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