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...All the Asia business news that didn't fit...
Archives:
December 2000

Daily commentary on Asian business strategy, management, market research, marketing tips, business prospects, economic and culture news. Market prospects. Economic prospects. Short reviews, links, advice, satire and topical coverage for international and Asian managers doing business in Asia.

The Hari Ini column is available daily on the Asian Business Strategy & Street Intelligence Ezine home page. Sure.. go there now for more of the same. At least it's fresher...

This page contains one month of the archives.

The Hari Ini column documents off-the cuff comments, very odd spots, unsubstantiated rumours, misinterpretations, cruel innuendo, limp jokes, dodgy links, tips lacking in credibility, and other material very roughly related to Asian business, marketing, management, culture, politics, economics and why the earth is round.

Some of the items emerge into sections later on; some are contributed by email or word of mouth by friends of the forum, columnists, editorial advisors, and the Chao Phraya River Rat. ..Most of it just ends up here...

Basically it means we can at least comment on happenings that we wouldn't otherwise have the time to.

"Hari Ini" means "Today" in both Malaysian and Indonesian.

..Which means that everything on this page is already outta date...

As the masthead suggests, this column also includes all the news that doesn't fit..

It also means we can add some lightheartedness and CNN type shallowness to our otherwise more serious content. As CNN proves, such content sells...

Mostly the column just reflects the mood of the editors on the day, and gives a potted summary of key issues in the region. If you want it to reflect your mood as well, email us contributions at chiyo@apmforum.com.

Chiyo Hyiuiki (Webmaster, and on behalf of the editors)


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Kuala Lumpur: December 21st 2000

Hari Ini dan Asia Back to Basics in 2001... the carnival is well and truly over: A worldwide recession, tipped by yours truly several weeks back, is beginning to bite with the NASDAQ losing substantially 7 days in a row, new technology stocks being battered world wide and in Asia, and more evidence every day of slowing economies worldwide. 2001 may well be the year the world as a whole has to face the bitter lessons that Asia is still struggling to understand after their substantially ignored wake-up call a few years back.

Customer Service Malaysia style: Those of you complaining of long waits for baggage delivery or missing baggage at the sparkling new Kuala Lumpur International Airport complain no more! It's just a necessary consequence of development that customer service should necessarily decline "...because modern airports are built that way..." according to KLIA senior vice president for ground services Tuan Ibrahim Tengku Abdullah, quoted in the major Malaysian government English language newspaper, the New Straits Times. "...We understand that 55 minutes seems like a long time... but the way the airport is built makes it impossible for us to make the time shorter..." explains Abdullah. Furthermore "... KLIA cannot be compared to other airports as it is a modern one designed in such a way that the landing strip is quote a distance away from the baggage claim area." According to the good gentleman, the performance target is 55 minutes. 2001 may also be the year of wasted time.

One of the sorry paradoxes of "development" is that as new public facilities are built, their efficiency, convenience, and functionality reduces in direct proportion to their ostentation. In an era where improved customer service is touted by many of those building these facilities, the reality is often the opposite.

The newest airports in Hong Kong and Kuala Lumpur still have a long way to go before they can legitimately claim to provide better service than those they replaced, or indeed older airports in the region such as Singapore and Bangkok. Yes they are cleaner in some cases and certainly bigger, but in the case of Hong Kong and Kuala Lumpur airport-city transfer time and costs, as well as embarkation and disembarkation time, have more than doubled. In order to regain their investment costs, justified as investing for future growth, they have diverted from the old management principle of "sticking to the knitting" by placing a massive amount of retail space between check in and departure lounges, decreasing their efficiency in getting passengers from one place to another efficiently. In KLIA's case they even invest in a advertising campaign (Tropicana) to convince people to visit the airport, not to travel, but to shop!

Word from Thailand is that the ruling Democrats are bridging the gap between themselves and the leading contender for winner of the general elections to be held on January 6th, Thaksin's Thai Rak Thai party. It may be far too late already however. Candidates have already been banned and corruption allegations continue to fly, as always, from and against almost all parties, but this time under the dedicated governorship of the new anti-corruption Electoral Commission, set up as part of Thailand's new constitution. Reducing the influence of money politics, bribery and corruption in Thai politics is nascent and will take a long time. At present, Thai voters seem to be willing to vote in a corruption tainted Thaksin on the basis that all parties are corrupt. Corruption is close to being a non-issue by default, while success, embodied in the millionaire businessman Thaksin, is a less universal quality.

A halal business website: Islam prescribes several significant business practices, as well as the well-known prescriptions against the consumption of certain foodstuffs and social activities. These include usury (making money through interest) leading to a massive and growing business in Islam banking and trading for example. A new halal web portal launched this week during the annual Rammadam season by the Malaysian Resources Corporation Bhd. aims to provide halal services including information on halal products, listings of halal restaurants, Islamic banking resources, and syariah- approved indicies (Islamic stock indices). The potential is high according to the owners as Islam is the world's fastest growing religion, and there are 2 Billion Muslims worldwide boasting a global halal market worth $US 1.24 trillion.

Singapore: December 18th 2000

Hari Ini dan Asia More Monkey Business in the City of Angels: Well we always thought that "Krungthep", the Thai name for Bangkok, meant "City of Angels". ..Mai chai!.. says leading Tamil linguistics scholar G. Deivanayagam, as quoted in Thailand's English language Nation newspaper. At a history conference at Kasestart University (yes that's the place that conferred a honorary doctorate to Tiger Woods between golf rounds at the Sheraton Hotel), the good doctor offered that "Krungthep" was "...a corrupted Thai version of the word "Kuranguthope" a Tamil word meaning "Monkey's Forest".

Now we know that Thais have a great sense of "sanook" or "fun", but referring to our great friends as Monkeys is somewhat impolite. On the other hand it is probably a good term to describe the unruly troops of European and North American good time tourists who will descend on Bangkok in the next few months. To Kasestart's credit, their Anthropology Professor Srisakara Wallibhotama mentioned that Deivanayagam was "confused"...

While grace in defeat and victory seemed to mark the finalization of the US Presidential poll late last week and Asian leaders were quick to renew their congratulatory messages to Bush, Malaysian PM Mahathir's reaction was at least original, if somewhat negative. - "...I'm glad Gore lost...", was the only comment from the always entertaining Mahathir reported in the Malaysian New Straits Times.

The US, Singapore and Indonesia seem to disagree on the causes of the Silk Air Crash in Indonesia. "Intentional pilot action" probably caused the crash of SilkAir flight MI 185 in an Indonesian jungle in 1997, killing all 104 people aboard, according to the US National Transportation Safety Board (NTSB). A former stunt pilot with the Singapore Air Force, "...was in serious debt from financial market speculation at the time of the crash and had experienced several run-ins with the management of his airline...".

The suicide theory has been continually aired informally by aviation observers in lowered whispers for many years, but despite evidence that onboard voice and data recorders were turned off by the captain before pushing the nose down and diving inexplicably from 35,000 feet, the Indonesian Report was inconclusive on the causes of the crash. As a US manufactured aircraft was involved (a Boeing 737), the US NSTB became involved, and in a stunning rebuke to the Singaporean/Indonesian investigation stated on Thursday that "...A significant amount of pertinent factual information developed during the three-year investigation is either not discussed in the (Indonesian) report or not fully considered...".

In the meantime an Australian newspaper last week claimed that Singapore Airlines cabin crew panicked during the aborted SQ006 crash in Taipei earlier this year, ignoring several emergency evacuation SOP's (Standard Operational Procedures). The principle that the captain is totally responsible for the management of a flight allowed authorities to shift informal blame to the flight crew, but we find it hard to believe at this stage that several factors did not contribute to the disaster. A breakdown in team management amongst several players in the whole system such as flight crew, Taiwan ATC, Taipei Airport authorities, SIA flight crew as well as management, is looming large as a sensible alternative and more useful explanation.

The World Bank has released its 2001 prospects for developing countries, inlcluding several Asia Pacific countries. While on average prsopects for developing nations are good with 5% and over growth rates expected in each of the next 3 years, the poorest countries, especially in Africa, do not seem to be benefiting from globalization.

Good news for lovers of Thailand's Tom Yum Koong (Spicy Prawn Soup): Researchers from Kyoto and Bangkok universities, in a study initiated by low levels of digestive cancer in Thais are suggesting that the combination of lemongrass, kaffir lime leaves, and galanga inhibit certain cancers. Add to that ginger, basil and that wondeful bitter cucumber already established as helpful in increasing resistance to digestive cancers and an Asian diet is looking even better.

The economic implications of unification trends between North and South Korea are addressed by this Website from the Institute for International Economics. Many resources here...

Singapore: December 14th 2000

Hari Ini dan Asia Corporate Malaysia befuddles again: Just one day after Malaysia Airlines (MAS) Executive Chairman Tajudin announced that 3 airlines were "very very interested" in buying into the airline, two of them - Swissair and KLM denied having any plans at the moment, and the third - Qantas, through its incoming cheif executive, stated that though interested "...(we) will not plan any further talks until it is made clear to us by the Malaysian government what is on offer and what will be available..."

Such situations mirror a key problem for foreign investors in an otherwise high potential Malaysia - deals go bad at the last minute and they are not quite sure where they stand. Part of it is due to the Malaysian way - being very polite, Malaysians are less likely to be brutally frank during negotiations on the spot. Only when you are not face-to-face, do the problems start to become apparant. SingTel was also a victim earlier this year when its planned venture with TIME was scuttled at the last moment from the highest levels of Malaysian government, citing disquiet with foreign control of a major national telco asset. Carlsberg spent millions several years back as a major sponsor of the Commonwealth Games, to be told literally a couple of weeks before the event, that their association was not "appropriate" for a Muslim country.

Tajuddin, one of Finance Minister Daim's mates, was propelled into leadership of MAS several years back, but his relationship with Mahathir has been rocky for most of those years. His relationship with the majority of MAS senior executives is not much better. Given that, the unwillingness of any possible MAS suitors to commit before finalising every last detail is not surprising and indeed very sensible.

Privatization plans in Thailand have been hold on for several months in the lead up to the general election, and a general anti-foreigner sentiment fueled by Thai establishment power blocs, both in government and business, as well as more publically by the party of favoured PM hopeful Thaksin - the Thai Rak Thai (Thai Love Thai) party.

Street Intelligence is that pro-business Thaksin will forge ahead with privatisation of state enterprises, necessarily involving foreign investment, and once safely ensconsed in government will downplay the nationalist sentiment he is counting on to get him there.

Barak's resignation as Israeli PM will add fuel to the current escalation of conflict between Israel and Palistine. The present is not a good time for a change of leadership of either side, as emotions may well influence the result. With a possibility of a World Wide recession becoming more of a reality every day, 2001 is shaping to be a critical and dangerous year for power politics both in Asia and worldwide.

Kuala Lumpur: December 8th 2000

Hari Ini dan Asia Sony, currently around the top of our Great Asian Brands Survey, and despite Japanese economic woes, is seen as a hotpick by Worldy Investor.

It was many years back that McDonalds made it into Tiananman Square, and there are mixed feelings on Starbucks latest outlet in wait for it - The Forbidden City. We still prefer a big juicy Peking Duck.

Pilots from 30 airlines are threatening to boycott Taiwanese airspace if they do not allow the 3 Singapore Airlines (SIA) pilots involved in the SQ006 Taipei crash to return home according to the president of the International Federation of Air Line Pilots' Association. The investigation is still continuing, but there must be some concern that so far practical response from SIA and Taiwan has tended to apportion blame to individuals rather than other elements in the system. Traditionally, the captain takes responsibility for a flight, but this must not be allowed to detract from fixing a whole system which failed passengers dramatically. There is a system management problem here too, and as in any organizational system, shop floor individuals commonly take the flak for management problems.

Most business people in the Philippines are hoping against hope that Estrada resigns. Mainly as a reversal in the Philippine rapidly declining economy will not come until well after any resolution of political leadership problems. The Philippine Letter is pessimistic.

Who will be the winner from the mass of IT cyber villages developing all over Asia?. Malaysia grabbed the early publicity with their campus themed MSC, Singapore steadily developed their "intelligent island", Hong Kong jumped into the fray with their own PCCW/Li backed cyberport, Thailand is making noises regarding a Phuket cyberport, and Taiwan and Korea are making their own claims. For Taiwan, who are losing manufacturing operations to lower wage level markets such as mainland China and South East Asia and facing increasing unemployment, the New Economy offers a lifeline for possible future recession. The reality is that each venture must reach out to targeted sectors in the IT foreign investment market. There is far too much competition for any economy to pin their hopes on a currently battered global IT industry without some smart strategic positioning. See also the special report from the South China Morning Post on developments among the competitors covering Hong Kong, Singapore, Taiwan, Shenzhen, Beijing, Shanghai and Malaysia. Highly recommended

Malaysians and Singaporeans are being offered a very special deal at the perfectly located Concorde Hotel in Kuala Lumpur. $98 RM (less than $25 US) for room and breakfast makes the Concorde best business hotel deal in Malaysia this Ramadam month.

Lee Kuan Yew was conferred an honorary doctorate at the Chinese University of Hong Kong yesterday, amidst angry protests by those who remember Lee's dictatorial ways while building Singapore. Still Hong Kong is part of China now, and Lee's leadership style is highly admired in Beijing. Golfer Tiger Woods has also been a recent recipient of an honorary gong while visiting Bangkok. Woods is often referred to as a "Thai" by golf commentators looking for a touch of esoterica, and by Thais desperate for world recognition of Thai achievement. In reality, only his mother is Thai. Like "Australian" Greg Norman, designated as the "Great White Shark" by commentators and the "Great White Yank" by knowledgeable Australians, if you look like a Yank and sound like a Yank - you ARE a Yank.. Woods didn't have time to travel out to Kasestart University to receive his degree, - this genuflective university obliged by sending their top boffins to his hotel and conducting a 20 minute ceremony between practice rounds. Yet another all too common case of Face over Substance.

Kuala Lumpur: December 6th 2000

Hari Ini dan Asia If you are flying the Korean ASIANA airline tomorrow, change your booking. Pilots are striking tomorrow (Thursday) in support of their claim to reduce their hours. Seems they are complaining of becoming "drowsy in flight". Passengers flying ASIANA today are advised to keep on buying strong black coffees from the hosties and sending them post-haste to the flight deck.

Estrada's Senate trial begins tomorrow (Thursday). Raoul, we are sure, will be sending his reports from the street.

As the Gore/Bush sideshow draws to a close, it was interesting to note that a survey polling respondents in around 20 countries revealed last week that in only one country was likely winner Bush preferred. No surprise that that country was Malaysia, where Gore got into "air panas" a couple of years ago by praising "brave reformasi supporters" while at an international talk fest in Kuala Lumpur.

In Malaysia, any comments that don't reflect the government line are reported as being "anti-Malaysian". As in many other Asian countries, it is best for pragmatic foreigners more interested in business development rather than issues of the soul to follow the old dictum.. "...if you cant say anything good, dont say it all...".

At the time of course the Mahathir/Gore spat was good news for both gentleman, who by emphasising their own values, looked good in each of their own constituencies. Mahathir was able to demonstrate how rude foreigners were and their liking for imposing Western values on poor countries, and Gore reinforced US values on free speech.

Most Asian élites however are quite happy about the prospect of a Republican president. The feeling is that it will reduce pressure from the US on issues beloved by soft liberals like the US Democrats and UK Labor - human rights and free trade. There was always discomfort with the soft liberal new-age baby-boomer Clinton administration, in a region where most leaders were approaching twice his age.

Party Party Party!: After the NASDAQ's biggest one day rise in history of 10% last night, a solid upsurge in the DOW and European stock markets, a Greenspan announcement suggesting interest rate increases, and a resolution on the horizon to the Gore/Bush show, Asian stock markets are displaying almost universal solid gains this morning. Even Indonesia and the Philippines are up, and it's a smiley face Wednesday!

The predominantly Japanese funded Asian Development Bank predicts that regional Asian economies will exceed yearly growth expectations and are headed toward a soft landing in 2001. An average growth of 7.1% is estimated for this year, reducing to 6.4% in 2001, due mainly to lower global growth. This year's growth was characterized by strong export growth, positive external balances and firm domestic demand. China is most bullish with 8% growth expected this year and 7.5% next year, reflecting also the view of respondants to our own Asia market prospects survey.

If you are looking for country specific Web search engines for Asia, including local language sites, you may want to try Global Direct.com's Far East Guide, with several hundred search engines listed by country.

More Asian Business Article Resources: The Asia Society provides reports from time to time on their Asia Source Special Reports Archive. A US view on Asia policy. The left-leaning UK Economist newspaper also provides free articles. Both pages are updated every couple of weeks. Don't forget also our own Asia Business News Portal which provides links to reviewed articles from AsiaWeek, Far Eastern Economic Review, Forbes, Asia-Inc, Business Week Asia edition, and last but not least our own Asia Business Street Intelligence Ezine daily.

APMF Travel Alert for travellers arriving at the Kuala Lumpur International Airport. Two friends of the forum have reported hand luggage being nicked as you cross from the refined atmosphere of baggage claim to the rude awakening of the arrival hall. Despite the ultra modern facilities, arrive at a busy time, and you are jumped on by scores of illegal drivers suggesting you use their services (same price but you avoid the queue they say). Add to that vendors from the stalls shouting out for your patronage, and it's akin to stepping into Chinatown on the night before Chinese New Year. Keep a very close eye on briefcases and small items on your trolley.

Bangkok: Friday December 1st 2000

Hari Ini dan AsiaCoca-Cola Thailand launched the biggest soft drink sampling ever in Thailand this week with the launch of Schweppes Manao Soda, containing real lime juice. Taglined "Preow zaa sajai!", it is the first beverage Coca Cola Thailand has created specifically for local consumers. It follows months of taste testing and extensive market research. The success of the launch will have implications for the feasibility of local brands throughout Asia, currently under major threat from global brands.

A blow for Boeing this week, as Qantas opted for Airbus to replace its ageing fleet. It is a massive investment, which gave some Qantas shareholders pause, given the stock drop that followed.

Indonesian President Abdurrahman Wahid moved to a new level of befuddlement with his strong criticism of Singapore's attitude to Malays, and their willingness to help only when it suits them. Add to this his questioning why English was the language used in ASEAN meetings rather than Arabic, and his invitation to Malaysia to consider boycotting water supplies to Singapore and it does seem that Gus Dur has lost direction. While several in Indonesia are willing to take his place, Wahid remains as there is little credible alternative for the short term.

South East Asia is experiencing increasing internal conflict over timetables for tariff reductions, and criticisms of Singapore's bilateral agreements with international countries rather than holding an ASEAN line. While the Asian crisis caused certain ASEAN countries to move into an economic bunker mentality accompanied by anti-Western propaganda, Singapore, though admittedly in a far better position, has quietly avoided rhetoric and taken care of business. Not surpisingly, other Asian states are privately (and not so privately), are threatened by Singapore's policy of engaging the global economy.

Mahathir's BN surprise defeat in the Luna by-election on Wednesday has caused observers to revisit their perception that the Malaysian opposition is dead in the water. Mahathir posters were very evident on the streets of Lunas prior to the election, but his pre-election visit was hastily cancelled when BN was advised of the strong possibility of defeat and the inadvisability of being associated. BN's dominant Malay party UMNO, grown arrogant through many years in power, is reforming at snail's pace - the question is whether they can catch up to reality before the next general election, scheduled for 4 years. At the slow pace of restructuring and reform in Malaysia at present however, that may not be long enough....

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