27/05/2014 Asia Business Report

it's raised nearly ?24 billion in additional tax for the year to the

end of March as a result of a crackdown on tax avoidance. It is

the highest amount since records began.

Now on BBC News all the latest business news live from Singapore.

Canon Thailand's military leaders help put to write the nation 's

economic mistakes? And, well selling game consoles turn Sony 's fortunes

around? Thank you for watching Asia Business Report on BBC World News.

Thailand's leaders have been quick to say they will focus on fixing the

country 's economic problems. They have promised to find ways to boost

growth and are committed to paying farmers owed money under the

previous government's failed rice subsidy scheme. Our correspondent

has more. This is a measure that could buy Thailand's new military

leader 's popularity. The ousted government's inability to pay out

farmers who had pledged their crops was causing hardship. There were

many reasons for the failure, the government blamed disruption by

anti`government street protestss which occupied several ministries.

Its limited mandate once Parliament was dissolved last December.

Protesters argue the scheme was corrupt and too generous to be

affordable. The general is using the sweeping powers he has to borrow

around $1.5 billion from the banks to pay out standing debts to

farmers. That will provide some immediate relief. With the system of

supporting rice prices, now abandoned, many of Thailand's

farmers will face tough times soon. Perhaps the military will revive it,

in which case they will have to design improvement to the old scheme

at a time when they will confront many other complex economic

challenges. With the ongoing political

uncertainty in Thailand it would seem an unusual time for businesses

to expand into the country. That is exactly what one of Australia's top

four banks is doing, ANZ has been granted the right to set up an

affiliate in Thailand, meaning it can open up to 20 branches and it is

a step closer to getting a full banking licence. Despite the

turmoil, ANZ points to the size of the economy and its role as a

regional manufacturing centre as reasons for wanting to operate.

Earlier, I asked an economist if the move might be bad timing. It seems

unusual but what ANZ has been doing for the past decade is expanding

across Asia. This is a well thought out strategy. ANZ isn't targeting

retail market but it is creating a web of financial services that

generate the income from an increase in transactions are out Asia.

Thailand is a major manufacturing hub. It is important to the strategy

and it is looking to the long`term. Elections in Europe have resulted in

games for anti` EU and anti` established political parties.

Groups supporting the EU retain the majority of seats. Our correspondent

looks at some of the implications of the vote.

At a national level, there were striking results. In France, it was

the right they claim victory with the anti` EU, anti`immigration

national front led by Marine Le Pen taking most of the votes. In Greece,

it was Syriza on the left, making strong gains. His party isn't anti`

EU but anti` austerity. The economic background was Europe's financial

crisis and the recession it caused. For the eurozone as a whole, the

downturn is over. There has been a year`long recovery. It hasn't been

convincing. Some economies haven't shown sustained growth with Italy in

particular contracting once again according to recent data. Many have

been angered by the EU's response to the crisis. Across Europe,

governments have sought to reverse the rise in their borrowing needs by

cutting spending and increasing taxes. There were protests on the

street and come election time in the polling booths also. Will this

setback for the EU's political mainstream make a difference to

economic policy? It is true that these anti` euro and anti` European

union parties have a higher share in the upcoming European Parliament but

they will still be a minority. I don't think they can influence in a

decisive way policy`making in the European Parliament. For many other

parties that made gains, immigration is a big issue. But also they may

struggle to make any impact on the EU's policy for movement Europe.

Looking ahead, government finances and perhaps also public attitudes to

migration will depend to a extent of the eurozone's economic recovery.

The better it performs, the left leaders will feel the need for

further austerity to reduce government borrowing. So far,

however, the recovery has been weak and erratic and that has contributed

to the political events of the EU must now deal with.

In other news making headlines: China plans to make more than 6

million vehicles off the roads to improve air quality. It emerges as a

priority for the mainland 's leaders. It is part of the goal to

cut emissions over the next two years. The number of vehicles off

the roads will be reduced to 5 million x 2015. The right wing

leader, Narendra Modi, lifted Indian shares as the psychologically

important 25,000 mark. Investors that he will be able to unleash

economic reforms. Analysts said the rise in the Bombay index shows that

record gains made on election day won't bubble. Apple requests a

retrial after a Californian jury ordered Samsung Electronics to pay

the company $119 million in damages for infringing two of its patents.

Apple sought damages of over $2 billion after accusing Samsung of

copying five patents including the slide to unlock function. They also

filed an injunction to prevent Samsun using the patents it was

found to have been infringed. Japan Sony has got ambitions for boosting

profit in the latest news from China could be a clue to how they will get

there. They have signed a partnership to set up a PlayStation

facility in China. The deal gives Sony access to 500 million gamers.

As Beijing lifts the ban on gaming consoles, how will the manufacturers

respond? Our correspondent has more. The big announcement is that Sony 's

PlayStation will be made available in China although if you come to

this electronic store here in the capital of Beijing you can already

get your hands on one of them. 14 years, astonishingly, games consoles

were banned here. Authorities were worried that they would corrupt the

minds of the nation youth. The irony was that consoles are actually made

here in China and shipped to the rest of the world. That changed

earlier when authorities announced they would be lifting the ban. Sony

is moving in. We have heard Microsoft is also moving in and that

the Xbox will also be available. There is one catch, the devices will

have to be made in the Shanghai free`trade zone and also the

companies think is worth it. The gaming industry has increased by 40%

and is worth more than $10 billion. That gives you some idea of why the

companies want a slice. Sony is apparently counting on its gaming

councils for growth. `` consoles. The TV business, the mobile

business, the laptop business, they aren't doing well for Sony so they

as per the CEO's moves, they are looking at the gaming image. It is

doing well for Sony. The market is dominated by PCs, mobiles and online

games and most of these are free and much cheaper than buying a Sony game

console. If you look at the game console industry, they are more

addictive, so once they get into it, the average spending per game is

higher than mobile users. If you look at the profile needs of

China's gaming industry, 60% are at online gamers. That is what Sony

will target. The bolt will move to consoles. Beijing has lifted a ban

on gaming consoles. `` of the bulk. They will be able to distribute and

sell, which they haven't been able to do in the past. There will be

pricing competition here. Microsoft has announced they have the best TV

collaboration and they will start releasing them in September. Sony

and Microsoft have a window but I am sure Chinese players will get into

the market and manufacturing as well. There will be huge pressure.

Sony and Microsoft will have to be cognisant of the fact that they

can't look to the pricing market in China the same as they do elsewhere.

Lower in early Tuesday trade after US and British markets closed for

the holidays. Japan in positive territory. Hong Kong, South Korea

and Australia are slightly lower. Thank you for investing your time

with us. I am Rico Hizon. Sport Today is up next. I am Mike Embley

in London with the main news stories. Ukrainian troops have

launched an assault on an airport seized by pro`Russian fighters, as

the country's new president offers to negotiate with Moscow to end the

crisis. The Nigerian military claims