01/08/2016 Asia Business Report

slavery. Theresa May says she will make it her mission to help rid the

world of what she has called a barbaric evil.

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

Security and corruption in Malaysia, Wildey 1MDB scandal drives investors

away from the country? Last hours among golden temples. We

find out who is benefiting from Phnom Penh's building boom. -- will

be. Good morning, Asia and hello, world.

It's Monday, the start of a new trading week and glad you could join

us for this edition of Asia Business Report. I'm Rico Hizon. More fallout

from the corruption scandal surrounding Malaysia's state

investment fund, 1MDB. The man in charge of investigating the Prime

Minister Naji Razak's finances is reportedly stepping down due to

political pressure. If confirmed Abu Kassim Mohamed will be leaving his

post more than two years early. Some critics have suggested that Malaysia

is new security laws are partly aimed at containing the fallout from

the 1MDB saga -- Malaysia's. Still, Malaysia does better than many

neighbours when it comes to measurements of corruption. Word

??DELWOR the corruption the perspective index ranks Malaysia 55

globally, considerably better than Indonesia, the corruption the

perspective index ranks Malaysia 55 globally, considerably better than

Indonesia, the Philippines, Vietnam and other south-east Vietnam and

other south-east Asian neighbours. What could be behind the our

Malaysiaour Malaysia analyst gave us his view.

You could argue he left for personal reasons but this is still the

undercurrent we have in Malaysia and politics at this juncture. Is it

because you think of the 1MDB scandal? I certainly think one can

point to that as a possible reason. The whole issue about the

investigation and corruption has been in the forefront of many minds

both internally and externally of Malaysia itself. Certainly I would

say one can look at the possible introduction of a new security act

as another catalyst. But at the end of the day, who knows? It is really

part and parcel of the development you want to see over the past few

years in Malaysia. It's all happening at the same time, the 1MDB

scandal, the investigation of the anticorruption agency then this new

security act, could this impact the credibility of Malaysia as an

investment destination? Interesting question. We have seen investment in

the region slowing down but when you look closely at Malaysia, despite

what's been happening on the political front, money is still

coming through, not as much as it used to be. One source of funds that

we see being invested in Malaysia, Singapore, traditionally has been,

and I think it still is, seeing funds coming from outside the

region. China for instance in best in King infrastructure from roads to

schools and universities as well. -- investing in. Life goes on in

Malaysia. That's why from an overall law and order respective in

Malaysia, things are remaining relatively stable. What about on the

corruption issue? In the transparency international survey it

ranks high in terms of transparency compared to neighbours. It is one of

these things that is unique about Malaysia, there is plenty of noise

outside of the country itself. Domesticly you are still finding

that as long as there is a job and food on the table, life goes on for

most Malaysians. They take all these things in their stride.

Shares in Japanese electronic giant Sony are up by 2% in early Tokyo

trade despite its 74% fall in profits reported last week. Net

profits plummeted by more than 200 million US dollars, they came in

better than expected. A production halt following a major earthquake in

Japan and a stronger yen against the dollar were blamed for the slump.

Sony's Mobile group is also now in the black, although now by the

slimmest of margins. Preliminary data out of South Korea

shows exports for July falling 10% compare to a year ago, this is a

much bigger drop than expected. China is South Korea's largest

export market followed by the US. Last month the bank of Korea revised

its outlook for 2016 with expectations economic growth and

inflation would be lower. In a further indication of the strain on

its economy from sluggish global growth.

Myanmar's ruling National League for Democracy has laid out its economic

policy, much of it will depend on reforming the country's investment

climate. Myanmar has spent several years opening up but new laws aimed

at putting foreign and local companies on a similar footing could

have an impact. Jester is a regulatory expert at a law firm and

he explained how the regulations will impact both local and foreign

businesses. They have the inherent advantage,

which clearly the new government is trying to make sure that the foreign

companies don't feel discriminated in terms of coming into the country.

Of course there is some concern about the smaller companies.

Absolutely. If there would be a level playing field for them against

the big boys in the foreign investment community and the local

investment companies. The concern is for the smaller companies in terms

of access to finance. There's probably something that the new

economic policy doesn't seek to address as fully as what we would

have liked. But certainly when it comes to foreign companies I think

you are looking at the type of reforms that have been going on for

the past few years. The new government will continue that I

think and open up the economy to more foreign investors. Having

practised there for a number of years, what would your advice be to

the smaller companies who also want to make it big in Myanmar? One is

obviously the homework they need to do before going into a country like

Myanmar. Second obviously is understanding how the system works,

the cultural dimensions of how businesses are done in the country.

And I think the familiarity with the laws and regulations is a key

criteria. Chester, in terms of industries and sectors, where should

there be more focused on right now? Currently there's way too much focus

in terms of the Natural Resources the Ashmore focus. What I hope to

see is certainly the government trying to encourage more

manufacturing -- national resort sector -- Focus. This is where they

will have an advantage with low labour costs -- Natural Resources

sector. Ambo dear's capital Phnom Penh is on

the rise. Glass, steel and concrete mega structures are beginning to

dominate the city's skyline. But as the capital grows there are concerns

many of Phnom Penh's residents will be squeezed out by the frenzy of

construction projects. Nick Wood reports.

Ten years ago much of this wasn't even here. Phnom Penh's

transformation from a sleepy lowrise city on the banks of the Mekong to a

rapidly modernising Southeast Asia and Metropolis has been staggering.

The city once known as the Pearl of Southeast Asia has doubled its

population in just four years. That's led to a building boom of

almost unprecedented scale. As you come through you will see the

kitchen, the dining area, the living space and also the balcony all in

one open floor plan. Our market tends to be a little bit on the

higher end, we have customers who are coming back to Cambodia.

Entrepreneurs, business owners, high-level executives in companies.

It's marketed towards people who kind of want that Western lifestyle.

With foreign direct investment now at an all-time high combined with

comparatively low land prices and cheap labour costs, Phnom Penh's

building boom now rivals many of its ASEAN neighbours. In the first three

months of this year, more than $1.6 billion was poured into construction

projects in Phnom Penh. In terms of the number of individual condos

expected over the next three years, it is 45,000 condos that are

currently projected to come online, which is truly extraordinary growth.

But not everyone's a winner, as demand for high-rise offices, malls

and luxury housing developments crowd the skyline, many locals are

being left behind. Derelict buildings like this for now at least

remain home to of families. TRANSLATION: I would love to live in

an apartment up either because it's a good environment. But we don't

have enough money to afford those kinds of apartments. But at least

living down here we can earn some money with our small businesses. The

government isn't planning well. I don't think they could care less

about the poor. If our country is really democratic they have to think

about the poor people in their plan for the housing. If not maybe the

poor people will not support the government any more and then they

will vote for change. Cambodia's capital now has over 600

large-scale construction projects either approve or underweight. The

challenge for the government is how to spread the benefits of this

massive construction boom. Nick Wood, BBC World News, Phnom Penh.

A fast look at the markets, the Nikkei is down and the all ordinary

is up. Thanks so much for investing your time with us. I'm Rico Hizon.

Bye for now. -- all Ordinaries. I'm led bogus echo. The top stories

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