21/07/2014

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:00:07. > :00:08.to close its accident and emergency department. Now on BBC News all the

:00:09. > :00:16.latest business news live from Singapore.

:00:17. > :00:29.There is an uncertain future. After the latest tragedy, Malaysia

:00:30. > :00:42.Airlines come through this? An icon that spans five generations. Welcome

:00:43. > :00:47.to Asia Business Report. It is hard for an airline to rebound from one

:00:48. > :00:55.disaster, let alone to within a space of two months. Even before the

:00:56. > :00:57.disappearance of MH 370, Malaysia Airlines were struggling. Can they

:00:58. > :01:15.rebound after have three options. They can put a

:01:16. > :01:22.lot of money after it, but I don't think that is viable. They could do

:01:23. > :01:32.something similar to Japan Airlines. They could put it into bankruptcy.

:01:33. > :01:36.They could privatise the airline. Let's look at the option of carrying

:01:37. > :01:44.on as they are. They have the backing of the government. Can they

:01:45. > :01:51.keep pouring money in? They can do that on the short`term. In the

:01:52. > :01:57.mid`term to the long`term, that is not an option. They are losing money

:01:58. > :02:02.and something needs to done. Even before the second incident, they

:02:03. > :02:09.were already making huge losses. What about bump

:02:10. > :02:25.`` bankruptcy? That is what Japan Airlines did. It is possible. We

:02:26. > :02:29.have seen their share price decrease since the beginning of the year. You

:02:30. > :02:37.have to do things to turn the airline around. Privatisation might

:02:38. > :02:42.mean rebranding and giving it a new name. That would cost hundreds of

:02:43. > :02:48.millions of dollars. It will cost money. With privatisation, we may

:02:49. > :02:54.look at some spin`off of the operations and Malaysia Airlines

:02:55. > :03:00.keeping the carrier. Will this impact other regional carriers and

:03:01. > :03:06.travel in the region? Without a doubt. Long`distance travel has been

:03:07. > :03:10.challenged since the Asian financial crisis. Lack of safety, which would

:03:11. > :03:14.be the first concern of all airlines, is going to create

:03:15. > :03:24.problems for consumers travelling at those distances. Stock is falling

:03:25. > :03:29.11% on Friday in Kuala Lumpur. The share price is down more than 30%

:03:30. > :03:35.this year. We will know the latest numbers soon when the stock exchange

:03:36. > :03:43.opens for trading. In other news, one of India 's largest industrial

:03:44. > :03:48.conglomerates has reported a jump in profits, thanks to return turnaround

:03:49. > :03:55.in oil and gas. Net profit in April and June rose to 1 billion. That is

:03:56. > :04:00.14% higher than the year earlier. It is controlled by India 's richest

:04:01. > :04:14.man. He has many plans in the pipeline and includes retail. What

:04:15. > :04:19.happens when the World Bank president tells a chief business

:04:20. > :04:26.correspondent about Chinese leadership. My predecessor started a

:04:27. > :04:33.wonderful process. He and the Chinese government put forward a

:04:34. > :04:40.report called China 2030. It laid out all the calls for reform. They

:04:41. > :04:46.wanted to talk about growth driven from exports to one driven by

:04:47. > :04:50.consumption and services. They made explicit commitments to move toward

:04:51. > :04:56.higher quality and more sustainable growth. They followed the plan and

:04:57. > :05:01.they follow it today. Even though growth has dropped, they continue to

:05:02. > :05:06.go forward with reforms. The Premier and the President asked me to tackle

:05:07. > :05:11.healthcare. It is a huge issue for China. They have rapidly rising

:05:12. > :05:18.demands and there is a huge demand on hospitals. They have to get this

:05:19. > :05:23.right. They have to get this trusting relationship to continue.

:05:24. > :05:29.We have to up our game. We have to provide value. I will follow the

:05:30. > :05:34.study closely. It is my area. It is something I have worked on my entire

:05:35. > :05:38.life. We provide the Chinese a vision of how to go forward that

:05:39. > :05:44.will decrease their costs and improve their outcomes. If we can do

:05:45. > :05:48.that, we can show that we are relevant. It is important to do

:05:49. > :05:54.that. There is a new development bank. It is something that you have

:05:55. > :05:59.said that you would look forward to working with, but what kind of

:06:00. > :06:08.formal arrangements would be needed to ensure that the work of that bank

:06:09. > :06:13.was co`ordinated with your work? I welcome the increased efforts to

:06:14. > :06:17.fund infrastructure. It is what we need to end poverty and boost

:06:18. > :06:22.prosperity. There is not a clear operating procedure that has been

:06:23. > :06:26.laid out in great detail. We look forward to working closely. The

:06:27. > :06:30.Chinese government has asked us to have a person to work with them to

:06:31. > :06:36.help as they put their ideas together. We are happy to do that.

:06:37. > :06:48.You can catch more of that interview with the World Bank president on

:06:49. > :06:56.Talking Business. After 97 years of family ownership, a majority stake

:06:57. > :07:01.in Forbes media has been sold. A Hong Kong `based group has bought

:07:02. > :07:08.it. Forbes magazine was sold for an undisclosed sum. The Forbes family

:07:09. > :07:13.says it will retain a significant share of the group, which includes

:07:14. > :07:20.the magazine. The current chairman and editor in chief will remain. For

:07:21. > :07:26.over a years, one family has been making Australia 's most iconic

:07:27. > :07:30.hats. Since its inception, it has been run by the same family. There

:07:31. > :07:42.is a lot to consider when thinking about who is next in line. Aside

:07:43. > :07:47.from one of these, one of these hats is about as icon at the Australian

:07:48. > :07:52.as it gets. The hardware in rabbit fur hats are a staple for farmers

:07:53. > :07:59.and lunches. They have graced the hands of politicians, celebrities

:08:00. > :08:09.and religious leaders. The company has been run by the same family

:08:10. > :08:14.since its inception 137 years ago. The factory in New South Wales

:08:15. > :08:22.produces 140,000 hats each year. They use custom machinery that was

:08:23. > :08:27.designed by their great`grandfather. We have survived through recessions

:08:28. > :08:35.and wars. We are first generation now. It is a long part of Australia

:08:36. > :08:41.'s history. It takes over a month to make the hat. 200 hands will touch a

:08:42. > :08:44.hats before it is done. He says his siblings grew up on the factory

:08:45. > :08:49.floor, where they learnt the trade from their father and grandfather.

:08:50. > :08:57.We would vacuum the floors and do odd jobs in the holidays. We all did

:08:58. > :09:06.that. It grounded us well. His sister, Nicky, who was a director,

:09:07. > :09:09.says things have changed. It was in sole ownership are now three of us

:09:10. > :09:15.own it. There are seven children between us. We are working hard to

:09:16. > :09:22.see what the smoothest way forward will be. It has to be the best

:09:23. > :09:27.person for the job. Simple as that. If someone wants to be there, but if

:09:28. > :09:32.there are two that want to be here and one is not as well qualified,

:09:33. > :09:37.they will miss out. If that is one of my children, that is hard, but

:09:38. > :09:44.that is a decision we have made as a group. These sums so they would like

:09:45. > :09:50.to be part of the business in a future. `` these sons. I can't

:09:51. > :09:56.imagine it not been part of the family. We have all done an amazing

:09:57. > :10:06.job. Being part of an Australian icon, it would be great to continue.

:10:07. > :10:11.The family legacy is well intact. Before we go, here is a quick look

:10:12. > :10:19.at the markets. Asian stocks are in positive territory. There were gains

:10:20. > :10:30.on Friday, but there are many questions that remain over the crash

:10:31. > :10:32.of Malaysia Airlines flight MH 17. Thank you for investing your time

:10:33. > :10:36.with us.