19/04/2017 Asia Business Report


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liquid was sprayed during an argument.


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


America first. The US President unveils his plans to change the


rules for the controversial hate one big fees. American workers have long


called for reforms to end these Visa abuses and for the first time their


calls are being entered for the first time. And a snap election for


the UK. How much nervousness does is add to the market?


Good morning, Asia and hello world. This is Wednesday. Thank you for


joining us. I am Rico Hizon. By America, higher America, that is the


aim of US President Donald Trump's latest executive order. As we


reported just hours ago he signed the order to review a temporary Visa


programme used to place foreign workers in highly skilled US jobs.


Mr John says he wants to stop abuse of the immigration system. Right


now, widespread abuse in our immigration system is allowing


American workers of all backgrounds to be replaced by workers brought in


from other countries to feel the same job for some time less pay.


This.. American workers have long called for reforms to end these Visa


abuses and today their calls are being entered for the first time.


That includes taking the first steps to set in motion a long overdue


reform of H one B visas. The order falls way short of Mr John's


campaign pledge to end the controversial programme, technology


companies say the visas help them feel vital skill shortages. Data


from the US citizenship and immigration services reveal that


more H one B visa holders come from India than any other country. As for


the White House, well, they say eight out of ten workers on the Visa


are paid less than the median wage for their industry. Earlier we spoke


to our North American business correspondent about what the order


will actually achieve. What Donald Trump is doing is directing the


administration, the people who work for him, to reassess how this


programme is working, to enforce it where it is not being enforced. The


rules that exist. And to see whether or not it is doing what it was


designed to do. So you are not talking about ripping up the Visa


programme as some fear based on remarks he had made, I think what we


are seeing is sort of the pragmatism, the businessman who


regularly meets with other CEOs, other business leaders and he


remembers the value of this programme. This is not targeting, it


does not sound like it at any rate, highly skilled workers, but those


who perhaps may be seen to be taking away from American jobs. This idea


of higher American, by American, it is the higher American portion that


we are seeing being put into practice here. He has basically


flagged this policy in throughout his presidential campaign that the


executive order seems to not go that very far. What will this mean for


technology companies? It does not go that far and at this point it is


really just a sort of stuff being ordered to collect recommendations


about what they would like to see. The reports need to be submitted and


the commerce Secretary will review them. There will be more


consultation and at this point the changes are yet to be fully


determined. I think technology companies are not worried yet. What


we are seeing, however, is that there are polls coming out here in


the United States showing that perhaps Donald Trump is losing


support amongst some of his core supporters and this is one way,


certainly, to try and get back to that populist message that proved so


successful for him on the campaign trail, which was to try and help


those in America who feel that they are losing their jobs to other


countries in the world. As we mentioned, India has been the single


biggest source of workers migrating to America to work in tech


companies. The order could lead to changes in how these visas are


worded and would likely affect the 150 billion dollar industry in


India. Any changes to the Visa process in the US will mean bad news


for the 150 billion dollar IT service industry in India. Every


year 65,000 visas are issued in a lottery system and most of them are


taken by Indian consultancy firms. The order in itself will not change


the Visa process but it asks for suggestions from federal agencies.


Analysts say that the Trump administration wants to get rid of


the lottery system. The Congress is also debating a piece of legislation


which once companies to more than double the minimum wage paid to


foreign workers who are working on a H1B Visa. Last year, it India's IT


services industry generated $65 billion of revenues from the US


market. So if they have to pay foreign workers more, or hire people


from the US market, then that will hit their revenues and profitability


in the long-term. The US is not the only large democracy to announce an


overhaul to its immigration policy. The Australian government has


announced it will scrap its 457 skilled guest worker Visa although


it has a replacement in mind. As our correspondent tells us how many


people that is likely to affect. At the moment there are some 95,000


workers who have these coveted 457 visas for highly skilled workers.


They are meant to apply to jobs where you have at least a university


standard education but they range massively, everything from actors


and airline pilots to firefighters, police officers, even zookeepers.


Now all of those jobs are mentioned are on a list that the government


has set out saying that in the future none of those professions


would be considered for the replacement visas. However, similar


situation to what you heard there in America, the majority of 457 visa


holders come from India, about one quarter, followed by the UK and


China. Most of the jobs and most of the visas are given to the IT


sectors and the hospitality industry. Both of those business


sectors bringing forward complaints at the moment saying they are


uncertain about what this will meet their industry. Why is the


government changing the Visa well, I guess 457s are no longer vote


winners, a bit like in America, they have become unpopular domestic


league because of this idea that they may be taking jobs from


domestic workers. The Prime Minister, Malcolm Turnbull,


yesterday said they should not be a passport for foreign workers to take


Australian jobs. But Australian jobs should be for Australia and workers


and only then filled by foreign workers. The focus now will be on


what comes next. What exactly this replacement system will mean and in


the budget in May, what businesses are looking at is whether there will


be an increased tax for businesses to pay to help find the training of


Australian workers so that in the future there are are not these big


skill gaps in Australia that mean they have to import workers to come


here. In other business news, a well-known Indian business tycoon


has been granted bail after his arrest in the United Kingdom. He


faces extradition to India over accusations of fraud. The flamboyant


businessman, who are denied any wrongdoing, made his fortune selling


beer under the iconic Kingfisher brand before branching out into F1


racing, IPL and aviation. Prime Minister may have called for a snap


election in June. A stronger mandate for a party will allow them to


negotiate a better Brexit deal. The British Pound strengthened on the


news and I asked whether investors should expect more volatility? That


strengthening pound had an immediate impact on sharemarket trading with


the sharemarket dropping by 2.5% in trading overnight. It is a bit of a


surprising move to see a currency strengthen on a weak economic


development that it reflects on the market. The market is concerned


about the outlook for the pound and is very short at any news and it's


the social position scrambling for cover. Although the pound has


strengthened I would see that reverse over the next one or two


days. That was our correspondent in Sydney. As a look now at how market


action is shaping up in early Asian trading. The two to five down by 45


points. The All Ordinaries giving back 24 points. Most of them in


negative territory. Asia, the investor sentiment has dropped on US


markets after the Prime Minister of the UK called for a snap election.


On Wall Street, let's have a look at a quick numbers there. Also in the


red. US stocks are retreating admit disappointing early results after


disappointing results from Goldman Sachs. China's growth targets for


2017 and 2018. Thank you so much investing your time with us. Sport


Today is up next. More now on the story that's been


dominating the headlines -


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