February 2001
| Euromoney February 2001 Having pursued a dirigiste approach to local non-financial companies in the 1990s, encouraging expansion abroad and regional leadership, the Singapore government has now turned its attention to the banks, urging liberalization, consolidation and outward-looking expansionism. It can't force the banks to do what it wants. But it gets very cross when they don't. - Overcoming bland banking
The First step in building a strong bank is to have a strong, defined franchise. And each of Singapore’s banks can claim some success in one or two areas. But none has a really strong franchise worthy of a domestic, let alone regional, leader. And this is largely the result of complacent neglect of customer needs. - The failed deals
Thus far, two mergers in Singapore’s financial sector have failed to go through, and several cross-border ventures have gone awry. Find out why. - John Olds decides to move on
Olds joined DBS as CEO in mid-1998, the First foreigner to run a Singapore bank. He has since been overseeing a complete overhaul of the bank’s business lines, transforming the institution from the last vestiges of its role as a traditional development bank lending at low margins, to one hoping to dominate at the retail and wholesale level, both in Singapore and Asia-wide.
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Euromoney February 2001
In a wide-ranging interview, Supachai Panitchpakdi, Thailand's deputy prime minister and director-general-elect of the WTO, talks about the successes and failures of government strategy in bringing Thailand out of the 1997-98 Asian crisis and assesses the prospects for a successful continuation of the work of the WTO
Euromoney February 2001
In spite of the battle in Seattle and the subsequent inertia that has gripped the World Trade Organization, Supachai says he is looking forward to taking over from Michael Moore as WTO director-general. “I want to be totally immersed in this work,” he says.
Euromoney February 2001
With a first round of bank restructuring that killed off more than half the country’s banks behind it, Korea is now facing up to consolidating what is left, ostensibly to enhance competitiveness and create economies of scale. It’s not clear, though, that the timing is right or that the government’s approach to mergers is appropriate or sufficiently disinterested.
Euromoney February 2001
Korean deputy finance minister Lee Kyun Kyong speaks about the barrage of criticism that has hit the government.
Euromoney February 2001
As Seoul Bank faces being dragged into the government's financial holding company, CEO Kang Chungwon explains how he plans to get the bank back on track.
Euromoney February 2001
Vietnam’s newly created stock market boasts only five stocks, yet one foreign investor reckons its dematerialized system is far superior to London’s. Strong economic growth rates are attracting direct and portfolio investors. Enthusiasts reckon valuations are at their lowest and likely to rise before long.
Euromoney February 2001
Thai Petrochemical Industry is Thailand’s biggest restructuring headache. And if it is going to pull itself out of trouble, its managers claim that it needs access to large amounts of working capital. But that is not forthcoming.
Euromoney February 2001
At worst, running a restructuring operation in Thailand can be a life-threatening métier, but its practitioners face a host of other obstacles, not least getting paid. Paradoxically, Thais are also seen as being too gentle and non-confrontational to buckle down seriously to the business of extracting debt from each other. On the buying side of the business, major players such as Lehman Brothers claim to be making a fair return on the distressed debt they have acquired.
Euromoney February 2001
he two administrations that succeeded that of Ferdinand Marcos put the Philippines on the road to economic recovery and did their best to wipe out cronyism and corruption. The recently ousted Estrada regime went a long way to reversing their achievements. Maggie Ford reports on the chances of Gloria Macapagal-Arroyo restoring reform and removing some of the deep-seated inequalities among Filipinos
Euromoney February 2001
Malaysia has emerged from the Asian crisis to find itself occupying a lower place in the regional pecking order. From being one of the must-have equity markets for foreign investors, it has become an also-ran. Domestic equity demand is also depressed and it’s likely that in the near future bond markets will offer more interest.
Euromoney February 2001
Japan's government debt is frighteningly large – larger by far than any other country's has ever been. Some Japanese economists contend that because the overwhelming bulk of it is held domestically there is no fundamental problem. Yet others, and most outside observers, reckon indebtedness cannot be overcome by growth or fiscal means and is a threat to worldwide stability.
Euromoney February 2001
Japan’s ministry of finance has lost face in the past decade as an arbiter of business development. The complexities of market growth have overwhelmed it, the collapse of a Liberal Democratic monopoly has removed its political underpinnings and scandalous revelations have been made about its corrupt practices. Now it has lost its traditional name. Despite the rise of rivals such as the Financial Services Agency and attempts by politicians to bypass MoF’s budget functions it’s far from clear who is in charge.
Euromoney February 2001
Japan's Ministry of Finance building has the feel of a British public school, and its occupants consider themselves the real rulers of Japan.
Euromoney February 2001
Three years after the Asian financial crisis confidence has still not returned to the area. Many investors are sceptical that these countries have done enough to avoid repeating the same mistakes. Singapore’s deputy prime minister, Lee Hsien Loong, outlines the changes that have been taking place in his country and his vision for the future.
Euromoney February 2001
Asia’s clean-up of its banking mess is losing momentum. There is recognition of what needs to be done but getting there is proving difficult. The crisis atmosphere has abated and economic recovery will pull the banks along with it. But failure to deal with bad debts will hold countries back.
Euromoney February 2001
It was a volatile year in the capital markets, as the telecoms sector clearly showed but still there were standout deals amid the chaos. Antony Currie, Anja Helk, Peter Lee, Julian Marshall, Jennifer Morris and Felix Salmon look back over 2000.
Euromoney February 2001
The world's largest non-sovereign borrowers made further efforts to position their bonds as alternatives to increasingly rare sovereign issues in 2000. Futures on US agency bonds began trading, borrowers stuck to calendars in volatile markets and embraced the internet.
Euromoney February 2001
Turks are responding enthusiastically to the high-pressure promotion of internet access. So far, though, there’s not much money to be made from the business. Access providers will soon have to reconsider their cultural aversion to business consolidation, or else think smaller.
Euromoney February 2001
Babur Ozden discusses prospects for the Turkish Internet sector.
Euromoney February 2001
Elizabeth Horn Ozden talks about technology trends and the Turkish retail market.
Euromoney February 2001
Application service provision has transformed prospects for suppliers of risk-management software. Systems that smaller corporations would once have found too costly, or too feature-heavy, have become available relatively cheaply and in digestible chunks from ASPs on the internet. Even larger companies can see the advantages of the ASP strategy and it is possible that the model will supersede the installed software approach. Boris Antl and Richard Laden check out what is available and forecast market developments