15/05/2014 Asia Business Report

systemic rivalry by mainland officials. `` bribery. And why the

Asian delicacy abalone is a growing business for New Zealand.

Thank you for joining us on Asia Business Report. Is China becoming a

more challenging place to do business. One of the world's largest

pharmaceutical companies is under pressure after Chinese authorities

accuse a GlaxoSmithKline executive of bribery. China's police ministry

is accusing the company's former head of China operations and two

other colleagues of robbing a mass of hybrid network. `` running a

massive bribery. Other foreign companies have faced similar

accusations. Earlier I spoke with our correspondent to find out what

the reaction has been to this latest development. The case is being

followed with interest. There is a sense that it is the biggest scandal

to envelop a foreign multinational company in a number of years. What

is interesting about the police ministry's statement is that up

until now reported in the foreign media quoting unnamed Chinese

sources there was a sense that it was only going to be Chinese

executives who are going to be charged. This statement at least

makes that look a little less likely this morning. As you say, they

accused Mark Reilly of running this massive bribery network. They appear

to believe at the end of this investigation that they have

evidence that the wrongdoing was ordered from the top.

GlaxoSmithKline has over the course of the investigation admitted that

some of its staff may have acted outside of the company's guidelines.

But it has denied that there has been any kind of systemic

corruption. In response to the allegations, this statement from the

Chinese police, it says they will continue to fully incorporate. They

want to continue to make an important contribution to the health

and welfare of China and its citizens. What is the sentiment on

the ground? Our foreign firms being targeted by mainland officials? You

can be certain that what has happened over the past year

reinforced even further this announcement by the police ministry

naming a former senior executive in China, you can be certain that will

have sent a chilling effect through the foreign business community.

There is a sense of nervousness. You can be certain that other foreign

drugs companies have been looking carefully at their own operations.

The police have been speaking to a number of them.

In other business News, fresh figures from Japan show its economy

expanded by 1.5% in the three months on till March compared to the

earlier quarter. There had been a forecast of 1%. Capital spending

increased beyond most forecasts. Shares in Sony fell more than 6% in

Tokyo trade after the firm said it it will probably remain unprofitable

for the next financial year. It posted a loss of $1.2 billion.

The reports put pressure on the chief executive, whose aim has been

to turn the company around amid restructuring efforts.

Better than on Wednesday, citing rising profits in the mobile gaming.

The income until March claimed by 60%.

How fond are you of your bank? Is it just a place to put your money or do

you buy other products such as insurance or retirement? We report

on how some of the world's biggest electronics commerce businesses are

giving banks are run for their money.

We are used to putting our money on the bank and taking it out, perhaps

taking out a loan or investing it out, perhaps taking out a loan or

investigate any wealth management fund. But for a growing number of

customers, there are more alternatives and convenient options

to traditional banking. Take the e`commerce giant Aly Baba. It is one

of the largest in the world. There is also can send. The move by

e`commerce firms into money management has worked in China and

has the potential to work elsewhere. But it poses challenges for banks

across the globe, including here in Singapore. I am talking to the head

of innovation at the BS. How big a threat is this to the traditional

model? They are a significant threat. They have a significant

potential to eat our lunch as a business. We see them setting up

networks, the domain of traditional banking. We are in a unique position

in Singapore. We know about these firms in the press. $80 billion in

funds over eight months. How can you compete on the payment site? It is

tied up in everything they do. Banks need to be understanding customers.

We have started a number of projects. Data will be one of them.

Many technology start`ups are looking to be acquired by banks. We

see them in a partnership model as well a threat model. What can banks

do to protect their market share? We need to take the learnings from the

industry, how to understand customers better and be part of the

customer 's lives. The new digital age has created

problems for the banks, to build stronger relationships with their

customers. To expand their business even further.

It is really be in the Asia`Pacific region that the shellfish abalone is

a popular delicacy. It has a pricetag to match. Fishing for it is

heavily restricted. Illegal poaching was a cause of the world's first

ever underwater arrest. New Zealand has one of the rarest types of the

seafood. It is getting the rewards. It is known by its indigenous Maori

name here. Blackfoot abalone is only found in New Zealand waters and it

is a tech literacy. `` delicacy. Mainland China is the big consumer.

Even locally it is expensive. That price is around $45 per shellfish.

To find out why, we join a group of recreational hunter gatherers. You

find a shell that looks like a rock. You will see a black outline.

There are laws considering the size of court abalone. You can only take

ten per day. It is cold out there. But this is what is all about. This

is what hundreds of dollars in some parts of the world. There is no

mucking around. It is done straightaway. The texture is similar

to calamari. It is a bit chilly. It has got its own flavour. He is part

of a group called Power to the people. They successfully stood up

to commercial fishermen wanting access to new areas. Basically

making it available is understandable, but it is not good

for the public. There is still plenty left for the commercial

fishermen. Andrew has been a Fisher since the 90s. A hobby that became a

job. Groundbreaking technology is at the forefront for sustainability.

Using all the information available to maximise profits. If we do this

for three years consistently, it will be better than 25 years of what

we have done in the past. Commercial fishers also follow strict

guidelines. The exported abalone industry is worth $43 million. An

increase in live exports could boost profits. A fresh abalone can get to

an Asian restaurant table in 48 hours.

Before we go, a quick look at the Asian markets. Stocks are moving

sideways. Those are the markets at this hour. Thank you for investing

time with us. Here are the headlines: Police in

the Turkish cities of Ankara and Istanbul have fire to a gas and

water cannon at thousands of demonstrators. `` tear gas. The

Nigerian President has refused to swap prisoners for the