When asked about the number of ISPs Singapore can sustain, Lee said: "Relatively speaking, not that many more."

He said any new player would still need to buy bandwidth from Singapore Telecommunications Ltd (SingTel) till April 2000, giving them no special advantage.

The newcomer would also be dwarfed by the three giant in Singapore: SingTel's subsidiary SingNet, Semborp Industries' Pacific Internet, and Cyberway, which was acquired by the StarHub consortium comprising British Telecom, Nippon Telegraph and Telephone Corp, Singapore Power and Singapore Technologies Telemedia.

With a population of three million, Singapore has an Internet penetration of 15 per cent, Lee said. But he hoped that the figure would grow to 30 per cent in the next few years as Internet subscription fees continue to fuel the company's revenues.

Pacific Internet has 40 to 45 per cent of Singapore's Internet subscription market share, and has helped hospitals and others to implement online shopping.

E-commerce caught on in Asia.

Pacific Internet already has a presence in Hong Kong, the Philippines and India, but plans to venture further afield.

"For us to be able to take on the big US and Europe ISPs, we have to be a bigger regional player," he said.

"The company is turning around nicely," an analyst at a European brokering house said. It was also striking while the iron was hot by planning to go public in the United States.

In January, an offering of 2.5 million shares at $13 to $15 each to fund potential acquisitions in existing and new markets in the Asia Pacific, capital expenditure and other general corporate business, according to its underwriter Lehman Brothers.

Analysts said it was a judicial move for Pacific Internet to list in the United States where, compared to Singapore, there was a developed market of Internet stocks such as America Online.

"The Americans are absolutely head-over-heels with theInternet, so you could count on them -- if it's an Internet-based company -- for a huge mouthful of what they are already worth," a telecoms analyst said.

"Pacific Internet will get a better valuation because thereis more demand there. Stocks traded in the U.S. Are a few hundred Times their price-earnings ratio," the analyst said.

Analysts added Pacific Internet could have a dual listingin boph Singapore and the U.S. Like `omegrown soundcard maker Creative Technology .

-- Singapore Newsroom (65) 870-3080; Fax: (65) 776-8112

-- E-mail: singapore.newsroomzreuters.com

Indonesian late olein jumps on fall in rupiah JAKARTA, Jan 13 (Reuters) - A sudden fall in the Indonesian rupiah boosted prices of palm olein in late trading on Wednesday and traders said strong demand ahead of the Moslem Eid al-Fitr celebration would spark further rises.

"The rupiah is once again responsible for the risingprices," said one trader in Jakarta. "I think olein will become more and more expensive when Eid al-Fitr is getting nearer."

Some traders said prices could reach 4,000 rupiah/kg thisweek. The Eid al-Fitr festival, which marks the end of the Ramadan fasting month, falls on January 19/20 this year.

Traders said ready olein was quoted at 3,900 rupiah/kg frombetween 3,650-3,700 rupiah/kg in late morning trading.

"Some traders don'T want to sell olein in large quantitiesbecause they know prices will rise again soon. There is some kind of fear, however, that the government may change its mind regarding tax if prices continue to rise," said one trader.

The government plans to reduce export tax on crude palm oil(CPO) at the end of this month. The rate may be cut to as low as 40 percent, it says.

CPO export tax currently stands at 60 percent while taxeson by-products such as refined, bleached, deodorised (RDB) palm oil and olein are 55 percent and on crude palm kernel oil 50 percent.

The rupiah fell more than five percent against the dollaron Wednesday, breaking through support at 8,600 on regional weakness, political concerns and activity in the swaps market, dealers said.

It was quoted at 8,400/8,500 against the dollar at 0950GMT. ((Lewa Pardomuan +6221 384-6364; Fax +6221 344-8404, jakarta.newsroomzreuters.com))