:00:00. > :00:00.Brunger were stabbed to death on the island of Borneo. Now on BBC News,
:00:00. > :00:13.all the latest business news live from Singapore.
:00:14. > :00:21.Malaysia Airlines is to be completely restructured. The
:00:22. > :00:26.government move to take full control. That way the import and
:00:27. > :00:27.export business isn't getting the boost it should from free`trade
:00:28. > :00:48.agreements. Welcome to a `` Asia Business. The Malaysian
:00:49. > :01:00.government is stepping in over Malaysia Airlines. Khazanah
:01:01. > :01:10.Nasional has taken over. It had problems even before the recent
:01:11. > :01:17.disasters. What can you tell us? This has been expected. The other
:01:18. > :01:23.option was that the airline declared itself bankrupt. Only 70% was able
:01:24. > :01:28.to be bought freely on the stock exchange. The rest was held by the
:01:29. > :01:38.state investment firm Khazanah Nasional. Most of that is owned by
:01:39. > :01:46.the country's pension fund. By privatising the airline, they would
:01:47. > :01:51.have to buy 30%, valued at over $300 million. This has been costing
:01:52. > :02:07.Khazanah Nasional and lots of money. Firm has a ready and $1 billion on
:02:08. > :02:13.the airline. `` has already spent. The company has lost a lot of money.
:02:14. > :02:18.Its market value dropped dramatically after the tragedies.
:02:19. > :02:31.Even before MH17 , it had ready lost a lot of money
:02:32. > :02:42.and with the foreign exchange fluctuation. We are looking at a
:02:43. > :02:47.complete overhaul? It is going to be a complete restructuring. It is. We
:02:48. > :02:51.already had some details earlier in June. That was when Khazanah
:02:52. > :02:59.Nasional had announced it had a huge restructure. The scheme would be in
:03:00. > :03:03.a period of six months to 12 months. They are going to restructure the
:03:04. > :03:07.airline and have a complete overhaul. Its business model, it's
:03:08. > :03:15.operation, its finance, its regulatory. There is going to be a
:03:16. > :03:20.lot more to come. Thank you. In China, the trial has just begun of a
:03:21. > :03:31.British investigator and his wife accused of illegally trafficking
:03:32. > :03:42.personal data. Peter Humphrey and his wife are accused of taking
:03:43. > :03:49.personal data and selling it. The Indonesian wine cellar Rudy
:03:50. > :03:54.Kirniawan is going to go to jail for selling fake wine in the United
:03:55. > :04:00.States. Free`trade agreements are held by government is promoting fair
:04:01. > :04:04.country 's exports and opening new markets, but how effective are they?
:04:05. > :04:20.Only one in ten exporters use an FDA. The years, many bars in
:04:21. > :04:31.Singapore only used locally produced beer. But now with FTAs with
:04:32. > :04:44.countries like New Zealand, Australia and America, have brought
:04:45. > :04:49.down prices. This is mostly American and Australian beers. Other traders
:04:50. > :04:56.also benefit. He has been importing beer from Australia since 2003 when
:04:57. > :05:03.the free`trade agreement was signed. We say 7% on the cost of goods and
:05:04. > :05:09.we reinvest that. We do that for seven years. In Asia, Adrian's
:05:10. > :05:21.business is the exception rather than the rule. FTA at assigned to
:05:22. > :05:29.improve access, but they're not done much good if companies do not them.
:05:30. > :05:37.`` use them. The outcome was clear. Governments need to do more to
:05:38. > :05:57.explain this. There is a silver lining. Businesses
:05:58. > :06:04.using the set that their exports jumped by 86%. Back at the bar, the
:06:05. > :06:09.owners are reaping the rewards. While the customers of this back are
:06:10. > :06:11.blissfully unaware of the benefits of a trade deal, the challenges is
:06:12. > :06:16.to get more Asian businesses to do the same. To find out what has gone
:06:17. > :06:40.wrong with FTAs, I spoke to Noel Quinn. The
:06:41. > :06:43.feedback is that it is too complex and that there are too many. And
:06:44. > :06:52.remember that a FTA could run to 500 pages. Complexities are putting
:06:53. > :06:57.people off using them. It is not a matter of the benefits automatically
:06:58. > :07:01.flowing through. Companies have to work their way through the
:07:02. > :07:04.bureaucracy to get the benefits? They have to comply with the
:07:05. > :07:13.conditions of the specific FTA that has been signed. Many are lateral.
:07:14. > :07:17.That is supposed to multi lateral. What we have found is that the
:07:18. > :07:34.multilateral FTA that serves a `` ASEAN has a much high utilisation
:07:35. > :07:39.rate. The bilateral ones only had a 19% utilisation rate according to
:07:40. > :07:42.the business as we survey. Staying with trade and the impact that it
:07:43. > :07:47.can have on countries, Russia has released the details of its full
:07:48. > :07:50.embargo on food imports from the European Union, the United States
:07:51. > :07:55.and Australia amongst other Western nations. It is part of Russia's
:07:56. > :07:58.retaliation over sanctions imposed in the crisis in Ukraine. The band
:07:59. > :08:06.will last one year and includes meat, fruit and vegetables, as far
:08:07. > :08:13.as dairy imports. In this region, aged effect $370 million of
:08:14. > :08:28.Australia's agricultural imports. I spoke earlier to Adrian Barath. Bat
:08:29. > :08:35.Jonathan Barrett. When you look at Australia, it doesn't rank in the
:08:36. > :08:44.top ten. The GDP represents .8%. It will hurt, but it won't be a
:08:45. > :08:49.significant hurt. What product in particular are we looking at in
:08:50. > :08:57.terms of Australia and New Zealand and Russia? In particular, the large
:08:58. > :09:04.stock of dairy. Russia imports from the EU, America and Australia. It
:09:05. > :09:11.imports 95% of its dairy. When you see it importing dairy for the
:09:12. > :09:21.Russians, it is going to have more harm to the local population back to
:09:22. > :09:30.us. Australia has been very vocal in this. There were a number of
:09:31. > :09:47.Australians on board MH17. How is this playing in Australia? Have you
:09:48. > :09:53.had complaints? It is tit for tat. Australia imports more from Russia,
:09:54. > :09:58.so if it is a tit for tat, you could see it has the reverse action
:09:59. > :10:01.happening. When you see that, there are less imports from Russia
:10:02. > :10:09.coming, until they come up for an agreement to remove the embargo. To
:10:10. > :10:12.recap our top story and breaking news this morning, and that is the
:10:13. > :10:24.move by Venetia's government to try to rescue Malaysia Airlines. ``
:10:25. > :10:27.Malaysia's government. Khazanah Nasional is taking control and their
:10:28. > :10:43.plan is for a complete overhaul. To their markets. That is it for this
:10:44. > :10:45.edition of Asia Business Report. The top stories this hour: President
:10:46. > :10:48.Obama has announced that he will authorise targeted strikes against
:10:49. > :10:51.Islamist militants in Iraq if they move towards the city of Irbil `
:10:52. > :10:54.where the US has a consulate and military advisers. The Israeli Army
:10:55. > :10:57.says Hamas has violated the ceasefire in Gaza, firing two
:10:58. > :10:58.rockets at Israel three hours before the truce