13/11/2015 Asia Business Report

occupying hospital beds because their discharge had been delayed.

Now on BBC News all the latest business news live from Singapore.

Is as looks set to star in Malaysia. Sluggish spending. And why the

booming car industry is attracting little investment in India.

Welcome to Asia Business Report. Falling commodity and oil prices,

uncertainty about US rates and allegations of corruption at the

heart of government. We have been speaking about Malaysia, and all

this is likely to be reflected when the country releases its latest

figures on economic growth. GDP growth has been slipping and is set

to fall even further, to 4.7%. I think that the third-quarter

numbers are likely to be quite robust. A figure of 4.7, we are

looking at something like 5%. That should bring the close to around 5%.

That is what analysts are going for and what the government is

expecting. The numbers show a pretty strong manufacturing output. They

have all gone up, including production, even in the fuel

sector. As you say, they are going to be robust figures. We know that

the Malaysian currency has fallen 20% against the US dollar, one of

the region's worst performing currencies. Has that helped or

hindered Malaysia? That gives a lift exports. It is doing both. For

exporters, they are doing very well. The question is whether it is

exporters are able to translate the more competitive currency into

production. That is used on production worries, labour and so

on. We have put that the political uncertainty. All of these

allegations surrounding the Prime Minister and concerns about the NDP.

Will the impact investor confidence? It is impacting more on consumer

confidence. If we look at consumer sentiment, and we have got various

calls looking out into 2016, those of the bad. Private investment,

understanding that this is from a lube base, is still increasing. --

low base. In other business news, the

International Monetary Fund has signalled it will soon decide on the

Chinese yuan as one of the reserve currencies. China last year asked

the IMF for its currency. Brazil says it will find mining

giants for the game -- dam burst which killed 18 people. The firms

could face even higher fines from environment will regulators for

pollution and state prosecutors are considering whether to pursue

criminal charges. Currency fluctuations in South East Asia are

causing headaches or many businesses. Now the biggest

telecommunications operator in the region has reported flat profits,

with exchange rates being part of the problem. It makes most of its

money elsewhere. Our Asia business correspondence has been speaking to

the chief executive. If you look at the quarter's earnings on a currency

basis, underlying earnings are up 4% on the reported basis. On the bottom

line, it has got a 4% impact. That is mainly from the steep

depreciation. Those two are very large reported earnings for us. And

what is your projection for this year, given we have a period of

slower growth? We have currency exposure. If we have a foreign

currency, we will hedge that. In terms of currency translation, there

is really not very much that can be done with 70% of our earnings not

being denominated in Singapore dollars. The translation impact will

always come up. Part of the impact is mitigated. While the rupiah

depreciated 6%, we saw the peso depreciating against the Singapore

dollar. Part of it is managed through diversification. He received

a salary of more than $4 million last year, a jump of 19%. How can

you justify that to your shareholders? I am not sure if I am

the best person to talk about with my compensation. If we look at how

we pay our senior executives, profit is one they mention. The other day

mention its overall value created and how we create value in times of

returning to shareholders. It is not just a single profit number that we

look at. India's Prime Minister, Narendra

Modi, is in the UK, and keen to convince the dish firms to do

business in his country. From motorbikes to copy, some well-known

means operate there. And now the trend to cash in on the growing

partnership. If you break down and the UK,

chances are you will call the AA. It is the biggest roadside assistance

company in the country. It has 14 million customers and came to the

aid of 3.5 million last year. It has got its sights on a brand-new

market. The roads of India's cities are already pretty congested. Car

ownership is on the rise. Every month around 150,000 new cars are

sold across India. While those vehicles will have warranties and

breakdown cover, it is estimated at more than 20 million cars do not.

That gap in the market is white the AA has purchased half the breakdown

business. It is a very large marketplace. We think it will be

three times the size of the UK market in the next four years. There

will not be any of the famous yellow trucks on the road, but you will

find its logo on its new partner. We needed a local partner with local

contacts and local expertise. We believe that local business will

benefit from our experience. We have been going ten years. We have a lot

of knowledge and experience. The technology appeals. In the drivers

tend to only call the firmware problem occurs. The TV as once

customers to pay in advance for breakdown membership. The customer

wants service technicians coming. They want to deliver the same

promise in India and in emerging markets. That is where they can make

a difference. Changing that habit and selling the idea of a recovery

service run by two well-known established brands will determine if

the ad venture proves more than a quick fix. A quick look at the

markets before we go. Most of the ones in Asia are falling down 1%. We

are seeing energy stocks, commodities shares being sold off

because commodity prices have been falling at a six-year low. Oil

prices as well have been plunging. That is it for Asia Business Report.

Thank you for watching. Britain and India have announced new

business deals worth more than thirteen billion dollars

during an official visit by