07/04/2014 Asia Business Report

her response to an investigation into her expenses claims. He said it

was undermining the government's message. Over to the latest business

news from Singapore. Elections in India. What economic

changes will be in store for the world's biggest economy?

A three`week stand`off while graduate in Taiwan protest against a

trade deal in China. Thanks for watching. I'm Rico Hizon

in Singapore. It will be a busy few weeks in India. Voters in the

world's against democracy will be casting their ballots. The Indian

election will last for five weeks, with more than 800 million people

having their say. Our team took to the street and asked residents about

their wish list and ways they want the new government to reach all the

economy. `` to re`tool. People are suffering. I want economic

improvement. Unemployment. I have been unemployed for one year. It's

very difficult to get a job. I will be looking for a party who can

promise more employment and jobs. The biggest economic issue for me is

the falling value of the rupee. Its purchase power is drinking day by

day. For people with limited resources, like me, who are

retired, we have a fixed income from say bank interest. It's very hard to

make both ends meet. Rising prices are affecting everyone. People in

villages, people in towns and they aren't able to afford it. Look at

the price of... Wanting writers, everything rises. We need someone in

power who will see to it that the price comes down. For more we can

cross over to Delhi. We just heard from the people of India, what they

want. Stronger purchasing power, new investments, jobs. That employment.

Tell us, what are the two political parties putting on the table to fix

and re`tool the economy? This is on the top of the mind of political

parties as well. They have more or less agreed on economic issues in

the past but this time there is a sharp divide. There are two main

parties. The opposition party and the ruling Congress party. Then a

host of other regional parties, which probably will hold the key on

where they stand on economic issues and could have a lot of power over

the ruling government. But in terms of Congress and the opposition,

there is a sharp divide on many things. The Congress party is in

favour of more social spending. This has led to a higher fiscal deficit

in the past but they think this is the way to bring about it ``

inclusive growth, take out more people from poverty levels and bring

them up with say the middle class. At the opposition thinks you have to

improve economic activity, boost manufacturing and invest more in

infrastructure. India needs about $1 trillion worth of infrastructure

investment and at least half of that has to come from private investment.

So, we want to boost the country's image amongst foreign investors.

This is a sharp divide. The biggest opposition comes in the retail

sector, for example. You mentioned the retail sector, a hot issue at

the moment. How do you think the parties will deal with this? As you

know, currently foreign retail is allowed... Foreign investment is

allowed. The likes of Walmart and Tesco can invest up to 51% in the

country but none of them have opened shop yet because of the confusion in

the country amid the policy, because there has been a huge opposition by

small traders across the country. Other political parties and even

politicians within the ruling party have opposed the policy itself. So,

the opposition BJP has said it will scrap the policy if it comes into

power. This is very worrying for foreign investors, who think the

company is `` who thought the country was opening up and now maybe

not so. They have to wait until the end of elections to find out who

will be in power and what happens to huge flagship policies like this.

Thank you so much. Staying with India, the merger is

under way in the pharmaceuticals industry. The takeover will be done

via a share swap deal. It is valued at $4 billion. Once this agreement

is complete, the merged company will create the largest pharmaceutical

company in India. University students have been

occupying Taiwan's Parliament building for nearly three weeks,

protesting against trade agreements signed with China last year. The

deal would give both sides greater access to each other's services

sector. Earlier we caught up with our correspondent in Taiwan. It is

still tense outside the parliament building behind me. This is the 20th

day of the students' nearly three`week occupation. It is around

8:30am at the moment. Students are just waking up and having breakfast.

The issue has deeply divided Taiwanese society. The latest survey

shows that 44% of the people here believe the trade agreement would

benefit Taiwan's economy but an almost equal percentage, 38%,

believe it would not. The Government House insisted this agreement is

crucial for the economy. `` the government has insisted. They

believe they can tap the great Chinese market next door. But

Chinese banks, travel industries and also e`commerce companies can move

more freely and invest in the Chinese sector, services sector. But

38% of the people who oppose the agreement, represented by these

students, believe the agreement would only help big businesses. It

could actually hurt the small business owners and local workers'

livelihoods. One of the student leaders I spoke to told me that even

worse they fear the agreement could give China too much influence over

Taiwan's economy and society. TRANSLATION: It raises a lot of

political worries. It's no longer just an economy and trade agreement,

it has a big political impact. This impacts us on many levels. The

opening of advertising and telecoms industries, for example, will have a

big damage on Taiwan's national security, freedom of expression and

the media's freedom. Those were Taiwanese student demonstrators. He

recognised these brands? These are all big Chinese companies

well known on the mainland and are now aiming to go global. What the

Chinese firms need to do to expand in the market that is different from

the one at home. Earlier I spoke to the dean of a business school and

asked which of these brands has the most potential to be a global

player. A company which is now fully integrated in the world economy.

Others are known as products which have been exported out of China. Why

do you say that Huawei is the only one that has really made

internationally? It requires a lot of time to become a truly

international company. That is what our companies discovered many years

ago. It is not possible in a short period. What about Innovo? They are

quiet PC business is, why have they not made it yet? The overwhelming

percentage of personnel is still working in China. It's basically

selling into the world market, it is not integrated in it. That would

make a difference between Innovo and Huawei. What would it take for a

Chinese brand beyond the likes of Huawei to integrate themselves into

the international market? Do they have to overhaul their business

models? That would be a good point, yes. You have to spread yourself

across and then the brand follows, not the other way around.

In other business news making headlines, a major merger valued at

$55 billion is under way in Europe to end world's two largest cement

manufacturers. One from France and a Swiss company. According to reports,

both companies made over the weekend and approved the merger initiative.

Officials will announce today, which could cause further condition in the

market. There will be trade talks over market access for American

foreign groups and workers with Russia. It will be a deal with 12

countries, including Japan. An agreement has been held up since

last year as Japan appears reluctant to lower its trade barriers for some

of its industries. With that, we end this edition of

Asia Business Report. Thank you for investing your time with us.

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