The limited presence of Irish companies in Asia means they should be able to weather the storms buffeting the region without too much pain.

But some sectors, such as food and drink exporters or those providing training and construction services, face a tough year in the area.

In 1996, £1.8 billion of Irish exports (or just 6 per cent of the total) went to Japan, South Korea or south-east Asia. Multinational firms accounted for 80 per cent of these exports with the non-food indigenous Irish sector accounting for just £200 million of sales. The food sector sold goods worth some £195 million to the region.

Ireland's food exports to the Far East fall into four main categories. Dairy product exports including infant formula which is the largest individual item to be exported and accounted for sales of around £65 million in 1996.

Ireland also exports meat, especially pigmeat, and fish to Japan. The Japanese herring roe market alone was estimated to be worth £10 million in 1996.

Sales of alcoholic beverages to the area have also grown in recent years as markets there have liberalised and Irish exports include Guinness, whiskey and Baileys.

The Irish Food Board estimates that exports to the area grew by 10 per cent last year, but says 1998 could be difficult as the crisis in the region slows demand for imported goods.

"I believe that it will be detrimental to luxury items," says Mr Owen Brooks, director of international markets with Bord Bia. "It may impact on the growth of the drinks market as there will be less money around for luxury items."

Guinness Ireland said it was too early to be specific about the exact effects of the crisis, but some adverse effect could be expected. The group, which sells stout across the region, said any reduction should not be dramatic given the nature of the product.

"Beer is a mass market item and tends to be less affected than highly-priced imported goods," a Guinness spokesman said.

Irish Distillers, which makes Jameson whiskey, said Asia was not a significant market for the company.

However, Mr Brooks says the crisis is unlikely to affect exports such as infant formula, needed to feed Asia's growing population.

The crisis poses another problem for Ireland's food industry as the area's traditional food suppliers Australia, New Zealand and the US are likely to seek other outlets for their products.

"We could see more competition for Irish companies in what we consider our traditional markets such as the Middle East beef market," Mr Brooks says.

But he believes that even if the Asian market declines in the short-term, the region is likely to remain an important food importer in the medium to long-term.

"Japan is only 47 per cent self-sufficient in food and declining. I don't see that trend being arrested," says Mr Brooks.

Aside from the food sector, several of Ireland's publicly-quoted companies have announced intentions to dip a toe into the Asian markets in recent years, but few have developed any serious exposure to the region.

Waterford Wedgwood is one of the stock market companies most exposed to the region, but a spokesman for the firm said Asia was small in the context of the company's global reach.

Japan, its main Asian market, accounted for just 11 per cent of Wedgwood's turnover in the first half of 1997 and a small part of Waterford Crystal sales.

The spokesman also said the company had a good global balance which protected it from slumps in any one area. Although Asia is suffering, the current strength of the dollar is in the company's favour, he noted.

Beyond the publicly quoted sector, the Irish Trade Board (ITB) says that a lot of Irish companies are selling into niche markets which are holding up well.

Many Irish companies are sub-suppliers in electronics and instrumentation who have used their contacts with multinationals in Ireland to build their export business.

"As long as the multinationals continue to operate and produce sales, those ventures should be all right," says Mr Alan Fitzgibbon, senior economist with the ITB.

He also notes that Irish companies selling into the region generally compete with nonlocal suppliers who are facing the same drop in competitiveness following the plunge in the value of local currencies.

But one area that could be vulnerable is the provision of training and construction services for the upgrading of the region's social and physical infrastructure.

Companies such as ESB International and the Royal College of Surgeons have undertaken work in the area in the past, but there is some concern that funding for such development work much of which comes from the World Bank could be cut back because of pressure from international lending agencies.

However, exporters believe the crisis may also open doors and provide opportunities that did not exist before.

Japan, in particular, may accelerate reform, forcing the pace of deregulation in a bid to find its way out of the current financial crisis. This could provide opportunities for Irish firms in areas such as telecommunications, financial services and software.