolio of equities, bonds and
cash instruments to balance the risks,' he said. He noted that since his deliberations with GIC staff in early
April, US stock prices have recovered smartly. The Dow Jones Industrial Average has bounced back 17 per
cent from their lows and the Nasdaq, 31 per cent. More significantly, long-term interest rates in the US have
shot up. The 10-year Treasury bond yield has moved up to 5.37 per cent from 4.76 per cent, despite the US
Federal Reserve cutting Fed funds rate by another one per cent during the past two months. 'These market
developments are signalling investor expectations of hopes for a U-shaped recovery,' Mr Lee said. 'We hope
that the markets are right - both for the investment returns of GIC and for the recovery of the Asian
economies.' He said the technology stock bubble had to burst to get rid of excesses and provide a healthy
foundation for future growth, but the US has the policy tools to avoid a depression, unlike Japan and East
Asia during the recent crisis. Touching on Asia's vulnerability, given that some countries have not fully
recovered from the 1997 crisis, Mr Lee said he believes another meltdown is unlikely. A drawn-out slowdown
in exports would inflict severe pain, the Senior Minister said. 'But we do not expect a calamity like the 1997
meltdown ... The current mood of pessimism will disperse, and confidence in Asia's prospects will return.' In
the meantime, big economies like China, with strong domestic growth momentum, will be able to offset the
slack in the export sector, with some help, if necessary, from increased government spending. And smaller
players such as Singapore and Hong Kong can adopt policies to keep their costs in line. Indonesia is worst
off and the country is now without an effective central government, Mr Lee said. But other South-east Asian
countries have been able to strengthen their external position because of their strong savings and export
growth. Mr Lee ended on an optimistic note, saying further technological and productivity improvements in
the US will spread to other economies. Asian companies, with their natural cost advantages, should thrive
again, he said. Especially those that have restructured their banks and corporations and sorted out their
political problems.
Document stbt000020010716dx65003nu

Do all economic roads lead back to Washington?
By Lim Say Boon.
1,219 words
4 June 2001
Straits Times
STIMES
English
WHEN American commentators talk about the economy getting better,they are probably right. But perhaps
the more pertinent question is:'Better for whom?' The US markets are looking bullish medium-term, despite
the lack ofresolution of long-term structural problems. Indeed, the bond yield curvehas steepened, suggesting
recovery. And commodity prices have risen,boosting so-called commodity currencies such as the Aussie
dollar. Even gold prices have been strengthening since early April - atleast until the sharp correction of the
past two weeks. Strangely, the yen has also shown some strength of late;notwithstanding the country's sickly
economy. On the other hand, the eurohas collapsed. Closer to our shores, regional economies and markets
continue to bemired in difficulties. Yet, China continues to power ahead, while theTaiwanese economy and
stock market sinks lower. What is one to make of all this?
Like pieces of a jigsaw, the various bits of apparentlycontradictory data tell the story of US global dominance,
which has indeedbecome the country 'too big to fall'. They tell the story of a world lacking in confidence in
anythingother than the greenback and US economic leadership, notwithstanding itseconomy's fundamental
flaws. They also hint of a little-talked-aboutdimension of the current US-China tensions. More on that later.
First, let's get back to my first proposition - that the US economyappears to be getting better. Never mind
that the equities markets lastweek pulled back on news that first-quarter gross domestic product wasrevised
down to 1.3 per cent from 2 per cent. What is more important is that the US economy is not even inrecession
territory yet. And with the Federal Reserve in maximum monetaryexpansion mode, the markets - from
equities to bonds to commodities - areanticipating recovery later this year. But, to be sure, the sceptics have
every reason to pinch themselvesfor reality checks as they watch equities rally. Why? As I have pointed outin
this column enough times, the US has yet to even begin to work off theInternet bubble - complete with its
massive over-investment. Yet, we are already staring at another liquidity-driven rally inthe stock market. And
with that, we will see more spending - and maybeanother investment boom to offset the end of the Internet
boom. There are no prizes for guessing what that is likely to do to theUS current-account deficit, which is
already at levels (4.5 per cent ofGDP) richly deserving of punishment were it not on the account of
UncleSam. But that's the point, it is (on Uncle Sam's account, that is). Have a look at the abysmal
performance of the euro, which has beenplummeting relentlessly since the start of the year when it stood at
about94 US cents (S$1.71), compared to its current level of about 84 US cents.Sure, European economic
growth is decelerating. But mind you, over thefirst quarter, the US economy also looked somewhat shaky.
Despite the weakening US economy, its yawning current-accountdeficit, and a plunging Nasdaq and Dow in
the first quarter, Europe stillsuffered very large net outflows of funds - much of which went to the US. Yes,
notwithstanding the economic ugliness in the US over recentmonths, investors seemed happier to place their
bets on the greenbackrather than the euro. Now, with a liquidity-charged recovery in the pipeline, and withthe
European Central Bank's apparent inability to deliver market-credible,interest-rate manoeuvres to meet the
various European economies' differentneeds, the exodus out of Europe may accelerate. Meanwhile, the yen
has strengthened, which may seem more than alittle odd given the parlous state of the Japanese economy.
Japan has just seen industrial production register a bigger thanexpected contraction of 1.7 per cent for April,
and has been seeingpersistent weakness in industrial production, and business and consumerconfidence.
Indeed, the country appears to be slipping back into recessionagain. But it appears that this yen strength is
simply the flip side ofthe euro's collapse. That is, an unsustainable side effect of US dollarstrength. It has
been suggested that many fund managers had underweightpositions in yen as an offset to long positions in
the euro. Hence, a sell-off in the euro was behind the recent surge in the yen. Indeed, someJapanese
investors may have also sold off their euro positions andrepatriated funds. If, in another age, all roads led to
Rome, it seems that thesedays, all roads lead to Washington. Indeed, where do you think the recentstrength
of the Canadian and Aussie dollar came from? Both the Aussie and the Canadian dollar recovered
quitedramatically in early April. And notwithstanding a sharp correction in theAussie over the past two weeks -
which appears related to a similarpullback in the price of gold - these two commodity currencies are
farstronger today than a mere eight or nine weeks ago. The 'coincidence' of these currencies' strengthening
with therevival of the Nasdaq (in early April) and the Dow (in late March) is,well, more than just a coincidence
if you ask me. Just as the Nasdaq and the Dow appear to have bottomed out inanticipation of US economic
recovery, so too have commodity prices. Indeed,some commodities are starting to rise, taking so-called
commoditycurrencies like the Aussie and the Canadian dollar with them. Once again,all roads lead to
Washington. Well, nearly all roads anyway. One road, however, leads to China. The recent interest among
Singapore investors in so-called China-theme stocks reflects the robustness of the China economy - its
ability todeliver GDP growth in excess of 8 per cent with very little inflation, itsrapid pace of economic
liberalisation, and its continued ability to attractstrong inflows of foreign direct investment. China is not just the
only robust economy left in Asia, it is alsothe only rapidly growing economy of size left in the world today.
And thisis an economy with a mammoth domestic market that is not greatly dependenton the health and
happiness of US consumers for its own well-being. Only a decade into the game, the Chinese already have
the second-largest stock market capitalisation in Asia, after Japan. Sure, theJapanese market's capitalisation
is some four times larger than China's.But have a look at China's growth rate and compare it with Japan's
flat-lined economy. It's not difficult to imagine that it may not take Chinathat long to catch up. At a time when
the US economy is struggling with a structuralproblem - remember that huge current-account deficit - this
must make forinteresting observation in Washington. It is also worth remembering that American
overspending iscurrently being financed by Asian savings. Most of Asia is so reliant on USdemand that it
finances American spending quite gladly. They can buy ourproducts to keep us afloat economically. Ironic,
isn't it? Could this be one dimension of the US' tensions with China? Andwe're not talking about spy-planes or
a visit by a Taiwanese leader or two.We're talking about long-standing US concerns about trade with
China,labour standards and human rights. But that's another story. And I would probably be accused
ofwatching too many conspiracy-theory movies. (The writer is Director of OCBC Investment Research Pte
Ltd. Theviews expressed in this article are his own. He contributed this article toThe Straits Times.).
Document stimes0020010715dx64009c8

Super phone.
By Hau Boon Lai.
631 words
4 June 2001
Straits Times
STIMES
English
The enthusiastic response of the Japanese to 3G mobile phones has not been dampened by a delay in the
launch of the services
TOKYO - Mr Fumio Komori is not a gambling man by nature, but this was one lottery he had really wanted to
win - the right to be a trial userof a third-generation NTT DoCoMo mobile phone. The hotel executive lost. But
this was only to be expected as therewere 147,000 people going after only 4,500 sets. The great interest that
people like Mr Komori, 34, have shown in 3Gmobile phones has not been dampened by NTT DoCoMo's
inability to fulfil itshighly-publicised plan to launch 3G phones and services in May. Customer understanding
has been instrumental in the mobile phonegiant's ability to weather the media and industry criticisms that
surfacedafter it was forced to delay the commercial launch by four months. The new services are now
scheduled for Oct 1. There is no shame, it appears, in being unable to produce on timein the field of
cutting-edge technology. The new 3G mobile phone services are regarded as a breakthroughdevelopment
because users can receive Internet data at 40 times - and sendthem out at six times - the current speed, a
feat which enables them towatch movies and see images of each other as they talk, not to mention thecrystal
clear voice quality that results. But getting the phones to perform as promised is proving to be moredifficult
than previously envisioned. Glitches in a recent model which incorporated some 3G technologyforced the
recall of 230,000 sets and the decision to postpone the launch. In fact, there was a delay even for the trial,
with all 1,200video-enabled trial phones to be given out only around the end of June. The 3,300 sets
distributed last week are meant to test the fasterInternet speed through the phones or via PCs. 'It's better that
they solve all the problems first before they putthem out on sale,' said Mr Komori. The new 3G services will
be the icing on the cake for the i-modetechnology, which offers access to the Internet over mobile phones -
thepioneering equivalent of Singapore's WAP-enabled sets. While both the young and the old have taken
toi-mode like fish towater, 3G mobile phones, with the allure of becoming a super gadget, havecaught the
attention of the younger set more - 78 per cent of the 147,000trial applicants were in their 20s and 30s.
Temporary worker Shinzo Ijima, 24, reasoned that the young do morewith their phones, and faster data
transmission speeds would help them doit more efficiently. People like Mr Ijima are referred to as members of
the 'thumbtribe', a tribute given by commentators awe-struck by their ability to keyin e-mail messages,
website addresses and instructions or play games onmobile phones at a lightning speed. DoCoMo leading
the way TOKYO - Even with a four-month delay, NTT DoCoMo is still set to bethe first in the world to offer
third-generation mobile phone services inOctober. Rival J-Phone of Japan will launch its services in June
2002, alsothe result of software glitches and infrastructure incompatibility. British Telecommunications, said to
have planned to roll out itsversion in Europe this year, has also changed it to next year while the USis even
further behind, in 2005. In Japan, where more people access the Internet through mobilephones than PCs,
the potential of 3G phones is widely acknowledged to betremendous. NTT DoCoMo has the lion's share of
the 35 million-strong mobilephone Internet subscribers with over 23 million i-mode users, whomofficials said
spend an average of 10,000 yen (S$150) a month and close totwo hours a day tinkering around with their
sets.
Document stimes0020010715dx64009bd

Asean studies China trade link.
By William Choong.
365 words
4 June 2001
Straits Times
STIMES
English
Free-trade area enveloping emerging Asian powerhouse and Asean is being researched, PM Goh tells top
bankers
THE possibility of a vast free-trade area linking China and Aseanis currently being studied, even as the
regional grouping copes withpolitical uncertainty within its ranks, says Prime Minister Goh Chok Tong. 'A
study is under way on the feasibility of an ASEAN-China freetrade area,' Mr Goh told high-powered central
bank officials at a dinner inSingapore organised by the International Monetary Conference last night. Earlier
in his speech, he spoke of booming levels of foreigninvestment in China, which have dwarfed foreign
investments into South-eastAsia recently. 'In the short-to medium-term, investments may be diverted
fromSouth-east Asia to China but in the longer term, South-east Asia willbenefit from greater economic
exchanges with China,' he said. His audience included heavyweights such as European Central
Bankpresident Willem Duisenberg and the Bank of England's Sir Edward George. USFederal Reserve
chairman Alan Greenspan is today due to address the two-dayconference via video link from Washington.
Asean - competing with China for both trade and investment dollars-is already working on eliminating tariffs
within the grouping under theAsean Free Trade Area. Within Asean, Singapore is by far the leading
advocate of free-trade agreements, having signed one with New Zealand and exploring similaragreements
with the US, Mexico, Japan and Australia. Free-trade agreements are seen by many analysts as the
next-bestalternative to bigger-scale multilateral trade agreements such as the WorldTrade Organisation
(WTO) which have run into turbulence following theircollapse in Seattle in 1999. China - which is set to join
the WTO soon - presented both achallenge and an opportunity to South-east Asia, Mr Goh said. Also under
study is how East Asia could evolve gradually into anEast Asia Community, said Mr Goh, without giving more
details. Mr Goh reassured his audience that, despite political uncertaintiesacross the East Asian region, such
as in Indonesia, the region would bounceback. 'East Asia might be struggling a little now, but its
fundamentalsare sound. It has immense potential,' he said. 'If East Asia gets its politics right, it will regain its
formerdynamism.'.
Document stimes0020010715dx64009at

Compaq Computer Singapore's latest collaboration with local company UGotACall is making all this a
reality.
465 words
4 June 2001
STBT
English
ELAINE PHUA reports
EMPLOYEES of networked corporations could soon have good reason to ask their bosses to get them the
snazzy, if pricey, Compaq iPAQ pocket PC. In an astute move to boost the wireless connectivity functions of
its handheld, Compaq Computer Singapore collaborated with local company UGotACall (UGAC) to transform
the iPAQ into a combination mobile phone, answering machine, Internet terminal, and fax machine. At the
heart of this technological magic is UGAC's central server, set up within the compound or building, to which
the iPAQs - and other Pocket PCs using Microsoft's Windows CE software - are connected wirelessly. This
server, dubbed the VIA Enterprise Server, integrates with the company's existing data and telecommunica
tion network. The wireless functions are only operable within a reasonable physical distance between server
and user. The development of the iPAQ (with UGAC) is part of Compaq's strategy of redefining the Internet
experience, offering anywhere, anytime Internet access. Unlike other technologies available that connect the
handheld to the voice-centric GSM mobile network, UGAC's technology makes use of Internet Protocol (IP)
technology. This enables the user to communicate handheld-to-telephone, send and receive e-mail, and
receive incoming faxes and voice messages, all through one device. And all this while moving freely about
the office. Imagine chatting via a mobile phone-style earpiece while simultaneously checking e-mail or
browsing the Web on the iPAQ. The technology makes full use of the pocket PC's built-in capabilities. Its
phone book can be used for easy dialing, and an integrated mail box handles voice mail and faxes. Phone
functions include caller ID, which enables the user to see who's calling. The server assigns a personal
number to each iPAQ, which means you can simplify your life by giving colleagues and clients a single
number for the office telephone, mobile phone, voice mail and fax machine. Using IP Follow-Me technology,
the personal VIA number remains the same whether the user is in the Bukit Batok office or the Johor Baru
one - assuming, of course, that VIA servers are installed in both. Installing VIA technology across regional
offices has another payoff. Calls between employees are fielded through the IP servers, which means
inter-regional or even international calls could cost little more than standard local calls. A VIA server that can
handle up to 1,00 users will cost around $40, 000, UGAC officials said. UGAC is one of many local
companies under the wing of Compaq's Infocomm Local Industry Upgrading Programme (iLIUP).
Spearheaded by the Infocomm Development Authority, the focus of the programme is to foster productive
partnerships between local Infocomm companies and leading multinational companies.
Document stbt000020010716dx64003nt

SITF launches chapter to promote eLearning industry.
190 words
4 June 2001
STBT
English
THE Singapore Information Technology Foundation (SITF) has launched the SITF eLearning Chapter to
promote the local eLearning industry. Some of the chapter's initiatives include an eLearning Network for
members and an eLearning portal that will provide information aggregated from its members. Infocomm
Development Authority of Singapore (IDA) assistant chief executive Kaizad Heerjee said IDA strongly
supported the SITF move. 'We want to encourage the development of e-learning and adoption of e-learning
capabilities to corporations and communities in the key sectors of the economy,' Dr Herjee said. The chapter
has about 25 member companies, and hopes to increase membership to 80 by the end of the year. 'We
would like a good mix of local and multinational companies,' said chairman of the eLearning Chapter Hee Joh
Liang. Though no government agencies will be included as members, Mr Hee said there would be 'active
roundtable discussion' with the government.
In the pipeline is also a competency centre, to be ready by the end of this year. The competency centre aims
to ensure a certain level of quality within the e-learning industry.
Document stbt000020010716dx64003ns

New investment underlines EMC's commitment to the region.
By Kenneth James.
1,054 words
4 June 2001
STBT
English
Top officials are confident that the milepost of US$1 billion in Asia-Pac/Japan revenues will be comfortably
surpassed this year
THE global slowdown plays no favourites, and even high-flying EMC Corp is feeling the drag. But the
information storage leader's momentum remains strong, and nowhere is it stronger than in Asia, its top
executives say. Underlining the company's commitment to the region, EMC executive chairman Michael C
Ruettgers was in Tokyo recently to announce new investments. These include a Development Centre in
Japan that will incorporate a Demo Centre, Competency Centre and Solution Lab; and a Software
Applications Centre to be opened this year in Sydney. The new facilities constitute additional investment of
over US$20 million. This is on top of some US$100 million invested in people and facilities in the last three
years, senior EMC executives told BizIT. Mr Ruettgers, the architect of EMC's phenomenal success through
the '90s, told BizIT in an interview: 'The Asia-Pacific has traditionally been pretty important for us.' He notes
that his company had kept faith in the region even when times were tough here: 'We've continued to invest.
We did so in the Asian crisis (of 1997-98). We've continued to invest in Japan even though GDP growth here
has been almost zero. 'In the Asia-Pacific, we've been investing in China (where operations only started in
2000), we have five sales offices in China itself. And of course we've been in Singapore for a long time, and
in Australia.' That seed is bearing phenomenal fruit now. Mr Ruettgers notes that 'in Asia, investment (by
companies) in information storage has been accelerating, so that is the fastest growing geography in the
world for this kind of investment'. And that has spelt windfall returns for EMC. The company's
Asia-Pacific/Japan (AP/J) revenues for the first quarter of 2001 grew 104 per cent to US$279 million, making
it four successive quarters of triple-digit growth. Heady stuff. But sustaining triple-digit growth in the region
looks unlikely now, as uncertainty in the US economy triggers a dramatic slowdown in corporate spending.
Even so, Mr Ruettgers and his regional lieutenants remain confident that a major milepost - US$1 billion in
AP/J revenues - will be comfortably passed this year. EMC executives reveal that EMC Asia-Pacific/Japan
accounted for US$887 million in revenue, or 10 per cent of global revenue, in 2000. Simply attaining the
revised global target of 20 per cent growth would take AP/J revenues past the target. But regional executives
are clearly aiming much higher, although they remain tight-lipped when asked for more specific numbers.
What is clear, though, is that the company still sees strong growth. Stephen Faris, vice-president of
marketing, EMC Asia-Pacific, told BizIT in Tokyo that the company's introduction of the CLARiiON series of
mid-range information storage products 'dramatically opens up the middle-tier market' for EMC. The company
used to target only the largest enterprises with their powerful storage systems. The CLARiiON line, which it
acquired when it bought Data General Corp in 1999, gives it entry into the bourgeoning market of
medium-sized companies with growing amounts of information to store and process. Mr Faris says the
CLARiiON range is already making a significant impact in the region. 'We're looking at two kinds of
opportunities,' he says, 'mid-tier operations of large firms who already are clients of EMC; and medium-sized
companies in the Asia-Pacific. When we added CLARiiON, it increased product demand so dramatically that
there was no way our sales people could go after all that.' The result was a 'dramatic increase' in distribution
channels in the South Asia region within the past one year, from about 10 to more than 50 channels. Overall,
the regional operations have added about 1,000 people, he says. EMC says the game plan is still to grow
headcount by 40 per cent this year, from 1,350 in January 2001. Singapore, which hosts the Training Centre
and is the regional headquarters for several operations, doubled its staff in 2000 and plans to increase the
workforce further, to 200 people. For Mr Ruettgers there is no question that information storage will remain a
key growth area. In a press conference in Tokyo, he pointed out that the amount of information is now
doubling every year, and the challenges of storing this information for easy access is a mind-boggling one.
'Companies are asking, how do I cope with this doubling of information each year? How do I cope with the
shortage of IT professionals? The demand for information is doubling every year, how do I make sure that the
cost of managing it isn't doubling every year?' He cited a study by International Data Corp Japan, showing
that the increase in information is growing faster than IT workers' ability to process it. 'Information is growing
80 per cent a year, and just to keep up with that growth the productivity of workers has to grow by 60 per
cent. We believe without the proper software tools it's impossible to do that.' And that's why EMC is investing
so much money in software, he says, pointing out that 75 per cent of its research and development budget is
allocated to software development. It's yet another example of the company's ability to anticipate key trends.

And that's paying dividends. A recent report tending its market share lead in storage port, from IDC, finds
EMC by Gartner Dataquest shows EMC exmanagement software. Another new reincreasing its external
storage market share in the Asia-Pacific region, excluding Japan, to 24 per cent. Mike Ruettgers isn't
complacent, observing that fast-growing markets always attract competitors. But boy is he confident. EMC
specialises in storage and knows the technology and market well, he points out. A golf buff who has rubbed
shoulders with golf's greatest through EMC's sponsorship of the World Golf Championships EMC World Cup,
he comments with a smile: 'It's more likely that I will beat Tiger Woods at golf than some of those companies
beat EMC at storage.'.
Document stbt000020010716dx64003nr

Tapping the power of wireless Internet.
935 words
4 June 2001
STBT
English
Mobile Net can live up to its promise if we understand its strengths and weaknesses. ANDREW WEE finds
out more from a PWC report
YOU'RE at a business meeting that's running late, with your Singapore Airlines flight to London due to leave
in an hour. The airline sends a message to your Palm handheld computer: 'Flight SQ230 has been delayed
for two hours', giving you adequate time to conclude the meeting. As you enter Changi Airport's Terminal
Two, the airport's wireless network registers your presence and asks for confirmation before performing an
electronic check-in. With 15 minutes to spare before flight-boarding begins, you fire up your Palm to update
your travel expenses using an online expense manager. Then you visit an online retailer's website to order a
birthday gift for a niece who lives in Hong Kong. Prior to boarding the plane, Singapore Airlines sends an
e-boarding pass to your Palm. As you board the plane, the flight attendant scans your pass, which appears
as a barcode on your computer's LCD screen. The attendant greets you by name and wishes you a pleasant
flight. Those are some of the exciting possibilities of mobile Internet, according to a new
PricewaterhouseCoopers (PWC) report 'Technology Forecast: 2001-2003, mobile Internet: unleashing the
power of wireless'. 'We've been growing up in the world of PCs connected to the wired Internet which has
been wonderful, but we're going to have to do some rethinking for wireless Internet,' said David King, PWC's
director for its technology centre in Menlo Park, California. 'Wireless client devices and the wireless network
are going to be different. It'll be slower, intermittent and sometimes there won't be any network coverage at
all. We believe the wireless Internet will succeed, driven by killer applications which accentuate its strengths
and avoid its limitations.' Among mobile Internet's strengths: Immediate access: wireless devices are
designed for 'instant on' capability; Use of niche time: users can be more productive while waiting, travelling
on public transport or other idle time; An immediate presence: these light-weight devices can easily be carried
and will usually be with you, compared to a desktop computer; Personalisation: because you are likely to be
the sole user of the device, user interfaces and applications will be tailored to your needs; and
Presence-based services: where situation-relevant information is pushed to you, such as the location of
empty parking spaces in a car park According to the International Data Corp (IDC), the Asia-Pacific region
excluding Japan will see 142 million wireless Internet users by 2004 - compared to just five million in 2000,
and 20 million in 2001. IDC's latest report says m-commerce (mobile commerce) revenue in the region will
soar to US$36 billion (S$65.1 billion) by 2004 - against under US$500 million in 2000, and about US$2 billion
in 2001. However, according to PWC, wireless Internet today has not been the stunning success as had been
hoped for. According to Mr King, 'the major complaint for consumers is, you push a button on your cellular
phone to access the Internet and nothing happens for so long you think your phone is broken'. The problem
with today's circuit-switched telephone networks is that wireless devices have to connect to a mobile phone
base station, which then connects to the Internet. This typically takes between six and 30 seconds. Wireless
application protocol (WAP), which was designed to provide Web-like services on mobile devices, has taken a
lot of flak because of concerns about its performance and usability. However, these problems are primarily
due to the telecom infrastructure, Mr King added. 'All sorts of problems have been blamed on WAP, but the
latency (delay) is in the 2G (second generation) telecom infrastructure and has nothing to do with WAP.' To
deal with the limitations of 2G networks, telcos could consider upgrading their networks to accommodate
these services. 'Is 2.5G (intermediate technology) going to make a difference or should we wait till 3G (third
generation)? We put our money on 2.5G. It comes with packet switching, low latencies and higher bandwidth
... there's no need to wait for 3G.' Telcos are also likely to have an easier time upgrading to 2.5G, compared
to 3G. 'Telcos around the world already have 2G mobile phone base stations in place and you can upgrade to
2.5G by adding a little more hardware and software.' 'With 3G you have to replace the base station and other
parts of the infrastructure. Globally we would expect most 3G networks to roll out after 2003. You don't have
to wait for 3G, 2.5G is rolling out quickly and it will be the platform within and beyond the 2003 forecast period
in our report,' Mr King added. In the region, countries which could deploy 2.5G networks in the next 12
months include Singapore, Hong Kong, Taiwan, Japan and Korea, according to Ajit Rangnekar, PWC's Hong
Kong-based head of information, communication and entertainment practice in East Asia. According to Mr
Rangnekar: 'Scandinavia and Japan are generally deemed to be cutting edge for mobile Internet adoption,
but Asia is not very far behind.' 'For the first time in technology's history, we're not the laggards, but almost up
there, and that's a huge difference,' Mr Rangnekar said, adding that 'Asian governments, certainly in Hong
Kong and Singapore, are very aware of this and will work hard to preserve that edge.'.

Document stbt000020010716dx64003no

IT Takes - Network AP vice-president .
364 words
4 June 2001
STBT
English
US-BASED security and availability solutions provider Network Associates has named Ang Miah Boon
Asia-Pacific vice-president and managing director for its regional operations. Previously, Mr Ang was
managing director of IBM's Singapore and Brunei operations.
New Sonus appointments
US-BASED voice infrastructure solutions provider Sonus Networks has appointed Dave Fassnacht as its
Asia-Pacific technical director. He was previously director of systems engineering at Lucent Technologies.
Sonus also appointed Chris Irving and Khoo Boo Leng as senior network consultants.
Avi-Tech, Eles partnership
SINGAPORE-BASED AVI-Tech Electronics Pte Ltd has signed an agreement with Italy's Eles Semiconductor
Equipment SpA, a supplier of reliability test solutions, to provide the semiconductor industry with test
specification and development equipment, board supply and test execution for new products and processes.
Free IBM access for Linux developers US-BASED company IBM has announced Linux Community
Development System, a programme to provide developers with technical resources to create Linux software
for the IBM eServer zSeries mainframe. Developers interested in the programme can visit www.ibm.com/linux.
Symix now known as Frontstep
US-BASED Symix Systems Asia Pacific, which provides business systems for mid-sized distributors and
manufacturers, has changed its name to Frontstep Asia Pacific. The company has also appointed Joseph Ho
as vice-president of South Asia.
Ensim's Singapore HQ
US-BASED automation provider Ensim Corporation, whose flagship product is ServerXchange, has
established its Asia-Pacific headquarters in Singapore. It will be headed by Effendy Shahul-Hamid, the
region's managing director.
New role for Ernst & Young CAP Gemini Ernst & Young has been invited to be the strategic partner for the
Singapore Innovation Awards, to be held in November. It will work with Economic Development Board,
Ministry of Finance, Productivity and Standards Board and Public Services Division to co-develop a
framework for award categories and assessment criteria, as well as help assess candidates.
Enterprise Security Roadshow
THE Enterprise Security Roadshow will be held tomorrow at the Mandarin Singapore. It is organised by
Pacific Technology. For details, e-mail es2001@pt.com.sg, or visit www.pt.com.sg.Compiled by Trina Foo .
Document stbt000020010716dx64003nm

Will t-commerce take off in Singapore?
By Andrew Wee.
615 words
4 June 2001
STBT
English
With digital TV and a little imagination, opportunities abound to take product placement to new interactive
levels
WITH competition heating up among television broadcasters here, spurred by the entry of SPH Mediaworks'
TV Works and Channel U stations, media companies here will be looking at boosting existing revenue
streams and creating new business streams. One answer could lie in t-commerce, or television commerce
using the interactive capability of new digital television. The potential is considerable, if forecasts by
London-based Ovum Research are anything to go by. According to Ovum forecasts, digital television
connections worldwide are expected to grow from 62 million this year to 350 million in 2006, creating a
plethora of opportunities for media and Internet companies. Even more enticing are the forecasts that
t-commerce revenue from digital television (DTV) will be worth US$45 billion by 2005. This is in addition to
US$60 billion in revenue from other services like pay-TV, gaming, education and information, making a
US$100 billion market less. than five years from now. The million-dollar question is: Will t-commerce take off
here? The Singapore Broadcasting Authority announced in December that Singapore would be moving to
digital broadcasting from the current analogue broadcasts. Industry players did not appear to be too
optimistic over the news. They estimate that widespread DTV adoption could be several years away in
Singapore. Price would be an important factor. According to Japanese reports, DTV sets could cost about 10
times more than conventional analogue TV sets. However, viewers who want to use their existing TV set can
buy a set-top box which costs about $500 per unit; sending e-mail and engaging in t-commerce will require a
set-top box with API (advanced programming interface), which will cost slightly more. More importantly, given
Singapore's high penetration of mobile phones, industry players here could offer compelling t-commerce
offerings through tie-ups between broadcasters and telecoms operators. They could package hybrid forms of
t-commerce, without needing a DTV network. For example, Mediaworks could hold real-time on-air auctions
where bidders could send in their bids using SMS or WAP (wireless application protocol). Payment for goods
and services would appear on the user's phone bill. While technology will create new revenue streams, it will
also cause some rethinking of business models. New electronic products called personal video recorders
(PVRs) incorporate hard disks and provide the ability to fast forward through commercials using pre-stored
footage stored on the hard disk. This would mean that advertisers would have to look beyond traditional TV
advertising models based on commercials interspaced between 15-minute blocks of programming. Product
placement could be a key strategy to boost t-commerce. In the reality TV series Survivor, product placements
for Bud Light beer, Target department store, Pontiac's Aztek SUV (sport utility vehicle) and Doritos chips
made their appearance during 'reward challenges'. Fed to hungry contestants, the Doritos were downed like
there was no tomorrow. The new TV Works sitcom, Ah Girl, featuring babe Cynthia Lee as a
Singlish-spewing Ah Lian working in a mobile phone shop, provides adequate opportunities for retailers to
push Nokia mobile phones, Oakley sunglasses and Razor skate scooters, especially if the series is deemed
to be 'cool' by the jet-set. But product placement is still a largely static strategy. With digital TV and a little
imagination, opportunities abound to take product placement to new interactive levels. And of course there is
the ultimate interactive tool - what better way to order your merchandise than with a mobile phone? The writer
is a BT journalist.
Document stbt000020010716dx64003nl

Huge opportunities in mobile Internet.
By Andy Quak.
659 words
4 June 2001
STBT
English
Government, telcos, handset makers, wireless content and service providers must work together to help it
succeed in Asia
FOR any WAP (Wireless Application Protocol) applications to be useful, it has to do one of two things - either
save time, or kill time. However, as of now, disillusioned customers complain about connection and data
transmission speeds, as well as about content and services available on mobile phones. Despite that, there is
phenomenal growth in mobile phone sales in the Asia-Pacific region. In China, the mobile subscriber base
doubled to 85 million last year, generating a 42 per cent jump in telco service revenue. Japan had 30.7 million
mobile Internet users, as at January 2001. Singapore's mobile subscriber base rose 66 per cent to 2.44
million in March 2000, and to 2.64 million in Feb 2001. The number of mobile devices accessing the Internet
here is estimated to be 180,000, but should increase substantially this year with the launch of new WAP and
GPRS (General Packet Radio Services) phones. Asian telcos in Singapore, Hong Kong, Taiwan, Australia,
Malaysia, Thailand, and the Philippines began offering WAP services last year. Unfortunately, the many
un-met promises created a 'WAPathy' among end-users and held back WAP taking off. The issues include
high airtime costs, slow GSM connect speeds (9.6 kbps or 14.4 kbps), the phone's small display, and lack of
exciting content and services. That's crucial in the WAP world, as South Korea's experience proves. That
market has more than 10 million WAP phones, and was helped by superior (but phone-dependent) content
and services including games, animated logos, daily cartoons, ringtones, greeting cards, karaoke, and WAP
phones with 10-line screens. In Singapore, SingTel launched its GPRS network late last year. GPRS offers
an always-on feature that comes close to a mobile broadband LAN environment and users are charged only
on the data transmitted. These features helped Japan's widespread adoption of the iMode system. In
Singapore, telcos and mobile phone operators have put together content and services for the new GPRS
phones. These include online downloadable and offline WAP and SMS games, animated logos, picture
messages, and so on. Users can process content and play games offline without having to pay airtime, once
they have downloaded them. Merchants can take advantage of GPRS' high data speed to launch wireless
promotions, communications, consumer polls, games and interactive media, including location-enabled
marketing. Another huge opportunity is SMS (short messaging service). A massive 50 billion messages were
sent over the world's GSM networks in the first three months of 2001; 90 per cent of those were peer-to-peer.
Clearly, the huge potential in SMS VAS (Value-Added Services) remains unexploited. SMS is the migration
path for WAP and GPRS. GPRS' fast data speed will not only enhance WAP, but will also enable SMS to
become MMS (Multimedia Message Service) and deliver picture messages and mobile multimedia for all
content types - picture, text, data, audio and video clips. A recent Morgan Stanley report says that in Asia,
'mobile Internet may be the only form of Internet that some consumers will ever use.' Thus, every important
consumer information and enterprise report, or key summaries or action items that consumers and
enterprises may find useful to deliver to the desktop or notebook can now be delivered - with good wireless
interface design - to any mobile device using WAP, SMS and voice. Many companies understand that it
makes business sense to extend 'last mile connectivity' to their employees and customers at a fraction of
the cost of existing IT systems. However, before that, government, telcos, handset makers, and wireless
content and service providers need to work a lot closer to grow the industry and offer businesses and
consumers good value services and make the mobile Internet work in Asia. The writer is CEO, AirGateway
Pte Ltd .
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Fortunes of blue chips and penny stocks set to realign.
By R Sivanithy.
662 words
4 June 2001
STBT
English
OVER the past two weeks, it'd be fair to say that blue chips and second-liners have parted ways somewhat,
responding differently to news and developments. As Wall Street stalled and entered a kind of investment
limbo - leaving analysts wondering just how bad things were - Singapore blue chips followed suit, ending the
rise which they saw towards the end of April and early May. This brought penny stocks to the fore. They were
a hive of activity, playing catch-up with their bigger brethren as house traders and various other parties
peddled the idea that these second-liners were grossly undervalued. Despite the divergence, both blue chips
and second-liners share a common thread - an apparent underlying support led to growing confidence that a
total market collapse is much less likely than say two months ago. But just how well-placed is this
confidence?
It's a tough question to answer because based on last week's performance it appears as if the fortunes of the
two groups of stocks could well start to realign once again. Signs of exhaustion in the second line emerged in
the latter half of last week, indicating the party may be over for now - hardly surprising as a significant portion
of the business done in the penny stocks was generated by stockists and house traders. Without the benefit
of meaningful retail input, it's not possible for prices to keep recovering. After all, how long can house traders
keep playing with house traders or syndicates with syndicates? As for blue chips, they look set to continue
tracking events in the US while hanging onto every word or assessment of how the economy is doing. The
good news in this regard is that last Friday's US jobs report suggested the American economy may be
recovering. More good news came from the bond market, where Treasuries enjoyed a three-day rally as
inflationary worries subsided. The trade-off is that this may reduce the need for more interest-rate cuts. The
impact will be alleviated if corporate earnings show promise. Unfortunately, this doesn't seem likely, at least
for the tech sector. Morgan Stanley on May 30 issued a sobering assessment of the semiconductor industry,
saying essentially things should get worse before they get any better. Analyst Mark Edelstone said inventory
levels are too high and demand is still very weak. He pointed out that this will soon mean manufacturers
having to slash prices more aggressively and thus depressing margins. Mr Edelstone wasn't the only Morgan
Stanley analyst to have given a bearish opinion in the past week - chief economist Stephen Roach was
quoted in a Barron's interview in its May 28 issue as saying the US is now in for an extended bout of trouble.
Pointing out that the blow-out on Nasdaq 'was not a financial bubble that can be neatly excised from the
system without collateral damage on the real economy', Mr Roach said he expects the 'movie to now start
playing in reverse' as people come to understand that the stock market is not a permanent source of savings
as they were led to believe. In essence, Mr Roach believes a process of 'mean reversion' will have to take
place, towards more sustainable levels of personal savings rates, current account imbalances and so forth.
As for the stock market, Mr Roach says expectations of 15 per cent earnings growth for the S&P 500 are
now in trouble and that those who hope for a V-shaped recovery will be disappointed. Contrasting this
slowdown with the one caused by the 1998 Asian crisis, Mr Roach said 'this one is made in America and not
Asia'. 'It deals with the excesses of a bubble economy and unlike '98 when America was the engine that
pulled the world out, this time the engine is off the tracks.'.
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US electronics orders down 4.4%.
By David Boey.
394 words
4 June 2001
STBT
English
NEW orders reported by US electronics firms dipped 4.4 per cent year-on-year to US$10.3 billion in April.
And unfilled orders for the same month rose by 0.1 per cent year-on-year to US$18.6 billion, figures from the
United States Commerce Department's revamped website for leading economic indicators show. Also
indicative of a slower month for US electronics firms in April were higher inventories - indicating more of the
goods produced were left unsold - and marginally higher shipments recorded by electronics firms. Preliminary
figures from the US Commerce Department for April show that shipments of electronics goods inched up by
0.3 per cent while inventories of electronics goods climbed 9.6 per cent. In dollar terms, shipments of US
electronics goods rose to US$10.5 billion while inventories rose to US$16.3 billion. The US Census Bureau
makes all year-on-year comparisons in non-seasonally adjusted terms, whereas month-on-month
comparisons use seasonally adjusted figures.
In seasonally adjusted month-on-month terms: New orders rose 0.3 per cent to US$10.8 billion. Unfilled
orders for electronic components fell 1.8 per cent to US$18.4 billion. Shipments of electronic components
shed 1.5 per cent to US$11.1 billion. Inventories dipped 0.3 per cent to US$16 billion. US orders of electronic
components are seen as a three to six-month leading indicator of Singapore's electronics output. Such
figures are tracked by market watchers as the US absorbs about a quarter of Singapore's non-oil domestic
exports. Apart from new orders, analysts also monitor inventories, unfilled orders and the dollar value of
shipments. They use these numbers to measure the health of the electronics sector. Under the revamped
website - www. census.gov - the US Commerce Department's tables for 'Manufacturers' Shipments and New
Orders' now class electronics-related economic activities under a new header, 'Electrical equipment,
appliances and components'. This category replaces several categories under the old listing that tracked the
electronics sector. These listings were more detailed (albeit somewhat esoteric) and included sub-items like
'electrical lighting and wiring equipment', 'household audio and video equipment' and 'household appliances'.
Data on this site is compiled by the department's Census Bureau and is updated monthly.
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Global body to tackle food safety standards.
By Corinne Kerk.
358 words
4 June 2001
STBT
English
Group of food firms forms task force to develop key elements as benchmark
IN a bid to prevent animal and food diseases from being passed to consumers, an international organisation
of powerful food companies is developing key elements against which existing food safety standards can be
benchmarked. Established in 1953, CIES (The Food Business Forum), has a membership of 260 major food
retailing companies from 48 countries and an equal number of food manufacturers. These include Coca-Cola,
Carrefour, WalMart, Tesco, Dairy Farm, Royal Ahol and NTUC FairPrice. CIES - headquartered in Paris with
offices in Singapore, Tokyo and Washington - intends to strengthen consumer confidence and minimise food
safety risk by making supplier auditing results comparable. It has formed a Global Food Safety Initiative Task
Force comprising 40 members representing over 65 per cent of worldwide food retail revenue. The task force
has so far identified the key elements as quality management systems, good practices in agriculture,
manufacturing and distribution, hazard analysis and critical control points. The final set of key elements will
be published in September after the first CIES International Food Safety Conference, to be held in Geneva.
This will be followed by formal endorsement procedures, an audit protocol, a guidance document for
certification bodies and a general organisational framework. 'The objective is for people to learn about global
food safety so that if any problems develop in the region, we can have a system to alert all food providers,'
says Lawrence Koh, regional manager of CIES, Asia-Pacific. He admits that in order for the group's efforts to
have teeth, its members will have to lobby government bodies for support and work with them. There will also
be a need for cooperation between governments and the worldwide food sector, as well as consumer
education. In Singapore, CIES is holding a one-day seminar on Wednesday at Sial Asia - one of the world's
top food trade events. The seminar will look at food safety awareness in Asia-Pacific, global food safety
initiatives and food safety regulations in Australia - a country fairly advanced in this area.
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VCs defend their track record on due diligence.
By Tang Weng Fai.
563 words
4 June 2001
STBT
English
Dennis Lee case an isolated incident, level of transparency adequate, they say
THE faking of credentials by elipva Ltd's co-founder and former chief technology officer Dennis Lee which led
to his dismissal is an isolated incident, members of the local venture capital community said in defending the
community's track record of due diligence. While acknowledging shock over the case, they maintain that the
standard of due diligence done in Singapore by the VC community passes muster. Most also said the level
of transparency here seems adequate and that the due diligence process is sufficient to separate the real
players from the rest. elipva is an e-business start-up funded by Singapore Technologies Telemedia. Mr
Lee was fired after a company probe - following BT's uncovering of the fraud - found him having falsified most
of his credentials. Thomas Yeoh, managing director at iAsia Alliance Capital Pte Ltd, said: 'Due diligence
continues to be a top priority for us here. We make calls to references and try to contact people who're not
even listed as references. Basically, it's pretty difficult to make five guys say the same thing and gel; it's quite
easy to find out.' He added that due to the typically smaller deal sizes in Singapore and in Asia in general, it
is important to balance the need for caution with investing too much effort in a small deal. 'Because of the
typically smaller deals we do here, it's not worth it to hire private eyes to track the people when it's just some
$2-$3 million deal; we can just walk away if we don't feel comfortable - there will be other deals,' he said. On
finding cases of fraud in the processes of due diligence, Mr Yeoh said: 'We've had instances of people
stretching the truth but not so far as what Dennis Lee has done. The guy's basically living in some sort of
parallel universe of his own, hoping nobody will find out.' 'The elipva case is an extreme one. In general I
haven't come across people who have misrepresented or lied about their backgrounds,' said AsiaTech
Ventures Singapore's managing director Nikunj Jinshi. Defending the track record of VCs here, he said: 'I
think our due diligence and background checks have always been quite sound and I am not fearful of finding
skeletons in the closet.' However, he warned against over complacency. 'What we did in one case is actually
hire a private investigation firm to find out about the backgrounds of founders we were not so sure about. As
a result, we actually terminated the relationship and that process took two weeks.' At UOB Venture
Management Pte Ltd, senior investment manager Andrew Yang said: 'Our due diligence process has been
very stringent in the first place. If anything, there appears to be more willingness by founders now to tone
down their claims when asked to clarify.' Mr Yang also pointed out that in the event of fraud after a deal has
been signed, there are avenues for recourse. 'In Singapore, protection against fraud can be addressed by
way of stringent warranties to be given by founders and key shareholders in investment documentation. If
fraud is detected, investors can have legal recourse to seek remedy.'.
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Regional cooperation between China, Japan set to strengthen.
From Anthony Rowley In Hong Kong.
573 words
4 June 2001
STBT
English
Analysts see this as a way to counter political instability in S-E Asia
EFFORTS to weld closer cooperation between China and Japan in the economic and diplomatic spheres
appear likely to gain momentum with the advent of new administrations in both countries, and these could
form the basis for countering the political instability currently afflicting parts of South-east Asia. This is the
view of some senior government officials and analysts who say that willingness to cooperate is growing at a
time when external resistance to Asian cooperation is diminishing. Japanese Foreign Minister Makiko
Tanaka's recent visit to China - ahead of any high-level contact with US government officials - has raised
speculation that Tokyo will give high priority to China ties under Prime Minister Junichiro Koizumi's recently
installed administration. China's Deputy Finance Minister Jin Liqun, meanwhile, pledged in Hong Kong last
week that Beijing would throw its full weight behind regional economic and monetary cooperation initiatives.
Some private analysts too see signs of a growing imperative that will force Asian countries to work together
more closely in the near future, especially in the economic sphere. 'East Asia does not have much choice. If
it does not choose greater cooperation, it will lose out in both trade and investment,' declared Andy Xie,
managing director and chief economist, Asia, at Morgan Stanley Dean Witter during the Institute of
International Finance meeting in Hong Kong last week. International Monetary Fund managing director Horst
Kohler also added his support. 'In parallel with initiatives to strengthen the international financial system, the
IMF has increased support for regional cooperation and integration,' he noted in Hong Kong. He saw this as a
'way to promote strong policies and institutions in neighbouring countries' and as a 'stepping stone towards
successful integration into global markets'. The Chinese deputy finance minister's strong endorsement for
regional cooperation was seen as especially significant at a time when China is viewed as an emerging major
economic power capable of challenging other regional nations, including Japan. China's impending entry into
the World Trade Organization is also seen as threatening some of its Asian neighbours as Chinese products
gain increased access to markets around the world and as even greater investment flows to China are
facilitated. Mr Jin stressed during the Hong Kong meeting, however, that China will not seek to promote its
own economic interests above those of its Asian neighbours but will seek every opportunity to promote
'bilateral, regional and global cooperation'. 'I personally believe that regional cooperation is essential,' Mr Jin
said, insisting that China's WTO accession would produce a 'bigger economic pie' for all and does not
represent a 'zero sum game'. Concerns were raised at the Hong Kong meeting that growing political
instability in parts of East Asia could threaten the region's attraction as a centre for foreign trade and
investment. Victor Chu, chairman of First Eastern Investment Group, pointed to the recent advent of 'new
administrations' in Japan, the Philippines, Taiwan and Thailand and to what he called 'succession issues' in
Malaysia, Singapore and China. Outside investors would want to see proof of a 'consistent policies'
indicating regional stability, he argued. In the light of these problems, some see stronger regional cooperation
as the only way to prevent political instability and possibly growing nationalisms developing in individual East
Asian countries.
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Ritz-Carlton picks Singaporean to spearhead marketing of NY hotels.
By Catherine Ong In New York.
1,522 words
4 June 2001
STBT
English
ALL the talk about foreign talent in Singapore may leave one with the impression that talent only flows in one
direction - from the West to the East. The Ritz-Carlton, a leading hotel group in the US, knows this isn't so.
When the group was looking for someone to spearhead the marketing of two hotels under construction in
New York, it didn't turn to a native New Yorker with local knowledge and a fat Rolodex of important names in
the US hospitality industry. It picked Arthur Kiong, a Singaporean who has never lived and worked in
America before his arrival in the city last July. Not surprisingly, the decision didn't happen without some fuss.
Locals are naturally sceptical about hiring outsiders and wonder why someone from a different social culture
and business context can do a better job than them. The same questions Singaporeans asked when they
hear that John Olds was joining DBS Bank or Flemming Jacobs was taking over at NOL, were asked about
Mr Kiong in New York.
Jean Cohen, regional vice-president of The Ritz-Carlton, said: 'The senior vice-president of marketing had
suggested Arthur and the first reaction was, he does not know anything about New York.' The hotels' owner,
New York-based property developer, Millennium Partners, too, baulked at the idea of hiring someone who
knows as much about the Big Apple as the average tourist peering out of the 22-storey crown of the Statute
of Liberty. 'We debated within the group,' Ms Cohen added. 'Should we go local and have someone who's an
expert on New York, or should we go for someone who doesn't know New York but has pure, raw talent?'
The hotel's senior management decided to go for talent because, in Ms Cohen's words, 'you can teach
somebody about New York, but you can't teach talent'. Mr Kiong came with solid credentials. The cherubic
41-year-old was the director of marketing for the immensely successful Ritz-Carlton hotel in Singapore
before relocating to New York. During his tenure, from 1995 to 2000, the Marina Square hotel not only
survived the lean years spanning the Asian financial crisis, it established itself as one of the most desirable
deluxe hotels in Singapore and Asia. In his five years with The Ritz-Carlton, Mr Kiong quickly built up a
reputation for possessing a keen marketing acumen and a creative approach to solving problems, according
to Ms Cohen. His communication skills, which he deployed to great advantage in his marketing job, were
honed in the early 1980s when he was a young broadcaster and producer at the radio station of the
Singapore Broadcasting Corporation. After running down a few years spinning records and reading the
news, he ventured into the hotel trade, working first with the Westin chain and later, The Mandarin Oriental in
Hongkong. Moving from Singapore, a secondary city in the global travel and leisure industry, to New York, a
tourist hub, appeared at first to be an overwhelming experience. This is, after all, not a city that suffers fools.
Everyone who lands on its shores have heard it from Frank Sinatra - 'If I can make it in New York, I can make
it anywhere.' Mr Kiong knew he had his work cut out for him. Although The Ritz-Carlton is an international
brand name, it had quit the New York market four years earlier. To fill up 600 rooms every day for 365 days in
a city with brand names popping up on every neon sign, the new director of sales and marketing reckoned
that he wasn't going to count on brand recognition alone to lure back the customers. As soon as he came
onboard, Mr Kiong devised a strategy to position the two hotels and an action plan to reach the various
market segments. The first hotel, located in downtown Manhattan near Wall Street, is due to open in October
while the second in mid-town on Central Park West, is scheduled for a March 2002 launch. His plan
impressed the hotel owner. They were even more delighted when Mr Kiong and his team managed to convert
the plan into "pace", an industry term for the rate at which rooms are pre-booked before the start of a new
year. The aggressive approach paid off. Months before the hotels admit their first guests, Mr Kiong's
department has exceeded the target of locking in pre-commitments amounting to 20 per cent of 2002
budgeted revenue. Ms Cohen remarked: 'They (the hotels' owner) were so pleased with Arthur, with his ability
to position the hotels and put together the pre-opening plan that they asked him to lend a hand with their
other hotels in Boston and Washington, DC.' Thus barely 10 months into his new job, Mr Kiong was promoted
to director for marketing and sales for the north-east region of the US with responsibilities for six hotels. In an
interview recently, he told BT he had presented the New York hotel owners with 'a multi-dimensional plan that
took into account the complexity of creating brand awareness'. His plan tackled the marketing problem from
all angles. It left few channels uncovered, addressing direct sales, advertising, global marketing, public
relations and internal marketing. But, as Mr Kiong readily admits, 'there is a big difference between sound
ideas and ideas that sound good'. 'You can have a multi-dimensional solution but if you don't make the
numbers happen, it's all nonsense.' Typically, the marketing director of a hotel is given a budget based on a

percentage of the projected revenue to spend in as many different ways as he sees fit to generate the
projected sales. For example, if revenue is forecast at $100 million and his budget is 7 per cent, he has $7
million to invest in advertising, direct sales, promotions and other efforts that will ultimately drum up 100
million worth in sales. How to extract the maximum benefits from the $7 million is a fine balancing act. It
requires an understanding of the marketplace, an appreciation of the effectiveness of the marketing tools
used for the different market segments, and at the macro level, a nimbleness to adapt one's marketing and
sales strategy to changes in the domestic and international economy. Spending the marketing and sales
budget wisely is an imperative at five-star hotels like The Ritz-Carlton. This is because pricing isn't always
part of the marketing director's arsenal of tools. There is no question of Mr Kiong starting a price war just to
get customers to switch over from the competition. Among the various market segments, one of the most
sought-after market segments is that for incentive travel. This includes rewards programmes run by
corporations for deserving employees such as the salesman who has achieved a performance target or the
executive who has served for 25 years. This market is lucrative because guests under incentive programmes
tend to stay longer than the average business traveller, and have a greater propensity to spend. To help him
tap this market, Mr Kiong recruited a fellow Singaporean and former colleague, Dilip Mukundan. The latter
was associate director of sales looking after incentive travel and conferences at the Ritz-Carlton in
Singapore. Mr Mukundan arrived in April and like Mr Kiong, he quickly realised that the hotel industry in
New York, although competitive, isn't as cut-throat as Singapore's. At Ritz-Carlton Singapore, Mr Mukundan
had to scour the world for business since there isn't much of a domestic market in Singapore. So it was a bit
of a shock when he arrived in New York as area director for sales and marketing to 'meet people who do
international sales and who have never travelled outside of the United States'. New York hotels, Mr Kiong and
Mr Mukundan agreed, have had it good in the last seven years when the US economy was going great guns
and hoteliers could look to a large, booming domestic market to generate 'natural demand'. For one, they
don't have to fight tooth and nail like their counterparts in Asia. Hotel managers' perspective has thus tended
to be more parochial rather than global since they are less pressured to create new demand. Also, their focus
has been to maximise revenue from a tight market. Said Mr Kiong: 'They don't need to go to Europe, they
don't need to go to Asia, they don't know who to call, who to ask whereas this is what we do for a living, what
Dilip does. 'Coming from Asia, we are used to operating in an environment where we are always very
challenged, where supply is always greater than demand ... (whereas) hoteliers in New York generally
haven't seen this kind of aggression and this kind of varied solutions to filling hotels.' No doubt they too can
learn a thing or two from these two foreign talents.

Mahathir gives no hint of Daim's successor.
655 words
4 June 2001
STBT
English
Others name Zeti; her deputy; former central bank governor; and Razaleigh as candidates
(KUALA LUMPUR) Malaysian Prime Minister Dr Mahathir Mohamad said he has no replacement in mind yet
for Daim Zainuddin, who resigned as finance minister last Friday. 'Belum fikir lagi (I've not thought about it
yet). Anybody want the job?' Dr Mahathir reportedly said. The New Sunday Times yesterday quoted the prime
minister as saying that Mr Daim's intention to resign was never discussed by the cabinet. 'It is not a cabinet
matter, so it was not discussed,' he said. Cabinet appointments are the sole prerogative of the prime minister.
Malaysian media yesterday speculated furiously about which government heavyweight Dr Mahathir will pick
to succeed the country's newly-resigned economic chief. The predictions for Malaysia's next finance minister
were eclectic - including the current central bank governor, a state chief minister and a former finance
minister previously banished into the political wilderness after challenging Dr Mahathir in 1987. The prime
minister announced on Saturday that Mr Daim had resigned after a two-month leave of absence, ending
weeks of speculation amid rumours that he had fallen out with the Malaysian leader. Mr Daim, 63, gave no
reasons for his resignation, which took effect immediately. His decision blew open one of the most important
government posts at a time when Dr Mahathir's potential successors are jostling for power. Citing unnamed
sources, the Malay-language Utusan Malaysia newspaper said that a top official from the central bank was
being 'observed' for the post. Zeti Akhtar Aziz, whom Dr Mahathir chose as the first woman to head the
central bank last year, and her deputy, Awang Adik Hussin, were two names mentioned, reported the paper,
which has close links with Dr Mahathir's United Malays National Organisation, or Umno. Rival The Sun
newspaper tipped Ali Abul Hassan Sulaiman - the man whom Dr Zeti replaced - as the likely new finance
minister, as a reward for supporting Dr Mahathir during a difficult bank merger exercise. Utusan reported that
Mr Daim was rumoured to have met the Sultan of Johor last week to get permission for Abdul Ghani Othman,
the state's Chief Minister, to succeed him. Johor, which borders Singapore, is one of Malaysia's wealthiest
states. The national Bernama news agency suggested that Nazri Aziz, the Entrepreneur Development
Minister who is presently acting as finance minister, could be appointed permanently. Yesterday, Mr Nazri
said Mr Daim's exit is a big loss to the nation. The minister, who stood in for Mr Daim when he went on two
months' leave which ended on May 31, believed that Mr Daim had resigned to keep his earlier promise to
hold the post temporarily to help revive the country's economy. Mr Nazri said he was saddened by Mr Daim's
decision because in his brief tenure in the cabinet he had learnt a lot from Mr Daim who was an expert in
economics matters. He said the question of him succeeding Mr Daim did not arise because he was only
standing in for Mr Daim in the cabinet in routine work. Utusan and independent Internet newspaper
Malaysiakini both named Razaleigh Hamzah, finance minister between 1976 and 1984, as a candidate. Mr
Razaleigh, a member of Malaysian state royalty, challenged Dr Mahathir for the premiership in 1987, but lost.
He rejoined Umno in 1996. The Star newspaper, Malaysia's leading English-language daily, said Dr Mahathir
could temporarily take over the finance job himself - as he did for more than four months after firing his
previous finance minister, Anwar Ibrahim, in 1998. Anwar, who was then Dr Mahathir's deputy and anointed
successor, is serving prison sentences totalling 15 years for corruption and sodomy. Opposition leaders
urged Dr Mahathir to announce a replacement as soon as possible for Mr Daim, who was made finance
minister in January 1999.

Chinese catching up fast.
345 words
3 June 2001
Straits Times
STIMES
English
IT TOOK Singapore 20 to 30 years to develop and modernise. But it will take the Chinese a shorter time,
especially for the well-educated people from the Suzhou area. This is what Mr T. K. Niam, the 40-year-old
Singaporean generalmanager of Volex (Suzhou), told the visiting Singapore media recently athis plant in the
Suzhou Industrial Park. Volex is a British maker of connectors. Set up in 1997, its Suzhouplant now
employs about 2,000 workers. "The development process here can be crunched in half the time,because of
the higher educational levels of the local people," he says."Back home, there were operators with less than
Primary 6 education backin the 1960s. Here in Suzhou, all of them are high-school graduates, sothey learn
things much faster." The other factor, he says, is their hunger for knowledge. Many ofhis factory hands attend
night school to better themselves. "The Chinese are very keen and fast learners," he adds.
He has been living in Suzhou for four years with his wife and twodaughters, aged four and eight, who attend
the international school at thepark. Having served stints at Volex's other two plants in China - inShenzhen
and Guangzhou - he notes a strong difference between workers inSuzhou and those in the south. "There is
much more mobility in the workersin the south, who tend to come from other provinces and tend to make
theirmoney and leave. But 80 per cent of the workers here are local, and theyare better-educated and
capable of more delicate work." Conscious of Singapore's software transfer mission at the park, hesays he
sees a replay of what "Singapore itself went through, learningfrom the multinationals - the Japanese,
Americans and Europeans". But thistime, Singapore is in the role of teacher. And he thinks the Singaporeans
will not have the edge for too long. "I am here in Suzhou working on expatriate terms, but I tell mywife, if our
daughters remain in China and work here, they will have tocompete with the locals and work on local terms."
Document stimes0020010715dx63009ei

Will investors get to reap the profits?
641 words
3 June 2001
Straits Times
STIMES
English
WILL the Singapore investors in the Suzhou Industrial Park (SIP)get their money back and more? The
outlook is certainly much brighter, now that the SIP isprojecting a profit this year of US$7.5 million (S$13.6
million) and nextyear of US$10 million. The new CEO of the park's developer, Suzhou Vice-Mayor Wang
Jinhua,has gone on record as saying he expects the company to recoup itscumulative losses of US$77
million in three years. He is also committed tolisting the company in three years. The company is
China-Singapore Suzhou Industrial Park Development(CSSD), a joint venture between Singapore and
Chinese investors, launchedin 1994. Mr Wang has a reputation for meeting his targets, notes JTCCorporation
chairman, Major-General Lim Neo Chian, the former CEO of CSSD. It would seem that with Mr Wang's
backing and resources from thelocal government, the Singapore side should be able to get its
investmentsback and more, in the not-too-distant future.
According to a Ministry of Trade and Industry statement, theSingapore consortium that put up 65 per cent of
the registered capital ofUS$100 million in CSSD in 1994, is a group of 24 investors, each with anequal share
in the investment. The investment has been used in the purchase and development of theland and the park's
infrastructure - roads, water, power, sewage treatment,landscaping and so on. As the park becomes
developed, it is marketed to internationalinvestors as a choice site for their plants in China. The cost of
software transfer - at $17.3 million, however, was notborne by CSSD, but by the Suzhou Software Project
Office under the EconomicDevelopment Board (EDB). Out of the Singapore consortium of 24, three are
statutory boards - the EDB, JTC and Singapore Labour Foundation - and seven are government-linked
companies (GLCs) - Temasek Holdings, DBS Land, Pidemco Land, KeppelCorp, Keppel Land, Sembawang
Shipyard, and Singapore Technologies. In August 1999, Deputy Prime Minister Lee Hsien Loong
toldParliament that the total investment by the 10 statutory boards and GLCs inthe park came to US$147
million, which included not only their share in theequity but also their share of loans raised for CSSD. The 14
other non-government-linked businesses with equity in theproject include City Developments, Fraser &
Neave, Liang Court Holdings, GECapital, Samsung and others. It was during the term of JTC's Maj-Gen Lim
as CSSD CEO, from 1998to the end of last year, that the difficulties between the China andSingapore sides
were addressed in the 1999 memorandum of understanding(MOU). The deal stipulated the swop between
the equity shares held by thetwo sides, and spelled out the terms that would ensure its
orderlyimplementation. The Chinese side has followed the terms of the MOU faithfully, saysMaj-Gen Lim. As
a first step, he tells Sunday Review, the Chinese side hasalready paid back the reduction in shareholders'
loans (additionalinvestment by the shareholders in addition to their equity) to theSingapore side, which
resulted from its reduced stake in the project. 'Our share of shareholders' loans was US$160 million when we
hadthe 65 per cent share. This is now down to US$84 million, and we had gotback the difference 100 per
cent.' The loans were raised by CSSD to finance the infrastructuredevelopment costs of the park, he says.
There is still more to come, however. The Chinese side must alsopay Singapore their share of the assets the
Chinese acquired, after a fullevaluation. Sources say both sides appointed professional services for
theevaluation last year, and a joint proposal is under final review inBeijing. They say settlement is expected to
be equitable. With the company operating in the black, the Singapore investorscan share in the future profit
of CSSD and, after it becomes a listedcompany, they can opt to unload their shares on the open market.
Document stimes0020010715dx63009eh

Lessons from Suzhou.
1,367 words
3 June 2001
Straits Times
STIMES
English
As the Suzhou Industrial Park leaves its problems behind and looks forward to a profitable future,
Singaporeans involved in the joint project reflect on their experiences. What went wrong in the earlier years?
Whatare the lessons? Senior correspondent KAO CHEN files the conclusion of a two-part report
MR CHAN SOO SEN describes his two years with the Suzhou IndustrialPark (SIP) as 'my happiest and
proudest but also my most anxious and mostdesperate'. Reflecting on his stint as the first CEO of
China-Singapore SuzhouIndustrial Park Development (CSSD), the developer of the Suzhou IndustrialPark
(SIP), between 1994 and 1996, he says those were years of intensepersonal discovery. It was like landing in
a 'cowboy town', he confesses, adding thathe felt like 'the first infantry commander sent in after the
paratroopersto cross rivers and build bridges'. One major problem he recalls was in getting the land deed for
thepark's first 8-sq km development. There was a delay of 5 1/2 months as theland bureaus in Suzhou,
Nanjing (capital of Jiangsu province, whichoversees Suzhou) and Beijing were unsure who had the authority
to sellland-usage rights to CSSD. 'Meanwhile, the foreign investors in the park were threatening towalk out
every day,' he says. There were lots of other difficulties. Software transfer did notkick in, and the two sides
operated on different wavelengths. When he saw the park again last year, he was filled withsatisfaction and
says: 'All I had hoped for then, has now been realised.' The SIP is operating in the black this year. It is
regarded as amodel industrial park in China, with 20,000 people from other parksvisiting every year. The
management of the high-profile project passed from Singaporeanto Chinese hands this year as the result of
an equity swop agreed by bothsides in a memorandum of understanding (MOU) signed in June 1999. As the
SIP celebrates its seventh anniversary and looks forward toa profitable future, it is time to take stock. What
are the hard-earnedlessons for Singapore? What did the Republic gain from the experience?
FLAGSHIP PROJECT
THE project was launched in 1994, about four years after diplomaticrelations were established with China.
With the blessing of Singapore's Senior Minister Lee Kuan Yew andChina's late paramount leader Deng
Xiaoping, the 70-sq km park set 80 kmwest of Shanghai was Singapore's flagship project in China. The SIP
was conceived as a commercial venture and a vehicle for thetransfer of Singapore's software - the 30-year
development experience ofthe island nation - to China. The timing had seemed perfect: Singapore was going
regional andlooking to grow its 'external wings', while China was keen to studySingapore's development
model. Unfortunately, it did not take long for the project to run intodifficulties. The cultural gap between the
sides was hard to bridge. Looking back, Professor John Wong, research director of the EastAsian Institute,
thinks Singapore was unprepared for China's political andinstitutional complexity and its five levels of
government - central,provincial, city, town and village. As Mr Khor Poh Hwa, CSSD's deputy CEO from 1996
to 1997 in chargeof building the park's infrastructure, puts it: 'Our work systems,decision-making and work
cultures were so different that neither side knewwhere the other was coming from.' The differences worsened
during the 1996-1998 stint of Mr David Limas CSSD's second CEO. He was said to be more blunt than his
predecessor. MrLim is now Minister of State (Defence and Information and the Arts). That was when the
problems in the SIP were brought into the open.One issue was the local government's failure to honour its
commitment togive the SIP priority support over its rival, the Suzhou New District park(SND). Eventually, SM
Lee went public with his displeasure with the localgovernment during his visit to China in late 1997. Mr Lee
also remarked on the differences in the way signed contractsare viewed - that the Chinese do not always
regard contracts as final; andthat the central and local governments are not always in tune, summing itup in
an old Chinese idiom - heaven is high, and the emperor is far away(tian gao huang di yuan). In the second
volume of his memoirs: From Third World to First, TheSingapore Story: 1965-2000, Mr Lee described the
park as 'a partialsuccess' and Singapore's involvement as 'a chastening experience'. He noted that Beijing
wanted Singapore's software - the emphasis onfinancial discipline, long-term master planning and continuing
service tocustomers - to spread to other cities. But the local government was more interested in hardware -
thebuildings and infrastructure and the high-calibre investments Singaporecould attract using its connections
and reputation. 'Unfortunately, while language was no problem, our businesscultures were totally different,'
he wrote. In a recent speech, Minister of Trade and Industry George Yeoalluded to the initial difficulties of
the early years, saying that it wasbecause the Chinese side had felt they were 'short-changed'. JTC
Corporation chairman, Major-General Lim Neo Chian, the lastSingaporean CEO of CSSD (1998 till end of
2000), when asked to elaborate,puts it down to the minority stake held by the Chinese. With only a one-third
share in the joint venture, he explains, theChinese felt they could only expect 35 cents in every dollar of
returns,and as a result, felt they were unable to justify channelling resourcesinto the park. His most important
'take-away' lessons from the SIP are: The importance of understanding the decision-making process of
theChinese and 'who is responsible for what'; and, How critical it is to have the proper alignment of interests
withone's partner. When the Singapore side understood that local support and the SIP'spriority status could
only come with a majority stake by the Chinese side,it became clear what had to be done - the swop of equity
detailed in theJune 1999 MOU. There was also another issue - pride - which was referred tofrequently,
although not publicly. Students of history will note China's tortuous and ambivalent pathtowards joining
modernity in the past 150 years. As Chinese Ambassador Zhang Jiuhuan made clear, the Chinese do
notwant to 'copy' the Singapore experience. Instead, they want to 'adapt' the Singapore way to local
conditionsand make it work even better.
JUDGING THE PARK
IN THE eyes of Suzhou folk, SIP now stands as a modern townshipwith significant contributions to the local
economy, tax revenues and jobcreation - a clear success. But how would it be judged for Singapore? SM
Lee had said the park's success should be judged not on thepark's hardware but on the success of the
transfer of Singapore software. From Suzhou Party Secretary Chen Deming to the Chinese employees
ofCSSD, all had remarked openly how much their mindsets have changed byworking alongside
Singaporeans. Tangible evidence of the Singapore software transfer is in theCentral Provident Fund-styled
system, urban planning and neighbourhoodcentres. As the minority shareholder now, the Singapore side will
no longermanage the park but will share in future profits. The Suzhou experience has certainly deepened
understanding betweenthe nations. According to Ambassador Zhang, bilateral relations are strong,
withfrequent mutual visits by senior leaders and expanding ties on multiplefronts, from trade to cultural
exchanges. On purely commercial terms, the park cannot yet be called anunqualified success. But given its
scope, multiple purposes and governmentinvolvement, it should be seen as a long-term project and judgment
shouldnot be hurried, says Prof John Wang. With the Chinese economy still expanding at close to double
digitrate of growth, and its imminent entry into the World Trade Organisation,the Chinese market is one of the
few bull markets of the world, he notes. If the Suzhou experience has taught Singapore how to play well
inthis fast-expanding market, then who is to say the learning experience hasnot been worth it? Today, as
president of PWD Corporation, Mr Khor, the former CSSDdeputy CEO, credits his 'very enriching' Suzhou
experience with helpingPWD's successful design and consulting projects in Shanghai, Beijing andXian. 'Now
we are tuned to the same wavelength,' he says. Senior Parliamentary Secretary (Health) Chan Soo Sen, says
his twoyears with the SIP taught him that it is 'only with empathy and trust,things can get done in China'.
Document stimes0020010715dx63009eg

High drama in last-minute vote.
690 words
3 June 2001
Straits Times
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English
IN 1961, the People's Action Party (PAP) came so close to political defeat that even the usually sanguine Lee
Kuan Yew, a young 38-year-old Prime Minister then, thought it was curtains for his fledgling government. Still,
he tabled a confidence motion in Parliament on July 20, 1961to gauge party loyalty. His party then comprised
both pro and anti-communist factions. But Mr Chan Chee Seng, seeing the odds against Mr Lee's motion,still
kept his hopes alive. This was the bleak fact before them: Mr Lee and he had found thatonly 25 PAP MPs in
the 51-member House were still supportive of hisgovernment. This was a vote short of the majority. There
were 43 PAP MPs in the House, and the outcome could eithersucceed in weeding out the pro-communist
members in the party or bringabout the fall of the PAP government.
With less than 10 hours to go before voting took place in the earlyhours of the next day, there were tense
moments in the Members' Room inParliament House where Mr Lee met his loyal lieutenants for the last
timeduring a break and before they would go back to the chamber to cast theirvotes. It was then that Mr Chan
raised the possibility of winning over thePAP MP for Siglap, Madam Sahorah Ahmat, from the pro-communist
camp, togain that crucial single vote. Mr Lee, who also mentioned the event in his memoirs, The
SingaporeStory, published three years ago, described her as a 'large, overweightlady of 36, a good platform
speaker in Malay, simple and straightforward'. But she was sick at the Singapore General Hospital and the
pro-communists had won her support to vote against the government. Recalling the incident, which he said
was the most dramatic eventin his political life, Mr Chan said: 'I couldn't believe that Sahorah wouldvote
against us; after all we were good friends and I had been helping herin her constituency as she spoke only
Malay. 'I volunteered to make a last-ditch effort to speak to her in thehospital.' Mr Lee, in his memoirs, said he
had already given up on her andasked Mr Chan not to waste his time. 'But I didn't want to give up because I
did not want the PAP to bedefeated and so when Dr Toh Chin Chye persuaded Mr Lee to allow me to seeher
again, I dashed to the hospital right away.' Mr Chan said when he met Madam Sahorah, a housewife, she
wascrying, explaining that she had given support to the pro-communist membersbecause the other Malay
PAP MPs were ignoring her. 'But I told her that I have been helping her and her vote meant alot to the party,'
he said. When she agreed to change her mind, Mr Chan took her to Parliamentin an ambulance straight
away, arriving in a stretcher in the earlymorning. 'We managed to walk into the chamber just in time to cast
ourvotes,' he added. So what happened to Madam Sahorah later? Mr Chan said: 'She didn'tstand in the next
election and the last I heard of her was that she leftthe country to be with her sister in Malaysia.'
Milestones
BORN in Singapore in 1932, Mr Chan married Chan Chin Oi in 1962.They have two daughters, Man-E and
Mun-Faye, both in their 30s now. 1951: Joined Hongkong and Shanghai Banking Corporation as a clerkand
later became branch secretary of Singapore Bank Employees' Union 1954: Joined PAP and was the first
secretary of the party's TanjongPagar branch 1957: Elected City Councillor for Jalan Besar 1959: Elected
Legislative Assemblyman for Jalan Besar 1961: Appointed Parliamentary Secretary for Home Affairs 1963:
Moved to Social Affairs Ministry as Parliamentary Secretary 1965: Joined the People's Defence Force 1973:
Founded the Singapore Joggers' Association 1974: Promoted to Senior Parliamentary Secretary for Social
Affairs 1981: Moved to Trade and Industry Ministry as Senior ParliamentarySecretary 1981: Founded ISS
International School 1983: Stepped down as Senior Parliamentary Secretary at Ministry ofTrade and
Industry 1984: Stepped down as MP, retired from politics 1990: Awarded the Meritorious Service Medal.
Document stimes0020010715dx63009ef

Running on plenty.
1,916 words
3 June 2001
Straits Times
STIMES
English
What happened when Singapore's parliamentarians retire? Do they fade away or look for a new lease of life?
In a new weekly series starting today, our correspondent finds out what former politicians are up to. To start
off, LEONG WENG KAM speaks to Mr Chan Chee Seng, 69, ex-Senior Parliamentary Secretary (Social
Affairs, Trade and Industry) and MP for Jalan Besar
HE IS up before sunrise every day. It is a habit Mr Chan Chee Seng, 69, has observed for years. After
sending his two granddaughters to school, he is all geared upfor his daily two-hour jog at MacRitchie
Reservoir Park, not far from hisWestlake Avenue home. He jogs alone and relishes the quiet moments this
outing gives him. Then it's back home for a shower and a simple breakfast. He spendsthe rest of the morning
reading the newspapers, magazines and his favouritebooks. He arrives at his office in ISS International
School, situated on ahill on Preston Road in Alexandra, after lunch. As chairman of the school, he usually
goes through documents andattends meetings with his staff in the afternoon. The day usually ends with a
dinner with his business associates,friends or relatives before he returns home to spend time with his
wife.Then he goes back to his books before switching off the lights at aroundmidnight. Saturdays are devoted
to bantering with his old comrades-in-arms.He usually meets a group of former PAP parliamentary colleagues
for lunch.They include former Cabinet Ministers Ong Pang Boon and Jek Yeun Thong, MPsChor Yeok Eng,
Ho See Beng and Ms Ho Puay Choo, who defected to the BarisanSocialis later. He enjoys the weekend
afternoons browsing in the bookstores. Sedate as it may sound, this is now his lifestyle after an eventful30
years in politics. Mr Chan joined the PAP in 1954 and was a key memberwho organised the party's
inauguration at the Victoria Memorial Hall in thesame year. He was the Senior Parliamentary Secretary at the
Ministry of Tradeand Industry in 1983 and MP for Jalan Besar before he stepped down thefollowing year to
give way to younger leaders in the party. He said: 'I thought I could really retire after working for so
manyyears and was looking forward to a slower pace of life after politics. 'But I found I couldn't. After only two
weeks, doing nothing much,I became very restless. I had to fly to London and stayed at a
50-a-weekIranian-run hotel for six months, looking for something to do.' When he retired from politics in 1984,
he returned to run theinternational school he started in 1981 as its executive chairman. The school was set
up for children of the expatriate community inSingapore. Later, he persuaded his wife, Mrs Chan Chin Oi,
who retired aschief pharmacist at the Singapore General Hospital in 1993 when she turned55, to join the
school as well. A year later as chief executive officer, Mrs Chan expanded theschool by opening a branch in
China where more than 300 students are nowstudying at the Beijing ISS International School she helped to
set up in1994. The school in Singapore, with over 600 students now, also runs theAmerican College, which it
started in 1986, and the Centre for AmericanEducation since 1997, to provide tertiary education for both
expatriate andSingaporean students. Taking charge at the college and centre is her daughter, Mun-E, whois
in her early 30s and is married with three young children. Elder daughter Mun-Faye, also in her 30s, is doing
her ownbusiness. Next month, classes will begin at the Beijing InternationalManagement Institute, which the
school set up recently to provide degreeprogrammes in business and management for tertiary-level students
in theChinese capital. For a founder and chairman of a group of schools and institutions,Mr Chan had little
formal education himself. He studied in several primary and secondary schools, includingChinese-medium
schools such as Yangzheng Primary and Catholic High, andEnglish-medium ones such as St Anthony's Boys
and St Joseph's Institution. But he stayed only a short while at each as his parents could notafford to pay the
fees. He said that former Solicitor-General-turned-opposition politicianFrancis Seow taught him Shakespeare
at St Anthony's and remembered him as agood English-language teacher. He was born to quite a wealthy
family. His father was businessmanChan Kok Chee, a founding member of the Singapore Chinese
Chamber ofCommerce and Industry early in the last century. But his father died when he was only five,
leaving his mother toraise him and seven other children by giving private tuition. 'The family's fortunes
changed and suddenly we became so poor thatgoing to school was not easy for myself and my siblings,' he
said. It was poverty which drove him to look for a job before he couldeven complete his secondary school.
And it was the plight of the workers which drove him to politicsand the PAP after he became a union leader,
as branch secretary at HongkongBanking and Shanghai Corporation, where he worked as a clerk in the
early1950s. He recalled: 'I began to meet people like Mr S. Rajaratnam and MrOng Pang Boon and later Mr
Lee Kuan Yew, whom I found to be very inspiringas a leader. 'I was very impressed by Kuan Yew's oratorical
skills, especiallyhis political speeches. I used to cut them from newspapers so that I couldread them over and
over again.' So joining the PAP needed little persuasion for Mr Chan, who saidmany young people like
himself during the colonial days were simply fed upwith the unfair treatment they received and the racial
discriminationpractised by the British colonialists. Students like himself, he said, could go into school only by
theside or back door, while only the whites were allowed to enter through themain gate.
EARLY PAP LEADERS
WHEN he was made secretary of the PAP's Tanjong Pagar branch withinthe same year he joined the party,
he got to know his leader, lawyer LeeKuan Yew, better. Soon, they worked together and became good
friends. 'I was always the driver and because my office was near his, I alsoused to pass messages from him
to other PAP leaders such as Mr Ong PangBoon, another person I respected and learned a lot from in the
early days.' Other early PAP leaders who influenced him then included journalistRajaratnam and Mr Ong Eng
Guan, the first Singapore mayor who later brokeaway from the PAP to form his own United People's Party.
But Mr Lee remained his main idol, and they would often drivetogether in search of suitable sites to hold the
party's rallies duringelections. Recalled Mr Chan: 'Once, he came to pick me up at my place as earlyas 6 am
and we went all the way to the top of Fullerton Building to studythe morning crowd movements to identify a
good location.' Mr Lee, who led the party to form the government after its victoryin the 1959 elections,
described Mr Chan as a 'non-communist Chinese-educated Cantonese, a judo black belt, well-built, not
intellectual butloyal and energetic and a good campaigner' in his memoirs, The SingaporeStory, published
three years ago. Mr Chan said Mr Lee was his mentor, from whom he received much ofhis early political
education. He said Mr Lee was the one who had pushedhim to play a greater role in the history of modern
Singapore. Mr Lee fielded him successfully, first as a candidate in the 1957City Council Elections and the
Parliamentary Elections two years later. Mr Chan said: 'I never thought I was capable enough to be an MP
andMr Lee had to call on me thrice before I agreed to stand for election.' He remembered he was awed when
he first stepped into his office atthe Home Affairs Ministry when he was appointed Parliamentary Secretary
in1961. 'I was given a big office and a secretary, something an ordinaryperson like myself could never have
dreamed of in the colonial days,' hesaid. He also remembered Mr Lee as a good and generous friend. He
said:'He even offered me his Studebaker as the bridal car when I got married andinvited me to throw my party
at the Istana. 'I had planned for a small party due to my small budget but becauseit was held at the Istana,
many more of my friends, including those fromthe unions, showed up just to shake my hands and
congratulate me.'
PRO-COMMUNIST FACTION
THE power struggle with the left-wing faction in the PAP, leadingto the split in the party and the formation of
the Barisan Socialis in1961, was the most exciting time in his political career. Mr Chan was among a group of
single PAP MPs living in specialgovernment quarters at Fort Canning in the early 1960s and found
himselfisolated by members of the pro-communist group, such as Mr Chan Sun Wingand Ms Ho Puay Choo
there. He said: 'We were good friends, but they considered me to be right-wing inclined, probably because of
the English-language books I wasreading. 'One day, they didn't want to talk to me anymore or eat
togetherwith me at breakfast. Some even threatened me that I should leave the PAPto join them. 'They said
when they took over the government, they would make allPAP leaders face the wall and brand us as traitors
of the country.' The threat was a real one, he said, for even PAP leaders thoughtthey were close to losing the
political battle to the communists at onetime. The left-wing's leader Lim Chin Siong also tried persuading him
tojoin their camp but Mr Chan held his ground because he still believed thatthe PAP's ideology was better for
the people. He said: 'For example, I believed in the merger with Malaysiabecause we will be part of a bigger
country. But the communists said wewould be swallowed up by the Malays as a result.'
HANDLING SPORTS AND SOCIAL SERVICE
AS MP and Parliamentary Secretary, Mr Chan identified himselfeasily with the people, especially in the fields
of social service andsports. 'As Parliamentary Secretary at the Social Affairs Ministry, I usedto be reluctant to
arrest beggars from the streets because I thought it wasa mean thing to do. But after picking them up,
cleaning them and givingthem a job, I felt very good. 'Some, I found, kept a lot of money at home while
begging and theywere just lazy and refused to work.' A keen jogger and sportsman himself who founded the
SingaporeJogging Association nearly 30 years ago, Mr Chan was also responsible forpromoting sports in
Singapore during the early days. He was a vice-president of the Singapore National Olympic Counciland
president of the Singapore Amateur Swimming Association for many years. He was chairman of the
committee responsible for building theNational Stadium for Singapore to host the SEAP (South East
AsianPeninsular) Games in 1973. 'I enjoyed every one of my roles promoting sports in the countrybecause I
believed in it,' he said. Although he had contributed to the development of Singapore duringthe 30 years he
was active in politics, he said he started with little orno big ambitions. 'I could give up political office when the
time came for me to go.But one thing, I will never give up is to keep fit and stay healthy.' At dawn tomorrow,
Mr Chan will be that lone figure again, joggingat MacRitchie. It is a routine he has followed for at least 30
years. Steadfast as always.
Document stimes0020010715dx63009ee

Who's who on judging panel.
189 words
3 June 2001
Straits Times
STIMES
English
MRS REENE HO-PHANG, 30 Director of marketing communications at Banyan Tree Hotels and Resorts
MAKAN CREDENTIALS: Her job lets her wine and dine clients at top-notch restaurants around the world. But
the former business developmentdirector of food bible Makansutra foodie is happier trawling the heartlandfor
down-to-earth grub and used to collaborate with the Singapore TourismBoard in organising food tours for
foreign journalists.
MR CHIA BOON PIN, 50 Group general manager and director of corporate affairs for FarEast Organization
MAKAN CREDENTIALS: As the man responsible for filling Far EastSquare's Food Opera food court with
reputable hawkers famous for theiryummy fare, Mr Chia counts hunting for traditional fare and uncovering
newhaunts among the greatest pleasures in life.
MRS DEVAGI SANMUGAM, 46 Managing director of The Spice Route, a culinary consultancy
MAKAN CREDENTIALS: The guest panelist of Wine & Dine's TopRestaurant Award conducts cooking
workshops and has written three cookbooks - Born To Eat, Banana Leaf Temptation and Great Bakes No
Eggs. She has made appearances on TV Works' The Big Buffet to talk aboutthe medicinal effects of various
chillies.
Document stimes0020010715dx63009e7

New lawyers will ease shortage.
By Karen Wong.
326 words
3 June 2001
Straits Times
STIMES
English
MORE than 170 new lawyers were called to the Bar yesterday. While not all may practise as lawyers, the
current shortage will beeased. 'Your admission will therefore provide a much-needed boost to thedwindling
number of practising lawyers in Singapore,' Chief Justice YongPung How said, in his address to the 173
newcomers at the Supreme Courtyesterday. A total of 3,233 lawyers now hold practising certificates, he
said,and he hoped that with the new entrants, the figure would rise to over 3,380. Not all 173 are expected to
apply for practising certificates. Quoting a Manpower Ministry study, CJ Yong said Singapore wouldneed
between 99 and 115 lawyers for every 100,000 people. As of last year,it had 84 per 100,000. 'The recent
phenomenon of lawyers choosing to leave legal practicefor non-legal sectors and for alternative employment
as in-house legalcounsel in private-sector enterprises has intensified the current shortageof lawyers in
Singapore today,' he said.
He challenged the new lawyers to seek ways and means of broadeningtheir knowledge, to deal with the
'explosion' of issues in intellectualproperty, information technology, e-commerce, trans-border
commercialcrimes and life sciences. They should get to know technology and learn how to exploit it, hesaid.
'You must also get to grips with the Electronic Filing Service,which has been up and running now for over a
year,' he advised. Lawyers have filed more than 52,000 writs with the courtselectronically, since it became
compulsory to e-file all documents relatingto writ actions from March 1 last year, he noted. E-filing will also be
moved to the Internet, so that lawyers canfile documents electronically with the Singapore courts from
anywhere inthe world. Over the next few years, once the service was fully launched, hesaid, more
transactions would take place through the Internet. The CJ said: 'The vision of a paperless courtroom will no
doubtquite soon become a reality.'.
Document stimes0020010715dx63009d8

Smokers may have to stub it out in pubs and clubs.
By Paula McCoy Spencer Ng.
608 words
3 June 2001
Straits Times
STIMES
English
The body which advises government officials on smoking policies iscalling for a ban on lighting up in
nightspots, but owners say it couldkill nightlife
IF THE Committee on Smoking Control has its way, smoking in pubsand nightclubs will be banned. The
committee, which guides government officials in choosing anti-smoking measures, says it is making a
'general push' for more areas to becovered by the no-smoking ban. It would also like to see smoking and
non-smoking sections inoutdoor dining areas. Its chairman, Mr Alex Chan, told The Sunday Times: 'We are
thinkingof the 85 per cent of the population who don't smoke. Their opinion isworth something.' Past surveys
show that about 15 per cent of the population smokes. Mr Chan referred to the experience of California where
smoking inbars and clubs has been banned since January 1998. He said the committee was very keen to
study the state's experienceand see how it could be implemented here. Smoking is banned here in such
indoor areas as restaurants,cinemas, hospitals, department stores, lifts and workplaces. Sinceintroducing a
smoking ban on buses and in cinemas in 1970, the Ministry ofthe Environment (ENV) has extended it
progressively. The ban now covers 31 different place categories from publicbuildings to queues. 'There is a
significant amount of study to be done before there areactual rules which we can get the authorities to
consider,' said Mr Chan ofthe indoor extension plan. Owners of nightspots are dead set against such a move,
but theauthorities are already taking an interest. ENV surveyed more than 1,000 pub patrons between last
November andJanuary to see how many smoked in nightspots, and whether customers wouldprefer a
smoke-free environment. Just over half of the 1,027 respondents said they would preferpeople to be banned
from smoking in nightspots, said the ministry. For now, however, nightspots will continue to remain smoky, as
theENV spokesman said that there were no immediate plans to extend the ban topubs and discos.
Welcoming the news that a ban is not imminent, nightspot owners saythat such a move would not just harm
their businesses but would hit thetourism industry hard as well. Mr Deen Shahul, who owns the Fire, Canto
and Sparks discos, said:'If you were to implement a ban on smoking in nightspots, it will not justhurt our
business but tourism in Singapore as well because the tourist canalways choose to go to other countries in
the region with a more liberalnight scene.' Mr Calvin Tan, the owner of the Mad Monk's pub sited between
BoatQuay and Clarke Quay, added: 'You can kiss Singapore's night scene goodbyeif you were to ban
smoking in nightspots.' Many people who frequent pubs are smokers, he said. 'If you were torestrict smoking
in these areas, you will turn off all our customers,' headded. Mr Peter Wong, who owns Madam Wong,
Sultans of Swing and Newsroombar said there was a 'better alternative' to an outright ban. 'I have already put
up several anti-smoking posters to get peopleto cut down on cigarettes,' he said. He reasoned: 'If you drive
the smokers out of nightspots, they willjust go somewhere else to smoke.' Both Mr Tan and Mr Wong said
they would consider not sellingcigarettes on their premises as a gesture. Another alternative might be to
restrict the smoking area. Mr Ian Crowhurst, the president of the Boat Quay BusinessAssociation, said that
in Britain some nightspots designated separate areasfor smoking. He also suggested that the committee
should engage in moreconstructive dialogue with the operators to discuss other solutions.
Document stimes0020010715dx63009d5

Another shock for High Street merchants.
By Karamjit Kaur.
535 words
3 June 2001
Straits Times
STIMES
English
They are told that plans for the area will not be confirmed for at least sixto 12 months. Meanwhile,
businesses sufferamid the climate ofuncertainty
HIGH Street merchants who are already agitated, becauseredevelopment of the area may force them to
leave, got another rude shocklast month. Plans for the area, due to be finalised by mid-year, will not
beconfirmed for at least six to 12 months, they were told. The Urban Redevelopment Authority (URA), which
is leading thestudy, said it did not want to be hasty because High Street is an importantpart of the civic
district. Still, this offers little comfort for the more than 700 electronicstraders and textile merchants in High
Street Centre, High Street Plaza,Satnam House, Amaraj House and Wisma Sugnomal, the area's five
majorbuildings still in private hands. Their business has suffered since rumours began circulating morethan
two years ago that these five buildings might be acquired, they said. Talk has it that the Government wants to
move civil servants intothe area and possibly build a new light-rail system that would runalongside the
Singapore River. Mr Deepak Gurnani, 40, chairman of the High Street Centremanagement council, said that
many owners and tenants have been asked bytheir banks to top up their mortgage payments if they want to
maintaintheir credit lines. The uncertainty has also hit rentals, said building owners. Theirunits now rent for
under $4 per square foot, they said, compared to themarket rate of $6 or $7. 'Our properties are being
devalued artificially because of theuncertainty and it seems that there is no end in sight to the URA
study,'said Mr Deepak. On top of that, since news of the study became known, tenants havebeen unwilling to
extend their leases, and occupancy has dropped below 90per cent. Before, every unit was rented out, he
said. Explaining the delay, the URA said there was a need to study thevarious possibilities, including some
ideas suggested by the buildingowners. In a bid to remain in the area, owners of the five buildings
bandedtogether and in November, submitted a $10 million renovation and upgradingproposal to the
Government. The URA has put that application on hold pending the outcome of thestudy. Despite the
seemingly gloomy outlook, the owners of the 30-storeyHigh Street Centre, the oldest and biggest of the five
buildings, have notgiven up hope. They decided to go ahead with a more than $2-million sprucing up ofthe
building's six-storey podium block and the roof of the office tower. The URA had approved the project in 1998,
before the study started. Said Mr Deepak: 'We don't know what the outcome of the study willbe but we are
committed to do whatever needs to be done, to blend in withthe modern and up-to-date look of the civic
district. 'We want to work with the URA to see how we can do our part tofulfil the Government's vision. 'Hard
times have befallen us and we expect that it will get worsewith the economic downturn. 'But we are confident
that the outcome of the study will bepositive for us and we look forward to the good times returning.'.
Document stimes0020010715dx63009cy

Lending a hand to foreigners.
460 words
3 June 2001
Straits Times
STIMES
English
DR SIMON Mahendra has the welfare of foreigners at heart - both theforeign workers here and poor people
in remote villages in India. That affair of the heart began in 1990 when he began seeingBangladeshi and
South Indian patients, and talking to others who loiteredoutside his dental clinic in Chander Road off
Serangoon Road. They told him how their employers here treated them badly. He heardabout long hours of
overtime work at minimal pay, unpaid wages andbeatings. Dr Mahendra, 39, got a few friends together and
founded a societycalled the Karunya Community Clinic in 1992. They ran a clinic chargingminimal fees for the
workers, negotiated salaries on their behalf withemployers and helped workers to report errant employers to
the ManpowerMinistry. And where employers did not object, the volunteers also ran Englishclasses at
construction sites.
In 1997, Dr Mahendra, an alumnus of St Joseph's Institution,started Jeevan Frontiers, a non-profit company

to aid the poor in India,Bangladesh and Pakistan. He said he donates almost half his own earnings to Jeevan,
whichsurvives on such donations. There are about 20 volunteers, who are of different professions
andreligions. They make at least three trips to the subcontinent a year. Dr Mahendra said he makes 10 trips a
year himself, often to scoutfor non-government organisations and network with them to assess what helpis
needed. Volunteers pay their own airfare of about $1,500 a trip, whilesponsors pay for medicine, food,
teaching materials and other equipment. They sleep on mud floors, run medical and dental clinics in theopen
during the day as villages have no electricity, and go for dayswithout proper sanitation. 'Sometimes it is really
hard work and the conditions can put youoff. But we do it because we care for these people and want
somethingbetter for them,' said Dr Mahendra. The volunteers go back to the same villages to offer
differentservices or continue the training begun on earlier visits. In one village, for example, they helped a
man to start a chickenfarm. It took two more visits before he got the business to be profitableenough to pay
for his tuberculosis medicine. Dr Mahendra and his wife, Greta, who was once a medical assistant,have four
children - twin boys aged 1 1/2 years old, and two daughters,one, four years old, and the other, just four
months old. He said: 'We are so blessed in Singapore. But this blessing comeswith a responsibility to our
fellow men. Often we don't take it seriouslyenough. 'For me, I just could not bear the burden any longer and
wanted toget to the origins of the problem - to give back something to the land fromwhere many of these
foreign workers come from and help to improve the livesof others there.'.
Document stimes0020010715dx63009cw

Caltex's 11% cut pumps new life into price war.
By Debbie Goh.
368 words
3 June 2001
Straits Times
STIMES
English
Case spokesman welcomes the latest entrant to the petrol fray, and hopes it will lead to island-widediscounts
THE latest development in the price war among Bukit Timah's petrolkiosks sees Caltex joining in with an
11-per-cent discount on petrol. A sign outside a Dunearn Road Caltex kiosk near Barker Roadannounces the
discount, which is one percentage point more than SingaporePetroleum Company (SPC) is offering at its
kiosk on Bukit Timah Road. A pump attendant at the Caltex station told The Sunday Times thatthe offer
started on Monday and would last for one month. But the bigger discount does not seem to have drawn much
trafficaway from the queues farther up Dunearn Road, so far. Shell, Esso, Mobil and SPC have petrol stations
near Eng Neo Avenueand Third Avenue. Judging by the queues of cars, they did roaring businessyesterday.
These four vendors have doggedly matched one another's discountssince SPC began offering its petrol
discount last October. The discounts - due to end on Thursday - were still availableyesterday. Mr Stephen
Loke, chairman of the consumer affairs committee of theConsumers Association of Singapore (Case), said
Caltex's move was healthyfor competition. He said: 'Any step towards a drop in price is a plus for us.
Let'shope that this will spread to other parts of Singapore. We want to ask foran overall drop round the
island.' Case has been arguing for lower petrol prices for over a year. Theconsumer watchdog said last month
the fall in crude oil prices warranted apetrol price cut of 15 to 20 per cent. The oil companies have said little
except that they would reviewtheir discount plans based on their competitors' next moves. Caltex's move may
have moved the competition closer to town, butthe BP and Shell kiosks along the same stretch did not
advertise anydiscounts. The Caltex pump attendant said: 'We do not usually get a lot ofcustomers at this end,
but because of the discount, we now get about 25 percent more cars. 'We haven't had any jams though,
because most people still go tothe Eng Neo side. Maybe they don't know about our discount.'.
Document stimes0020010715dx63009cs

Wage and career boost for the uniformed services.
By K.c. Vijayan.
368 words
3 June 2001
Straits Times
STIMES
English
POLICE, civil defence, prisons and anti-narcotics officers will getbetter career opportunities and improved
employment terms, with bonuses forjunior officers to stay in service. At the same time, a retirement fund will
help retiring officersmove into a second career. More than two-thirds of the 12,000 uniformedstaff in the
Home Team are juniors. Specialist career tracks for investigation, intelligence,counselling/psychology and
disaster assistance and rescue (Dart) have beencreated for the uniformed officers, which will complement the
traditionalcommand-based track. They offer better chances of advancing in theircareers, Home Affairs
Minister Wong Kan Seng said yesterday at the PoliceDay Parade. About 8,000 police officers, their families,
and friends of thePolice Force attended the event at Singapore Indoor Stadium. Mr Wong also said that the
first promotions based on the specialisttracks can be expected in October.
All eligible junior officers up to the rank of Station Inspectorand equivalent will get a pay rise of one increment
starting this month. All junior officers who join on or after Oct 1 will retire at 50;senior officers at 55. This
means the retirement age is being lowered byfive years for all new Home Affairs Uniformed Services (HUS)
officers. The aim of such major changes to the salary and career schemes isto keep the personnel in the
uniformed services young, while preparingolder officers for a second career. Explaining the pay rise for junior
officers, he said a study showedthat salaries for those up to the rank of Station Inspector and equivalentranks
lagged behind the market. The Home Team also needs to attract and retain enough good andcommitted staff.
Mr Wong explained the retention payment scheme which willoffer junior officers periodic bonuses to
encourage them to stay inservice. They will get the equivalent of one month's pay for each year ofservice
during the first six years. This will rise by a half-month's payfor each year from the seventh to 10th years. Mr
Wong said that a new retirement fund scheme will help officerstransit to a second career. Senior officers
recruited from Oct 1 will alsobe included in this retirement fund in place of the pension scheme.
Document stimes0020010715dx63009cq

Epileptics often prone to depression.
By GOH KENG HWEEHonorary SecretaryEpilepsy CareGroup (Singapore).
383 words
2 June 2001
Straits Times
STIMES
English
I REFER to the letters, 'Health plan must not overlook depression' (ST, May 26) by Dr Andrew Peh Lai Huat
and 'Thanks for letter on depression, doc' (ST, May
29) by Ms Jessie Ng. I write on behalf of Epilepsy Care Group Singapore, a voluntary community-based
support group and a registered charity whose focus is to help persons with epilepsy achieve an enhanced
quality of life. Epilepsy and depression have intimate neurological links. We find that there is a need to
address the depression that so commonly accompanies epilepsy. There are a number of reasons for this
depression. The social and psychological stress that a person with epilepsy lives with are
often enough to cause depression. The physical hazards of epilepsy are due largely to the unpredictability of
the seizures, which sometimes occur with little or no warning. Having seizures, but no control over them, can
also be very unsettling psychologically. After a seizure, a person may be confused and embarrassed,
surrounded by strangers, which can add to the emotional suffering. Just as disabling is the social exclusion
suffered because of the public's negative attitudes towards those with epilepsy. Because of the public's
ignorance, misunder-standing and fear when confronted by someone having a seizure, the tendency is to
isolate people with epilepsy, which can prevent them from living a normal social life. Indeed, in some
societies epilepsy is wrongly believed to be infectious, or an
invasion by a supernatural spirit. Children with epilepsy are often excluded from school, despite being - in the
majority of cases - quite normal mentally. People with epilepsy may find themselves barred from marriage,
despite the low
likelihood of their children inheriting the disorder. Employment is sometimes denied, even if the seizures
would not interfere physically with the person's ability to perform the task. It has been estimated that 1 per
cent of the total burden of disease in the world is caused by epilepsy. The figure for children is 1.6 per cent.
This calculation of burden takes into account premature deaths caused by epilepsy, but also includes the loss
of healthy life due to disability. Among young people, the mortality rate for those with epilepsy is four times
the normal figure.
Document stimes0020010715dx620097p
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Shares of NOL unit peg ged at US$17.60-$19.50.

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Did not take reasonable care to obtain its true value.

Edmund Tie & Co carried out the valuations.

Mr Tai did not appeal against the order, OUB said.

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PRICE HIKES MAY BE INEVITABLE

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HONOURING U.S. CONTRACTS

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in Singapore to offer an outsourced LAN service as an extension of its service

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JEAN TAN, DirectorCorporate Communicationsfor Permanent Secretary, Ministry of Manpower

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The management committee of CaseTrust, the Consumers Association of Singapore's (Case)

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investors, especially those connected with the development of a US$1.2 billion

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(SINGAPORE) The property market is expected to see a major test of developers'

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galactic tours at the American Museum of Natural History in New York.

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is allowed only where there is a sign to say that it is permitted.

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Sneak preview for BMW 7-series

DaimlerChrysler sets car safety goal

Ford widens Firestone recall to Europe

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is a man... nobody wants me!'.

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the break can be sustained.