News & News - Asia (April / May2001)

China may emerge as Asian Internet leader

The number of active Internet users in the Asian-Pacific region will increase dramatically accounting for more than 27% of the world's total online population by 2004, according to a new report from Emarketer.

The Easia report reveals that the active Internet population in the region will rise from 49 million users last year to 173 million Net users in 2004, a 38% compound annual growth rate (CAGR).

"Currently, the Internet penetration in Asia is still relatively low compared with the rest of the world, accounting for only 21% of the world's online population," said Eddie Cheung, analyst at Emarketer. "By the end of 2004, however, Asia will see Internet population rise to slightly more than a quarter of the world's total," he added. The report shows Japanese internet users currently account for more than 36% of the total Asian Internet population. This high percentage will quickly dissipate as Internet development in china continues to gain strength. By the end of 2004, Emarketer estimates that China's Internet users will account for 17.4% of Asia's total Internet population. Japan's user base will shrink to 18.5%.

The report notes Asia Pacific's e-commerce revenues have grown dramatically over the past year with revenues reaching $39.4 billion at year end 2000. Emarketer estimates revenues will continue to climb to more than $338 billion by the end of 2004. "Even though total Asia e-commerce revenues will increase substantially over the next few years" stated Cheung, "the region as a whole still accounts for only a fraction of the total revenues on a worldwide basis". Emarketer expects total Asian e-commerce, as a world percentage, to peak at 14% by 2001, but to shrink to 10.6% by the end of 2004.

Longest railway links Qinghai with Tibet

The Chinese government has approved the construction of the first railway linking the Tibet Autonomous Region with the rest of China.

The 1,118-kilometre railway will extend from Lhasa in Tibet to Gormo in Qinghai province in northwest China. It will be the longest and most elevated railway built on highlands in the world.

Feasibility studies and planning of the construction of the railway are now underway. The construction of the railway will start as soon as possible.

Chinese President Jiang Zemin said that the construction of the railway is highly necessary.

Premier Zhu Rongji said that the time was ripe for building the Qinghai-Tibet railway. He said that the railway will have great significance for accelerating economic and social development in Tibet, increasing economic and cultural exchanges between Tibet and the rest of the country and reinforcing unity among various ethnic groups.

Environment Related Business in Japan

The market scale of environment related business has been expanding rapidly as corporations and consumers have become increasingly aware of the importance of preserving the environment. In recent years, various fields of environment related activities, such as the development of equipment and technology for recycling resources, low emission motor vehicles, environmentally friendly products and recyclable or renewable energy, have captured public attention.

Different foreign companies that have entered the Japanese market on the strength of their environment related technology and know-how.

The Environment Agency's estimate, which was made based on the Organization for Economic Cooperation and Development's (OECD) manual, put the scale of the market for environment related business (comprising the three sectors of pollution management, the development of cleaner technologies and products, and resource management) in 1997, at 724.7 trillion. The figure accounted for just over 2% of Japan's gross domestic product, and the agency projects that the scale will grow to 739.8 trillion in 2010, which will make it comparable with the auto industry.

As the environment related business market grows, fueled by tougher pollution control (waste disposal, etc.) and diffusion of environmental management, many firms that had previously not been involved in the market have begun to enter the sector. Furthermore, foreign firms have made market entries.

South Korean economy to make soft landing

President Kim Dae Jung said he is confident that South Korea's economy will make a soft landing this year with an expected growth rate of 6 percent.

Kim made the optimistic forecast as he tried to dispel concern that South Korea's economy, which began to worsen rapidly in the latter part of last year, may be headed for another crisis.

South Korea's economy bounced back from the devastating impact of the 1997-98 Asian currency crisis, expanded 10.8 percent in 1999 and 9.2 percent in 2000.

But concern is spreading about the future of the economy with industry production plummeting and the stock market in the doldrums.

Kim said most major indicators in 2000 show that the foundation of South Korea's economy is solid: inflation rate of 2.3 percent, a dlrs 12 billion trade surplus and foreign exchange reserves of dlrs 96 billion, the world's fifth largest.