* * * * * * * * * T E R R I E 'S T A K E * * * * * * *<br>A weekly roundup of news & information from Terrie Lloyd.<br>(<a href="http://www.terrie.com">http://www.terrie.com</a>)<br><br>General Edition Sunday, January 23, 2011, Issue No. 598<br>
<br>+++ INDEX<br><br>- What's New<br>- Short Takes<br>- News<br>- Candidate Roundup/Vacancies<br>- Upcoming Events<br>- Corrections/Feedback<br>- News Credits<br><br>SUBSCRIBE to, UNSUBSCRIBE from Terrie's Take at:<br>
<a href="http://mailman.japaninc.com/mailman/listinfo/terrie">http://mailman.japaninc.com/mailman/listinfo/terrie</a><br><br>BACK ISSUES<br><a href="http://www.japaninc.com/terries_take">http://www.japaninc.com/terries_take</a>, or,<br>
<a href="http://mailman.japaninc.com/pipermail/terrie/">http://mailman.japaninc.com/pipermail/terrie/</a><br><br><br>---------- PBXL SUPPORTS TELL AND YOU SHOULD TOO ----------<br><br>PBXL's corporate responsibility efforts are tightly aligned<br>
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offers free anonymous telephone counseling as well as<br>professional face-to-face counseling for children, families,<br>and individuals.<br><br>Start the year off right and consider making a donation to<br>support and sustain the Tokyo English Life Line. From all <br>
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For information about TELL visit <a href="http://www.telljp.com/">http://www.telljp.com/</a><br><br>------------ PBXL is BUSINESS COMMUNICATIONS --------------<br><br><br>+++ WHAT'S NEW<br><br>One of the predictions we made at the start of this year <br>
was that Prime Minister Naoto Kan would survive his year-end<br>popularity slump and emerge with a much stronger agenda for<br>dealing with Japan's many economic and social ills. <br>Certainly the Trans Pacific Partnership (TPP) trade <br>
agreement appears to be one of the tools he plans to use to<br>forge a reputation for himself and his government as <br>forward thinkers and a party of action. <br><br>TPP is a bold gamble, but after a long period of DPJ <br>
inaction and consequent disappointment by the electorate, <br>it's a bet worth making. If he is successful in quelling <br>the protests from the agricultural sector and farming <br>prefectural governments, and gets the TPP signed, then he <br>
may just be able to capture the public's imagination about <br>how change is once again on its way -- helping the DPJ <br>carry the day at the next general elections. Don't <br>underestimate Mr Kan, is what we think.<br>
<br>Another area the PM is drawing a bead on is that of <br>consumption tax and pensions. His cabinet are doing their <br>best to float trial balloons one after the other, to get <br>the media and consequently the public discussing what <br>
appears to be an inevitable occurrence -- the raising of <br>the Consumption Tax and other painful measures to bring <br>Japan's fiscal house into order. <br><br>The way Kan is going about this is an indication that he <br>
and his government have learned a big lesson from their <br>thrashing in last year's elections. There is a lot more <br>grassroots discussion about the alternatives and consensus <br>is being built up upon a base of recommendations and <br>
published supportive statements from a diverse range of <br>business and financial organizations rather than just from <br>the DPJ itself. <br><br>[Continued below...]<br><br>----------- LINC Media Group companies move ---------------<br>
<br>Readers may recall that in TT581 we wrote about now being<br>a good time to move. We wound up taking our own advice and<br>saving a whopping 50% in rent costs in the process. As a<br>result, the following LINC Media related companies will be <br>
located at this address from Monday, January 24th, 2011. <br>Please note also the changed general phone number.<br><br>New Address:<br>Roppongi OG Building, 1-3-4 Nishi-Azabu, Minato-ku, Tokyo <br>106-0031<br>TEL: 03-4588-2245 (General) <br>
<br>Companies moving:<br>- LINC Media Inc.<br>- BiOS Inc.<br>- Metropolis KK<br>- Japan Inc. Holdings KK<br>- Japan Inc. Communications (ACCJ Journal publisher)<br>- MetroWorks Inc.<br>- Champion Visions Japan<br>- Ohio Department of Development Japan Office<br>
- MyHR Inc.<br>-----------------------------------------------------------<br><br>[...Article continues]<br><br>One of the big questions being asked in the media is <br>whether the nation should raise premiums on a decreasing <br>
working population to pay for pensions or should it <br>continue the current practice of subsidizing the <br>ever-increasing payments from the public purse? If public <br>funding option is desired, then more money has to come from<br>
somewhere, and since the foreign credit markets are too <br>expensive and local government bond sales are being <br>forecast to start drying up, consumption tax is one of the <br>few reliable sources of additional income. <br>
<br>Thus consumption tax MUST go up. Our guess is that it will<br>ihappen shortly after the next general elections, which we <br>think will be held either later this year or ideally next year.<br><br>One way the PM is pushing his program to get the public to<br>
accept the inevitable is to appoint others who are better <br>at handling the media and capturing the public's attention <br>than perhaps Kan can do. Just this year he appointed a <br>fiscal hawk, Economic and fiscal policy minister Kaoru <br>
Yosano to tackle the subject, which Yosano has lost no time<br>in doing.<br><br>We're not sure why having Yosano start the tough discussion<br>on taxes to come is better than Kan doing it -- maybe a <br>cabinet minister sounds more credible? Whatever the <br>
reason, the media and public seem to be coming around to <br>the idea that consumption taxes will increase. A recent <br>Kyodo news poll found that 54.3% of people agree with the <br>necessity of a consumption tax increase. It helps that <br>
various prominent foreign financial analysts at Goldman <br>Sachs and more recently at Citibank are saying that in the <br>mid-term, the chance of Japan having a credit default <br>similar to those in Greece and Portugal is increasingly <br>
possible.<br><br>So will the pensions system be maintained by funneling cash<br>from increased consumption tax? Hearing the media tell the <br>story, a 15% consumption tax rate will be a panacea that <br>will fix the pension system for some time to come. But in <br>
fact, Yosano and others in the DPJ prefer NOT to use <br>consumption tax. Instead, he wants to put up the retirement<br>age and focus on premiums (i.e., user pays), or at least a<br>combination of that and money from the public purse.<br>
Yesterday, Saturday, the Nikkei reported Yosano openly <br>speculating that Japan's retirement age needed to rise from<br>the current 65 years old to something higher. Of course, <br>like any good politician, he denied later that there was any <br>
actual plan by the government to increase the retirement<br>age. But the suggestion has been tabled, and like a good <br>trial balloon should, it got attention AND it didn't get <br>shot down.<br><br>So why does Yosano not want to use the consumption tax <br>
increase to fund the pensions? Probably because the money <br>is already ear-marked for a more important reason: to cover<br>the government's huge short-falls between tax income and <br>outgoings. Apparently interest payments and pension and <br>
other entitlement spending costs will balloon out over the<br>next 10 years to the extent where, according to Nomura <br>Securities' chief public finance analyst, the consumption <br>tax will have to go up to 20% or more to achieve primary <br>
balance. In other words the consumption tax cookie jar<br>isn't going to be big enough to cover both existing social<br>programs and an expanded population of retirees.<br><br>So if pension support can't come from a consumption tax <br>
increase then the only serious alternative is to put off <br>the start of pensions for retirees as Yosano suggests. <br>Instead of 65, we can easily see the government raising the<br>age to 70. The fact is that people are a lot more healthy <br>
and active at 70 these days than they were some decades <br>ago, and working until then is not inconceivable -- <br>although laws will need to be introduced to make firms keep<br>their aging staff. Actually, it is interesting to note that<br>
Germany has already decided to raise its retirement age <br>from 65 to 67, and the UK plans to raise its retirement age<br>to 68 as well. In this respect Japan is not an isolated <br>case. Just it needs to push forward with the tough medicine <br>
and get it out of the way.<br><br>So if you're nearing retirement age, don't hold your <br>breath. Instead you'd better start focusing on your health<br>and achieving some longevity, because you'll be going to <br>
the office for a few more years yet... :-)<br><br>*************<br><br>Lastly, we have some highly interesting reader feedback<br>in the Corrections/Feedback section below, on Facebook's<br>activities here in Japan. One of the great things about <br>
writing Terrie's Take is that we get real insider <br>feedback that helps us navigate the tricky waters of <br>speculation and joining the dots for Japanese commerce<br>news.<br><br>Then there's our Start Your Own Business seminar, on Feb<br>
19th. More details in the Upcoming Events section below.<br><br>...The information janitors/<br><br>***------------------------****-------------------------***<br><br>+++ SHORT TAKES<br><br>Some readers have asked why we are running these health <br>
products messages. Just more ads? Well, no. Actually, we use<br>these products ourselves, to stay competitive working and <br>playing in Tokyo and know them to be effective. It's our <br>way of sharing insider tips with our readers. Of course if<br>
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<br>=> 2. United Airlines Tickets for Two up for grabs<br><br>This coming week, one lucky MMC member will win the grand <br>prize for this quarter: a pair of tickets to any United <br>direct destination in the USA or Asia courtesy of United <br>
Airlines. We've given away 3 pairs of tickets so far, and<br>you could be next.<br> <br>Also, our congratulations to Bernd Giesecke who won the <br>Adidas MI Performance customized shoes courtesy of Adidas.<br><br>Becoming a Metropolis Member is as simple as going to the <br>
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* No charge to enter.<br>* Simply receive the MMC newsletter to stay in the draw.<br><br>***------------------------****-------------------------***<br><br>--------- BIOS - Bilingual IT Systems and Support ---------<br><br>
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This innovative service is available for companies needing<br>to hire staff for Japanese customers, but who are unable<br>to commit to the expense and infrastructure of maintaining<br>an office in Japan. We take care of all aspects of the<br>
employment, contracting, and dispatch -- including <br>management of the employee.<br><br>For more information on this and other SI and IT services,<br>in English or Japanese:<br><br>Phone: (03) 4588-2220, Email: <a href="mailto:solutions@biosjp.com">solutions@biosjp.com</a><br>
Web: <a href="http://www.biosjp.com">www.biosjp.com</a><br>-----------------------------------------------------------<br><br>+++ NEWS<br><br>- Son proposes web access on subways<br>- TPP's upside: food exports<br>- Rakuten still growing strongly<br>
- NEC to cede PC business to Lenovo J/V?<br>- Japan is consumer electronics net importer<br><br><br>-> Son proposes web access on subways<br><br>Softbank's Masayoshi Son is nothing if not an ideas man. He<br>has proposed to the Tokyo Metropolitan Government, which <br>
directly and indirectly owns a good chunk of the subways <br>flowing below it, to provide a devices network that allows <br>commuters to access their email and the web while between <br>stations underground. According to Son, worker productivity <br>
may be boosted significantly if company employees could do <br>email while on the train. Apparently Tokyo-to is viewing <br>the proposal with interest. ***Ed: Of course this ignores <br>the fact that email access can be had at every station and <br>
for about 100m leaving the station, so interruptions while <br>annoying are limited to less than a minute between <br>stations. Further, if we were Tokyo-to, we'd open the idea <br>up for bid. Whomever got the contract could potentially<br>
enjoy the business of more than 20m commuters daily. No<br>wonder Mr. Son is interested.** (Source: TT commentary from<br><a href="http://japantimes.co.jp">japantimes.co.jp</a>, Jan 21, 2011)<br><br><a href="http://search.japantimes.co.jp/cgi-bin/nb20110121a3.html">http://search.japantimes.co.jp/cgi-bin/nb20110121a3.html</a><br>
<br>-> TPP's upside: food exports<br><br>The Ministry of Agriculture may be fighting a rearguard <br>action against the TPP trade agreement, but at the same <br>time is moving forward with an export strategy for the <br>
nation's food producers that should see them improve their <br>situation. The Ministry will be publishing in March a <br>long-term growth strategy for food exports. Japan currently<br>exports JPY1.2trn of food products to Asia's approx. 1bn <br>
middle class and wealthy consumers in 2008. Given that the <br>number of middle class and wealthy consumers is expected to <br>swell to around 1.9bn people by 2020, the expectation is <br>that Japanese high-grade food exports will be in big demand<br>
and will rise to at least JPY2trn by the same date. ***Ed: <br>If one follows what is happening with the sake industry, <br>where struggling producers are finding better markets for <br>their brands overseas than in Japan, and take into account <br>
that for food producers the number of actual domestic <br>customers started shrinking from 3 years ago, it is not <br>hard to see that export is really the only hope for Japan's<br>farming sector. TPP will accelerate this process.** <br>
(Source: TT commentary from <a href="http://e.nikkei.com">e.nikkei.com</a>, Jan 23, 2011)<br><br><a href="http://e.nikkei.com/e/ac/tnks/Nni20110122D22JFF06.htm">http://e.nikkei.com/e/ac/tnks/Nni20110122D22JFF06.htm</a><br>
<br>-> Rakuten still growing strongly<br><br>Market saturation will happen at some point, but just when <br>doesn't seem to be an issue for Rakuten and its famous <br>online shopping mall just yet. The company is expected to <br>
report another year of record profits in April, thanks to a<br>very strong third quarter last year. The company is likely <br>to see sales increase by 17% to JPY350bn, and profits up by<br>15% to JPY65bn. The marketplace place business had more <br>
than 35,000 merchants at the end of 2010, also up 15% on <br>the year. (Source: TT commentary from <a href="http://e.nikkei.com">e.nikkei.com</a>, Jan 22,<br>2011)<br><br><a href="http://e.nikkei.com/e/ac/tnks/Nni20110121D21JFA03.htm">http://e.nikkei.com/e/ac/tnks/Nni20110121D21JFA03.htm</a><br>
<br>-> NEC to cede PC business to Lenovo J/V?<br><br>Although both parties appear to be denying any actual <br>discussions at present, the media is busy reporting that <br>NEC will move its PC business into a joint venture with <br>
Lenovo. The nature of the deal is unknown at this stage, <br>but media speculation is that the deal will not be a <br>straight sell-out of the PC business to Lenovo as was <br>the case with IBM in 2004. Rather, the new j/v would be <br>
responsible for R&D, production, support, etc., while the <br>products continue to carry the NEC name. NEC has done <br>several similar deals to slim down its overall operations <br>in recent years (Renesas, also a j/v with Casio and Hitachi<br>
for cell phones). (Source: TT commentary from <br><a href="http://online.wsj.com">online.wsj.com</a>, Jan 21, 2011)<br><br><a href="http://tinyurl.com/4fw57hw">http://tinyurl.com/4fw57hw</a><br><br>-> Japan is consumer electronics net importer<br>
<br>In a sign of the times, the Japan Electronics and <br>Information Technology Industries Association (JEITA) has <br>released data showing that Japan became a net importer of <br>consumer electronics goods in 2010. The country exported <br>
JPY762bn of consumer electronics and imported JPY769bn, a <br>net deficit of JPY7bn. On the positive side, industry <br>experts note that many of the imports were Japanese brand <br>products manufactured in low-cost locations abroad. ***Ed: <br>
This point about globalized companies no longer being <br>counted as exporters from Japan is of course a very <br>interesting one. There should be a study on the net trade<br>value and income (not just Japan-reported income) for <br>
all Japanese company activity overseas. Such a report would<br>give pause to the doomsayers about Japan.** (Source: TT <br>commentary from <a href="http://ft.com">ft.com</a>, Jan 21, 2011)<br><br><a href="http://tinyurl.com/45t8lb2">http://tinyurl.com/45t8lb2</a><br>
<br><br>NOTE: Broken links<br>Many online news sources remove their articles after just a<br>few days of posting them, thus breaking our links -- we<br>apologize for the inconvenience.<br><br>***------------------------****-------------------------***<br>
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<br>+++ CANDIDATE ROUND UP/VACANCIES<br><br>=> BiOS, a Division of the LINC Media group, is actively <br>marketing the following positions for customers setting up <br>or expanding in Japan, as well as other employers of <br>
bilinguals.<br><br>** HIGHLIGHTED POSITION<br><br>BiOS is currently looking for an experienced helpdesk <br>engineer to join an international medical equipment company<br>located in Bunkyo-Ku, Tokyo. A successful candidate will be<br>
responsible for supporting end users, predominantly <br>Japanese language environment, with not only limited to 2nd<br>level support, but also support including; <br>Laptop/SmartPhone setup, network/server administration, etc. <br>
<br>At least 2 years of helpdesk/desktop experience, with wide <br>knowledge of system administration experience is required. <br>The qualified candidate would also have business level <br>English and native level Japanese.<br>
<br>Salary: JPY4m – JPY5m per year, based on your experience.<br><br><br>** POSITIONS VACANT<br><br>- Snr Infra Engineer, BiOS, JPY5m – JPY7.5m<br>- Network Engineer, global IT co, JPY7m – JPY10m<br>- Staffing Consultant, BiOS, JPY2.5m – JPY3m + comm.<br>
- Sales Team Account Manager, BiOS, JPY3.5m – 4.5m + comm.<br>- Media Management Mgr (DC), iBank, JPY 4m – JPY5m<br><br>Interested individuals may e-mail resumes to:<br><a href="mailto:kenji.sakota@biosjp.com">kenji.sakota@biosjp.com</a><br>
<br>** BiOS Job Mail<br><br>Every 2 weeks BiOS sends out a regular communication to its<br>job seeking candidates, called BiOS Job Mail. Every edition<br>carries a list of BiOS's current and most up-to-date<br>vacancies, with each entry featuring a short job<br>
description and a direct link to the main entry on the BiOS<br>home page. Regardless of whether you are unemployed and<br>searching, thinking about a career change, or just curious<br>to know if there is something out there that might suit you<br>
better, the BiOS Job Mail newsletter is an easy and<br>convenient way for you to stay informed. If you would like<br>to register for the BiOS Job Mail, or to find out more,<br>please email <a href="mailto:stuart.gibson@biosjp.com">stuart.gibson@biosjp.com</a>.<br>
<br>Interested individuals may e-mail resumes to:<br><a href="mailto:stuart.gibson@biosjp.com">stuart.gibson@biosjp.com</a><br><br>-----------------------------------------------------------<br><br>***------------------------****-------------------------***<br>
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Tel: 080-6635-8466.<br>-----------------------------------------------------------<br><br>--------------- Start a Company in Japan ------------------<br><br>Entrepreneur's Handbook Seminar 19th of February, 2011<br><br>
If you have been considering setting up your own company,<br>find out what it takes to make it successful.<br>Terrie Lloyd, founder of over 13 start-up companies in Japan,<br>will be giving an English-language seminar and Q and A on<br>
starting up a company in Japan.<br>This is an ideal opportunity to find out what is involved,<br>and to ask specific questions that are not normally answered<br>in business books.<br>All materials are in English and are Japan-focused.<br>
<br>For more details:<br><a href="http://www.japaninc.com/entrepreneur_handbook_seminar">http://www.japaninc.com/entrepreneur_handbook_seminar</a><br>-----------------------------------------------------------<br><br>***------------------------****-------------------------***<br>
<br>+++ CORRECTIONS/FEEDBACK<br><br>In this section we run comments and corrections submitted<br>by readers. We encourage you to spot our mistakes and<br>amplify our points, by email, to <a href="mailto:editors@terrie.com">editors@terrie.com</a>.<br>
<br>*** Greenpeace, not Peter Bethune<br><br>In TT595 and TT583 we incorrectly identified whale activist<br>Peter Bethune as a member of Greenpeace. While he once was,<br>he has long since split from that organization and founded<br>
the Sea Shepherd organization. We regret the error and <br>appreciate Greenpeace pointing it out.<br><br>*** TT597 Facebook Japan comments<br><br>Reader: Thanks for another great edition of Terries Take. I<br>deeply appreciate each and every one. Just wanted to offer <br>
a few corrections and comments on the Facebook article.<br><br>First, the Facebook Japan office was set up in about March <br>2010. It remained undercover for a while before the country<br>growth manager and his colleague began leaving the office <br>
to develop relationships with bigger brands like Recruit. <br>They also have three software engineers from Palo Alto <br>here in Tokyo, who helped sharpen the mobile platform and <br>develop the Connection Search functionality.<br>
<br>Regarding the Mixi partnership, which you mentioned <br>scratching your head over: this is not actually a <br>partnership like one would imagine. It was Facebook <br>integrating an already available Mixi API that other <br>
services had also been using. The Nikkei story was later <br>proven to be misleading in that sense - to my knowledge <br>there was actually no direct conversation between Mixi and <br>Facebook on this feature.<br><br>As far as a Facebook buyout of Mixi - I think it would be <br>
incredibly unlikely. Mixi users not only tend to use <br>pseudonyms but have photo albums without photos of <br>themselves, and friend networks that consist not of offline<br>friends but ones made online. While similarities exist <br>
between the services I think some of the nuances in terms <br>of use and organization of user information makes the two <br>services pretty incompatible. <br><br>Facebook in Japan is really on what I can only describe as <br>
a "noble mission". They're fighting to break into the <br>Japanese SNS space on their terms and their terms alone. <br>Zuck wont budge on things like people registering with <br>real names and using real profile photos - Japan will not <br>
get an exception from that underlying culture. I can't say <br>if this is smart or stupid.<br><br>***********************************************************<br>END<br><br>SUBSCRIBERS: 8,735 members as of January 24, 2010<br>
(We purge our list regularly.)<br><br>+++ ABOUT US<br><br>STAFF<br>Written by: Terrie Lloyd (<a href="mailto:terrie.lloyd@japaninc.com">terrie.lloyd@japaninc.com</a>)<br><br>HELP: E-mail <a href="mailto:Terrie-request@mailman.japaninc.com">Terrie-request@mailman.japaninc.com</a><br>
with the word 'help' in the subject or body (don't include<br>the quotes), and you will get back a message with<br>instructions.<br><br>FEEDBACK<br>Send letters (Feedback, Inquiries & Information) to the<br>
editor to <a href="mailto:terrie.lloyd@japaninc.com">terrie.lloyd@japaninc.com</a>.<br><br>ADVERTISING INFORMATION<br>For more information on advertising in this newsletter,<br>Contact <a href="mailto:ads@japaninc.com">ads@japaninc.com</a>.<br>
<br>SUBSCRIBE<br>Get Terrie's Take by giving your name and email address at<br><a href="http://www.japaninc.com/newsletters/free_sign_up">http://www.japaninc.com/newsletters/free_sign_up</a>, or go<br>straight to Mailman at:<br>
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or, <a href="http://mailman.japaninc.com/pipermail/terrie/">http://mailman.japaninc.com/pipermail/terrie/</a><br><br>Copyright 2011 Japan Inc. Communications Inc.<br><br>----------------- Japan Inc opens up Japan ----------------<br>
<br>J@pan Inc is Japan's only independently published English-<br>language business website. Authoritatively chronicling <br>online the business trends in Japan, each posting brings <br>you in-depth analysis of business, people and technology in<br>
the world's second largest economy. <br><br>Visit <a href="http://www.japaninc.com">www.japaninc.com</a> for the best business insight on<br>Japan available.<br>-----------------------------------------------------------<br>
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