21/01/2014 Asia Business Report


21/01/2014

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

:00:00.:00:00.

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

:00:00.:00:18.

International Labour Organisation sees rising unemployment in the next

:00:19.:00:22.

few years. Smaller cars in Malaysia 's - the

:00:23.:00:26.

government unveiling policies which could create big changes for foreign

:00:27.:00:33.

calm and factories. Viewer watching Asia Business

:00:34.:00:38.

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

:00:39.:00:42.

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

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the International Labour Organisation. The study shows not

:00:45.:00:48.

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

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

:00:54.:00:57.

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

:00:58.:01:03.

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

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

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breakdown of the findings. The latest report finds that

:01:16.:01:20.

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

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

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

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will remain very low in developing economies. Nearly 600 million

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

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consumer demand and hindering prospects for business expansion.

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

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Because of the rapid structural transformation taking place, young

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graduates are facing skills mismatch is in terms of what they

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

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

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

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to create jobs that will lower poverty and reduce vulnerability.

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

:02:21.:02:28.

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

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terms of finance and business services to expand their

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

:02:38.:02:41.

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

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help workers have better access to higher quality jobs with higher

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wages. For businesses, this will help increase productivity and

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

:02:59.:03:07.

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

:03:08.:03:11.

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

:03:12.:03:16.

value on the server business which provides equipment for the running

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

:03:20.:03:28.

with incentives for smaller vehicles. Previously, vehicles could

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

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new opportunities for international brands who are looking for new

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

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

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government hopes to increase total production to 1.2 5 million vehicles

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

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

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with Thailand for foreign investment. From now on, foreign

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

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

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

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

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

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quite squared about protecting narrow and is not protecting their

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

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

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

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

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

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

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

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

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

:05:29.:05:32.

including adding more social digital technologies. Now you can control

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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physical delivery of both commodities in food and energy will

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

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

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

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

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

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

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

:07:54.:07:59.

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

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

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

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

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

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

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

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

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Mineworkers are demanding wage increases to the tune of more than

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

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

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

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situation that has been monitored closely internationally, mainly

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

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

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

:09:21.:09:24.

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

:09:25.:09:29.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

:10:51.:10:51.

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