TCRAP_Public/021023.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                   A S I A   P A C I F I C

         Wednesday, October 23, 2002, Vol. 5, No. 210

                         Headlines

A U S T R A L I A

ANACONDA NICKEL: Annual General Meeting Set for November 20
ANACONDA NICKEL: Issues 1Q02 Activities Report
COLES MYER: Peers Oppose Re-election of Director Solomon Lew
COLES MYER: Letter Opposes Mr. Lew's Re-election as Director
COLES MYER: Investors' Group Demands Board Composition Change

UECOMM LIMITED: Offering a Facility to its Shareholders


C H I N A   &   H O N G  K O N G

MASSIVE RESOURCE: 2002 Net Losses Widen as Sales Drop Further


I N D O N E S I A

ASTRA INTERNATIONAL: Says Second Restructuring Deal Nearly Done


J A P A N

DAI NIPPON: Nippon Hondo Rescues Midsize Contractor
FUJITSU LIMITED: Updates Status on Collaboration in SoC
KK M&R: Court Approves Special Liquidation
MAEDA ENVIRONMENTAL: Enters Civil Rehabilitation Proceedings
MARUBENI CORPORATION: Selling Brazilian-made Jets in Japan

MAZDA MOTOR: Re-balancing Domestic Production Capacity
NIPPON YUSEN: Liquidation of Luxembourg Unit
STT KAIHATS: Golf Course Enters Civil Rehabilitation


K O R E A

DAEWOO MOTOR: Increases Sales Staff by 300 in Korea
DAEWOO MOTOR: GM Drops Bid to Acquire Plant
HYNIX SEMICONDUCTOR: Creditors Aim to Stabilize Ops First
HYUNDAI ENGINEERING: Restructuring Erases Four Exec Positions
LG ELECTRONICS: Plans to Reduce Debts to US$1.6B Next Year


M A L A Y S I A

DATAPREP HOLDINGS: Indemnifies Acer Sales for Unit's Liability
HUME INDUSTRIES: Rights Issue Oversubscribed by 4.45%
KIARA EMAS: Court Extends Restraining Order
MGR CORPORATION: Moratorium Period Extended to October '03
MYCOM BERHAD: Alliance Merchant Bank Alters Restructuring Plan
PANTAI HOLDINGS: Proposes Share Buy-Back Scheme
PERAK CORPORATION: Conditions Tied to Audrey Pact Extended
RNC CORPORATION: Affin Merchant Terminates Advisor Appointment
SIME DARBY: Voluntarily Winds Up Troubled Affiliate
SURIA CAPITAL: Commences Suit Against Alliance Bank Malaysia


P H I L I P P I N E S

BAYAN TELECOM: NTC Allows Three Years to Install Mobile System  
NATIONAL BANK: Approves Sale of P1.9B in Assets
PHILIPPINE AIRLINES: Banks Deny Retirement Benefits' Release
PHILIPPINE AIRLINES: Hosts "Assembly of Presidents" in AAPA
PHILIPPINE LONG: Fitch Affirms BB- Rating; Outlook Negative


S I N G A P O R E

ASIA PULP: Likely to Miss Profit Target After Bali Attack
FLEXTECH HOLDINGS: Clarifies Business Times Report
NEPTUNE ORIENT: Shares Up 4.9% on Debt Reduction Efforts
SEMBCORP INDUSTRIES: SCM Remains 63% Subsidiary


T H A I L A N D

KRUNG THAI: Begins Work on New Online Banking System

     -  -  -  -  -  -  -  -


=================
A U S T R A L I A
=================


ANACONDA NICKEL: Annual General Meeting Set for November 20
-----------------------------------------------------------
Anaconda Nickel Ltd's ninth Shareholder's Annual General Meeting
(AGM) will be held at:

Time: 11.00 am
Date: Wednesday, 20th November 2002
Place: Parmelia Hilton
Swan Room
Mill Street
Perth WA 6000
Ordinary Business

1. Accounts and Reports

The tabling and consideration of the Financial Statements and
Directors' Declaration and Report for the year ended 30 June
2002, together with the Auditor's Report to the Members of the
Company.

2. Directors

To elect directors, each as a separate resolution:

(a) Mr. Johannes van Gaalen who was appointed on 23 January 2002
to fill a casual vacancy retires in accordance with the
Company's constitution and being eligible, offers himself for
re-election;

(b) Mr. Malcolm Macpherson who was appointed on 11 April 2002 to
fill a casual vacancy retires in accordance with the Company's
constitution and being eligible, offers himself for re-election;

(c) Mr. James Campbell who retires by rotation in accordance
with the Company's constitution and being eligible, offers
himself for re-election;

(d) Mr. John Morrison who retires by rotation in accordance with
the Company's constitution and being eligible, offers himself
for re-election.

3. Special Business
To consider and, if thought fit, pass, as a special resolution
of the Company, the following resolution:

"That the Company hereby authorizes the Board of Directors to
grant 5 million options to subscribe for ordinary shares to
Peter Johnston, the CEO of the Company, on the following terms
(Options):

- exercise price of $0.69 per share.
- the Options may be exercised in three tranches being:

1,250,000 after 27/11/03 if the Company's share price exceeds
$1.04
1,250,000 after 27/11/04 if the Company's share price exceeds
$1.21
2,500,000 after 27/11/05 if the Company's share price exceeds
$1.38

- all Options are exercisable after 2 years of grant if the
Company's share price exceeds $1.38 on any 10 days out of 20
consecutive trading days within 2 years of 28 November 2001

- expiry date of 28 November 2006.

- the Options are not transferable during the life of the
Options.

- unexercised Options will lapse if the option holder ceases
employment with Anaconda.

- Options will be reorganized as required by ASX Listing Rule
7.22 on a reorganization (including consolidation, subdivision,
reduction or return) of issued capital.

- The terms and conditions of the Options may only be amended by
special resolution of the Company in general meeting in
accordance with the ASX Listing Rules.

EXPLANATORY NOTES ON SPECIAL BUSINESS

The following information is provided to assist shareholders in
their consideration of the resolutions contained in the attached
Notice of Annual General Meeting (Notice).

EXECUTIVE OPTIONS

Resolution 3

As a component of Mr. Johnston's employment contract with
Anaconda, the Board has resolved to grant to Mr. Johnston,
subject to approval by shareholders at the 2002 Annual General
Meeting of the Company, 5 million options over unissued stock in
Anaconda exercisable as detailed below. The Board's intent in
granting Mr. Johnston the options is to encourage him to ensure
the Company performs well for all shareholders through long-term
growth and increasing shareholder value.

The terms of the Options are as follows:

- Exercise price of $0.69 per share, being the average of the
closing price of the shares on the ten business days prior to
the date on which the Company announced to the Australian Stock
Exchange the appointment of Mr. Johnston as the Chief Executive
Officer of the Company.

- The Options may be exercised in three tranches being:
1,250,000 after 27/11/03 if the Company's share price exceeds
$1.04
1,250,000 after 27/11/04 if the Company's share price exceeds
$1.21
2,500,000 after 27/11/05 if the Company's share price exceeds
$1.38

- All Options are exercisable after 2 years of grant if the
share price exceeds $1.38 on any 10 days out of 20 consecutive
trading days within 2 years of 28 November 2001

- The Options have an expiry date of 28 November 2006 being 5
years from date of grant.

- The Options are not transferable.

- Unexercised Options will lapse if the option holder ceases
employment with the Company.

- Options will be reorganized as required by ASX Listing Rule
7.22 on a reorganization (including consolidation, subdivision,
reduction or return) of issued capital.

- The terms and conditions of the Options may only be amended by
special resolution of the Company in general meeting in
accordance with the ASX Listing Rules.

Mr. Johnston has abstained from making a recommendation that
shareholders approve resolution 3 on the basis that he has an
interest in the outcome of the resolution.

The Board considers that the granting of the options to Mr.
Johnston and the terms of the options provide an incentive to
Mr. Johnston and is reasonable when compared to the current
market. The Board therefore seeks approval from shareholders to
issue 5 million options to Mr. Johnston as indicated in
resolution 3.

General Information relating to resolution 3

The information set out below may be of assistance to
shareholders in their consideration of resolution 3.

At the date of this notice unissued ordinary shares under option
are:

Expiry Date Exercise Price Number of Options Equivalent No. of
Shares

31 December 2002(1) $2.40 5,533,328 5,533,328
28 November 2006(2) $2.50 10,000,000 10,000,000
28 November 2006 (3) $0.69 5,000,000 5,000,000
4 December 2006 $0.69 1,000,000 1,000,000

(1) 3,980,000 options over 3,980,000 unissued shares issued to
former Directors of the Company were approved by shareholders at
the Company's annual general meeting on 28 November 2001. 31
December 2002 share options are fully vested and fully
transferable.

(2) In the financial year ended 30 June 2001, the Board resolved
to issue, upon shareholder approval, 10,000,000 options to Mr.
Forrest, expiring 5 years after the date of grant with an
exercise price of $2.50 as part of a termination package. The
options were approved and granted by shareholders at the
Company's annual general meeting on 28 November 2001.

(3) Subject to shareholder approval at the 2002 annual general
meeting These options do not entitle the holder to participate
in any share issue of the Company or any other body corporate.

During the year, 3,092,500 options over 6,185,000 unissued
shares maturing 31 December 2001 with an exercise price of $6.00
expired. No options were exercised during or since the end of
the financial year.

For more information, go to
http://bankrupt.com/misc/tcrap_anaconda1022.pdf


ANACONDA NICKEL: Issues Q102 Activities Report
----------------------------------------------
Anaconda Nickel Limited announced that the production at its
Murrin Murrin operations was 7,629 tonnes of nickel and 475
tonnes of cobalt for the quarter ended 30 September 2002, a
slight decrease on the previous quarter, with operational
problems through July and August.  In September production
recovered to expected levels.  While the underlying trends such
as plant recovery improved, overall plant integrity remains the
key issue.  The completion of the capital program is essential
to delivering plant performance.

During the quarter a new water supply borefield was commissioned
on time and under budget and this will secure our longer-term
water supply.

The Murrin Murrin Joint Venture had a $1.9 million cash flow
deficiency in the September quarter (from operations and after
capital and working capital requirements but before corporate
overheads, hedging, interest and other financing costs),
reflecting the below budget production in the quarter. Net sales
revenue was $105 million.

The Company continues to operate with the cooperation and
agreement of its secured creditors as it works toward a
restructuring of debt and a recapitalization of the ANL Group.
As required under its agreement with secured creditors,
Anaconda's two subsidiaries, Murrin Murrin Holdings Pty Limited
(MMH) and Anaconda Nickel Holdings Pty Limited (ANH), lodged
scheme documentation with the Supreme Court of Western Australia
on 15 October 2002 to commence the approval process for the
creditors' schemes of arrangement to be undertaken by ANH and
MMH. As previously announced, Anaconda has secured an
underwriting agreement for a renounceable rights offer to fund
its proportion of the cash payment to its secured creditors
under these schemes of arrangement. The prospectus relating to
the rights issue is expected to be available late December 2002.

On 10 September 2002, the arbitrators of the Fluor Arbitration
delivered their interim award covering the first phase of the
arbitration. The net amount awarded to the Murrin Murrin Joint
Venture participants was $39.8 million. Costs have yet to be
awarded. Anaconda and Fluor have both sought leave of the Court
to appeal the interim award, which must be granted before either
party can proceed with their appeal. Anaconda expects these
applications for leave to appeal will be heard in November 2002.
In the meantime Phase 2 of the arbitration is continuing, and
Anaconda Operations Pty Ltd, on behalf of the Murrin Murrin
Joint Venture, will deliver its contentions for this phase on 8
November 2002.

Under the terms of the agreement with senior secured creditors,
the Joint Venture participants will retain 25% of the first
AU$400 million awarded to them in Phase 2.

On 4 October 2002, MMH drew down US$3 million on the Senior
Secured Project Loan Facility provided by Glencore to the Murrin
Murrin Joint Venture to meet cash call requirements following
below budget production in the quarter and the adverse finding
of the NSW Supreme Court that Anaconda was liable to pay a
success fee on the US$420 million project financing raised by
MMH in the US capital markets in 1997, a sum of AU$2.6 million.


SAFETY

The Lost Time Injury Frequency Rate (LTIFR) has increased from
3.79 for the June quarter to 5.93 for this quarter. The combined
LTI&MTIFR (Medically Treated Injury Frequency Rate) shows a
similar increase from 6.82 to 8.31 for the same periods against
a target of 6.00.

A cross functional team was established in the quarter to
conduct a complete review of all safety policies, systems and
procedures at the plant.

This decrease in safety performance is considered to be due to a
combination of both turnover of employees and significant extra
contract personnel on site to carry out shutdown and other
related maintenance work. This has resulted in a increase in new
personnel working in an unfamiliar environment.

ENVIRONMENT

No significant environmental incidents occurred in the quarter.

MURRIN MURRIN JOINT VENTURE
(Anaconda's Equity 60%)

Production of 7,629 tonnes of nickel and 475 tonnes cobalt for
the September quarter represented a decrease of 5% and 7%
respectively from the previous quarter.

SUMMARY OF PRODUCTION

                          QUARTER    FINANCIAL YEAR   FINANCIAL
YEAR
                          ENDED      TO DATE          TO DATE
                          30/09/2002 30/09/2002       30/09/2001

Total 100%
Nickel (tonnes)           7,629      7,629            7,467
Cobalt (tonnes)             475        475              407

Anaconda's Equity (60%)
Nickel (tonnes)           4,577      4,577            4,480
Cobalt (tonnes)             285        285              244


A number of challenges impacted production volumes. In July,
scaling of the hydrogen sulphide precipitation vessel and
associated piping followed by a failure of the vessel agitator
contributed to a poor production month. August production
volumes were impacted by shutdowns caused by an electrical bus
bar failure, a hydrogen flare header blockage and a power
outage. The shutdowns were unplanned, costly and all had
extended overruns. Key technical and engineering solutions were
applied to prevent a recurrence of these issues. Plant recovery
and production did improve towards the end of August, but were
unable to offset the lack of plant availability. September
performance was significantly improved.

There has also been a significant improvement in the regular
leach autoclave maintenance. The shutdown of autoclave 1 in
September came in on time and under budget. A new management
approach has been adopted with a cross functional team coupled
with intense communications and improved shutdown procedures.
This latest shut will now become the standard operating practice
for all plant shutdowns going forward.

A plant integrity audit and capability study was commissioned
during the quarter to ensure a more robust platform on which to
build plant performance is established.

MARKET CONDITIONS

COMMODITY PRICES         PRICES AT   AVERAGE FOR    AVERAGE FOR
                         30/09/2002  QUARTER ENDED  QUARTER
ENDED
                                     30/09/2002     30/09/2001

LME Nickel US$ per tonne    6,450      6,837          5,498
           US$ per lb       2.93       3.10           2.49

Cobalt US$ per lb           6.50       6.49           8.98

Exchange Rate AUD:USD       0.5435     0.5480         0.5141


NICKEL

Nickel consumption remained strong with robust growth in South
LME stocks decreased almost 7,000 tonnes over the 3 rd quarter
however, the Nickel price was forced down under the weight of
gloomy economic news.

COBALT

The lack of demand for Cobalt has driven the price to a
historical low of US$ 5.95/LB in August 2002. It has slightly
recovered since then but the demand situation has not yet
changed and unless it picks up during the 4 th quarter of this
year we would not expect to see much change in prices.

For a copy of Anaconda's quarterly report for entities admitted
on the basis of commitments, visit
http://bankrupt.com/misc/tcrap_anaconda1022p2.pdf


COLES MYER: Peers Oppose Re-election of Director Solomon Lew
------------------------------------------------------------
Eight other directors of Coles Myer Ltd. are opposed to the re-
election of Solomon Lew to the firm's board during the next
annual general meeting.

According to a company press release, Mr. Lew stands for re-
election on November 20, 2002.  The statement says shareholders
will be furnished a copy of the letter opposing a fresh mandate
for Mr. Lew.

"The Board and Directors of Coles Myer has reviewed and
finalized the materials to be forwarded to shareholders for the
Annual General Meeting.  The materials will be dispatched to
shareholders on October 22, 2002 after printing.

"Included in the materials will be a letter from the Australian
Shareholders' Association; and a letter from eight directors of
Coles Myer outlining their reasons for opposing Solomon Lew's
re-election as a director," the statement read.

The company said Mr. Lew was invited to provide a response to
the eight directors' letter to be included in the materials to
go to shareholders, but he has provided no materials for
inclusion thus far.

For more information contact Scott Whiffin by Phone: 03 9829
5548 or Amanda Fischer by Phone: 03 9829 4521


COLES MYER: Letter Opposing Mr. Lew's Re-election as Director
-------------------------------------------------------------
We are 8 of the 10 current directors of CML.  We all oppose the
re-election of Solomon Lew as each of us believes that it is in
the best interests of CML shareholders that Mr. Lew should not
be re-elected.

The main reasons for our opposition are as follows:

We consider it is time for change in the composition of the
Board of CML. The Financial Statements for the company for the
financial year ended 28 July 2002 list ten director-related
entities of Mr. Lew, which had transactions with the CML Group
during the year.  The types of transactions (which are
extensive) are set out in the Financial Statements.  Some of
these director-related entities or other related parties of Mr.
Lew also supply goods to competitors of CML or are involved in
businesses, which directly compete with CML.  We consider that
it is not compatible with currently accepted principles of good
corporate governance for Mr. Lew to continue to serve as a CML
director in such circumstances.

We do not suggest that Mr. Lew or his related parties or
entities have acted improperly or would do so in the future and
our opposition to Mr. Lew's re-election does not concern the
technical legality of Mr. Lew's business connections with CML,
which are reviewed each year.

All of the signatories to this letter, except for Mr. Allert,
believe that the length of Mr. Lew's tenure of 17 years on the
board of CML is another issue relevant to whether or not Mr. Lew
should remain as a director.

We will be voting the shares we control, and any shares for
which we hold open proxies, against the re-election of Mr. Lew.

We do not support the election of the 9 candidates who are not
presently board members, as they have not demonstrated to us
that they have the necessary qualifications or experience to be
effective directors of the company.

We support the re-election of Mark Leibler.

Shareholders should make their decisions concerning the re-
election of directors after taking this information into
account.

Rick Allert, AM
Patty Akopiantz
Ric Charlton, AM
John Fletcher
Bill Gurry, AO
Helen Lynch, AM
Martyn Myer
Stan Wallis, AC


COLES MYER: Investors' Group Demands Board Composition Change
-------------------------------------------------------------
The Company has received a request under section 249P of the
Corporations Act from the Australian Shareholders' Association
that the Company give to all its members the following
statement.

AUSTRALIAN SHAREHOLDERS' ASSOCIATION LTD
STATEMENT PURSUANT TO SECTION 249P OF THE CORPORATIONS ACT

Holders of Coles Myer shares have suffered year by year through
a series of poor results accompanied by a disappointing share
price.

Improvement is unlikely until the problems at board level are
resolved. Shareholders can address those problems through their
ultimate power of ownership - they can choose which directors
they elect to serve on the board.

At the forthcoming Annual General Meeting this power could be
crucial, so the Australian Shareholders' Association urges you
to exercise your vote.

You can do so in person at the meeting; but if you are one of
the thousands who cannot attend, you can appoint a proxy to vote
on your behalf by completing the form enclosed with the Notice
of Meeting.

Should you decide to vote by proxy you must also decide who will
be your representative. If you wish to appoint someone
independent of the company who will act in the interest of all
shareholders, you can nominate as your proxy the ASA
representative at the meeting, Stanley Mather. The address to
use (if required) is PO Box 519 Chatswood NSW 2057.

Whether you vote in person or by proxy, we urge you to consider
the resolutions on the agenda, make your own assessment of the
issues, and vote accordingly.

If you appoint Stanley Mather as your proxy, and do not give him
specific instructions your vote will be cast in what we believe
to be the best interests of the company and its owners - the
shareholders.

At the time this statement had to be prepared, we did not know
what resolutions might appear on the agenda for the AGM so we
could not say how undirected proxies may be voted. ASA will
however post on its Web site http://www.asa.asn.auits voting  
intentions as soon as sufficient information is available for a
decision to be made. Alternatively you can phone the Association
on 1300 888 979.

After completing the form please lodge it in accordance with the
instructions shown on the form itself. Please do not send your
completed proxy form to the ASA.

For a copy of the letter from the Shareholders' Association, go
to http://bankrupt.com/misc/tcrap_colesmyer1022.pdf


UECOMM LIMITED: Offering a Facility to its Shareholders
-------------------------------------------------------
Uecomm Limited announced Monday that it is offering a facility
to its shareholders holding up to 5,000 Uecomm shares to sell
their shares free of charge or acquire more shares in the
Company at a minimal brokerage cost.

The Chairman of Uecomm, Peter Shore said that the Company has a
register with some 19,500 shareholders and is concerned over the
large number of unmarketable parcels of Uecomm shares held by
its shareholders.  The suggestion for such a facility had been
raised by shareholders at Uecomm's AGM and the Company expects
to reduce the cost of maintaining its share register as a
result.

"We are offering this facility to shareholders holding up to
5,000 Uecomm shares to allow them to acquire more Uecomm shares
to the value of $1,000, $2,000 or $3,000 to bring their holdings
into a marketable size or, alternatively, to exit their holding"
said Shore.

"Uecomm will keep the facility open until 31 December 2002 and
will pay the brokerage fees for shareholders selling their
holdings.

Shareholders who wish to acquire more Uecomm shares will incur a
brokerage fee of 0.75% of the value purchased," said Mr. Shore.

Uecomm has sought the services of JBWere to assist it with the
facility.  Letters to shareholders were posted over the weekend
with the facility opening on 21 October 2002.

Further information:

Uecomm Investor Relations:
Michelle Wood
INVESTOR RELATIONS
Phone: (03) 9941 4521
Mobile: 0404 837 649
E-mail: mwood@uecomm.com.au



================================
C H I N A   &   H O N G  K O N G
================================


MASSIVE RESOURCE: 2002 Net Losses Widen as Sales Drop Further
-------------------------------------------------------------
Net losses of Massive International Corp Ltd for the year to
June has widened from HK$46.9 million last year to HK$49.7 this
year, AFX Asia said Monday.

Almost all vital indicators are down: sales this year tallied
HK$103.9 million from HK$198.02 million in June 2001; operating
loss wider at HK$48.9 million compared with only HK$42.7 million
last year.

The loss per share stood at 3.6 cents, against a loss of 5.3
cents after the number of shares included to calculate the loss
per share increased to HK$1.38 billion from HK$887.35 million
previously, the company said.

No final dividend was declared, the report said.

For the 2002 summary of the firm's financial results, click on
this link http://bankrupt.com/misc/massive_resources.pdf



=================
I N D O N E S I A
=================


ASTRA INTERNATIONAL: Says Second Restructuring Deal Nearly Done
---------------------------------------------------------------
Auto giant Astra International informed the Indonesian Stock
Exchange Monday that a deal with creditors over a second debt-
restructuring plan is almost done.

The company said it is optimistic a pact will be reached by end
of October, contrary to speculations that such a deal won't be
closed any time soon.

This restructuring has become necessary, as the company lacks
the cash to pay loans maturing this year and the next, the
IndoExchange said in a press statement.

In a report last week, Troubled Company Reporter-Asia Pacific
said Astra International's restructuring plan involves paying
only 60 percent of borrowings, including loans worth $135
million and 165 billion rupiah, coming due this year.  The
company plans to repay these loans by selling assets and holding
a US$150 million rights issue.  The firm has already named a
consortium of underwriters, comprising Rothschild-ABN Amro, ING
Barings, UBS Warburg and JP Morgan, to manage the rights issue.

The company also wants creditors to extend further the repayment
period to 2012 from 2006.  The automaker's creditors include
Isuzu Motors Asia Ltd., Marubeni Corp., Itochu Corp., and the
Japan Bank for International Cooperation.

Astra, which is 32 percent owned by Singapore's Cycle & Carriage
Ltd., has debts totaling $726 million and IDR881 billion.



=========
J A P A N
=========


DAI NIPPON: Nippon Hondo Rescues Midsize Contractor
---------------------------------------------------
Nippon Hodo Co. will assist failed mid-sized contractor Dai
Nippon Construction (DNC), Dow Jones said on Tuesday.
Nippon Hodo will provide the aid on the condition that Kinki
Nippon and Dai Nippon's main lenders also support Dai Nippon's
rehabilitation plan.

Nippon Hodo will become a shareholder of Dai Nippon when it
acquires a large portion of new shares.

Dai Nippon Construction, affiliated with Kinki Nippon Railway
Co., filed for court protection from its creditors in July, hurt
by hefty debts on non-performing golf courses and other real
estate projects.

DNC has total liabilities of 271.21 billion yen.


FUJITSU LIMITED: Updates Status on Collaboration in SoC
-------------------------------------------------------
Fujitsu Limited and Toshiba Corporation issued Monday an update
on their negotiations to build a complementary partnership in
the semiconductor business focusing on system-on-chip (SoC). The
companies first announced their intention to explore
collaboration in this area in June.

Fujitsu and Toshiba have defined, and are vigorously exploring,
three areas where collaboration is most practical: 1)
unification and joint development of design infrastructure for
90-nanometer (nm) and 65-nm generation products; 2) joint
development of advanced process technologies for 90-nm and 65-nm
generation products; and 3) SoC solutions. With respect to
shared design infrastructure, the two companies have already
started to collaborate, working on unifying their IP macros and
joint development. They are pursuing intensive, detailed
discussions to implement joint development of process
technologies and cooperation in the SoC solutions business.

To succeed in the SoC market, both companies consider it
essential to be able to respond quickly and precisely to
customer needs. Unlike collaboration in the commodity memory
chip market, where economy of scale is most effective, both
companies recognize that unifying their design platforms,
process technologies, and strategic IP cores is vital to the SoC
business, and so they are focusing their collaboration on the
three areas mentioned above. Regarding the possibility of
consolidating their SoC operations, the companies will examine
such a scenario after assessing the fruit of these individual
collaborative endeavors and taking a variety of considerations
into account.

Progress in each of the three focus areas is discussed in
greater detail below.

1. Design Infrastructure

To keep costs down while pursuing leadership in the advanced SoC
market, the two companies will jointly develop and share a
common design and development platform based on process
technology of 90 nm and beyond. As a vitally important pillar of
SoC development work, the design platform will require
considerable resources and know-how to construct. By joining
forces, the two companies can accelerate the construction of a
design platform for 90-nm and more advanced process technology,
enabling faster development of SoC solutions.

The two companies are moving forward with cooperation in the
following four areas.

1) Common IP cores and joint development

Targeting applications for digital home networks and mobile
networks, the two companies will first work on joint development
of urgently needed IP cores. Development work has begun, and
will be completed next fiscal year, on the digital IP core for
USB, PCI, serial interface, image/video-related applications,
encryption-related technologies, as well as on the analog IP
core for D/A converters, A/D converters, and PLLs. Following
that, therewill be joint development of critical IP as needed.

2) Developing a sophisticated common design environment

Work will begin this fiscal year on a common design environment
that will allow customers and manufacturers to cooperate in
order to develop products more quickly. Cooperation with EDA
(Electric Design Automation) vendors will also be included.

3) Development of new technologies for digital consumer products
and mobile handsets

Planning is currently underway for the joint development of new
technologies, including low power consumption, signal integrity,
and noise reduction, which would be critical for the 90-nm
product generation and beyond. Actual development work will
begin next fiscal year.

4) Preparing application software and middleware

The two companies are examining potential cooperation at the
level of specific SOC products.

2. Advanced Process Technology

The two companies are pursuing joint development and common
specifications for 90-nm process technology that will be
commercialized in 2003 and for which competition is
intensifying. In CMOS process technology of 90 nm and beyond,
the companies will participate in the standardization efforts of
ASPLA (Advanced SOC Platform Corporation) in order to generate
synergies with their own collaboration. Initially, Fujitsu and
Toshiba are focusing their cooperation on common design rules
and device parameters. Since further cost reductions through
consolidation of development bases and joint development would
entail coordination in facilities planning for test and volume
production lines, the companies will continue to study this
matter further.

3. Developing SoC Solutions

The two companies are currently examining areas where
cooperation in developing SoC solutions would offer mutual
benefits, and they have identified digital consumer products,
such as digital televisions, personal video recorders, and
silicon audio, as one potential candidate. The companies are
continuing to look at specific ways to collaborate in SoC
solutions in order to respond in a timely manner to market needs
while giving priority to customer satisfaction.

Through these cooperative activities and discussions, Fujitsu
and Toshiba are working to create a mutually beneficial business
model, and to bring to market competitive SoC solutions more
quickly. More information will be forthcoming on specific
collaborative activities as they get underway.

Fujitsu Limited www.fujitsu.com is a leading provider of
customer-focused IT and communications solutions for the global
marketplace. Pace- setting technologies, high-
reliability/performance computing and telecommunications
platforms, and a worldwide corps of systems and services experts
make Fujitsu uniquely positioned to unleash the infinite
possibilities of the broadband Internet to help its customers
succeed. Headquartered in Tokyo, Fujitsu Limited (TSE: 6702)
reported consolidated revenues of 5 trillion yen (about US$38
billion) for the fiscal year ended March 31, 2002.

Toshiba Corporation www.toshiba.co.jp/index.htm is a leader in
information and communications systems, electronic components,
consumer products, and power systems. The Company's integration
of these wide-ranging capabilities assures its position as a
leading Company in semiconductors, LCDs and other electronic
devices. Toshiba has 176,000 employees' worldwide and annual
sales of over US$40 billion.

TCR-AP reported that Fujitsu reported a first quarter
consolidated operating loss of 29.0 billion yen (US$242
million), an improvement of 13.3 billion yen over the operating
loss recorded during the corresponding quarter of the previous
fiscal year. Due in part to costs associated with continuing
restructuring efforts, the Company posted a net loss for the
period of 56.4 billion yen (US$470 million), compared with a net
loss of 55.4 billion during the corresponding period last year.

Contact:
Yuri Momomoto, Robert Pomeroy
Fujitsu Limited, Public & Investor Relations
Tel: +81-3-3215-5259 (Tokyo)
Press Inquiries:
http://pr.fujitsu.com/en/news/pressinquiries.html

Makoto Yasuda
Toshiba Corporation
Corporate Communications Office
Tel: +81-3-3457-2105 (Tokyo)
E-mail: press@toshiba.co.jp


KK M&R: Court Approves Special Liquidation
------------------------------------------
On October 3, 2002, The Tokyo District Court approved the start
of special liquidation for KK M&R Estate, according to Tokyo
Shoko Research.

The Company has total liabilities of 90 billion yen.

The real estate firm is located at Toshima-ku, Tokyo, Japan.


MAEDA ENVIRONMENTAL: Enters Civil Rehabilitation Proceedings
------------------------------------------------------------
Maeda Environmental Art Co. Limited has applied for civil
rehabilitation proceedings on Tuesday, according to Tokyo Shoko
Research.

The Company has total liabilities of 5.6 billion yen.

The designer product firm, which has 68 workers, is located at
Shibuya-ku, Tokyo, Japan.


MARUBENI CORPORATION: Selling Brazilian-made Jets in Japan
----------------------------------------------------------
Marubeni Corporation will sell airplanes manufactured by Empresa
Brasileira de Aeronautica SA (EMBRAER) in Japan, the Nihon
Keizai Shimbun reported, AFX Asia reports.

Marubeni will sell EMBRAER jets for 70-110 passengers, the first
time for the Company since it withdrew from the business 26
years ago.

Meanwhile, Dow Jones reported that the Company is already in
negotiations with prospective buyers.

The price for the aircraft is listed at Y2.9 billion-Y3.6
billion.

Marubeni withdrew from the aircraft business after a 1976
bribery scandal involving Lockheed Corp. of the U.S. Lockheed
has since merged with Martin Marietta Corp. to form Lockheed
Martin Corporation.


MAZDA MOTOR: Re-balancing Domestic Production Capacity
------------------------------------------------------
Mazda Motor Corporation is planning to re-balance domestic
production capacity to support our mid-term, Millennium Plan
growth objectives while improving overall operating efficiency.
Specifically, we are planning to re-open our Ujina Plant Number
2 (U2) in FY2004 (period beginning in April 2004) and
concurrently close our F Plant. Both facilities are located in
Mazda's Hiroshima estate.

This action will increase Mazda's domestic production capacity
by 110,000 units, or 14 percent, from 788,000 units to 898,000
units annually. This added capacity is required to support the
growth in Mazda's domestic and export volumes included in the
Millennium Plan. Despite the change, the new level of capacity
represents a 15 percent reduction from Mazda's installed
capacity in place prior to implementation of the Millennium Plan
in November 2000.

To support the changes, the assembly of Mazda's body-and-frame
truck products - Titan, Titan Dash, Bongo Truck, and Bongo
Brawny Truck - will be shifted from the F Plant to a local
vendor, Press Kogyo's Onomichi Plant in Hiroshima, beginning in
spring 2003. Monocoque products assembled at F Plant will be
moved to Mazda's U1 or U2 Plant.

The re-balancing of domestic production capacity aims to improve
overall operating efficiency, while reinforcing the production
capacity of passenger cars and maintaining the production of
commercial vehicles at the same time. These changes will have no
impact on the products Mazda offers nor on employment levels in
the Company.

F Plant is Mazda's oldest vehicle assembly production system,
opening in 1960. U2 Plant opened in 1972.

These plans continue Mazda's Millennium Plan strategy of
aligning our production capacity with reality. They also enable
us to operate our overall vehicle assembly system far more
efficiently and in a more environmentally friendly manner. Mazda
President Lewis Booth said: "These plans are entirely consistent
with our Millennium Plan strategy. They are important enablers
of our growth plans, while improving our overall asset
utilization. At the same time, we will be able to build our
products with less impact on the environment in a facility that
will be more people-friendly to our employees. It's a "win-win"
situation across the board."

Mazda Motor Corporation www.mazda.com/flash.html was established
in 1920 and is one of Japan's leading automobile manufacturers.
With its headquarters in Hiroshima, Mazda has two plants in
Japan and manufacturing and assembly operations in sixteen other
countries. Mazda cars and trucks are sold in more than one
hundred and thirty countries. Ford Motor and Mazda agreed to
collaborate in 1979, Ford Motor Company started investing in
Mazda and increased its shareholding to 33.39 percent as of
March 31, 1999. For further information, please visit the Mazda
Motor Corporation home page at:

TCRAP reported that Mazda Motor Corporation would shut down its
truck and van plants in Hiroshima next year, due to sluggish
truck business conditions.

The Company's shareholders capital ratio is low, at 9.96
percent, as a result of poor performances in the past and the
fragile management condition of domestic dealerships and other
factors.

There is still a heavy interest bearing debt burden in the
Company.

Furthermore, the overseas sales ratio is at a high level of 61.3
percent, mainly for the North American and European markets.

Contact:
Mazda Motor Corporation
K. Yoshitake
yoshitake.k@tky.mazda.co.jp
03-3508-5022


NIPPON YUSEN: Liquidating of Luxembourg Unit
--------------------------------------------
Nippon Yusen KK decided to liquidate its wholly owned Luxembourg
unit NYK International, Kyodo News said on Monday.

The Luxembourg unit was established in 1970 as a holding Company
to invest funds and lend money to four ship owners under its
umbrella and is due to be dissolved by March 2003.

According to Wright Investor's Service, at the end of 2002,
Nippon Yusen Kabushiki Kaisha had negative working capital, as
current liabilities were 387.32 billion yen while total current
assets were only 313.92 billion yen.


STT KAIHATS: Golf Course Enters Civil Rehabilitation
----------------------------------------------------
STT Kaihats KK has applied for civil rehabilitation proceedings
last week, according to Tokyo Shoko Research.

The Company has total liabilities of 492.2 billion yen.

The golf course firm, which has 436 staff, is located at Minato-
ku, Tokyo, Japan



=========
K O R E A
=========


DAEWOO MOTOR: Increases Sales Staff by 300 in Korea
---------------------------------------------------
Daewoo Motor Sales Co. decided to recruit 300 sales persons from
October 23 to November 1 in preparation for the increased sales
of cars with the launching of GM Daewoo Auto & Technology
(GMDAT), Asia Pulse reported Tuesday.

The new hiring came as an increase in sales is expected
following the release of its upgraded compact Nubira model with
the project name "J-200."

The Company intends to expand its sales staff from the current
5,300 to 6,500 by the first quarter of next year.

Those born after January 1972 with a four-year university degree
or higher are being encouraged to apply.

Application forms are available on Daewoo Motor's homepage (
www.dm.co.kr) or Korea Jobs Information homepage (
www.kbsjob.co.kr).

According to TCRAP, Daewoo Motor Sales Corporation (DMSC) may
end its debt workout program this year after posting profits for
three years, citing DMSC Chief Executive Officer Lee Dong-
ho.

The Company posted first half earnings to around 50 billion won
this year, versus 22 billion won a year earlier.

DMSC underwent restructuring after the 1997-98 Asian crisis,
which led to the collapse of its parent Daewoo Group and
ultimately an agreement under which a General Motors-led joint
venture agreed to revive key assets of the carmaker.

Daewoo Motor Sales Corporation will sell asset-backed securities
(ABS) valued at 51.7 billion won on account receivables worth
52.8 billion won as underlying assets.

The unit of bankrupt carmaker Daewoo Motor also sold ABS worth
97.1 billion won in March this year.


DAEWOO MOTOR: GM Drops Bid to Acquire Plant
-------------------------------------------
General Motors (GM) has decided to drop its bid to acquire the
Daewoo Incheon plant of Daewoo Motor, Dow Jones reports.

GM took over three plants and nine overseas sales unit of Daewoo
Motor through its joint venture, GM Daewoo Automotive &
Technology Co., as of last Thursday.

GM Daewoo, however, has left open the option of acquiring the
Bupyong plant within the next six years if it meets four
criteria - quality, capacity utilization rates, productivity
gains on an average annual basis and competitiveness.

Daewoo Incheon, which has 3,323 employees, will continue to make
and sell compact model Kalos, and midsize sedan Magnus to GM
Daewoo over the next six years, under its agreement with GM
Daewoo.


HYNIX SEMICONDUCTOR: Creditors Aim to Stabilize Ops First
---------------------------------------------------------
Creditors of Hynix Semiconductor Inc. will stabilize the
chipmaker's operations first before trying to sell it off in
order to avoid a liquidity crisis that may arise in the first
half of 2003, reports the Maeil Business Newspaper.

The government and its main creditor Korea Exchange Bank may
swap about 1.85 trillion won, or half of the Company's unsecured
debt due to mature soon, into equity.

The move is meant to sustain the debt-ridden chipmaker's
operations for the time being.

DebtTraders reports that Hyundai Semiconductor's 8.625 percent
bond due in 2007 (HYUS07KRA1) trades between 60 and 65. For
real-time bond pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=HYUS07KRA1


HYUNDAI ENGINEERING: Restructuring Erases Four Exec Positions
-------------------------------------------------------------
Hyundai Engineering & Construction Co. laid off four of its six
Vice Presidents and all its three advisory officials under a
restructuring scheme which started in 2001, Dow Jones reports.

The ailing construction Company is planning to further cut 30
percent of its 141 managerial executives by the end of October,
and 100 to 200 managers by the year-end.

The report said all of the Company's managerial executives had
tendered their resignations last week ahead of the recent layoff
decision.

Hyundai Engineering has 4,183 employees, after it laid off 350
employees in the second half of last year.

In 2001, Hyundai Engineering received a 2.9 trillion won bailout
package from its creditors, including a 1.4 trillion won of
debt-for-equity conversion.

Hyundai Engineering posted a net profit of KRW89.1 billion in
the first half, after posting a net loss the past four years.

The Company expects its financial condition to significantly
normalize in 2003, due to its outstanding construction orders
worth 18.5 trillion won.


LG ELECTRONICS: Reducing Debts to US$1.6B Next Year
---------------------------------------------------
LG Electronics expects to reduce its outstanding loans to 2
trillion won (US$1.6) in 2003, following its debt reduction
scheme, according to Asia Pulse on Tuesday.

The Company's liabilities reached 4 trillion won early this year
but in June and September the figure fell to 3.12 trillion won
and 3.06 trillion won respectively.

According to Wright Investor's Service, LG Electronics Inc. had
negative working capital at the end of 2001, as current
liabilities were 13.85 trillion Korean Won while total current
assets were only 9.37 trillion Korean Won.



===============
M A L A Y S I A
===============


DATAPREP HOLDINGS: Indemnifies Acer Sales for Unit's Liability
--------------------------------------------------------------
In March 1999, a claim has been instituted by Acer Sales and
Services Sdn Bhd against Dataprep Holdings Bhd as guarantor for
its former subsidiary, Dataprep Retail Sdn Bhd (DRSB) for non-
payment of goods sold to DRSB. Summary Judgment application has
been obtained against Dataprep for the sum of RM 139,935.67
together with interest of 1.5% from 1 November 1998. Dataprep
has filed notice of appeal and the return date of the appeal is
fixed on 6 August 2003.

On 18 October 2002, the Company made a payment of RM 149,935.67
to Acer Sales and Services Sdn Bhd as full and final settlement
of the said claim with an estimated saving in interest cost of
RM 88,000 computed as follows:

Principal sum RM 139,935.67
Estimated interest RM 88,000
Legal cost incurred RM 10,000
Total claim RM 237,935.67
Interest waived/saving (RM 88,000)
Settlement sum RM 149,935.67

The loss suffered by the Company arose from the above settlement
is RM 10,000 as illustrated below:

Settlement sum: RM 149,935.67
Less: Loss recognized & accrued in previous year (RM 139,935.67)
Loss suffered: RM 10,000


HUME INDUSTRIES: Rights Issue Oversubscribed by 4.45%
-----------------------------------------------------
On behalf of the Board of Directors of Hume Industries
(Malaysia) Berhad (HIMB), Commerce International Merchant
Bankers Berhad announced that at the close of acceptance and
payment of the Rights Issue at 5.00 p.m. on 16 October 2002,
total acceptances and excess applications received for the
Rights Issue was for 260,477,431 Rights Stocks.

This represents an over-subscription of 11,098,801 or 4.45% over
the total number of 249,378,630 Rights Stocks available for
subscription under the Rights Issue.

In August, the Company announced a renounceable rights issue of
up to 250,242,630 new ordinary stock units of RM1.00 each in
HIMB at an issue price of RM2.00 per right stock.

The rights issue is payable in full upon acceptance, on the
basis of one rights stock for every one existing ordinary stock
unit of RM1.00 each held.


KIARA EMAS: Court Extends Restraining Order
-------------------------------------------
Kiara Emas Asia Industries Berhad announced that the Restraining
Order pursuant to Section 176 of the Companies Act, 1965,
granted by the High Court of Malaya at Seremban to the Company
and its subsidiary companies, Hup Lee Coachbuilders Sdn Bhd and
Hup Lee Coachbuilders Holdings Sdn Bhd., has been extended for a
period of 9 months, effective 22 October 2002 to 22 July 2003.  
This restraining order was first granted April 22 this year.  

According to an article that appeared in www.insolvencyasia.com,
a restraining order of this type is issued pending the
formulation of a concrete scheme of arrangement.  These so-
called schemes of arrangement outline steps to rehabilitate the
company or pay creditors.


MGR CORPORATION: Moratorium Period Extended to October '03
----------------------------------------------------------
MGR Corporation Berhad announced on Monday that the Moratorium
under Section 41 of the Pengurusan Danaharta Nasional Berhad Act
1998, which took effect from date of appointment of Special
Administrators on October 11, 2001, has been extended to October
10, 2003.

TCR-AP previously reported that the Ministry of International
Trade and Industry (MITI) had approved the Proposed
Restructuring Scheme, subject to the surrender of the
manufacturing license by the Company and its subsidiaries,
Parakaya Plywood Sdn Bhd and Kimanis Bay Timbers Sdn Bhd, to the
Malaysian Industrial Development Authority.


MYCOM BERHAD: Alliance Merchant Bank Alters Restructuring Plan
--------------------------------------------------------------
Further to an earlier announcement made by Alliance Merchant
Bank Berhad (Alliance) and Mycom Berhad on the Proposed
Restructuring Scheme, Alliance, on behalf of the Board of
Directors of Mycom announced certain variations to the Proposed
Restructuring Scheme.  The proposed variations are:

DETAILS OF THE PROPOSED VARIATIONS

(a) Proposed Rights Issue

Mycom proposes to revise the number of new ordinary shares of
RM1.00 each in Mycom (Mycom Shares) and detachable free warrants
(Warrants) to be issued pursuant to the proposed rights issue.
As announced previously, Mycom had proposed to issue 78,536,415
new Mycom Shares together with 78,536,415 Warrants on the basis
of two (2) new Mycom Shares together with two (2) Warrants for
each existing Mycom Share held (subsequent to the proposed
capital reduction and proposed capital consolidation to be
undertaken by Mycom) at an issue price of RM1.00 per Mycom Share
(Proposed Rights Issue).

Mycom proposes to revise the Proposed Rights Issue to an
issuance of 39,268,207 new Mycom Shares together with 39,268,207
Warrants on the basis of one (1) new Mycom Share together with
one (1) Warrant for each existing Mycom Share held (subsequent
to the proposed capital reduction and proposed capital
consolidation to be undertaken by Mycom) at an issue price of
RM1.00 per Mycom Share (Proposed Revised Rights Issue).
The details of the utilization of proceeds arising from the
Proposed Revised Rights Issue are set out in Table 1 below.

Proposed Special Issue

A corresponding amount of 39,268,208 new Mycom Shares with
39,268,208 Warrants, being the difference in the number of Mycom
Shares and Warrants between the Proposed Rights Issue and
Proposed Revised Rights Issue, will be incorporated into the
proposed special issue.

The existing proposed special issue entailed an issue of
90,000,000 new Mycom Shares together with 90,000,000 Warrants at
an issue price of RM1.00 per Mycom Share to Bumiputera investors
to be identified (Proposed Special Issue). As such, the proposed
special issue is now proposed to be 129,268,208 new Mycom Shares
together with 129,268,208 Warrants at an issue price of RM1.00
per Mycom Share to Bumiputera investors to be identified
(Proposed Revised Special Issue).

The details of the utilization of proceeds arising from the
Proposed Revised Special Issue are set out in Table 2 below.

Proposed Debt Restructuring

The quantum of the debt instruments under the proposed debt
restructuring is proposed as follows:

- Secured local debts with nominal value as at the cut-off date
represented by current collateral value and net cashflow from
operating activities will be converted into restructured term
loans (RTL) of RM77,808,384 and RM60,305,280 nominal value of
redeemable unsecured loan stocks (RULS) as compared to
RM77,808,384 of RTL and RM62,424,880 nominal value of RULS under
the existing Proposed Restructuring Scheme;

- Secured local debts with nominal value as at the cut-off date
represented by current collateral value but not represented by
net cashflow from operating activities will be settled via the
issuance of RM108,517,879 nominal value of irredeemable
convertible bonds (ICB) as compared to RM110,183,279 nominal
value of ICB under the existing Proposed Restructuring Scheme;

- Secured local debts with nominal value as at cut-off date
which are not represented by the value of collateral will be
settled via the issuance of RM78,461,415 nominal value of
irredeemable convertible unsecured loan stocks (ICULS) as
compared to RM48,856,170 nominal value of ICULS under the
existing Proposed Restructuring Scheme;

- Unsecured local debts will be settled via the issuance of
RM142,388,203 nominal value of ICULS as compared to
RM168,208,448 nominal value of ICULS under the existing Proposed
Restructuring Scheme;

- Compensation for the low interest and coupon rates of RTL and
RULS respectively, will be made up via the cash proceeds from
the issuance of 21,092,323 new Mycom Shares under the Proposed
Revised Special Issue as compared to 21,416,022 new Mycom Shares
under the existing Proposed Special Issue pursuant to the
Proposed Restructuring Scheme; and

- Compensation for the low coupon rates of ICB and zero coupon
rates for the first two (2) years of ICULS will be made up via
issuance of 36,646,229 new Mycom Shares to the ICB and ICULS
holders as compared to 36,707,114 new Mycom Shares under the
existing Proposed Restructuring Scheme.

RATIONALE FOR THE PROPOSED VARIATIONS

The revision to the Proposed Rights Issue and Proposed Special
Issue is proposed in view of the total Bumiputera equity
interest which has been reduced to 30.79%, as at 30 September
2002. Based on the existing Proposed Restructuring Scheme as
approved by the SC and the shareholding structure as at 30
September 2002, the Bumiputera equity interest upon completion
of the Proposed Restructuring Scheme and upon full exercise of
the Warrants and full conversion/exchange of the ICB, ICULS and
Irredeemable Exchangeable Bonds (IEB) will be 19.50% and 18.79%,
respectively.

The Foreign Investment Committee (FIC) vide its approval letter
dated 26 January 2002, had approved the Proposed Restructuring
Scheme subject to Mycom increasing its Bumiputera equity
participation to 30% upon full conversion of the ICULS and
exercise of the Warrants to new Mycom Shares. Hence, the
Proposed Revised Special Issue would bring about a higher level
of Bumiputera equity participation in Mycom upon the completion
of the Proposed Restructuring Scheme and assist Mycom in
fulfilling the condition set by the FIC. The proposed revision
will enable Mycom to achieve 23.70% and 23.01%, respectively, of
the Bumiputera equity interest immediately upon restructuring
and full dilution on a proforma basis.

Furthermore, in view of the bearish stock market condition, the
under-subscription of recent rights issue and Mycom's current
status as a PN4 company, Mycom is of the opinion that the
Proposed Revised Rights Issue, being smaller in size stands a
better chance of a higher subscription rate. Furthermore, it
would be easier for Mycom to procure underwriters for the
Proposed Revised Rights Issue.

The proposed variations to the proposed debt restructuring are
undertaken to reclassify certain debts which were classified in
a different category for settlement and were made known
subsequent to the approval of the SC on 8 March 2002.

EFFECTS OF THE PROPOSED VARIATIONS

(a) Share capital

The effects of the proposed variations on the share capital of
Mycom are set out in Table 3 below.

(b) Earnings

The proposed variations are not expected to have a material
impact on the earnings of Mycom and its subsidiaries for the
financial year ending 30 June 2003.

(c) Proforma consolidated net tangible assets (NTA)

The effects of the proposed variations on the proforma
consolidated NTA of Mycom are set out in Table 4 below.


(d) Shareholding structure

The effects of the proposed variations on the shareholding
structure of Mycom are set out in Table 5 below.

APPROVALS REQUIRED

The proposed variations to the Proposed Restructuring Scheme are
subject to, inter-alia, the following approvals:

(a) SC in respect of the proposed variations;

(b) FIC in respect of the proposed variations;

(c) Ministry of International Trade and Industry (MITI) for
recognition of the Bumiputera investors under the Proposed
Revised Special Issue;

(d) Shareholders of Mycom at the extraordinary general meeting
to be convened; and

(e) Any other relevant authorities or parties.


DIRECTOR'S OPINION

The Board of Directors of Mycom is of the opinion that the
proposed variations to the Proposed Restructuring Scheme are in
the best interest of Mycom and its subsidiaries.


SUBMISSION TO THE RELEVANT AUTHORITIES

The application to the SC in respect of the proposed variations
has been made on evendate. The application to the FIC, MITI
and/or any other authorities or parties would be made within two
(2) months from the date of this announcement.


PANTAI HOLDINGS: Proposes Share Buy-Back Scheme
-----------------------------------------------
Commerce International Merchant Bankers Berhad (CIMB), on behalf
of the Board of Directors of Pantai Holdings Berhad (PHB),
announced that the Company proposes to seek the approval of its
shareholders to purchase its own shares of up to 10% of the
issued and paid-up share capital of PHB (Proposed Share Buy-
Back).

DETAILS OF THE PROPOSED SHARE BUY-BACK

The Board of Directors of PHB proposes to seek the approval from
the shareholders of the Company to purchase its own shares of up
to 10% of the issued and paid-up share capital of the Company
subject to compliance with Section 67A of the Companies Act,
1965 (Act) (as may be amended, modified or re-enacted from time
to time) and any prevailing laws, rules, regulations, orders,
guidelines, and requirements issued by the relevant authorities.
The purchase of own shares will be carried out through the Kuala
Lumpur Stock Exchange (KLSE) via a stockbroker(s) to be
appointed.

The maximum amount of funds to be utilized for the Proposed
Share Buy-Back shall not exceed the aggregate of the retained
profits and/or share premium account of the Company. As at 30
June 2001, the audited retained profits and share premium
account of the Company amounted to RM22.554 million and
RM306.454 million respectively whilst based on the latest
unaudited financial statements as at 30 June 2002, the retained
profits and share premium account of the Company were RM29.539
million and RM131.056 million respectively.

The ordinary shares of RM1.00 each in PHB (PHB Shares) purchased
by the Company will be dealt with by the Directors in accordance
with Section 67A of the Act, in the following manner:

(i) to cancel the PHB Shares so purchased; or

(ii) to retain the PHB Shares so purchased as treasury shares
for distribution as dividends to the shareholders of the Company
and/or re-sell on the KLSE in accordance with the relevant rules
of the KLSE; or

(iii) to retain part of the shares so purchased as treasury
shares and cancel the remainder.

While the purchased shares are held as treasury shares, the
rights attached to them in relation to voting, dividends and
participation in any other distributions or otherwise are
suspended and the treasury shares shall not be taken into
account in calculating the number or percentage of shares or of
a class of shares in the Company for any purposes including
substantial shareholding, take-overs, notices, the requisition
of meetings, the quorum for a meeting and the result of a vote
on a resolution at a meeting.

The approval from the shareholders for the Proposed Share Buy-
Back would be effective immediately upon the passing of the
ordinary resolution for the Proposed Share Buy-Back until:

(a) the conclusion of the next Annual General Meeting (AGM) of
PHB; or

(b) the expiration of the period within which the next AGM after
that date is required by law to be held; or

(c) revoked or varied by ordinary resolution passed by the
shareholders of the Company in a general meeting, whichever
occurs first.

Pursuant to Chapter 12 of the Listing Requirements of the KLSE,
PHB may only purchase its own shares at a price, which is not
more than fifteen percent (15%) above the weighted average
market price of PHB Shares for the past five (5) market days
immediately preceding the date of the purchase(s). In the case
of a resale of treasury shares, the Company may only resell the
purchased shares held as treasury shares on the KLSE at a price,
which is not less than the weighted average market price of PHB
Shares for the past five (5) market days immediately preceding
the date of resale(s).

As at 30 September 2002, the public shareholding spread of PHB
is 52.80%. The Proposed Share Buy-Back will be conducted in
accordance with laws prevailing at the time of the purchase
including compliance with the 25% public shareholding spread as
required by the Listing Requirements of the KLSE.

PHB has not purchased or resold any of its shares in the
previous twelve (12) months preceding the date of this
announcement.

RATIONALE FOR THE PROPOSED SHARE BUY-BACK

The Proposed Share Buy-Back is to enable PHB another option of
utilizing its financial resources more efficiently. The Proposed
Share Buy-Back is expected to stabilize the supply and demand of
PHB Shares as well as the price of PHB Shares. All things being
equal, the Proposed Share Buy-Back, whether the PHB Shares to be
purchased are maintained as treasury shares or cancelled, will
result in a lower number of PHB Shares being used for the
purpose of computing earnings per share (EPS). Therefore, the
Proposed Share Buy-Back will improve the EPS of PHB, which in
turn is expected to have a positive impact on the market price
of PHB Shares.

PHB may also retain the PHB Shares purchased as treasury shares
with the intention of realizing potential gains from the resale
of treasury shares and/or to reward its shareholders through the
distribution of the treasury shares as dividends.

EFFECTS OF THE PROPOSED SHARE BUY-BACK

Share Capital

The effect of the Proposed Share Buy-Back on the share capital
of PHB will depend on whether the PHB Shares purchased are
cancelled or retained as treasury shares.

The Proposed Share Buy-Back will result in the reduction of the
issued and paid-up share capital of the Company if the PHB
Shares so purchased are cancelled. However, the Proposed Share
Buy-Back will have no effect on the issued and paid-up share
capital of PHB if all the PHB Shares purchased are to be
retained as treasury shares re-sold or distributed to its
shareholders.

Net Tangible Assets (NTA) and Working Capital
The effect of the Proposed Share Buy-Back on the NTA of the PHB
Group will depend on the purchase prices of the PHB Shares, the
effective funding cost to the PHB Group to finance the purchase
of PHB Shares or any loss in interest income to the Company and
whether the PHB Shares purchased are cancelled or retained as
treasury shares.

If all the PHB Shares purchased were cancelled, the Proposed
Share Buy-Back would reduce the NTA of the PHB Group when the
purchase price per PHB Share exceeds the NTA per PHB Share at
the relevant point in time, and vice versa.

The NTA of the Group would decrease if the purchased shares are
retained as treasury shares due to the requirement for treasury
shares to be carried at cost and be offset against equity,
resulting in a decrease in the NTA of the Group by the cost of
the treasury shares.

If the treasury shares are resold on the KLSE, the NTA of the
PHB Group would increase if the Company realizes a gain from the
resale, and vice versa. If the treasury shares were distributed
as share dividends, the NTA of the PHB Group would decrease by
the cost of the treasury shares.

The Proposed Share Buy-Back will reduce the working capital of
the PHB Group, the quantum of which will depend on the purchase
prices of the PHB Shares and the number of PHB Shares purchased.

Earnings

The effect of the Proposed Share Buy-Back on the EPS of the PHB
Group will depend on the purchase prices of the PHB Shares and
the effective funding cost or any loss in interest income to the
Group. Assuming that the PHB Shares purchased are retained as
treasury shares and resold, the effects on the earnings of the
PHB Group will depend on the actual selling price, the number of
treasury shares resold and the effective gain or interest
savings arising from the exercise.

If the PHB Shares so purchased are canceled, the Proposed Share
Buy-Back will increase the EPS of the PHB Group provided the
income foregone and interest expense incurred on the shares
purchased is less than the EPS before the share buy-back.

Substantial Shareholders' and Directors' Shareholdings
Based on the Register of Substantial Shareholders and Directors'
Shareholdings as at 30 September 2002 and assuming the Proposed
Share Buy-Back is implemented in full (i.e. up to 10% of the
paid-up capital) and that the PHB Shares purchased are from
shareholders other than the substantial shareholders and
Directors, the effect of the Proposed Share Buy-Back on the
shareholdings of the existing substantial shareholders and
Directors of PHB by virtue of Section 67A(3C) of the Companies
Act 1965 are set out in Table 1.

Dividends

PHB has declared and paid a final dividend of 2 sen per share
less tax at 28% amounting to RM933,595 in respect of the
financial year ended 30 June 2001. The Board has recommended a
first and final dividend for the financial year ended 30 June
2002 of 1 sen per share less tax at 28% amounting to RM2,598,712
and tax exempt dividend of 0.5 sen per share amounting to
RM1,804,661. However, the dividends to be declared by PHB in
respect of the financial year ending 30 June 2003 would depend
on, amongst others, the profitability and cash flow position of
the PHB Group. Assuming the Proposed Share Buy-Back is
implemented, dividend would be paid on the remaining issued and
paid-up share capital of PHB (excluding the PHB Shares already
purchased).

CONDITION OF THE PROPOSED SHARE BUY-BACK

The Proposed Share Buy-Back is conditional upon the approval of
the shareholders of PHB at a General Meeting to be convened.

DIRECTORS' AND SUBSTANTIAL SHAREHOLDERS' INTERESTS

Save for the inadvertent proportionate increase in the
percentage shareholdings and/or voting rights of the
shareholders in the Company as a consequence of the Proposed
Share Buy-Back, none of the Directors, substantial shareholders
and/or persons connected to the Directors and/or substantial
shareholders of PHB, has any interest, direct or indirect, in
the Proposed Share Buy-Back.

STATEMENT BY THE DIRECTORS

The Board of Directors of PHB, having considered all aspects of
the Proposed Share Buy-Back, is of the opinion that the Proposed
Share Buy-Back is in the best interest of the PHB Group.

ADVISER

CIMB has been appointed as adviser to PHB for the Proposed Share
Buy-Back.

On April 2, TCR-AP reported that the Company proposed an
internal restructuring (Proposed Restructuring) of its Group of
Companies (PHB Group). The Proposed Restructuring involves the
transfer of six investment holding subsidiaries directly held
under PHB to a wholly owned subsidiary, Pantai Group Resources
Sdn Bhd (PGR), which will function as an intermediate holding
company.


PERAK CORPORATION: Conditions Tied to Audrey Pact Extended
----------------------------------------------------------
Perak Corporation Berhad (PCB), announced that on October 18,
2002 the Company has mutually agreed with Audrey International
(M) Bhd for an extension of time for a further period of three
(3) months from 22 October 2002 to fulfill the conditions
precedent attached to the Sale and Purchase Agreement dated 22
April 2002 (SPA).

As per the SPA, the conditions precedents are to be fulfilled
within six (6) months from the date of the SPA.


RNC CORPORATION: Affin Merchant Terminates Advisor Appointment
--------------------------------------------------------------
Affin Merchant Bank Berhad announced that with effect from 11
October 2002, it has terminated its appointment as Advisor to
RNC for the Proposals pursuant to the letter of appointment
dated 15 October 1999 (the Offer Letter) due to the non-
fulfillment of certain terms in the Offer Letter.

TCRAP reported that RNC Corporation's Debt Restructuring Scheme
(PRS) proposal is still pending the approval of the Exchange for
the listing and quotation of the ordinary shares, Redeemable
Convertible Secured Loan Stocks (RCSLS) and Redeemable
Convertible Unsecured Loan Stocks (RCULS) on the Main Board of
KLSE.


SIME DARBY: Voluntarily Winds Up Troubled Affiliate
---------------------------------------------------
Sime Darby Berhad announced that its subsidiary company, Sime
Leigh Sdn. Bhd. (SLSB) held an Extraordinary General Meeting on
October 21, 2002 at which the shareholders resolved that SLSB be
wound up voluntarily.

The shareholders of SLSB also approved the appointment of Encik
Nik Din bin Nik Sulaiman and Mr. Toh Cheng Hui as the
liquidators of SLSB.

SD Holdings Berhad holds 70% of the issued and paid-up equity of
SLSB, a wholly owned subsidiary of Sime Darby and the remaining
30% is held by W & Leigh & Co., a company incorporated in the
United Kingdom. SLSB was in the business of marketing marine and
protective coating paints until the cessation of its business
operations since September 2001.

The voluntary liquidation of SLSB is not expected to have a
material effect on the earnings or net tangible assets of the
Sime Darby Group for the financial year ending 30th June 2003.
None of the directors or substantial shareholders of Sime Darby
or persons connected to them has any interest, direct or
indirect, in the voluntary liquidation.


SURIA CAPITAL: Commences Suit Against Alliance Bank Malaysia
------------------------------------------------------------
Suria Capital Holdings Berhad (SCHB) disclosed that the Writ of
Summons and Statement of Claim dated October 8, 2002 (Suit No.
K22-240 of 2002) had been served on the Defendant, Alliance Bank
Malaysia Berhad through their Solicitors, Messrs. Lind Willie
Wong & Chin in Kota Kinabalu, on October 18, 2002.

On September 27, TCR-AP reported that SCHB undertook a
restructuring exercise that included the acquisition of Sabah
Development Bank Bhd (SDB) and Sabah Bank Bhd (SBB). SCHB was,
until then, principally a property development company.  With
the completion of the restructuring, SCHB was transformed into
an investment holding company.

The Company disposed of SDB to the State Government of Sabah in
1999.



=====================
P H I L I P P I N E S
=====================


BAYAN TELECOM: NTC Allows Three Years to Install Mobile System  
--------------------------------------------------------------
The National Telecommunications Commission (NTC) has granted
Bayan Telecommunications Inc (Bayantel) a three-year extension,
from November this year, to install and operate a nationwide
cellular mobile telephone system, AFX Asia and Today newspaper
reported Monday.

Bayantel, which is a unit of Benpres Holdings Corp, applied on
September 3 for an extension of the NTC-issued provisional
authority, issued on May 3, 2000, to provide mobile phone
services.

TCRAP reported in June that BayanTel tapped Credit Lyonnais
Securities Europe as its new financial adviser to assist it in
the restructuring of about US$477 million in debts, of which
$277 million is owed to banks and $200 million to bondholders.
About 5 percent, or $26 million of the bank loans and all the
bonds are unsecured.


NATIONAL BANK: Approves Sale of P1.9B in Assets
-----------------------------------------------
The Philippine National Bank (PNB) has approved the sale of 1.9
billion pesos worth of real and other property owned or acquired
(ROPOA) assets, the Philippine Daily Inquirer reported.

PNB expected its gross profit from the sale of 1.9 billion
pesos' worth of ROPOA assets as of the third quarter of the year
to reach over 600 million pesos.

The bank said the higher-than-expected assets sale was due to
the appointment of Citibank's Federico Cadiz Jr. as its
Executive Vice President for asset management and asset sales.

The bank posted a net loss of 1.5 billion pesos in the nine
months to September, down 72 percent from 5.3 billion pesos in
the same period last year and way below the bank's projected
2002 net loss range of 2.9-3.1 billion pesos.


PHILIPPINE AIRLINES: Banks Deny Retirement Benefits' Release
------------------------------------------------------------
Trustee banks have refused to release 150 million pesos worth of
retirement benefits that retired pilots of Philippine Airlines,
Inc. (PAL) have asked to withdraw, the Business World said on
Tuesday.

The banks will not release the money unless a new retirement
board for the fund is duly reconstituted and unless the new
board makes the request for release.

PAL's former pilots accused PAL along with the Bank of the
Philippine Islands (BPI), Metropolitan Bank & Trust Co. and
Equitable PCI Bank of blocking the release of the retired
pilots' pay because of the huge sum involved.

The report said 20 percent of the pilots' salaries are placed in
the retirement fund. A retirement board, comprised of two
representatives from the PAL management and seven from ALPAP,
decides and recommends to the banks who will get benefits. It
said the board has already recommended the release of the
benefits of some 40 former PAL pilots but the banks refuse to
recognize these.


PHILIPPINE AIRLINES: Hosts "Assembly of Presidents" in AAPA
------------------ ----------------------------------------
Philippine Airlines, the national flag carrier, hosts the 46th
Assembly of Presidents of the Association of Asia Pacific
Airlines (AAPA) in Mactan, Cebu from November 14-15.
Chief executive officers of major international airlines based
in the Asia Pacific region will convene to debate the future
direction of the industry amid conflicting signals from the
market.

Avelino L. Zapanta, President and chief operating officer of
this year's host Philippine Airlines and chairman of the
Assembly, emphasizes the propitious timing of the event.

"The 46th Assembly of Presidents takes place at a time of great
ferment in the airline industry worldwide. Recovery beckons but
uncertainty lingers. This is an opportune time to take stock and
discuss issues confronting us."

The Association of Asia Pacific Airlines (AAPA) is hosting its
46th Assembly of Presidents at a time when traffic and load
factors are extremely healthy, but fuel prices are climbing and
political factors threaten to reverse the recent positive
developments.

AAPA Director General Richard Stirland said this year's Assembly
"will serve as an important forum to discuss how far the
carriers are down the road to recovery from last year's
disastrous events and what can be done to mitigate the impact of
new security and insurance burdens, among other problems."

"The region's aviation sector has certainly outpaced the rest of
the world in recovering from last year's disaster. Now we are
faced with other challenges which we hope to get through with
proper planning," said Stirland.

Participants to last year's Assembly of Presidents held in Bali,
Indonesia, a couple of months after September 11, agreed that
the impact of the tragedy need not be as severe in this part of
the world. Thus, AAPA carriers were quite circumspect in their
reduction of capacity, cutting routes and grounding of aircraft,
enabling them to take advantage at short notice of the regrowth
of traffic within the region and on European routes.

The latest figures released by the AAPA show that revenue
passenger kilometers grew by 2.2 percent in August, while
passenger numbers increased by 3.8 percent. This is in contrast
to 10 percent-12 percent declines in traffic for carriers based
in the USA and Europe.

Stirland said: "Traffic within the region grew by 4 percent and
on European routes by 3 percent. Unfortunately, transpacific
routes have yet to recover."

The encouraging load factors were complemented by steady
improvement in cargo traffic due to rising demand. From January
to August, freight carried by AAPA members grew by 12 percent,
compared to the same period last year.

The AAPA, formerly Orient Airlines Association, is a regional
grouping of 17 commercial airlines formed in 1966 by Philippine
Airlines, China Airlines, Korean Airlines and Malaysian
Airlines.

The AAPA holds an annual Assembly of Presidents to discuss
common issues affecting the region's aviation industry.
Chairmanship of the Assembly is rotated among the host airlines.

Other members of AAPA include Air New Zealand, All Nippon
Airways, Asiana Airlines, Cathay Pacific Airways, Dragonair, EVA
Air, Garuda Indonesia, Japan Airlines, Qantas Airways, Royal
Brunei Airlines, Singapore Airlines, Thai Airways and Vietnam
Airlines.


PHILIPPINE LONG: Fitch Affirms BB- Rating; Outlook Negative
-----------------------------------------------------------
Fitch Ratings has removed the Senior Unsecured rating of
Philippine Long Distance Telephone Company (PLDT) from Negative
Watch and affirmed the rating at 'BB-' ('BB Minus'). The Outlook
is negative.

The decision to affirm PLDT's rating follows the Company's
success during 2002 in executing a multi-phase funding strategy
that has extended debt maturities. This reduces concerns about
PLDT's ability to meet debt repayment obligations over the 2002-
2004 period, in particular in the current year. The rating
action also follows a period of ownership uncertainty that arose
with the attempt by the Gokongwei Group, associated with PLDT's
principal fixed line competitor, Digital Telecom, to buy into
PLDT. The Company's board of directors opposed the attempt,
which has been aborted in the meantime. However, PLDT's
principal shareholder, First Pacific, is reviewing its options
with respect to its investments in the Philippines, which may
result in a reduction of its holding in PLDT from the current
level of 24.4 percent.

The refinancing initiatives implemented have resulted in debt
maturing over the 2003-2004 period reducing to USD541 million,
on a pro forma basis after netting out KfW and bank financing,
from USD977m at December 2001. In addition, PLDT's operating
performance has strengthened and, through improved cash flow
generation, the Company is expected to pursue deleveraging.
After a sustained period of high capital investment, PLDT has
turned free cash flow positive - largely due to a reduction in
capex and cash operating costs. Fitch anticipates the positive
free cash flow trend continuing over the near to medium term.
Although this enhances PLDT's prospects for deleveraging, the
Company is still vulnerable to circumstances that could
constrain the pace of deleveraging and credit metric
improvement. Such circumstances include the possibility of
increased competition, economic instability and ownership
changes.

PLDT's rating is supported by its leadership positions across
all major facets of the Philippine telecom sector and positive
cash flow generated from traditional fixed line telephony
services. Operating margins have been consistent in recent times
and, with continuing sound business fundamentals and further
improvement to working capital management, cash flow has the
potential to further increase.

At June 2002, PLDT's leverage (measured by net debt to EBITDA)
was around 5.3x with consolidated leverage of 4.0x, excluding
Piltel's financial obligations. EBITDA to net interest cover was
2.4x and 3.3x respectively. Fitch would view continued progress
in debt reduction favorably. Other important factors that could
have a positive rating influence would include: stable ownership
and capital structure; stable competitive environment; continued
lender support and access to funding alternatives; and stable
economic conditions. Fitch will continue to review the outlook
as clarity develops over these factors.



=================
S I N G A P O R E
=================


ASIA PULP: Likely to Miss Profit Target After Bali Attack
---------------------------------------------------------
Asia Pulp & Paper Co. (APP) is likely to miss profit targets
amid concerns that pulp prices will drop due to a worsening
economic outlook in the aftermath of a deadly bomb attack on
Indonesian resort island of Bali two weeks ago, Bloomberg
reports.

At stake is a debt repayment plan signed with export credit
agencies and the Indonesian Bank Restructuring Agency (IBRA)
last month. The preliminary agreement, involving export credit
agencies from 11 countries, has been presented to remaining
creditors as a template for a final workout to be signed in
December, and is expected to be legally binding by March 31 next
year.

Asia Pulp had struggled to pay debt since the 1997-1998 Asian
financial crisis, in which the rupiah lost 75 percent of its
value. Indonesian companies owe overseas creditors more than $60
billion, much of which turned sour after the crisis.

Asia Pulp will set aside $30 million monthly for debt payment
from 2003 to 2005, lifting that to $35 million in 2006 and 2007,
and to $40 million from 2008 to 2012.

Only when the average pulp price falls below $400 per ton for
any month will the Company cut its monthly commitment to $25
million, and the difference will be made up as soon as possible.


FLEXTECH HOLDINGS: Clarifies Business Times Report
--------------------------------------------------
Flextech Holdings Limited responded to the news article "The
variation of the terms of the loan stock is also conditional
upon the Singapore Exchange's approval for the continued listing
of the loan stock", published in the October 21, 2002 issue of
the Business Times.

The Company clarified that it is seeking the approval of the
holders of the Loan Stock 2002 for the proposed extension and
variation of the terms of the Loan Stock 2002. The approval of
the SGX-ST is being sought only for the continued listing of the
Loan Stock 2002 after the current maturity date of 23 October
2002, if the holders of the Loan Stock 2002 approve the proposed
extension and variation of the terms of the Loan Stock 2002.


NEPTUNE ORIENT: Shares Up 4.9% on Debt Reduction Efforts
--------------------------------------------------------
Shares of Neptune Orient Lines increased 4.9 percent at 75
Singapore cents on moderate volume of 4.7 million shares after
the Company's debt reduction efforts, Dow Jones reported Monday.

The report said shares is unlikely to rise further and may even
fall slightly on profit taking.

TCR-AP reported that Neptune Orient posted a loss of $56.6
million in 2001, compared with a record net income of $178.5
million in 2000, hurt by its container and logistics units. The
Company sees losses this year because of lower freight rates.

According to Deutsche Bank analyst Michael Sia, Neptune Orient
will continue to report losses in 2003 and 2004 because of
falling rates and overcapacity. He forecasts a $300 million loss
in 2003, and lower losses in 2004.


SEMBCORP INDUSTRIES: SCM Remains 63% Subsidiary
-----------------------------------------------
The Board of Directors of SembCorp Industries Ltd (SCI) said
that at the Court Meeting of Scheme Shareholders of SembCorp
Marine Ltd (SCM) held on October 21, 2002, the Scheme
Shareholders have not approved the Scheme of Arrangement to
privatize SCM as announced by SCI on June 24, 2002.

Accordingly, the Scheme will not become effective and binding
and SCM will remain a 63 per cent subsidiary of SCI listed on
the main board of the Singapore Exchange Securities Trading
Limited.

Wong Kok Siew, Deputy Chairman and CEO of SCI said: "We have put
what we considered a fair price of $1.10 per share on the table
and the market generally agreed it was fair. We secured 73.8 per
cent of minority shareholder support at the Court Meeting but
unfortunately this fell short of the required 75 per cent
approval threshold. Notwithstanding the fair price, some
minority shareholders preferred to keep a direct stake in SCM
and voted against the privatization. As minority shareholders of
SCM, they have spoken, and we respect their decision. "

"We remain committed to Marine Engineering as a Key Business of
SembCorp Industries and will continue to work with SCM's
management to grow the business globally."

TCRA reported that SembCorp Industries had S$2 billion of debt
as of Dec 31, 2001.

The Company has been trying to rationalize its businesses by
combining its marine operations and divesting others. The market
would be looking for more divestments going down the road.

For media and analyst enquiries, please call:

Ms Ng Lay San
Manager
Group Corporate Relations
SembCorp Industries
Tel: (65) 6357 9150
Fax: (65) 6352 2163
Email: laysan@sembcorp.com.sg



===============
T H A I L A N D
===============


KRUNG THAI: Begins Work on New Online Banking System
----------------------------------------------------
Restructuring Krung Thai Bank announced recently that it is
developing a system for processing and verifying all online
financial transactions in real time.

Dubbed as its new "Core Banking System," the bank hopes to
complete the installation of the system by March 2004, the
Bangkok Post said.

With the new system, the bank would be able to carry out real-
time online operations around the clock.  The bank said it is
currently developing the supporting hardware and software
systems.  The report says the system will be test-run at some of
its branches shortly.

The bank recently bared problem loans of 70.33 billion baht at
end-September, up from 68.86 billion baht at end-August.  A
recent TCR-AP report pegged Krung Thai's assets at 1.062
trillion baht with total liabilities amounting to 997.68 billion
baht.



S U B S C R I P T I O N  I N F O R M A T I O N

Troubled Company Reporter -- Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ
USA, and Beard Group, Inc., Washington, DC USA. Lyndsey Resnick,
Salve M. Mordeno, Maria Cristina Pernites-Lao, Editors.

Copyright 2002.  All rights reserved.  ISSN: 1520-9482.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.  Information
contained herein is obtained from sources believed to be
reliable, but is not guaranteed.

The TCR -- Asia Pacific subscription rate is $575 for 6 months
delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are $25 each.  For subscription
information, contact Christopher Beard at 240/629-3300.

                 *** End of Transmission ***