19/04/2017 Asia Business Report

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

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