:00:00. > :00:14.Now on BBC News, all the latest business news live from Singapore.
:00:15. > :00:24.The signs were all there. We find out what the scandal will mean for
:00:25. > :00:33.Malaysia. Barea's largest shipping line is sinking. Is the global
:00:34. > :00:40.industry in troubled waters? Welcome to Asia Business Report. Malaysia
:00:41. > :00:46.government official has confirmed an unnamed official mentioned in a
:00:47. > :00:51.lawsuit over the 1MDB scandal is the country's Prime Minister. American
:00:52. > :00:55.investigators filed the lawsuit to seize billions of dollars worth of
:00:56. > :01:00.assets bought with money they believe was stolen from the
:01:01. > :01:03.Malaysian state investments fund. Still, the official claims the Prime
:01:04. > :01:10.Minister has done nothing wrong. Our correspondent sent this report.
:01:11. > :01:16.Frustration is rising on the streets of Malaysia. This was the first
:01:17. > :01:19.rally in the Department of Justice filed its lawsuit, which alleged
:01:20. > :01:27.that money was stolen from a Malaysian wealth fund by government
:01:28. > :01:30.officials. Protesters called for the arrest of a Malaysian official who
:01:31. > :01:36.is alleged to have received some of the money. It is widely understood
:01:37. > :01:40.that he is Malaysian Prime Minister Najib Razak, but he has denied
:01:41. > :01:43.wrongdoing. Many here have been telling me that they want Prime
:01:44. > :01:48.Minister Najib Razak to step down. They say even if he wasn't directly
:01:49. > :01:53.named in the lawsuit, the 1MDB fiasco happened under his watch.
:01:54. > :01:58.Members of Parliament are behind them, 100%. But now a senior
:01:59. > :02:02.minister in Najib Razak's Cabinet has confirmed to the BBC that he is
:02:03. > :02:07.the Prime Minister, but says he is not guilty. You are saying that
:02:08. > :02:11.Malaysian official number one is the Prime Minister of Malaysia, Najib
:02:12. > :02:14.Razak. Well, I agree that number one is the Prime Minister but the fact
:02:15. > :02:17.of the matter is that the Department of Justice did not name him
:02:18. > :02:23.directly, just like the other three or four gentlemen who were not named
:02:24. > :02:28.directly. That tells you that the Department of Justice is not placing
:02:29. > :02:34.whoever he is under investigation. He was in charge, this happened
:02:35. > :02:38.under his watch. Shouldn't he take responsibility? Yes, he took
:02:39. > :02:46.responsibility by ensuring that 1MDB is on the right path. Not to say
:02:47. > :02:49.that just because some NGOs or some opposition are against the Prime
:02:50. > :02:55.Minister and asking the Prime Minister to be... To vacate his
:02:56. > :02:58.position, the step-down, I think is a bit much. The former prime
:02:59. > :03:02.minister is calling for Najib Razak to step down. But the government
:03:03. > :03:06.says he is using this scandal against Najib Razak for his own
:03:07. > :03:17.personal gain, and is not without fault. There is some corruption, not
:03:18. > :03:23.me, during my time. We don't have corruption on this scale, involving
:03:24. > :03:27.the Prime Minister himself and involving sums which are described
:03:28. > :03:35.by the US as the biggest fraud and money laundering that they have had
:03:36. > :03:40.in decades. Now the fight is going to Malaysia's villagers where the
:03:41. > :03:45.bulk of voters live. The opposition is on tour to explain the scale of
:03:46. > :03:50.the fraud. With elections expect that in this year, this is where the
:03:51. > :04:01.real battle will be fought. For more on that story you can read the blog
:04:02. > :04:06.on the BBC website. Well, it could be the largest ever collapse of a
:04:07. > :04:09.shipping group. South Korea's shipping company will enter
:04:10. > :04:18.receivership after its creditors refuse to provide further funding.
:04:19. > :04:22.It is the world's seventh largest shipping line, accounting for just
:04:23. > :04:26.under 3% of the global market. It was unprofitable and format of the
:04:27. > :04:36.past five years and had a total debt of $5.4 billion at the end of June.
:04:37. > :04:41.Earlier I spoke to the chief executive of another company, asking
:04:42. > :04:44.him what affect Hanjin's collapse will have on the shipping industry.
:04:45. > :04:48.I guess we will have to wait and see what will happen in the coming days
:04:49. > :04:54.but it only was announced a couple of days ago. Everyone is looking at
:04:55. > :04:59.what will happen. You describe your phone as a travel agent for shipping
:05:00. > :05:03.lines, you the companies up with container lines. Will you continue
:05:04. > :05:06.to do business with Hanjin? We haven't been doing business with
:05:07. > :05:10.Hanjin for a while because of rumours about the challenges that
:05:11. > :05:14.they have had. So we decided to downscale our commitment with Hanjin
:05:15. > :05:21.awhile ago. But clearly the issue that Hanjin is having is perhaps
:05:22. > :05:24.broader than an industry issue, where in the last five years
:05:25. > :05:32.shipping lines have really struggled with imbalance and supply and
:05:33. > :05:37.demand, and it is broader than just one shipping line. It is the entire
:05:38. > :05:41.industry. In fact I was just going to ask you that, are its problems
:05:42. > :05:44.really of its own making, in eight failures related to bad
:05:45. > :05:48.decision-making or is it something more external, as you say? The
:05:49. > :05:53.global shipping industry has been in a huge slump due to the slowdown in
:05:54. > :06:00.global trade. Yes, so if you look at the history of the industry, until
:06:01. > :06:05.2008 with the global crisis, growth were steady. Since the financial
:06:06. > :06:08.crisis growth is closer to 4% or 5%, and the capacity which was built and
:06:09. > :06:11.planned during those years is now coming back to haunt the shipping
:06:12. > :06:19.lines because the cargo is simply not coming. In News just in, new
:06:20. > :06:23.Japanese data shows companies have increased factory and capital
:06:24. > :06:28.spending by more than 3% compared with the same time a year ago but it
:06:29. > :06:31.is less than what firms spent a month earlier. The numbers will be
:06:32. > :06:35.factored into the latest growth figures of the world's third-largest
:06:36. > :06:40.economy, which are due out next week. The Australian consumer
:06:41. > :06:52.watchdog has filed a lawsuit against the local arm of volts --
:06:53. > :06:57.Volkswagen. The head of the Australian competition and consumer
:06:58. > :07:04.commission described the alleged conduct as serious and deliberate in
:07:05. > :07:10.nature. And now to India, which plans to offer permanent residency
:07:11. > :07:14.to foreign entrepreneurs. The figures were confirmed as data show
:07:15. > :07:19.that growth had slowed their 27.1% in the three months to June. That is
:07:20. > :07:22.the lowest level in two years. Lawmakers signed off on the special
:07:23. > :07:27.visas for an initial period of up to ten years. Our correspondent gets
:07:28. > :07:34.the reaction of expat business owners in the capital. India is keen
:07:35. > :07:37.to get a larger share of foreign investment. Traditionally it has
:07:38. > :07:44.gone after big money. I sweeping reforms to rules and foreign direct
:07:45. > :07:51.investment. Now the government wants to track small and medium-sized
:07:52. > :07:57.businesses as well. Like Pizza rias. A franchise of Jamie Oliver's team,
:07:58. > :08:01.it has been brought here by an investor along with an Indian
:08:02. > :08:09.partner. Jasper read has been living here for over two years. -- Reid. He
:08:10. > :08:14.thinks this is an exciting time to invest in India as the market is
:08:15. > :08:17.ready for international food. He wants to stay longer and getting
:08:18. > :08:20.permanent residency would definitely help. First thing is there is a
:08:21. > :08:25.psychological benefit as it makes you feel more welcome and part of a
:08:26. > :08:28.more international place. There is an administrative benefit and then
:08:29. > :08:32.there are some domestic benefits including one's partner being able
:08:33. > :08:34.to work. So I think there is an interesting package and that,
:08:35. > :08:42.subject to understanding the fine print. Until now, India had no
:08:43. > :08:49.provision for foreign visitors to obtain long-term residency in India.
:08:50. > :08:54.Visitors or employment visas were either issued, both of which came
:08:55. > :08:59.with much paperwork. To be eligible for the permanent residency status,
:09:00. > :09:03.foreigners would have to invest $1.5 million over 18 months. Or they
:09:04. > :09:11.could invest $3.7 million over three years. But some people think it is
:09:12. > :09:20.too expensive. Maria runs an indoor swimming pool and play zone for
:09:21. > :09:25.kids. She and her husband moved to Delhi from Chicago about one year
:09:26. > :09:30.ago to start this is best. I assume most economies are run on small
:09:31. > :09:34.businesses, 80% are run on small businesses. So a $1.5 million in 18
:09:35. > :09:40.months is not something most people can do, and if you are trying to
:09:41. > :09:45.bring in new ideas from around the world to developing countries, $1.5
:09:46. > :09:49.million is, I don't think, I really easy way to be doing it. The
:09:50. > :09:54.required investment may be higher by some standards, and this may put off
:09:55. > :09:59.some young investors, but India needs job generating investors and
:10:00. > :10:03.the government hopes its latest plan will be enough to lure entrepreneurs
:10:04. > :10:08.who would otherwise head to destinations like Singapore and Hong
:10:09. > :10:13.Kong. Let's take a look at the markets before we go. We are seeing
:10:14. > :10:18.Asian shares, the ones that are open, really fairly flat as you can
:10:19. > :10:21.see. The Nikkei barely edging, the All Ordinaries slightly lower, we
:10:22. > :10:25.are waiting for the Hang Seng to open in little bit and they are
:10:26. > :10:29.taking their cues from Wall Street, which also ended in a similar way
:10:30. > :10:31.under pressure from energy stocks. That's it from Asia Business Report.
:10:32. > :10:39.Thank you for watching. Junior doctors in England
:10:40. > :10:42.are to intensify their strike action in the long-running dispute over
:10:43. > :10:44.pay and working hours. This latest action will involve
:10:45. > :10:51.a full withdrawal of labour over