November '98 News and Perspectives about Business Opportunities in Asia

Subject: Some interesting observations on the recent APEC meeting.

November 20, 1998

The APEC meeting in Kuala Lumpur, Malaysia, the epicenter of Asian countries in financial and social crisis, has just ended.

This meeting is probably only next in importance to G-7 because APEC covers a region that has the biggest population, landmass, or world trade. The crisis in this region have already sent its waves all over the world like an earthquake.

What has APEC accomplished? Naturally, large amounts of new capital have been appropriated to be injected into the area from outside. The figures from the conference speak out loudly about the possible effects on, and opportunities for, prospective investors globally. The pledges include:

IMF - 1.2 Billion US$
USA and Japan - 10 Billions US$
Taiwan (ROC) has allocated 900 million US$ to their banking institutions in Southeast Asia for loans to local industries or financial institutions.

ROC has also proposed something quite interesting: the issuance of certain COLLATERAL BONDS by APEC nations to help put capital back into those countries where capital had fled. The purpose is to woo back the escaped capital of those crisis countries through these bonds. ROC has promised to earmark 250 million US$ into the COLLATERAL BOND OPERATION, if others agree to join. The People's Republic of China (PRC) has voiced objections on political grounds, while Malaysia and other ASEAN countries have shown interest and support.

As a result of all these developments, we should expect to see an economic upturn for those countries most deeply in the financial crisis and a concomitant window of opportunity for businessmen and investors.

Let us follow the example of Columbus, going East for tremendous treasures. PRO can provide you with the projects and sail together with you to a profitable landing.

Subject: How to get the most gain, least pain from a new territory.

November 14, 1998

Following up last week’s thread on choosing a business plan for expansion into Asia: When we wish to enter a new market, like Moses, we must send out "spies" first to go out into this new land of potential flowing milk and honey. Without a VANGUARD, what might we meet there? The milk could turn into poison, while honey could bring hornets. Advance information and knowledge of up-to-date local conditions mean getting a reliable agent or setting up a field office. But how much would that cost?

An alternative is to use PRO’s network of resources to gather the specific information sets necessary to make a wise decision.

How much for this service? The initial briefing may even be GRATIS, if no fees are mentioned beforehand. We are interested in long-term business relationships.

Let us know which direction you wish to go. PRO is always available.

This week's opportunities include:

The following projects are currently open for bidding and tenders are invited:

Dawoo to Wuhan expressway 143km, adjacent line 54km in Hubei province: 250 million USD
Baotao to Dongsin first-grade road 100 km, Beiyingchagen to Funzhen road 142km in Mongolia Autonomous Region: 80 milliom USD
Liu He Gu to Zhonghe expressway 34km and another second- grade road 64km in Gensui province:100 million USD
Guyiazhi to Wangchunlian first grade road 94km and another second road 250km inin Niansha province: 50 million USD
Wuhan to Tucheng expressway 103km in Hubei province: 150 million USD
Tucheng to Changsha expressway 183km in Hunan province: 200 million USD
Chengdu to Nanzhun expressway 210km in Sichuan province: 250 million USD
Yuanjiang to Mohe first grade road 163km in Yinnan province: 150 million USD

Subject: Leveraging existing structures.

November 8, 1998, 1998

When one is ready to make an investment abroad, in a country where the profit margin is much higher, the first question is : How to proceed?

Of course, it seems straightforward enough to start the project, ab initio, from A to Z. But that approach either requires longer time and//or bigger capital, not to say the training of new staff and workers.

As a result, many investors are inclined to buy into an existing project, to join with a similar organization as partner, or to to become a principal in another party by contributing technical and/or managerial equity. This approach is much simpler and less capital intensive. Leading to a larger profit in a shorter period of time.

We have the experience in putting together this kind of partnering. There are many enterprises looking for cooperation or trying to sell themselves in the Pacific Rim region. Given the current exchange rates, they are good bargains!

Do you have any projects in mind? Let us discuss it with you to explore how to help you obtain the best terms for your investment.