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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      

      Monday, March 9, 1998, Vol. 1, No. 14

                    Headlines

C H I N A

H O N G   K O N G  

PEREGRINE: Hong Kong Judge Attacks Handling of BNP Deal

I N D O N E S I A

PT SEMEN GRESIK: Monetary Crisis Affects Performance

J A P A N  

ALL NIPPON AIRWAYS: To Halt Dividend Payments
ASAHI GLASS: To Suspend Production at Float-Glass Furnace
SSANGYONG INVESTMENTS: Yet Another Stock Swindle
SHISEIDO CO: Group Net Profit Down 11 Percent
YAMAICHI SECURITIES: 3 ex-Yamaichi Execs Arrested
YAMAICHI SECURITIES: Scandal Raises Questions

K O R E A

DASOM: Education Cable Channel Gone Bankrupt
KOLON GROUP: Sells Stake in Kolon-Met to American Partner
KOREA FIRST BANK: To Close Down Outlets with Deficits
SEOUL BANK: To Close Down Outlets with Deficits
SHINWON JMC: Sells 34% Stake in Pfizer Korea to US partner

M A L A Y S I A

BANK BUMIPUTRA: Needs New Capital Infusion
NYLEX: Posts 14.9 % Lower Earnings
SIME BANK: First Half Loss of $436 Million
SIME BANK: Reports Group Pre-Tax Loss of RM1.81 Billion             

P H I L I P P I N E S

MANUFACTURER ASSOCIATES: Asks SEC For Relief

S I N G A P O R E

DEVELOPMENT BANK: Moody's Ratings Lowered to Negative
INTEGRAL PERIPHERALS: Disk Drive Maker In Liquidation
KEPPEL BANK: Moody's Ratings Lowered to Negative
OVERSEA-CHINESE: Moody's Ratings Lowered to Negative
OVERSEAS UNION: Moody's Ratings Lowered to Negative
TAT LEE BANK: Moody's Ratings Lowered to Negative
UNITED OVERSEAS: Moody's Ratings Lowered to Negative

T H A I L A N D

THAI-ASAHI GLASS: To Stop Production at Float-Glass Furnace


=========
C H I N A
=========



=================
H O N G   K O N G  
=================

PEREGRINE: Hong Kong Judge Attacks Handling of BNP Deal
-------------------------------------------------------
A Hong Kong court approved the sale of Peregrine's greater
China equity business to Banque Nationale de Paris, but
criticised the provisional liquidators' handling of the
deal.

The Judge said that Price Waterhouse, the liquidators,
presented the court with a deal that "would have been
difficult to unravel" and was possibly not the best that
creditors could have obtained.

There were accusations of conflict of interest since Price
Waterhouse failed to disclose that it acted as auditors for
BNP, and there has been a great deal of attention paid to
the massive bonus payments both to directors of Peregrine's
UK arm and in the newly created BNP Prime Peregrine.
(Financial Times 06-Mar-1998)



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

PT SEMEN GRESIK: Monetary Crisis Affects Performance
----------------------------------------------------
The ongoing monetary crisis has affected the performance of
PT Semen Gresik, marked by a January 1998 cement sales drop
of between 5-10 per cent.  "I admit there is a drop in
quantity demand for cement from contractors. Their projects
are dependent on bank credits, and as credits are hard to
get, several of their projects are postponed", said the
Director of PT Semen Gresik, Urip Timuryono, here
yesterday.
     
Urip pointed out that long-term credit in US dollars of PT
Semen Gresik now totals $US250 million, $US100 million of
which has been hedged. The credit is entirely used to build
new plants. At present the company's cement production,
combined with that of Semen Tonasa and Semen Padang totals
12 million tonnes per year.  (ANTARA) (Asia Pulse 06-Mar-
1998)



=========
J A P A N  
=========

ALL NIPPON AIRWAYS: To Halt Dividend Payments
---------------------------------------------
Shares in All Nippon Airways moved today on Japanese
exchanges. All Nippon Airways Co. (9202 JP ) fell 29 yen to
694. Japan's second-largest airline yesterday said it will
halt dividend payments and revise its earnings for the year
ending March 31 amid increasing competition and decreasing
demand. (Bloomberg News 6-Mar-1998).


ASAHI GLASS: To Suspend Production at Float-Glass Furnace
---------------------------------------------------------
Asahi Glass Co. will suspend production at a float-glass
furnace operated by joint venture the Thai-Asahi Glass
Public Co. as a result of sluggish demand in Southeast
Asian markets.

The temporary closure will reduce the Japanese company's
daily output capacity of sheet glass in Thailand by one-
third to 1,000 tons. The Tokyo glassmaker operates three
local float-glass furnaces in Thailand, each with a daily
output capacity of 500 tons - two run by Thai-Asahi and one
by another joint venture, Bangkok Float Glass Co.
    
The company is discontinuing operations at one furnace to
raise the capacity utilisation rate of the remaining two.
The length of the shutdown has yet to be determined.
     (Nikkei) (Asia Pulse 06-Mar-1998)


SSANGYONG INVESTMENTS: Yet Another Stock Swindle
------------------------------------------------
Speculator Hiroyuki Utsugi has emerged as the suspect of
yet another stock swindle, this time targeting the Tokyo
branch of brokerage SSangyong Investments and Securities
Co. The brokerage allegedly lost 3.7 billion yen in the
swindle, authorities said.

In a scam similar to one he is alleged to have used on
Nomura Securities, Utsugi, 33, allegedly ordered South
Korea-based SSangyong to buy shares of a company under a
false name, at the same time he was selling shares of the
same company under his own name.

In the SSangyong case, Utsugi allegedly unloaded 2.5
million shares of a steel maker, Toho Kinzoku Co.
The idea was to keep the steel maker's stock prices as high
as possible by filing buy orders, and then to gain profits
by selling off the same company's shares.

Utsugi used the name of the president of a resin wholesaler
in making buy orders. The buy orders were made on Jan. 14,
1997 and Utsugi sold off 2.5 million Toho Kinzoku shares
on the same day. The deal allegedly netted the speculator
3.7 billion yen, police said.

The scam came to light when SSangyong asked the president
of the resin wholesaler to pay for the shares it purchased
for him, but he refused to pay, saying that he made no such
buy orders, police said. Police suspect that Utsugi used
the president's name without knowledge or permission.
Utsugi was arrested Wednesday on suspicion of dirty dealing
in shares of an auto parts maker called TDF, with Nomura
Securities as the victim.

Utsugi filed fictitious buy orders with Nomura to keep
stock prices of TDF as high as possible,
while unloading 1.3 million TDF shares. The deal allegedly
earned him 5.5 billion yen. He also allegedly scammed the
president of a frozen foods company, also using TDF shares


SHISHEIDO CO: Group Net Profit Down 11 Percent
---------------------------------------------
Shares in Shisheido Co. moved today on Japanese exchanges.
Shiseido Co. (4911 JP) fell 30 yen to 1,530.  Japan's
largest cosmetics maker is likely to report group net
profit of 17 billion yen for the year ending March 31, down
11 percent on the year, the Nihon Keizai newspaper said,
without citing sources. That's because of weak domestic
sales and depreciation costs from the recent acquisition of
U.S. beauty salon businesses, the paper said. (Bloomberg
News 6-Mar-1998).


YAMAICHI SECURITIES: 3 ex-Yamaichi Execs Arrested
-------------------------------------------------
Three former top executives of collapsed brokerage Yamaichi
Securities Co., including the firm's ex-chairman and
president, were arrested in Tokyo today on suspicion they
helped cover up $2 billion in corporate losses.  Atsuo
Miki, 62; former chairman Tsugio Yukihira, 66; and Ryuji
Shirai, a former vice president, were detained on the order
of Tokyo prosecutors.  The men are suspected of hiding the
losses, starting in the early 1990s, through an illegal
practice known as "tobashi," in which accounts that show
losses are transferred from one client to another to keep
them from showing up on financial statements, prosecutors
said.  

In Japan's biggest business failure ever, Yamaichi
collapsed last November under the weight of the losses.
Yamaichi Finance Co., an affiliate, filed for bankruptcy
Monday.  The three were among six Yamaichi officials
arrested last year in a separate payoff scandal.
(Chicago Sun Times - 03/04/98)


YAMAICHI SECURITIES: Scandal Raises Questions
---------------------------------------------
The Yamaichi Securities Co. scandal has raised questions
about when the Finance Ministry learned of the problem and
why it failed to stop the practice.

Three former Yamaichi officials were arrested Wednesday for
their alleged roles in the window-dressing scandal, in
which the firm failed to report 264.8 billion yen in off-
the-books losses. Huge debts led to the brokerage's
collapse last November.

Yamaichi executives allegedly conspired to hide the losses
and present the ministry with false reports. But the
relationship between the securities house and the ministry
was opaque. Public distrust of the government's supervision
of the financial sector has only deepened with the latest
scandal. It is not inconceivable that law enforcement
authorities probing the Yamaichi case may uncover even more
deep-rooted corruption between the securities
companies and their overseers.

Those responsible for government supervision of the
industry appear to have believed in closed-door problem-
solving. No muss, no fuss--but no transparency either.
At issue is the practice of so-called tobashi transfers, in
which a brokerage illegally transfers badly performing
shares from a first client to another to keep the losses
from appearing on the main client's financial statement.

Sources have said Yamaichi executives instructed their
employees have five dummy corporations take over loss-
making portfolios in 1991 and 1992 and dispose of them as
off-the-books losses.

This raises two questions:

* Did the ministry suggest or instruct Yamaichi to dispose
of the debts as off-the-books losses?

* If not, then when did the ministry became aware of
Yamaichi's off-the-books debts?

Securities companies that use tobashi transactions usually
promise the second firm that they will later buy the
securities back at a higher price before that company
incurs any losses.

What this latest case also illustrates is that the
ministry's cozy relationship with the securities industry
was not good news for individual investors.

The worst case scenario is that the ministry prompted
Yamaichi to resort to hiding off-the-book losses from its
tobashi transactions and window-dress its account
settlements.

At the very least, the ministry bears a heavy
responsibility for its inability to stop Yamaichi's alleged
wrongdoing, especially if it proves true that the
brokerage's collapse was triggered by its billions in off-
the-books debts. Adding to the suspicions is the fact that
the ministry has yet to say when it first learned of the
company's huge debts.

Securities industry sources said the ministry might have
known about Yamaichi's off-the-books debts and window-
dressing account settlements as early as 1991, when the
company first started to use tobashi transactions.
(The Daily Yomiuri Online - 06-Mar-1998)


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

DASOM: Education Cable Channel Gone Bankrupt
--------------------------------------------
Dasom, an education cable channel, has gone bankrupt,
becoming the first failed cable TV station since cable
service began in the country three years ago.

Dasom dishonored trade bills worth 125 million won
($78,000), which came due Thursday. A company official said
the cable station will take all possible steps to revive
the firm, adding that it will continue airing programs in
spite of its insolvency.

Faced with a cash shortage, management had tried to sell
the cable company but no prospective buyers were found, he
said. With a paid-in capital of 6 billion won ($3.75
million), Dasom airs educational programs, 19 hours a day,
for middle and high school students.

Rep. Suh Han-saem of the Grand National Party is the
largest shareholder of the cable channel. Last month, the
lawmaker offered to use his own money to help the
struggling cable firm. The cable channel has been in a
financial fix because of low advertizing revenues and
increasing losses.

Since the launch of cable service in March 1995, the local
cable industry has suffered from severe financial
difficulties due to dwindling advertizing revenue.
Industry sources predict that seven to eight more cable
channels may collapse this year unless the nation's
economic situation considerably improves.

As of the end of last year, the industry's cumulative loss
amounted to 804.9 billion won. Currently, 26 program
providers are in business here, operating 29 cable
channels. (KYS) (Korea Herald 07-Mar-1998)


KOLON GROUP: Sells Stake in Kolon-Met to American Partner
---------------------------------------------------------
South Korea's Kolon Group announced that it sold its full
stake in its joint-venture life insurance company Kolon-Met
to its American partner at 23 billion won (US$14.5
million).
     
Kolon said it signed a contract with New York-based      
Metropolitan Life Insurance Company (MetLife) to sell its
full stake of 49 percent in Kolon-Met. By selling its 1.56
million shares with stock par value of 10,000 won for
14,700 won per share, Kolon managed to pocket a      
premium of around 47 percent from the handover, a group
spokesman said.
     
MetLife intends to increase capital by more than 22 billion
won this month to put the financial state of its Korean
affiliate on solid footing.  Kolon-Met, set up in 1989 with
capital of 31.8 billion won, has assets of 510 billion won
as of last December, 656 employees, and 158 outlets.
(Yonhap) (Asia Pulse 06-Mar-1998)


KOREA FIRST BANK: To Close Down Outlets with Deficits
-----------------------------------------------------
Seoul Bank and Korea First Bank (KFB) plan to close down
outlets with deficits or poor performance at home and
abroad as well as sell as many of their local affiliates as
possible within the year to save themselves.  The two banks
will cut staff and reduce organization at their
headquarters and sell non-performing debts to Korea
Asset Management Corp. to lower the ratio to half of the
current level, according to their restructuring plans
submitted to the Office of Bank Supervision (OBS).
The OBS approved the programs submitted by Seoul Bank and
KFB last month, the country's weakest banks ordered to
reinforce management in December.
     
KFB and Seoul Bank pledge to raise their capital adequacy
ratio to 8.32 percent and 8.09 percent, respectively, via
government investment and asset reassement, by June.
Korea's weak banks have to meet the 8-percent capital
adequacy ratio set by the Bank for International
Settlements (BIS) by June or else face shutdown according
to a bailout agreement between Seoul and the International
Monetary Fund.
     
Seoul Bank plans to shut 47 and KFB 60 deficit-plagued
outlets within the year and retain a minimum number of
outlets abroad neccessary for foreign affairs. Seoul Bank
and KFB said they hoped to dispose of three and four
affiliates, respectively.

KFB plans to cut 1,869 staff, or 23.5 percent, from its
payroll while Seoul Bank is considering ousting 1,491
employees, or 19.9 percent. In another move, KFB will
reduce headquarter divisions to 26 from the current 48
while Seoul Bank will narrow them to 26 from 43.
KFB intends to sell 2,861.1 billion won (US$1.8 billion)
worth of non-performing debts to Korea Asset Management
Corp. to lower the ratio to 4.6 percent from the current
11.4 percent. Seoul Bank will sell 1,948 billion won worth
to lower non-performing debt ratio 4.5 percent from 10.4
percent. OBS, which attained a signed pledge by the two
bank executives to faithfully abide by their restructuring
plans, will continue to closely monitor them.
     (Yonhap) (Asia Pulse 06-Mar-1998)


SEOUL BANK: To Close Down Outlets with Deficits
-----------------------------------------------
Seoul Bank and Korea First Bank (KFB) plan to close down
outlets with deficits or poor performance at home and
abroad as well as sell as many of their local affiliates as
possible within the year to save themselves.  The two banks
will cut staff and reduce organization at their
headquarters and sell non-performing debts to Korea
Asset Management Corp. to lower the ratio to half of the
current level, according to their restructuring plans
submitted to the Office of Bank Supervision (OBS).
The OBS approved the programs submitted by Seoul Bank and
KFB last month, the country's weakest banks ordered to
reinforce management in December.
     
KFB and Seoul Bank pledge to raise their capital adequacy
ratio to 8.32 percent and 8.09 percent, respectively, via
government investment and asset reassement, by June.
Korea's weak banks have to meet the 8-percent capital
adequacy ratio set by the Bank for International
Settlements (BIS) by June or else face shutdown according
to a bailout agreement between Seoul and the International
Monetary Fund.
     
Seoul Bank plans to shut 47 and KFB 60 deficit-plagued
outlets within the year and retain a minimum number of
outlets abroad neccessary for foreign affairs. Seoul Bank
and KFB said they hoped to dispose of three and four
affiliates, respectively.

KFB plans to cut 1,869 staff, or 23.5 percent, from its
payroll while Seoul Bank is considering ousting 1,491
employees, or 19.9 percent. In another move, KFB will
reduce headquarter divisions to 26 from the current 48
while Seoul Bank will narrow them to 26 from 43.
KFB intends to sell 2,861.1 billion won (US$1.8 billion)
worth of non-performing debts to Korea Asset Management
Corp. to lower the ratio to 4.6 percent from the current
11.4 percent. Seoul Bank will sell 1,948 billion won worth
to lower non-performing debt ratio 4.5 percent from 10.4
percent. OBS, which attained a signed pledge by the two
bank executives to faithfully abide by their restructuring
plans, will continue to closely monitor them.
     (Yonhap) (Asia Pulse 06-Mar-1998)


SHINWON JMC: Sells 34% Stake in Pfizer Korea to US partner
----------------------------------------------------------
South Korea's Shinwon Group said that its affiliated firm
Shinwon JMC sold off 425,488 shares, or a 34-percent stake,
in Pfizer Korea Co., to its joint venture partner Pfizer
Inc. of the United States.

The price of the takeover bid was 37.8 billion won
(US$23.84 million), with Shinwon offering 89,000 won per
share. Shiwon's move to transfer its equity interests in
the joint venture to the U.S. pharmaceutical giant was in
line with a restructuring plan it had put forward when it
raised a syndicated loan from its 10 creditor banks.
Pfizer agreed to take over the joint-venture pharmaceutical
firm, a move corresponding to its plan to run a solo
operation in the country. (Yonhap) (Asia Pulse 06-Mar-98)


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

BANK BUMIPUTRA: Needed New Capital Infusion
-------------------------------------------
Only four Malaysian financial institutions require fresh
capital to offset losses from bad loans, and the rest of
the sector is healthy, the deputy central bank governor
said in remarks published Friday.

The central Bank Negara Malaysia announced this week that
Malaysia's sixth-largest bank, Sime Bank Bhd., suffered a
first-half loss of 1.57 billion ringgit (436 million
dollars) and required at least 1.2 billion ringgit in
fresh capital.

The central bank also announced that Bank Bumiputra Bhd.,
the second-largest bank, needed about 750 million ringgit
in new capital while a couple of finance companies required
a combined 33 million ringgit.

While bad debts may result in other Malaysian banks
incurring losses, the newspaper said the tests showed that
their capital bases would not be eroded to the extent of
requiring fresh injections of shareholder funds.

"Losses are part and parcel of doing business," the deputy
governor said. "We have also heard rumours that a certain
Malaysian bank or a certain finance company is in trouble.
We put every financial (institution) through our most
stringent test and all except the four passed the test."

Fong reiterated that Sime Bank was not insolvent and that
the proposed capital injection was aimed at restoring its
capital adequacy ratio under guidelines imposed by the Bank
for International Settlements (BIS).

"Technically, it can still operate without any capital
injection. But because its risk-weighted capital adequacy
ratio has fallen to 2.9 percent, we want to restore it to
the 8.0 percent minimum level under the BIS standard. To
do that it would need to recapitalise to the tune of 1.2
billion ringgit."

Fong also reiterated that the central bank would continue
to guarantee deposits at any Malaysian financial
instititions including overseas, although it was not clear
if he was referring to subsidiaries as well as branches.
The newspaper also said that the bank's definition of the
"critical" level of non-performing loans was believed to be
more stringent than 20 percent.

While non-performing loans accounted for 6.5 percent of the
Malaysian banking sector's total loans at the end of
December, the newspaper said the ratio was expected to rise
rapidly to 15 percent and in some cases 20 percent by the
end of this year.

Following the central bank's announcement of new capital
requirements at the four institutions, Bank Bumiputra
announced Wednesday it was seeking a subordinated loan from
a government-backed provider of long-term funds.
Bank Bumiputra said it had made full provisions to cover
possible loan losses in compliance with generally accepted
banking standards.

"However, the bank was put through very stringent criteria
and stress-tested under extreme conditions by Bank Negara,"
it said. "The effect of these extreme conditions, should
they materialise, will be reflected in our financial
closing for the year ended March 31st."
(Agence France Presse - 03/06/98)


NYLEX: Posts 14.9 % Lower Earnings
----------------------------------
Nylex (M) Bhd has registered a 14.9% drop in
pre-tax earnings for its financial year to Dec 31, 1997
despite a better showing during the second half of the
year.

Its pre-tax profit fell to RM69.9mil from RM82.1mil
previously, while after-tax profit dropped by 14.4% to to
RM50.1mil from RM58.6mil. Turnover showed only a marginal
2.0% improvement from RM578.3mil to RM590.9mil.

Presenting the results to analysts in Kuala Lumpur
yesterday, Nylex group managing director Heah Kok Soon
lived up to his promise that the group's second half
financial results would be better than that of the first
six months.

"Despite a shrinkage in all our four core businesses, the
directors feel that a 6.5% drop in operating profit is
still reasonable given the economic circumstances," Heah
said.

According to Heah, the group has decided to invest RM50mil
this year to rebuild one furnace and repair one production
line in the division.

Its operations in the Philippines and Indonesia, meanwhile,
had contributed to the building products division's rebound
in the second half of last year.

Its China operations, Heah said, were expected to play a
bigger role in the group's performance this year.


SIME BANK: First Half Loss of $436 Million
------------------------------------------
Only four Malaysian financial institutions require fresh
capital to offset losses from bad loans, and the rest of
the sector is healthy, the deputy central bank governor
said in remarks published Friday.

The central Bank Negara Malaysia announced this week that
Malaysia's sixth-largest bank, Sime Bank Bhd., suffered a
first-half loss of 1.57 billion ringgit (436 million
dollars) and required at least 1.2 billion ringgit in
fresh capital.

The central bank also announced that Bank Bumiputra Bhd.,
the second-largest bank, needed about 750 million ringgit
in new capital while a couple of finance companies required
a combined 33 million ringgit.

While bad debts may result in other Malaysian banks
incurring losses, the newspaper said the tests showed that
their capital bases would not be eroded to the extent of
requiring fresh injections of shareholder funds.

"Losses are part and parcel of doing business," the deputy
governor said. "We have also heard rumours that a certain
Malaysian bank or a certain finance company is in trouble.
We put every financial (institution) through our most
stringent test and all except the four passed the test."

Fong reiterated that Sime Bank was not insolvent and that
the proposed capital injection was aimed at restoring its
capital adequacy ratio under guidelines imposed by the Bank
for International Settlements (BIS).

"Technically, it can still operate without any capital
injection. But because its risk-weighted capital adequacy
ratio has fallen to 2.9 percent, we want to restore it to
the 8.0 percent minimum level under the BIS standard. To
do that it would need to recapitalise to the tune of 1.2
billion ringgit."

"What we have disclosed is not the tip of the iceberg but
the iceberg itself," Fong Wen Phak Fong told The Star
newspaper.

Fong also reiterated that the central bank would continue
to guarantee deposits at any Malaysian financial
instititions including overseas, although it was not clear
if he was referring to subsidiaries as well as branches.
The newspaper also said that the bank's definition of the
"critical" level of non-performing loans was believed to be
more stringent than 20 percent.

While non-performing loans accounted for 6.5 percent of the
Malaysian banking sector's total loans at the end of
December, the newspaper said the ratio was expected to rise
rapidly to 15 percent and in some cases 20 percent by the
end of this year.

Following the central bank's announcement of new capital
requirements at the four institutions, Bank Bumiputra
announced Wednesday it was seeking a subordinated loan from
a government-backed provider of long-term funds.
Bank Bumiputra said it had made full provisions to cover
possible loan losses in compliance with generally accepted
banking standards.

"However, the bank was put through very stringent criteria
and stress-tested under extreme conditions by Bank Negara,"
it said. "The effect of these extreme conditions, should
they materialise, will be reflected in our financial
closing for the year ended March 31st."
(Agence France Presse - 03/06/98)


SIME BANK: Reports Group Pre-Tax Loss of RM1.81 Billion             
-------------------------------------------------------
SIME Bank Bhd reported a group pre-tax loss of RM1.81
billion for the half year ended Dec 31 1997, mainly as a
result of provisions for bad and doubtful debts at its
commercial bank and stockbroking level, as well as for the
diminution in value of its investments (RM516.3 million) of
the commercial bank and subsidiaries.

In a statement issued late yesterday together with the
group's half-yearly results, executive chairman and chief
executive officer Tunku Tan Sri Datuk Seri Ahmad Yahaya
said the high level of provision was due to unfavourable
economic conditions and shortcomings in internal risk
management.

He added that the deterioration on the group's loan
portfolio was accelerated by the decline in share markets
and regional currencies, together with the subsequent
liquidity shortages.  "The Bank management appreciates that
there are structural weaknesses in the group and measures
are being taken to correct them," Tunku Ahmad said.

Of the total provisions for bad and doubtful debts
amounting to RM1.6 billion, RM737.7 million were at the
commercial bank level, while provisions at the group's
stockbroking arm SimeSecurities Sdn Bhd stood at RM712.7
million.

The group's offshore operations Sime International (L)
roped in the remainder of RM102.4 million in provisions.
The provisions for diminution in the value of Sime Bank's
investments totalled RM162.8 million in SimeSecurities and
Sime International while further provisions of RM703.4
million were made for capital deficiencies in the two
subsidiaries.

Tunku Ahmad said the investment provisions mainly related
to large exposures secured by shares in SimeSecurities and
Sime International, as well as exposure to "Indonesian
risks" and to a lesser extent Thailand.

"The Bank management would like to stress that the
provisional policy is in line with Bank Negara's revised
guidelines ... which require a more stringent
classification of non-performing loans ... more prudent
basis for provisioning and greater disclosure of risks," he
said.  At Dec 31, 1997, total non-performing loans at the
bank level stood at 18 per cent.

At the operations level, the group registered gross
interest income of RM1.37 billion which, after accounting
for interest expense, translated into a net interest income
of RM413.25 million.  The group's after-tax loss of RM1.82
billion wiped out retained profits brought forward of
RM530.98 million, resulting in losses of RM1.28 billion.

For the 11 months ended Dec 31, 1996, the group achieved
pre-tax profits of RM391.6 million and after-tax profits of
RM248.19 million from interest income of RM1.24 billion.
Exposure of its loans portfolio, which rose 29 per cent to
RM4.8 billion, is broken down into RM1.6 billion in the
domestic market, RM1.5 billion in overseas branches and
RM920 million in Sime International.

Tunku Ahmad said the bank's exposure to the broad property
sector was within Bank Negara guidelines at 12 per cent,
but exposure to share financing stood at 22 per cent,
exceeding the 15 per cent limit set by the central bank.
In terms of sector distribution, RM2 billion went into real
estate, RM1.9 billion into general commerce and RM1.1
billion into share financing.

Commenting on the group's strategy to counter its losses,
Tunku Ahmad said the bank will set up an improved credit
risk management function, improve the credit approval
process and develop a risk management information
technology infrastructure.  "Moves are also being made to
improve the structuring of loans and the monitoring of
customer results at the corporate section of Sime Bank, at
the Labuan operations and at SimeSecurities," he added.

The group clocked in a net loss per share of RM3.61 from a
net earnings of 71 sen from the 11 months ended Dec 31,
1996.
(New Straits Times - 03/05/98)


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

MANUFACTURER ASSOCIATES: Asks SEC For Relief
--------------------------------------------
Manufacturer Associates, Inc. (MAI), maker of woven garment
labels, has asked the Securities and Exchange Commission
(SEC) for temporary relief from its debt payments for loans
amounting to 50.54 million Philippine pesos (PhP). In the
petition, MAI asked the SEC to enjoin all its creditors
from enforcing their claims until the firm's finances has
been put in order. According to the petition it filed with
the SEC last February 28, Metropolitan Bank and Trust Co.
is the firm's biggest creditor with total exposure of
PhP22.32 million.

The firm's non-bank creditors, on the other hand, loaned
the firm only PhP1.15 million. The rest of MAI's loan
obligations of PhP25.93 million was extended by the firm's
president and general manager Mariano S. Calderon. The firm
also asked the SEC to appoint a management committee to
oversee its operations until it has sufficiently recovered
from its financial woes. In its petition, the firm said it
"suffered financial difficulties arising from unavoidable
events beyond its control such as the industry-wide
retrenchment in the garment export business, the principal
market of MAI's products." --(Business World 06-Mar-1998)


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

DEVELOPMENT BANK: Moody's Ratings Lowered to Negative
-----------------------------------------------------
Development Bank of Singapore Ltd. (DBS) The ratings
outlook of six Singapore banks was lowered to negative from
stable by Moody's Investors Service Thursday to reflect the
possibility of a further deterioration in regional
economies.  The six Singapore banks remain "among the
strongest in Asia," but face "increased threats to asset
quality" because of the number of countries they were
exposed to, the US-based credit rating agency said.

In a statement issued one day after three of the banks
reported poor results due to their regional exposure,
Moody's warned of the "depth of problems in Indonesia and
the increasing difficulties facing Malaysia's domestic
economy."  Moody's also said the banks' asset qualities
were threatened by a slowdown in the Singapore economy, and
the "duration of the crisis."

The six banks were Development Bank of Singapore Ltd.
(DBS), Oversea-Chinese Banking Corp. Ltd. (OCBC), United
Overseas Bank Ltd. (UOB), Overseas Union Bank
Ltd. (OUB), Keppel Bank of Singapore Ltd. and Tat Lee Bank
Ltd. Moody's however emphasized that "it saw no threat to
the banks' solvency and expected that the impact, if any,
on the banks' credit standing would be minimal."

DBS, the largest Singapore bank, reported a 35-percent drop
in net profits from a year ago to 436.5 million Singapore
dollars (271.05 million US) in 1997, Keppel reported a 20.5
percent drop to 73.308 million dollars and Tat Lee
reported a rare after-tax loss of 38.7 million dollars.

The credit assessor said the ratings outlook "was not in
response" to the release by DBS, Keppel and Tat Lee on
Wednesday of their profits for 1997, which factored in
exceptional provisions for loans to the region and mirrored
the impact of the Asian financial crisis.

Moody's said it "expected earnings to be well below normal
for 1997, 1998, and possibly even 1999, due to the need for
potential loan loss provisions, the drag of non-performing
loans, and reduced business opportunities."

The ratings agency said that DBS' "regional expansion is
still young," and noted UOB's significant regional exposure
was in Malaysia where it operates as a local bank.

It cited OCBC's conservative credit practices and its local
banking subsidiary in Malaysia, and said OUB "appears to
have somewhat more overseas credit exposure than its
peers." (Agence France Presse - 05-Mar-1998)


INTEGRAL PERIPHERALS: Disk Drive Maker In Liquidation
-----------------------------------------------------
The Singapore unit of a US disk drive maker was
placed under provisional liquidation as its parent applied
in the United States for bankruptcy, the Business Times
reported Friday.  A judge on Thursday ordered that two
officials of accountants Arthur Andersen in Singapore be
appointed provisional liquidators for Integral
Peripherals Pte. Ltd., which had liabilities of up to 50
million US dollars.

Tay Swee Sze, one of the provisional liquidators, told
Business Times that trade debts of Integral were some 20 to
30 percent of its liabilities and borrowings from its US
parent comprised the balance.  Integral was one of two
small drive makers specializing in credit card-sized
1.8-inch drives for portable computers, the report said,
adding that its sole manufacturing plant here produced
4,000 disk drives a week, considered by suppliers to be a
small number.

Tay said they hoped to find a buyer for the company within
the next few weeks. The report quoted industry sources as
saying IBM Corp. and a few Japanese multinationals were
interested.  "There is still some hope for the company and
the workers left behind," he said. Only a handful of
Integral's 300 employees remain, the rest having been
retrenched.

The disk drive manufacturing industry in Singapore has
declined in the last quarter of 1997 from the previous
quarter, due to excess capacity and oversupply, as demand
fell due to the Asian economic crisis.
(Agence France Presse - 03/06/98)


KEPPEL BANK: Moody's Ratings Lowered to Negative
----------------------------------------------------
Keppel Bank of Singapore Ltd. - The ratings outlook of six
Singapore banks was lowered to negative from stable by
Moody's Investors Service Thursday to reflect the
possibility of a further deterioration in regional
economies.  The six Singapore banks remain "among the
strongest in Asia," but face "increased threats to asset
quality" because of the number of countries they were
exposed to, the US-based credit rating agency said.

In a statement issued one day after three of the banks
reported poor results due to their regional exposure,
Moody's warned of the "depth of problems in Indonesia and
the increasing difficulties facing Malaysia's domestic
economy."  Moody's also said the banks' asset qualities
were threatened by a slowdown in the Singapore economy, and
the "duration of the crisis."

The six banks were Development Bank of Singapore Ltd.
(DBS), Oversea-Chinese Banking Corp. Ltd. (OCBC), United
Overseas Bank Ltd. (UOB), Overseas Union Bank
Ltd. (OUB), Keppel Bank of Singapore Ltd. and Tat Lee Bank
Ltd. Moody's however emphasized that "it saw no threat to
the banks' solvency and expected that the impact, if any,
on the banks' credit standing would be minimal."

DBS, the largest Singapore bank, reported a 35-percent drop
in net profits from a year ago to 436.5 million Singapore
dollars (271.05 million US) in 1997, Keppel reported a 20.5
percent drop to 73.308 million dollars and Tat Lee
reported a rare after-tax loss of 38.7 million dollars.

The credit assessor said the ratings outlook "was not in
response" to the release by DBS, Keppel and Tat Lee on
Wednesday of their profits for 1997, which factored in
exceptional provisions for loans to the region and mirrored
the impact of the Asian financial crisis.

Moody's said it "expected earnings to be well below normal
for 1997, 1998, and possibly even 1999, due to the need for
potential loan loss provisions, the drag of non-performing
loans, and reduced business opportunities."

The ratings agency said that DBS' "regional expansion is
still young," and noted UOB's significant regional exposure
was in Malaysia where it operates as a local bank.

Moody's said the merger of Keppel Bank and Tat Lee in
January was "positive" for both banks and that Keppel's
strong capital base would absorb the problems of Tat Lee's
"higher than average exposure to Indonesia."

It cited OCBC's conservative credit practices and its local
banking subsidiary in Malaysia, and said OUB "appears to
have somewhat more overseas credit exposure than its
peers." (Agence France Presse - 05-Mar-1998)


OVERSEA-CHINESE: Moody's Ratings Lowered to Negative
----------------------------------------------------
Oversea-Chinese Banking Corp. Ltd. (OCBC) - The ratings
outlook of six Singapore banks was lowered to negative from
stable by Moody's Investors Service Thursday to reflect the
possibility of a further deterioration in regional
economies.  The six Singapore banks remain "among the
strongest in Asia," but face "increased threats to asset
quality" because of the number of countries they were
exposed to, the US-based credit rating agency said.

In a statement issued one day after three of the banks
reported poor results due to their regional exposure,
Moody's warned of the "depth of problems in Indonesia and
the increasing difficulties facing Malaysia's domestic
economy."  Moody's also said the banks' asset qualities
were threatened by a slowdown in the Singapore economy, and
the "duration of the crisis."

The six banks were Development Bank of Singapore Ltd.
(DBS), Oversea-Chinese Banking Corp. Ltd. (OCBC), United
Overseas Bank Ltd. (UOB), Overseas Union Bank
Ltd. (OUB), Keppel Bank of Singapore Ltd. and Tat Lee Bank
Ltd. Moody's however emphasized that "it saw no threat to
the banks' solvency and expected that the impact, if any,
on the banks' credit standing would be minimal."

DBS, the largest Singapore bank, reported a 35-percent drop
in net profits from a year ago to 436.5 million Singapore
dollars (271.05 million US) in 1997, Keppel reported a 20.5
percent drop to 73.308 million dollars and Tat Lee
reported a rare after-tax loss of 38.7 million dollars.

Moody's said it "expected earnings to be well below normal
for 1997, 1998, and possibly even 1999, due to the need for
potential loan loss provisions, the drag of non-performing
loans, and reduced business opportunities."

The ratings agency said that DBS' "regional expansion is
still young," and noted UOB's significant regional exposure
was in Malaysia where it operates as a local bank.

It cited OCBC's conservative credit practices and its local
banking subsidiary in Malaysia, and said OUB "appears to
have somewhat more overseas credit exposure than its
peers." (Agence France Presse - 05-Mar-1998)


OVERSEAS UNION: Moody's Ratings Lowered to Negative
----------------------------------------------------
Overseas Union Bank Ltd. (OUB) ) The ratings outlook of six
Singapore banks was lowered to negative from stable by
Moody's Investors Service Thursday to reflect the
possibility of a further deterioration in regional
economies.  The six Singapore banks remain "among the
strongest in Asia," but face "increased threats to asset
quality" because of the number of countries they were
exposed to, the US-based credit rating agency said.

In a statement issued one day after three of the banks
reported poor results due to their regional exposure,
Moody's warned of the "depth of problems in Indonesia and
the increasing difficulties facing Malaysia's domestic
economy."  Moody's also said the banks' asset qualities
were threatened by a slowdown in the Singapore economy, and
the "duration of the crisis."

The six banks were Development Bank of Singapore Ltd.
(DBS), Oversea-Chinese Banking Corp. Ltd. (OCBC), United
Overseas Bank Ltd. (UOB), Overseas Union Bank
Ltd. (OUB), Keppel Bank of Singapore Ltd. and Tat Lee Bank
Ltd. Moody's however emphasized that "it saw no threat to
the banks' solvency and expected that the impact, if any,
on the banks' credit standing would be minimal."

DBS, the largest Singapore bank, reported a 35-percent drop
in net profits from a year ago to 436.5 million Singapore
dollars (271.05 million US) in 1997, Keppel reported a 20.5
percent drop to 73.308 million dollars and Tat Lee
reported a rare after-tax loss of 38.7 million dollars.

Moody's said it "expected earnings to be well below normal
for 1997, 1998, and possibly even 1999, due to the need for
potential loan loss provisions, the drag of non-performing
loans, and reduced business opportunities."

The ratings agency said that DBS' "regional expansion is
still young," and noted UOB's significant regional exposure
was in Malaysia where it operates as a local bank.

It cited OCBC's conservative credit practices and its local
banking subsidiary in Malaysia, and said OUB "appears to
have somewhat more overseas credit exposure than its
peers." (Agence France Presse - 05-Mar-1998)


TAT LEE BANK: Moody's Ratings Lowered to Negative
----------------------------------------------------
Tat Lee Bank Ltd. - The ratings outlook of six Singapore
banks was lowered to negative from stable by Moody's
Investors Service Thursday to reflect the possibility of a
further deterioration in regional economies.  The six
Singapore banks remain "among the strongest in Asia," but
face "increased threats to asset quality" because of the
number of countries they were exposed to, the US-based
credit rating agency said.

In a statement issued one day after three of the banks
reported poor results due to their regional exposure,
Moody's warned of the "depth of problems in Indonesia and
the increasing difficulties facing Malaysia's domestic
economy."  Moody's also said the banks' asset qualities
were threatened by a slowdown in the Singapore economy, and
the "duration of the crisis."

The six banks were Development Bank of Singapore Ltd.
(DBS), Oversea-Chinese Banking Corp. Ltd. (OCBC), United
Overseas Bank Ltd. (UOB), Overseas Union Bank
Ltd. (OUB), Keppel Bank of Singapore Ltd. and Tat Lee Bank
Ltd. Moody's however emphasized that "it saw no threat to
the banks' solvency and expected that the impact, if any,
on the banks' credit standing would be minimal."

DBS, the largest Singapore bank, reported a 35-percent drop
in net profits from a year ago to 436.5 million Singapore
dollars (271.05 million US) in 1997, Keppel reported a 20.5
percent drop to 73.308 million dollars and Tat Lee
reported a rare after-tax loss of 38.7 million dollars.

Moody's said it "expected earnings to be well below normal
for 1997, 1998, and possibly even 1999, due to the need for
potential loan loss provisions, the drag of non-performing
loans, and reduced business opportunities."

The credit assessor said the ratings outlook "was not in
response" to the release by DBS, Keppel and Tat Lee on
Wednesday of their profits for 1997, which factored in
exceptional provisions for loans to the region and mirrored
the impact of the Asian financial crisis.

The ratings agency said that DBS' "regional expansion is
still young," and noted UOB's significant regional exposure
was in Malaysia where it operates as a local bank.

Moody's said the merger of Keppel Bank and Tat Lee in
January was "positive" for both banks and that Keppel's
strong capital base would absorb the problems of Tat Lee's
"higher than average exposure to Indonesia."

It cited OCBC's conservative credit practices and its local
banking subsidiary in Malaysia, and said OUB "appears to
have somewhat more overseas credit exposure than its
peers." (Agence France Presse - 05-Mar-1998)


UNITED OVERSEAS: Moody's Ratings Lowered to Negative
----------------------------------------------------
United Overseas Bank Ltd. (UOB) - The ratings outlook of
six Singapore banks was lowered to negative from stable by
Moody's Investors Service Thursday to reflect the
possibility of a further deterioration in regional
economies.  The six Singapore banks remain "among the
strongest in Asia," but face "increased threats to asset
quality" because of the number of countries they were
exposed to, the US-based credit rating agency said.

In a statement issued one day after three of the banks
reported poor results due to their regional exposure,
Moody's warned of the "depth of problems in Indonesia and
the increasing difficulties facing Malaysia's domestic
economy."  Moody's also said the banks' asset qualities
were threatened by a slowdown in the Singapore economy, and
the "duration of the crisis."

The six banks were Development Bank of Singapore Ltd.
(DBS), Oversea-Chinese Banking Corp. Ltd. (OCBC), United
Overseas Bank Ltd. (UOB), Overseas Union Bank
Ltd. (OUB), Keppel Bank of Singapore Ltd. and Tat Lee Bank
Ltd. Moody's however emphasized that "it saw no threat to
the banks' solvency and expected that the impact, if any,
on the banks' credit standing would be minimal."

DBS, the largest Singapore bank, reported a 35-percent drop
in net profits from a year ago to 436.5 million Singapore
dollars (271.05 million US) in 1997, Keppel reported a 20.5
percent drop to 73.308 million dollars and Tat Lee
reported a rare after-tax loss of 38.7 million dollars.

Moody's said it "expected earnings to be well below normal
for 1997, 1998, and possibly even 1999, due to the need for
potential loan loss provisions, the drag of non-performing
loans, and reduced business opportunities."

The ratings agency said that DBS' "regional expansion is
still young," and noted UOB's significant regional exposure
was in Malaysia where it operates as a local bank.

It cited OCBC's conservative credit practices and its local
banking subsidiary in Malaysia, and said OUB "appears to
have somewhat more overseas credit exposure than its
peers." (Agence France Presse - 05-Mar-1998)


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

THAI-ASAHI GLASS: To Stop Production at Float-Glass Furnace
-----------------------------------------------------------
Asahi Glass Co. will suspend production at a float-glass
furnace operated by joint venture the Thai-Asahi Glass
Public Co. as a result of sluggish demand in Southeast
Asian markets.

The temporary closure will reduce the Japanese company's
daily output capacity of sheet glass in Thailand by one-
third to 1,000 tons. The Tokyo glassmaker operates three
local float-glass furnaces in Thailand, each with a daily
output capacity of 500 tons - two run by Thai-Asahi and one
by another joint venture, Bangkok Float Glass Co.
    
The company is discontinuing operations at one furnace to
raise the capacity utilisation rate of the remaining two.
The length of the shutdown has yet to be determined.
     (Nikkei) (Asia Pulse 06-Mar-1998)


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

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DC USA.  Debra Brennan and Lexy Mueller, Editors.

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