28/08/2014 Asia Business Report


28/08/2014

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report about child abuse in Rotherham. He managed children's

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services between 2005 and 2010. Time for Asia Business Report. The

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Philippines economy bounces back, posting better`than`expected

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growth. Qantas makes its biggest ever loss. The airline's top boss

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faces pressure to quit. Welcome to the programme. Growth for the

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Philippines has performed better than expected in the three months

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till June, expanding by 6.4% from the previous year. Thank you for

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joining us. Where is the growth coming from? Manufacturing was up

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and so were exports, in particular. Agriculture also had a rebound from

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negative growth in the first quarter, as well as construction.

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Over all, we are very pleased with this growth, although it is a little

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bit below the tail end of our forecast. Will you be able to meet

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your target of 7.5% expansion? We believe we are within striking

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distance but what is important is that we are continuing with

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structural reforms to increase the growth potential of the economy. For

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example, we recently approved legislation that will open up the

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banking sector completely to foreign investment. We have introduced

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legislation that will also open up legislation that will also open up

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other sectors, as well as improve the fiscal capacity of the country.

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I think that is what is important. Ever since this administration took

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office, we have averaged a 6% growth rate on the back of increasing

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participation and increasing investment in infrastructure and

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increasing confidence within the community. We hope to continue like

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that. The Philippines is still ranked in the bottom half out of 189

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economies in terms of ease of doing business. It is still one of the

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hardest places in the world to start a business. We have made

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improvements. In the World Economic Forum, we are among the top few

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countries with games across the board. In all of the ratings, the

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Philippines has improved dramatically. And this is a good

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thing, especially for businesses. But one main issue right now is as

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controversial disbursement acceleration programme, which the

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Supreme Court says is unconstitutional but the president

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has said has primed the economy. With the Supreme Court taking this

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away, what will this mean for growth this quarter and going forward? The

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good thing about our system is that we have an option to go back to

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provisions `` refine some of these provisions `` refine some of these

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provisions that were at issue in the Supreme Court. We can do that so

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that there will be no more doubt. Secondly, we can go back to

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Congress. In our system, Congress has the power. The have no

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concerns. Especially since we do have a lot of fiscal space. There is

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still a lot of concern about the Philippines in terms of graft and

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corruption and doing business there. What is the government doing,

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briefly, to improve this? Since the very first day of this

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administration, we have made that our first goal. There will be no

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co`option, `` no corruption, no poverty and there will be good

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economics. That is why we have been pursuing those who have violated

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those laws all the way up to the highest of officials, including the

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Chief Justice of the Supreme Court. We have two senators who went to

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jail for alleged violations of our laws. That is the best evidence that

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we are working to stop that. Thank you for joining us. Record losses

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for Australia's iconic brand, Qantas, otherwise known as the

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Flying Kangaroo. It has reported its worst ever annual results, posting a

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much worse than did $265 billion in annual losses. The chief executive

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is under pressure to sell assets to ease the strain on the airline's

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balance sheet. One of the world's oldest and most

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recognisable airlines is in trouble. Soaring fuel costs and

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fierce competition have resulted in mass redundancies and financial

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losses. Despite its decline, Qantas remains a popular institution at

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home. Australians want Qantas to survive but they are not afraid to

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fly with someone else. It is great that we have had an Australian

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airline for so long. Qantas has an alliance with Emirates and wants the

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Government to relax regulations that limit foreign ownership of the

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airline to 49%. As customers continue to this `` desert. If you

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look at the passenger airline miles, they are diminishing and diminishing

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and diminishing. We does this shrinking stop? It will stop with

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Qantas being taken over. The aviation market in Australia has

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become saturated. Qantas faces relentless competition on both its

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Many passengers feel that an Many passengers feel that an

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overseas takeover is inevitable. Foreign ownership. The mining is

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owned by the Chinese. Everything else is owned overseas. If it keeps

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most of the jobs in Australia, it makes no difference. Qantas's plans

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for a profitable future will come under greater scrutiny. There are

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those who believe that for the flying kangaroo, this could be a

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life or death struggle. At stake are not only thousands of jobs but

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Australia's reputation. Trade unions have threatened strike action over

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job cuts, including in maintenance. Pilots say that decisive action is

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needed to build a stronger airline. It needs to go through a bit of pain

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initially, like what we are doing now, with redundancies and losses.

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It has to be able to justify to the banks and the shareholders these

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injections of capital so it can re`equip the fleet. It needs to be

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able to buy more modern and fuel`efficient aircraft. Qantas has

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been flying for the best part of a century but is facing unprecedented

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challenges. For the famous Flying Kangaroo, the months ahead promise

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to be turbulence. Qantas is not the only regional carrier in tough

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times. Malaysia Airlines is undergoing a major restructure. Its

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majority owner, a state investment fund, is taking the country ``

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company over and is planning significant reforms including job

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before the tragedies of flights MH17 before the tragedies of flights MH17

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and flight MH370. The company's results are very bad. Possibly the

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worst it has faced in its entire history. The second quarter is not

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normally strong and this is exacerbated by the fact that we had

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MH370 and the entire Asia Pacific aviation industry is reeling. It is

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going to be really, really bad. How bad will the numbers be? Our

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expectation is $600 million loss. It is a tough call. Yes and a lot of

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money to lose. Right now, what is being reported in the media is that

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there will be cuts of about 6000 jobs. How painful will be by

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structuring the in the months ahead? It will be very painful, the deepest

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restructure that has ever been attempted at Malaysia Airlines. But

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let us be clear. The objective is to save the airline. At least we will

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have a national carrier because God forbid, if nothing is done, Malaysia

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Airlines will just earn its place in Airlines will just earn its place in

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the history books. It is really bad. To lose 5000 employees or 6000, as

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you mentioned, it is a necessary step. A necessary step but what will

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it look like after restructuring? Will be carrier have a new name? I

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suggested they be very consistent, which is for Malaysia Airlines just

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to be a domestic airline. And we could have some regional routes.

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International flights to not have a business case to survive. Malaysia

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and Australia have signed a memorandum of understanding. They

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have announced that they will jointly fund the search for

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Malaysia's flight MH370. Now, a look at the market. Thank you for joining

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us. Goodbye for now. This is BBC News. The headlines: The United

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Nations has accused government forces and Islamic State fighters of

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conducting massacres and causing immeasurable suffering to civilians

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in Syria. The

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