17/06/2014 Asia Business Report


17/06/2014

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spending more than ever on flood management.

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Time for Asia Business Report, live from Singapore.

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Oil prices traded near a nine`month high as is a concern that the

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conflict in Iraq will hurt supplies. And thousands of Cambodians are

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fleeing Thailand over fears that authorities will crack down on

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illegal workers. Thank you for joining us on Asia

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Business Report. The United States plans to deploy up to 275 military

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personnel to Iraq. There are concerns the conflict is escalating.

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The government has been battling Islamic militants and there are

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fears the nation is moving towards civil war. Iraq has the

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second`largest oil producer in the organisation that governs

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oil`producing countries. While has been pushed to its highest levels

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since September 2013. Earlier I spoke with a

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representative from the fact profits at Sydney. I asked if we could

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expect more price volatility in the trading days ahead. When you look at

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the production profile of Iraq, the main producing fields at the moment

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are around the south of the country near the Persian Gulf and all of the

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exporting facilities are also down in that region. At this point the

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fighting has been confined to the north. The amount of oil that has

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come out of the northern part of Iraq over the past three months has

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actually been zero. We would expect to see a price rise, and we did see

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that happen. But it has been constrained because of that very

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reason of where supply is coming from. At what point will prices rise

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yonder current levels? If we see fighting starts to move beyond

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Baghdad that we were deceived a spike in the oil prices. `` would

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perceive. The world could probably deal with that. When you have a look

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at the history of Iraq's production, over the last 40 years it has been

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one of the most variable members. Logistics have gotten used to

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covering for Iraqi oil. What about Russia cutting its gas supplies to

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Ukraine? How significant is this? At this point in time, we suggest that

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the market is really focused on what is happening in the Middle East.

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There will be some movement in gas prices. Probably not a broadly

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across the world, certainly not in the US. There may be some impact in

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Europe. Gas prices went through the Ukraine. It might cut gas supplies

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into Europe. Staying in the commodities space,

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Shell is selling most of its holdings in Australia for nearly $6

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billion. The rest will be sold to institutional investors. It will

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reduce its stake to 4.5% from the current 23%. Military authorities in

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Thailand maintain there are not forcibly repair treating Cambodian

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workers despite more than 100,000 Cambodians crossing the border and

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returning home. They play a key role in the Thai

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economy. We asked which sectors would be most affected. Cambodian

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workers tend to occupy the lower rungs of the Thai economy. A lot of

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them work on construction sites, agriculture, fishing. Those are the

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main sectors hit. We have seen the economy contracting in the previous

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quarter. 0.25 percent. Will the exodus of these workers impact the

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overall economy? It does not come as a good time, as Thailand is dusting

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itself off from a recession. I think we will see an impact.

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Hopefully it will be limited. As you said, the exodus has been confined

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to Cambodian National 's at the moment. If it spread to the many

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more groups that make up the country's immigrant workforce, that

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will have a significant impact on the economy. With this exodus, what

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will be the employment situation be like in Thailand at the moment?

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It is an interesting confluence of factors. It seems to be a case of

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mass hysteria that has possibly met the good intentions of sections of

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the government trying to clean up its act in terms of human

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trafficking. Rumours have spread that this could be some kind of

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military crackdown. They have tried to pre`empt that by leaving the

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country. It is hardly surprising, given the information vacuum in

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Thailand at the moment. In other business News making

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headlines, General Motors is recalling more than 3 million

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additional cars because of a faulty ignition switch. It has also

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increased the money set aside to cover the recall costs to $700

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million. GM has recalled 20 million vehicles this year.

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The International Monetary Fund has cut its growth forecast this year.

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It expects the world's lodges to grow by 2%, down from its estimate

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of 2.8%. It also predicts America will not achieve full employment

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until the end of 2017 am giving the Federal reserve scope to keep

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interest rates at record lows for a longer period.

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Argentina's president says that the country not default on its debt

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obligations. The South American country is being ordered to pay back

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billions of dollars to creditors despite its weak finances. Stocks

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falling more than 6% on the news. Greenpeace has lost more than $5

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million because of a bad bets on the currency markets. The group said one

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of its finance employees wagered that the euro would not strengthened

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against the all `` other currencies. Greenpeace has apologised for the

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incident. Pinewood has production facilities

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in written, Germany, the United States, Canada and now Malaysia. ``

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Britain. It is the first four `` Faure into the region. This is just

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an hour's try from Singapore. Pinewood has built its new studios

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here on an 80 acre site that is roughly the size of 60 football

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pitches. While you cannot see it, it is all happening down there. They

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are filming a television series. Cannot show you the filming of Marco

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Polo, because that is all in lockdown. I am on one of the sound

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stages where filming is being carried out. Why film here? Is this

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all about cutting costs? Finding good value in Malaysia has been key

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to our decision making. We could have gone to Thailand, Hong Kong or

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China. But a 30% rebate is saving us millions of dollars. By cutting the

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cost of filmmaking, is Malaysia effectively pressing out other

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studios? It is starting to. Hollywood is cost prohibitive.

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There are savings to be made, but there must be some challenges. You

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have to fly everyone here, Houston, feed them, give them something to do

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on a weekend. `` powers them. If the Malaysian tax incentive pays off,

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they will have an industry. That will take a decade before the skills

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level comes up. Keen to develop its local film industry, the Malaysian

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government joined forces with Pinewood to set up this $170 million

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facility. The government says new jobs and businesses have been

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created. What is in it for Pinewood? There is a growing level of interest

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in the stories told by south`east Asian producers, whether on film or

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television. If all the economic forecasts are predicting a

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doubling, these facilities in Malaysia will be part of a suite of

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studios to serve us in the market. Millions of dollars are being spent

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here. They can money is being made, whether it is stage crew, set

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builders, caterers or equipment companies. Hundreds of new jobs have

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been created. The opportunities are immense. Time will tell whether

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these studios will become global players in the film industry.

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Thank you for joining us. The latest World Cup news coming up next.

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Here are the headlines: Islamist extremists have extended their grip

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on northern Iraq, defying air attacks to seize another key city.

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I'm trained at Shia forces have joined up to counter the threat.

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`` untrained. The Somali militant group should is

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saying it can without

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