World Brief

Toshiba Corp., the world’s largest maker of notebook computers, announced its plan to make an entry into the fast-growing market of hand-held digital organisers in the near future.

The Japanese firm said that is would launch its own personal digital assistant (PDA) in Japan and the USA in the coming summers to enter the market. Toshiba, however, did not declare as to whether its PDA would adopt Swedish telecom company Ericson’s bluetooth mobile communications format, Microsoft Group’s Pocket PC operating system or any other system.

The Japanese giant however made it clear that it would take advantage of its know-how in manufacturing small and light-weight gadgets in producing the PDAs, to compete against dominant players like Sharp and Palm.>

Pohang Steel Posts Record Profit

South Korean steel giant Pohang Iron and Steel Co. announced net profit amounting to a record US$ 1.3 billion for the previous year.

According to the company, the net profit in 2000 rose from US$ 1.23 billion in 1999. Sales also went up 9.2 percent year on year, said the steel manufacturer, one of the biggest in the world. Pohang projects sales this year to touch 11.6 billion won mark.

Privatized only the year before, the steel giant had played a central role in south Korea’s ‘economic miracle’ during the 1970s. The company was however forced to cut down exports due to soaring rise in dumping charges overseas.

Tourism Grows in Singapore, Down in SL

Singapore tourism officials have forecast a 6 to 8 percent growth in tourism. The Singapore Tourism Board was optimistic of the growth despite the US economic slowdown and other negative economic indicators.

The country last year received a record 7.6 million visitors, spending an estimated US$ 2.6 billion. This was seen as a remarkable turn around from the 6.2 million arrivals in 1998 on the back of the Asian economic crisis.

But the civil war is Sri Lanka has resulted in a sharp 22.6 percent drop in tourist arrivals there.

Official statistics show that in November, 2000, only 32,400 tourists visited the island as opposed to 41,952 in the same period a year ago. According to the Cylon Tourism Board, there has been a slowdown in tourist arrival since April. The Board also said that Colombo and the southern beaches – the main tourist destinations – were also largely affected despite the area not being under direct threat from the government’s battle with Tamil Tiger rebels.

Hyundai to Restructure

South Korea’s debt-ridden Hyundai Electronics Industries Co (HEI) announced plans to reduce its workforce by 25 percent. It also plans to raise US$ 776 million through asset sales.

The total number of employees will come down to 17,000, informed the company revealing details of a new corporate revamp.

The second biggest maker of dynamic random access memory (DRAM) chips, HEI had reduced its total debt from 12.3 trillion won to 7.8 trillion won since acquiring LG Semicom in October 1999. But the company faced a liquidity crisis early 2001 as around US$ 4.7 billion of maturing loans became due. The danger however eased after the state-owned Korean Development Bank underwrote 2.9 trillion won of HEI’s maturing bonds besides increasing its export credit limits.

Renault-Samsung Plans New Car

Renault-Samsung Motor Co., the first South Korean carmaker ever acquired by foreigners, is planning to launch a new small car. The company also aims to be profitable by 2004.

According to the unit, taken over by the French auto giant Renault SA only last year, an investment of US$ 95 million would be pumped into the project over the next two years.

It was also informed that the design of the planned car was already passed by Renault-Samsung and the car would be marketed in the second half of 2002. The firm is also learned to have plans of making 50,000 units of the car each year.

SL to Help B'desh

Sri Lanka will help Bangladesh deal with 3,000 sick or closed industries, according to Bangladesh official news agency, BSS.

BSS said that the developments came as a result of talks held in Dhaka recently between Bangladesh Finance Minister Shah Kibria and Sri Lankan Minister for Constitutional Affairs and Industrial Development, G. L. Peiris.

The news agency quoted the Sri Lankan minister as saying that Colombo was interested in investing in Bangladesh because of its easy access to markets in the west which could also help promote Sri Lanka's business.

Compiled by Business Age Desk