31/03/2014 Asia Business Report


31/03/2014

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

:00:00.:00:14.

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

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

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

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

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intergovernmental panel on climate change has released its latest

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

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

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climate change could potentially stifle economic expansion and some

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

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

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

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

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

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combined pressures of sea level rise, published in pressures and

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other vulnerabilities in the ecosystems and the economic basis.

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

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

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

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

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

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

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collectively reduce gas emissions, and therefore reduce the sea level

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

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seawalls or adopt more flexible response mechanisms that ultimately

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

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

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

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national and in some cases international strategies. More signs

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

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

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upward trend from the previous three months. The slowdown suggests

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visitors are placing fewer orders in factories due to slowing demand

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

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

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

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

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

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turned to the government for financial help last year and warned

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it would report a substantial loss due to its conservative sales

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

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the streets on Sunday near the presidential palace to protest at

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government policy which aims to bring the island economically closer

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

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

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

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Thailand, Prime Minister Yingluck Shinawatra has been summoned to

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

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defend herself against charges of being negligent up with the

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controversial rice subsidy scheme. The plan paid farmers above market

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rates for their crops at political opponents allege that the initiative

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

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

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

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thousands of anti`government protesters were marching through

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

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biggest show of force from the demonstrators since the court ruled

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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from the UK to start branding and corporate communication company.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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start a business here is something the government has been talking

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

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

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

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movie industry, films about superheroes are as American as Apple

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

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

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increasingly Asia is becoming a major hub, especially for

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

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

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

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

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

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

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withstand so many different interpretations, that you can find

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

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

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

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

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

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

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

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

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

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

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incredibly elaborate and requires thousands of people sometimes, you

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

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

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

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

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

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

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

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

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that China will step into support its cooling

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