Asia's Business Landscape in 1999: Trends, Challenges, and Opportunities

Strategic Insights -

In 1999, Asia was a hub of significant business activities, with various companies from different countries making headlines for various reasons. This included mergers and acquisitions, joint ventures, and major investments. South Korean conglomerate Samsung Group sold a 39% stake in its joint venture with GE Medical Equipment for $20 million. In Vietnam, 29 companies bid for a $164 million Asian Development Bank-funded highway project. Japan's Sumitomo Heavy Industries posted a net loss of $108.18 million, its first loss in four years. Meanwhile, Australia's Macquarie Corp and Lucent Technologies signed a deal to supply technology for a national data network. Globe Telecom and Ericsson revealed joint initiatives to provide GSM coverage in the Philippines. Hyundai Electronics sold its US semiconductor chip assembly unit for $550 million. A Malaysian hotel project was on the verge of being rescued by an Australian firm.

Key Takeaways:

  • Samsung Group sold a 39% stake in its joint venture with GE Medical Equipment for $20 million, a significant move in the company's effort to consolidate its financial standings.
  • 29 companies, including those from South Korea, Japan, Taiwan, China, Malaysia, India, Thailand, and Finland, bid for a $164 million Asian Development Bank-funded highway project in Vietnam.
  • Japan's Sumitomo Heavy Industries posted a net loss of $108.18 million for the year, its first loss in four years, citing a decline in sales and an increase in costs.
  • Australia's Macquarie Corp and Lucent Technologies signed a deal to supply technology for a national data network, positioning Macquarie to offer critical data services to Australian corporate users.
  • Globe Telecom and Ericsson revealed joint initiatives to provide GSM coverage in the Philippines, targeting Metro Davao and Cebu province.
  • Hyundai Electronics sold a 90% stake in its US semiconductor chip assembly unit for $550 million to a consortium of investors led by Citicorp Venture Capital.
  • A Malaysian hotel project, worth $100 million, was on the verge of being rescued by an Australian firm, Grollo Ltd., which would take over as developer and project manager.
  • Leading industrial groups, including Mobil, Petronas, and local groups, showed interest in teaming up with state-owned Hindustan Petroleum Corporation (HPCL) in a $3.06 billion Indian refinery project.
  • The National Bank of Oman posted a net profit of $39.24 million for 1998, making it the most profitable company on the Muscat Securities Market for the year.
  • Vietnamese and Japanese firms, including the Vietnam Data Company (VDC) and Japan's KDD Corporation, entered into a joint internet cooperation deal, opening an internet gateway named NEWEB.

Statistics:

  • Samsung Group sold a 39% stake in its joint venture with GE Medical Equipment for $20 million.
  • 29 companies bid for a $164 million Asian Development Bank-funded highway project in Vietnam.
  • Japan's Sumitomo Heavy Industries posted a net loss of $108.18 million for the year.
  • Australia's Macquarie Corp will invest in a multi-million dollar technology supply deal with Lucent Technologies.
  • Hyundai Electronics sold a 90% stake in its US semiconductor chip assembly unit for $550 million.
  • The Malaysian hotel project is worth $100 million.
  • The National Bank of Oman posted a net profit of $39.24 million for 1998.
  • The Vietnamese internet gateway NEWEB will provide high-speed digital circuit connectivity with speeds up to 2 Mbps.

Sources:

  • http://www.asiapulse.com
  • http://www.comtexnews.com