Business News - Asia

Here is a round-up of some of the latest Business stories of interest from around the major players in Asia.

SINGAPORE: Source: Business Times

SINGAPORE OUTPUT UP

Singapore's factory output probably rose in November from a year earlier when regional manufacturing supply chains were disrupted by floods in Thailand.

But the sector remains weak, with little growth expected on a month-on-month basis, amid continued weakness in Western economies that has crimped demand for Singapore-made electronic component and products. Singapore exports most of what it produces and its trade is three times gross domestic product.

SOUTH KOREA: Source: The Korean Herald

PRESIDENT ASKS BIG FIRMS TO AVOID LAYOFFS

President-elect Park Geun-hye has spoked out to ask firms to avoid redundancies. She also called on  owners to take self-reform measures and cooperate with her economic policy aimed at boosting fairness and transparency in the market and increasing welfare for low-income citizens.

“I will actively support investment aimed at creating future growth engines and jobs. I urge large conglomerates to change your ways as well,” Park said during her meeting with the representatives of large businesses at the Federation of Korean Industries.

KORAIL SAFETY QUESTIONED

Local passengers raised their eyebrows when the state-run railway operator Korail claimed the safety and on-time operation of its trains as global No. 1 in a report submitted for evaluation in June.

At the time, Korail was suffering from public condemnation after a series of frequent breakdowns and delayed schedules of the nation’s KTX bullet trains. Korail explained that it had cited official data from the International Union of Railways, or UIC, and then the agency was designated as one of the best state-owned companies of the year.

JAPAN: Source: Japan Times

HALAL FOODS ON THE RISE IN JAPAN

According to the U.S. Halal Association, the total global Muslim population is estimated at 1.6 billion, or around 25 percent of the world's population, with the $632 billion halal food market accounting for 16 percent of the global food industry.

The number of visitors to Japan from Indonesia, home to the biggest Muslim population in the world, as well as from Malaysia, where about 60 percent of the population is Muslim, jumped between 2003 and 2010, according to the Japan National Tourism Organization. The JNTO says the number of Muslim travelers to Japan is generally on the rise, although official data on Muslims are not available.

Seeing it as a business opportunity, some Japanese nonprofit organizations as well as private firms have started offering services assisting Japanese businesses to obtain halal accreditation.

JAPAN AND BURMA TO BUILD INDUSTRAIL ZONE

Myanmar and Japan agreed to start work next year on a huge industrial zone near Yangon, officials from the two countries said, as the impoverished nation hungrily eyes foreign investment. The 2,400-hectare Thilawa project will include a port and industrial park and be up and running in 2015, according to the Ministry of Economy, Trade and Industry.

Former junta-ruled Myanmar craves investment to spur growth and boost its dilapidated infrastructure, while export-reliant Japan is hunting new opportunities in the resource-rich nation to offset sluggish domestic growth.

MALAYSIA: Source: Business Times

MALAYSIAN AIRLINES BUYS 36 NEW PLANES FOR ITS FLEET

Malaysia Airlines has purchased 36 new ATR 72-600 aircraft worth RM3 billion. Malaysian Airlines (MAS) and French-Italian aircraft manufacturer ATR inked a memorandum of understanding (MoU) yesterday on the purchase of the turboprop planes.

Of the total ordered, Firefly will take on 20 aircraft, while 16 will be introduced into the fleet of its sister company MASwings.

MAS chief executive Ahmad Jauhari Yahya said MAS wants to do more, in terms of turboprop operations, and is looking at expanding Firefly's operations out of Peninsular Malaysia into regional routes such in Indonesia, Thailand and Singapore, as well as increasing the frequency of its domestic routes.

CHINA: Source: China Daily

MILD REFORM URGED IN BEIJING

More than 70 prominent Chinese scholars and lawyers have urged the country's new Communist Party leaders to undertake moderate political reforms including separating the party from government, though they avoid any mention of ending one-party rule.

The petition drafted by Peking University law professor Zhang Qianfan calls on the party to rule according to the constitution, protect freedom of speech, encourage private enterprise and allow for an independent judicial system. It also calls for the people to be able to elect their own representatives without interference from the Communist Party.

WAGES INCREASE AND THE STRONGER YUAN MEANS LESS HIRING

The manufacturing industry's demand for new employees shrunk by more than 20 percent year-on-year in the first three quarters of this year, according to a recent survey released by the Seebon Human Resources Research Institute.

Among industries, shipping showed the greatest hiring demand, as the need for more employees in transportation, warehousing and postal services increased steadily in the first nine months of 2012, the report said. Contributing to that result has been the success of e-commerce and the ever-tenser competition among online shopping malls. Industrial restructuring has also led to the disparities in hiring demand, said analysts at the Seebon Human Resources Research Institute.

The survey also said the reduction in job opportunities has resulted in part from the international market's declining interest in products manufactured in China, and the greater number of robots now performing jobs formerly done by people.

INDIA: Source: Reuters

KINGFISHER STILL GROUNDED

Kingfisher Airlines has failed to present regulators with a clear funding plan under a proposal to get it flying again, the country's aviation minister said on Wednesday.

The airline, owned by liquor tycoon Vijay Mallya and suspended in October over unpaid debts and salaries, submitted a plan on Monday to the Directorate General of Civil Aviation (DGCA) to resume a limited service. According to local media reports, Kingfisher's parent company, UB Group, offered to inject 6.5 billion rupees ($118.3 million) into the carrier - a key condition for getting it airborne again.

#businessnews #asia

Manchester City sponsor look to India expansion

Etihad Airways, the sponsor of Manchester City FC are planning to make an entry into the Indian Air market by taking over either Kingfisher Airlines or Jet Airways.

This has come about since the Indian Government changed a law which limited foreign airlines to a 49% stake in Indian air carriers. Kingfisher have had many troubles of late, and at present are grounded after it has had its licenses suspended.

Buying out Kingfisher therefore may be much riskier than taking over Jet (who already have a code sharing agreement with Etihad) but Kingfisher would be a cheaper deal.

In the News...

FAULTY SEATS GROUND AMERICAN AIRLINES FLIGHTS
American Airlines has cancelled 94 flights as it works to fix passenger seats that could come loose.


The move comes after a flight from Boston to Miami had to make an emergency landing last weekend after a block of three seats disconnected from the floor.

American said the problem affected 48 Boeing 757s, and that it hoped to have them back in service by Saturday.

The faulty seats had recently been refurbished. The Federal Aviation Administration is now continuing to investigate the issue.

ELECTRIC CARS "A POLLUTER"

Electric cars might pollute much more than petrol or diesel-powered cars, according to new research.


The Norwegian University of Science and Technology study found greenhouse gas emissions rose dramatically if coal was used to produce the electricity.

Electric car factories also emitted more toxic waste than conventional car factories, their report in the Journal of Industrial Energy said.


SAMSUNG BOAST RECORD PROFITS

Samsung Electronics has estimated record profits in the three months to September, led by strong sales of its Galaxy smartphones.


The South Korean company said it expects operating profits of 8.1 trillion won ($7.3bn; £4.5bn), nearly double last year's figure.

The estimates beat analyst expectations sending Samsung shares 1.5% higher. However, ongoing legal tussles with Apple have cast a shadow over its future performance.


MP3 RULING IMMINENT


A US court is to consider a case that could determine whether digital media files can be resold.


One-year-old start-up ReDigi is battling music giant EMI over whether digital music can be retraded after it has been legally purchased.

ReDigi says that its software is designed to comply with existing United States copyright laws. But EMI argues a legal principle which allows consumers to resell purchased material goods does not apply.

INDIA AIRLINE GROUNDED

India's Kingfisher airline has grounded its fleet for a further week after talks with workers protesting against months of unpaid wages failed.


On Monday the cash-strapped airline had to suspend flights for three days after some technical staff went on strike. But late on Thursday it said flights would be grounded until 12 October.

Meanwhile, the wife of a Kingfisher employee has killed herself, leaving a note blaming financial stress because her husband's salary had not been paid.


Source: BBC Business News