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       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

         Friday, October 31, 2003, Vol. 6, No. 216

                         Headlines

A U S T R A L I A

AMP LIMITED: Westpac Rumored Joining NAB in Race for Aussie Biz
AMP LIMITED: Institutional Investors Back Demerger, Says CEO
DJF PTY: Three Years Jail Time for Former Tasmanian Director
MAYNE GROUP: Buys Two Oncology Products for US$6.6 Million


C H I N A  & H O N G K O N G

ARTS & SALES: Winding up Hearing Set November 24
SUREGOLD DEVELOPMENT: Court Sets Winding up Hearing Nov. 19
TROTING ASSOCIATION: Faces Winding up Petition in High Court
WAH-FUNG: Hearing on Winding up Petition November 12


I N D O N E S I A

BANK INTERNASIONAL: Kookmin-Temasek Group Wrests 51% Stake
BANK NEGARA: Loss from Lending Scam Could Top US$150 Million


J A P A N

DAIEI INC.: Rehab Plan Features Asset Sales
FUJITSU LIMITED: Selling Shares in FANUC
FUJITSU LIMITED: Trims First-half Loss to Y58B
HITACHI LIMITED: Unveils First Half 2003 Results
MATSUYA DENKI: Picks Shinsei Bank as Rehabilitation Sponsor

MATSUSHITA ELECTRIC: Reorganizes European Car Audio Business
MATSUSHITA ELECTRIC: Posts Y23.15B Net Profit on Restructuring
RESONA HOLDINGS: Cutting 4,000 Jobs, Speeding Up Reorganization


K O R E A

KOREA THRUNET: Court Receives Reorganization Plan
SK NETWORKS: Creditors Offer US$2.6B Rescue Package


M A L A Y S I A

AKTIF LIFESTYLE: Unveils Group Reorganization Scheme
FARLIM GROUP: Terminates Share Sale Agreement With PAHL
HIAP AIK: Appoints Horwarth as Independent Auditor
INTAN UTILITIES: Defaults on Debt Payments
JASATERA BERHAD: Enters SPA Deal With Alloy Consolidated

KILANG PAPAN: Issues Restructuring Scheme Update
KSU HOLDINGS: Answers KLSE Query
LONG HUAT: Extends Restraining Order to January 31
SENG HUP: Extends Investigative Audit to November 24


P H I L I P P I N E S

MANILA ELECTRIC: Revises 2003 Sales Growth Target to 4.3%
MANILA ELECTRIC: Offers Rediscounted Debt Papers
NATIONAL BANK: Taps JP Morgan as Arranger of Notes Issue
NATIONAL BANK: S&P Assigns Notes Issue Ratings


S I N G A P O R E

ASIA PULP: Signs Debt Restructuring Deal
CSC HOLDINGS: Post Changes in Shareholder's Interest
FLEXTECH HOLDINGS: Dissolves Korean Unit
FREIGHT LINKS: Completes Debt Restructuring Scheme
ST ASSEMBLY: Offers US$115M Convertible Notes Due 2008

WEE POH: Appoints Tony Phua as Alternate Director


T H A I L A N D

KRUNG THAI: Transfers Substandard Assets to TAMC   
MODERN HOME: Posts Additional Information on Capital Increase   

* Large Companies with Insolvent Balance Sheets

     -  -  -  -  -  -  -  -

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


AMP LIMITED: Westpac Rumored Joining NAB in Race for Aussie Biz
---------------------------------------------------------------
AMP CEO Andrew Mohl is keeping everybody guessing as to whether
a takeover is in the works following the split of the company's
U.K. and main Australian operations.

Asked recently to confirm reports that Westpac had approached
the company with a takeover offer, Mr. Mohl declined, preferring
to put things in broad terms: "We meet people all the time and
we've got nothing official to say about our interactions with
any banks at this point in time."

Speculation is that Westpac Banking Corporation will join the
takeover derby recently sparked by the admission of National
Australia Bank that it is eyeing the Australian business.  
Yesterday, Westpac CEO David Morgan refused to say whether he
had met Mr. Mohl, but said his company would be "patient and
disciplined" if it made any major acquisitions.


AMP LIMITED: Institutional Investors Back Demerger, Says CEO
------------------------------------------------------------
Briefings with institutional investors on the merits of the
demerger plan show strong support for the strategy, CEO Andrew
Mohl said Thursday.

"In my meetings with institutional investors we've received a
lot of support with the proposal," Dow Jones quoted Mr. Mohl as
saying.

He said investors agree that the split will unlock the value of
the Australian wealth management business, which has been
"carrying the handicap" for the loss-making U.K. operations.

The demerger proposes to spin-off HHG PLC, the U.K. operations
that will be listed separately, with the Henderson investment
management franchise to be the growth engine of the new entity.  

Asked whether the company is entertaining bids for the U.K.
business, Mr. Mohl admitted it is considering the option,
although the planned stock market listing is "almost certain" to
go ahead.

AMP shareholders will vote on the demerger proposal on December
9, 2003.


DJF PTY: Three Years Jail Time for Former Tasmanian Director
------------------------------------------------------------
Mark Anthony Johnstone, 46, of Tamworth New South Wales, was
sentenced Wednesday to 3 years imprisonment subject to a
recognizance release order to take effect after 18 months.

Mr. Johnstone, a former director of DJF Pty Ltd, which traded as
MI Machinery at Youngtown in Launceston, was sentenced after
pleading guilty to 6 charges of fraud brought by ASIC.  The
charges were laid following an investigation by the Australian
Securities and Investments Commission (ASIC) into the failure of
DJF Pty Ltd, which traded as MI Machinery at Youngtown in
Launceston, Tasmania.

DJF Pty Ltd was involved in the sale of farm and earth-moving
equipment and went into liquidation on 4 May 1999 with debts of
more than $2.5 million.  ASIC alleged that Mr. Johnstone, while
a director of DJF, knowingly assisted DJF in applying for and
obtaining finance on the basis of fraudulently prepared invoices
in respect of machinery that did not exist.

More than $769,000 was defrauded from several banks and finance
companies, including National Mutual, Esanda, BankWest and Trust
Bank. Approximately $650,000 was not recovered.

Mr Johnstone has also entered into a recognizance of $2000 to be
of good behavior for two years from the date of his release.

The matter was prosecuted by the Commonwealth Director of Public
Prosecutions.


MAYNE GROUP: Buys Two Oncology Products for US$6.6 Million
----------------------------------------------------------
After selling its hospitals business recently and hinting about
the sale of its pharmaceutical distribution operations earlier
this week, it's now Mayne's turn to go on an acquisition spree.

According to Asia Pulse, Mayne has acquired the oncology
products methotrexate sodium and leucovorin calcium from
Xanodyne Pharmacal Inc. for US$6.6 million.  It expects EBITDA
of US$2 million from this acquisition in the next 12 months.  
Included in the acquisition are the trademarks, dossiers and
associated contracts for both products.  The company will take
over selling the products in November.

Mayne group Managing Director Stuart James said both products
would further expand Mayne's specialty focus in the oncology
field in the US and would provide greater market presence.

"The introduction of methotrexate and leucovorin combine well
with the addition of paclitaxel in the U.S. and builds on last
years launch of pamidronate, altogether enhancing our generic
oncology product range for our customers," Mr. James was quoted
by Asia Pulse as saying.

"We have a good understanding of these two products because we
manufacture and market them in our other major regions and this
transaction means our entry to the U.S. market is on a well
established sales base," he said.  

Methotrexate is used in treating a range of concerns, while
leucovorin is used to counteract the toxic side effects of
certain chemotherepy treatments, including methotrexate, Asia
Pulse said.


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


ARTS & SALES: Winding up Hearing Set November 24
------------------------------------------------
The High Court of Hong Kong will hear on November 24, 2003 at
9:30 a.m. the petition seeking the winding up of Arts & Sales
(Hong Kong) Limited.

Man Wai Wah of Room 808, 8/F., Yat Yeung House, Tin Yat Estate,
Tin Shui Wai, New Territories, Hong Kong filed the petition on
September 29, 2003.  Tam Lee Po Lin, Nina represents the
petitioner.

Creditors and other interested parties are encouraged to attend
the hearing.  They only need to notify in writing Tam Lee Po
Lin, Nina, which holds office on the 34th Floor, Hopewell
Centre, 183 Queen's Road East, Wanchai Hong Kong.


SUREGOLD DEVELOPMENT: Court Sets Winding up Hearing Nov. 19
-----------------------------------------------------------
The High Court of Hong Kong will hear on November 19, 2003 at
10:00 a.m. the petition seeking the winding up of Suregold
Development Limited.

Tsoi Kim Fai of 8/F., 38A Whampoa Street, Kowloon, Hong Kong
filed the petition on September 24, 2003.  Tam Lee Po Lin, Nina
represents the petitioner.

Creditors and other interested parties are encouraged to attend
the hearing.  They only need to notify in writing Tam Lee Po
Lin, Nina, which holds office on the 34th Floor, Hopewell
Centre, 183 Queen's Road East, Wanchai Hong Kong.


TROTING ASSOCIATION: Faces Winding up Petition in High Court
------------------------------------------------------------
The High Court of Hong Kong will hear on December 3, 2003 at
9:30 a.m. the petition seeking the winding up of Troting
Association Limited.

Leung Wai Ying of Room 1022, Shek Sau House, Shek Lei Estate,
Tsuen Wan, New Territories, Hong Kong filed the petition on
October 8, 2003.  Tam Lee Po Lin, Nina represents the
petitioner.

Creditors and other interested parties are encouraged to attend
the hearing.  They only need to notify in writing Tam Lee Po
Lin, Nina, which holds office on the 34th Floor, Hopewell
Centre, 183 Queen's Road East, Wanchai Hong Kong.


WAH-FUNG: Hearing on Winding up Petition November 12
----------------------------------------------------
The High Court of Hong Kong will hear on November 12, 2003 at
10:00 a.m. the petition seeking the winding up of Wah-Fung
Components Limited.

Chan Yiu Wai Jackie of Room 9, 7/F., Sheung Mei House, Sheung
Tak Estate, Tseung Kwan O, New Territories, Hong Kong filed the
petition on September 19, 2003.  Tam Lee Po Lin, Nina represents
the petitioner.

Creditors and other interested parties are encouraged to attend
the hearing.  They only need to notify in writing Tam Lee Po
Lin, Nina, which holds office on the 34th Floor, Hopewell
Centre, 183 Queen's Road East, Wanchai Hong Kong.


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


BANK INTERNASIONAL: Kookmin-Temasek Group Wrests 51% Stake
----------------------------------------------------------
The Indonesian Bank Restructuring Agency picked the consortium
led by Kookmin Bank and Temasek Holdings Pte. Ltd. to buy the
government's controlling stake in PT Bank Internasional
Indonesia.

The group, which also includes the U.K.'s Barclays Bank Plc and
Switzerland's ICB Financial Group Holdings, outbid the other
consortium led by Bank Panin, a mid-size local bank and
Austria's Raiffeisen Zentralbank Osterreich AG.  

Earlier in the week, the agency delayed awarding the stake to
either bidder until they increased their offer.  It is not clear
how much was eventually offered by the Kookmin-Temasek group to
win the bid, according to Dow Jones.  Unnamed officials told the
news agency the winning offer valued Bank Internasional at 1.2
times its book value of 68 rupiah a share.  Banking analysts say
this could easily value the 51% at US$230 million.  The deal is
still subject to regulatory approval.

Dow Jones says the sale could potentially change the banking
landscape in Indonesia.  Analysts interviewed by the news agency
say a merger between Bank Internasional and PT Bank Danamon is
not farfetched further down the road.  Temasek earlier this year
also bought the government's 51% stake in Danamon.  A merger
between the two banks could create Indonesia's second largest
bank next to PT Bank Central Asia.

"It makes business sense to merge the two," according to Liny
Halim, a bank analyst at ING Securities in Jakarta, in an
interview with Dow Jones.  She said that while both are strong
in consumer banking, their strengths are complementary: BII has
a good business in credit cards, while Danamon has specialized
in consumer loans.

Temasek spokeswoman Rachel Lin told Dow Jones the bank will
"keep an open mind" about the possibility of merging the two
Indonesian banks down the road.


BANK NEGARA: Loss from Lending Scam Could Top US$150 Million
------------------------------------------------------------
The number of suspects involved in the US$150 million lending
scam at PT Bank Negara Indonesia is set to increase in the
coming days as police investigation into the scandal deepens.

Dow Jones says 10 more suspects connected to eight companies are
set to be announced in the coming days; this in addition to the
two bank executives already in custody for almost a week now.  
At least nine individuals have been banned from leaving the
country on suspicion of violating anticorruption laws.

The probe was triggered by the discovery of fictitious letters
of credit valued at US$200 million, later traced to the two
executives now in custody.  The 10 other possible suspects are
from the eight companies granted loan guarantees valued at
around IDR1.2 trillion, police Deputy Chief Suyitno Landung told
Dow Jones.  Police estimate the amount involved in the scam
could go as high as US$150 million.

Bank Spokeswoman Lilies Handayani said the bank welcomes the
probe, adding it had also found "procedural irregularities" by
bank officials in its internal probe.

"We [were] the ones who reported the case so we will be open to
police investigation because this matter needs to be resolved as
soon as possible," she said.  "These people didn't follow the
procedures that we have and this appears to be a case of
misconduct.  The investigation is ongoing and we are
cooperating."

She admitted the bank could lose as much as US$150 million but
she said much of this amount could be recouped before the
letters of credit come due next year.

Shares of the bank fell 5% to 95 rupiah each, according to Dow
Jones.  They have lost more than 40% since October 14.


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


DAIEI INC.: Rehab Plan Features Asset Sales
-------------------------------------------
The proposed rehabilitation of Daiei Inc.'s Fukuoka hotel,
ballpark and baseball business will feature the sale of assets
and financial aid from 6 main banks including UFJ Bank, Mizuho
Corporate Bank and Sumitomo Mitsui Banking Corporation, Japan
Times reports.

Daiei will sell the Sea Hawk Hotel and Resort and the Fukuoka
Dome stadium to U.S. investment fund Colony Capital LLC but will
hold onto the Fukuoka Daiei Hawks baseball team. Daiei will
conduct an equity swap for its loans to the baseball club to
improve its financial standing.

Colony Capital will acquire about 60 billion yen of the 120
billion yen in interest-bearing debts held by the Fukuoka
operations, and Daiei will repay the remaining 60 billion yen by
selling off group assets and obtaining debt waivers from the six
banks.


FUJITSU LIMITED: Selling Shares in FANUC
----------------------------------------
As part of Fujitsu Ltd.'s effort to enhance its financial
stability, such as its ongoing reduction of interest-bearing
liabilities, it has decided to sell a portion of its
shareholdings in Fanuc Ltd. (FANUC) through a secondary offering
(the Offering). Details are as follow:

Fujitsu will make an announcement concerning the effects of the
Offering on its earnings as soon as the amount of the Offering
is determined.

Number of shares sold: 24,000,000 shares

In addition to the number of shares stated above, Fujitsu plans
to grant an option to purchase up to 3,600,000 additional shares
(the "Greenshoe Option) to Nikko Citigroup, the lead manager of
the Offering (the Lead Manager). The Greenshoe Option will be
exercisable until the thirtieth day from the day following the
end of the application period for the Offering (if the thirtieth
day is not a business day, the last business day prior to this
day).

Remaining shares of FANUC held by Fujitsu after the Offering
35,681,663 shares

The percentage of total voting rights to be held by Fujitsu in
FANUC, including the 8,000,000 shares held by the employee
pension trust over which Fujitsu retains voting rights, will be
19.64 percent (disregarding the Greenshoe Option stated above).

Fujitsu has agreed with FANUC as well as the Lead Manager not to
transfer or sell, excluding the Offering, shares of common stock
(including latent stock) of FANUC that Fujitsu holds at the time
of execution of the subscription agreement for the Offering, nor
to issue securities bearing the right to acquire shares of
common stock of FANUC that Fujitsu holds, for a period of 180
days from the execution of the said subscription agreement (the
"Lock-up Period) without prior written consent from the Lead
Manager. However, the Lead Manager bears the right to partially
or completely terminate this agreement or to shorten the
restriction period, by its own judgment.

In addition to the above agreement, Fujitsu has expressed to
FANUC and the Lead Manager its intention to maintain its
shareholding in FANUC beyond the expiration of the Lock-up
Period.

About Fujitsu

Fujitsu is a leading provider of customer-focused IT and
communications solutions for the global marketplace. Pace-
setting technologies, highly reliable computing and
telecommunications platforms, and a worldwide corps of systems
and services experts uniquely position Fujitsu to deliver
comprehensive solutions that open up infinite possibilities for
its customers' success. Headquartered in Tokyo, Fujitsu Limited
(TSE:6702) reported consolidated revenues of 4.6 trillion yen
(US$38 billion) for the fiscal year ended March 31, 2003. For
more information, please see : http://www.fujitsu.com/.


FUJITSU LIMITED: Trims First-half Loss to Y58B
----------------------------------------------
Computer maker Fujitsu Limited posted a net loss of 58.56
billion yen in the first half of this year, versus a loss of
147.44 billion yen in the same period a year earlier, according
to Japan Times. The Company cited the absence of major
restructuring charge booked a year ago.

Sales in the Company's software business fell 1 percent during
the six-month period, while operating profit was nearly halved
to 28.8 billion yen, dragged down by a poor showing in North
America and by heavy development investment.


HITACHI LIMITED: Unveils First Half 2003 Results
------------------------------------------------
Hitachi, Ltd. announced its consolidated financial results for
the first half of fiscal 2003, ended September 30, 2003.

During the interim period, economic conditions steadily improved
in the U.S., where the driving force of expansion was personal
consumption, and there was a rapid recovery in Asia following a
temporary slowdown due to the effects of the severe acute
respiratory syndrome (SARS) outbreak.

The Japanese economy also showed signs of an upturn, with
personal spending holding firm and private-sector plant and
equipment investment rebounding. The economy, however, was
hampered by falling product and service prices as the
deflationary economy persisted.

Against this backdrop, Hitachi's consolidated net sales rose 3
percent, to 4,041.4 billion yen (US$36,409 million), despite
major year-on-year changes in Information & Telecommunication
Systems, Electronic Devices and other segments due to the
effects of ongoing business portfolio realignment across the
Hitachi Group. Operating income dropped 67 percent, to 20.2
billion yen (US$182 million), but this was better than forecast.

By segment, Information & Telecommunication Systems sales rose
20 percent, to 1,053.2 billion yen (US$9,489 million). Sales for
software and services were steady thanks to increased
outsourcing services for financial institutions, and the
hardware sector was bolstered by the inclusion of sales from
hard disk drive (HDD) operations acquired from IBM Corporation
and base stations for mobile phones. The segment saw operating
income decrease 87 percent, to 5.3 billion yen (US$49 million),
mainly due to operating losses in HDD operations acquired from
IBM Corporation.

In Electronic Devices, sales declined 21 percent, to 607.5
billion yen (US$5,473 million). Sales fell sharply in
semiconductor operations due to the April 2003 transfer of most
of this business to equity-method affiliate Renesas Technology
Corp., a joint venture with Mitsubishi Electric Corporation. In
displays, while sales of small and medium-size TFT LCDs for
mobile phones were brisk, sales of large-size TFT LCDs
decreased. The segment recorded operating income of 3.6 billion
yen (US$33 million), reversing an operating loss of 7.9 billion
yen (US$71 million) in the same period of the previous fiscal
year. This improvement was attributable to the transfer of
semiconductor operations as well as to strong performances in
semiconductor manufacturing equipment and life science systems,
among other areas.

In Power & Industrial Systems, sales were on a par with the
previous year's interim period at 1,073.4 billion yen (US$9,671
million). Hitachi Construction Machinery Co., Ltd. recorded
higher sales, mainly to China and other overseas markets, and
sales of automotive products were markedly higher in line with
the inclusion in consolidated results of the former Unisia JECS
Corporation (now Hitachi Unisia Automotive, Ltd.), which became
a subsidiary in October 2002. On the other hand, sales of power
generation equipment continued to languish. Segment operating
income decreased 29 percent, to 7.9 billion yen (US$71 million),
despite a dramatic improvement in earnings at Hitachi
Construction Machinery. This decline primarily reflected
deterioration in profitability in power generation equipment and
public-works facilities in line with lower sales.

In Digital Media & Consumer Products, segment sales edged down 2
percent, to 585.4 billion yen (US$5,274 million). Sales of
plasma TVs, projection TVs and other display equipment rose.
However, sales of large home appliances declined due to sluggish
domestic demand and falling sales prices as well as the effect
of unseasonable weather in Japan. At Hitachi Maxell, Ltd.,
optical media sales remained healthy. Segment operating income
dropped 87 percent to 0.7 billion yen (US$7 million). This was
partly due to the effect of unseasonable weather on room air
conditioners.

In High Functional Materials & Components, segment sales edged
up 1 percent, to 622.2 billion yen (US$5,605 million). At
Hitachi Cable, Ltd., sales in electric equipment, construction
and others were soft, but sales were robust in information
systems and electronic components. Materials for semiconductors
and displays recorded At Hitachi Chemical Co., Ltd., sales
growth, and sales were strong for industrial materials such as
carbon materials for negative electrodes for lithium-ion
batteries. At Hitachi Metals, Ltd., sales were lackluster in
construction components, plant and equipment, but remained
strong in respect of high-grade metal products and materials and
of high-grade casting components for automobiles. Segment
operating income increased 2 percent, to 9.2 billion yen (US$83
million).

In Logistics, Services & Others, segment sales decreased 13
percent, to 612.9 billion yen (US$5,522 million), despite strong
sales from the logistics solutions business at Hitachi Transport
System, Ltd. Overseas sales companies saw sales decline due to
the transfer of semiconductors sales operations to the newly
established Renesas Technology, and the transfer of HDD sales
operations to Hitachi Global Storage Technologies. The segment
recorded an operating loss of 0.3 billion yen (US$4 million),
compared with operating income of 1.4 billion yen (US$13
million) in the same period of the previous fiscal year.

In Financial Services, low interest rates and a declining volume
of automobile loans to individuals affected results. Segment
sales declined 9 percent, to 267.9 billion yen (US$2,414
million) and segment-operating income declined 56 percent, to
8.1 billion yen (US$74 million).

Other income increased 319 percent, to 111.9 billion yen
(US$1,008 million), despite lower interest income and dividends
received. This increase was mainly attributable to higher gains
on the sale of marketable and investment securities, notably the
sale of shares in affiliate Nitto Denko Corporation. Meanwhile,
other deductions declined 24 percent, to 41.6 billion yen
(US$375 million), due to an improvement in results from equity-
method affiliates.

As a result, Hitachi recorded income before income taxes and
minority interests of 90.5 billion yen (US$815 million), and
after 76.1 billion yen (US$686 million) in income taxes, income
before minority interests of 14.3 billion yen (US$129 million).
Hitachi recorded net income of 5.3 billion yen (US$49 million),
5 percent lower than in the same period of the previous fiscal
year.

Financial Position

Operating activities provided net cash of 224.5 billion yen
(US$2,023 million), an increase of 33.0 billion yen (US$297
million) compared with the previous year. This was primarily the
result of decreases in inventories and payables.

Investing activities used net cash of 157.1 billion yen
(US$1,416 million), an increase of 28.2 billion yen (US$254
million) compared with the previous year. While there were cash
inflows from the sale of investments and subsidiaries' common
stock, there was an increase in cash outflows for the purchase
of property, plant and equipment for businesses.

Free cash flows, the sum of cash flows from operating activities
and investing activities, were a positive 67.4 billion yen
(US$607 million), an increase of 4.8 billion yen (US$44 million)
from the previous year.

Financing activities used net cash of 173.7 billion yen
(US$1,565 million), an improvement of 241.0 billion yen (US$217
million), mainly due to a decrease in borrowings resulting from
the use of a pooling system for Hitachi Group funds. Cash was
used for the purchase of Hitachi's own shares in May 2003.

As a result, cash and cash equivalents as of September 30, 2003
amounted to 709.0 billion yen (US$6,388 million), a reduction of
119.0 billion yen (US$1,073 million) during the interim period.

Debt on September 30, 2003 stood at 2,702.6 billion yen
(US$24,348 million), 137.9 billion yen (US$1,243 million) less
than at March 31, 2003 as a result of a decrease in long-term
debt due to the repayment of borrowings.

Capital investment on a completion basis rose 2 percent, to
380.9 billion yen (US$3,432 million), while depreciation
decreased 5 percent, to 213.9 billion yen (US$1,927 million).
R&D expenditures amounted to 184.4 billion yen (US$1,662
million), a decrease of 3 percent from the previous year, and
corresponded to 4.6 percent of net sales.

All figures, except for the outlook for fiscal 2003, were
converted at the rate of

111 yen = U.S.$1, the approximate exchange rate on the Tokyo
Foreign Exchange Market as of September 30, 2003.

Outlook for Fiscal 2003

The recovery in the world economy is expected to become even
more evident based on a number of factors: expectations for
moderate growth in the key U.S. economy driven by higher
personal spending; recovery in Asia on the back of the U.S.
upswing; and the view that European economies have bottomed out.

The Japanese economy, while benefiting from the continuation of
strong exports to the U.S. and Asia as well as increasing
private-sector plant and equipment investment, is expected to
remain difficult. With more work to do in regards to
deregulation and measures to tackle other structural economic
issues, such as the disposal of problem loans, there are no
immediate expectations for a dramatic improvement in the job
market or wage levels. And the significant changes in foreign
exchange rates that have recently occurred continue to impact
corporate earnings. These and other factors are creating an
unpredictable operating environment.

Under these circumstances, Hitachi will push ahead with efforts
to create new businesses and strengthen key business domains by
capturing synergies in resource use across the Hitachi Group,
guided by "i.e. HITACHI Plan II." The Company will also focus on
structural reforms to concentrate more resources on highly
profitable businesses and on measures to improve its financial
position.

Projections for fiscal 2003, as given below, assume an exchange
rate of 110 yen to the U.S. dollar.



  Net sales            8,350.0 billion yen        (year-on-year
                    (US$75,909 million)        increase of 2%)

Operating income   170.0 billion yen         (year-on-year
                    (US$1,545 million)        increase of 11%)

Income before income    225.0 billion yen         (year-on-year
taxes and minority (US$2,045 million)        increase of 132%)
                                            interests

   Income before   45.0 billion yen          (year-on-year
  minority interests  (US$409 million)          increase of 2%)

     Net income    10.0 billion yen          (year-on-year
                   (US$91 million)         decrease of 64%)

Management Policy

Basic Management Policy and Strategy

Amid intensifying competition in world markets and the economic
slump in Japan, Hitachi is reviewing and reshaping its business
portfolio from the perspective of raising the efficiency of
operations and with the aim of achieving further growth. This
process will be consistent with Hitachi's basic management
policy, which is to increase shareholder value by raising the
return on capital and increasing market capitalization.
In line with this basic policy, in January 2003, Hitachi
unveiled a new medium-term management plan, "i.e. HITACHI Plan
II," which runs through fiscal 2005 (ending in March 2006). This
three-year period is positioned as a key juncture for focusing
on highly profitable businesses. Hitachi will create growth and
new businesses in key fields where it can leverage the group's
technological strengths and know-how. During this period,
Hitachi will also enact major reforms of the Company's operating
framework. Hitachi plans to exit unprofitable businesses and
push through restructuring measures that go beyond the corporate
group. Hitachi will use FIV(1) (Future Inspiration Value) to
make decisions on whether to exit, strengthen or incubate
specific businesses.

(1) FIV is Hitachi's economic value-added evaluation index in
which the cost of capital is deducted from after-tax operating
profit. After-tax operating profit must exceed the cost of
capital to achieve positive FIV.

The "i.e. HITACHI Plan II" targets two primary business domains
-- "New Era Lifeline Support Solutions," which further fuse and
enhance information systems services and social infrastructure
systems, and "Global Products Incorporating Advanced
Technology," where Hitachi aims to achieve strong growth in
global markets by focusing on technologies as well as high-
performance hardware and software that incorporate knowledge
from several disciplines. In this way, Hitachi will establish a
highly profitable earnings structure and advance to a new stage
of growth.

The "i.e. HITACHI Plan II" will transform Hitachi's earnings
structure so that it can achieve positive FIV in fiscal 2005.
This mandates an operating margin of at least 5 percent and ROE
of at least 8 percent, which will be achieved by implementing a
variety of measures. Furthermore, Hitachi has set the goal of
maintaining a single-A grade long-term credit rating by
strengthening its financial position.

In deciding on individual investments, Hitachi's policy is to
use FIV to select investments that will contribute to maximizing
shareholder value. Combined with further efforts to reduce
assets, including accounts receivables and inventories, Hitachi
aims to raise the return on assets.

Positioning its brand as an important asset underpinning the
Company's competitiveness in an era of consolidated group
management, Hitachi is promoting brand management to enhance
brand equity.

Corporate Governance

    (1) Basic Stance and Initiatives Regarding Corporate
Governance

Hitachi is working to reinforce corporate governance to
establish an executive system that facilitates speedy businesses
operations and a high degree of transparency. In June 2003,
Hitachi adopted the Committee System to ensure the effective
supervision of management and promote faster decision-making by
demarcating responsibilities for management oversight and those
for the execution of business operations. The Board of Directors
focuses on decisions involving basic management policies and
management supervision while entrusting to executive officers
most of its authority to make decisions with respect to
Hitachi's business affairs. The Board of Directors has 13
members, 4 of whom are from outside Hitachi. Three directors
serve concurrently as executive officers. The Chairman of the
Board does not serve concurrently as an executive officer.
Within the Board of Directors three committees have been
established -- the Nominating Committee, Audit Committee and
Compensation Committee -- with outside directors accounting for
the majority of members of each committee. Hitachi has also set
up a Group Management Committee on its own volition; this
committee gives the Board of Directors advice on and monitors
management of the group as a whole. Hitachi's 18 publicly held
group companies have also adopted the Committee System with the
similar aim of speeding up operations and improving management
efficiency by increasingly managing the group in a uniform way.
Additionally, to ensure strict observance of laws and
regulations, Hitachi established a Compliance Division as a
specialist body reporting directly to the President. Besides
running educational programs on legal compliance and conducting
related audits, the Compliance Division receives, investigates
and responds to internal complaints. Accompanying these
initiatives, Hitachi has established the Advisory Board, an
oversight body comprising members from outside the Company,
including attorneys. Another aspect of Hitachi's compliance
system is that audit fees and non-audit services provided by
independent auditors require the pre-approval of the Audit
Committee.

(2) Personal, financial and trading relationships between
Hitachi and outside directors and other beneficial relationships

Hitachi has continuous business transactions with Asahi Glass
Co., Ltd., the Chairman of the board of which is Hitachi outside
director Hiromichi Seya, and Nippon Steel Corporation, the
Chairman of the board of which is Hitachi outside director Akira
Chihaya.

Policy on the Distribution of Earnings

Hitachi sets dividends by taking into consideration a range of
factors, including its financial condition, results of
operations and payout ratio. This policy is motivated by the
desire to ensure the availability of sufficient internal funds
for making investments in R&D and plant and equipment that are
essential for maintaining competitiveness and improving
profitability based on medium- and long-term plans, as well as
to ensure the stable growth of dividends. Moreover, Hitachi has
adopted a flexible stance toward the acquisition of its own
shares, taking business plans, financial condition, market
conditions and other factors into consideration in this respect.


MATSUYA DENKI: Picks Shinsei Bank as Rehabilitation Sponsor
-----------------------------------------------------------
Struggling appliance retailer Matsuya Denki Co. has chosen the
Shinsei Bank group as sponsor for its rehabilitation, Kyodo News
reported on Thursday. The Shinsei Bank group will establish a
new firm as early as in November to acquire Matsuya Denki's
businesses that are still profitable for about 13 billion yen.


MATSUSHITA ELECTRIC: Reorganizes European Car Audio Business
------------------------------------------------------------
Matsushita Electric Industrial Co., Ltd. announced plans to
reorganize its European car audio business operations. This move
is part of the Company's efforts to become a top supplier of car
electronics equipment in Europe. As part of this reorganization,
Matsushita will establish a new R&D/sales Company, Panasonic
Automotive Systems Europe GmbH (PASE) headquartered in Munich,
Germany on April 1, 2004, as a subsidiary of Matsushita Electric
Europe (HQ) Ltd. The new Company will be established by merging
the R&D division of Panasonic Automotive Systems Deutschland
GmbH (PASD) located in Neumuenster, Germany, with the car
electronics sales division of Panasonic Industrial Europe GmbH,
based in Munich. In connection with these shifts, Matsushita
will discontinue operations at PASD, an R&D and manufacturing
subsidiary, on March 31, 2004. Meanwhile, manufacturing of car
audio products at PASD will be transferred to Matsushita's
existing production site, Panasonic Mobile & Automotive Systems
Czech s.r.o. in Pardubice, Czech Republic.

The reorganization of the above-mentioned European car
electronics business reflects Matsushita's strategy to increase
its focus on the European automotive industry, which accounts
for approximately 30 percent(*) of global automobile production.

(*)internal estimate based on data released by automobile
manufacturers

Upon the implementation of Matsushita's Group wide business and
organizational restructuring in January 2003, Panasonic
Automotive Systems Company (PAS), headquartered in Shinagawa,
Japan, was established to create an optimum integrated
operational structure in the car electronics field, for R&D,
manufacturing and sales.

PAS has concentrated its efforts on enhancing a consistent,
customer-oriented approach in each of the four regions of North
America, Europe, China and Japan, in response to the global
expansion of automobile manufacturers. Such efforts include the
establishment of a newly reorganized Panasonic Automotive
Systems Company of America in April 2003.

Matsushita Electric Industrial Co., Ltd., best known for its
"Panasonic" brand products, is one of the world's leading
manufacturers of electronic and electric products for consumer,
business and industrial use. Matsushita's shares are listed on
the Tokyo, Osaka, Nagoya, Fukuoka, Sapporo, New York, Pacific,
Euronext Amsterdam, Euronext Paris, Frankfurt and Dusseldorf
stock exchanges. For more information, visit the Matsushita web
site at the following URL: http://www.panasonic.co.jp/global/

Basic Information for PASD (as of September 30, 2003)

Company name: Panasonic Automotive Systems Deutschland GmbH

Representative: Shigeru Matsuda, President

Location of head office: Neumunster, Schleswig-Holstein, F.R.
Germany

Date of incorporation: June 1, 1985

Principal business: R&D and manufacture of car audio equipment
                    for automakers in Europe

Share capital: 26 million Euros

Financial closing date: March 31

Number of employees: 526

Shareholders' equity: 62 million Euros

Shareholders

(% ownership)  Matsushita Electric Industrial Co., Ltd.
              (100%)

Principal customers: Volkswagen AG, AUDI AG, DaimlerChrysler AG,
                     Toyota Motor Manufacturing (UK) Ltd., Honda
                     Export (U.K.) Ltd.

Financial Results for the Most Recent Three Fiscal Years

  (millions of Euros)


    Fiscal year ended:        March    March    March
                              2001     2002     2003

Sales                         209      229      217

Recurring profit (loss)        (8)       0        1

Net income (loss)              (8)       0        1


(Note) Amounts less than 1 million Euros have been omitted.

This matter will have no material effect on Matsushita's
consolidated, or parent-alone financial position or performance.

Basic Information for PASE (as of April 1, 2004)

Company name: Panasonic Automotive Systems Europe GmbH

Representative: To be decided

Location of head office: Munchen-Haar, Bayern, F.R. Germany

Date of incorporation: April 1, 2004

Principal business: R&D and sales of multimedia products and
                    systems for automobiles; Sales of automobile
                    equipment and systems related to the
                    environment, energy conservation and safety

Share capital: 5 million Euros

Number of employees: approximately 220

CONTACT:          Panasonic Finance (America), Inc.
                  Akihiro Takei, 212-698-1365



MATSUSHITA ELECTRIC: Posts Y23.15B Net Profit on Restructuring
--------------------------------------------------------------
Matsushita Electric Industrial Co. posted a group net profit of
23.15 billion yen in the first half of this year because of
restructuring effects and strong sales of digital home products,
according to Japan Times. The electronics maker also reported a
2.9 percent gain in pretax profit to 57.25 billion yen on
consolidated sales of 3.639 trillion yen, up 0.5 percent.

In a disclosure to the U.S. Securities and Exchange Commission,
the restructuring of Matsushita Electric Industrial Co.'s
businesses may not bring the improved efficiency, cost
reductions and growth that the Company aims for Under the Value
Creation 21 plan. Matsushita implemented various management
innovations and restructuring initiatives, such as: closing or
integrating its manufacturing bases in Japan and overseas;
reforming its consumer sales and distribution structure in
Japan; innovating manufacturing and R&DD (R&D and design); and
implementing employment restructuring initiatives.

As another major restructuring measure, Matsushita implemented
share exchanges with five of its majority-owned subsidiaries to
transform them into wholly-owned subsidiaries of Matsushita,
effective October 1, 2002, followed by the creation in January
2003 of a new business domain-based organizational structure
over the entire Matsushita group in place of the traditional,
single product-oriented divisional management system. Under the
new management structure, Matsushita seeks to conduct its
consolidated Groupwide businesses speedily and efficiently, and
to achieve synergies expected from such business restructuring.
Matsushita may not, however, be able to improve efficiency and
reduce costs and realize growth through these measures due to
unexpected additional reorganization or restructuring expenses,
improper allocation of operational resources or other
unpredictable factors.


RESONA HOLDINGS: Cutting 4,000 Jobs, Speeding Up Reorganization
---------------------------------------------------------------
Resona Holdings Inc., which received US$18 billion in a public
bailout, will close branches to 495 by the end of 2004, as part
of its reorganization scheme, the Nihon Keizai newspaper
reported. The bank, which had 19,000 employees as of March 31,
will carry out the job cuts by March 2005.

Resona revised its six-month profit forecast to a loss earlier
this month, saying it would increase provisions for bad loans by
as much as 1.26 trillion yen ($11.6 billion) after changing some
of its provisioning criteria. Resona is expected to submit the
revised business plan to the government's Financial Services
Agency in November.


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


KOREA THRUNET: Court Receives Reorganization Plan
-------------------------------------------------
In a filing to the Securities and Exchange Commission, Korea
Thrunet Co. Ltd. has submitted a draft plan of reorganization
with the Seoul District Court on October 25, 2003.

The court determined to simultaneously hold the second and third
meetings of interested parties for the deliberation and
acceptance of the draft plan of reorganization on November 28,
2003. Once such a plan is accepted by a resolution of the
interested parties, the court will promptly decide whether or
not to confirm such accepted plan.


SK NETWORKS: Creditors Offer US$2.6B Rescue Package
---------------------------------------------------
Creditors and top shareholders of SK Networks Co. offered a 3.08
trillion-won (US$2.6 billion) rescue package to the scandal-
tainted oil-trading firm, according to Reuters. Lenders agreed
to swap 2.23 trillion won of 8.6 trillion won of debt owed by SK
Networks into equity. Top shareholder SK Corporation pledged 850
billion won of aid to help the debt-ridden firm, which is
struggling to emerge from a US$1.2 billion accounting fraud
unearthed in March.

Hana Bank, the Company's main creditor, converted 219.7 billion
won of debt into common stocks, redeemable preferred shares and
convertible bonds while Shinhan Financial Group extended 226.2
billion won of aid, the banks said in filings to the Korea Stock
Exchange.


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


AKTIF LIFESTYLE: Unveils Group Reorganization Scheme
----------------------------------------------------
The Board of Directors of Aktif Lifestyle Corporation Bhd (ALCB)
announced the following transfers of shareholding:

1.1 Aktif Lifestyle Stores Sdn Bhd (ALSSB), a wholly owned
subsidiary of ALCB, has on 28 October 2003 transferred its
equity interest in the following subsidiaries to ALCB:

i) 100% equity interest in Aktif Lifestyle Duty Free Sdn Bhd
(ALDF) comprising 2 ordinary shares of RM1.00 each for a total
cash consideration of RM1.00;

ii) 100% equity interest in Retail Commercio (M) Sdn Bhd (RC)
comprising 500,000 ordinary shares of RM1.00 each for a total
cash consideration of RM1.00;

iii) 100% equity interest in Tioman Duty Free Sdn Bhd (TDF)
comprising 50,000 ordinary shares of RM1.00 each for a total
cash consideration of RM1.00;

iv) 80% equity interest in Dolce Carlotta (M) Sdn Bhd (DC)
comprising 320,000 ordinary shares of RM1.00 each for a total
cash consideration of RM1.00;

v) 49.32% equity interest in Hopemark (M) Sdn Bhd (HSB)
comprising 345,260 ordinary shares of RM1.00 each for a total
cash consideration of RM1.00;

1.2 HSB has also on 28 October 2003 executed the transfer of its
70% equity interest in its subsidiary, Octon Electronics Sdn Bhd
(OESB) comprising 700,000 ordinary shares of RM1.00 each to
ALSSB for a total cash consideration of RM1.00.

ALSSB presently holds 30% equity interest in OESB and following
the above transfer, OESB ceases to be a 70% owned subsidiary of
HSB but instead becomes a direct wholly-owned subsidiary of
ALSSB.

which are collectively referred to as "the Transfers".

2. INFORMATION ON ALDF, RC, TDF, DC, HSB AND OESB

a) ALDF was incorporated on 15 December 1992 and is currently
dormant;

b) RC was incorporated on 17 June 1996 and its principal
activity is operation of specialty retail stores;

c) TDF was incorporated on 15 December 1992 and is currently
dormant;

d) DC was incorporated on 27 October 1989 and is currently
dormant;

e) HSB was incorporated on 14 February 1994 and its principal
activity is investment holding;

f) OESB was incorporated on 26 December 1986 and its principal
activity is retailing of electrical and electronic household
appliances.

3. RATIONALE FOR THE TRANSFERS

The Transfers are made to reorganize ALCB's shareholdings in the
various subsidiaries.

4. FINANCIAL EFFECTS OF THE TRANSFERS

4.1 On Shareholdings

The Transfers in item 1.1 above will result in ALCB holding
direct interest in ALDF, RC, TDF, DC and HSB instead of
indirectly through its wholly owned subsidiary, ALSSB.

4.2 On Earnings and Net Tangible Assets

The Transfers are not expected to have any material effect on
the earnings per share and net tangible assets per share of ALCB
Group for the financial year ending 28 February 2004.

5. APPROVALS REQUIRED

The Transfers are not subject to any conditions or approval of
shareholders of ALCB or any government authorities.

6. SUBSTANTIAL SHAREHOLDERS' AND DIRECTORS' INTERESTS

None of the Directors or Substantial Shareholders of ALCB or
persons connected to them has any interest, direct or indirect
in the Transfers.

7. DIRECTORS' RECOMMENDATION

The Directors of ALCB are of the opinion that the Transfers are
in the best interests of ALCB Group.

c.c. Securities Commission


FARLIM GROUP: Terminates Share Sale Agreement With PAHL
-------------------------------------------------------
Farlim Group (Malaysia) Bhd refers to the announcements dated 19
April 2002, 19 August 2002, 16 January 2003 and 28 February 2003
in relation to the Proposals.

On behalf of Farlim, Commerce International Merchant Bankers
Berhad announced that Farlim had, on 29 October 2003, terminated
the share sale agreement dated 19 April 2002 entered into
between Farlim and Pan-Asia Holdings Limited (PAHL), the
purchaser, in relation to the Proposals in accordance with the
terms and conditions of the said agreement. Accordingly, the
deposit amounting to RM3,500,000 shall be forfeited by Farlim.

Collectively Known As Proposals Are The Following:

- Proposed disposal of 73.3 percent equity interest in Quanzhou
Farlim Real Estate Co. Ltd. (QFRE), an enterprise established in
the People's Republic of China, for a cash consideration of
RM1,000,000 (Proposed Disposal 1);

- Proposed disposal of 100.0 percent equity interest in Farlim
Group (China) Limited (FGCL), a company incorporated in Hong
Kong, for a cash consideration of RM17,500 (Proposed Disposal
2); And

- Proposed settlement of the advances by Farlim to FGCL for a
sum of RM33,982,500 as full and final settlement for Farlim to
discharge and write-off the advances (Proposed Settlement)


HIAP AIK: Appoints Horwarth as Independent Auditor
--------------------------------------------------
Reference is made to the announcement made on 14 August 2003 by
AmMerchant Bank Berhad, on behalf of Hiap Aik Construction
Berhad, relating to the Securities Commission's (SC) approval
for the Proposed Restructuring Scheme vide its letter dated 7
August 2003.

In this regard, on behalf of the Company, Ammerchant Bank Berhad
announced that in compliance with one of SC's conditions in
approving the Proposed Restructuring Scheme, HACB has appointed
Messrs. Horwarth as the independent audit firm on 6 October 2003
to conduct an investigative audit on the Company.


INTAN UTILITIES: Defaults in Debt Payments
------------------------------------------
Intan Utilities Berhad issued a notice of default in payments
under Practice Note 1/2001 of the Kuala Lumpur Stock Exchange as
follows:         

Listing Requirements       
   
Further to the announcement dated 26 September 2003 and pursuant
to Paragraphs 9.02 and 9.04 (1) of the Listing Requirements and
Practice Note No. 1/2001, the Board of Directors announced the
summary of the borrowings in default and the steps taken to
address the defaults by IDS Electronics Sdn. Bhd. (IDSE) and IDS
Technology Sdn Bhd (IDST), 69 percent effectively-owned
subsidiaries of Intan Utilities Berhad.
      
For a copy of the list of loans defaulted as at September 30,
2003, go to http://bankrupt.com/misc/IDSE-Default1031.xls


JASATERA BERHAD: Enters SPA Deal With Alloy Consolidated
--------------------------------------------------------
Pursuant to paragraph 10.04 (1) of the Kuala Lumpur Stock
Exchange Listing Requirements, Jasatera Berhad (Company)
announced the following transactions:

1. On 29 October 2003, Jasatera Berhad entered into a Sale and
Purchase Agreement (SPA) with Alloy Consolidated Sdn Bhd
(Company No. 9850-H) (Purchaser) of No. 141, Jalan SBC 1, Taman
Sri Batu Caves, Selangor Darul Ehsan for the disposal of the
ground and mezzanine floor of the 4-1/2 storey building located
at No. 137, Ground and Mezzanine Floors, Jalan SBC1, Taman Sri
Batu Caves, 68100 Batu Caves, Selangor Darul Ehsan (Property).

2. The sale consideration is RM650,000.00 and had been arrived
at after taking into consideration the current market value and
subsequent negotiation between the parties. Payment shall be by
way of a deposit of RM13,000.00, a part payment of RM52,000.00
and the balance to be payable within three (3) months from the
date of the SPA or the receipt by the Purchasers' Solicitor of
the Developer's consent, whichever is later (Completion Date)

3. The transaction will have no effect on the Company's share
capital and substantial shareholders' shareholding while the
effect on the earning's per share and net tangible asset is not
expected to be material.

4. The expected gain from the disposal of this asset is RM
16,354.00. Cash, which will be used for the Company's working
capital, satisfies the sale consideration and the original cost
is RM 633,646.00. The details of the Purchaser, Alloy
Consolidated Sdn Bhd are provided in item (1) above.

5. The transaction is not subject to the approval of the
Company's' shareholders and relevant government authorities.

6. None of the directors and/or major shareholders and/or
persons connected with a director or major shareholder has any
interest, direct or indirect in the transaction.

7. The shop house is idle and untenanted so the disposal will
generate working capital for the Company.

8. The salient features of the agreement are:

(a) By a settlement agreement dated 13 February 2001(Settlement
Agreement) made between a trade debtor and the Company wherein
the trade debtor had agreed to cause the property to be assigned
to the Company upon the terms and conditions stated therein.


(b) By a deed of assignment dated 27 November 2001(Deed), all
its rights, title, interest, benefits and/or obligations on the
property was assigned to the Company.

(c) On 29 October 2003, the Company entered into a sale and
purchase agreement (SPA) to sell the property to Purchaser,
Alloy Consolidated Sdn Bhd.

9. The date of the sale and purchase agreement where the terms
and conditions of the transaction were agreed upon is 29 October
2003.

10. The Directors are of the opinion that the disposal is in the
best interest of the Company.

11. The estimated time frame for completion of the transaction
is three (3) months from the date of the SPA.

12. The transaction has not departed from the Securities
Commission's policies and guidelines on issuer/offer of
securities.

13. Documents for inspection

The following documents are available for inspection at the
registered office of the Company at No. 29, Jalan SS 15/4E,
47500 Subang Jaya, Selangor Darul Ehsan during normal business
hours for a period of 14 days from the date of this
announcement:

1. The Sale and Purchase Agreement dated 29 October 2003

2. The Deed of Assignment dated 27 November 2001

3. The Settlement Agreement dated 13 February 2001 Agreement>


KILANG PAPAN: Issues Restructuring Scheme Update
------------------------------------------------
Further to our announcement dated 2 October 2003, AmMerchant
Bank Berhad, on behalf of Kilang Papan Seribu Daya Berhad
announced to the Kuala Lumpur Stock Exchange that the Securities
Commission (SC) has approved the Company's application of the
following:

(a) To revise the market valuation of Safoda-Begaraya Land, a
60,000-hectare 60-year leasehold land located in the District of
Pitas Kota Marudu Sabah held by Begaraya Sdn Bhd, a subsidiary
of Resofocus Corporation Sdn Bhd. The SC has approved the market
valuation at RM118.5 million and not RM140 million as proposed
by KPSD; and

(b) The extension of time up to 31 December 2003 for KPSD to
fully implement its Proposed Restructuring Scheme.

KPSD is required to submit a revised Proposed Restructuring
Scheme after incorporating the above revision for SC's
consideration and approval.


KSU HOLDINGS: Answers KLSE Query
--------------------------------
The Receiver and Manager Appointed (R&M) of KSU Holdings Berhad
refers to the letter of the Exchange to the Company dated 22
October 2003. As requested, the information sought by Kuala
Lumpur Stock Exchange (KLSE) are given below:

1. Re: Query 1

The R&M has been appointed pursuant to an application by a
minority shareholder namely Low Kah Khuen who has filed a
derivative action for the benefit of the Company against all the
directors of the Company. The basis of the action is that those
in control of the Company have committed a fraud on the
minority.

2. Re: Query 2

The Receiver as R&M for the Company is taking no position in
respect of any steps taken or proposed to be taken by the
Company in relation to the appointment of the R&M.

3. Re: Query 3

The powers of the R&M are as follows:

(a) the power to collect the debts of the Company and other
monies of the Company;

(b) the power to deal with any court actions filed by or against
the Company including but not limited to entering into any
compromise or settlement with relation thereto;

(c) the power to bring or defend any action or other legal
proceeding in the name and on behalf of the Company;

(d) the power to deal with the assets of the Company;

(e) the power to appoint himself as the Company's nominee on the
board of directors of subsidiary or related companies;

(f) the power to appoint himself as corporate representative of
the Company to attend all meetings of companies whose shares are
held by the Company;

(g) the power to inspect all books, accounts, registers,
documents and papers of the Company wherever they may be kept
and whoever they may be kept by;

(h) the power to inspect the audit files of the auditors of the
Company;

(i) the power to investigate the affairs of the Company and to
issue a report or reports arising thereon to the Court;

(j) the power to dispose of the assets of the Company considered
superfluous to the current operations of the Company if such
disposal is considered necessary in order to raise funds to meet
the expenses of the Company;

(k) the power to sell immovable and movable property and things
in action of the Company by public auction, public tender or
private contract with power to transfer the whole thereof to any
person or Company or to sell the same in parcels;

(l) to do all acts and execute in the name and on behalf of the
Company all deeds, receipts and other documents and for that
purpose use when necessary the Company's seal;

(m) the power to appoint counsel and other professionals if
necessary for the discharge of the duties of the R&M;

(n) the power to do all that is necessary to run the operations
and business of the Company;

(o) the power to do all that is necessary to preserve the assets
of the Company; and

(p) the power to seek the directions of the Court, and where
necessary to seek an extension of powers from the Court.

Query Letter content:

We refer to your announcement dated 20 October 2003 in respect
of the aforesaid matter.

In this connection, kindly furnish the Exchange immediately with
the following additional information for public release:-

1. The details of the events leading to the appointment of the
R&M.

2. The steps taken or proposed steps to be taken by KSU in
respect of the appointment of R&M.

3. The powers of the R&M.

Yours faithfully
INDERJIT SINGH
Sector Head
Issues & Listing
IS/WSW/NMA


LONG HUAT: Extends Restraining Order to January 31
--------------------------------------------------
Long Huat Group Berhad (LHuat)'s Board of Directors of comprises
one (1) Independent Non-Executive director and two (2) Non-
Independent Non-Executive directors.

As such, LHuat does not comply with Paragraphs 15.02,
15.10(1)(a)&(b) and 15.19 of the LR. The non-compliance was due
to the difficulty faced by LHuat in finding a suitable candidate
to act as Independent Director as currently, the Company is in
the restructuring process and currently under Practice Note 4 of
the LR, and also facing the risks of being delisted from the
Exchange.

Following to LHuat's application on 30 September 2003 for
further extension of time of four (4) months to comply with the
abovementioned requirements, the Exchange has on 29 October 2003
granted an extension of time of four (4) months with effect from
1 October 2003 until 31 January 2004.


SENG HUP: Extends Investigative Audit to November 24
----------------------------------------------------
This announcement is made for Seng Hup Corporation Berhad (SHCB)
in relation to the Company's announcement via Salcon Berhad
dated 3 October 2003. For information, SHCB has been de-listed
from the Official List of the Second Board of the Kuala Lumpur
Stock Exchange.

The Company refers to the announcement made on 3 October 2003 by
AmMerchant Bank Berhad (AmMerchant Bank), on behalf of SHCB,
with regards to the Securities Commission's (SC) approval for an
extension of time to 25 October 2003 to complete the
investigative audit of SHCB.

AmMerchant Bank, on behalf of SHCB, announced that an
application has been made to the SC for a further extension of
time to 24 November 2003 to complete the investigative audit of
SHCB.



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


MANILA ELECTRIC: Revises 2003 Sales Growth Target to 4.3%
---------------------------------------------------------
Manila Electric Co. (Meralco) revised its sales growth target
for 2003 to 4.3 percent from 3.2 percent, BPI Securities
reports. Sales volume in the first nine months increased 5.1
percent to 17.744 million kilowatt hours. For the third quarter,
sales volume rose 3.8 percent.

However, the Company is maintaining its full year income target
of 1 billion pesos despite the revised sales growth target.
Meralco may book provisions in the fourth quarter, as well as
disallowances that may be imposed by its auditors in its full
year financial report. Meralco plans to ask two foreign
financial groups to partially refinance its 11 billion in
maturing obligations next year.


MANILA ELECTRIC: Offers Rediscounted Debt Papers
------------------------------------------------
Manila Electric Co. (Meralco) is planning to offer its big users
rediscounted debt papers, which in turn, could be sold by the
customers to financial institutions, the Manila Times reports,
citing Meralco Vice President and Treasurer Rafael Andrada.

Meralco is currently in talks with government regulators and the
private sector including the Securities and Exchange Commission
(SEC), Bangko Sentral ng Pilipinas, Philippine Stock Exchange
(PSE), the Energy Regulatory Commission (ERC), and the
Investment Houses Association of the Philippines (IHAP) to
discuss the viability of the plan.

Meanwhile, Meralco is still optimistic it could end the year
with a net profit of P1 billion, a reversal from last year's
loss of P2 billion. It has also revised its sales growth target
for the year from 3.2 percent to 4.3 percent as a result of the
improving trend.


NATIONAL BANK: Taps JP Morgan as Arranger of Notes Issue
--------------------------------------------------------
Philippine National Bank (PNB) has appointed JP Morgan
Securities Ltd. as sole arranger for its planned issue of up to
US$140.00 million worth of unsecured subordinated notes to raise
Tier 2 capital, according to AFX News. In a disclosure to the
stock exchange, the bank said it intends to launch the issue in
November, and added the notes will be listed on Singapore's
stock exchange.

PNB said the notes will carry an indicative yield of 9.000-9.500
pct and will mature on 2014. The issue is callable after five
years. The move will allow the bank to meet the minimum capital
adequacy ratio required by monetary regulators.

JP Morgan's underwriting fee is set at 1.00 pct of the total
issue, with fixed expenses payable to the underwriter capped at
US$420,000.


NATIONAL BANK: S&P Assigns Notes Issue Ratings
----------------------------------------------
Standard & Poor's Ratings Services is reviewing information on
the upcoming U.S.-dollar unsecured subordinated notes due 2014,
callable in 2008, to be issued by Philippine National Bank
(CCCpi), the fifth-largest bank in the Philippines. On
completion of the review, Standard & Poor's will assign an issue
rating to the notes. The notes are likely to be listed on the
Singapore Exchange; the pricing and issue size have not been
determined.
      

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


ASIA PULP: Signs Debt Restructuring Deal
----------------------------------------
Asia Pulp and Paper plans to sign a debt restructuring agreement
with creditors on October 30, 2003, although not every creditor
is ready to sign, according to DebtTraders. Some secured
bondholders have earlier won a court case against Asia Pulp and
Paper for approximately US$319 million. The signing was delayed
once on October 24. Separately, APP China will also vote on its
debt-to-equity swap plan on the same date in Bermuda.


CSC HOLDINGS: Post Changes in Shareholder's Interest
----------------------------------------------------
CSC Holdings Limited issued a notice of changes in substantial
shareholder Tat Hong Holdings Ltd.'s interests:

Date of notice to Company: 29 Oct 2003
Date of change of interest: 17 Oct 2003
Name of registered holder: Please see table below
Circumstance(s) giving rise to the interest: Others
Please specify details: Subscription of Rights Shares pursuant
to their undertaking

Information relating to shares held in the name of the
registered holder: -
No. of shares which are the subject of the transaction:
103,667,000
% of issued share capital: 11.65
Amount of consideration (excluding brokerage and stamp duties)
per share paid or received: S$0.02
No. of shares held before the transaction: 103,667,000
% of issued share capital: 23.3
No. of shares held after the transaction: 207,334,000
% of issued share capital: 23.3

Holdings of Substantial Shareholder including direct and deemed
interest
                                           Deemed      Direct
No. of shares held before the transaction: 35,000,000 68,667,000
% of issued share capital:                 7.87 15.43 -   
No. of shares held after the transaction:  70,000,000
137,334,000
% of issued share capital:                 7.87       15.43
Total shares:                              70,000,000
137,334,000

Notes:

1 The percentage of issued share capital before the transaction
is based on 444,956,780 shares as at 18 September 2003.

2 The percentage of issued share capital after the transaction
is based on 889,913,560 shares as at 15 October 2003.


FLEXTECH HOLDINGS: Dissolves Korean Unit
----------------------------------------
The Board of Directors of Flextech Holdings Limited announced
that FE Korea Co., Ltd. (FEK), a dormant subsidiary incorporated
in the Republic of Korea in which FE Global Electronics Pte Ltd
(FEG) owns 75 percent, has been recently wound up and dissolved.

FEG is a wholly owned subsidiary of the Company, incorporated in
Singapore.

The dissolution of FEK is not expected to have a material effect
on the earnings and net tangible asset per share of the Flextech
group of companies for the financial year ended 31 December
2003.


FREIGHT LINKS: Completes Debt Restructuring Scheme
--------------------------------------------------
The Board of Directors of Freight Links Express Holdings Limited
announced that further to the Company's announcements in respect
of (i) the passing of the resolutions at the Extraordinary
General Meeting of the Company on 20 October 2003; and (ii) the
completion of the proposed Placement on 23 October 2003, the
Company has completed the Debt Restructuring in connection with
the debt restructuring agreements signed with United Overseas
Bank Limited and Oversea-Chinese Banking Corporation Limited on
25 July 2003 and 13 August 2003 respectively.


ST ASSEMBLY: Offers US$115M Convertible Notes Due 2008
------------------------------------------------------
ST Assembly Test Services Ltd., a leading independent
semiconductor test and advanced packaging service provider
announced Wednesday that it has completed an offering of US$115
million principal amount of Convertible Notes due 2008 and a
concurrent offering of 83,389,375 ordinary shares.

In a recently filing to the Securities and Exchange Commission,
the convertible notes have a yield to maturity of 4.25 percent.
The notes will be convertible into STATS' ordinary shares or,
subject to certain limitations, American Depositary Shares
(ADSs) (each of which represents ten ordinary shares) at a
conversion price of S$3.05 per ordinary share (at a fixed
exchange rate on conversion of S$1.7403 = US$1.00). STATS may
also elect to satisfy its obligations to deliver ordinary shares
or ADSs through delivery of cash in accordance with the terms of
the notes. Application has been made to the Singapore Exchange
for the listing of the notes and the ordinary shares to be
issued upon conversion of the notes. Settlement is expected to
be on November 7, 2003 in Singapore.

All or a portion of the notes may be redeemed by STATS at any
time on or after November 7, 2006 at a price to yield 4.25
percent per year to the redemption date if the closing price of
STATS' ordinary shares or ADSs is at least 130 percent of the
conversion price. Convertible note-holders may require STATS to
repurchase all or a portion of their convertible notes on
November 7, 2007 at a price equal to 118.32 percent of the
principal amount of the convertible notes being redeemed (which
would include redemption interest). The notes were placed to
institutional and sophisticated investors outside the United
States.

The ordinary shares were priced at S$2.40. The ordinary shares
were placed to institutional and other sophisticated investors
outside the United States. Application has been made to the
Singapore Exchange for the listing of the 83,389,375 ordinary
shares. Settlement for the ordinary shares is expected to be on
November 5, 2003.

The net proceeds from the offerings will be used for general
corporate purposes, including funding of capital expenditures,
which may include the purchase of test and assembly equipment,
and acquisitions and investments.

This press release is not an offer of securities for sale in the
United States, Singapore or elsewhere. Securities may not be
sold in the United States unless they are registered or are
exempt from registration. The information in this press release
does not constitute an offer of securities for sale in Canada,
Japan or Australia.

ABOUT ST ASSEMBLY TEST SERVICES LTD. (STATS)

ST Assembly Test Services Ltd., is a leading semiconductor test
and assembly service provider to fabless companies, integrated
device manufacturers and wafer foundries. With its principal
operations in Singapore and global operations in the United
States, United Kingdom, Japan, China and Taiwan, STATS offers
full back-end turnkey solutions to customers worldwide. STATS'
expertise is in testing mixed-signal semiconductors, which are
extensively used in fast growing communications applications
such as data networking, broadband and mobile communications.
STATS also offers advanced assembly services and has developed a
wide array of traditional and advanced leadframe and laminate
based products, including various ball grid array packages to
serve some of the world's technological leaders. STATS was
listed on the Nasdaq National Market and The Singapore Exchange
in January 2000 and is in the Morgan Stanley Capital
International (MSCI) Index and the Straits Times Industrial
Index. Further information is available at www.stts.com

SINGAPORE CONTACTS:

Elaine Ang                        Khor Hwee Eng
Manager, Investor Relations       Senior Communications
Executive/Corporate Communications        
Tel:(65) 6824 1738                Tel: (65)6824 1291,
Fax:(65) 67207828                 Fax:(65) 67207828
email:angelaine@stats.st.com.sg   email:
                                  khorhweeeng@stats.st.com.sg

US CONTACTS :

Drew Davies                       Lisa  Lavin
Director, Investor Relations      Marcom Manager
Tel: (408) 586 0608,              Tel: (208) 939 3104
Fax: (408) 586 0652               Fax: (208) 939 4817
email: daviesd@statsus.com        email: lavinl@statsus.com


WEE POH: Appoints Tony Phua as Alternate Director
-------------------------------------------------
The Board of Directors of Wee Poh Holdings Limited announced the
appointment of Mr Tony Phua as the Alternate Director to Mr Chan
Wang Kin with effect from 28 October 2003. Mr Tony Phua's
particulars had been announced separately on 19 September 2003
on his appointment as the General Manager of the Company.

Wee Poh Holdings Limited has recorded a turnover of S$53.87
million for the full year ended 30 June 2003, a decrease of
S$7.47 million or 12.2 percent over the corresponding period.

The decrease in turnover was due mainly to two of the Group's
previously core subsidiaries, W&P Piling Pte Ltd (WPP) and WP
Conc-Pact Pte Ltd (WPCP) being placed in liquidation by
creditors. As such, the results of these two subsidiaries were
only taken into account up-till the point of liquidation and
deconsolidated from the Group as at 30 June 2003.


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


KRUNG THAI: Transfers Substandard Assets to TAMC   
------------------------------------------------
To:  The President, Stock Exchange of Thailand

Re:  Transfer of Krung Thai Bank's substandard assets to TAMC

Dear Sir,
        
It is stipulated in the Thai Asset Management Corporation Royal
Ordinance B.E. 2544 (2001), Section 30 that a financial
institution or assets management company with the Financial
Institutions Development Fund or any combined government
agencies or state enterprises as its shareholders holding more
than fifty percent of paid up registered capital shall transfer
all its substandard assets as at 31 December 2000 to the Thai
Asset Management Corporation (TAMC) within the period of time
specified by the TAMC.

In this regard, the Board of Directors of Krung Thai Bank Public
Co., Ltd., at its meeting No. 15/2544 (576) on 17 October 2001,
passed its resolution to ratify the approval of the transfer of
all substandard debtors to TAMC as mentioned above. Initially
there will be about 60,000 cases/debtors and THB80,000 million
of outstanding debts in total.  Of these figures, the
Bank already transferred them 17 times. As for the 18th transfer
scheduled for 31 October 2003, the details may be viewed through
this link: http://bankrupt.com/misc/krung_thai.htm
  
Note:  Information on transfer as at 31 October 2003 is
estimated figures since it is still in the transfer process and
for the following transfer exact date and amount have not been
fixed as yet.

Upon the Bank's transfer of substandard debtors to TAMC, it has
to complete verifying the asset prices to be initially repaid
within 180 days. If TAMC sees that such prices are correct, it
will issue a letter confirming the asset prices to be primarily
paid to the Bank within 7 days.

Concerning method of payment, TAMC will issue a nontransferable
promissory note on which the following details will be
specified:

     (i) Amount of money according to the price of asset
         transferred to TAMC
        
    (ii) Promissory note (P/N) issuing date according to the
         date of asset transfer and due date of repayment upon
         the expiration of 10 years from the P/N issuing date.
         However, TAMC may exercise its right to redeem the P/N
         before its maturity.
        
         As for interest payment, TAMC will pay the interest on
         P/N to the Bank according to the average interest on
         deposit by calculating the interest as at the last
         working day of the year.

In addition, the above transactions are categorized as related
party transactions but they are exempted according to Clause 8
(1) of the announcement of the Stock Exchange of Thailand (SET)
governing disclosure of related - party transactions, and the
size of the transaction when being fully transferred according
to the estimate will account for the rate of approximately
8.22 % of the Bank's total assets whereby the Bank does not have
to comply with the SET's announcement governing the acquisition
or disposal of assets of a registered company.

Please be informed accordingly.

Yours sincerely,

Mr. Somanat Chutima      
Senior Executive Vice President


MODERN HOME: Posts Additional Information on Capital Increase   
-------------------------------------------------------------
To:  President, The Stock Exchange of Thailand  
        
Re:  Additional information of the capital increase

We, as the plan administrator of Modern Home Planner Company
Limited, would like to report the additional information of the
capital increase, which has been reported to you earlier.  

(1) Name of the new investors    

Group of the new investors of the Company comprised of the
followings:

     (a) Ngamachariyakul Family: number of acquired shares =
         18,053,053 shares, equivalent to 53.14% of the total
         issued shares       
        
     (b) Dejvorapat Family: number of the acquired shares =
         2,625,006 shares, equivalent to 7.73% of the total
         issued shares
        
     (c) Others: number of the acquired shares = 4,795,013
         shares, equivalent to 14.13% of the total issued shares

Total number of shares sold:  25,473,072 shares, equivalent to
74.99% of the total issued shares  

(2) Details of the appraisal value of the assets, which have
been transferred to M-Home.

As presented in the previous report, the transfer value of the
assets, which have been transferred to M-Home, are based on the
appraisal value of two appraisers namely Simon Lim and Partners
and BCA Appraiser. Details of the appraisals are presented
below:
       
     (a) Simon Lim and Partners: Appraisal date: August 13,
         2003, the appraisal vale was based on the value of the
         existing assets equivalent to Baht 335.26 million

     (b) BCA Appraisal: Appraisal date: July 11, 2003, the
         appraisal value was based on the market price of the
         existing assets equivalent to Baht 339.219 million

Nonetheless, some of appraised assets have been sold during the
period of after the appraisal date and prior to the assets
transfer date to M-Home. Thus, value of the transferred assets
to M-Home is slightly lower than the average price of the
appraisal value of the two appraisers.

Sincerely Yours,

Mr. Damrong Ratanasaengsakulthai        
Mr. Phillip Alexander
Authorized Directors


* Large Companies with Insolvent Balance Sheets
-----------------------------------------------
                                        Total          
                                        Shareholders   Total  
                                        Equity         Assets    
Company                       Ticker    ($MM)          ($MM)    
-------                       ------    ------------   -------  

CHINA & HONG KONG
-----------------

Guangdong Sunrise Holdings
Co., Ltd.                      000030     (184.24)     23.04
Jinan Qingi Motorcyle
Co., Ltd.                      600698     (193.08)    113.96
Shenzhen China Bicycles
Co., Ltd.                      000017     (239.91)     60.39
Shenzhen Great Ocean
Shipping Co., Ltd.               200057      (10.87)     11.27
Shenzhen Petrochemical
Industry Group Co., Ltd.       000013     (243.36)     89.48


INDONESIA
---------

PT Lippo Securities  Tbk        LPPS       (3.62)       14.26
Smart Tbk                       SMAR      (37.38)      398.89


MALAYSIA
--------

CSM Corporation Bhd             CSMB        (8.40)      41.55
Equine Capital Bhd              EQC       (107.69)     166.92
Faber Group Bhd                 FBMS        (7.16)     504.98
Hotline Furniture Bhd           HOTF       (19.68)      11.80
MBf Corp Bhd                    MBFS      (516.81)     189.99
Panglobal Bhd                   PGL0       (41.07)     187.79
Promet Bhd                      PMPT      (148.71)      65.25
Saship Holdings                 SASH      (168.68)     136.30
Sri Hartamas Bhd                SRIH      (118.91)      99.76
Uniphoenix Corporation Bhd      UNI       (145.25)      33.34


PHILIPPINES
-----------

Pilipino Telephone Co          PNOTF     (356.17)      122.97


SINGAPORE
---------

Pacific Century Regional
Developments Ltd                PCEN      (931.65)     7369.85


THAILAND
--------

Datamat PCL                     DTM         (9.53)       13.66      
National Fertilizer PCL         NFC        (30.82)      297.40
Siam Agro-Industry Pineapple
And Others PCL                  SAIC       (13.88)       14.02
Thai Nam Plastic PCL            TNPC        (2.00)       24.33
Tuntex (Thailand) PCL           TUN        (26.82)      381.43


Each Friday edition of the Troubled Company Reporter - Asia
Pacific contains a list of companies with insolvent balance
sheets based on the latest publicly available balance sheet
available to our editors at the time of publication.  At first
glance, this list may look like the definitive compilation of
stocks that are ideal to sell short.  Don't be fooled.  Assets,
for example, reported at historical cost net of depreciation may
understate the true value of a firm's assets.  A company may
establish reserves on its balance sheet for liabilities that may
never materialize.  The prices at which equity securities trade
in public market are determined by more than a balance sheet
solvency test.





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
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Maryland USA. Lyndsey Resnick, Mavy Nineza-Merlin, Ma. Cristina
Pernites-Lao, Editors.

Copyright 2003.  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
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