19/02/2014 Asia Business Report


19/02/2014

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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be delayed by six months. The "care database", as it's being called, was

:00:00.:00:00.

due to begin operating in April. Time for Asia Business Report.

:00:00.:00:13.

Auto rescue. China looks set to tie up with a struggling carmaker. Snow

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in the supply chain. How the weather is effect on businesses across

:00:26.:00:33.

Japan. Welcome to wage a business report. We start with the iconic

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French car maker, Peugeot, which is about to be rescued by the Chinese.

:00:43.:00:48.

In recent years, their cars have sold poorly, and the company has

:00:49.:00:56.

made massive losses. It is being kept afloat by a massive injection

:00:57.:00:59.

of money from the financing arm. Help looks to be on the way. A

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Chinese carmaker is set to agree to a tie-up, which is part of a $4

:01:05.:01:09.

billion moneymaking operation. What is in it for the Chinese company?

:01:10.:01:20.

This deal is a potential risk, because we have seen in the past two

:01:21.:01:25.

years, some other Chinese companies have tried to act as a bargain

:01:26.:01:34.

hunter, to acquire the Swedish car maker, Saab. It conceded a lot of

:01:35.:01:43.

money on that deal. I would say that they are trying to seek similar

:01:44.:01:47.

opportunities at the moment, but we can see the risk is huge. We know

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China's car market is the largest in the world. Why do you think Chinese

:01:53.:01:58.

carmakers have struggled to sell abroad? Simply because of the brand

:01:59.:02:12.

side they are not ready yet. And companies like this one operate more

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slowly than other private companies. That is in terms of overseas

:02:21.:02:27.

operation and brand development. If you compare their indigenous brand,

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the gap is very huge on sales. In other news, China's national

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development and reform commission, part of the country's regulatory

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body, has confirmed that antimonopoly investigations are

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going on. The agency is ending in on technology providers. According to

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analysts, the Chinese government is trying to lower domestic costs, and

:03:07.:03:11.

rule out faster four G networks this year. Earlier this month, a

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complaint was filed against one of the companies for overpricing their

:03:23.:03:29.

networks. According to industry watchers, the move has sent a strong

:03:30.:03:34.

signal that the people's bank of China is serious about access

:03:35.:03:40.

liquidity, to reduce the risk of informal lending. It has been

:03:41.:03:45.

identified as a major risk to Chinese growth, due to the

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possibility of major debts turning into default. Malaysia's main

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airline system has reportedly huge loss. It has rounded off the year

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with its fourth straight quarterly loss, and the outlook for this year

:04:02.:04:09.

has been negative. Malaysian airlines said that stiff competition

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makes it difficult for them to increase fares. Coca-Cola is having

:04:16.:04:21.

tough times with sales at home. That was the main reason for a 10% drop

:04:22.:04:24.

in earnings in the final quarter of last year. It came in at $1.7

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billion. Sales in North America fell by 1%. The makers of Sprite and

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Vitamin K tapwater also posted lost. Japan is coming out from its second

:04:42.:04:46.

major snowstorm in a week. Shops are having to deal with empty shelves in

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some parts of the country, and the prices of fresh vegetables have

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increased radically. The snow has forced a number of car factory

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closures, although many workers are now back. Japan is better placed

:04:58.:05:02.

than most countries to deal with snow, but what is the overall

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impact. ? . The supply chain in Japan is quite

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finely grained. The trucks are smaller, the store locations are

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typically smaller than they would be in a large area country like the US.

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If there is a local disruption, that trickles down. On the other hand,

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Japan is fairly robust, and resilient to disruptions, because it

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is used to disruptions by whether. Typhoons in the summer, and snow in

:05:39.:05:43.

winter. This year, I have lived here for 22 years, and every winter there

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were some days of snow in the Tokyo area full of it is quite usual for

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Japan. We have seen car industry is stalling some of their operations at

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some factories around the country. Toyota is reportedly back online.

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How the Japanese businesses generally handle these kinds of

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disruptions? Some of the factories like Toyota and Nissan, had some

:06:10.:06:12.

factories closed for one or two days, and then I think one or two

:06:13.:06:19.

factory roofs were broken in by the snow. Today, there are some areas

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which are without supplies, and supplies are brought in by

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helicopter. This would be remote, will areas. Surely that is all

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adding to the cost? Businesses are likely to lose money as a result of

:06:33.:06:37.

the snow. Of course it adds to the cost, and reduces, shuts down the

:06:38.:06:45.

factories for some time. But that is happening every year, more or less.

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This year there is a little bit more snow in the Tokyo area than other

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years. Don't forget, on the western side of the Alps, it is called snow

:06:55.:07:01.

country, so Japan is used to snow in most areas. There is some

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speculation that the carmakers we talked about will struggle to meet

:07:06.:07:10.

orders, particularly before April, when we have a sales hike coming in.

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We have a special situation this year with domestic demand, because

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there is an artificial buildup of demand before the consumption tax

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will rise from 5% to eight Z in the new financial year -- 8%. Carmakers

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try to catch up with that, so there is some special pressure there. In

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the future, people may be able to do medical checkups from home, using

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smart phones or home appliances to help manage chronic diseases like

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diabetes. Can even Asia, where the demand for healthcare is exploding,

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and that thing you can possibly expensive method of treatment? We

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spoke to one company tried to make a new kind of breakthrough.

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It is never a pleasant experience visiting a hospital. There are long

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lines in the waiting rooms, and mounds of healthcare and insurance

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forms to be filled out. But, there is a growing need in Asia.

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Health-care spending in the region passed more than $1 trillion last

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year, and that is expected to list double in the last five years --

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next five years. As a result, some companies are now looking to

:08:28.:08:30.

technology to reduce the advent and improve treatment. The leading

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technologies that influence what we do here is starting with mobile.

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People now carry very powerful computers in their pockets, with a

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lot of senses in them. He is also exploring the use of things like

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Google class. Data storage has become so cheap that it has helped

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the company store mounds of information, and use machines that

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create 3-D models of hearts. How much will technology really change

:09:06.:09:11.

things? I believe it will transform healthcare, because there is a big

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need out there. The need to deal with people in rural areas, in China

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or India, you have a scale issue that you have to deal with. With

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true technology I believe we can leapfrog. For example, today in

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Singapore already, through data we can analyse whether patient is ready

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to go home. We can do that purely based on data. We are the have a

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small set now. Imagine we have millions of patients, and suddenly

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you seen much more. The more we see, the better we can apply at to the

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treatment. What are some of the biggest obstacles to a meeting this

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technology and utilising all these details? The business model has to

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change in terms of, you know, we're not doing everything physically with

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proximity, we are doing is rightly. Can we just a way of working that?

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These things take a little longer than the speed of technology.

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Asia's ability to adapt to new and possibly expensive healthcare

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technologies remains be seen. But one thing is for sure. Given the

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region has a rapidly ageing population, there is a rising demand

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for a new way to handle that hospital visit.

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That brings us to an end to this edition of Asia Business Report.

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Our top stories: Fighting is intensifying in the centre of the

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Ukrainian capital of Kiev. Police use hand grenades and water cannon

:10:53.:10:56.

to try to clear hundreds of thousands of protesters.

:10:57.:10:59.

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