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The Sinar Mas group of Indonesia has grown to become the second biggest conglomerate in the country, based upon sales figures. It acquired the country's third biggest bank, Bank Internasional Indonesia, in 1982. The group also controls an edible oils company and two pulp and paper companies. Property holdings include hotels and shopping in or near Jakarta.

India's printed media markets are expanding and changing quickly, shifting from English to regional languages and shedding an often staid past and close ties to the government. Even The Times of India now pursues hot stories of general interest, but it fights for a pool of English readers that is not growing, despite the expansion in English-language publications. Many of the largest publishing groups are now developing new businesses in entertainment and telecommunications, while the press becomes more independent.

Kuala Lumpur Stock Exchange (KLSE) officials intervened at the height of a bull market to quell a burst of speculative trading. The price of Union Paper Holdings Bhd (UPHB) stock was being driven up by traders accused of price manipulation and short-selling. Critics charge that the KLSE cost investors significant sums when it fixed the price for trading. KLSE officials defend their move as a necessary stabilization of the market and its credibility. KLSE's actions have had only a limited negative effect on the bull market.

Indonesian President Suharto has virtually approved financing for Barito Pacific Timber Group's Tanjung Enim Lestari project despite a limit on foreign borrowings. Suharto directed government ministers to help expedite financing for the 500,000 hectare industrial-tree estate which would supply wood to the pulp facility. Barito's financial advisers are also setting up a US$800 million financing package for the project's initial pulping line. The project, which may cost around US$2.5 billion, is expected to be completed by 2000.

The two-week public tender offer by Thailand-based Phoenix Pulp & Paper ended without result on Jul 5, 1994. A consortium had offered 25.2 million shares, or 21% of outstanding shares, in what amounted to an attempted hostile takeover, The consortium included three companies: Thai-based Globex, a rubber company; Thai-based Jalapratan Cement; and Singapore-based Grand Forest. Globex leader Kirit Shah, a Phoenix board member, was instrumental in engineering the tender offer. Thailand's Securities and Exchange Commission is investigating the takeover attempt.

Competition is growing among Malaysian newspapers as government media controls have been eased and advertising revenues have been stretched among an increasing number of papers. Critical reporting of the business sector has been allowed by the government, but most papers avoid politics as a topic. Malay-language newspapers have been increasing their ad revenues at the expense of English and Chinese-language dailies as young Malays become more urbanized and professional.

Authorities in China have increased efforts to prevent rumours, premature reports and misinformation from being printed by the country's financial newspapers. However China's stockmarkets are expected to remain highly volatile as they do not see the connection between the free flow of information and stable markets, according to a Hong Kong investment bankers. Western financial professionals believe that accurate information, a more active media and greater company disclosure is the way to combat rumours.

Burma's currency, the Kyat, has fallen on the black market to 250-300 to the dollar, during the country's worse economic crisis since 1988. The government's mismanagement has also fuelled inflation, depleted reserves and discouraged foreign investment. The crisis dates back to the siezure of power by the State Law and Order Restoration Council in 1989, and in 1992, when Gen. Than Shwe replaced Slorc Chairman Gen. Saw Maung, and a three tier currency regime was created. Political unrest has also kept tourists away from the country, despite the 'Visit Myanmar Year' campaign in 1996.

Asia is seeing a rash of media exposes of high level corruption, and newspapers in New Delhi, Taipei Tokyo and Seoul are full of stories about corruption. However, little of the reporting on corruption in newspapers and on TV networks is original, with the media content to follow those pursuing the corrupt. This is partly due to restrictive censorship laws and the relatively new press freedom in some countries such as Taiwan. In Japan, investigative reporting is not rewarded, but some believe that by simply placing the spotlight on those pursuing the corrupt, the media can help the fight against corruption.

There are 10 major national daily newspapers in S Korea which are competing for readers. Delivery boys steal newspapers from rivals while readers are not always able to read the newspapers they want. The newspaper publishing industry is dominated by conglomerates such as Samsung Group. There are possible conflicts of interest and political motives may influence some owners since only the major four newspapers are reported to be profitable. Public opinion can be molded to favor conglomerates and information can be obtained on government departments which could be useful in obtaining contracts.

Overseas investment houses remain eager to participate in India's market but do so gingerly due to problems with pilfering and delays at the Bombay Stock Exchange. In July the exchange converted to screen-based computer trading, but scrip must still physically pass from seller to registrar to buyer, a process that ideally takes two months but frequently stretches to four, or a year. A bill to modernize the system and facilitate scripless trading should go before Parliament this year, says the Finance Ministry.

Pres Fidel Ramos's government and the Cojuangco family dispute ownership of the Philippine Long Distance Telephone Co (PLDT). The Cojuangcos base their claim on possession of a stock certificate giving them 46% of the Philippine Telecommunications Investment Corp which in turn controls 24% of PLDT. On Apr 15, 1993 the Cojuangcos sued for the 46% share. However, the government contends that former dictator Ferdinand Marcos gave the 46% stake to the Cojuangcos through a dummy corporation called Prime Holdings. Right or wrong, having the stock certificate may decide the case in the Cojuangcos' favor.

The Indian government is seriously pursuing the prosecution of all involved in the securities trading scandal that could cause some banks nearly 31 billion rupees in losses. State Bank of India Deputy managing director C.L. Khemani and broker Harshad Mehta were placed under arrest without bail for fraud and corruption. To avoid delays in the Indian court system, the government appointed a special court under a Supreme Court judge to try the case and a custodian to seize the defendants' fraudulently acquired assets. Hopes were raised that the scandal could prompt financial market reforms.

The Philippine government has settled its dispute with creditor banks over the financing of the Bataan nuclear-power plant and has rescheduled a US$5 billion debt. The government has refused to operate the nuclear plant because of alleged fraud in the plant's bidding and because of construction defects. Under the plan, US$344 million of nuclear-plant debt would be converted into bonds. The government may still, however, sue banks implicated in loan fraud.

Seven years after Indonesia's National Defense and Security Council (NDSC) member Ibnu Hartomo signed promissory notes amounting to $3 billion, cases against Indonesia and businessmen selling the nullified notes are again turning up. Hartomo and Hasan Zubaidi of Zubaidi Trading exchanged promissory notes in 1985. Zubaidi's notes were subsequently determined worthless and the Bank of Indonesia nullified the notes signed by Hartomo in 1986. Indonesia is not accountable for the notes, according to lawyers and government officials, but companies and individuals who possess them argue that the government is liable for notes bearing the signature of NDSC members.

The Nanfang Weekend, a Chinese provincial, government owned newspaper, has become the country's top selling weekend paper with its stories of bribes, exploitative city officials and the use of public money to pay for celebrations. The paper had net profits of 17 million renminbi in 1996 and expects 20 million renminbi in 1997. The main daily papers have been under pressure to become profitable, but they are hampered y political constraints, limiting their commercial appeal. Producing additional titles such as the Nanfang Weekend, which is an offshoot of Nanfang Daily, is a way round the obstacles.

Oriental Press Group's delayed the start of its new English-language Hong Kong newspaper, the Eastern Express, from Jan 20, 1994 to Feb 1 due to computer snafus. The new paper will compete with the well-established South China Morning News and Hongkong Standard for the territory's profitable English-language market. This market generated $75 million for the Post alone in the year ending Jun 30, 1993. Oriental Executive Dir Herman Hui expects the Express to break even in its first year. Many Post editors unhappy with their papers stance toward China have joined the Express.

China's white paper on reunification with Taiwan shows that the Peking government has not renounced the use of force against Taiwan. The paper defends the possible use of force on the grounds that such action may be necessary to defend China's sovereignty. But this argument is dishonest since Taiwan is not a military threat to China. Any Chinese attack on Taiwan would therefore be an unprovoked act of aggression against a free people. China's position, like its opposition to UN membership for Taiwan, betrays a lack of principle.

Stephen Marvin, head of the research team at Jardine Fleming in Seoul, South Korea, regards his main task as ensuring that investors do not lose money. He feels that he simply presented the facts when he wrote in his collection of stockmarket reports, entitled 'A Second Crisis is Coming to Korea,' that the South Korean economy could still face difficulties. However, he welcomes public discussion, and accepts that he cannot ever be infallible. He feels that continued state intervention in South Korea's banking system to support failing companies is deterring investors.

China should issue a white paper on defense to allay its neighbors' concerns and reduce the chance of a regional arms race. Japan, Australia, and other countries have already done so, making their defense strategies more transparent. China's continuing need to tell other countries' officials that China is not aggressive reflects continued anxiety, fueled by China's rapid military build-up and military technology purchases. China also continues to test nuclear weapons and sell weapons abroad.

Thailand's first credit-rating agency, Thai Rating and Information Services Co (Tris), is opening with broad support from the financial industry and the government. They hope it will make investment grade corporate-paper issues possible, boosting domestic savings and stabilizing the money markets. The government owns 19% of Tris, which is the second such agency in the Assn of South East Asian Nations. Bond issuers will pay Baht 400-600,000 for a rating. Thailand's SEC has yet to give rulings on several related subjects.

Chinese journalist Wu Shishen has been sentenced to life imprisonment for leaking the text of General Sec Jiang Zemin's Oct 1992 speech to the Chinese Communist Party's 14th National Congress one week before the speech was officially made public. Wu's initial 10 year sentence was lengthened to life at Jiang's demand. This overreaction to a minor embarrassment shows that China is far from tolerating the free flow of information that is essential to making economic reform work.

India's budget reform in February may be a commendable move but the government's privatization program is hardly moving even when Narasimha Rao considered it the priority step in his administration'seconomic liberalism restructuring program started in Jul 1991. As a result, many people are doubting the government's sincerety and criticizing the policies. Some think that the bureaucrats are to blame because they don't want their present vested interests to be jeoperdized.

Eight of Afghanistan's major political parties have finally reached an agreement after six days of negotiations brokered by Pakistan. The peace and elections agreement, however, was not without setbacks such as criticisms and the pessimistic outlook even among signatories that the new Islamabad peace accord is no better than the other previous peace initiatives. It also carried political repercussions such as suspicions that the agreement only served to favor hard-line Pashtun leader Gulbuddin Hekmatyar and his Hizbe Islami faction.

The statutory status recently given to the Securities and Exchange Board of India (SEBI) is being questioned because of the SEBI's alleged lack of independence from the Finance Ministry. The ministry names the SEBI's board of directors and may terminate their appointment at the Ministry's discretion. New rules promulgated by the SEBI must be sanctioned by the ministry, as well as the indictment of erring companies. Indian politicians oppose the SEBI's independence because their control over corporations and business leaders will be reduced.

The Hongkong government is planning to implement measures to protect bank deposits as a result of the financial disaster caused by the bank run on the Bank of Credit & Commerce. This deposit insurance is proposed to cover 100% of deposits with a maximum of HK$100,000 and will be funded by fees on bank deposits. However, it is suggested that the HK$100,000 limit is not enough to provide security for Hongkong deposits and prevent bank runs. It is also suggested that forced insurance for all banks is unfair and that it should be left to depositors to buy insurance for their deposits.