The firm engaged Singapore's public-listed technology firm Stratech Systems in 2001 but work was delayed and when the system was fully tested in June 2003, nearly a year after the original completion date, it was riddled with problems.

Stratech asked Panasonic for another $1.4 million to fix and complete the system but it refused to pay and Stratech did not go back to work on the project.

Yesterday, the Indonesian firm won its lawsuit against Stratech.

Justice Judith Prakash also dismissed a countersuit by Stratech, which blamed Panasonic for the delays, claiming it suffered unspecified losses as a result.

Stratech is looking at paying potential damages of up to $1.83 million - the limit stated in the contract - although Panasonic will have to prove its claims when damages are assessed at a later hearing.

Read the full story in Friday's edition of The Straits Times.