11/03/2014

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:00:00. > 3:59:59He denies all the charges. Now on BBC News all the latest

:00:00. > :00:19.business news live from Singapore. As a search for the missing Malaysia

:00:20. > :00:25.airlines flight 370 continues, we look at airport security measures.

:00:26. > :00:33.And pawnbroking in Asia, we find out why it is nor longer seen as a last

:00:34. > :00:41.resort for a loan. Welcome to Asia Business Report. I

:00:42. > :00:46.Rico Hizon in Singapore. As a search for flight MH 370 continues the

:00:47. > :00:50.Malaysia government will have to lift their game when it comes to

:00:51. > :00:54.security. At least two people were able to board a flight using stolen

:00:55. > :00:58.passports. It is unknown whether the disappearance was an act of

:00:59. > :01:04.terrorism or if the passports were linked. Even if they were not, the

:01:05. > :01:08.event has put a spotlight on the number of people travelling on false

:01:09. > :01:12.documents. Earlier I spoke to an aviation specialist in Australia. I

:01:13. > :01:21.asked him what effect the events would have on Malaysia. It will have

:01:22. > :01:25.some effect on Malaysia Airlines. It could vary but if it is related to

:01:26. > :01:31.an engineering fault, it will have a major effect on credibility on

:01:32. > :01:38.Malaysia as a country to provide safe transit through Kuala Lumpur.

:01:39. > :01:46.How should Malaysia authorities at this point further improve airport

:01:47. > :01:50.security? They should follow the most stringent requirements and use

:01:51. > :01:55.the Interpol list of stolen passports to run that against the

:01:56. > :02:00.passenger manifests provided by the carriers. Clearly, they don't

:02:01. > :02:03.because these passports had been missing for some time. They were

:02:04. > :02:09.stolen in Thailand. And then someone can buy out of 100 baht. Secondly,

:02:10. > :02:14.five people did not board the aircraft. We have no statement as to

:02:15. > :02:20.whether their baggage was removed from the aircraft as is the

:02:21. > :02:23.convention. Would it be costly for Malaysia to upgrade safety and

:02:24. > :02:28.security or is it just about improving efficiency and

:02:29. > :02:34.co-ordination with Interpol? Is about doing the job properly. They

:02:35. > :02:39.have the people, the equipment but maybe nobody has thought of it as a

:02:40. > :02:44.priority to do something about the stolen passports list and really,

:02:45. > :02:48.the computing required to run at least is not very high. Somebody has

:02:49. > :02:54.got their priorities wrong in the Malaysia government. Is not just

:02:55. > :03:00.Malaysia that have to improve safety and security but also the rest of

:03:01. > :03:04.Asia? It varies from country to country. 40% of countries do not do

:03:05. > :03:10.this verification. What is important to Malaysia is, it is a transit

:03:11. > :03:17.point for traffic between Europe and Australia and the rest of Asia.

:03:18. > :03:20.People will just choose not to use Kuala Lumpur as a hub and will go to

:03:21. > :03:27.a safe harp like Singapore. It will have a major effect on Malaysia

:03:28. > :03:35.airlines because they only fly to Kuala Lumpur. Neil Hansford in

:03:36. > :03:38.Australia. Shares in some of the world 's biggest mining companies

:03:39. > :03:47.have been hit by a slump with the price of iron ore amid fears of a

:03:48. > :03:54.slowdown in the Chinese company. -- economy. China is one of the biggest

:03:55. > :03:57.consumers of the commodity and there are concerns that a slowdown may

:03:58. > :04:04.impact the profits of mining companies. EBay has its chief

:04:05. > :04:08.executive is paid by more than half. The company says that while John

:04:09. > :04:12.Donoghue had performed well, the financial performance of the company

:04:13. > :04:17.had not met expectations. Mr Donoghue was paid more than $30

:04:18. > :04:20.million in 2013. Down from more than $29 million a year earlier.

:04:21. > :04:34.The MtGox has won temporary bankruptcy

:04:35. > :04:39.protection in the US. It was the largest bitcoin exchange. It filed

:04:40. > :04:47.for bankruptcy detection in Japan last month. Hundreds of thousands of

:04:48. > :04:56.the coins are missing, likely stolen.

:04:57. > :05:05.China is in the middle of it annual meeting in Beijing. They have

:05:06. > :05:10.reaffirmed their target. They have promised to push forward with

:05:11. > :05:13.interest rate liberalisation and announced plans to establish a

:05:14. > :05:20.deposit insurance system. Earlier I spoke with a specialist on China's

:05:21. > :05:26.financial markets. I asked him what the latest target set about the

:05:27. > :05:31.mainland economy. Most economists were disappointed but not surprised

:05:32. > :05:35.at where they set the target. When you set the growth target, you

:05:36. > :05:40.cannot target other variables. The variable we are concerned about

:05:41. > :05:45.other growth in doubt. By setting a target, they are limiting their

:05:46. > :05:49.ability to control the growth of debt. They also stressed that there

:05:50. > :05:53.was flexibility. That is something we are hopeful for. What you make of

:05:54. > :05:59.these announcements during the Congress, interest-rate

:06:00. > :06:05.liberalisation. Watching closely the shadow banking system. We have been

:06:06. > :06:10.talking about this years. Knows what needs to be done. There is not a lot

:06:11. > :06:17.of confusion about what China needs to do. You have got to get

:06:18. > :06:22.consumption are up. The only way to do that is to get household income

:06:23. > :06:26.up. All these reforms a sickly do the same thing. They transfer wealth

:06:27. > :06:33.to the household sector. Digging deeper into the economy, where other

:06:34. > :06:39.red flags? Everywhere. The biggest problem that Beijing faces is not in

:06:40. > :06:44.not knowing what to do. The biggest problem is an economy problem. For

:06:45. > :06:46.many years we have been talking about real estate interest. We have

:06:47. > :06:52.a switch from a system in which China was growing rapidly but the

:06:53. > :06:57.elite were gaining a growing share of the pie to a system in which

:06:58. > :07:03.China will grow more slowly and they have a declining share of the pie.

:07:04. > :07:08.Is the political will to make the changes that? Absolutely. I am

:07:09. > :07:19.fairly confident they are moving in the right direction. Pawnbroking is

:07:20. > :07:22.one of the world 's oldest professions but in much of Asia, the

:07:23. > :07:31.industry is taking on a new shine as a shot start to become more

:07:32. > :07:35.mainstream. This man has recently started to

:07:36. > :07:40.make regular journeys to the pawn shop. He and his family have been

:07:41. > :07:49.exchanging jewellery for cash as rising costs in Singapore start to

:07:50. > :07:59.bite. In the current situation, we do pawn jewellery. Previously, we

:08:00. > :08:05.did not do that. Gold prices have gone up. The cash we get is higher.

:08:06. > :08:10.These days, people can get loans against what seems like almost

:08:11. > :08:16.everything. Watches, electronics even luxury handbags. But there are

:08:17. > :08:21.caveats. The price offered for possession is usually lower than the

:08:22. > :08:25.actual value and if you do not pay back the loan plus interest, you

:08:26. > :08:34.lose the item to the pawn shop business. But pawn shop charge you

:08:35. > :08:39.to borrow can be high. Interest rates are a maximum of 1.5% in

:08:40. > :08:46.Singapore. Elsewhere they range from 5% to 7%. On an annual basis, that

:08:47. > :08:52.adds up. So why do people still come here? Pawnshops such as this one

:08:53. > :08:58.have been increasing in polarity because it is easier to come here

:08:59. > :09:06.than go to the bank. You can turn in an antique watch and get a couple of

:09:07. > :09:14.hundred dollars. Append 4000. Or even a gold bar and get $60,000 in

:09:15. > :09:20.cash. One customer pawned his 22 carat diamond to get over $1 million

:09:21. > :09:24.in cold, hard cash. The weak state of the economy has not helped.

:09:25. > :09:28.Consumer debt in Asia have been rising steadily in recent years.

:09:29. > :09:35.Lower to middle income families have multiple bills to pay, sometimes a

:09:36. > :09:39.monthly salary cheque is not enough. That is true in Malaysia, Singapore

:09:40. > :09:45.and Thailand. They have the regions highest levels of debt. Conversely,

:09:46. > :09:48.that has led to a booming business for pawnshops with at least three

:09:49. > :09:54.companies going public on the stock exchange. Pawnshops have not always

:09:55. > :09:59.had the best reputation. They are famously known as the lender of the

:10:00. > :10:02.last resort it. As traditional banks faced pressure from increased

:10:03. > :10:09.regulations, pawned businesses that make it easier to borrow look like

:10:10. > :10:15.they are set to benefit. Before we go, here is a quick look

:10:16. > :10:24.at the markets. Sharemarket have stabilised this morning. Uncertainty

:10:25. > :10:32.about the true state of China's economy is keeping the mood

:10:33. > :10:44.uncertain. Thank you for investing your time with us. Sportsday is up

:10:45. > :10:49.next. The headlines this hour. The search has been widened but there is

:10:50. > :10:58.still no sign of Malaysia airlines flight 370. NATO is deploying

:10:59. > :11:00.reconnaissance planes Poland and Romania, as part of efforts to

:11:01. > :11:01.monitor the situation in