Asian woes expanding beyond 2000: Survey

Asian woes expanding beyond 2000: Survey

LONDON (Reuters): Multinational companies operating in Asia believe the region's financial crisis will go on beyond 2000 but Thailand and Singapore will be the first to recover, a survey said on Wednesday.

A big majority said Indonesia would be last to recover.

Renaissance Technomic, part of U.S.-based consultancy Renaissance Worldwide, said it surveyed 65 multinationals, which were not named, in June and compared the results with an earlier survey in December.

It found 45 percent of respondents thought China would take action to deal with the crisis in the next six months and of those, 70 percent said it would devalue the yuan.

The previous survey found a majority believed stability would return to Asia before 2000 but in the latest survey that had slipped to 2000 or beyond.

Factors affecting the resolution included aggressive economic action by China, Japan's economic action and economic outlook, the ability of South Korea to deal with labor unions, and the political stability of Indonesia.

More than 30 percent said Thailand would be the first to recover, while 25 percent cited Singapore. More than 80 percent said Indonesia would be the last.

The company said in contrast to its earlier survey, companies now seemed to be acknowledging the significance of the changes in the Asian landscape and were reviewing and modifying their strategies.

Of those seeking acquisitions, only 21 percent had actually made one in the past six months. The reason most cited was an asking price that was too high.