11/03/2014 Asia Business Report

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

As the surge of the missing Malaysia Airlines flight continues, we take a

closer look at airports and airlines security measures. Pawnbroking in

Asia - we find out why it is no longer seen as a last resort for a

loan. Welcome to the broadcast. As the search for flight MH 370

continues, analysts say that the Malaysia government and Malaysia

Airlines will have to improve security. At least two people were

able to board a flight using stolen passports. It is not known if the

disappearance was an act of terrorism or if the stolen passports

were linked, but even if they won't the event has put the spotlight on

people travelling with stolen documents. I asked our guest what

the effects would have on Malaysia and its airlines. It will have some

effect on Malaysia Airlines which will vary if it is related to

engineering or pilot fault. It will have a major effect of the

credibility of Malaysia as a country to provide State transit through

Kuala Lumpur and other Malaysia and ports. How should Malaysia

authorities further improve airport security? They should have followed

the most stringent requirements and use the Interpol list of stolen

passports to check the passenger manifest provided by the carrier.

They do not do that because these passports have been missing for some

time when they were stolen in Thailand yet somebody can fly out of

Kuala Lumpur with them. You also have five people who did not board

the aircraft and we do not know whether their baggage was removed

from the aircraft as is the international convention. Would it

be costly for Malaysia to upgrade safety and security or is it just

about improving efficiency and co-ordination? It is about doing the

job properly. They have the people and equipment that may nobody has

thought of a priority to do something about the stolen passports

list and the computing required to run that list is not very high.

Somebody has their priorities wrong in the Malaysia government. It is

not only Malaysia that has to improve safety and security but also

the rest of Asia. It varies from country to country. Some 40% of

countries do not do this verification. In Malaysia, the

country as a transit point for traffic between Europe, Australia,

and the rest of Asia. People may choose not to use Kuala Lumpur or as

a hub and go to SA club like Singapore so it may have a major

effect on Singh of -- effect on Malaysia Airlines. In other business

news, shares and some of the world 's biggest mining companies have

been hit by a slump in the price of iron ore amid fears of a slowdown in

China's economy. Iron ore delivered to the mainland fell 83% after

Beijing reported -- eight .3% after Beijing reported a slowdown in

exports. Analysts are concerned about a slowdown affecting profits

in mining companies. A huge loss of Bitcoins has taken place and Mount

Cox, the world 's largest Bitcoin exchange, has gone bankrupt. The

bankruptcy judge in America has agreed to temporarily halt legal

action against the company and protect its assets. Today is the

third anniversary of the earthquake in Japan which also precipitated the

Fukushima nuclear disaster. In addition to the human tragedy, has

had a significant impact of the Japanese economy. The country 's

nuclear power facilities remain switched off in the country now

relies on imported coal, liquefied natural gas, and other fuels.

Analysts say it is one factor among many that is contributing to the

country 's sluggish growth. Earlier I spoke to an analyst from HSBC and

asked about the impact of the disaster. The biggest impact has

been the rise of energy costs. Since the disaster, Japan's fuel import

bill has soared. Japan has become the number one importer of liquefied

natural gas and the number to import of oil. Because of the weaker yen,

this has put a big dent in electricity costs as well. A lot of

problems in Japan. Now you have the likes of Shinzo Abe trying to pump

up the economy. Is it sufficient? There has been sluggish growth in

the last quarter of 2013 and a rising current account deficit. The

regime 's hope is always to generate an export led recovery but where his

expectations have been defied is the fact that because global demand

remains weak and because there's bits are much manufacturing that has

gone offshore, Japanese exports have been sluggish over the past year.

Will this continue as we approach this April first sales tax hike? We

are hoping that it will certainly can transfer from a consumption led

recovery to an export led recovery. Given the tone of global demand

exports will remain weak in early 2014 and domestic and hope for is a

gradual recovery. Will they be help from the bank of Japan? -- there be

help from the Bank of Japan? At today's meeting they will keep

policy on hold. Markets expect action in April but they might wait

longer. Inflation is trending in line with expectations and they will

not want to move prematurely. Pawnbroking is one of the world 's

oldest professions but in much of Asia the industry is taking on a new

shine. Lisa Key has more. This man has regularly started

making trips to the pawnshop, to exchange jewellery for cash.

Singapore is the world 's expensive city. In the current situation with

the cost of living we do porn more jewellery. The gold price has also

gone up so it is in our interest to sell our jewellery because the cash

we get is higher. People can get loans against what seems like almost

everything. But there are exceptions. The price offered for

possessions is usually lower than the actual value and if you not pay

back the loan plus interest you lose the item to the resale business in

the shop. But pawn shops charge you to borrow money and that can be very

high. Interest rates are a maximum of 1.5% per month in Singapore were

as elsewhere they range from 5% to 7%. On an annual basis, that adds

up. Why do people still come here? Pawn shops like this one are

increasingly popular in Southeast Asia because it is easier to come

here for a loan then to the bank. You can turn in an antique watch and

get a couple of hundred dollars. A fountain pen will get you a thousand

or even a gold bar for $16,000 in cash. Or perhaps as one customer did

he sold 80 24 carat diamond. The weak state of the global economy has

not helped. Consumer debts have been rising and for lower to middle

income families with bills to pay sometimes a monthly salary cheque is

not enough. That is true especially in Malaysia, Singapore, and

Thailand, which have the region 's highest levels of household debt

stock. At least three pawn companies have gone public in the last year.

Pawn shops have not always had the best reputation and a famously known

as a lender of last resort. But as traditional banks face pressure from

increased regulations, pawn businesses that make it easy to

borrow are set to benefit. Before we go here is a quick look at

Asian markets. There is concern about the slowing

Chinese economy. Thank you for investing your time

with us. Sport Today is up next. The top stories this hour. The

search has been widened but there's still no sign of Malaysia Airlines

flight 370 - which vanished three days ago.

NATO is deploying reconnaissance planes to Poland and Romania to

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