Taiwan food company cautious on SE Asia

Taiwan food company cautious on SE Asia

TAIPEI (Reuters): Taiwan food giant President Enterprises said
yesterday it was temporarily suspending all investment projects
in Southeast Asia due to currency volatility and high risks
there.

Chief executive officer Kao Ching-yuan, in an interview with
Reuters, nevertheless said President would use a government-led
fact-finding mission to Southeast Asia to seek out opportunities
for business mergers or acquisitions in the battered region.

"We have decided temporarily to suspend all investment
projects in Southeast Asia because of currency volatility and
high risks there at the moment," Kao said by telephone.

Among the investment projects that would be suspended, Kao
mentioned two in the Philippines, one involving an oil refinery
and the other an instant noodle plant.

Kao said the two Philippines projects were budgeted at less
than T$10 billion. He did not elaborate.

Kao, who also is chairman of Chinese National Federation of
Industries, Taiwan's largest industrial association, nonetheless
expressed his interest in merging with or acquiring Southeast
Asian businesses.

Kao is a ranking member of a 10-day government-led business
mission to Southeast Asia starting from Sunday.

"We are still very interested in merging or acquiring
businesses there if we have the chance," Kao said.

Kao gave no details of what President was seeking.

Chiang Pin-kung, Taiwan's top economic policymaker, will lead
the mission organized by executives from major manufacturing and
financial industries to show concern for the region during its
currency crisis.

Chiang, chairman of the cabinet's Council for Economic
Planning and Development, told Reuters in an interview on Friday
that his delegation was not carrying any offers of economic or
financial aid to the battered region.

The mission will visit high-level officials in the four
countries to show concerns after they were severely hit by recent
Asian currency crisis, officials said.

Delegation members also planned to hold talks with Taiwanese
investors in the four countries and seek out new investment
opportunities there, officials said.

Officials of Taiwan's central bank and several ministries have
said that Taiwan had received a number of requests for financial
help from unspecified Southeast Asian countries.

Taipei has said it was willing in principle to help, and has
proposed putting US$4 billion into a regional fund, but has made
clear that its main aim is membership in the International
Monetary Fund.

Communist China, Taiwan's ideological rival since a 1949 civil
war split, has blocked the island's entry to the IMF and most
other international organizations as part of a diplomatic embargo
aiming to pressure Taiwan under Beijing's sovereignty.