:00:00. > :00:00.systemic rivalry by mainland officials. `` bribery. And why the
:00:00. > :00:11.Asian delicacy abalone is a growing business for New Zealand.
:00:12. > :00:16.Thank you for joining us on Asia Business Report. Is China becoming a
:00:17. > :00:20.more challenging place to do business. One of the world's largest
:00:21. > :00:28.pharmaceutical companies is under pressure after Chinese authorities
:00:29. > :00:33.accuse a GlaxoSmithKline executive of bribery. China's police ministry
:00:34. > :00:37.is accusing the company's former head of China operations and two
:00:38. > :00:46.other colleagues of robbing a mass of hybrid network. `` running a
:00:47. > :00:50.massive bribery. Other foreign companies have faced similar
:00:51. > :00:53.accusations. Earlier I spoke with our correspondent to find out what
:00:54. > :00:59.the reaction has been to this latest development. The case is being
:01:00. > :01:06.followed with interest. There is a sense that it is the biggest scandal
:01:07. > :01:10.to envelop a foreign multinational company in a number of years. What
:01:11. > :01:16.is interesting about the police ministry's statement is that up
:01:17. > :01:18.until now reported in the foreign media quoting unnamed Chinese
:01:19. > :01:21.sources there was a sense that it was only going to be Chinese
:01:22. > :01:28.executives who are going to be charged. This statement at least
:01:29. > :01:31.makes that look a little less likely this morning. As you say, they
:01:32. > :01:36.accused Mark Reilly of running this massive bribery network. They appear
:01:37. > :01:40.to believe at the end of this investigation that they have
:01:41. > :01:46.evidence that the wrongdoing was ordered from the top.
:01:47. > :01:49.GlaxoSmithKline has over the course of the investigation admitted that
:01:50. > :01:53.some of its staff may have acted outside of the company's guidelines.
:01:54. > :02:00.But it has denied that there has been any kind of systemic
:02:01. > :02:04.corruption. In response to the allegations, this statement from the
:02:05. > :02:09.Chinese police, it says they will continue to fully incorporate. They
:02:10. > :02:13.want to continue to make an important contribution to the health
:02:14. > :02:23.and welfare of China and its citizens. What is the sentiment on
:02:24. > :02:32.the ground? Our foreign firms being targeted by mainland officials? You
:02:33. > :02:40.can be certain that what has happened over the past year
:02:41. > :02:45.reinforced even further this announcement by the police ministry
:02:46. > :02:49.naming a former senior executive in China, you can be certain that will
:02:50. > :02:54.have sent a chilling effect through the foreign business community.
:02:55. > :02:58.There is a sense of nervousness. You can be certain that other foreign
:02:59. > :03:03.drugs companies have been looking carefully at their own operations.
:03:04. > :03:09.The police have been speaking to a number of them.
:03:10. > :03:15.In other business News, fresh figures from Japan show its economy
:03:16. > :03:22.expanded by 1.5% in the three months on till March compared to the
:03:23. > :03:32.earlier quarter. There had been a forecast of 1%. Capital spending
:03:33. > :03:37.increased beyond most forecasts. Shares in Sony fell more than 6% in
:03:38. > :03:41.Tokyo trade after the firm said it it will probably remain unprofitable
:03:42. > :03:47.for the next financial year. It posted a loss of $1.2 billion.
:03:48. > :03:51.The reports put pressure on the chief executive, whose aim has been
:03:52. > :03:58.to turn the company around amid restructuring efforts.
:03:59. > :04:03.Better than on Wednesday, citing rising profits in the mobile gaming.
:04:04. > :04:10.The income until March claimed by 60%.
:04:11. > :04:14.How fond are you of your bank? Is it just a place to put your money or do
:04:15. > :04:22.you buy other products such as insurance or retirement? We report
:04:23. > :04:25.on how some of the world's biggest electronics commerce businesses are
:04:26. > :04:30.giving banks are run for their money.
:04:31. > :04:33.We are used to putting our money on the bank and taking it out, perhaps
:04:34. > :04:35.taking out a loan or investing it out, perhaps taking out a loan or
:04:36. > :04:40.investigate any wealth management fund. But for a growing number of
:04:41. > :04:44.customers, there are more alternatives and convenient options
:04:45. > :04:50.to traditional banking. Take the e`commerce giant Aly Baba. It is one
:04:51. > :04:58.of the largest in the world. There is also can send. The move by
:04:59. > :05:02.e`commerce firms into money management has worked in China and
:05:03. > :05:06.has the potential to work elsewhere. But it poses challenges for banks
:05:07. > :05:16.across the globe, including here in Singapore. I am talking to the head
:05:17. > :05:20.of innovation at the BS. How big a threat is this to the traditional
:05:21. > :05:26.model? They are a significant threat. They have a significant
:05:27. > :05:33.potential to eat our lunch as a business. We see them setting up
:05:34. > :05:42.networks, the domain of traditional banking. We are in a unique position
:05:43. > :05:49.in Singapore. We know about these firms in the press. $80 billion in
:05:50. > :05:54.funds over eight months. How can you compete on the payment site? It is
:05:55. > :06:03.tied up in everything they do. Banks need to be understanding customers.
:06:04. > :06:11.We have started a number of projects. Data will be one of them.
:06:12. > :06:16.Many technology start`ups are looking to be acquired by banks. We
:06:17. > :06:21.see them in a partnership model as well a threat model. What can banks
:06:22. > :06:27.do to protect their market share? We need to take the learnings from the
:06:28. > :06:31.industry, how to understand customers better and be part of the
:06:32. > :06:39.customer 's lives. The new digital age has created
:06:40. > :06:44.problems for the banks, to build stronger relationships with their
:06:45. > :06:50.customers. To expand their business even further.
:06:51. > :06:56.It is really be in the Asia`Pacific region that the shellfish abalone is
:06:57. > :07:00.a popular delicacy. It has a pricetag to match. Fishing for it is
:07:01. > :07:05.heavily restricted. Illegal poaching was a cause of the world's first
:07:06. > :07:14.ever underwater arrest. New Zealand has one of the rarest types of the
:07:15. > :07:21.seafood. It is getting the rewards. It is known by its indigenous Maori
:07:22. > :07:27.name here. Blackfoot abalone is only found in New Zealand waters and it
:07:28. > :07:34.is a tech literacy. `` delicacy. Mainland China is the big consumer.
:07:35. > :07:38.Even locally it is expensive. That price is around $45 per shellfish.
:07:39. > :07:47.To find out why, we join a group of recreational hunter gatherers. You
:07:48. > :07:56.find a shell that looks like a rock. You will see a black outline.
:07:57. > :08:03.There are laws considering the size of court abalone. You can only take
:08:04. > :08:08.ten per day. It is cold out there. But this is what is all about. This
:08:09. > :08:13.is what hundreds of dollars in some parts of the world. There is no
:08:14. > :08:23.mucking around. It is done straightaway. The texture is similar
:08:24. > :08:35.to calamari. It is a bit chilly. It has got its own flavour. He is part
:08:36. > :08:38.of a group called Power to the people. They successfully stood up
:08:39. > :08:48.to commercial fishermen wanting access to new areas. Basically
:08:49. > :08:55.making it available is understandable, but it is not good
:08:56. > :08:59.for the public. There is still plenty left for the commercial
:09:00. > :09:05.fishermen. Andrew has been a Fisher since the 90s. A hobby that became a
:09:06. > :09:09.job. Groundbreaking technology is at the forefront for sustainability.
:09:10. > :09:15.Using all the information available to maximise profits. If we do this
:09:16. > :09:19.for three years consistently, it will be better than 25 years of what
:09:20. > :09:29.we have done in the past. Commercial fishers also follow strict
:09:30. > :09:35.guidelines. The exported abalone industry is worth $43 million. An
:09:36. > :09:42.increase in live exports could boost profits. A fresh abalone can get to
:09:43. > :09:48.an Asian restaurant table in 48 hours.
:09:49. > :10:01.Before we go, a quick look at the Asian markets. Stocks are moving
:10:02. > :10:02.sideways. Those are the markets at this hour. Thank you for investing
:10:03. > :10:17.time with us. Here are the headlines: Police in
:10:18. > :10:20.the Turkish cities of Ankara and Istanbul have fire to a gas and
:10:21. > :10:29.water cannon at thousands of demonstrators. `` tear gas. The
:10:30. > :10:30.Nigerian President has refused to swap prisoners for the