08/08/2014 Asia Business Report

Brunger were stabbed to death on the island of Borneo. Now on BBC News,

all the latest business news live from Singapore.

Malaysia Airlines is to be completely restructured. The

government move to take full control. That way the import and

export business isn't getting the boost it should from free`trade

agreements. Welcome to a `` Asia Business. The Malaysian

government is stepping in over Malaysia Airlines. Khazanah

Nasional has taken over. It had problems even before the recent

disasters. What can you tell us? This has been expected. The other

option was that the airline declared itself bankrupt. Only 70% was able

to be bought freely on the stock exchange. The rest was held by the

state investment firm Khazanah Nasional. Most of that is owned by

the country's pension fund. By privatising the airline, they would

have to buy 30%, valued at over $300 million. This has been costing

Khazanah Nasional and lots of money. Firm has a ready and $1 billion on

the airline. `` has already spent. The company has lost a lot of money.

Its market value dropped dramatically after the tragedies.

Even before MH17 , it had ready lost a lot of money

and with the foreign exchange fluctuation. We are looking at a

complete overhaul? It is going to be a complete restructuring. It is. We

already had some details earlier in June. That was when Khazanah

Nasional had announced it had a huge restructure. The scheme would be in

a period of six months to 12 months. They are going to restructure the

airline and have a complete overhaul. Its business model, it's

operation, its finance, its regulatory. There is going to be a

lot more to come. Thank you. In China, the trial has just begun of a

British investigator and his wife accused of illegally trafficking

personal data. Peter Humphrey and his wife are accused of taking

personal data and selling it. The Indonesian wine cellar Rudy

Kirniawan is going to go to jail for selling fake wine in the United

States. Free`trade agreements are held by government is promoting fair

country 's exports and opening new markets, but how effective are they?

Only one in ten exporters use an FDA. The years, many bars in

Singapore only used locally produced beer. But now with FTAs with

countries like New Zealand, Australia and America, have brought

down prices. This is mostly American and Australian beers. Other traders

also benefit. He has been importing beer from Australia since 2003 when

the free`trade agreement was signed. We say 7% on the cost of goods and

we reinvest that. We do that for seven years. In Asia, Adrian's

business is the exception rather than the rule. FTA at assigned to

improve access, but they're not done much good if companies do not them.

`` use them. The outcome was clear. Governments need to do more to

explain this. There is a silver lining. Businesses

using the set that their exports jumped by 86%. Back at the bar, the

owners are reaping the rewards. While the customers of this back are

blissfully unaware of the benefits of a trade deal, the challenges is

to get more Asian businesses to do the same. To find out what has gone

wrong with FTAs, I spoke to Noel Quinn. The

feedback is that it is too complex and that there are too many. And

remember that a FTA could run to 500 pages. Complexities are putting

people off using them. It is not a matter of the benefits automatically

flowing through. Companies have to work their way through the

bureaucracy to get the benefits? They have to comply with the

conditions of the specific FTA that has been signed. Many are lateral.

That is supposed to multi lateral. What we have found is that the

multilateral FTA that serves a `` ASEAN has a much high utilisation

rate. The bilateral ones only had a 19% utilisation rate according to

the business as we survey. Staying with trade and the impact that it

can have on countries, Russia has released the details of its full

embargo on food imports from the European Union, the United States

and Australia amongst other Western nations. It is part of Russia's

retaliation over sanctions imposed in the crisis in Ukraine. The band

will last one year and includes meat, fruit and vegetables, as far

as dairy imports. In this region, aged effect $370 million of

Australia's agricultural imports. I spoke earlier to Adrian Barath. Bat

Jonathan Barrett. When you look at Australia, it doesn't rank in the

top ten. The GDP represents .8%. It will hurt, but it won't be a

significant hurt. What product in particular are we looking at in

terms of Australia and New Zealand and Russia? In particular, the large

stock of dairy. Russia imports from the EU, America and Australia. It

imports 95% of its dairy. When you see it importing dairy for the

Russians, it is going to have more harm to the local population back to

us. Australia has been very vocal in this. There were a number of

Australians on board MH17. How is this playing in Australia? Have you

had complaints? It is tit for tat. Australia imports more from Russia,

so if it is a tit for tat, you could see it has the reverse action

happening. When you see that, there are less imports from Russia

coming, until they come up for an agreement to remove the embargo. To

recap our top story and breaking news this morning, and that is the

move by Venetia's government to try to rescue Malaysia Airlines. ``

Malaysia's government. Khazanah Nasional is taking control and their

plan is for a complete overhaul. To their markets. That is it for this

edition of Asia Business Report. The top stories this hour: President

Obama has announced that he will authorise targeted strikes against

Islamist militants in Iraq if they move towards the city of Irbil `

where the US has a consulate and military advisers. The Israeli Army

says Hamas has violated the ceasefire in Gaza, firing two

rockets at Israel three hours before the truce