Some 35 percent of Japanese-affiliated companies in Southeast Asia, China and South Korea are suffering from tight lending practices at financial institutions, a Ministry of International Trade and Industry survey showed Monday.

Of those affiliates, 68 percent said they expect the situation to remain after September, while 27 percent expect it to worsen, the report says.

The survey covered 319 Japanese affiliated firms in four member states of the Association of Southeast Asian Nations, China and South Korea. Conditions are particularly bad in Indonesia, an ASEAN member, where nearly half the affiliated firms are being hit by banks' reluctance to lend, MITI officials said. About 15 percent of Japanese firms in these areas said conditions may pose grave consequences for their parent companies.