:00:00. > :00:11.drugs offences which she had always denied. Those other
:00:12. > :00:14.business news live from Singapore. Fuel subsidies, as we await
:00:15. > :00:16.final count of Indonesia's collection, we look at a key
:00:17. > :00:30.economic issues facing the new president. Subsidizing petrol has
:00:31. > :00:34.led to a ballooning deficit, which is unsustainable for their economy.
:00:35. > :00:41.Shanghai's shut down. A food scare in China said to be selling out of
:00:42. > :00:54.date meat. Welcome to Asia Business Report. By
:00:55. > :00:57.an `` I am Rico Hizon. Indonesia is set to announce the
:00:58. > :01:00.winner of the presidential election today with almost all of the votes
:01:01. > :01:04.counted. Most private tallies give Joko Widodo a slim lead over his
:01:05. > :01:07.rival. Whoever takes over as president will have to tackle the
:01:08. > :01:16.issue of fuel subsidies, the main cause of their current deficit. Now
:01:17. > :01:18.we go to our correspondant from Jakarta.
:01:19. > :01:30.Every year, Indonesia spends $20 billion subsidizing fuel for its
:01:31. > :01:33.citizens. Petrol at these pumps is around 56 cents per litre, which
:01:34. > :01:37.means that Indonesians are paying some of the cheapest prices in the
:01:38. > :01:40.world for their fuel. This is a gas guzzling country and demand is high
:01:41. > :01:48.with the middle class buying more than ever before. Critics say fuel
:01:49. > :01:50.subsidies only benefit the wealthy in Indonesia and raising subsidies
:01:51. > :01:53.is unlikely to be popular. TRANSLATION: I don't agree with the
:01:54. > :02:02.decision to get rid of subsidies. They keep raising prices, it is
:02:03. > :02:05.enough. TRANSLATION: I guess the subsidies must be reduced but it
:02:06. > :02:09.would be better if they could hand back some cash to the poor in some
:02:10. > :02:12.other way. Analysts say that the reality is that Indonesia no longer
:02:13. > :02:20.has a choice when it comes to raising fuel prices. Subsidizing
:02:21. > :02:23.petrol has led to a huge deficit, which is unsustainable for their
:02:24. > :02:26.economy. It could prove to be dangerous as this country tries to
:02:27. > :02:33.maintain economic stability in the future.
:02:34. > :02:37.Malaysian Airlines faces a difficult road ahead as it tries to restore
:02:38. > :02:40.its reputation in the wake of its disasters, but could the flood of
:02:41. > :02:48.compensation claims also affect the airline's bottom line? Solicitor,
:02:49. > :02:52.Joseph Wheeler, is an expert on this issue and he gave us his estimate on
:02:53. > :02:59.how much the claims are likely to cost. In a loss of this size,
:03:00. > :03:03.typically the claims could run to hundreds of millions of dollars.
:03:04. > :03:09.White hundreds of millions of dollars. `` hundreds. And currently
:03:10. > :03:13.they are recovering from the loss of MH370. Is there any prospect of
:03:14. > :03:21.getting back the original compensation money given that it is
:03:22. > :03:24.possible they are not to blame? Good as they negotiate with the
:03:25. > :03:38.Russians, the Ukrainians or the pro`Russian separatists? Only time
:03:39. > :03:41.will tell. History has shown us that in cases like this, that either an
:03:42. > :03:43.admission by a government or persuasion through political efforts
:03:44. > :03:46.can result in that sort of compensation. Or full compensation
:03:47. > :03:48.to be payable to passengers, they would be subject to the Montreal
:03:49. > :03:51.Convention, which covers proven losses, but does not cover all of
:03:52. > :04:04.the losses that these families are tragically facing now. Could they be
:04:05. > :04:07.legally negligent, given the decision was to fly through a war
:04:08. > :04:14.zone? Negligence is a curious issue when it comes to air crash cases. It
:04:15. > :04:17.is strictly not applicable in terms of liability of the air carrier,
:04:18. > :04:21.except insofar as the measure of damages. But with all of this
:04:22. > :04:28.compensation being paid, could the airline go bankrupt? There have been
:04:29. > :04:30.a lot of questions about the financial capacity of Malaysian
:04:31. > :04:33.Airlines, but what people must remember with the international
:04:34. > :04:43.treaty is that the airline must be fully insured for losses of this
:04:44. > :04:53.kind. That is mandatory under the Montreal Convention. That was,
:04:54. > :04:55.Joseph Wheeler, an expert in aviation compensation claims and
:04:56. > :04:57.joined us from Brisbane. Keep up`to`date with all the latest
:04:58. > :05:01.developments into the MH17 crash right here on BBC News. Log onto our
:05:02. > :05:04.website where you will find special coverage including news that revels
:05:05. > :05:05.in Ukraine have handed over the flight data recorders to Malaysian
:05:06. > :05:07.authorities. British regulators are looking over
:05:08. > :05:10.allegations of price`fixing. The Serious Fraud Office is looking into
:05:11. > :05:13.alleged fraudulent conduct and more than a dozen international agencies
:05:14. > :05:16.are investigating claims of price manipulation. It is alleged that
:05:17. > :05:25.online chat rooms were used to fix benchmark prices.
:05:26. > :05:33.The board of Time Warner has taken steps to fend off the takeover bid
:05:34. > :05:45.of Rupert Murdoch. Hate eliminated a petition that could have been used.
:05:46. > :05:48.Last week they rejected a $75 billion takeover offer from the
:05:49. > :05:50.media giant, 21st Century Fox. Yahoo has acquired an application
:05:51. > :05:53.analytics company called Flurry to help boost advertising revenue from
:05:54. > :05:55.smart phones. Flurry helps app developers learn more about their
:05:56. > :06:04.users and deliver more personalized ads to them. Some are saying that
:06:05. > :06:08.they paid up to US $300 million. A factory in Shanghai has been shut
:06:09. > :06:11.down for selling out of date meat to restaurants across China, including
:06:12. > :06:20.McDonald's and KFC. It is the latest in a number of food scares.
:06:21. > :06:23.This food scare was triggered after a report on television, which said
:06:24. > :06:31.that the supplier who was selling this meat had passed its sell by
:06:32. > :06:34.date. Both the giants involved, McDonald's and KFC, say that when
:06:35. > :06:37.they found out, they immediately stopped supplies and will carry out
:06:38. > :06:41.investigations into how this could've happened in the first
:06:42. > :06:43.place. It is the latest in a long line of food safety scares in China
:06:44. > :06:52.that have damaged consumer confidence.
:06:53. > :06:56.Generally speaking, foreign brands are seen as more reliable here and
:06:57. > :07:00.in terms of KFC, this is the second safety scare for them in 12 months,
:07:01. > :07:10.the last one was in December and sales slumped after that. With this
:07:11. > :07:13.latest scare, with than 4000 KFC restaurants in China, they will once
:07:14. > :07:17.again be worried that this will affect their bottom line. Technology
:07:18. > :07:23.companies are integrating the internet with other devices. It
:07:24. > :07:27.might be convenient to check on your laundry or adjust your thermostat
:07:28. > :07:32.from the office. Could there be security implications? I asked Hugh
:07:33. > :07:39.Thompson if people are ready for this level of integration. That is
:07:40. > :07:43.the biggest thing on the mind of security professionals. As we
:07:44. > :07:47.connect the washing machine, the refrigerator, as your card now talks
:07:48. > :07:53.to Facebook, are we ready for this kind of interaction? Is security in
:07:54. > :08:00.place as white or consumers... Can we trust these devices? I think that
:08:01. > :08:05.we are starting to get to the point where we are layering security onto
:08:06. > :08:10.those technologies, but we are just at the very beginning because it has
:08:11. > :08:16.exploded so quickly `` car. `` in place? Now we are asking how we take
:08:17. > :08:23.these devices and make sure they are safe. I am sure that hackers are one
:08:24. > :08:27.step ahead of these companies. They could turn on your other than oil
:08:28. > :08:37.float your kitchen temporarily or even control your car. `` or flood.
:08:38. > :08:40.You have to be ahead of the curve. Some of these guys in the hacker
:08:41. > :08:43.community are very talented but the good news is, there are a lot of
:08:44. > :08:47.smart people who have made the security profession their career
:08:48. > :08:49.now. It is becoming a path for smart developers, people who are excellent
:08:50. > :08:53.in the business field and we are seeing a huge growth in the security
:08:54. > :09:06.community to counteract that kind of hacking. This integration of devices
:09:07. > :09:09.are already widely used in the United States. You can control your
:09:10. > :09:16.thermostat and washing machine. Is this technology already being used
:09:17. > :09:21.widely in Asia? It is Ground Zero. If you think about the massive
:09:22. > :09:28.penetration of smartphones. Think of how many things are now connected to
:09:29. > :09:31.your smart phone. Asia is a very interesting place because it is the
:09:32. > :09:40.place that many companies are starting to run early experiments in
:09:41. > :09:44.getting the product out to market. How do you raise productivity in
:09:45. > :09:49.sweltering heat? In Seoul, employees are allowed to take a one hour
:09:50. > :09:55.afternoon nap in summer. There is a catch, staff have to make up lost
:09:56. > :09:59.time by working overtime. Before we go, here is a quick look
:10:00. > :10:05.at the market. Asian markets are currently mixed. US equities were
:10:06. > :10:11.treated overnight after investors were cautious over the issue in
:10:12. > :10:17.Ukraine with Russia. The Australian index is down slightly. Thank you
:10:18. > :10:30.for investing your time with us. I am Rico Hizon. By `` goodbye for
:10:31. > :10:32.now. Welcome to BBC News. I'm Adnan
:10:33. > :10:33.Nawaz. The