13/06/2014 Asia Business Report

and positive news for savers. Now on BBC News, all the latest

business news live from Singapore. As World Cup fever takes hold in

Asia, we look at how companies can cash in on the action.

And how Indonesia's growing appetite for chocolate is fuelling a new

business opportunities. `` fuelling new.

Thank you for joining us for this edition of Asia Business Report. I'm

Rico Hizon. You could not have missed it. Brazil has kicked off the

World Cup in style, winning off the first match against Croatia 3`1. But

this is not just about the fans. Football is big business. Companies

have paid up to $200 million to associate their brands with what is

one of the largest events on the global sporting calendar. As a

result, FIFA is estimated to make more than $1.4 billion over a

four`year World Cup cycle. Adidas has signed up until 2030. What about

other businesses? We look at why there are no big Asian brands. The

huge pricetag. The top tier sponsors will pay $1.3 billion just to

associate themselves with the event. For a lot of companies, that is out

of their price range. What big Asian companies are trying to make money

and the sponsor around the World Cup? The smart companies will attach

themselves to the event, not the World Cup. They are attaching

themselves to football. Sony are launching their 3D TV. Toshiba have

a campaign, if your home country wins the event, you get a TV free.

They are not attached to the World Cup, but they are basking in the

glow of football. You have this halo effect. What about the smaller Asian

companies? How are they leveraging themselves around the World Cup? Are

they using social media? The smaller companies are using the fans to

provide the content and the information. They are becoming the

conduit. The big brands talk to the fans. The smaller brands are helping

the fans connect with each other. They are producing contact content

and material. It is all about the gimmicks? It is about who is the

smartest brand. Who can connect to what consumers and fans believe.

As India's new government starts work, we've been looking at the

economic challenges it faces. India spends more than $20 billion on

making fuel cheaper for its people. But producing those subsidies is a

sensitive issue. You would find a red cylinder like

this one in virtually every Indian household. It contains gas that is

used for cooking. The government gives every family 12 cylinders each

year for $84. Less than half the cost price. But, for many, with six

mouths to feed at home that is not enough. TRANSLATION: One a month

isn't sufficient for my family. If I have to buy gas at the actual price,

that is money we can spend on our children's education and health. As

it is, our incomes aren't high. A change in gas prices effects

virtually every person in India. But subsidising the fuel is also a

burden on the country's finances. Because India imports most of the

fuel needs. `` its fuel needs. A chunk of that is spent on making

diesel cheaper. The cost of this fuel has been at the centre of many

political debates. During the tenure of the last coalition, an important

ally walked out of government because of a hike in diesel prices.

Diesel is used in lorries like these, which transport everything

from fruit and vegetables to consumer goods. So, making the fuel

more expensive means everything ends up costing more. But the new

government won the recent election with a majority. Will they be

stronger on fuel prices? When you get aggressive towards reducing the

subsidy, it becomes unpopular. The government has come up with a

mandate that has been given by popular demand. Especially in the

context that people aspire to. That is government should reduce the cost

of living and inflation. These motorists will be watching what

happens closely. But with high expectations at home to keep prices

low and pressure from credit ratings agencies to make India financially

stable, this is a delicate balance the new government has to strike

early in its time in power. Tesla's Chief Executive says that

are moving to speed up the development of electric cars. The

firm sold just under 23,000 of its new model last year.

Expedia has become the latest company to accept bitcoins as

payment. It is restricting the trial to its US website.

Water may be a scarce resource in many places, but it can also be

crucial for businesses. Like Coca`Cola. We spoke to the director

of its water switch programme. There are certain times and places, take

the midwest of the United States, take northwest India, the north of

China, water supplies are limited. That's being exacerbated by overuse.

The amount of water that is replenished naturally, through rain,

snow, ice, can't keep up with the amount of water being used by

civilisation. Has water become the oil of the 21st`century? The

comparisons to oil suggest a level of scarcity. And competition. While

that is true in certain times and places, you can face water stresses

from scarcity to quality, the amount of water on earth is fixed. It is a

finite resources. You can't create or destroy it. It is renewable.

Unlike fossil fuels, oil, coal. What's more is Coke going to do to

respond to criticism that it is using up valuable resources in water

stressed areas? The programmes, the partners and the progress we have

made over the last ten years has shown an evolution. A maturity in

the understanding of water issues and our response. It does not mean

we're done. The 500 projects we have with partners in 3000 communities

around the world, the investments we have made, it is the beginning.

Water is always going to be required. There is always going to

be something to do. With rising incomes, Indonesians

have aquired a taste for chocolate. You would be hard pressed to find

any good`quality chocolates made in the country.

Nobody would call these an Indonesian delicacy. Chocolates in

Indonesia used to contain more on milk and sugar than cocoa. But there

is a growing appetite. The owners began selling chocolate 13 years

ago. They started the business from home. But it has grown to 13

outlets. They use cocoa powder and butter from Belgium. We want to

maintain our quality. It doesn't mean we don't trust the quality of

Indonesian chocolate. But we can export to another country. Some of

the best cocoa beans actually come from right here in Indonesia. Like

those grown by villagers on this island. This is where a lot of the

cocoa beans come from. There is a variety of trees here. But these

farmers make most of their money from cocoa. These beans end up in

some of the best chocolates in Europe, not Indonesia. But things

may be changing. An American food processing company has been sourcing

cocoa beans from Indonesia for nearly 20 years. Now it's investing

in a $100 million cocoa processing plant in Indonesia. Its first in

Asia. Given the rapid growth of cocoa consumption in Indonesia and

Asia, and the fact that Indonesia is the third largest producing company

in the world, the next step for the region would be a cocoa processing

plant. Harvest time. The mood is jubilant.

Good`quality cocoa has nearly doubled these villagers' income. If

chocolate making becomes an industry here, there's hope for an even

better future. A quick look at the markets. All

Asian stock markets are under pressure. Thank you for joining us.

The sport is next. I'm Mike Embley. The top stories

this hour: President Obama is said to be considering options, including

the use of airstrikes, to help the Iraqi government counter the

Islamist insurgency. And Brazilians have been celebrating after the host

nation won the