The eight teams were split into two groups and played in a round-robin format. The top two teams of each group advanced to the promotion pool, from which the two top teams were promoted to the Asia/Oceania Zone Group II in 2004. The bottom two teams of each group were placed in the relegation pool, from which the two bottom teams were demoted to the Asia/Oceania Zone Group IV in 2004.
The top two teams from each of Pools A and B advanced to the Promotion pool. Results and points from games against the opponent from the preliminary round were carried forward.
Kuwait and Malaysia promoted to Group II for 2004.
Relegation pool[]
The bottom two teams from Pools A and B were placed in the relegation group. Results and points from games against the opponent from the preliminary round were carried forward.