Japan eyes 20pc tax cuts

TOKYO: The government and Prime Minister Keizo Obuchi's ruling party have decided to cut income taxes by 20 per cent across the board next fiscal year, Japanese newspapers reported Friday.

In a meeting Thursday, tax officials from tne government and the Liberal Democratic Party agreed on the measures, which will include a maximum cut of 150,000 yen ($1,280). the Nihon Keizai newspaper reported.

They also agreed to cut residential taxes by 15 per cent, or up to 40,000 yen ($ 340). said the paper. Japan's leading business daily.

News of the cuts was also carried on the front pages of three other major Japanese newspapers.

But a Finance Ministry Siokesman quoted Finance inister Kiichi Miyazawa as saying that nothing concrete had been decided and that government and LDP tax officials were discussing details.

The spokesman said a decision will be announced by the end of next week. He spoke on condition of anonymity.

The government plans to send tax reform legislation to the next regular session of Parliament beginning in January.

Deutsche, Sakura Securities to merge

TOKYO: Deutsche Bank AG. Germany's largest bank, and major Japanese lender Sakura Bank Ltd have agreed to form a strategic alliance by merging their securities subsidiaries, a local newspaper said Friday.

Under the deal. Sakura Securities and Deutsche Securities would merge as early as next summer, the Yomiuri, Japan’s widest-circulation daily, reported.

The two banks also plan to link their businesses in areas such as asset management and the development of mutual fund-type investment products, the report said. A formal announcement of the tie-up was expected as soon as next week, it said.

A spokesman for Sakura did not rule out such an alliance, but said no final decision has been made.

The move would mark the latest bid by Deutsche Bank and other foreign financial firms to expand their presence in Japan, which has begun to implement drastic deregulation of the banking, brokerage and insurance industries.

Last month. Deutsche Bank announced plans to set up a joint venture asset management company with Japan's Nippon Life Insurance Co.

ROK workers' strike continues

SEOUL: Thousands of workers at two major conglomerates continued work stoppages Friday. protesting an industry shakeup they said would lead to mass layoffs.

In a government-mediated deal struck earlier this week. Daewoo Electronics Co. will be swapped by its parent conglomerate for Samsung Motors Co. an auto-making subsidiary of the Samsung group.

Samsung Motors will be absorbed by Daewoo Motors, the nation’s No. 2 car maker, while Daewoo Electronics will be merged Into Samsung's home appliance arm. the nation's largest.

The $10 billion deal is part of an industrial restructuring in which the nation's top give conglomerates — Hyundai. Samsung. LG. Daewoo and SK —.will spin off half of their 264 subsidiaries.

One industry study estimates that the restructuring will result in up to 40.000 workers being laid off.

Unemployment rate up in S'pore

SINGAPORE: The government confirmed Friday its preliminary estimate that the adjusted unemployment rate for September was 4.5 per cent, almost double June's 2.3 per cent.

The Manpower Ministry for this city-state of 3.1 million people issued the final figures in its quarterly report, confirming preliminary figures given in late October by Minister Lee Boon Yang.

Filipino labour situation betters

MANILA. Dec 11: The Philippine labour situation continues to improve, with the number of strikes falling slightly from last year, labour officials said Friday, reports AP.

Buenaventura Magsalin. chief of National Conciliation and Mediation Board, said that as of November of this year, only 89 strikes have been reported nationwide, down from 91 work stoppages recorded during the same period last year.

Magsalin said the number of workers involved in strikes also dropped by more than a third to 32.819 during the same period.

He is optimistic that if the trend continues and more strikes get resolved during the Christmas period, the country will have a peaceful December.

"We, therefore, expect to meet out target of maintaining strike level at below the 100 mark this year,” he said.

The Nihon Keizai said the 1999 tax cuts are expected to total 4 trillion yen ($34 billion). — AP reports