Simple math: Employees monitor currency rates at a foreign-exchange office in Tokyo on Aug. 4. Strained by the rising yen, businesses are relocating to overseas markets out of necessity. AP PHOTOThe problem is that these offers are coming from Japan's neighbors, particularly China. Delegations from across Asia have spent recent months hosting seminars in Tokyo's upscale hotels and conference rooms, hoping to pluck away Japanese business by offering incentives that companies find increasingly difficult to resist.Since June, recruiters from at least seven Chinese provinces have hosted events in Japan. Vietnam came with a 20-member mission. Myanmar sent more than 300 representatives. One official from Zheziang Province in China described it as a "rare opportunity" to lure Japanese businesses that are strained by the rising yen, high corporate taxes and a shrinking domestic market.The prospect that companies big and small will relocate amplifies concerns about the world's third-largest economy as it tries to break a two-decade run of stagnation and rebuild its disaster-hit northeastern coastline.Politicians and business leaders fear a scenario in which major manufacturers, though maintaining a baseline presence in Japan, will build factories overseas and depend increasingly on local suppliers in their new countries; then, the smaller Japanese companies that once depended on those manufacturers will cut costs to compete or move overseas themselves.In his first major speech, Prime Minister Yoshihiko Noda said last month that the soaring yen and the rise of emerging economies had created "an unprecedented industrial hollowing-out crisis" that could lead to lost jobs and weakened Japanese competitiveness."Japan is on the verge of suffering a major loss of national credibility due to the hollowing-out of its industries," Noda said.Many companies say they have been approached with offers to begin operations overseas. The invitations, according to government data, come mainly from China and several Southeast Asian countries — especially Thailand and Singapore.Firms have also received offers from provinces in South Korea, even though Seoul tried this summer to curb the recruitment of Japanese companies, thinking it inconsiderate in the aftermath of the March 11 disaster.Attempts to poach Japanese companies is hardly new. Neither is Japanese interest in Asia's developing markets, with many export-reliant giants — Toyota, Panasonic and Sony — building regional networks. What was once a business opportunity, though, has turned into a business necessity; firms now relocate to China and Southeast Asia not merely to reach new markets but to offset the pain in Japan.That pain comes largely from the yen, which has soared in value this year amid concern about the U.S. and European economies. Investors see the yen as a safe bet, and they have managed in a short time to transform its worth.In April, the yen was valued at about 85 against the dollar. On Sept. 19, it was 75.94 against the dollar, a post-World War II high, and Japanese policymakers have been helpless to stem the rise. The strong yen makes Japanese exports more expensive overseas, and it pinches foreign-made profits when they are repatriated.In a recent government poll of major manufacturers, one-third said they would face "serious profit decline" if the exchange rate held steady for the next six months.The poll, conducted by the industry ministry, suggested Japanese companies will flee — quickly — if the Noda administration can't soon provide help. Of the 61 manufacturers surveyed, 28 said they would transfer production plants and research centers overseas if the yen held its value. One in five smaller businesses reported that they were already seeing a decline in demand because trading partners had moved overseas."The worst case is, a greater percentage of business will be done overseas," said Koichiro Otake, deputy director of the macroeconomic affairs division at the Ministry of Economy, Trade and Industry. "And that will lead to big, big problems for small and medium-size companies. They have two options. Either they follow suit and move overseas, or they go out of business."Many economists in Tokyo say the hollowing-out process is already under way — and gaining momentum. They say a growing number of companies are finalizing plans not just to outsource their production, but to open new factories in foreign countries.This summer, some of the biggest Japanese companies signaled their intention to bulk up beyond Japan, with Panasonic announcing a new procurement center in Singapore and telecommunications giant Softbank launching a data center in South Korea, citing the country's lower electricity costs.But the woes go beyond the yen. Japan's corporate tax far exceeds levels in China and South Korea. So do its energy costs.2011年10月6日木曜日
Japan's rivals look to lure away yen-harried firms
As the economy staggers under the weight of the strong yen, businesses in Japan are receiving much-needed offers of help, with a chance to reduce rent, pay fewer taxes and cut utility costs.Simple math: Employees monitor currency rates at a foreign-exchange office in Tokyo on Aug. 4. Strained by the rising yen, businesses are relocating to overseas markets out of necessity. AP PHOTOThe problem is that these offers are coming from Japan's neighbors, particularly China. Delegations from across Asia have spent recent months hosting seminars in Tokyo's upscale hotels and conference rooms, hoping to pluck away Japanese business by offering incentives that companies find increasingly difficult to resist.Since June, recruiters from at least seven Chinese provinces have hosted events in Japan. Vietnam came with a 20-member mission. Myanmar sent more than 300 representatives. One official from Zheziang Province in China described it as a "rare opportunity" to lure Japanese businesses that are strained by the rising yen, high corporate taxes and a shrinking domestic market.The prospect that companies big and small will relocate amplifies concerns about the world's third-largest economy as it tries to break a two-decade run of stagnation and rebuild its disaster-hit northeastern coastline.Politicians and business leaders fear a scenario in which major manufacturers, though maintaining a baseline presence in Japan, will build factories overseas and depend increasingly on local suppliers in their new countries; then, the smaller Japanese companies that once depended on those manufacturers will cut costs to compete or move overseas themselves.In his first major speech, Prime Minister Yoshihiko Noda said last month that the soaring yen and the rise of emerging economies had created "an unprecedented industrial hollowing-out crisis" that could lead to lost jobs and weakened Japanese competitiveness."Japan is on the verge of suffering a major loss of national credibility due to the hollowing-out of its industries," Noda said.Many companies say they have been approached with offers to begin operations overseas. The invitations, according to government data, come mainly from China and several Southeast Asian countries — especially Thailand and Singapore.Firms have also received offers from provinces in South Korea, even though Seoul tried this summer to curb the recruitment of Japanese companies, thinking it inconsiderate in the aftermath of the March 11 disaster.Attempts to poach Japanese companies is hardly new. Neither is Japanese interest in Asia's developing markets, with many export-reliant giants — Toyota, Panasonic and Sony — building regional networks. What was once a business opportunity, though, has turned into a business necessity; firms now relocate to China and Southeast Asia not merely to reach new markets but to offset the pain in Japan.That pain comes largely from the yen, which has soared in value this year amid concern about the U.S. and European economies. Investors see the yen as a safe bet, and they have managed in a short time to transform its worth.In April, the yen was valued at about 85 against the dollar. On Sept. 19, it was 75.94 against the dollar, a post-World War II high, and Japanese policymakers have been helpless to stem the rise. The strong yen makes Japanese exports more expensive overseas, and it pinches foreign-made profits when they are repatriated.In a recent government poll of major manufacturers, one-third said they would face "serious profit decline" if the exchange rate held steady for the next six months.The poll, conducted by the industry ministry, suggested Japanese companies will flee — quickly — if the Noda administration can't soon provide help. Of the 61 manufacturers surveyed, 28 said they would transfer production plants and research centers overseas if the yen held its value. One in five smaller businesses reported that they were already seeing a decline in demand because trading partners had moved overseas."The worst case is, a greater percentage of business will be done overseas," said Koichiro Otake, deputy director of the macroeconomic affairs division at the Ministry of Economy, Trade and Industry. "And that will lead to big, big problems for small and medium-size companies. They have two options. Either they follow suit and move overseas, or they go out of business."Many economists in Tokyo say the hollowing-out process is already under way — and gaining momentum. They say a growing number of companies are finalizing plans not just to outsource their production, but to open new factories in foreign countries.This summer, some of the biggest Japanese companies signaled their intention to bulk up beyond Japan, with Panasonic announcing a new procurement center in Singapore and telecommunications giant Softbank launching a data center in South Korea, citing the country's lower electricity costs.But the woes go beyond the yen. Japan's corporate tax far exceeds levels in China and South Korea. So do its energy costs.
Simple math: Employees monitor currency rates at a foreign-exchange office in Tokyo on Aug. 4. Strained by the rising yen, businesses are relocating to overseas markets out of necessity. AP PHOTOThe problem is that these offers are coming from Japan's neighbors, particularly China. Delegations from across Asia have spent recent months hosting seminars in Tokyo's upscale hotels and conference rooms, hoping to pluck away Japanese business by offering incentives that companies find increasingly difficult to resist.Since June, recruiters from at least seven Chinese provinces have hosted events in Japan. Vietnam came with a 20-member mission. Myanmar sent more than 300 representatives. One official from Zheziang Province in China described it as a "rare opportunity" to lure Japanese businesses that are strained by the rising yen, high corporate taxes and a shrinking domestic market.The prospect that companies big and small will relocate amplifies concerns about the world's third-largest economy as it tries to break a two-decade run of stagnation and rebuild its disaster-hit northeastern coastline.Politicians and business leaders fear a scenario in which major manufacturers, though maintaining a baseline presence in Japan, will build factories overseas and depend increasingly on local suppliers in their new countries; then, the smaller Japanese companies that once depended on those manufacturers will cut costs to compete or move overseas themselves.In his first major speech, Prime Minister Yoshihiko Noda said last month that the soaring yen and the rise of emerging economies had created "an unprecedented industrial hollowing-out crisis" that could lead to lost jobs and weakened Japanese competitiveness."Japan is on the verge of suffering a major loss of national credibility due to the hollowing-out of its industries," Noda said.Many companies say they have been approached with offers to begin operations overseas. The invitations, according to government data, come mainly from China and several Southeast Asian countries — especially Thailand and Singapore.Firms have also received offers from provinces in South Korea, even though Seoul tried this summer to curb the recruitment of Japanese companies, thinking it inconsiderate in the aftermath of the March 11 disaster.Attempts to poach Japanese companies is hardly new. Neither is Japanese interest in Asia's developing markets, with many export-reliant giants — Toyota, Panasonic and Sony — building regional networks. What was once a business opportunity, though, has turned into a business necessity; firms now relocate to China and Southeast Asia not merely to reach new markets but to offset the pain in Japan.That pain comes largely from the yen, which has soared in value this year amid concern about the U.S. and European economies. Investors see the yen as a safe bet, and they have managed in a short time to transform its worth.In April, the yen was valued at about 85 against the dollar. On Sept. 19, it was 75.94 against the dollar, a post-World War II high, and Japanese policymakers have been helpless to stem the rise. The strong yen makes Japanese exports more expensive overseas, and it pinches foreign-made profits when they are repatriated.In a recent government poll of major manufacturers, one-third said they would face "serious profit decline" if the exchange rate held steady for the next six months.The poll, conducted by the industry ministry, suggested Japanese companies will flee — quickly — if the Noda administration can't soon provide help. Of the 61 manufacturers surveyed, 28 said they would transfer production plants and research centers overseas if the yen held its value. One in five smaller businesses reported that they were already seeing a decline in demand because trading partners had moved overseas."The worst case is, a greater percentage of business will be done overseas," said Koichiro Otake, deputy director of the macroeconomic affairs division at the Ministry of Economy, Trade and Industry. "And that will lead to big, big problems for small and medium-size companies. They have two options. Either they follow suit and move overseas, or they go out of business."Many economists in Tokyo say the hollowing-out process is already under way — and gaining momentum. They say a growing number of companies are finalizing plans not just to outsource their production, but to open new factories in foreign countries.This summer, some of the biggest Japanese companies signaled their intention to bulk up beyond Japan, with Panasonic announcing a new procurement center in Singapore and telecommunications giant Softbank launching a data center in South Korea, citing the country's lower electricity costs.But the woes go beyond the yen. Japan's corporate tax far exceeds levels in China and South Korea. So do its energy costs.
Japan eyes private firms help on cyber attacks: report (Reuters)
TOKYO (Reuters) – Japan plans to work more closely with private companies by sharing information on cyber attacks after defense contractor Mitsubishi Heavy Industries was hacked, Nikkei business daily reported Sunday.
The government also aims to ratify an international treaty on online crimes, the Nikkei said without citing a source.
The United States has recently pressured Japan to take more action against cyber attacks after Mitsubishi Heavy, which works closely with Boeing, said in September network information such as IP addresses may have been leaked.
Tokyo is considering asking private companies including utilities, railway operators, defense contractors, automakers and electronics to sign an agreement with public bodies to share information on cyber attacks, the Nikkei said.
Once the agreement is in place, the government and the public bodies would then widely share information on such attacks without identifying which firms were targeted, the Nikkei said.
But Tokyo will not establish a new law requiring firms to report online breaches to the government as this would be too difficult, the Nikkei reported.
The government also plans to ratify the Convention on Cybercrime, a treaty dealing with network security breaches and other online crimes by establishing an international network to provide help to investigators globally, the Nikkei said.
Japan, which in 2001 signed the treaty initiated by the Council of Europe, is among the nearly 50 countries that have signed or ratified the treaty, but it has yet to bring this into force.
The government will hold a meeting Friday to boost information security, the Nikkei reported.
Mitsubishi Heavy has said it so far had not confirmed any leaks on its products or technologies. An outside contractor is now checking whether any sensitive data had been breached.
Rivals IHI Corp and Kawasaki Heavy Industries have also said they have received suspicious e-mails. It is unclear who was responsible for the attacks.
(Reporting by Yoko Kubota; Editing by Sugita Katyal)
2011年9月23日金曜日
U.S. government concerned at hacking of Japan arms firms (Reuters)
TOKYO (Reuters) – The United States on Wednesday expressed concern about recent cyber attacks on defense contractors in Japan, which build U.S.-designed missiles, warships and military aircraft, calling for the attacks to be taken seriously.
Experts speculated that the cyber assaults announced this week, the first on Japan's defense industry, may have included the Stuxnet computer virus which has been described as a guided cyber missile which targets industrial control systems.
"Cyber security must be a public-sector priority," U.S. embassy spokeswoman Karen Kelley said.
One industry source said Washington has been pressuring Japan to step up security against cyber assaults.
The attacks on Japan's top defense contractor Mitsubishi Heavy Industries, which builds F-15 fighter jets, Patriot missiles and nuclear reactor parts, and on other contractors, may have come from a nation state, some experts said.
Mitsubishi Heavy is also involved in the development of a ship-launched surface-to-air missile designed for the U.S. ballistic missile shield and is therefore privy to highly-sensitive weapons technology.
Similar attacks earlier this year, which included one on the U.S. defense industry, were said to have originated in China. Chinese authorities denied having anything to do with those or the latest ones reported in Japan.
Japan's defense industry, supplied by a slew of small and medium-size firms with key technologies, is seen as particularly vulnerable to cyber attacks.
"Many of these small firms could have been hacked in the past, without anyone noticing," Kobe University Professor Masakatsu Morii said.
Computers at Mitsubishi Heavy, Japan's biggest weapons maker, were subject to an online assault in August. The company,
which supplies over 20 percent of Japan's defense equipment, said that some network information, such as IP addresses, may have leaked.
An outside contractor is now checking to see if any sensitive data had been breached.
"I believe this is probably the first example of a Stuxnet attack in Japan," said Yoshiyasu Takefuji, a cyber-security expert at Keio University.
Mitsubishi Heavy said that it has so far found eight viruses, none of which were Stuxnet.
The Stuxnet computer worm, which some suspect was created by the United States and Israel, targets industrial control systems sold by Siemens and used widely in infrastructure including nuclear power generators, chemical factories, water distribution systems and pharmaceutical plants.
Mitsubishi Heavy delayed reporting the breach to the defense ministry, which may have been a violation of its military supply contracts.
A second Japanese military contractor, IHI Corp, which builds engine parts for fighter planes, said its employees had been subject to a growing number of suspicious e-mails which it had informed the police about.
Kawasaki Heavy Industries, a maker of airplanes, helicopters and rocket systems, has also been receiving virus-tainted e-mails, the company confirmed on Tuesday.
(Reporting by Tim Kelly, James Topham, Isabelle Reynolds and Mayumi Negishi; Editing by Michael Watson and Jonathan Thatcher)
2011年9月15日木曜日
341 firms went bust due to disasters
A total of 341 firms have gone under due to the effects of the March earthquake and tsunami, according to credit research agency Teikoku Databank.As of Sunday, the six-month anniversary of the disaster, debts left behind from the failed businesses totaled about ¥612.3 billion and the businesses had a combined 6,376 employees, the agency said Monday.The number of bankruptcies with debts of ¥10 million or more represents a rate about 2.8 times faster than the 123 failures in the six months following the Great Hanshin Earthquake in 1995.A Teikoku Databank official said the disaster-related failures have included many apparel stores and restaurants, where customers were reluctant to spend money.By region, 62 failures took place in Tohoku region, of which 46 were reported in Iwate, Miyagi and Fukushima, the three prefectures hardest hit by the twin disasters.In the Kanto region, 128 failures were reported, of which 64 happened in Tokyo, the agency said.Twenty-eight businesses, or 8.2 percent of the total, were directly hit by the disaster, such as damage to plants by the tsunami.
2011年9月14日水曜日
Big Japan Firms More Upbeat Despite Yen - Wall Street Journal
TOKYO—Big Japanese companies turned upbeat on business conditions in the third quarter, a government survey showed, with the nation's recovery from the March 11 disasters boosting sentiment despite the strong yen and threat of a global economic slowdown.
An index measuring the mood of big companies in a joint survey by the Finance Ministry and Cabinet Office improved to plus 6.6 in the July-September period, from minus 22.0 in the previous quarter.
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The result was better than the plus 4.4 that companies had forecast for the quarter in the previous April-June survey. The survey, released Monday, defines big companies as having ¥1 billion ($13 million) or more in capital.
"The post-quake economic recovery seems stronger than expected," in part as companies succeeded in quickly restoring disrupted supply chains, said Mizuho Research and Consulting senior economist Norio Miyagawa.
The survey is seen as an early indicator of how the Bank of Japan's quarterly tankan survey of business sentiment, due next month, may turn out.
But economists said business optimism may yet be blunted by the soaring yen as it makes Japanese products less competitive overseas and eats into earnings repatriated to Japan. Slowing growth in the U.S. and other key overseas markets, as well as financial market turbulence stemming from concerns over European sovereign debt, are also complicating the outlook.
In a sign of increased cautiousness, big companies said they expect the index to stand at plus 8.1 in October-December, down from a previously forecast plus 11.3, before falling back to plus 6.0 in the January-March quarter.
The index measures the percentage of companies saying business conditions are better than in the previous period, minus the percentage of firms saying they are worse. Monday's survey polled companies on their assessment of conditions as of Aug. 15.
The dollar dropped to a post-World War II record low at ¥75.94 on Aug. 19.
Meanwhile, small and medium-sized companies, which account for the bulk of the Japanese economy, were still pessimistic in the July-September period, but less than before, the survey showed.
The index for such companies was still solidly in negative territory at minus 22.2 in July-September, compared with minus 41.1 in the previous quarter. The companies expect the index to come in at minus 11.5 in October-December, and minus 10.6 in January-March.
Other data released Monday underscored the continued fragility of Japan's economic recovery. The tertiary industrial activity index was down 0.1% on month in July, a report from the Ministry of Economy, Trade and Industry showed.
Write to Andrew Monahan at andrew.monahan@dowjones.net
2011年9月13日火曜日
Big Japan Firms More Upbeat Despite Yen - Wall Street Journal
TOKYO—Big Japanese firms turned upbeat on business conditions in the third quarter, a government survey showed on Monday, with the nation's recovery from the March 11 disasters boosting sentiment despite the strong yen and looming threat of global economic slowdown.
An index measuring the mood of big companies in a joint survey by the Finance Ministry and Cabinet Office improved to plus 6.6 in the July-September period, from minus 22.0 in the previous quarter.
The result was better than the plus 4.4 that firms ...
TOKYO—Big Japanese firms turned upbeat on business conditions in the third quarter, a government survey showed on Monday, with the nation's recovery from the March 11 disasters boosting sentiment despite the strong yen and looming threat of global economic slowdown.
An index measuring the mood of big companies in a joint survey by the Finance Ministry and Cabinet Office improved to plus 6.6 in the July-September period, from minus 22.0 in the previous quarter.
The result was better than the plus 4.4 that firms ...
2011年8月28日日曜日
Japanese Firms Go Shopping - Wall Street Journal
TOKYO—Unicharm Corp. on Thursday did what hundreds of Japanese firms have done this year. It bought a company overseas.
And like the others, the medium-size supplier of sanitary goods didn't wait for a $50 billion government fund to conceive and close out its purchase of Diana Joint Stock Co., a Vietnamese diaper maker, for an undisclosed sum.
As the government hashes out final details of its plan to stimulate overseas mergers and acquisitions, part of a broader deal announced Wednesday designed to brake the yen's march higher, companies and the people who watch them say it is unclear whether the ...
TOKYO—Unicharm Corp. on Thursday did what hundreds of Japanese firms have done this year. It bought a company overseas.
And like the others, the medium-size supplier of sanitary goods didn't wait for a $50 billion government fund to conceive and close out its purchase of Diana Joint Stock Co., a Vietnamese diaper maker, for an undisclosed sum.
As the government hashes out final details of its plan to stimulate overseas mergers and acquisitions, part of a broader deal announced Wednesday designed to brake the yen's march higher, companies and the people who watch them say it is unclear whether the ...
2011年8月27日土曜日
Tepco's personnel costs higher than firms in other fields, state panel says
A third-party panel tasked with overseeing Tokyo Electric Power Co.'s cost-cutting efforts has graded the utility's personnel expenses as "high," the panel head said."Compared with firms in other sectors, it is undeniable that the expenses are high," Kazuhiko Shimokobe, a lawyer heading the panel, said at a news conference Wednesday, declining to specify which category of the costs is drawing attention.The five-member panel established by the government is investigating Tepco's finances as the utility faces massive compensation payments over the crisis at its Fukushima No. 1 nuclear power plant.Turning to capital investment, Shimokobe said the panel has to look closely into whether Tepco's high cost structure has been maintained without careful consideration, possibly as a result of using higher-quality materials than needed to raise the safety level of its facilities.The panel is tasked with identifying assets the utility should sell and work out measures to correct the company's high cost structure, among other issues. It plans to compile a report in September.
2011年8月21日日曜日
Three firms planning massive solar power complex in Aichi
Mitsui Chemicals Inc., Toshiba Corp. and Mitsui & Co. plan to jointly build a 50,000-kw solar power plant that would be the biggest in Japan, sources said Saturday.They intend to construct the ¥20 billion solar facility on 800,000 sq. meters of land owned by Mitsui Chemicals in Tahara, Aichi Prefecture, and sell electricity to Chubu Electric Power Co. from 2013, the sources said.Roughly 90 percent of the investment is expected to be funded by low-cost loans the companies will seek from the government-affiliated Development Bank of Japan, the sources said.The companies have decided to go ahead with the project because the Diet is set to approve a bill obliging utilities to buy renewable energy, including solar power, from third parties.
Strong yen threatens to force Japanese firms to shift production overseas - Mainichi Daily News
Nissan Motor Co.'s Oppama factory in Yokosuka, Kanagawa Prefecture, is seen on July 2. (Mainichi)Japanese companies including Toyota Motor Corp. could have no option but to shift production overseas if the yen, which recently hit a post-war record high against the U.S. dollar, remains strong for a long time.
"The strong yen will affect a wide range of businesses. I'm worried that Japan's entire industrial sector could experience a downturn," a top executive at a major electronics company told the Mainichi on Aug. 19. An official of a heavy-equipment manufacturing firm said, "Our international competitiveness will steadily decline."
According to a survey of 119 major Japanese companies conducted by the Mainichi from mid-July to early August, the average exchange rate the companies assumed against the dollar for the current business year (ending at the end of March 2012) was the 82 yen level. Currently, the yen is 6 yen higher than that against the dollar.
As for the auto industry, for every one-yen increase against the dollar Toyota's operating profits are projected to drop by 30 billion yen and Nissan Motor Co.'s by 20 billion yen. Toyota fell into the red in the April-June quarter, and calculates that the strong yen cut profits then by 50 billion yen. Toyota is trying to keep its production lines in Japan, but a senior company official said, "We have no option but to have more parts produced abroad."
Mitsubishi Electric Corp. set its assumed exchange rate at 85 yen to the dollar for the business year ending March 2012. If the rate against the dollar is 1 yen stronger than that, profits will drop by 4 billion yen.
"We have to take conventional measures such as cost-cutting and increasing imports of raw materials, but if the yen continues to be strong for a long time, there are limits to what one company can do to deal with it," said a Mitsubishi Electric official.
Takashi Miyoshi, Executive Vice President of Hitachi Ltd., said, "We have to do more business overseas. Otherwise, we will lose cost competitiveness."
The strong yen has merits: people can travel abroad from Japan and companies in Japan can import raw materials from abroad at lower prices. But most economists believe that the adverse effects of the strong yen on the economy caused by poor business performances will outstrip the merits of the strong yen.
The government and the Bank of Japan intervened in the foreign exchange market to sell the yen on Aug. 4, but the effects of such efforts were limited and business managers have become more frustrated. Prime Minister Naoto Kan has said his government would decide on whether to join the Trans-Pacific Partnership (TPP) free trade pact, but that decision has yet to be made. While the government has failed to implement measures to help boost corporate competitiveness, the yen has strengthened.
"Under these circumstances, production bases could be moved overseas," said a top official of a steel company.
2011年8月18日木曜日
Firms team up to launch Japanese budget airline - Calgary Herald
CDMScriptManager.load("http://s9.addthis.com/js/widget.php?v=10");Agence France-Presse August 17, 2011 4:02 AM
Qantas Airways, Japan Airlines and Mitsubishi Corp. said they will launch a new budget airline, Jetstar Japan, by the end of next year, as competition heats up in the low-cost Japanese market.
The airline will be one-third owned by each company and aims to offer fares that are 40 per cent below existing domestic prices. Jetstar Japan flights are set to commence from the end of 2012, by which time Japan Airlines' rival All Nippon Airways will have two ventures up and running - Peach Aviation and AirAsia Japan with Malaysia's AirAsia.
Qantas chief executive Alan Joyce called it a "historic" step for Jetstar, which is the Australian airline's budget offshoot and also the Asia-Pacific's fastest growing carrier, carrying almost 20 million passengers a year.
"This is a major opportunity in a major market," he said, adding that Qantas had a proven ability to operate low-fare airlines.
"It is, we think, the first joint-venture partnership of its kind between an Australian company and two iconic Japanese brands."
Despite a surging yen and a recent post-earthquake slump in tourism to Japan, the domestic low-cost market is being eyed as a major growth opportunity.
Japan's high fuel taxes and landing fees have made it difficult for airlines to introduce low-cost level fares but this is changing, say analysts, amid more "open skies" deals with other nations and future increases of capacity.
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