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 2003. 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 2003.
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.
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.