12/09/2014 Asia Business Report


12/09/2014

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to price rises and job cuts. Now on BBC News all the latest

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business news live from Singapore. More jobs and greater economic

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process, how innovation can help Asian countries find a way. How

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cutprice smart phones are helping millions to go mobile in India and

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creating huge opportunities for businesses. Welcome to Asia Business

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Report. No other region in the world has achieved growth at the rate of

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Asia over the last three decades but their bank is warning that to avoid

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being stuck in the middle income track, countries have to move away

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from agriculture and low`end manufacturing and engage in

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technology, skills and services. They invest millions in innovation

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but can you manage its benefits? It has been tracked for the first time,

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ranking Japan in first. Korea is on it's heels with many following

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behind. Me San Suu Kyi, Pakistan and Cambodia are at the bottom of the

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list `` Myanmar. We have created an index which measures the

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efficiency, I am talking about infrastructure and innovations but

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most importantly, to see whether we have converted that into efficiency

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of output. This index is unique in that it is able to do that and can

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also tell you whether a country has the capacity to innovate, incentives

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to do so and did the right kind of environment for innovation. It seems

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like it is dependent on many different factors but the greatest

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amount of innovation and creativity, whereabouts is it in

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Asia and which sectors? Japan is number one in our index. They have

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done pretty well in a number of sectors, technology, they are quite

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good. Asia in general have a tendency to not include this

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innovation and creativity as part of their education and this is where

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they will have to do a lot in the future including new education. You

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were talking about inputs and how it is measured Rue patrons but ``

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through pay tends to `` through patents. But what about Singapore?

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That's right. They need better outputs in the future. There is so

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much potential. Some of the smaller countries do not have it. That is

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the good part of the index, often innovation is seen as something only

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in the reach of the developed countries but it is equally

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important for smaller countries. Innovation is also a key theme of

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the world `` World Economic Forum I'm Mike Embley. But if China is

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going to continue to grow, they will need to make some changes. Now we go

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to our correspondent. What can you tell us? China is working to become

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far more innovative and they need to ask whether they are working towards

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the right skill set? The importance of education is an area that has

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been very well researched and I spoke to a senior partner in Asia

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about it. It is one of the gig as challenges for China going forward,

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to create enough high`quality jobs that will help people move towards

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the middle class. Just standing still with a number of jobs in

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manufacturing and service sectors. The unemployment rate is relatively

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low, around 5%. It is massive underemployment in many sectors.

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Especially in government companies and the like. They are being pushed

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by five at sectors and manufacturing `` private sectors. They are

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deploying the technology that they need to put robots on the line

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because labour has pushed up the minimum wage so much in China and

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labour has become very expensive. The state of enterprise is that they

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compete and have to do the same thing. So we have significant

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underemployment, what happens when this country becomes even more

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technologically driven and driven by innovation? It will not be a good

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outcome if it continues as it is but the good news is, many people

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recognise bat and there will be fewer jobs in traditional services

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like large`scale retail. Thank you Boka longline and even agriculture

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will be mechanized. What you have to do is change the education system

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while people are in traditional schooling to encourage them to

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develop the skills to be more creative. There needs to be a scale

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of free training for the people that lose their jobs. It is just getting

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started and it will be massive opportunity for private sector

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businesses. You are optimistic but do you worry about the interim

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period? Do you worry about what happens while China transitions with

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millions of graduates who cannot find work? I do worry that if we let

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this extend for too long, a generation of graduates will never

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get three skilled and will become lost. The implications of that will

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be horrible `` re`skilled. At this is a cultural issue as well as an

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educational one so you cannot envy the task. Thank you. The latest

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iPhones could well shake up the market but in India low`price mark

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devices are bombarding the market. They are set to open new online

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opportunities as millions of people take to the Internet for the first

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time. Now we go to our correspondent. India is going

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mobile. Smartphone sales have almost doubled from the same time last year

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as low`cost models have hit the market, voting devices into the

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hands of numbers Dove huge numbers of Indians for whom they were

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previously out of reach. `` huge numbers of. The Cloud Fx was just

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launched. Big prize is just 33 US dollars. `` the price. More Indians

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are now online, over half a billion in three years time. They believe

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Indian companies should grab this opportunity and provide immediate

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content, mobile phones and other media to the masses. Telecom is huge

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and movies are big. Indian oriented services have not yet been created.

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There is a loss of vernacular which will be asked for by Indian

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consumers. Mobile retail could also be much bigger than it is today but

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only if new users can be coaxed into shopping online. This mobile app

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developer is adept at overcoming consumer reluctance and believe new

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consumers need to be offered incentives to purchase online and an

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option to pay in cash. Not everybody has money in India and if you were

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going to go to any income, you would see cash on delivery as an option

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for low value products. Late last month, the government announced a

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programme to boost financial inclusion which could allow

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increased mobile banking. Cash may be king for now but it appears that

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India's online business ecosystem may be taking shape. You can catch

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more of that and other stories over the weekend. Starbucks is

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reconsidering its dress code for its workers. Staff with tattoos have

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been told to keep them completely under wraps. The coffee giant may

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now be changing its mind with an internal e`mail saying that they are

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revisiting their dress code including the tattoo policy. Asian

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shares are fairly flat this Friday with data from China due out this

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weekend. Industrial production and retail sales info will be released

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over the weekend. Thank you for watching.

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I'm Mike Embley. The top stories this hour. Cleared of murder but

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it's not over yet: on Friday Oscar Pistorius finds out if he's cleared

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or convicted of the manslaughter of his girlfriend. Ten Arab countries

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agree to join the American coalition against the jihadists of the

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militant group Islamic State. An

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