31/03/2014 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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during an FA Cup semi`final in 1989. Now on BBC News all the latest


business news live from Singapore. Climate change, we look at the


latest report and it impact on people's lives and the global


economy. Find out why entrepreneurs are choosing to launch start`ups in


India. Welcome to Asia Business Report. I'm Rico Hizon. The


intergovernmental panel on climate change has released its latest


report on possible impacts on the sea levels and the weather, not just


on the world's environment but the economy as well. The report says


climate change could potentially stifle economic expansion and some


of the most significant effects will be felt in Asia. Earlier, I spoke


with an author. In the global aggregate, the impacts don't strike


me as very large. The global aggregate impact is in the order of


0.2% of GDP. That is in the global aggregate. For individual countries,


like low`lying countries, the impact would be much higher due to the


combined pressures of sea level rise, published in pressures and


other vulnerabilities in the ecosystems and the economic basis.


`` population pressures. It is understood that coastal areas in


Asia will be among the worst affected. What kind of impact will


it have on the region? It will have a strong impact. Most of the world's


most densely populated areas are in Asia, south`eastern and eastern


Asia. The impact this will have will very much depend on how society


decides to respond to climate change. Both in terms of whether we


collectively reduce gas emissions, and therefore reduce the sea level


rise rate, but all of the adaptation measures. We can either fortify


seawalls or adopt more flexible response mechanisms that ultimately


might mean that in some areas are managed strategic relocation of the


most vulnerable settlements might be needed. But it always comes down to


a local decision`making process, that needs to be connected with


national and in some cases international strategies. More signs


of a slowdown in Japan, as the latest numbers reveal industrial


production falling by more than 2%. That was in February. It reverses an


upward trend from the previous three months. The slowdown suggests


visitors are placing fewer orders in factories due to slowing demand


ahead of a planned sales tax hike. Effective tomorrow, Japan's


consumption tax goes up 2%. China's largest privately owned ship builder


has posted a loss of $1.4 billion for last year. It is a second


straight annual loss for the company. It blamed the losses on


declining orders during a downturn in the shipping sector. The company


turned to the government for financial help last year and warned


it would report a substantial loss due to its conservative sales


strategy. In Taipei, hundreds of thousands of demonstrators took to


the streets on Sunday near the presidential palace to protest at


government policy which aims to bring the island economically closer


to the mainland. The deal would allow service sector companies on


both sides to open up in each other's territories. The protest


have been going on for two weeks and shows no signs of letting up. In


Thailand, Prime Minister Yingluck Shinawatra has been summoned to


appear before the country's national anti`corruption body to date to


defend herself against charges of being negligent up with the


controversial rice subsidy scheme. The plan paid farmers above market


rates for their crops at political opponents allege that the initiative


hurt the country's rice reduction industry and fostered corruption. If


found guilty, she faces an impeachment in the upper house or a


possible five`year ban from politics. Over the weekend, tens of


thousands of anti`government protesters were marching through


Bangkok in a fresh attempt to unseat the Prime Minister. It was the


biggest show of force from the demonstrators since the court ruled


earlier this month that February's general poll was invalid. Voting in


India begins in over one week and for whichever party comes into


power, kickstarting growth will be the biggest challenge. Despite the


slowdown over the past couple of years, the number of start`ups in


India has been on the rise. And it's not just local entrepreneurs setting


up business. This might look like a car park but in fact it is the home


of one of the first companies in India that lets you hire a car and


then drive it yourself. Unlike most developed countries, until recently


anyone wanting to rent a vehicle had to hire a driver as well. But the


new alternative is already proving successful. A lot of people thought,


these white Americans, they think they are going to come here and


start a company. But as soon as things turned tough, they are going


to run right back to good job opportunities in San Francisco and


New York. There is really no official figure but it is estimated


that over one million new small and medium`sized firms are launched in


India every year. But at the same time, according to the World Bank,


this is one of the toughest races to start a business. Mark's journey in


India began six years ago when he and his wife decided to move here


from the UK to start branding and corporate communication company.


This was the time that the Indian economy was the toast of the world,


growing at about 10% annually. But Mark feels this is still the place


to do business. I've seen other people who have looked at the same


opportunity we've seen, who have come and may be invested 18 months


or two years and not been able to make the returns they expected. They


say, fine, we will do something else. I think the next 5`10 years


could be very exciting. We remain pretty bullish about it. Clearly not


without its challenges. And it's not only individuals who are optimistic


about start`ups here. But investors as well. Last year, backers put $1.6


billion, US, into Indian start`ups with the e`commerce sector most


popular. Industry feels this will encourage more expatriots to look at


India for new opportunities. It is good to see this reverse kind of


migration happening. It's good because you suddenly have very open,


very entrepreneurial thinking, where many of us in India don't have that


openness of mind. Hats off to them. Making it easier for expatriots to


start a business here is something the government has been talking


about for a while. And, if that happens, that might tempt more


foreigners like Mark to come here, not just to sample the culture and


science and food but to have a go at being an Indian entrepreneur. In the


movie industry, films about superheroes are as American as Apple


pie that new technology means that film production is no longer tied


down to Hollywood studios. Movies are becoming a global industry and


increasingly Asia is becoming a major hub, especially for


postproduction work. I caught up with a director of the Amazing


Spider`Man II film. He said some of the postproduction was done in


India. I think there is something important with a large movie, you


have to appeal to a massive audience. That requires often a


pre`existing awareness of the character. But with a character like


Spider`Man, there are so many different inflections. It can


withstand so many different interpretations, that you can find


something new in something familiar. How much of the film production is


made in Asia? There are parts of the visual effects that were done in


India, in Mumbai. There was a whole team of artists. They worked on the


effects. Lucasfilm has opened its studio here. Asian headquarters have


been opened for postproduction work in India. What is the prospect of


work there? From what I experienced, postproduction has expanded across


the globe, because of the way it the into networks and the way


information transfers so quick and powerful. You can be working on many


different things simultaneously. So much of my post production work has


been going on in India, Korea. Given the nature of visual effects,


incredibly elaborate and requires thousands of people sometimes, you


have to spread that out across the world. What would it take for an


Asian film to make it really big in Hollywood? There have been great


cinema from Asia. Like Crouching Tiger, Hidden Dragon. The Asian


influence is massive. It goes beyond martial arts films. What Kurosawa


was able to achieve has had a profound influence on things like


Lucas Films, Stephen Spielberg. All these people paid very close


attention to what was happening here. Asian stock markets are mostly


trading higher this Monday. News of promising economic data and signs


that China will step into support its cooling


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