11/07/2014 Asia Business Report


11/07/2014

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that could be achieved". Now on BBC News all the latest

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business news live from Singapore. India's new government delivers its

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first budget, reaction from the financial capital is next. Japan

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looks to a Pacific nation to secure important energy supplies. Welcome

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to Asia Business Report. India's new government is promising to bring

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back higher economic growth with its first budget but the reaction has

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been mixed. Some were disappointed that a number of key issues were

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ignored and others bought it with a pragmatic budget. The new

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administration had indicated that tough measures had to be in place to

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help the Indian economy gets back on track. We're now joined by a

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correspondent. Is the budget the bitter medicine that the Finance

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Minister and Narendra Modi had said it would be? We did not see much of

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it last night. Most people today are saying that it was sugarcoated for

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everyone and that nothing was a big bang. Or were no fireworks or

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subsidy cuts. Subsidy India has a $40 billion bill of subsidies and

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many people expected the Finance Minister to cut some of these but we

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did not see any of that. We did not see a solid roadmap or plan as to

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how he is going to bring down the fiscal deficit or introduce new

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taxes that people were waiting for honey goods and services tax which

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would have rationalized things that exist in the country that we did not

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see any of that `` on goods. What was in the budget for foreign

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investors? One was a policy introduced by the previous

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government which has hit local taxpayers including Vodafone which

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was hit by a tax bill retrospectively which made many

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foreign investors cautious about looking money here. This

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controversial law has been blamed for choking investment pipelines

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into India and so he made a strong statement saying that they would not

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support any retrospective amendment but did not repeal the law. Many

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analysts are saying that this is good enough to get started with and

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that the Foreign Minister will look at the market again. Also coming

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opening larger sections of depends and insurance industries for more

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investment is expected to follow. That has also garnered mixed

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reactions. Everyone is talking about more money coming into India but

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they are not sure about Defence. What our experts saying in India?

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The economy has been expanding below 5% over the past several quarters,

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could it at least improve the economic fundamentals going

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forward? It was a balanced budget and have a lot in it that said that

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it was the beginning of the journey. Narendra Modi said that India cannot

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afford to spend beyond its means and everyone is hopeful that this is

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only the beginning as they have only been in government for orgy five

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days. `` 45. Thank you. For the first time in many years, Papua New

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Guinea is playing host to a Prime Minister from Japan. He is looking

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to shore up energy supplies and Papua New Guinea is becoming a big

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provider of natural gas. One of `` Japan's future in a `` energy

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remained undecided and they're looking for alternate sources. I

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spoke to a correspondent from Sydney and asked him what makes Papua New

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Guinea unattractive provider. I have extensive `` they have extensive

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resources and they have proved the mic just taken the first step in

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tapping them. They will be an important player in the region for

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many years to come. Should foreign investors be concerned about the

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security situation in the nation and the corruption case involving the

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Prime Minister of the country? There are certainly risks involved in

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being in Papua New Guinea and investing in large infrastructure

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projects there but a lot has been learned in recent years where

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environmental concerns and failure to include landowners in the

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benefits have meant that projects have been shut down. These lessons

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are fresh in the minds of investors and in the minds of the government

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and while there is turmoil at the moment, the value that could be

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released through these projects is so large that many are willing to

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take the risk. One doubts if the revenues from foreign investors

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coming particularly energy and infrastructure will be used wisely.

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That is a there are concerns that the benefits of this project could

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be lost but lessons have been learned from previous disasters and

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it is quite clear that the regions in which these projects are built

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must benefit from them if they are to have a long life. Thank you. When

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it comes to doing business are forcing changes, it can be quite

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difficult. Even harder when the people you work with are your

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relatives. In this latest part of our family business theories, we

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take you to tie one and a firm which is reinventing itself `` Taiwan.

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This woman's family has been making calligraphy brushes for many years

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and their skills and knowledge are the best types of family business

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branding. This man is the fourth generation in the business and he

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was not going to do things the way his parents, rent parents and great

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grandparents did. `` and great grandparents. Using their expertise

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on hair, they now sell more than a 100 types of brushes for automatics

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as well `` cosmetics. You have district in the Chinese characters

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for BBC. `` Britain. Why did you decide to transform the business

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from strictly calligraphy into one that makes cosmetic brushes?

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TRANSLATION: I was working in sales in the family business in 2008 and I

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noticed that deliveries had declined and passed by a nail salon and

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noticed how find the e`mail brushes were. I thought that we could make

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brushes as fine as that `` nail. When my grandfather found out, he

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thought it was good quality and that it was a good idea. Despite getting

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approval from his elders, he faced other challenges. He had to convince

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customers that his company could make great brushes, not just for

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calligraphy that for makeup. He also had to source new materials and

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market his product in a different way, including online. The economy

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of Taiwan is made up of many family`run companies, this store is

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an example of how, in recent years, many of these businesses had

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transformed in order to keep running for generations to come. The hard

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work has paid off. Revenue has increased and the company is

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increasingly known for the makeup side of the business which now makes

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up 70% of all revenue. But he has no plans to abandon the roots of the

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family business. He wants people to continue to appreciate calligraphy

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but if they come to him first for makeup brushes, that is just good

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business. Coming up, don't miss Talking Business. Our host will be

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talking about the music industry. It is no longer about live music, so

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what is the new business model for those working in industry? Here is

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the founder of the Black Eyed Peas. It has been a big change. Back in

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the day, we had to prove ourselves to the record companies that our

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music was tangible cut in LA honey it was redundantly `` because in LA,

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it was predominantly gangster music and we were not tangible enough.

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Back then, I don't want to reveal my age, but there was no e`mail or

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Facebook, no Twitter and so we had to create a mailing list but

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nowadays, artists have more avenues to present their music through

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YouTube and Instagram and other social media sites and so there has

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been a big difference. More of that interview on the programme. Most

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Asian stocks are in negative territory on mid fears over the

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health of Portugal's top listed bank `` amid.

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I'm Mike Embley. The top

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