■Economy
Japan fears an Iraq war
Japanese business lobbies expressed concern Monday that a possible US-led war against Iraq might further hurt Japan's economy, which is already suffering from lingering deflation. At an annual New Year's press conference, the chiefs of three of the nation's most powerful business associations said any slowdown in the US economy would weigh on Japan. "Even if it is a short war -- such as 10 to 15 days -- there will be continued fears of possible, new threats of terror attacks," said Hiroshi Okuda, chairman of Nippon Keidanren, or Japan Business Federation. "If it becomes a long campaign, I will definitely be concerned about oil," said Okuda, who is also the chairman of Toyota Motor Corp.
■ Computers
Gateway to restructure
Gateway Inc Chairman and CEO Ted Waitt is looking to restructure the personal computer maker after weak holiday sales, the Wall Street Journal reported on its Web site. The company is looking at its 272 retail stores to cut costs, the newspaper said, citing Waitt. He declined to provide specific plans, the newspaper said. Gateway will reorganize this month, name new executives, overhaul its sales operations and create a separate marketing and sales group for business PCs, the newspaper said, citing a presentation Waitt sent to executives last month. Last month, some of Gateway's stores didn't have sufficient inventory of digital cameras and plasma televisions to meet demand, the Journal said.
■ Commerce
Trade rises in the Koreas
North Korea, under mounting international pressure over its nuclear policies, saw border trade with powerful neighbor China increase dramatically last year, partial trade figures indicated on Monday. China's cooperation in sealing its mostly remote 1,400km frontier with North Korea would be crucial to any effort by the US and its allies to impose trade sanctions over Pyongyang's suspected nuclear weapons programmes. Seoul's Korean Trade and Investment Promotion Agency (KOTRA) said North Korea's border trade with one region of northeastern China, Changbai, shot up 74 percent to US$11.2 million in the year to November.
■ Economy
Malaysia needs boost
The Malaysian government may opt for another round of pump-priming this year to boost the economy, Prime Minister Mahathir Mohamad said yesterday. Mahathir, who is also finance minister, said the government would have to continue to provide incentives to draw foreign investment amid the poor global economic sentiment. "We know that there is not much money going around and people are nervous. It's not what we can do. It's what they believe in the viability of their investments," he said. "At the same time, of course we have to boost our economy to maybe pump-priming, injecting more funds into circulation, spending money on quick projects." He did not elaborate but the central bank in November said the government may lift spending and loosen monetary policy to boost the economy in the event of a sharp global slowdown. The government has increased spending to support the economy after a recession in 1998 and last year announced the country's fifth straight deficit budget for 2003.
Agencies
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