05/02/2014 Asia Business Report

in September's referendum would increase costs for the company. Now

on BBC News all the latest business news live from Singapore. Microsoft

installs a new chief executive and chairman. The politically sensitive

rice scheme in Thailand is dealt a blow after a major contract. Roof.

We begin in Silicon Valley where a long anticipated changing of the

guard has taken place at Microsoft. Company insider Satya Nadella has

been tapped as the third ever CEO of the company. He joins the software

manufacturer -- joined the software manufacturer more than two decades

ago. He led various businesses in Microsoft before being given the big

job. Microsoft founder, Bill Gates, is stepping aside as well as

chairman to become a technology adviser to the company. John

Thompson, a director who led the CEO search, will take over from Mr

Gates. I asked the founder of a major technology website about how

the tech world was receiving this change. A lot of shareholders wanted

somebody who could shake up Microsoft, from the outside. That is

why there was so much excitement about the Ford CEO coming in and

taking a fresh look at Microsoft. Shareholders are disappointed with

the notion of one of the tenants of Steve Ballmer taking over the job. A

lot of investors were looking for that. Satya Nadella is not widely

known in the tech world. What are your sources tell you about him? She

is very well respected and that the company. In the tech world he is not

a household name at this point. She is a quiet but strong individual. He

has a lot of principle and, according to people who worked with

him, we'll look at the data and not be afraid of bold decisions. He

needs to translate that respect into the broader world and the stock

market. Many analysts are saying that it will basically be three

people running the company. The big question is, will Satya Nadella be

allowed to make the transformative change is that Microsoft needs at

the product and people level? The fact that you have seen John

Thompson, rise so quickly to the role of chairman speaks to the fact

that he at least will be willing to give the new CEO a long leash to

make potential changes. Bill Gates being there is more the product

side. She will be willing to make changes, given the struggles that

Microsoft has had, particularly on smartphones and tablets. That

extent, we will see change. It will not be radical change. Over time,

you will see Satya Nadella make his own mark on the company. In other

business News, shares of Panasonic surged more than 50% after posting

stronger than expected earnings. The Japanese electronics maker said that

its quarterly profit tripled to $3.4 billion. The stock price of Sony,

rose on reports that it will sell its computer division. Its shares

gained 8% in trade at Tokyo. That is a one-week high. Please do not

worry. The commerce Ministry is trying its best. Those are the words

of a government minister in Thailand on Tuesday as he announced that

China has cancelled the contract to buy more than 1 million tonnes of

rice. The deal would have been the first stage of a much bigger sale,

but Thailand's entire rice subsidy scheme is being investigated by the

corruption commission. The political turmoil is no close to being

resolved. For more than two years, Thai farmers have been able to sell

the entire rice crop to the government for a guaranteed price.

It has been an understandably popular policy with them. But it has

left the government holding an immense and growing rice Mt. It is

estimated at more than 15 million tonnes. It has proved hard to sell

overseas without making a huge loss. When I met the minister in charge of

the rice scheme, I asked him if he was having any success in unloadings

the rice. We have been doing pretty well lately. At the beginning, we

may have had a problem but that was only a short time and it has now

been moving quite well. We are still doing the normal sales. Which were

selling at a lower price? You have to look at this. With this kind of

programme, you need a budget. You may say, this is the loss. But even

the skin of the last government, they provided a budget for this. The

amount of the subsidy is not that high. Really? Do you actually know

how much this rice scheme has cost? Can you put a figure on it? We have

accounts year by year, but we do not know exactly. We can estimate. The

amount of money, the subsidy, what you're calling a loss, it is not

very different. At a time, he was still in talks with China to explore

a million tonnes of rice at an undisclosed price. There was a hope

of selling a further 6 million tonnes. That deal would help to

reduce the stocks and feel hole in the budget. Now it has fallen

through. This leaves the government with few options for paying farmers

for the last crop in October. Until Parliament reconvenes it has limited

powers to raise funds. Angry, unpaid farmers have been protesting by

blocking roads. Some have even joined the anti-government movement

in Bangkok. Critics now believe that the government will have to abandon

the rice scheme. Thailand can only then recover its previous reputation

as a benchmark for quality. Car sales in India have dipped for the

first time in over a decade last year. The entire industry is feeling

the effects. India is holding one of the biggest auto Expo is holding one

of the biggest auto expos in Asia, it is worth asking if the sector can

come out of this slump? Trying to get back into the spotlight, these

are the first new cars from the major motoring companies in nearly

four years. Sales at Tata fell more than at any of its rivals. This was

the ultra cheap, small car that Tata Motors created and which were

supposed to revolutionise the industry. What it has disappointed

since its launch. The current -- the company now wants to change its

strategy. If you look at the demographic of the buyers, we are

seeing more younger buyers. Cheap is not what they are looking for.

They're looking for the right value, something that enhances their

identity. We are repositioning the brand, and targeting those younger

buyers. And it is not just Tata Motors. Every other car maker in the

country is trying to tempt the consumers in a market down 10%.

Customers are hardly walking into the showrooms these days. Borrowing

has become more expensive in the last couple of years. But about two

thirds of all cars in India are being sold on loans. Higher

borrowing costs mean that purchasing decisions are being delayed. But the

market is not uniformly bad. Foreign firms like Ford are sitting on

months of orders. Launching a new prototype of the existing compact

car, the company says that getting India right is crucial for its

success. Our investments are on track. We are investing $2 billion

into India, 1 billion of which is for a factory facility. That will be

operational by the end of this year. There is great potential. While the

urban roads of India may be struggling with traffic jams, there

are millions of people still looking to buy their first car. So carmakers

in the third watermark at in Asia, are hoping that the auto show will

drive interest and sales to help change the fortunes of the

industry. In the markets, after a strong start, the rally has fizzled.

Sentiment is mixed, following a rise in Wall Street. Hong Kong is lower.

Australia is also in negative territory as the Australian dollar

continues to gain.