21/01/2014 Asia Business Report


Live from Singapore, the essential business news as it breaks and a look ahead to the news that will shape the business day.

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women who claim he sexually harassed them. -- to four women. Time now put


latest business news from Singapore. Where are the jobs? The


International Labour Organisation sees rising unemployment in the next


few years. Smaller cars in Malaysia 's - the


government unveiling policies which could create big changes for foreign


calm and factories. Viewer watching Asia Business


Report. The world economy may have turned the corner, but the job


market is yet to recover. That is according to the latest report from


the International Labour Organisation. The study shows not


enough new jobs are being created to keep up with a growing labour force.


This is how it looks. Almost 202 million people will be jobless and


around the world last year. That is 5 million more than the previous


year. Global unemployment is expected to continue to rise. There


will be 250 million people seeking jobs by 2015. An economist gave as a


breakdown of the findings. The latest report finds that


unemployment has increased by 5 million. Half of that increase has


been in East Asia and South Asia. It is from a rally attracting young


people. Young jobseekers. In key finding is that the quality of jobs


will remain very low in developing economies. Nearly 600 million


workers are still on too little to escape poverty. This is hindering


consumer demand and hindering prospects for business expansion.


Did we find out why? There are a number of factors team place.


Because of the rapid structural transformation taking place, young


graduates are facing skills mismatch is in terms of what they


qualifications are and what demands are. And South Asia, economic


structural changes have been slower. There has been more labour falls


growth and population growth. It has created more pressure on the economy


to create jobs that will lower poverty and reduce vulnerability.


Not enough jobs are being created. Is there any solution being put


forward to cope with that? It is important to support business in


terms of finance and business services to expand their


opportunities to create new markets. It is also important to help workers


developing new skills and filling the skills gaps we see. This will


help workers have better access to higher quality jobs with higher


wages. For businesses, this will help increase productivity and


competitiveness. We are getting reports that China's Lenovo has


restarted talks to buy part of IBM. The two companies could not agree on


a deal last year. Lenovo had previously placed at $2.5 billion


value on the server business which provides equipment for the running


of corporate data centres. Malaysia has unveiled a new policy on cars,


with incentives for smaller vehicles. Previously, vehicles could


only be manufactured with a size of 1.8 litres. The changes as single


new opportunities for international brands who are looking for new


avenues of growth. Around six and 30,000 cars were sold in Malaysia


last year. That is a 5% growth can purchase sales in 2012. The


government hopes to increase total production to 1.2 5 million vehicles


by 2020. From Kuala Lumpur, respondent explains while that --


why the government is changing its policy. The are trying to compete


with Thailand for foreign investment. From now on, foreign


carmakers can make smaller cars, but only if they energy efficient. The


idea is that there are only two National carmakers who dominate the


market. They produce cheaper cars. They are asking Malaysians to now


have more choices with foreign car makers coming in. It will hopefully


bring down prices by 30% in the next four years. They were previously


quite squared about protecting narrow and is not protecting their


own. What impact do you think this will have? National carmakers know


this is then coming for quite sometime. It is what Malaysians have


been asking for. The average Malaysia is spending a lot of money


per car. Either one of the cheapest cars can cost more than a years


worth of salary for average family. That is just an idea of how


expensive cars are. We have heard some Malaysians we have spoken to


who are concerned about the rising cost of living. Cutting of prices


for cars is a major point for major carmakers. Already they are looking


at more innovative path. They are trying to look at other factors


including adding more social digital technologies. Now you can control


your car through a smartphone. Consumers will buy local brands as


opposed to foreign brands. We saw a muted reaction to China's GDP


figures yesterday. One country which is quite pleased is Australia. It is


China's largest trading partner. The shipment of goods from Australia to


China reached a record high in November. There was a growth rate of


55% year-on-year. The world's second-largest economy imports


mainly iron ore from Australia. I spoke with a resource analyst and


asked him for his reaction to China's latest growth figures. We


expect that China growing at 7.7% to 2013 was actually a very good


number. The markets have been quite pessimistic that we would see,


32013, a heartland if that particular economy. It is not going


down that road at this point. Going forward, we still expect a very


stable and robust growth in 2014. What does that mean for Australia?


How significant is that? It is very significant for Australia. We are,


as you suggested, very big exporters to that particular country. Provided


we do see China growing at a very stable 7%, we think that the


physical delivery of both commodities in food and energy will


continue to enjoy quite robust growth through 2014. What is your


biggest concern when you look at the ties between China and Australia? If


we had one concern for Australia, it is that all of our eggs are pointed


toward one major market. If that major market had some geopolitical


event or perhaps did start a hard landing cycle in its economy,


Australia would unfortunately catch a very serious flu. If there was a


concern, that is it. However, China is such an immense country. It has


the firepower in terms of government policies, high interest rates that


it can keep its economy ticking over. I think Australia will be


well-placed for some years to come to deliver its food commodities and


it's hard rock and energy commodities. Thank you.


Tens of thousands of workers who might half of the world's Platinum


asset to go on strike in South Africa. Japan and China are in the


top five export destinations. The strike is due to take place on


first. Our correspondent has more. -- on Thursday. The Association of


Mineworkers are demanding wage increases to the tune of more than


double what the average mine worker earns at entry level. The South


African finance Mr has weighed in on the issue, saying that South Africa


could not afford more instability in the mining sector. This is a


situation that has been monitored closely internationally, mainly


because South Africa holds about 80% of the world 's platinum reserves.


As a result, the nation is a major exporter to countries in Europe and


also Asia. Analysts have been quite bullish about the sector, saying


that they expected an increase in prices and demand with the increases


and improvements in the automotive sector. Demand is also up in China,


where 80% of Platinum is used in jewellery making. Japan has seen an


increase were that amount is about two thirds the figures we see coming


out of China. They have been some concerns about the expected slowdown


in the Chinese economy. In general, analysts are monitoring the


situation in South Africa's mines. There is a sense that a protracted


strike could holds about half of global production. That a halt.


Markets have crept pretty high at the moment as Japanese stocks are


driven largely by demand for the yen which has dragged stocks from South


Korea and Taiwan. Bull markets currently up. More earnings reports


out of America later today. It will be interesting to see what impact


those markets will have. That is the Asia Business Report.


Headlines: Syrian peace talks are to go ahead after the main opposition


group has said it will attend. An invitation to Iran has been


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