:00:00. > :00:19.Now on BBC News, all the latest business news live from Singapore.
:00:20. > :00:28.Indecision, 2016. What will a hung parliament mean for Australia's
:00:29. > :00:35.economy? And efforts to stop people stuffing cash and mattresses. --
:00:36. > :00:40.under. Spreading banking to rural areas. Hello, and welcome to Asia
:00:41. > :00:46.Business Report. I am Rico Hizon. Thank you for investing your time
:00:47. > :00:53.with us. Thank you for joining us. I am Rico Hizon we start off in
:00:54. > :00:58.Australia. The Electoral Commission is resuming counting today. More
:00:59. > :01:05.than 20% of ballots remain. It is likely the election could result in
:01:06. > :01:15.a hung parliament. Neither major party can form a government without
:01:16. > :01:19.support of third parties or key -- or independents. What does that
:01:20. > :01:27.mean? It is bad news for the economy. It will drag. It will be
:01:28. > :01:33.bad for the Conservative government if they can get in because it will
:01:34. > :01:37.be hard to pass tax cuts without control of the Senate. That could
:01:38. > :01:42.negatively impact business confidence. That good also impact
:01:43. > :01:47.investment in the economy and economic growth overall. -- could.
:01:48. > :01:52.We saw a hung parliament back in 2010 with the mining boom is still
:01:53. > :01:58.in-flight. It wasn't a problem because of that. This time, it is
:01:59. > :02:01.not helping. A major concern for corporate tax. You also have other
:02:02. > :02:09.key reforms that have to be passed by the Parliament. Potentially,
:02:10. > :02:15.tensions. That is right. For example, if the Coalition forms
:02:16. > :02:20.government, they recently had a budget that announced changes with
:02:21. > :02:24.superannuation, tax cuts for middle income workers, and also budget
:02:25. > :02:27.savings longer term to get the budget back under control. All of
:02:28. > :02:33.those things would be in doubt because they would not have control
:02:34. > :02:36.of the Senate. Alternatively, if the opposition Labour Party wins, and
:02:37. > :02:40.you are looking at more government spending in other areas and higher
:02:41. > :02:45.tax rates in some areas, they may be able to pass those. Put all those
:02:46. > :02:53.things together that is a worse outlook for the budget. If that is
:02:54. > :02:58.the case, is it inevitable that Australia will have a credit rating
:02:59. > :03:02.downgrade? I won't say it inevitable, but probable. The
:03:03. > :03:06.reality is most scenarios coming out of the election in terms of who
:03:07. > :03:11.governs and the ability to pass laws through the Senate points to a
:03:12. > :03:14.worsening of the budget outlook. Getting towards surplus will be
:03:15. > :03:20.harder. The rating agencies have been getting nervous about
:03:21. > :03:27.Australia... So, with a nation left hanging, could this and their growth
:03:28. > :03:31.pattern of over 25 years? I don't think so. There is enough in the
:03:32. > :03:36.economy, interest rates are low, a poor Australia dollar over the last
:03:37. > :03:46.five years, that has helped. There is enough in the economy to keep it
:03:47. > :03:49.going. But it will be lower growth. Bangladesh is reeling from a terror
:03:50. > :03:58.attack on Friday which killed more than 20 people, including many
:03:59. > :04:05.foreigners. Already, Japan's UNIQLO has halted flights to the country.
:04:06. > :04:15.Could it affects the textile sector? We spoke to the vice president of a
:04:16. > :04:20.wrangler do see garment association. -- Bangladeshi. He says the latest
:04:21. > :04:25.violence won't stop foreign investors. I don't think so. We have
:04:26. > :04:28.spoke to some brands. The want to continue business because they
:04:29. > :04:36.believe this is an isolated incident. We have talked with our
:04:37. > :04:44.government, we have talked with security people of our country.
:04:45. > :04:47.Recently, there were several incidents that happened, including
:04:48. > :04:56.in Europe, Turkey, India, and other countries. So, we have to work
:04:57. > :05:01.together with all the stakeholders. We are talking about that. I believe
:05:02. > :05:11.there are some concerns for the brands. But they are here. And they
:05:12. > :05:16.have confidence in us. Bangladesh is a hospitable country. We are good
:05:17. > :05:20.with our brands and the foreigners. So, I believe we can overcome this
:05:21. > :05:26.image problem and the brands will have confidence in us.
:05:27. > :05:40.MUSIC PLAYS. I don't think so. I don't think there is any problem for
:05:41. > :05:48.security. That is because they are travelling here. We have had several
:05:49. > :05:53.meeting with the brands. -- meetings. We feel they have
:05:54. > :06:00.confidence in us and our security system. I do think there will be any
:06:01. > :06:04.problems in the future. In other business news, making headlines, the
:06:05. > :06:09.United States has surpassed Saudi Arabia as the biggest holder of oil
:06:10. > :06:13.reserves. That is according to a consultancy group. More than half of
:06:14. > :06:21.the reserves in America are Shell Oil with Texas hold 'em much of it.
:06:22. > :06:26.In the UK, there is a massive tax cuts suggestion for business to get
:06:27. > :06:33.more investment in the UK following the decision to leave the EU. George
:06:34. > :06:37.Osborne wants to slash it from 20% to under 15%. That would give the UK
:06:38. > :06:43.the lowest corporation tax of any major economy. Here is what he and
:06:44. > :06:49.the Shadow Chancellor had to say about it. In my view, the strongest
:06:50. > :06:54.signal we could send the world that Britain, after this referendum, is
:06:55. > :06:57.open to the world, and ready to do business, is to cut corporation tax
:06:58. > :07:04.still further. We should aim for a rate of 15% and hopefully lure. I
:07:05. > :07:10.have to say that a lack of planning for the lever vote is becoming
:07:11. > :07:15.evident in all policy areas. Instead of a good plan of action we have
:07:16. > :07:20.just had these rubbish statement. The most populous country on the
:07:21. > :07:24.planet. India. Fewer than half of all Indians have a bank account.
:07:25. > :07:28.That is something that the government wants to change. A plan
:07:29. > :07:37.to open up more simple banking services seems to be a stumbling
:07:38. > :07:44.block. We have more. A typical bank branch in typical Indian village. At
:07:45. > :07:47.least they have one. More than 800 million people live in India's
:07:48. > :07:54.countryside. Most of them have nowhere to put their cash. Many
:07:55. > :07:59.wonder why they don't have one. How do they change that? They are trying
:08:00. > :08:05.to open simple banks were people can put money and pay bills but not get
:08:06. > :08:08.loans or have credit cards. Instead of building credit branches like
:08:09. > :08:13.these, it will reach people through a kiosk and a mobile phone. That
:08:14. > :08:19.will help get people to the banking system. But it isn't going to plan.
:08:20. > :08:21.11 companies, non- finance specialists, have been given
:08:22. > :08:32.licences. But already three have pulled out. These are those three.
:08:33. > :08:41.All have decided the scheme does not make business sense. That is
:08:42. > :08:46.frustrating for firms like PayPoint India. It's licence was rejected.
:08:47. > :08:53.They say the criteria to choose firms was too narrow. They should
:08:54. > :09:00.have been part of it. The companies granted licence, they lack customer
:09:01. > :09:04.understanding. The only difference between those who did not get it and
:09:05. > :09:11.those who were offered it was networks. The Reserve Bank of India
:09:12. > :09:15.has defended the suggestion. They said they were unhappy with
:09:16. > :09:22.companies dropping out. We gave out licences to anybody we thought had
:09:23. > :09:27.the appropriate qualifications to run a payment bank. Therefore, when
:09:28. > :09:30.you go forward, do a proper assessment don't just go for a
:09:31. > :09:37.licence because it is a valuable property to have. Instead, do to
:09:38. > :09:42.diligence on your own. When you apply it should be with proper
:09:43. > :09:49.intend. -- Maicon. The first payment bank will launch in August with the
:09:50. > :09:56.opening next year. It is time to look at financial inclusion and
:09:57. > :10:01.whether it is on the right path. A quick look at the markets. Asia is
:10:02. > :10:05.wobbly in early Tuesday trading. The first loss in about a week. This is
:10:06. > :10:12.after investors still await more clarity on Britain's life outside
:10:13. > :10:20.the European Union. Their markets lost overnight. Trading volume has
:10:21. > :10:23.been kept. Japan is trading down a fall per cent. The All Ords Index
:10:24. > :10:34.losing half a percent. The hon Sang index will be opening in about 50
:10:35. > :10:36.minutes. -- hung Sang PayPoint India Hang Seng.