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Now on BBC News all the latest business news live from Singapore. | :00:00. | :00:15. | |
The ousted boss fights back. More on the e-mail which lifts the lid on | :00:16. | :00:23. | |
India's Tata group. The Indonesian finance minister vows to hunt down | :00:24. | :00:28. | |
tax avoiders, speaking exclusively with the BBC. I am going to chase | :00:29. | :00:33. | |
you wherever you are going to go and hide your assets. I am going to also | :00:34. | :00:37. | |
ask international community to support this effort. | :00:38. | :00:43. | |
Welcome to this edition of Asia Business Report. | :00:44. | :00:50. | |
The ousted chairman of India's Tata group lashed out at the way his | :00:51. | :00:58. | |
sudden departure was handled. In a no holds barred e-mail to the board | :00:59. | :01:05. | |
seen by the BBC, he says he became a lame duck chairman and alleges | :01:06. | :01:09. | |
constant interference including being asked to sign off on deals he | :01:10. | :01:15. | |
knew little about. He warned the company risks huge write-downs | :01:16. | :01:18. | |
across the business. Our correspondent in Mumbai has more. It | :01:19. | :01:25. | |
is turning out to be a dramatic turn of events for Tata. Cyrus Mistry has | :01:26. | :01:28. | |
made shocking allegations in a letter written to them, and in it he | :01:29. | :01:37. | |
says he was never given a free hand to operate as chairman and he says | :01:38. | :01:42. | |
he was a lame duck chairman. He alleges that he was the previous | :01:43. | :01:46. | |
chairman of the group and also interim in charge, he says he | :01:47. | :01:50. | |
interfered with major decisions and it was on Mr Tata's insistence that | :01:51. | :01:55. | |
Cyrus Mistry went ahead with a tie-up with AirAsia to form AirAsia | :01:56. | :01:59. | |
India, domestic airline company here, alleging there were ethical | :02:00. | :02:03. | |
concerns about some of their dealings involving that company. The | :02:04. | :02:09. | |
letter is also an indicator of just how much trouble Tata's businesses | :02:10. | :02:13. | |
are in. He says apart from Jaguar Land Rover and Tetley tea, all of | :02:14. | :02:16. | |
the other companies are struggling. He says it he inherited a host of | :02:17. | :02:21. | |
debtridden companies and he strongly defended his actions to try and cut | :02:22. | :02:29. | |
loss-making ventures. As we know, in May, Tata initiated the UK steel | :02:30. | :02:33. | |
business and want a joint-venture partner. It has sold off many assets | :02:34. | :02:38. | |
in its hotels company. And so he says he cannot believe he was sacked | :02:39. | :02:43. | |
for nonperformance. Now, the Tata group says so far it has no comment | :02:44. | :02:48. | |
on these allegations. To put the story in context, Tata is a company | :02:49. | :02:54. | |
that in India is seen as a respectable firm. Many people here | :02:55. | :02:59. | |
are proud of the brand, seen as a socially responsible company, so for | :03:00. | :03:02. | |
these allegations to come out in public is of course a major cause of | :03:03. | :03:07. | |
concern for anyone connected with Tata, whether it is employees or | :03:08. | :03:13. | |
investors. Many would say it is also a sad development. | :03:14. | :03:20. | |
The national stock exchange has confirmed with the BBC that it has | :03:21. | :03:28. | |
soared clarification from Tata about allegations made from Cyrus Mistry | :03:29. | :03:32. | |
-- sought. Samsung's bottom line was burned by the Galaxy Note 7 scandal. | :03:33. | :03:39. | |
The world is that large a smartphone maker has written a $5 billion in | :03:40. | :03:44. | |
legal expenses and lost sales. Operating profit has fallen by 30% | :03:45. | :03:50. | |
for the period from July - September, that is compared to the | :03:51. | :03:55. | |
same quarter last year. The company says is confident things will pick | :03:56. | :03:59. | |
up in the next period. Earlier, Jake Saunders from ABI research told me | :04:00. | :04:04. | |
why Samsung's rivals haven't been able to take advantage of Galaxy | :04:05. | :04:09. | |
Note 7 issues. In this interconnected world, you get a | :04:10. | :04:13. | |
phone from Apple, not all components are made by Apple, and one of the | :04:14. | :04:17. | |
ironies is one of the suppliers of the screen is Samsung. So, there are | :04:18. | :04:22. | |
compliant and contract orders but it is difficult to find alternative | :04:23. | :04:27. | |
suppliers, for example, Sharp, they could step in, they have contract | :04:28. | :04:32. | |
volumes, this is the time for production because fourth quarter is | :04:33. | :04:35. | |
when you sell the big chunk of phones. With this tremendous loss | :04:36. | :04:40. | |
for Samsung Electronics and the reputational damage, could we see a | :04:41. | :04:48. | |
Samsung Electronics being split two ways, which has been advocated by | :04:49. | :04:52. | |
some shareholder activists? There is that agitation. They want to get | :04:53. | :04:58. | |
past the Note 7, because next year in February time, we should see the | :04:59. | :05:04. | |
announcements for the S8 smartphone, which is their big flagship phone, | :05:05. | :05:08. | |
that is coming out, they need to get the story behind it, but there are | :05:09. | :05:14. | |
around 800,000 Note 7s out there. Should they come out with the S8 or | :05:15. | :05:20. | |
a brand-new phone? The S8 is the smartphone, the Note 7 is the | :05:21. | :05:24. | |
phablet. There is debate if it will come out. I think they want to keep | :05:25. | :05:30. | |
the sub rant in place. -- brand. Indonesia is trying to reform the | :05:31. | :05:38. | |
tax system as part of that tax amnesty programme. In any clues | :05:39. | :05:43. | |
interview Indonesia's finance minister told our correspondent the | :05:44. | :05:46. | |
government will go after tax avoiders inside out outside of the | :05:47. | :05:50. | |
country once the amnesty programme ends. Indonesia has a low tax ratio. | :05:51. | :05:57. | |
Even if you compare with the same middle income country or even low | :05:58. | :06:01. | |
income country, that is not acceptable. It is incredibly low, | :06:02. | :06:06. | |
isn't it? It is only 10.9%. You've received a lot of praise for the tax | :06:07. | :06:10. | |
amnesty programme Indonesia is carrying out. Citibank saying it is | :06:11. | :06:15. | |
one of the best in the world, but it has been very controversial in | :06:16. | :06:18. | |
Indonesia with demonstrations on the streets, protesting on social media | :06:19. | :06:24. | |
and challenges in the constitutional court for people who say it is an | :06:25. | :06:28. | |
unfair system and is effectively pardoning people who have been | :06:29. | :06:34. | |
dodging paying tax for years. How do you ethically justified the | :06:35. | :06:37. | |
programme? This is nine months which we will declare it is your | :06:38. | :06:41. | |
opportunity and it is up to you. After that, the states have the | :06:42. | :06:47. | |
power -- the state has the power to in force to hundred % fine or I am | :06:48. | :06:52. | |
going to chase you wherever you go and hide your asset. I am also going | :06:53. | :06:55. | |
to ask the international community to support this effort, because I | :06:56. | :07:01. | |
don't want to hear that taxpayers can easily evade and hide their | :07:02. | :07:07. | |
income and their assets safely in a tax haven without any consequence. I | :07:08. | :07:13. | |
think it is not fair for many countries in the world. And also it | :07:14. | :07:17. | |
is not fair for many taxpayers of different countries. They also | :07:18. | :07:25. | |
contribute a lot of development support to developing countries. | :07:26. | :07:28. | |
Taxpayers want to see this work will have a much more just... In terms of | :07:29. | :07:35. | |
tax enforcement. The Indonesian tax minister speaking with our | :07:36. | :07:38. | |
correspondent. Now to the US election and China has featured | :07:39. | :07:42. | |
heavily in it with the Republican candidate Donald Trump accusing it | :07:43. | :07:46. | |
of stealing US jobs and threatening to impose tariffs. The democratic | :07:47. | :07:50. | |
nominee Hillary Clinton has promised tougher enforcement of existing | :07:51. | :07:54. | |
trade laws, so with less than two weeks to go until polling day, what | :07:55. | :07:59. | |
effect has China's rise had the US job market? Year is McDonald. On one | :08:00. | :08:05. | |
estimate the trade deficit with China is responsible for displacing | :08:06. | :08:11. | |
3.2 million jobs in the US -- here is Mr McDonald. Now, China has been | :08:12. | :08:17. | |
accused of manipulating its currency of subsidies, labour rights and | :08:18. | :08:21. | |
dumping massive amounts of products like aluminium onto the global | :08:22. | :08:24. | |
market. Something like that has had an impact here on the industry. We | :08:25. | :08:31. | |
lost 847 union jobs, well paying jobs, good benefits, a lot of people | :08:32. | :08:35. | |
are still laid off because they couldn't find jobs and some of the | :08:36. | :08:42. | |
people have moved. I think the dumping of materials, from China, | :08:43. | :08:46. | |
whether it is aluminium, steel, tyres, they are flooding our | :08:47. | :08:51. | |
markets. What happened with aluminium I believe is a direct | :08:52. | :08:57. | |
result from the dumping of materials here at this facility. We have a lot | :08:58. | :09:01. | |
of people that are unemployed. There are no jobs. US manufacturing is way | :09:02. | :09:09. | |
down. China is still the world's factory floor but its economy is | :09:10. | :09:13. | |
maturing. Wages are rising, it is no longer as cheap as it once was. In | :09:14. | :09:18. | |
fact, even some Chinese companies now see the advantage of setting up | :09:19. | :09:24. | |
shop here in the US. One of them is China's largest automotive glass | :09:25. | :09:27. | |
manufacturer that now has a factory in Ohio that employs more than 2000 | :09:28. | :09:33. | |
people. Natural gas in China costs about four times what it does here | :09:34. | :09:38. | |
per unit. And electricity is about double. Our customers love the fact | :09:39. | :09:42. | |
that we are right down the road, not across the ocean, which eliminates | :09:43. | :09:47. | |
the cost as well, it eliminates ? and shipping costs. Labour is | :09:48. | :09:50. | |
significantly different. Multiples different. We have defined ways to | :09:51. | :09:57. | |
deal with that. You have to look at our factory, versus the setup of the | :09:58. | :10:02. | |
factories in China, and you would find there is more automation in | :10:03. | :10:06. | |
this factory. This is real investment and real manufacturing | :10:07. | :10:08. | |
capacity capability and technology with real jobs for real people. | :10:09. | :10:13. | |
Between 20- 25% of the US market should be produced title this | :10:14. | :10:18. | |
facility. China's impact on the labour market has been a hot topic | :10:19. | :10:22. | |
through the election and it is clear that the next president will have | :10:23. | :10:25. | |
their hands full not just managing the world's largest economy but also | :10:26. | :10:29. | |
its relationship with the world's second largest. | :10:30. | :10:33. | |
Timothy McDonald. Thank you so much for investing your time with us. I'm | :10:34. | :10:35. | |
Rico Hizon. Sport Today is up next. President Rodrigo Duterte | :10:36. | :10:40. | |
of the Philippines has suggested he wants all US forces | :10:41. | :10:45. | |
to leave his country Doubt over Formula's One's | :10:46. | :10:49. | |
future in Malaysia. | :10:50. | :10:52. |