0:00:00 > 0:00:03into education in England for those over 18.
0:00:03 > 0:00:04Now on BBC News, all the latest business news live from Singapore.
0:00:16 > 0:00:23Raising taxes. It's rarely a popular decision but that's what Singapore
0:00:23 > 0:00:29is expected to do when it announces the 2018 budget later today.
0:00:29 > 0:00:34And Cambodia grapples with how to provide enough affordable housing to
0:00:34 > 0:00:36a fast-growing population.
0:00:43 > 0:00:48It's Monday, everyone. Good morning, Asia. Hello, world. Glad you could
0:00:48 > 0:00:52enjoy enjoin us for another exciting week on Asia Business Report, I'm
0:00:52 > 0:00:54Rico Hizon.
0:00:54 > 0:00:57week on Asia Business Report, I'm Rico Hizon. In Singapore taxes are
0:00:57 > 0:00:58Rico Hizon. In Singapore taxes are the focus when the citystate
0:00:58 > 0:01:02announces its new budget. The government has flagged it will need
0:01:02 > 0:01:06to increase tax revenues as spending on healthcare and infrastructure is
0:01:06 > 0:01:10expected to rapidly rise. One possible idea, attacks on
0:01:10 > 0:01:13e-commerce, which would make Singapore among the first in Asia to
0:01:13 > 0:01:19do so. Earlier I spoke with Amy from Ernst and Young and I asked her if
0:01:19 > 0:01:23we're likely to see tax increases. Really it's what the government has
0:01:23 > 0:01:28been messaging up to today. There's increased need for our social
0:01:28 > 0:01:33spending with an increasing and fast ageing population.What will be
0:01:33 > 0:01:38e-commerce tax structure look like? It's likely it will be in the form
0:01:38 > 0:01:42of a goods and service tax on online transactions, it's with online
0:01:42 > 0:01:47purchases of goods and services.The government is also rethinking its
0:01:47 > 0:01:51current goods and services tax structure, which is currently at 7%,
0:01:51 > 0:01:56is there a need for an e-commerce tax and a GST tax or at the same
0:01:56 > 0:02:01time when the Singapore budget is at a surplus?There's always a balance,
0:02:01 > 0:02:06you have to look at the balance between raising tax revenue in a
0:02:06 > 0:02:10competitive way while not affecting the practices of Singapore to work
0:02:10 > 0:02:15and do business in. -- attractiveness. Looking and a GST
0:02:15 > 0:02:19rise of Singapore at 7%, it's one of the lowest in the world -- looking
0:02:19 > 0:02:24at. Even if we go to 9% or 10%, it's in line with the rates in
0:02:24 > 0:02:31Asia-Pacific.Will this tax binge immediately materialise?We do not
0:02:31 > 0:02:34expect it to immediately kicked in because the government has said it
0:02:34 > 0:02:39has enough money for this term, which is up to 2020. It's really
0:02:39 > 0:02:43planning for the long-term and we expect the government to give us
0:02:43 > 0:02:48advanced notice for the businesses and people to basically make
0:02:48 > 0:02:51adjustments and build in their budget in terms of coping with the
0:02:51 > 0:02:56increase.Aimee, we also saw the United States reducing its corporate
0:02:56 > 0:03:03tax rate from 35 to 21%. -- Amy. Are we likely to see something in this
0:03:03 > 0:03:07kind of form from this budget? Singapore corporate tax rate has
0:03:07 > 0:03:12been one of the lowest in the world at 17%. We are the four runner in
0:03:12 > 0:03:18bringing it down to 17%.Can't you bring it lower?-- four runner.
0:03:18 > 0:03:22Possibly but the scope for bringing it down is very limited so we are
0:03:22 > 0:03:27going to focus on GST and e-commerce transactions. It's one of the most
0:03:27 > 0:03:32competitive rates in the world already.What other features are you
0:03:32 > 0:03:36expecting from this budget?There is still a small possibility of
0:03:36 > 0:03:41additional new tax, possibly in the form of wealth tax, keeping our
0:03:41 > 0:03:45fingers crossed, it's a balance between raising revenue and
0:03:45 > 0:03:48Singapore's competitiveness as a leading financial hub. The other
0:03:48 > 0:03:53areas will be increased help for globalisation and innovation.
0:03:53 > 0:03:57Amy Ang from Ernst & Young. A bit week four cuppa, corporate
0:03:57 > 0:04:02earnings with more than 50 companies on the S&P 500 due to report this
0:04:02 > 0:04:08week -- bigwig for. Walmart and home Depot will be reporting on Tuesday
0:04:08 > 0:04:13-- big week for. HSBC will be reporting annual earnings tomorrow
0:04:13 > 0:04:19and we will see if it can build on last quarter's earnings results --
0:04:19 > 0:04:22home Depot. In Australia Qantas are due to release their earnings
0:04:22 > 0:04:28numbers this week. Earlier I spoke to June from Tribeca investment
0:04:28 > 0:04:32partners in Sydney and I asked her if Qantas would have strong results
0:04:32 > 0:04:37despite stiff competition and rising oil prices.I think the company will
0:04:37 > 0:04:41deliver a good result in that environment given the benign
0:04:41 > 0:04:45environment in ticket pricing and it should announce a buyback, we expect
0:04:45 > 0:04:50a strong performance.And BHP Billiton, will it produce strong
0:04:50 > 0:04:54results because of commodity prices? And we expect a consensus upgrade at
0:04:54 > 0:05:00this result, should be a strong price performance.You have the
0:05:00 > 0:05:03likes of Home Depot and Walmart announcing their results this week
0:05:03 > 0:05:07with the economy expanding in the US, will be retailers have good
0:05:07 > 0:05:12results?They will deliver strong results and give a positive guidance
0:05:12 > 0:05:20into next year.What about the likes of HSBC? They had strong results the
0:05:20 > 0:05:24previous quarter, will it outperform this quarter?I think they should
0:05:24 > 0:05:30deliver a good result given it's the last result for the current CEO and
0:05:30 > 0:05:34looking forward they will need to give advisers on the tax. It's a
0:05:34 > 0:05:39good company to be at the moment. It's been a crazy two weeks in the
0:05:39 > 0:05:44global financial markets, are we likely to see a calmer mood among
0:05:44 > 0:05:49investors this week? Will there be more volatility yet again?We think
0:05:49 > 0:05:54this week should be generally led by the results and we don't expect
0:05:54 > 0:05:58anything that is out of extraordinary to shake at. We do
0:05:58 > 0:06:05have FOMC meeting minutes this week, and potentially if they turn more
0:06:05 > 0:06:08hawkish that could shake the market but based on experience from last
0:06:08 > 0:06:12week, we think the market is on the right page and there shouldn't be
0:06:12 > 0:06:18any surprises.At this point, our investors getting comfortable with
0:06:18 > 0:06:22the idea that growth is sufficient to withstand the expected rate
0:06:22 > 0:06:28hikes?Absolutely. Investors are well aware, growth picking up and
0:06:28 > 0:06:32things are getting better so it's time to get into those cyclical
0:06:32 > 0:06:37sectors.What are the red flags in the market that you would want to
0:06:37 > 0:06:43avoid?Avoid sectors like property, utilities and high-growth sectors.
0:06:43 > 0:06:49They have been outperformed recently and they will underperform.
0:06:49 > 0:06:54Japan is seeing global demand for its products according to trade data
0:06:54 > 0:06:59today, exports jumping more than 12% in January to compare it to a year
0:06:59 > 0:07:07ago. To mark a 14th straight month of games -- compared to. The trade
0:07:07 > 0:07:12balance came to a deficit of almost $9 billion -- gains. Cambodia has
0:07:12 > 0:07:17one of the region's fastest growing economies and its capital, Phnom
0:07:17 > 0:07:22Penh, is going through a building boom. Is though it is a poor city by
0:07:22 > 0:07:27global standards and affordability is a serious issue, so how do you
0:07:27 > 0:07:35house a growing population on a limited income? -- it is, though.
0:07:35 > 0:07:40Phnom Penh is growing. Phnom Penh is in the middle of a
0:07:40 > 0:07:44building boom, cranes in the sky, new apartment blocks all over town,
0:07:44 > 0:07:48but many are simply out of reach for everyday Cambodians even though the
0:07:48 > 0:07:53city is pretty cheap by global standards. Affordability is still a
0:07:53 > 0:07:57major issue here. Developers tend to make most of their money from
0:07:57 > 0:08:01high-end apartments, but where do you put everyone else? Well, maybe
0:08:01 > 0:08:05here on this sandy soccer pitch where more than 2000 homes for lower
0:08:05 > 0:08:12and middle income Cambodians will be built.This is the showroom of the
0:08:12 > 0:08:15project. So could this be Cambodia's answer
0:08:15 > 0:08:20to white picket fences? The pricetag from 70,000 to 75,000
0:08:20 > 0:08:25US dollars. I think for the people who have low and medium incomes,
0:08:25 > 0:08:28they can come and buy in this project.
0:08:28 > 0:08:34By one estimate fewer than 15% of new houses cost under $50,000, which
0:08:34 > 0:08:38is significant in a country where the minimum wage is less than $200 a
0:08:38 > 0:08:43month. Cambodia will need more cheap mass housing like this for its
0:08:43 > 0:08:48growing population. This project must be able to sustain
0:08:48 > 0:08:55itself so we can continue the second project for more Cambodians who need
0:08:55 > 0:08:59a home. Of course delivering cheap homes
0:08:59 > 0:09:05means finding ways to reduce costs, and another local company has a few
0:09:05 > 0:09:06ideas about how to do that.
0:09:15 > 0:09:19These bricks fit together like Lego blocks, which means they require
0:09:19 > 0:09:22less mortar and labour, and that means lower costs.
0:09:49 > 0:09:54It's a small scale factory for now, but there are plans to scale up to
0:09:54 > 0:09:59make enough bricks for 100 houses every day. The demand should be
0:09:59 > 0:10:02there, the government estimates the country will need 1.1 million new
0:10:02 > 0:10:09homes by 2030. Timothy McDonnell, BBC News, Phnom Penh.
0:10:09 > 0:10:13Before we go, here's a quick look at the Asian stock markets and
0:10:13 > 0:10:17currently in positive territory after last week's gains in US
0:10:17 > 0:10:24markets. The Nikkei 225 up by 248 and the All Ordinaries index gaining
0:10:24 > 0:10:3027. The Hong Kong and Chinese stock markets are closed today due to the
0:10:30 > 0:10:32Lunar New Year holidays. Thank you