10/02/2014 Asia Business Report


10/02/2014

Similar Content

Browse content similar to 10/02/2014. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

Shepperton in Surrey. Now on BBC News - all the latest

:00:00.:00:00.

business news live from Singapore. Putting on a show. The region's

:00:07.:00:22.

biggest aviation event kicks off in Singapore.

:00:23.:00:23.

Doing business in India, the competition is heating up as more

:00:24.:00:26.

and more foreign firms enter the market.

:00:27.:00:31.

Thanks for joining us. We start off with the biggest aviation event, the

:00:32.:00:43.

Singapore Airshow, which begins on Tuesday. Aviation leaders around the

:00:44.:00:47.

globe have come to see this, hoping to do some major deals. More than a

:00:48.:00:51.

thousand companies from 20 nations will be here. The previous airshow

:00:52.:00:57.

in 2012, deals worth $31 billion were announced. One country with a

:00:58.:01:02.

strong presence is the US. It is the feature country this year. We spoke

:01:03.:01:06.

with the American ambassador to Singapore. We asked how important

:01:07.:01:12.

the air show is the US. It is crucial. We all know that Asia over

:01:13.:01:18.

the next 20 years is going to do more business with the rest of the

:01:19.:01:26.

world combined. We have 163 companies here which represent the

:01:27.:01:29.

largest companies to the small companies, commercial services. If

:01:30.:01:36.

there is a need in aerospace, we have a country to fill the bracket.

:01:37.:01:42.

Asia is a big pie right now where everybody wants to invest. In which

:01:43.:01:49.

countries and in which institutions? The beauty about the aerospace

:01:50.:01:55.

industry because it is so mobile by definition means that you can do a

:01:56.:02:01.

little here and there. This airshow allows us to talk to all the same

:02:02.:02:07.

people at the right time. And get deal done, as you say. Deals not

:02:08.:02:13.

only on the commercial side but also the military. How does this fit into

:02:14.:02:20.

the overall Asia policy of President Obama. We are seeing a real-life

:02:21.:02:25.

manifestation of rebalance and since before I got here. This is when we

:02:26.:02:32.

can show the world that we have over ten Admiral 's and generals with

:02:33.:02:38.

four stars above coming here, standing side by side with CEOs and

:02:39.:02:43.

regional leaders. They are working hand in glove. -- admirals. We can

:02:44.:02:49.

see economic potential in this part of the world but also frontier

:02:50.:02:54.

markets. There are challenges. We have poor safety record for some

:02:55.:03:01.

airlines, automation issues at some airports. Safety is a big concern

:03:02.:03:05.

for commercial airlines like Boeing. It must be the primary concern,

:03:06.:03:09.

safety. One thing we see from every country in the region is that they

:03:10.:03:14.

are working to improve. We want to be involved to help with that. To

:03:15.:03:18.

your point, we have the FA administrator here for the airshow,

:03:19.:03:22.

talking about some of the things that are going on in civil aviation.

:03:23.:03:26.

We just want to be part of the conversation. The companies want to

:03:27.:03:30.

be part of the solution. The US ambassador to Singapore.

:03:31.:03:37.

In relation to the airshow which begins tomorrow, Indonesian defence

:03:38.:03:39.

officials have pulled out amid a disagreement over the naming of an

:03:40.:03:45.

Indonesian warship. The spat between Singapore and Jakarta is over the

:03:46.:03:48.

decision to name a big frigate after two Marines executed for their

:03:49.:03:54.

involvement in a fatal bombing in an incident in Singapore in the 1960s.

:03:55.:03:58.

Get more information on the Singapore air fought -- airshow from

:03:59.:04:02.

the website including defence spending in Asia.

:04:03.:04:08.

Companies are facing pressure from international rivals as the

:04:09.:04:09.

government encourages more investment by foreign firms. Sectors

:04:10.:04:15.

like retail and aviation are opening up to overseas companies but doing

:04:16.:04:18.

business in India is difficult. We have more from the northern state

:04:19.:04:23.

on how multinational companies are coping.

:04:24.:04:30.

This is the home to some of the most well-known global giants. There are

:04:31.:04:35.

nearly 250 multinational companies here. More and more are setting up.

:04:36.:04:41.

India, with a middle-class the size of the US population, is not a

:04:42.:04:46.

country which most companies can ignore. The country was hailed as

:04:47.:04:49.

one of the most promising growth markets. Unpredictable regulation

:04:50.:04:55.

and bureaucracy along with slower economic growth have shaken the

:04:56.:04:58.

confidence of companies from making big investments here. This company

:04:59.:05:08.

makes industry software to help companies design and manufacture.

:05:09.:05:12.

They have been here for decades but the company says in India, you have

:05:13.:05:16.

got to be prepared for the unexpected. The basic surprise in

:05:17.:05:21.

the market is at the unpredictability. With customers,

:05:22.:05:25.

unpredictable business, unpredictable at the old and the

:05:26.:05:33.

operating environment. You may not be obligatory office because someone

:05:34.:05:36.

has died at the road. With the complicated market, global business

:05:37.:05:40.

comes here and tested people like these. Marketing to specialists,

:05:41.:05:43.

they guide companies through the process. They say that business has

:05:44.:05:50.

grown over 70% in the past year. What is the advice they give their

:05:51.:05:54.

clients? Planning for the longer term is key. Having expectation that

:05:55.:05:58.

it will take time to succeed and not expect results in the early stages.

:05:59.:06:06.

India remains a promising yet challenging market which many are

:06:07.:06:10.

trying to crack. Why must people feel that there is money to be made

:06:11.:06:14.

in India, there are plenty of question marks. The upcoming general

:06:15.:06:20.

elections brings another element of uncertainty. That is not conducive

:06:21.:06:24.

to investment. In other business News,

:06:25.:06:28.

investigations had been launched after the Newsday reported dozens of

:06:29.:06:34.

confidential files related to Berkeley 's bank customers were

:06:35.:06:36.

allegedly stolen and then sold to world brokers. Newspapers said that

:06:37.:06:42.

an anonymous whistleblower handed it a memory stick with personal data

:06:43.:06:47.

from 2000 Berkeley customers. Berkeley 's said it was still

:06:48.:06:51.

investigating the matter. The owners of the Bangladesh Garment factory

:06:52.:06:57.

where 112 workers died two years ago have turned themselves into

:06:58.:07:02.

authorities. The arrest warrants were issued to

:07:03.:07:05.

the pair in December. It is the first time that Bangladesh has

:07:06.:07:09.

sought to profit -- prosecute factory owners in the garment

:07:10.:07:12.

industry which is the world's second-largest after China, a vital

:07:13.:07:17.

part of the Bangladeshi economy. Japan has posted the deficit for

:07:18.:07:22.

December of $6.25 billion, slightly lower than forecast. The second

:07:23.:07:27.

largest economy in Asia is dealing with a weaker yen which had inflated

:07:28.:07:30.

the cost of energy imports. In recent years, Japan has bought

:07:31.:07:37.

fossil fuels to make up for energy lost from closed down nuclear power

:07:38.:07:40.

facilities. Moving to Indonesia, the dispute

:07:41.:07:44.

between the government and the mining industry continues. In the

:07:45.:07:50.

latest move, the plan is to force mining industries to make

:07:51.:07:52.

downpayments towards the cost of building new smelting facilities.

:07:53.:07:57.

The row began in 2009 when the law was passed which required companies

:07:58.:08:01.

to process mineral ores inside Indonesia and allowing only exports

:08:02.:08:07.

of processed minerals. The law was relaxed to a degree but finally

:08:08.:08:14.

implemented last month. A earlier spoke with an expert and are simple

:08:15.:08:18.

or detail on the law and how this is impacting the mining sector.

:08:19.:08:24.

It has been on the cards since 2009. It seemed very confused and ill

:08:25.:08:33.

formulated. In the lead up to the intimidation of this requirement

:08:34.:08:36.

that it be processed on shore, it turns out that the mining Minister

:08:37.:08:43.

was try to ratcheted down bit because... Job losses have very been

:08:44.:08:48.

there because of fluctuation in commodity prices. I relight it is

:08:49.:08:53.

the more of this job reduction as a result of this new law? It depends

:08:54.:09:01.

now on how it moves forward. The miners are trying to negotiate with

:09:02.:09:08.

the government to try to ratchet down. If they can, they will carry

:09:09.:09:12.

on with exports because they have installed. If that happens, jobs are

:09:13.:09:17.

preserved. If exports continue to stall, going forward, we will expect

:09:18.:09:23.

a job losses to persist. It is an election year. We will indeed see a

:09:24.:09:29.

new president come to power. Could he overturned this law to basically

:09:30.:09:38.

appease the mining industry? Not overturn the law. Leading up to

:09:39.:09:40.

elections, there is no way they would do that. After the elections,

:09:41.:09:46.

the President, the new president, will be limited in what he or she

:09:47.:09:49.

could do. They could try to tweak it a little more and appease some of

:09:50.:09:55.

what the mining is -- miners are demanding that the overall plan is

:09:56.:09:58.

to process the mineral or onshore, that is now part of the Indonesian

:09:59.:10:00.

landscape for. -- for miners. A quick look at the markets. Some

:10:01.:10:07.

volatility in some of these markets. The South Korean market is flat at

:10:08.:10:24.

the moment but we are seeing gains for some key markets.

:10:25.:10:32.

Thank you for investing your time with us. Sport today is up next.

:10:33.:10:41.

The top stories this hour: Aid workers in Syria have evacuated more

:10:42.:10:49.

than 600 women, children, and elderly men from the city of

:10:50.:10:50.

Download Subtitles

SRT

ASS