Taiwan's quarantine shows no signs of abating

Taiwan's legislature is planning to double the size of a long-planned stimulus package worth more than 50bn New Taiwan dollars ($1.4bn; �900m) to try to counteract the economic damage wrought by the Sars virus.

The virus, which has so far killed three people among almost 200 confirmed cases in Taiwan, could halve growth this year according to Taiwan's top economic planning agency.

Although Taiwan has not suffered dramatic disruption, its economy relies on factories in mainland China and regular travel by business people to visit them.

Furthermore, they usually travel via hard-hit Hong Kong as the mainland's ruling Communist Party restricts direct travel from Taiwan, which it views as a breakaway province.

Topping-up

The NT$58.4bn stimulus programme, passed early on Friday, was already in the works as a counter to Taiwan's 4.5% unemployment rate and its recent recession when Sars struck earlier this year.

Now legislators want to add another NT$50bn, two-thirds of which would be spent directly on cushioning businesses on the ropes thanks to the slowdown.

With near-unanimous opposition support, the extra money is likely to be approved later on Friday.

But while the cash can help some businesses - especially those impacted by the slump in travel and tourism - it can do little to fill the gaping hole in consumer spending as fearful shoppers stay home.

Fighting back

Taiwan is just one of many economies in Asia stricken by Sars.

China last month admitted to having vastly understated its own Sars problems, and the potential damage to the region's biggest and fastest-growing economy is as yet unquantifiable.

Vietnam now says it has Sars under control, but Hong Kong has seen its leading airline, Cathay Pacific, almost shut down.

In Singapore the authorities have been reduced to warning people that supposed 'cures' - such as heavy beer-drinking or eating pork - are no protection against the illness.

And in Japan, the state-owned Development Bank of Japan is considering making emergency loans to Japan Airlines System (JAL Group) and All Nippon Airways, the country's two biggest carriers, to help them overcome the damage Sars is doing.