:00:00. > :00:15.Now on BBC News all the latest business news live from Singapore.
:00:16. > :00:23.The ousted boss fights back. More on the e-mail which lifts the lid on
:00:24. > :00:28.India's Tata group. The Indonesian finance minister vows to hunt down
:00:29. > :00:33.tax avoiders, speaking exclusively with the BBC. I am going to chase
:00:34. > :00:37.you wherever you are going to go and hide your assets. I am going to also
:00:38. > :00:43.ask international community to support this effort.
:00:44. > :00:50.Welcome to this edition of Asia Business Report.
:00:51. > :00:58.The ousted chairman of India's Tata group lashed out at the way his
:00:59. > :01:05.sudden departure was handled. In a no holds barred e-mail to the board
:01:06. > :01:09.seen by the BBC, he says he became a lame duck chairman and alleges
:01:10. > :01:15.constant interference including being asked to sign off on deals he
:01:16. > :01:18.knew little about. He warned the company risks huge write-downs
:01:19. > :01:25.across the business. Our correspondent in Mumbai has more. It
:01:26. > :01:28.is turning out to be a dramatic turn of events for Tata. Cyrus Mistry has
:01:29. > :01:37.made shocking allegations in a letter written to them, and in it he
:01:38. > :01:42.says he was never given a free hand to operate as chairman and he says
:01:43. > :01:46.he was a lame duck chairman. He alleges that he was the previous
:01:47. > :01:50.chairman of the group and also interim in charge, he says he
:01:51. > :01:55.interfered with major decisions and it was on Mr Tata's insistence that
:01:56. > :01:59.Cyrus Mistry went ahead with a tie-up with AirAsia to form AirAsia
:02:00. > :02:03.India, domestic airline company here, alleging there were ethical
:02:04. > :02:09.concerns about some of their dealings involving that company. The
:02:10. > :02:13.letter is also an indicator of just how much trouble Tata's businesses
:02:14. > :02:16.are in. He says apart from Jaguar Land Rover and Tetley tea, all of
:02:17. > :02:21.the other companies are struggling. He says it he inherited a host of
:02:22. > :02:29.debtridden companies and he strongly defended his actions to try and cut
:02:30. > :02:33.loss-making ventures. As we know, in May, Tata initiated the UK steel
:02:34. > :02:38.business and want a joint-venture partner. It has sold off many assets
:02:39. > :02:43.in its hotels company. And so he says he cannot believe he was sacked
:02:44. > :02:48.for nonperformance. Now, the Tata group says so far it has no comment
:02:49. > :02:54.on these allegations. To put the story in context, Tata is a company
:02:55. > :02:59.that in India is seen as a respectable firm. Many people here
:03:00. > :03:02.are proud of the brand, seen as a socially responsible company, so for
:03:03. > :03:07.these allegations to come out in public is of course a major cause of
:03:08. > :03:13.concern for anyone connected with Tata, whether it is employees or
:03:14. > :03:20.investors. Many would say it is also a sad development.
:03:21. > :03:28.The national stock exchange has confirmed with the BBC that it has
:03:29. > :03:32.soared clarification from Tata about allegations made from Cyrus Mistry
:03:33. > :03:39.-- sought. Samsung's bottom line was burned by the Galaxy Note 7 scandal.
:03:40. > :03:44.The world is that large a smartphone maker has written a $5 billion in
:03:45. > :03:50.legal expenses and lost sales. Operating profit has fallen by 30%
:03:51. > :03:55.for the period from July - September, that is compared to the
:03:56. > :03:59.same quarter last year. The company says is confident things will pick
:04:00. > :04:04.up in the next period. Earlier, Jake Saunders from ABI research told me
:04:05. > :04:09.why Samsung's rivals haven't been able to take advantage of Galaxy
:04:10. > :04:13.Note 7 issues. In this interconnected world, you get a
:04:14. > :04:17.phone from Apple, not all components are made by Apple, and one of the
:04:18. > :04:22.ironies is one of the suppliers of the screen is Samsung. So, there are
:04:23. > :04:27.compliant and contract orders but it is difficult to find alternative
:04:28. > :04:32.suppliers, for example, Sharp, they could step in, they have contract
:04:33. > :04:35.volumes, this is the time for production because fourth quarter is
:04:36. > :04:40.when you sell the big chunk of phones. With this tremendous loss
:04:41. > :04:48.for Samsung Electronics and the reputational damage, could we see a
:04:49. > :04:52.Samsung Electronics being split two ways, which has been advocated by
:04:53. > :04:58.some shareholder activists? There is that agitation. They want to get
:04:59. > :05:04.past the Note 7, because next year in February time, we should see the
:05:05. > :05:08.announcements for the S8 smartphone, which is their big flagship phone,
:05:09. > :05:14.that is coming out, they need to get the story behind it, but there are
:05:15. > :05:20.around 800,000 Note 7s out there. Should they come out with the S8 or
:05:21. > :05:24.a brand-new phone? The S8 is the smartphone, the Note 7 is the
:05:25. > :05:30.phablet. There is debate if it will come out. I think they want to keep
:05:31. > :05:38.the sub rant in place. -- brand. Indonesia is trying to reform the
:05:39. > :05:43.tax system as part of that tax amnesty programme. In any clues
:05:44. > :05:46.interview Indonesia's finance minister told our correspondent the
:05:47. > :05:50.government will go after tax avoiders inside out outside of the
:05:51. > :05:57.country once the amnesty programme ends. Indonesia has a low tax ratio.
:05:58. > :06:01.Even if you compare with the same middle income country or even low
:06:02. > :06:06.income country, that is not acceptable. It is incredibly low,
:06:07. > :06:10.isn't it? It is only 10.9%. You've received a lot of praise for the tax
:06:11. > :06:15.amnesty programme Indonesia is carrying out. Citibank saying it is
:06:16. > :06:18.one of the best in the world, but it has been very controversial in
:06:19. > :06:24.Indonesia with demonstrations on the streets, protesting on social media
:06:25. > :06:28.and challenges in the constitutional court for people who say it is an
:06:29. > :06:34.unfair system and is effectively pardoning people who have been
:06:35. > :06:37.dodging paying tax for years. How do you ethically justified the
:06:38. > :06:41.programme? This is nine months which we will declare it is your
:06:42. > :06:47.opportunity and it is up to you. After that, the states have the
:06:48. > :06:52.power -- the state has the power to in force to hundred % fine or I am
:06:53. > :06:55.going to chase you wherever you go and hide your asset. I am also going
:06:56. > :07:01.to ask the international community to support this effort, because I
:07:02. > :07:07.don't want to hear that taxpayers can easily evade and hide their
:07:08. > :07:13.income and their assets safely in a tax haven without any consequence. I
:07:14. > :07:17.think it is not fair for many countries in the world. And also it
:07:18. > :07:25.is not fair for many taxpayers of different countries. They also
:07:26. > :07:28.contribute a lot of development support to developing countries.
:07:29. > :07:35.Taxpayers want to see this work will have a much more just... In terms of
:07:36. > :07:38.tax enforcement. The Indonesian tax minister speaking with our
:07:39. > :07:42.correspondent. Now to the US election and China has featured
:07:43. > :07:46.heavily in it with the Republican candidate Donald Trump accusing it
:07:47. > :07:50.of stealing US jobs and threatening to impose tariffs. The democratic
:07:51. > :07:54.nominee Hillary Clinton has promised tougher enforcement of existing
:07:55. > :07:59.trade laws, so with less than two weeks to go until polling day, what
:08:00. > :08:05.effect has China's rise had the US job market? Year is McDonald. On one
:08:06. > :08:11.estimate the trade deficit with China is responsible for displacing
:08:12. > :08:17.3.2 million jobs in the US -- here is Mr McDonald. Now, China has been
:08:18. > :08:21.accused of manipulating its currency of subsidies, labour rights and
:08:22. > :08:24.dumping massive amounts of products like aluminium onto the global
:08:25. > :08:31.market. Something like that has had an impact here on the industry. We
:08:32. > :08:35.lost 847 union jobs, well paying jobs, good benefits, a lot of people
:08:36. > :08:42.are still laid off because they couldn't find jobs and some of the
:08:43. > :08:46.people have moved. I think the dumping of materials, from China,
:08:47. > :08:51.whether it is aluminium, steel, tyres, they are flooding our
:08:52. > :08:57.markets. What happened with aluminium I believe is a direct
:08:58. > :09:01.result from the dumping of materials here at this facility. We have a lot
:09:02. > :09:09.of people that are unemployed. There are no jobs. US manufacturing is way
:09:10. > :09:13.down. China is still the world's factory floor but its economy is
:09:14. > :09:18.maturing. Wages are rising, it is no longer as cheap as it once was. In
:09:19. > :09:24.fact, even some Chinese companies now see the advantage of setting up
:09:25. > :09:27.shop here in the US. One of them is China's largest automotive glass
:09:28. > :09:33.manufacturer that now has a factory in Ohio that employs more than 2000
:09:34. > :09:38.people. Natural gas in China costs about four times what it does here
:09:39. > :09:42.per unit. And electricity is about double. Our customers love the fact
:09:43. > :09:47.that we are right down the road, not across the ocean, which eliminates
:09:48. > :09:50.the cost as well, it eliminates ? and shipping costs. Labour is
:09:51. > :09:57.significantly different. Multiples different. We have defined ways to
:09:58. > :10:02.deal with that. You have to look at our factory, versus the setup of the
:10:03. > :10:06.factories in China, and you would find there is more automation in
:10:07. > :10:08.this factory. This is real investment and real manufacturing
:10:09. > :10:13.capacity capability and technology with real jobs for real people.
:10:14. > :10:18.Between 20- 25% of the US market should be produced title this
:10:19. > :10:22.facility. China's impact on the labour market has been a hot topic
:10:23. > :10:25.through the election and it is clear that the next president will have
:10:26. > :10:29.their hands full not just managing the world's largest economy but also
:10:30. > :10:33.its relationship with the world's second largest.
:10:34. > :10:35.Timothy McDonald. Thank you so much for investing your time with us. I'm
:10:36. > :10:40.Rico Hizon. Sport Today is up next. President Rodrigo Duterte
:10:41. > :10:45.of the Philippines has suggested he wants all US forces
:10:46. > :10:49.to leave his country Doubt over Formula's One's
:10:50. > :10:52.future in Malaysia.