Strong yen may see 46% of makers leave

The Yomiuri Shimbun

Forty-six percent of major manufacturers would relocate their plants and research and development facilities overseas if the yen remained at the level of 76 yen to the dollar for six months or longer, according to a survey conducted by the Economy, Trade and Industry Ministry.

Thirty-two percent of major manufacturers said their operating profit would drop more than 20 percent if the yen stayed at that level for six months or longer.

The survey shows the hollowing out of the nation's industry may be accelerated if the yen stays strong.

The survey announced by the ministry Thursday covered 154 companies--61 major manufacturers and 93 small and midsize companies--and was conducted Aug. 22 to 26 after the yen surged to a postwar record high of 75.95 yen against the dollar in New York on Aug. 19.

About 80 percent of the companies said their profit would drop if the yen remained at the 76 yen level for six months or longer.

More than 50 percent of major manufacturers said they would procure more materials and parts from overseas to cope with the superstrong yen. This likely would deal a blow to domestic small and midsize manufacturers who have business relationships with them.

Twelve percent of major manufacturers said their profit would increase because the yen's appreciation would push down procurement costs of raw materials.

Meanwhile, 18 percent of major manufacturers said China, South Korea and other countries had approached them to lure them to their countries. Those countries are believed to have presented favorable conditions, such as tax breaks, subsidies and exemption from electricity charges.

Among measures to deal with the surging yen, 87 percent of major manufacturers said they want the government to lower the effective corporate tax rate, which is higher than those of other countries.

Sixty-three percent want the government to continually intervene in foreign exchange markets, while 58 percent want it to promote economic partnerships, such as the Trans-Pacific Partnership (TPP) free trade agreement.

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Short-term leaders in Japan leave disaster victims in limbo : 2011-09-02 - Washington Times

In this photo from Aug. 29, 2011, Yoshihiko Noda, new leader of the ruling Democratic Party of Japan, speaks during a press conference shortly after his election at a voting by the party lawmakers in Tokyo. (Associated Press)

FUKUSHIMA CITY, Japan — Disaster survivors in northeastern Japan are demanding that government officials spend more resources on them instead of focusing on political squabbles in Tokyo, where Yoshihiko Noda took office this week as the country’s sixth prime minister in five years.

From the tsunami-ravaged towns of Ofunato and Rikuzen-takata to the radiation-troubled city of Fukushima, residents of Japan’s wide-ranging disaster zones told The Washington Times that Japan’s weak national leaders have left their lives in limbo.

Nearly six months since a meltdown at the Fukushima nuclear reactors, Fukushima residents said they are still waiting for the government to provide Geiger counters and to test their children for exposure to cancer-causing radioactive isotopes.

“Decisions are not being made fast enough because of the political problems,” said Ayako Okada, who is raising her 5-year-old child in Fukushima city. “Many mothers are worried about what they should do for their children, and whether they should move or stay in Fukushima city. But they aren’t getting proper direction from the government.”

Daisuke Okamato, a teacher at a private school in Fukushima city, has been living in a sort of limbo since the March 11 earthquake, tsunami and subsequent nuclear crisis.

He and his wife recently moved from Iwaki city, about 30 miles south of the damaged nuclear reactors, to the outskirts of Fukushima city farther inland, only to discover that his new neighborhood has higher levels of radiation than he expected, though not high enough to warrant immediate evacuation.

“Nobody knows what is really happening to us right now,” he said. “It’s surreal, like living in a mystery movie. This could go on for the next 10 or 20 years.”

Disappointment and frustration over the government’s performance run deep and wide in Japan, a recent survey shows.

According to an Associated Press-Gfk poll, nearly 75 percent of Japanese citizens doubt the government can handle another major disaster. About 67 percent believe Japan is weaker internationally than it was 10 years ago.

Some 44 percent believe children born today will be worse off when they grow up than people are now, the AP reported.

In coastal areas of Iwate province devastated by the tsunami, many survivors say they can’t make plans because the government still hasn’t figured out where and how to rebuild destroyed towns.

Yasuo Shimizu, 64, a barber in the port town of Ofunato, said his family of four is desperate to build their own home in order to get out of a hot and cramped temporary house at an elementary school.

But the government hasn’t determined where they can build or whether they will be compensated for the loss of their former home.

“We have dreams of the home we would like to build, but it could be a long time before they can become a reality,” Mr. Shimizu said.

Yutaka Kinno, 34, an employee at the Japan agricultural cooperative in the devastated city of Ofunato in Iwate province, said Tokyo politicians have been too busy grappling with their own problems to solve issues in the disaster areas.

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