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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, August 20, 2001, Vol. 4, No. 162


                         Headlines


A U S T R A L I A

131 SHOP.COM.AU: Appoints New Non-Exec Director
131 SHOP.COM.AU: Cavastowe Cuts Shares
CABLE & WIRELESS: Launches "Operation Win Through"
CABLE & WIRELESS: Posts Notice From Singtel
CENTAUR MINING: Goldfields Acquires Strategic Gold Tenement
GOLDEN WEST: Receives Demand Note From Credit Suisse
MTM ENTERTAINMENT: Babcock & Brown Increases Stake
NEWCREST MINING: Posts Share Placement For Dev/Debt Repayment
SOUTHERN AUSTRALIA: Wind Up Implemented


C H I N A   &   H O N G  K O N G

CIL HOLDINGS: Trading Suspended
FAI FIRST: Winding Up Petition Set For Hearing
FU HUI: Director Sun Has Resigned
HIH HOLDINGS: Faces Winding Up Petition
LEARNINGCONCEPT: Changes Company Name
NAM FONG INTL: To Pay HK$5M To Creditor
NORTHERN INTL: Cites No Reason For Price Increase
PACIFIC CENTURY: Last Day Of Dealings
PACIFIC CENTURY: Sees No Reason For Share Price Increase


J A P A N

DAIEI INC: Fast Retailing Seeks Injunction Over Similar Designs
SAWAKO CORP: Court Starts Rehabilitation Process


K O R E A

DAEWOO MOTOR: Stalled Talks May Force FSC To Seek New Options
HYNIX SEMICON: S&P Downgrades Long-Term Outlook To Negative
HYUNDAI MERCHANT: Cruise Tour Incurs W52B H1 2001 Losses
KOOKMIN BANK: Cutting 3.4% Staff Via Retirement Program


M A L A Y S I A

ARAB-MALAYSIAN CORP: CIMB Announces RO Withdrawal
AUTOWAYS HOLDINGS: Enters MOU With Selayang Budi
DATAPREP HOLDINGS: SC Grants VXL Take-over Shares Waiver
GLOBAL CARRIERS: To Acquire Vessels After Workout Scheme
RENONG BERHAD: Taraf Loses Interest In 21.56% Stakes Acquisition
SOUTH PENINSULAR: Court Withdraws Restraining Order
TAJO BERHAD: Explains Defaulted Payments
TAI WAH: SC Approves Revisions On Proposed Workout Scheme
WEMBLEY INDUSTRIES:  Explains RM3.778M Variance Loss


P H I L I P P I N E S

NATIONAL POWER: To Sell Gas Turbines to Raise PhP1.5 Billion


S I N G A P O R E

CAPITALAND LIMITED: Issues Changes In Substantial Shareholder
CAPITALAND LIMITED: Posts Shareholder Changes Deemed Interest
KEPPEL CAPITAL: Publicly Discloses Dealings By Associates
L&M GROUP: Appoints Director/Audit Committee Member
L & M GROUP: Appoints Director/ Audit Committee Member
PANPAC MEDIA.COM:  Director of Subsidiary Resigns


T H A I L A N D

NEP REALTY: Sells 480,000 Siam A&C Shares for Bt4.3M
THAI HEAT: Incurs Bt4.511 Million 2001 Q2 Net Loss
THAI MODERN: Planner's Report, Fees; Performance & Strategy
THAI NAM PLASTIC: Rehab Plan Q2/2001 Progress Report

     -  -  -  -  -  -  -  -

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


131 SHOP.COM.AU: Appoints New Non-Exec Director
-----------------------------------------------
The Directors of Focus Technologies Limited, formerly 131
Shop.com.au Limited, are pleased to announce that John Lee has
been appointed as Non-Executive Director.

Lee is also a director of Online Advantage Limited, a leading e-
commerce provider which recently took a strategic 19.7 percent
investment through a placement of 12,700,000 shares in Focus
Technologies in July this year.


131 SHOP.COM.AU: Cavastowe Cuts Shares
--------------------------------------
Cavastowe Pty Ltd decreased its relevant interest in 131
Shop.Com.Au Limited on 04/July/2001, from 11,550,000 ordinary
shares (19.34 percent) to 7,350,000 ordinary shares (11.45
percent).


CABLE & WIRELESS: Launches "Operation Win Through"
-------------------------------------------------
Cable & Wireless Optus revealed "Operation Win Through", a major
initiative aimed at significantly realigning its operational
cost base and reducing capital expenditures and other outlay.

"Operation Win Through" will apply to all divisions. It will
examine cost savings and other opportunities, including
structural changes to operations, to ensure Optus costs are at
world's best levels.

At the 2000/2001 full-year results presentation in May, the
Company said it expected revenue and EBITDA growth to slow this
year.

The Company also said it expected to have higher levels of
depreciation, amortization and interest this year.

Depreciation and amortization charges are expected to represent
a slightly higher proportion of revenue than seen historically.
This reflects an increased proportion of IT assets that have
shorter useful lives and advance investments in data products.

Optus said today that "Operation Win Through" was designed to
help ensure it remained on track to meet its revenue and EBITDA
growth expectations for the full-year, in a tightening market.

As previously announced, Optus has said that $68m will be
written off against profit due to One.Tel bad debts. That, along
with the cost of the Optus sale process of approximately $30m,
the write-back of capacity sales from the ASIC settlement of
$25m and increased depreciation will result in a net reduction
of approximately $100m in after-tax profit in the first Half.


CABLE & WIRELESS: Posts Notice From Singtel
-------------------------------------------
Cable & Wirless Optus Limited posted this notice from Blake
Dawson Waldron:

          LETTER FROM BLAKE DAWSON WALDRON, LAWYERS

SINGTEL AUSTRALIA INVESTMENT PTY LIMITED ("SINGTEL AUSTRALIA")
TAKEOVER BID FOR SHARES IN CABLE & WIRELESS OPTUS LIMITED
("OPTUS")

We act for SingTel Australia.

Attached is a notice relating to the payment of Singapore
Telecommunications Limited dividends in Australian currency, and
the final dividend of Singapore Telecommunications Limited for
the year ended 31 March 2001 proposed to be declared at the
Annual General Meeting convened to be held on 30 August 2001.

BLAKE DAWSON WALDRON

Notice is hereby given pursuant to Article 1155(C)(b)(ii) of the
Articles of Association of Singapore Telecommunications Limited
(the "Company") that, in exercise of the powers conferred upon
the Directors under Article 155(A) of the Articles of
Association of the Company, the following rule ("Rule") has been
made in relation to the ordinary shares of S$0.15 each in the
capital of the Company ("Shares") which are listed on Australian
Stock Exchange Limited ("ASX"):

"PAYMENT OF DIVIDENDS IN AUSTRALIAN CURRENCY

(1) Any dividend which is declared under Article 127 or Article
128 of the Articles of Association of the Company (the
"Articles") as an amount in the currency of Singapore and which
is to be paid in the form of money may, at the discretion of any
Director, be paid in the currency of Australia in relation to
any or all of the ordinary shares of S$0.15 each in the capital
of the Company which are listed on Australian Stock Exchange
Limited, including shares traded in the form of CDIs (as defined
in the Articles) ("Australian Shares").

(2) The rate of exchange applicable in determining the amount of
the currency of Australia that is to be paid to satisfy the
obligation to pay the dividend declared shall be a quoted rate,
or an average of such quoted rates, as may be selected or
determined by any Director in his absolute discretion, and any
such selection or determination shall be announced by the
Company not less than 10 market days prior to the books closure
date fixed for determining entitlements to the dividend
declared.

(3) Any Director shall be entitled to complete and do all acts
and things as he may consider desirable, necessary or expedient
to give effect to any such payment.

(4) In addition, the Company (acting by any Director) may make
arrangements with the Depository (as defined in the Articles)
and CDN (as defined in the Articles) or both under which,
regardless of the currency in which dividends are paid to the
Depository or CDN, dividends in relation to the Australian
Shares are paid to CDN Holders (as defined in the Articles) in
Australian currency."

The Company has applied for admission to the Official List of
ASX in connection with its recent takeover bid for shares in
Cable & Wireless Optus Limited. Accordingly, the Rule has been
made to allow the payment in Australian dollars of dividends to
Australian shareholders ensuring that they do not have to pay
bank charges to receive their dividend and therefore putting
them on an equivalent financial position to Singapore residents.

Pursuant to Article 155 of the Articles of Association of the
Company, the Rule will take effect after one month has elapsed
from the date of this notice.

In the event that the Company is listed on ASX on or before 6th
September, 2001 (the "Books Closure Date"), the books closure
date fixed for determining entitlements to the final dividend of
36 (2/3) percent or 5.5 Singapore cents per share less income
tax in respect of the financial year ended 31st March, 2001
proposed to be declared at the Annual General Meeting convened
to be held on 30th August, 2001, the rate of exchange applicable
in determining the amount of the currency of Australia that is
to be paid to satisfy the obligation to pay such proposed final
dividend in relation to the Shares which are listed on ASX,
including Shares traded in the form of CHESS Depository
Interests in such Shares, will be the average of the quoted
rates, as selected by any Director, prevailing over the five
market days immediately preceding the Books Closure Date.


CENTAUR MINING: Goldfields Acquires Strategic Gold Tenement
-----------------------------------------------------------
Goldfields Limited (GLD) signed a Sale and Purchase Agreement
with Centaur Mining and Exploration Limited (Receivers and
Managers Appointed) and its Receivers to purchase three
groupings of gold mining and prospecting tenements in the
Kalgoorlie area, at a total cost of $2 million. Completion is
subject to a number of standard conditions.

The tenements are interlocked with Goldfields' extensive land
holdings in the Scotia, Golden Cities and Paradigm areas, but
are not core to Centaur's Mt Pleasant mining and milling
operations.

In the Scotia area of the Bardoc Tectonic Zone, 70 kilometers
north of Kalgoorlie, Goldfields' Aphrodite project contains a
previously announced resource of 893,000oz in two adjacent
deposits. The addition of the Centaur tenement, which covers the
southern extension of the Phi Lode structure, allows Goldfields
to control the entire Aphrodite system and adds significant
value to the land holdings.

Similarly in the Golden Cities area, 10 kilometers to the north-
west of Goldfields' Paddington mill, acquisition of the
Woodcutters' block gives Goldfields control of the entire gold
system, following its earlier purchase of Third Rail's (formerly
AMX Resources) assets. Goldfields commenced mining at the Golden
Cities Suva deposit in July, 2001.

The third tenement parcel (Carbine North East project) is
immediately adjacent to and contains extensions of Goldfields'
Paradigm deposit (a previously announced resource of 84,000 oz
grading 9.7g/t Au) which is 42 kilometers west of Paddington.
This acquisition will allow early development of Paradigm and
fills an important gap in Goldfields' tenement holdings in the
area. Exploration potential for additional high-grade gold
discoveries is considered to be strong.

Peter Cassidy, Managing Director and CEO of Goldfields, welcomed
the deal saying, "The purchase of these assorted tenements
reflects Goldfields' ongoing strategy aimed at rationalization
of the fragmented ground holdings in the Kalgoorlie area. This
acquisition allows Goldfields to optimize development of three
gold systems additional to those in production at Paddington and
Kundana and reinforces our commitment to the region."


GOLDEN WEST: Receives Demand Note From Credit Suisse
----------------------------------------------------
The Board of Golden West Refining Corporation Limited (GWRC) say
the Company has received a demand from Credit Suisse First
Boston International ("CSFB") for payment of an amount of
US$2,174,259.71.

The demand relates to unpaid obligations arising under a
guarantee provided by GWRC in support of a precious metal
inventory facility provided by CSFB to a subsidiary of Handy and
Harman Refining Group Inc (HHRG). HHRG is the company's US
subsidiary which went into Chapter 11 Bankruptcy protection in
March 2000.

This contingent liability has been disclosed in GWRC's accounts.
The annual accounts for year ended 31 March 2000 and the
financial report for the half year ended 30 September 2000 noted
that the financial statements had been prepared on a going
concern basis and did not include various contingent
liabilities. It was further noted that should a material
liability emerge there was significant uncertainty that the
company would continue as a going concern.

As a result of this demand the Directors of GWRC have commenced
discussions with both CSFB and GWRC's secured creditor, N M
Rothschild & Sons (Australia) Limited. GWRC will make a further
announcement following the outcome of these discussions.


MTM ENTERTAINMENT: Babcock & Brown Increases Stake
--------------------------------------------------
Babcock & Brown Group increased its relevant interest in MTM
Entertainment Trust on 16/August/2001, from 58,340,295 ordinary
units (72.93 percent) to 60,250,010 ordinary units (75.31
percent).


NEWCREST MINING: Posts Share Placement For Dev/Debt Repayment
-------------------------------------------------------------
Newcrest Mining Limited issued this announcement:

                    NEW ISSUE ANNOUNCEMENT

PART 1 - ALL ISSUES

1. Class of securities issued          Ordinary Shares
   or to be issued

2. Number of securities issued         33,750,000
   or to be issued (if known)
   or maximum number which
   may be issued

3. Principal terms of the securities  Ordinary Shares, that rank
   (eg, if options, exercise price  equally w/Existing Ordinary
   and expiry date; if partly paid  Shares.
   securities, the amount
   outstanding and due dates for
   payment; if convertible securities,
   the conversion price and dates
   for conversion)

4. Do the securities rank equally      Yes
   in all respects from the date
   of allotment with an existing
   class of quoted securities

   If the additional securities
   do not rank equally, please
   state:
   * the date from which they do
   * the extent to which they
     participate for the next
     dividend, (in the case of
     a trust, distribution) or
     interest payment
   * the extent to which they do
     not rank equally, other than
     in relation to the next
     dividend, distribution or
     interest payment

5. Issue price or consideration       $4.10 per share

6. Purpose of the issue (if        Share placement, for Project
   issued as consideration for   Developement, Repayment of Debt
   the acquisition of assets,    and General Corporate Purposes.
   clearly identify those
   assets)

7. Dates of entering securities        22/08/2001
   into uncertified holdings
   or despatch of certificates

                                      NUMBER  CLASS
8. Number and class of all       279,783,000  Ordinary Shares
   securities quoted on
   ASX (including the
   securities in clause
   2 if applicable)

                                      NUMBER  CLASS
9. Number and class of all               Nil  -
   securities not quoted
   on ASX (including the
   securities in clause 2
   if applicable)

10.Dividend policy (in the case        -
   of a trust, distribution
   policy) on the increased
   capital (interests)

PART 2 - BONUS ISSUE OR PRO RATA ISSUE

Items 11 to 33 are Not Applicable

PART 3 - QUOTATION OF SECURITIES

34. Type of securities (tick one)

    (a) X  Securities described in Part 1

    (b)    All other securities

Example: restricted securities at the end of the escrowed
period, partly paid securities that become fully paid, employee
incentive share securities when restriction ends, securities
issued on expiry or conversion of convertible securities

    Entities that have Ticked Box 34(a)

    Additional Securities Forming a New Class of Securities
    (If the additional securities do not form a new class, go to
43)

    Tick to indicate you are providing the information or
documents

35.    The names of the 20 largest holders of the additional
         securities, and the number and percentage of
         additional securities held by those holders

36.    A distribution schedule of the additional securities
         setting out the number of holders in the categories
         1 - 1,000
         1,001 - 5,000
         5,001 - 10,000
         10,001 - 100,000
         100,001 - and over

37.    A copy of any trust deed for the additional securities
(now go to 43)

    Entities that have Ticked Box 34 (b)

    Items 38 to 42 are Not Applicable

ALL ENTITIES

Fees

43. Payment method (tick one)

Cheque attached

Electronic payment made

Note: Payment may be made electronically if Appendix 3B is given
to ASX electronically at the same time.

Periodic payment as agreed with the home branch has been
arranged

Note: Arrangements can be made for employee incentive schemes
that involve frequent issues of securities.


SOUTHERN AUSTRALIA: Wind Up Implemented
---------------------------------------
The Supreme Court of South Australia ordered the winding up of
The Southern Australia Shipping Company Pty Ltd (SASCO) in
response to an application by the Australian Securities and
Investments Commission (ASIC) on 14 June 2001.

SASCO was incorporated in South Australia in February 1999 with
Darryl Reeves of Hallett Cove and John Webb of Kent Town as
directors.

The company became involved in raising funds with the intention
of buying a ship to conduct tours to the Antarctic.

ASIC commenced an investigation into SASCO after becoming
concerned about the fundraising and the solvency of the company.

Over $800,000 was raised from investors for the ship project in
1999 and 2000, including over $500,000 raised for investment in
SASCO by Onkourse Pty Ltd, which went into liquidation on 30
March 2001.

ASIC also alleged that SASCO incurred debts of over $120,000
with suppliers, trade creditors and employees, mainly in
connection with the setting up of a Tasmanian office in mid-2000
that was vacated several months later. SASCO disputed the amount
of debt and a director of the company has indicated the winding
up order will be appealed.

Hillary Orr, a consultant with accountancy firm Hayes Knight,
has been appointed to act as liquidator.

'ASIC was concerned that this company had become insolvent at
the same time as it was raising significant sums of money, which
posed a significant risk to investors and their funds', ASIC's
Director Enforcement, Jamie Orchard said.


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


CIL HOLDINGS: Trading Suspended
-------------------------------
At the request of CIL Holdings Limited, trading in its shares
were suspended, effective August 17, 2001 at 10:00 a.m., pending
the release of the interim results announcement for the six
months ended 31 December 2000.

TCR-AP reported earlier this month that the hearing of the
winding-up petition served by Sin Hua Bank Limited against CIL
Holdings Limited was ordered by the Justice to be further
adjourned to 20 August 2001.


FAI FIRST: Winding Up Petition Set For Hearing
----------------------------------------------
The petition to wind up Fai First Pacific Insurance Company
Limited is scheduled for hearing before the High Court of Hong
Kong on August 27, 2001 at 2:30 pm. The petition was filed with
the court on April 9, 2001 by the said company of 22nd Floor,
Dah Sing Financial Centre, 108 Gloucester Road, Wanchai, Hong
Kon.


FU HUI: Director Sun Has Resigned
---------------------------------
The board of directors of Fu Hui Holdings Limited (the Company)
announced the vice-chairman of the Company, Sun Ming resigned as
a director of the Company, effective 15 August, 2001. The
Directors express the sincere appreciation to Mr. Sun for his
past contributions to the Company.

As reported in TCR-AP August 2, the company has proposed
restructuring which will involve the subscription of new shares,
bank compromise, whitewash waiver, and change of name.

The Restructuring Proposal comprises the following key integral
parts:

   (i) the Capital Increase whereby the authorized share capital
of the Company will be increased from HK$100 million to HK$500
million divided into 5,000 million Shares of HK$0.10 each;

   (ii) the subscription of (a) 700 million Subscription Shares
by China Merit, (b) 150 million Subscription Shares by Green
Dynamics, and (c) 150 million Subscription Shares by Precious
Gold at a subscription price of HK$0.10 per Subscription Share
to raise in aggregate HK$100 million in cash; and

   (iii) the discharge, release and full settlement of (a) all
the Bank's Unsecured Loans together with any interest accrued
thereon up to Completion pursuant to the Compromise Agreement;
and (b) the Bank's Secured Loans together with any interest
accrued thereon up to Completion pursuant to the Supplemental
Compromise Agreement in the manner as detailed below.


HIH HOLDINGS: Faces Winding Up Petition
---------------------------------------
The petition to wind up HIH Holdings (Asia) Limited will be
heard before the High Court of Hong Kong on August 27, 2001 at
2:30 pm. The petition was filed with the court on the 9th day of
April 2001 by HIH Insurance (Asia) Limited (Provisional
Liquidators Appointed) of 22nd Floor, Dah Sing Financial Centre,
108 Gloucester Road, Wanchai, Hong Kong.


LEARNINGCONCEPT: Changes Company Name
-------------------------------------
Learning Concepts Holdings Limited has changed its name to
"South Sea Holding Company Limited". Accordingly, the stock
short name of its ordinary shares (stock code: 680) will also be
changed to "SOUTH SEA HOLD" effective Monday, August 20, 2001.

TCR-AP reported last month that the company proposed to change
its name to "South Sea Holding Company Limited" in order to
reflect the principal businesses of the Company including
properties development, and manufacturing and design of
educational toys.


NAM FONG INTL: To Pay HK$5M To Creditor
---------------------------------------
The new board of directors of Nam Fong International Holdings
Limited (the Company), which was constituted on 2 August, 2001,
is now actively reviewing the financial position and operations
of the Group.

Pursuant to the consent order referred to in the Company's
announcement dated 15 June 2001, the Company shall pay an
installment in the sum of HK$5 million to the creditor on or
before 15 August, 2001.

Despite efforts made by the board of directors to negotiate with
the creditor (requesting an extension of time for payment), such
efforts so far have not been successful. At this stage, the
Group does not have sufficient available funds to meet the
installment.

In this situation, the creditor is entitled to demand immediate
repayment of the whole outstanding sum plus interest in the
aggregate amount of approximately HK$16.03 million. However, the
Company is at present trying to continue negotiating with the
creditor. Further announcement will be made by the Company to
inform its shareholders and investors of any material
developments on the above proceedings.

In the event further negotiations with the creditor fail, it
will affect the normal operations of the Company and its
subsidiaries due to cash flow problems, which may lead to the
trading of the Company's shares being suspended. Shareholders
and investors should exercise extreme caution when dealing in
the shares of the Company.

Nam Fong International Holdings Limited (the "Company") on 16
July 2001 announced the Company's appointment of a new team of
directors effective 2 August, 2001. Since their appointment on 2
August 2001, the board of directors of the Company has  actively
reviewed the financial position and operations of the Company
and its subsidiaries ("Group").

The Company is making this announcement pursuant to its
obligations under paragraph 2 of the Listing Agreement. Further
announcement will be made by the Company to inform its
shareholders and investors of any material developments on the
above proceedings.

In the event further negotiations with the creditor fail, it
will affect the normal operations of the Company and its
subsidiaries due to cash flow problems, which may lead to the
trading of the Company's shares being suspended. Shareholders
and investors should exercise extreme caution when dealing in
the shares of the Company.


NORTHERN INTL: Cites No Reason For Price Increase
-------------------------------------------------
Northern International Holdings Limited says that the Company is
not aware of any reasons for any increase in its share price.

"We also confirm that there are no negotiations or agreements
relating to intended acquisitions or realizations which are
discloseable under paragraph 3 of the Listing Agreement, neither
is the Board aware of any matter discloseable under the general
obligation imposed by paragraph 2 of the Listing Agreement,
which is or may be of a price-sensitive nature," says the
Company.

The company and its subsidiaries for the year ended 31 March
2001 posted a net loss of HK$25.58 million, up from HK$22.038
million in net losses incurred in the preceding year.


PACIFIC CENTURY: Last Day Of Dealings
-------------------------------------
Market participants are requested to note that dealings in the
2001 European style cash settled call warrants relating to
issued ordinary shares of HK$0.05 each in Pacific Century
CyberWorks Limited issued by Credit Lyonnais Financial Products
(Guernsey) Limited (stock code: 2149) will cease after the close
of business on Monday, 20 August 2001 and listing of which will
be withdrawn after the close of business on Friday, 24 August
2001.


PACIFIC CENTURY: Sees No Reason For Share Price Increase
--------------------------------------------------------
The directors of the Pacific Century CyberWorks Limited (the
Company) have noted the recent increase in the price and trading
volume of the shares of the Company and wish to state that they
are not aware of any reasons for such increases.

The directors of the Company also confirm that there are no
other negotiations or agreements relating to intended
acquisitions or realizations which are discloseable under
paragraph 3 of the Listing Agreement, neither is the Board aware
of any matter which is discloseable under the general obligation
imposed by paragraph 2 of the Listing Agreement, which is nor
may be of a price-sensitive nature.

Meanwhile, the directors of the Company refer to market rumors
that China Telecom may increase its stake in the Company. In
addition to its earlier announcement to the Stock Exchange
confirming that there are no intended acquisitions or
realizations which are discloseable under paragraph 3 of the
Listing Agreement, the directors of the Company wish to further
state that they are not aware of any intention on the part of
China Telecom to increase its shareholding in the Company.


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


DAIEI INC: Fast Retailing Seeks Injunction Over Similar Designs
---------------------------------------------------------------
Fast Retailing Co Ltd filed a complaint with the Chiba District
Court against Daiei Inc. for imitating Uniqlo's, one of its
retailing stores, designs, Reuters reported Thursday.

Fast Retailing filed a temporary injunction on Thursday and
asked Daiei to change the design of its PAS casual clothing shop
in Matsudo city near Tokyo.

"The interior and exterior design of the store, the floor
arrangement, its logo, the line of products offered, the way the
products and prices are displayed, the range of prices, are all
very similar to Uniqlo," Fast Retailing's spokesperson said.

Daiei said that its 12 PAS stores were set up using their own
independently developed products, with the idea of providing
basic and simple casual clothing at an affordable price.

The PAS shops were set up under Daiei's revival plan with the
aim of boosting the debt-stricken retailer's sales by offering
specialized products in one central location within Daiei
stores.

As part of its effort to lower its Y2.56 trillion group debt,
Daiei unveiled several asset sales and a management buyout for
its Printemps Ginza department store in Tokyo.


SAWAKO CORP: Court Starts Rehabilitation Process
------------------------------------------------
The Nagoya District Court decided to begin legal rehabilitation
procedures for failed construction firm Sawako Corp., paving the
way for Softbank Investment Corp. to bail out the company, Kyodo
News reported Friday.

The Nagoya-based company looks forward to an agreement with
Softbank Investment, which has been negotiating for assistance,
at the earliest time possible.


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


DAEWOO MOTOR: Stalled Talks May Force FSC To Seek New Options
-------------------------------------------------------------
The sales negotiations for Daewoo Motor have been delayed and
will not be completed within the original time framework. If the
negotiations drag on, the Financial Supervisory Commission (FSC)
will have to come up with other proposals instead of selling the
ailing Korean company to General Motors (GM).

The FSC, however, called on creditors to come up with a prompt
settlement of the deal, Digital Chosun reported August 16,
quoting FSC chairman Lee Keun-young.


HYNIX SEMICON: S&P Downgrades Long-Term Outlook To Negative
-----------------------------------------------------------
Standard & Poor's revised the outlook on its long-term rating on
Korea-based Hynix Semiconductor Inc. (Hynix) and its subsidiary
Hynix Semiconductor Manufacturing America Inc. (HSMA) to
negative from stable.

At the same time, Standard & Poor's affirmed its single-'B'
long-term corporate credit ratings on the two companies.

The outlook revision reflects the worsening prospects for
Hynix's profitability and cash flow protection measures amid a
severe market downturn in the company's mainstay dynamic random-
access memory (DRAM) business. DRAM prices have fallen by an
unforeseen level in recent months, which is placing severe
pressure on the company's earnings generation and weakening its
financial flexibility.

In the second quarter of 2001, the company posted an operating
loss of Korean won (W) 266 billion, compared with an operating
profit of W69 billion in the first quarter of the year. EBITDA
net interest coverage for the second quarter of the year is
estimated at 1.0-1.5 times, an extremely low level.

In June 2001, Hynix successfully raised US$1.25 billion in new
equity and secured W5.627 trillion in debt rescheduling and
short-term financing arrangements from its principal bank
creditors. This allowed the company to alleviate the short-term
liquidity pressures it faced as a result of its high debt usage
and concentration of debt maturities in 2001 and 2002. However,
current harsh market conditions are once again tightening
Hynix's liquidity position, making it difficult for the company
to undertake enough capital spending to improve, or even
maintain, its technological and cost competitiveness.

The company is likely to require additional financial support
from its creditors to maintain its competitive position in the
global DRAM market while meeting its debt obligations in 2001
and 2002.

OUTLOOK: NEGATIVE

A continuation of adverse conditions in the DRAM market would be
likely to have an adverse effect on the company's credit
standing and financial flexibility. The ratings on Hynix will be
lowered if the company's competitive position is eroded. Failure
to restore some degree of financial flexibility through
additional financing and/or a lengthening of the average debt
maturity schedule will also lead to a downgrade of the company.


HYUNDAI MERCHANT: Cruise Tour Incurs W52B H1 2001 Losses
--------------------------------------------------------
Hyundai Merchant Marine Company's North Korean cruise tour
operation, which was launched in November 1998, incurred
operating losses of W52 billion ($1=KRW1,283.2) in the first
half of this year, the Asian Wall Street Journal reported on
August 16, 2001, which quoted the company spokesman S.K.
Kang.

The tour, which visits North Korea's once-forbidden Mt. Kumgang,
has incurred operating losses in the amount of W156 billion
since January 1999, W46 billion losses in 1999 and W58 billion
last year.


KOOKMIN BANK: Cutting 3.4% Staff Via Retirement Program
------------------------------------------------------
Kookmin Bank will cut staff by 381 workers, 3.4 percent of its
11,044 employees, through an early retirement program as part of
its restructuring efforts, Asian Wall Street Journal reported
Friday referring to spokesperson Choi In-seok.

Last year, the bank cut 330 employees through the retirement
program. Employees who volunteered to retire received the usual
severance pay plus two years of salary.

Choi refused to comment on whether the bank would cut more staff
before it finishes its proposed merger with the mortgage
specialist Housing Commercial Bank (HCB).

H&CB Chief Executive Kim Jung-tae, however, said the new bank -
to be called Kookmin Bank - will likely cut staff.


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


ARAB-MALAYSIAN CORP: CIMB Announces RO Withdrawal
-------------------------------------------------
Commerce International Merchant Bankers Berhad announced, on
behalf of the Board of Directors of Aram-Malaysian Corporation
Berhad (AMCORP) that the restraining order (RO) which was
granted on 16 July 1998 by the High Court of Malaya (Court)
under section 176(10) of the Companies Act, 1965 in respect to
Amcorp and certain of its subsidiaries was withdrawn by the
Order of the Court dated 16 August 2001.

Background

The AMCORP Group is principally involved in financial services,
manufacturing, industrial activities, property, and textiles and
garments.

Between 1910 and 1990, AMCORP was in the rubber, oil palm and
cocoa plantation businesses. In 1990, the Company disposed of
all its plantation businesses to its then subsidiary, Seatex
Plantation, and transferred its mezzanine investment and
management services operation to another subsidiary, Mezzanine
Capital.

In 1992, AMCORP acquired AMMB Holdings Bhd, Arab-Malaysian
Development Bhd and Nam Fatt Bhd and disposed of three of its
estates, which significantly changed the nature of the Group's
business.

Property development was carried out by Arab-Malaysian
Corporation Builders Sdn Bhd with AMCORP Trade Center as its
prominent landmark. Its 25 percent stake in Nam Fatt was
divested in 1994 in exchange for stakes in Len Brothers Rubber
Products Industries Bhd, Rediffusion Bhd and South Peninsular
Industries Bhd.

In July 1998, AMCORP and certain of its subsidiaries obtained a
Restraining Order under Section 176 of the Companies Act, 1965,
to implement a Composite Scheme of arrangement which was
formulated to enable an orderly disposal of its assets so as to
ensure full repayment of its borrowings.

The Company is in the process of disposing of up to 68,206,855
shares in AMMB Holdings Bhd (AHB) representing 17.1 percent of
its equity interest in AHB.

Currently, Amcorp has completed the implementation of the
Composite Scheme.


AUTOWAYS HOLDINGS: Enters MOU With Selayang Budi
------------------------------------------------
On behalf of the Board of Directors of Autoways Holdings Berhad
(AHB), Arab-Malaysian Merchant Bank Berhad (Arab-Malaysian)
wishes to announce that AHB entered into a Memorandum of
Understanding ("MOU") on 13 August 2001 with Selayang Budi Sdn
Bhd ("SBSB").

The MOU sets forth the general understanding reached between AHB
and the shareholders of SBSB in relation to the proposed
acquisition of SBSB by AHB ("Proposed Acquisition") as part of
the proposal to restructure and regularize the financial
position of AHB.

SALIENT TERMS OF THE MOU

Proposed acquisition by SBSB

Pursuant to the MOU entered into on 13 August 2001, SBSB intends
to acquire the entire issued and paid up share capital of the
following companies:-

     (a) S.G.G. Industries Sdn Bhd ("SGGI");

     (b) S.G.G. Furniture Marketing Sdn Bhd ("SGGM");

     (c) Global Chairs System Marketing Sdn Bhd ("GCSM");

     (d) American Home Furnishing Sdn Bhd ("AHF"); and

     (e) MP-Metal Furnishing and Design Sdn Bhd ("MMFD").

     (Collectively referred to herein as the "Intended
Subsidiaries")

Background information on the Intended Subsidiaries are set out
in Section 4 below.

Proposed Restructuring Scheme

Pursuant to the MOU, AHB agrees with SBSB that it shall
endeavour to finalise a restructuring scheme within a period of
60 days from the date of the MOU or such other period as the
parties may agree upon, which may involve the following:-

    (a) A proposed reduction in the capital of AHB via the
cancellation of a proportion of the value of each share in AHB
which is not represented by assets.

The proposed capital reduction shall involve the cancellation of
not less than eighty per cent (80 percent) of the par value from
every existing ordinary share in AHB and the consolidation of
the same into ordinary shares of RM1.00 each
("Shares")("Proposed Capital Reduction and Consolidation").

AHB may also issue not more than one (1) free warrant for every
existing Share subsequent to the Proposed Capital Reduction and
Consolidation;

    (b) A proposed issue of new ordinary shares of RM1.00 each
in AHB to one or more bumiputra investor(s) approved by the
Ministry of International Trade and Industries ("MITI").

   The abovementioned issue shall involve the issue of not more
than 30,000,000 but not less than 20,000,000 new AHB shares of
RM1.00 each to approved bumiputera investors ("Proposed Bumi
Issue");

    (c) A proposed scheme of arrangement and compromise with the
creditors of AHB pursuant to Section 176 of the Companies Act,
1965

     The proposed scheme of arrangement and compromise shall
involve the issue of debt securities and/or preference shares to
all creditor under the scheme of arrangement and compromise the
nominal value of which shall not exceed RM60,000,000
(collectively referred to as the "Repayment Securities") subject
to the following parameters:-

          i) the Repayment Securities representing a nominal
value of RM15,000,000 shall be redeemable provided that such
redemption shall be over a period of five years from the date of
the issue of the same and in equal proportions for each of the
five years;

          ii) the Repayment Securities representing a nominal
value of not more than RM20,000,000 shall be convertible at any
time within a period of 5 years from the date of the issue of
the same; and

          iii) the Repayment Securities shall be transferable.
         (referred to herein as the Proposed Scheme of
Arrangement and Compromise")

     (d) A proposed disposal of Autoways Development Sdn Bhd, a
wholly subsidiary of AHB, for a total consideration of RM2.00.
(Collectively referred to herein as the "Proposed Restructuring
Scheme")

The above terms are subject to change, including and in
particular, the terms of the Proposed Scheme of Arrangement and
Compromise, which is subject to the agreement with the creditors
of AHB.

Conditions Precedent for the proposed acquisition of SBSB by AHB

Upon finalizing the Proposed Restructuring Scheme within the
parameters set out in Section 2.2 above and AHB obtaining a
further Restraining Order from the High Court of Kuala Lumpur,
the shareholders of SBSB shall agree to enter into a sale and
purchase agreement to formalize the terms of the MOU.

The obligation of AHB to complete the said sale and purchase
agreement is, amongst others, subject to the following
conditions:

     (a) the approval of the Securities Commission ("SC") and
any other relevant authorities for the Proposed Restructuring
Scheme. The approval of the SC is also required for a waiver
from undertaking the obligation pursuant to the Malaysian Code
on Take-overs and Mergers, 1998 for the vendors pursuant to the
Proposed Acquisition;

     (b) the approval in principle of the Kuala Lumpur Stock
Exchange ("KLSE") for the :

          i) listing and quotation of the AHB Shares issued as
consideration for the acquisition of the Intended Subsidiaries,
the Repayment Securities and the Bumi Issue Shares on the
official list of the KLSE;

          ii) resumed trading of AHB Shares;

     (c) the approval of :

          i) each class of creditors of AHB; and

          ii) the Court of Malaya

in respect of the Proposed Scheme of Arrangement and Compromise
in accordance with Section 176 of the Companies Act, 1965
("Act")

     (d) the approval of the Court of Malaya for the proposed
capital reduction in respect of Section 64 of the Act;

     (e) the approval of the shareholders of AHB for the
Proposed Restructuring Scheme;

     (f) the lifting of the Restraining Orders and Suspension;

     (g) SBSB completing the acquisition of the Intended
Subsidiaries, in particular, SBSB being the legal and beneficial
owner of the entire issued and paid share capital in the
Intended Subsidiaries, free from all charges, liens, pledges,
trusts and other encumbrances, with all rights, benefits and
entitlements attached thereto.

(collectively referred to herein as "Conditions Precedent")

The Conditions Precedent are to be satisfied within a period of
9 months from the date of the sale and purchase agreement, which
is to be entered into.

The Proposed Acquisition requires the approval of the SC,
Foreign Investment Committee, the MITI and shareholders of AHB
at an extraordinary meeting to be convened.

Consideration

The consideration for the acquisition of the Intended
Subsidiaries by AHB shall be a sum of RM72,000,000 which shall
be wholly satisfied by the issue of 72,000,000 new AHB Shares
("Consideration Shares"), at an issue price of RM1.00 each.

The vendors of the Intended Subsidiaries shall jointly and
severally covenant with and guarantee to AHB that the Company
shall have a net profit after tax of not less than RM9,000,000
("Guaranteed Profit") for each of the three (3) financial years
ending 2002, 2003 and 2004.

The consideration represents a price earnings multiple of 8
times based on the guaranteed profit of RM9,000,000.

AHB shares prior to its trading suspension from the KLSE were
RM1.29.

BACKGROUND INFORMATION ON SBSB

SBSB was incorporated on 6 January 2000. Its principal activity
is of trading and investment holding.

The present authorized and issued and paid-capital of the
company is RM100,000 and RM2, respectively. The two
shareholders, who are also the company's directors are, Prabir
Kumar Mittra and Hirda binti Mustaffa Albakri.

BACKGROUND INFORMATION ON INTENDED SUBSIDIARIES

Background Information on SGGI (217501-P)

SGGI was incorporated on 21 May 1991. Its principal activity is
the manufacturing and assembling of all types of furniture.
The present authorized share capital of SGGI is RM500,000
comprising 500,000 ordinary shares of RM1.00 each, of which
325,000 ordinary shares of RM1.00 each have been issued and are
fully paid-up.

The Directors of SGGI are Tay Weih Tong and See Siaw Eng @ See
Siew Eng who are also the shareholders of SGGI, each holding
61.5 percent and 38.5 percent equity interest in SGGI
respectively.

For the financial period ended 30 June 2000, SGGI has recorded a
profit after tax of RM1.1 million.

Background Information on SGGM (216142-H)

SGGM was incorporated in Malaysia under the Companies Act, 1965
as a private limited company on 26 April 19991. SGGM's principal
activity is the marketing and export of furniture.

The present authorized share capital of SGGM is RM5,000,000
comprising 5,000,000 ordinary shares of RM1.00 each, of which
2,000,000 ordinary shares of RM1.00 have been issued and are
fully paid-up.

The Directors of SGGM are Tay Weih Tong and See Siaw Eng @ See
Siew Eng who are also the shareholders of SGGI, each holding
68.0 percent and 32.0 percent equity interest in SGGM
respectively.

For the financial period ended 30 June 2000, SGGM has recorded a
profit after tax of RM0.68 million.

Background Information on GCSM (440859-D)

GCSM was incorporated in Malaysia under the Companies Act, 1965
as a private limited company on 31 July 1997. GCSM's principal
activity is the marketing of furniture.

The present authorized share capital of GCSM is RM500,000
comprising 500,000 ordinary shares of RM1.00 each, of which
301,002 ordinary shares of RM1.00 each have been issued and are
fully paid-up.

The Directors of GCSM are Tay Weih Tong and See Siaw Eng @ See
Siew Eng who are also the shareholders of GCSM, each holding
83.1 percent and 16.9 percent equity interest in GCSM
respectively.

For the financial period ended 30 June 2000, GCSM has recorded a
profit after tax of RM0.74 million.

Background Information on AHF (492890-X)

AHF was incorporated in Malaysia under the Companies Act, 1965
as a private limited company on 1 September 1999. AHF's
principal activity is the manufacturing and dealers in furniture
and furnishing.

The present authorized capital of AHF is RM500,000 comprising
500,000 ordinary shares of RM1.00 each of which 250,000 ordinary
shares of RM1.00 each have been issued and are fully paid-up.

The Directors of AHF are Fuziah Binti Abd Ghani, Mohamed @
Ismail bin Aziz, Lim Koon Suan and Wong Siew Foong who are also
the shareholders of AHF, each holding 40.0 percent, 20.0
percent, 13.3 percent and 26.7 percent equity interest in AHF,
respectively.

The audited financial result of AHF is not available to-date.

Background Information on MMFD (529831-U)

MMFD was incorporated in Malaysia under the Companies Act, 1965
as a private limited company on 24 October 2000. MMFD's
principal activities are the manufacturing, designing and
marketing of metal and garden furniture.

The present authorized share capital of MMFD is RM1,000,000
comprising 1,000,000 ordinary shares of RM1.00 each of which
500,000 ordinary shares of RM1.00 each have been issued and are
fully paid-up.

The Directors of MMFD are Lok Mam Yu, Lok Ming Chee and Lim Chee
Choong who are also the shareholders of MMFD, each holding 65.0
percent, 25.0 percent and 10.0 percent equity interest in MMFD
respectively.

The audited financial result of MMFD is not available to-date.

DIRECTORS AND SUBSTANTIAL SHAREHOLDERS' INTEREST

No Directors or substantial shareholders or persons connected to
the Directors and/or substantial shareholders of AHB have any
other interest, direct or indirect, in the Proposed Acquisition.

APPOINTMENT OF ADVISORS

Arab-Malaysian has been appointed as the Advisor for the
Proposed Acquisition and the Proposed Restructuring Scheme.

SUBMISSION TO THE SC

The submission to the SC with respect to the Proposed
Acquisition will be made within three (3) months from the date
of the signing of obtaining creditors approval for the Proposed
Restructuring Scheme.

FULL ANNOUNCEMENT

A detailed announcement will be made upon finalizing of Proposed
Restructuring Scheme and the execution of the agreement.


DATAPREP HOLDINGS: SC Grants VXL Take-over Shares Waiver
--------------------------------------------------------
Arab-Malaysian Merchant Bank Berhad, on behalf of Dataprep
Holdings Bhd, announced that the Securities Commission (SC)
approved the appeal by VXL Holdings Sdn Bhd for a waiver from
the obligation to undertake a mandatory take-over offer for the
remaining shares in Dataprep arising as a consequence of the
increase in its shareholding in Dataprep upon the conversion of
Irredeemable Convertible Unsecured Loan Stocks (ICULS) and
exercise of Warrants held by them.

The SC's approval is subject to the following conditions:

     (i) VXL is required to obtain the approval from the
independent shareholders of Dataprep and comply with the "white-
wash" procedures as provided under Paragraph 5(b)(i)-(iv),
Practice Note 2.9.1 of the Malaysian Code on Take-overs and
Mergers 1998. The approval from the independent shareholders, if
obtained, is valid for the tenure of the ICULS/Warrants;

     (ii) Dataprep is not allowed to implement any corporate
proposals which will result in a change in the shareholding of
VXL in Dataprep prior to the conversion/exercise of
ICULS/Warrants by VXL whereby such conversion/exercise will give
rise to a mandatory take-over offer obligation by VXL;

     (iii) VXL is not allowed to trade in any
shares/Warrants/ICULS of Dataprep, for the tenure of the
ICULS/Warrants. However, VXL can dispose of/convert/exercise the
shares/ICULS/Warrants held by them pursuant to the Proposed
Restructuring Scheme;

     (iv) Should the conversion/exercise of Warrants/ICULS
increase the equity shareholding of VXL in Dataprep to a level
which requires a mandatory offer by VXL, VXL and Arab-Malaysian
are required to inform the SC of such the transaction and
confirm that all the conditions for the SC's approval have been
fulfilled. VXL/Arab-Malaysian is also required to make an
announcement of the transaction to the shareholders of Dataprep;
and

     (v) Should VXL dispose of/convert/exercise the
ICULS/Warrants held by them to a level whereby the waiver for
the mandatory take-over offer obligation is no longer required,
VXL/Arab-Malaysian is required to make an announcement to the
shareholders of Dataprep.

VXL has confirmed their acceptance of the above conditions via
their letter dated 15 August 2001 addressed to the Company.


GLOBAL CARRIERS: To Acquire Vessels After Workout Scheme
--------------------------------------------------------
Global Carriers Berhad (GCB or the Company) intends to acquire
six used product tankers and one new product tanker with
capacities of 7,000 deadweight tons each.

These vessels, costing approximately RM130 million, shall be
acquired over a period of 5 years after completion of GCB's
Proposed Revised Debt Restructuring Scheme.

These vessels are expected to contribute another RM50 million to
the GCB Group's annual turnover. The Group achieved a turnover
of RM108 million during its financial year ended 31 December
2000. Whilst turnover is forecast to increase to about RM160
million based on the increased fleet size, the impact of the
increase will only take effect from the 6th year onwards i.e.
after all of the 7 acquired vessels are fully in operations.

The forecasts, including their basis and assumptions, have been
reviewed by the reporting accountants for purposes of submission
to the SC.

Details of the Proposed Debt Restructuring Scheme, including
details of the acquisitions, shall be disclosed in a circular to
be sent out in due course to the shareholders of the Company.

In respect of long-term opportunities mentioned in the Web Page,
we wish to clarify that the Company presently does not have any
arrangements to venture into related fields, including the oil
and gas industry. It was for this reason that our Executive
Chairman, Dato' Dr. Mohamad bin Hashim, did not elaborate.

Nonetheless, GCB is always seeking viable business ventures,
particularly those related to its core business of shipping,
which may arise over the future years, in the interests of the
Company. Such intentions shall be disclosed in full and in
timely manner to its shareholders and the relevant authorities,
and if necessary, their approvals be sought.


RENONG BERHAD: Taraf Loses Interest In 21.56% Stakes Acquisition
----------------------------------------------------------------
Time Engineering Berhad informed the Kuala Lumpur Stock Exchange
that Taraf Perdana Sdn Bhd has indicated it does not wish to
proceed with the purchase of 500,962,110 ordinary shares RM0.50
each representing 21.56% equity interest in Renong Berhad. Since
the time period for fulfillment of the conditions precedent
defined in the agreement has lapsed, the parties have mutually
agreed to a termination of the agreement.


SOUTH PENINSULAR: Court Withdraws Restraining Order
----------------------------------------------------
South Peninsular Industries Berhad (SPI or the Company)
announced that the restraining order which was granted on 16
July 1998 by the High Court of Malaya (Court) under section
176(10) of the Companies Act, 1965 in respect of the Company and
certain of its subsidiaries was withdrawn by the Order of the
Court dated 16 August 2001.

Background

The South Peninsular (SPI) Group of Companies is principally
engaged in the manufacture of injection molded plastic parts and
components and metal-based products. Its products are supplied
to MNCs and OEMs and production facilities are located in Batu
Pahat, Johor.

It is also involved in property development, investment,
financial services, education and management services.

On July 16, 1998, the Company and three of its subsidiaries
(Scheme Companies) obtained a restraining order under Section
176 of the Companies Act 1965 for the purpose of implementing a
proposed composite scheme of arrangement. The proposal entails
the full repayment of principal and accrued interest on
outstanding debts via the issue of shares in Arab-Malaysian
Corporation Bhd, SPI's ultimate holding company.

The proposal has been revised to incorporate creditors' feedback
as well as to comply with guidelines. Creditors approved the
proposal at court convened meetings on January 31, 2000.

The scheme was approved by the SC on August 28, 2000 and
sanctioned by the High Court of Malaya on 14.12.2000. The scheme
is, as at March 2001, pending implementation.


TAJO BERHAD: Explains Defaulted Payments
----------------------------------------
Tajo Berhad (Tajo) released the details of all the facilities
currently in default by Tajo and its subsidiaries:

A) REASON FOR DEFAULT IN PAYMENT

Due to the slowdown in the regional economy in general and the
construction and building industry specifically following the
financial crisis in late 1997, the cash flow generated from
operations was not sufficient to service the interest and
principal obligations to the lenders as and when they fell due.

B) MEASURES BY THE LISTED ISSUER TO ADDRESS THE DEFAULT IN
PAYMENTS

On the 27 September 1999, Alliance announced a Proposed Scheme
of Arrangement pursuant to Section 176 (1) of the Companies Act
1965. A series of Announcements have been made following the
first announcement, based on the revisions and updates that have
developed since the first announcement.

An announcement was made on 11 May 2001 by Alliance Merchant
Bank Berhad (Alliance) stating that the Securities Commission
("SC") in its letter dated 4 May 2001 advised Tajo to review its
Proposed Scheme of Arrangement and to resubmit a more concrete
scheme for its consideration.

On 3 August 2001, Alliance on behalf of Tajo announced that the
KLSE vide its letter dated 2 August 2001 has approved an
extension of five (5) months from 11 May 2001 to 10 October 2001
to enable Tajo to make a re-submission of its regularization
plan to the relevant authorities for approval.

Tajo is currently taking steps to address certain issues before
submitting a more concrete and updated scheme for SC's
consideration.

C) FINANCIAL AND LEGAL IMPLICATIONS IN RESPECT TO THE DEFAULT IN
PAYMENTS INCLUDING THE EXTENT OF THE LISTED ISSUER'S LIABILITY
IN RESPECT TO THE OBLIGATIONS INCURRED UNDER THE AGREEMENTS FOR
THE INDEBTEDNESS

The total outstanding as at 31 July 2001, in relation to the
payments which are in default and are the subject matter of the
restructuring scheme is RM198,741,042.

Since Tajo is either the principal borrower or the guarantor for
these loans, Tajo is liable for the full amount and any further
interest and financial cost levied there or until the settlement
of these debts.

D) IN THE EVENT THE DEFAULT IS IN RESPECT TO SECURED LOAN STOCKS
OR BONDS, THE LINES OF ACTION AVAILABLE TO THE GUARANTORS OR
SECURITY HOLDERS AGAINST THE LISTED ISSUER

Tajo's bonds were unsecured.

E) IN THE EVENT THE DEFAULT IS IN RESPECT TO PAYMENTS UNDER A
DEBENTURE, TO SPECIFY WHETHER THE DEFAULT WILL EMPOWER THE
DEBENTURE HOLDER TO APPOINT A RECEIVER OR RECEIVER AND MANAGER

As a debenture holder pursuant to the secured loans made by MAA
to Tajo, MAA is empowered to appoint a receiver or receiver and
manager.

F) WHETHER THE DEFAULT IN PAYMENT CONSTITUTES AN EVENT OF
DEFAULT UNDER A DIFFERENT AGREEMENT FOR INDEBTEDNESS (CROSS
DEFAULT) AND THE DETAILS THEREOF, WHERE APPLICABLE; AND

The facilities listed above represent all the borrowings of the
Tajo Group, and as a result of the Proposed Scheme of
Arrangement "have not been serviced" (interest and principal)
since December 1998. As such they are all technically in
default.

The creditors have however refrained from serious legal action
other than those, which have been disclosed in our Annual Report
and Circulars as well as Announcements, since they have voted
unanimously in favor of the Proposed Scheme of Arrangement,
which is currently under review by the authorities.

Table 1

Lender          Principal    Estimated   Principal &      Notes
                             Interest    Interest as at
                   RM          RM        31/7/2001
                                           RM
Secured

Tajo Berhad

a) Malayan Banking Berhad

           33,660,000   8,797,126   42,457,126  Second charge
                                                on land &
                                                building Note 1)
Resolute Omega

a) Malaysian Assurance
Alliance Berhad

          18,500,000    6,647,243   25,147,243  1st charge
                                                land & building
                                                (Note 2)
Tajo Project Management

a) Malaysian Assurance
Alliance Berhad

         11,624,514     5,942,181   17,566,695  1st charge
                                                land & building
                                                (Note 2)
Accentuate Development

a) Arab Malaysian Bank Berhad

         21,500,000     8,465,152   29,965,152  Land (Note 3)

Unsecured

Tajo Berhad

a) Pengurusan Danaharta

                 5,000,000     1,541,166   6,541,166   Unsecured

b) Bumiputra Commerce Bank

                 1,900,000     711,763     2,611,763   Unsecured
c) BSN Merchant Bank
                 5,000,000     1,598,652   6,598,652   Unsecured
d) Danaharta Managers
                 9,115,483     3,300,528   12,416,011  Unsecured
e) Hongkong Bank
                 2,573,429     477,993     3,051,422   Unsecured
f) Pacific Bank
                 218,215       41,401      259,616     Unsecured

g) Arab Malaysian Bank
                 3,000,000     1,205,644  4,205,644    Unsecured
Tajo Project Management

a) Danaharta Managers

                21,658,749     8,552,568  30,211,317  Unsecured

b) Phileo Allied Bank

                181,953  38,924   220,877    Unsecured

Able Shipping

a) MAA Credit

              7,000,000       3,294,368   10,294,368   Unsecured

b) Aseambankers

              2,090,000     -        2,090,000   Unsecured

Alpha Glow

a) Hongkong Bank

              982,449       180,201      1,162,650   Unsecured


b) Arab Malaysian Finance

              3,219,249     722,091      3,941,340    Charge on
                                                      Machinery

* Note 1: secured by way of a third party second legal charge
against the 104.52 acres of freehold land, held under Lot Nos.
194, 223 - 225 (both inclusive), 958, 1124, 1130 - 1133 (both
inclusive), 1238, 1312 and ML0206, Mukim of Bukit Kepong,
District of Muar, Johor on land belonging to Tajo Bricks
Industries Sdn Bhd together with the factory situated thereon
and a first party second legal charge on 64.13 acres of freehold
land held under Lot Nos. PTD 7273 - 7275 (inclusive) and 11796,
Mukim of Sedenak, District of Johor Bahru and Lot No. 9381,
Mukim of Sri Medan (XVIII), District of Batu Pahat belonging to
Tajo.

* Note 2: by way of a third party first legal charge against the
104.52 acres of freehold land, held under Lot Nos. 194, 223 -
225 (both inclusive), 958, 1124, 1130 - 1133 (both inclusive),
1238, 1312 and ML0206, Mukim of Bukit Kepong, District of Muar,
Johor on land belonging to Tajo Bricks Industries Sdn Bhd
together with the factory situated thereon and a first party
first legal charge on 64.13 acres of freehold land under Lot
Nos. PTD 7273 - 7275 (inclusive) and 11796, Mukim of Sedenak,
District of Johor Bahru and Lot No. 9381, Mukim of Sri Medan
(XVIII), District of Batu Pahat, Johor belonging to Tajo. The
usage of the abovementioned lands is to site the brick
manufacturing plants of Tajo and clay reserves of Tajo.

* Note 3: secured by way of a first party legal charge against
the 5.7 acres of freehold land in Damansara Heights, Kuala
Lumpur, held under H.S. (D) 85212 - 85215 (including) PT Nos.
4210, 4211, 4212 and 4213 in the Mukim of Kuala Lumpur, Wilayah
Persekutuan belonging to Accentuate Development Sdn Bhd.

On 13 November 1998, Tajo announced a default in payment of
interest by its subsidiary Tajo Project Management Sdn Bhd (TPM)
pursuant to Practice Note 2/98.

Subsequent to that, several other announcements were made
relating to defaults in payment of interest and principal by
Tajo and its subsidiaries.

On 28 December 1998, Tajo further announced the appointment of
Messrs. PricewaterhouseCoopers as its financial advisors for the
restructuring of the Tajo Group.

On 8 October 1999, Alliance announced on behalf of the Board of
Directors of Tajo that it has obtained a Order from the High
Court of Malaya ("High Court") for Tajo to convene for its
creditors, as defined by the Proposed Scheme of Arrangement, a
Court Convened Meeting pursuant to Section 176 (1) of the
Companies Act 1965.

Tajo has made regular and timely announcements on the progress
of its restructuring scheme and Proposed Scheme of Arrangement
and continues to do so, on a monthly basis in compliance with
Practice Note 4/2001 since it was announced on 23 February 2001
that Tajo is considered as an "affected listed issuer".


TAI WAH: SC Approves Revisions On Proposed Workout Scheme
---------------------------------------------------------
Tai Wah Garments Manufacturing Berhad (TWGB or the Company)
announced that the Securities Commission (SC), vide its letter
dated 14 August 2001, approved the proposed exemption to Dato'
Jaffar bin Ahmad Indot, Alafas Sdn Bhd (ASB), Shamshuddhuha bin
Ishak, Real Platinum Sdn Bhd (RPSB), Rusli bin Tambi, Koh Ten
Kee and Koh Chee Ken (collectively known as the parties acting
in concert) from having to undertake a mandatory offer for the
remaining shares not owned by them under practice note 2.9.3 of
the Malaysian Code on Takeovers and Mergers, 1998.

Dato' Jaffar bin Ahmad Indot and ASB will collectively hold 20.3
percent equity interest in TWGB pursuant to the proposed special
bumiputera issue after the Proposed Restructuring Scheme. RPSB
which comprises the TWGB Group management team, namely Rusli bin
Tambi, Koh Ten Kee and Koh Chee Ken, will collectively hold 31.7
percent equity interest in TWGB pursuant to the proposed special
issue to TWGB Group management team. The above parties will
collectively hold 52 percent equity interest in TWGB after the
Proposed Restructuring Scheme Pursuant to Section 176 of the
Companies Act, 1965.


WEMBLEY INDUSTRIES:  Explains RM3.778M Variance Loss
----------------------------------------------------
Wembley Industries Holdings Berhad said the variance between the
unaudited and the audited consolidated loss after taxation was
mainly due to the underprovision of the taxation charge of
RM3.788 million in the prior years.

The Company refers to the Exchange's letter dated 13 August 2001
on the variance of RM3.778 million on the consolidated loss
after taxation of the Group for the year ended 31 December 2000
between the unaudited loss after taxation of RM24.197 million
announced on 28 February 2001 and the audited loss after
taxation of RM27.975 million.


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


NATIONAL POWER: To Sell Gas Turbines to Raise PhP1.5 Billion
------------------------------------------------------------
National Power Corp. (Napocor), which is soon to be privatized,
plans to sell at least six gas turbines to raise around P1.5
billion (around $30 million), ABS CBN News reports Friday citing
Finance secretary Jose Isidro Camacho.

The purpose of the sale is to reduce borrowings for an estimated
$530-million financing requirement for the rest of 2001.

"The government has agreed to borrow up to 60 percent of
Napocor's financing requirement," Camacho said.

Napocor's financing requirement for the year was as much as $350
million as earlier reported, but Camacho said the amount needed
was actually more than half a billion dollars.


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


CAPITALAND LIMITED: Issues Changes In Substantial Shareholder
----------------------------------------------------------------
Capitaland Limited posted a notice of changes in substantial
shareholder Temasek Holdings Ltd's deemed interests as follows:

Date of notice to company:           15 August 2001
Date of change of interest:          10 Aug 2001
Name of registered holder:           CDP: OUB Asset Management

Circumstance giving rise to the change: Sales in open market at
own discretion

Shares held in the name of registered holder
No. of shares of the change:            119,000
percent of issued share capital:              0.005

Amount of consideration per share
excluding brokerage, GST, stamp
duties, clearing fee:                   $2.0567
No. of shares held before change:       -
% of issued share capital:              -
No. of shares held after change:        -
% of issued share capital:              -

Holdings of Substantial Shareholder
including direct and deemed interest   Deemed           Direct
No. of shares held before change:      1,597,328,771    0
% of issued share capital:             63.45            0
No. of shares held after change:       1,597,209,771    0
% of issued share capital:             63.45            0

Total shares:                          1,597,209,771


CAPITALAND LIMITED: Posts Shareholder Changes Deemed Interest
-------------------------------------------------------------
Capitaland Limited made a notice of changes in substantial
shareholder's deemed interests as follows:

Substantial shareholder: Singapore Technologies Holdings Pte Ltd

Date of notice to company:  15 Aug 2001
Date of change of interest: 10 Aug 2001
Name of registered holder:  CDP : Singapore Technologies
Aerospace Ltd

Circumstance giving rise to the change: Sales in open market at
own discretion

Shares held in the name of registered holder
No. of shares of the change:    57,000
% of issued share capital:      0.002
Amount of consideration
per share excluding
brokerage,GST,stamp
duties,clearing fee:           $2.0567
No. of shares held
before change:                 57,000
% of issued share capital:      0.002
No. of shares held after change: 0
% of issued share capital:   0

Holdings of Substantial Shareholder including direct and deemed
interest
                                  Deemed          Direct

No. of shares held before change: 1,526,605,771   0
% of issued share capital:        60.64           0
No. of shares held after change:  1,526,548,771   0
% of issued share capital:        60.64           0
Total shares:                     1,526,548,771   0


KEPPEL CAPITAL: Publicly Discloses Dealings By Associates
---------------------------------------------------------
Pursuant to Rule 30(1) of the Singapore Code of Take-overs and
Mergers, Chase Manhattan (S.E.A.) Limited (CMSEAL) reported the
following dealings in the shares of Oversea-Chinese Banking
Corporation Limited (OCBC) on 15 August 2001 made by J.P. Morgan
Whitefriars Inc.(JPMWI), an affiliate of CMSEAL.

Underlying Shares:

Trade date   Entity    Sell   % of issued    Price per share
                                share capital    High   Low
                                  of OCBC

8/15/2001     JPMWI     60,000     0.00%         11.1    -

CMSEAL is the financial adviser to Keppel Capital Holdings Ltd
in connection with the voluntary cash offer by Oversea-Chinese
Banking Corporation Limited


L&M GROUP: Appoints Director/Audit Committee Member
---------------------------------------------------
L & M Group Investments Ltd announced the appointment of Lee
Khoon Choy as director/Audit Committee member.

Name: Lee Khoon Choy
Age: 77
Country of principal residence: Singapore

Whether appointment is executive, and if so, the area of
responsibility: non-executive

Working experience and occupation(s) during the past 10 years:
Eng Lee Investment Consultants Pte Ltd, Chairman, 1990-Present
Sin Soon Huat Ltd, Chairman Metro Holdings Ltd, Director
Koh Brothers Ltd, Director

Other directorships

Past:

None

Present:

Eng Lee Investment Consultants Pte Ltd
Eng Lee Holdings Pte Ltd
Sin Soon Huat Ltd
Metro Holdings Ltd
Koh Brothers Ltd
Shareholding in the listed issuer and its subsidiaries: Nil

Family relationship with any director and/or substantial
shareholder of the listed issuer or of any of its principal
subsidiaries: None

Conflict of interest: None

Declaration by a Director, Executive Officer or Controlling
Shareholder as Required ( Per Appendix 15): Answere all "No" to
the questions.


L & M GROUP: Appoints Director/ Audit Committee Member
------------------------------------------------------
L&M Group Investments Ltd announced the appointment of Tay Yew
Beng Peter as director/Audit Committee member.

Date of appointment: 08 Aug 2001

Name: Tay Yew Beng Peter

Age: 49

Country of principal residence: Singapore

Whether appointment is executive, and if so, the area of
responsibility:
non-executive

Working experience and occupation(s) during the past 10 years:

TPS Corporate Secretarial & Management Services Pte Ltd,
Managing Director &
Secretary, April 1988-Present

Seaunion Holdings Limited (Hong Kong 0076), Executive Director,
1995-1996

PT Bhuwanatala Indah Permai, Tbk (Indonesia), Commissioner,
1996-2001

Auric Pacific Group Limited, Executive Vice-President (Corporate
Secretariat) & Company Secretary, February 2000-August 2001;

Group Business Development, August 2001-Present

Auric Technology Holdings Pte Ltd, Executive Director, August
2001-Present

Other directorships

Past:

AFT International Pte Ltd
Anglo-Orient Investments Pte Ltd
C F East Asia Pte Ltd
China Carrie Development & Trading Pte Ltd
Creafin & Associates Private Limited
Discreet Logic Asia-Pacific Pte Ltd
Esplanade Investments Pte Ltd
Heythings (Singapore) Pte Limited
Indo-Archipelago Tourism Development Pte Ltd
JGL Trading Pte Ltd
Jinma Global Investments Pte Ltd
Karian (Singapore) Pte Ltd
NTI Management Pte Ltd
Red Bonus Enterprises Pte Ltd
Stewards & Planners Pte Ltd
Wells Holdings Pte Ltd
X.S. Marketing Pte Ltd

Present:

Aston Shipping Pte Ltd
Auric Pacific Enterprise Pte Ltd
Auric Property Pte Ltd
Auric Pacific (International) Pte Ltd
Auric Pacific Batam Pte Ltd
Auric Asset Management Pte Ltd
Auric Technology Enterprises Pte Ltd
Auric Technology Holdings Pte Ltd
BIP Holdings International Pte Ltd
Calscan Trading Pte Ltd
Complete Shipping Services Pte Ltd
Elok Properties Pte Ltd
F.G. Wilson (Singapore) Pte Ltd
Galleria Management Pte Ltd
Goldridge Yarrow Foods Pte Ltd
Gourmet Food Pte Ltd
IPP Financial Services Holdings Ltd
Joylore Pte Ltd
Lestor Investments Pte Ltd
MACS-ECICS Insurance Brokers Pte Ltd
Pacific Century Global Holdings Pte Ltd
Seton Investments Pte Ltd
Singaruda Investments Pte Ltd
SRL Managers Pte Ltd
Sunshine Manufacturing Pte Ltd
The NUSS Business Society Alumni Association
The South-East Asia Band of Angels Network
TPS Corporate Secretarial & Management Services Pte Ltd
TPS Marketing Pte Ltd
TPS Realty Pte Ltd
TPS Secretarial & Executive Search (1999) Pte Ltd
United Spirit Investments Pte Ltd
Yiyan Properties Pte Ltd
Shareholding in the listed issuer and its subsidiaries: Nil

Family relationship with any director and/or substantial
shareholder of the listed issuer or of any of its principal
subsidiaries: None

Conflict of interest: None


PANPAC MEDIA.COM:  Director of Subsidiary Resigns
-------------------------------------------------
The board of directors of Panpac Media.Com Limited announced
that by a circular resolution of the board of directors dated 15
August 2001 of ZingAsia Pte Ltd, one of the subsidiaries of the
Company, the resignation of LTC Chong Kai Yew as a director of
ZingAsia Pte Ltd was confirmed, ratified and accepted.


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


NEP REALTY: Sells 480,000 Siam A&C Shares for Bt4.3M
----------------------------------------------------
NEP Realty and Industry Public Company Limited (NEP)'s board of
directors resolved on 21 March 2001 that 480,000 shares of Siam
A&C Company Limited held by NEP at the price of Bt9.00 per
share, totaling Bt4,320,000, be sold to Assets Insurance Company
Limited (AIC).  NEP decided to sell them to PKL, a company in
the AIC group, with the share purchase agreement between NEP
and PKL executed on August 16, 2001.

The major shareholder of both NEP and PKL is Mr. Pornsek
Kanjanajaree, who holds 23.93 percent shares in NEP and 40
percent in PKL. He is also director of both companies. As a
result, the shares purchase between NEP and PKL is taken as a
related transaction under the SET Notification Re: Rules,
Procedures and
Disclosure of Related Transactions by a Listed Company.


THAI HEAT: Incurs Bt4.511 Million 2001 Q2 Net Loss
--------------------------------------------------
Thai Heat Exchange Public Company Limited incurred a net loss of
Bt4.511 million for the second quarter this year, lower compared
to its Bt12.041 net loss for the same period last year, reported
as follows:

            Reviewed Quarterly Financial Statements
           Thai Heat Exchange Public Company Limited
                  Ending  June 30 (In thousands)

                     Quarter 2               For 6 Months
            Year      2001        2000         2001        2000

Net profit (loss) (4,511)    (12,041)      (15,004)    (20,067)
EPS (baht)        (0.21)      (0.60)        (0.70)      (1.00)


THAI MODERN: Planner's Report, Fees; Performance & Strategy
-----------------------------------------------------------
Thai Modern Plastic Industry Pcl (TMP) posts the planner's
report, current performance and strategy and planner's fees as
follows:

1. PLANNER'S REPORT

   The report provides an update on the progress of the Plan,
since the Creditor Meeting on 21 March 2001.

   The key action points and progress under the Rehabilitation
Plan are as follows:

   1.1 Specific Business Tax

      As previously informed, TMP appealed against the Revenue
Department's (RD) demand that TMP pay approximately Bt11 million
for outstanding tax, charges and penalties.

      As TMP's appeal exceeds Bt2 million, it has had to be
reconsidered by the RD before being proposed to the Tax Appeal
Panel for further consideration.  Region 5 of the RD office has
reconsidered the appeal and suggested that the specific business
tax and fine may be reduced. Region 5 is currently waiting for
comments from the RD before making its final proposal to the Tax
Appeal Panel.

   1.2 Sale of the Non Core Assets

      The following is an update of the realization of non-core
assets:

      1.2.1 Land

         In June 2001 the Plan Administrator sold TMP's mini-
factory in Bangplee for Bt4.5 million.  Its agents, ERA, have
recently advised that there has been some further interest in
the other pieces of land and that they are talking with a number
of interested parties, but that as yet no further deals have
been agreed.

      1.2.2 Investment in related company

         TMP previously owned a 15 percent shareholding in
Hanwha Chemical (Thailand) Co Ltd. The original book value of
this investment in TMP's accounts was Bt14.2 million, but was
written this down to zero when the company went into
rehabilitation.

         Hanwah's audited and unaudited accounts to 31 December
1999 and 2000 respectively showed the company had net current
liabilities of Bt(103) million and Bt(357) million respectively.

         In June 2001 the company accepted and received the
proceeds of an offer of Bt4 million for TMP's shareholding.
The amount represents 28 percent of the original book value of
the investment.

   1.3 Sale of Business

      After prolonged negotiations with EP, TMP finally signed
the Heads of Agreement with Eastern Polymer (EP) on 4 June
2001.  This resulted in the payment of the Bt30 million deposit
by EP together with a stop to the Bt2 million monthly reduction
in the purchase price (which had no impact on TMP as it has been
cash positive in the amount of Bt17.2 million this year).

      On 15 June 2001 both parties signed the Asset Acquisition
Agreement, which has a completion date of 17 August 2001.  EP
has since set up a new company, Eastern Polypack Co Ltd (EPP),
to run the business previously owned by TMP.

      The company is currently preparing for the transfer of the
assets, employees, BOI privileges, etc to EPP. On completion of
the sale the assets, etc will be transferred to EPP and EPP will
make payment of the majority of the balance of the purchase
price. Due to the discounted formulae offered by EPP for the
accounts receivable and inventory, the final price will not be
determined until after the completion of the sale. Based on
asset values as of 30 June 2001, a final purchase price would be
approximately THB 239.0 million

      1.3.1 Release Mortgage of Core Asset

         The company is in the process of having Standard
Charter Nakornthon Bank release the mortgage on some of the
machines and equipment at Rayong by paying the remaining balance
of Bt13.5 million. This process is expected to be complete
before transferring the assets to EPP.

   1.4 Legal Actions

      TMP was in the process of taking evidence from the last
witness in connection with the East Asia Plastic Ltd for a
hearing scheduled for 22 May 2001. Unfortunately the court has
adjourned the hearing to 8 August for the defendant to take
witnesses.

2. CURRENT PERFORMANCE

   Table 2.1: Income statements for the year ended 31 December
2000 and six months ended 30 June 2001

                      12 months ended           6 months ended
                         31/12/00                  30/6/01

                         Bt '000                   Bt'000

Core business

Sales                    328,589                   182,343
Cost of Sales            330,744                   173,849
Gross Profit              (2,155)                    8,494
                             (1%)                      5%

Selling and
administration          (37,287)                  (17,776)

Interest received          3,863                       805

Earnings from core
business                (35,579)                   (8,477)
Non core activities:

Bangplee expenses
Administration              (793)                       (5)
Depreciation                   0                         0
Loss on sale of
non-core assets        (259,495)                   (2,027)
Loss on sale of
obsolete stocks          (5,360)                        0

                        (265,648)                   (2,032)
Extraordinary items

Amortization of debentures     0                         0
Exchange rate losses
and write offs           (1,199)                        0

                          (1,199)                        0
Rehabilitation expenses

Planner fees             (14,373)                   (5,650)
Other                                                4,000
Income on restructuring    3,303                         3

                         (11,070)                   (1,647)
Non core earnings       (277,917)                   (3,679)
Net loss after
Non-core items         (313,496)                  (12,156)

EBITDA (core items)       22,607                    19,001

   2.1 Planner's comments and future trading

      Although TMP continues to make losses, its core
performance has continued to improve with margins of positive 5
percent for the first six months of the year compared to
negative 1 percent and negative 5 percent for the years 2000 and
1999 respectively.

      TMP's cash position has remained positive, for the first
six months of the year the company has generated net cash of
Bt17.2 million from its core business. At the end of June 2001
the company had Bt95 million of cash on hand.

      We have continued to regularly update the employees
regarding the progress of the sale to EPP. However since the
announcement in March 2001 of the proposed sale to EPP, a number
of managers at the factory have resigned. As a result the
company reorganized the factory and promoted a number of
employees. In addition, the general manager resigned on 6 July
2001.  Due to the short timeframe before completion of the deal
with EPP, the company was unable to replace this position.

3. PLANNER'S FEE

   The Steering Committee approved the fees for the period 19
February 2001 to 6 May 2001 amounting to Bt3.2 million.


THAI NAM PLASTIC: Rehab Plan Q2/2001 Progress Report
----------------------------------------------------
Thai Nam Plastic Public Company Limited submitted its second
quarter 2001 performance compared to the rehabilitation
plan:

Part 1: Progress of the company's operation under the
rehabilitation plan.

Production aspects

1. Reduce production cost by energy saving measurement

In Q2/2001, the company was able to reduce demand charge by 72.7
percent, higher than 66.1 percent reduction in Q1/2001 and more
than the target set at 55 percent reduction from the figure in
March 1998.

2. Reduce fuel cost.

The company aimed to reduce fuel cost from March 1998 by
13 percent. However, the company was unable to attain the target
in Q2/2001 due to the increase of fuel price.

Resolving method under Rehabilitation Plan Q2/2001

3. Manage efficient production plan and in-time  Continuing
process as in Q1/2001 delivery.

4. Increase production efficiency by improving   machinery and
production technique to reduce waste.

The Company could increase production efficiency, which was
represented by the decline in waste from 21.4 percent, the
projection figure, to 14.5 percent in Q2/2001.

Marketing aspects

Resolving method under Rehabilitation Plan Q2/2001

5. To set up the marketing plan and marketing policies in line
to the standard cost by emphasizing high margin product sales.

Continuing process as stated in the rehabilitation plan.

6. To establish product development plan and product
diversification strategies to use as tools for marketing
development.

Continuing process as stated in the rehabilitation plan.

Administration and management aspects

Resolving method under Rehabilitation Plan Q2/2001

7. To develop the new computer system by linking database from
all departments.

The Company has successfully developed the new computer system
for all departments. The computer system for sales and purchase
functions as well as those in administration, but the systems
for production is in the process of being tested.

T.N.P. Industry Company Limited (Subsidiary Company): Most of
the rehabilitation plans of the subsidiary company is in the
master rehabilitation plan of the Company.

Production aspects

Resolving Method in Rehabilitation Plan Q2/2001

1. Reduce production cost by saving energy measurement.

The subsidiary company was able to reduce demand charge by 7.7
percent from March 1998.

2. Decrease fuel cost.

In Q2/2001, the subsidiary company reduced fuel cost by 13
percent due to the low purchasing order.

3. Increase production efficiency by Improving machinery to
reduce waste.

In Q2/2001, the subsidiary company's production waste was 17.2
percent, comparing to the projected production waste of 14.9
percent.
This was due to the low demand and the product reduction.

Marketing, Administration & Management aspects

Resolving Method in Rehabilitation Plan

Marketing, Administration & Management - Implementing in the
same direction as the company

Part 2: Comparison of Actual Performance and Projection
        Thai Nam Plastic Public Company Limited

                                         (Unit : Baht 000)
            Actual (Reviewed)   Projection       Variance
            Q.2/2001  %         Q.2/2001 %       Amount   %

Sales      196,793   100.00%   263,131  100.00% (66,338) -25.21%
Other income 4,987     2.53%     3,656    1.39%   1,331   36.41%
Total
revenues  201,780   102.53%   266,786  101.39%  (65,006)-24.37%
Expenses
  Cost of
   sales   163,057    82.86%   231,874   88.12%  (68,817)-29.68%
  Selling &
   Admin
   expenses 23,238    11.81%    22,435    8.53%      803   3.58%
  Interest
   expense  9,112     4.63%    13,587    5.16%   (4,475)-32.93%
Total
expenses  195,407    99.30%   267,896  101.81%  (72,489)-27.06%
Operating
Gain(Loss) 6,373     3.24%    (1,110)  -0.42%    7,483 674.38%
Gain(Loss)
in the subsidiary
and associated
companies  5,966     3.03%     2,476    0.94%    3,490-140.95%
Net gain
(loss)    12,339     6.27%     1,367    0.52%   10,972 802.96%

Causes of the difference between actual performance and the
projection Revenues :

     Sales: In Q2/2001, the actual sales of Baht 196.8 million
was lower than the projected sales by 25.2 percent due to lower
sales volume than expected by approximately 36.3 percent. The
drop in sales volume resulted from low demand in both domestic
and international market. At the same time, the average selling
price was increased by 13.8 percent, which was due to the rise
in raw
material price and also the change in sales mix -- sold more of
artificial leather product which had higher price than other
products.

Sales Mixed by ratio in term of Value    April-June 2001
                                       Projection    Actual
PVC flexible sheet                         38.27%    40.13%
Artificial leather & sponge leather        43.43%    46.40%
Floor covering & Car mat                   18.30%    13.47%
Total                                     100.00%   100.00%

     Cost of sales and  Interest expenses: Comparing the cost of
sales in Q2/2001, Bt163.1 milion or 82.9 percent of the actual
sales, to the projected cost of sale of 88.1 percent of the
projected sales, there was an increase in gross profit margin
from the projection of 11.9 percent to actual gross profit of
17.1 percent of the actual sales. This was due to production
efficiency, which was shown by the decline in production waste
and lower manufacturing costs, as well as an increase in sales
of high margin products.

The actual interest expense of Bt9.1 million that shown a lower
figure than projected was first due to the decline in interest
rate in the money market and another was due to the repayment of
debt to the creditors who purchase the Company's debt from
Financial Sector Restructuring Authority.

      Net profit (loss): In Q2/2001, the company had operating
profit of Bt6.4 million or 3.2 percent of the actual sales,
which was higher than projected operation profit of Bt 1.1
million. According to the reduction in cost of sales, the
company had net profit of Baht 12.3 million.

T.N.P. Industry Company Limited (Subsidiary Company)

                                            (Unit : Baht 000)
               Actual (Reviewed) Projection        Variance
               Q.2/2001  %       Q.2/2001    %     Amount  %

Sales       102,863  100.00%  131,035   100.00% (28,172) -21.50%
Other income  2,421    2.35%        0     0.00%   2,421     na.
Total
revenues   105,284  102.35%  131,035   100.00% (25,751) -19.65%
Expenses
   Cost
    of sales 87,916   85.47%  110,772    84.54% (22,856) -20.63%
   Selling &
    Admin
    expenses 6,184    6.01%    7,255     5.54%  (1,071) -14.77%
   Interest
    expense  6,141    5.97%   10,815     8.25%  (4,674) -43.22%
Total
expenses   100,241   97.45%  128,842    98.33% (28,601) -22.20%
Net gain
(loss)      5,043    4.90%    2,193     1.67%   2,850 -129.98%

Causes of the difference in actual performance and the projected
Sales:

In Q2/2001, the subsidiary company showed actual sales of
Bt102.9 million, which was lower than projected by 21.5 percent.
This was mainly due to the actual sales volume that is lower
than projected sales volume by 26.4 percent. The drop in sales
volume resulted from low demand in both domestic and
international market. At the same time the average selling price
did not increase as projected.

Cost of sales and expenses: Comparing the cost of sales in
Q2/2001, Bt87.9 million or 85.5 percent of the actual sales, to
the projected cost of sales of 84.5 percent of the projected
sales, the gross profit margin in this quarter was 14.5 percent
of the actual sales. Even though the actual sales were low, with
the subsidiary company's effort to control cost of sales, the
actual gross profit margin was close to the projection of 15.5
percent.

The actual selling and administration expenses in Q2/2001 was
Bt6.2 million or 6.0 percent of the actual sales, which was
lower than projected selling and administration expenses by 14.8
percent. This was due to the efficiency of the subsidiary
company in controlling expenses.

The actual interest expense of Bt6.1 million shown a lower
figure than the projected interest expense was first due to the
decline in interest rate in the money market and another was due
to the repayment of debt to the creditors who purchase the
company's debt from Financial Sector Restructuring Authority.

Net profit (loss): Although actual sales was lower than
projected sales, the subsidiary company still realized net gain
of Bt5.0 million which was higher than expected. This gain was
contributed greatly by the ability of the subsidiary company to
control its selling and administration expenses as well as its
interest expense.

The above information was reported by:

Mrs.Siriphorn Mangkornkarn               Mr. Praisun Wongsmith
Deputy Managing Director                 Managing Director
Thai Nam Plastic Public Company Limited  Siam City M.B. Co Ltd


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