* * * * * * * * * 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" target="_blank">http://www.terrie.com</a>)<br><div class="gmail_quote">
<br>General Edition Sunday, August 28, 2011, Issue No. 627<br>
<br>+++ INDEX<br><br>- What's New -- Old People: Savings and Health Liabilities.<br>- News -- M&A picks up steam<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" target="_blank">http://mailman.japaninc.com/mailman/listinfo/terrie</a><br><br>BACK ISSUES<br><a href="http://www.japaninc.com/terries_take" target="_blank">http://www.japaninc.com/terries_take</a>, or,<br>
<a href="http://mailman.japaninc.com/pipermail/terrie/" target="_blank">http://mailman.japaninc.com/pipermail/terrie/</a><br><br><br>----------- UPGRADE TODAY TO PBXL IP TELEPHONY ------------<br><br>PBXL has the solution for your office. PBXL will purchase<br>
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<br>------------ PBXL is BUSINESS COMMUNICATIONS --------------<br><br><br>+++ WHAT'S NEW<br><br>We were in Shinjuku Tokyu Hands today, just in time for <br>their big annual Hands Messe sale. The place was packed <br>
with people browsing for the unusual and unbuyable (in <br>regular stores anyway). While looking around the Interior <br>section, which features goods at twice or triple the price <br>of Crate&Barrel in the USA, we happened to notice a number <br>
of older customers clustered around the bedding section. <br><br>They were eying up the latest Tempur sponge pillows, the <br>type that mold to and support your head and body shape. <br>These are no ordinary pillows and come at a pricey <br>
JPY14,000 and up. In the USA you can buy the same thing <br>online for US$86, or around JPY6,500, meaning someone is <br>making a pretty healthy profit. Anyway, these things are <br>really popular, and we hung around long enough to see one <br>
old lady line up pillows, mattress cover and a bunch of <br>other accessories, which will set her back the best part of<br>JPY100,000. We suppose a good sleep is worth a fortune to <br>the right person, especially an older person who carefully<br>
picks and chooses their luxuries.<br><br>This got us thinking about the declining Japanese consumer <br>market and where the few bright patches are. Clearly, at <br>least one of the brightest patches is old people -- <br>
especially if you're selling specialist bedding, orthopedic<br>hip replacements, and food processors that let you process <br>veges without having to chew them so much. Yes, these are <br>big sellers as well. :-). How convenient that old people <br>
in Japan also own most of the nation's wealth. Currently <br>the Japanese public has financial assets of JPY1.476q <br>(US$19trn), about 1/7 of the world's total savings, and <br>of that more than 60% is owned by people 60 or older.<br>
<br>So it was a coincidence that as we were researching data on<br>the wealth of old people we came across a story describing <br>the other side of the coin, that is, the cost of old people<br>to Japan in terms of healthcare. According to a Nikkei <br>
article, the nation's medical costs rose 3.9% to a record <br>JPY36.6trn (US$481m) for Fiscal Year 2010 through to March <br>31st, 2011, and of this, expenses due to people aged 75 or <br>older rose 5.5% to JPY12.7trn -- or 35% of the total. <br>
<br><br>[Continued below...]<br><br>---------------- Would You Write to Eat Out? --------------<br><br>Metropolis' <a href="http://www.metrodining.jp" target="_blank">www.metrodining.jp</a> website is gaining followers<br>
at a prodigious pace, and we need more expertly written<br>
food reviews.<br><br>If you can write, and if you eat out a lot anyway, just<br>how many reviews of places you have already been to would<br>you be willing to write, in return for a meal out for two<br>as payment? What about being "paid" in hotel rooms at<br>
resorts outside Tokyo, or in brand name clothing or airline<br>tickets?<br><br>We're interested to know the answer to that question and<br>invite readers to contact us and share their opinions.<br>Better still, if you would like to be a guinea pig in a<br>
new barter payment program we are considering for<br>Metrodining.jp, then email and let us know.<br><br>Contact us at <a href="mailto:terrie@metropolis.co.jp" target="_blank">terrie@metropolis.co.jp</a> to kick things off.<br>
------------------------------------------------------------<br>
<br>[...Article continues]<br><br>Work back to people aged 70 and older and the percentage <br>goes up to 44.3%. Now keep in mind that we have entered the<br>age of generic drugs, so apart from the fact that <br>government-mandated treatment fee reimbursement rates for <br>
hospitals and clinics rose just 0.19%, it's clear that most<br>of the increase is caused by old people.<br><br>So how is it that we have a situation where old people have<br>the bulk of the nation's savings and yet the young working <br>
tax payer is expected to cover the oldies' rapidly <br>increasing health care bills? The national insurance system<br>for health, pension, and unemployment is already in deep <br>trouble, and the government itself is hugely in debt and <br>
planning to issue more bonds to go even deeper in. <br>Therefore, with a rapidly declining workforce and a much <br>smaller payroll tax base to lean on in future years, it's <br>obvious that the current arrangement can't keep going. <br>
<br>One answer in the interim is said to be a massive rise <br>in consumption tax, and Japan certainly has the luxury of <br>having up to 15%-17% more tax up its sleeve before it hits <br>similar rates to countries like the UK. However, here in <br>
Japan consumption tax in reality is a tax on the young, who<br>are also typically poor, since it levies essentials, not <br>just discretionary items. Financial experts such as the<br>IMF say that a Japanese consumption tax rise will not be <br>
regressive, since low-income earners pay progressively<br>lower income tax anyway and older people can still consume <br>high-value goods and services even though they have little <br>income. <br><br>But we don't agree. The fact is that annual spending by <br>
people 70 or older in Japan is documented to be 10% less <br>than that those in their 30s. A much higher consumption<br>tax is going to dampen that discretionary spending even<br>more -- moving the tax burden to regular daily necessities.<br>
Therefore, we don't think raising consumption tax is going <br>to fix the basic problem of a rapidly greying society nor <br>the lopsided distribution of wealth and health care <br>liabilities. It will be a great 10-year bandaid however.<br>
<br>So what other options are there? Our take is that not only <br>will the retirement age be lifted to at least 70, so as to <br>delay benefits, there will also be a means test on <br>pensioners receiving their full pensions. We have already <br>
seen the idea of discriminating who can receive benefits <br>and who cannot, based on the debate over payment of <br>increased child allowances by the DPJ last year. For a while it <br>looked like income earners of JPY20m or more weren't going <br>
to get the allowances, even though as tax payers they had a<br>right to them. We think this idea of using social welfare <br>as a safety net for the unfortunate, rather than a right of<br>the many, is an inevitable development whose time will soon<br>
come.<br><br>Also, and this may sound a bit extreme, Japan may have to go<br>back to old traditions of deciding who gets to live a long <br>medically assisted life and who is allowed to pass away <br>with less intervention -- think "Ubasuteyama" legends where <br>
villagers in times of famine were said to leave their old <br>folks up in the hills to die. This may sound harsh, and it <br>certainly is morally loaded, but it could be achieved in a <br>politically acceptable way by partially privatizing the <br>
health system so that people aged 70 or over would have to <br>use their own assets for prolonged medical care. In this<br>way they get to choose whether to keep living at their own<br>cost or to pass their remaining assets to their kids.<br>
<br>This certainly isn't what Japanese want to hear about the <br>future for their health and social welfare system, but if <br>you think about it, the current arrangement already <br>unfairly burdens the young and if anyone was so inclined to<br>
study the problem they would probably find that it is <br>adversely impacting child welfare. You have to wonder why <br>society should value more favorably a bedridden elderly <br>person with plenty of assets over a child whose parents are<br>
struggling to make ends meet? Is it simply because old <br>people can vote, and kids cannot?<br><br>If you want to learn more about the pros and cons of a <br>higher consumption tax, two very good articles online are:<br>
<br>1. A May 2000 report from the Japan Economic Institute.<br><a href="http://www.jei.org/Restricted/JEIR00/0019f.html" target="_blank">http://www.jei.org/Restricted/JEIR00/0019f.html</a><br><br>2. And, a June 2011 report from the IMF entitled: "Raising <br>
the Consumption Tax in Japan: Why, When, How?"<br><a href="http://www.imf.org/external/pubs/ft/sdn/2011/sdn1113.pdf" target="_blank">http://www.imf.org/external/pubs/ft/sdn/2011/sdn1113.pdf</a><br><br><br>...The information janitors/<br>
<br>***------------------------****-------------------------***<br><br>--------- BIOS - Bilingual IT Systems and Support ---------<br><br>BiOS full-service IT solutions has a new service.<br><br>Working with our fully licensed temporary dispatch group,<br>
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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>Also, if you're thinking of Cloud office solutions, take a<br>
look at Microsoft's new Business Productivity Online<br>Standard Suite. Terrie mentions Exchange Online in TT602,<br>and we can do the same implementations for you.<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" target="_blank">solutions@biosjp.com</a><br>Web: <a href="http://www.biosjp.com" target="_blank">www.biosjp.com</a><br>-----------------------------------------------------------<br>
<br>+++ NEWS<br><br>- KDDI surpasses Softbank in new smartphone sales<br>- Softbank pays Citibank debts by selling Yahoo shares<br>- Consumer finance firms may be turning corner<br>- Japanese M&A picks up steam<br>- Domestic demand to boost solar energy shipments 1,000%<br>
<br><br><br>-> KDDI surpasses Softbank in new smartphone sales<br><br>While Softbank waits patiently for Apple to unleash the <br>iPhone 5 on the world, its fortunes in the marketplace are <br>falling while competitors who have next-generation Android <br>
products are in the ascendent. In July, KDDI overtook <br>Softbank Mobile in terms of new smartphones sold, according<br>to data from research firm BCN. ***Ed: Given that Apple has<br>significantly increased its projections for sales of iPhone<br>
5 phones worldwide, we don't think we can forecast the <br>demise of Softbank just yet.** (Source: TT commentary from <br><a href="http://e.nikkei.com" target="_blank">e.nikkei.com</a>, Aug 28, 2011)<br><br><a href="http://e.nikkei.com/e/ac/tnks/Nni20110827D27JFF01.htm" target="_blank">http://e.nikkei.com/e/ac/tnks/Nni20110827D27JFF01.htm</a><br>
<br>-> Softbank pays Citibank debts by selling Yahoo shares<br><br>Softbank has for the last time tapped into its lucky<br>treasure trove of Yahoo shares, selling 4% of its holding <br>in the US firm to Citibank in return from being released <br>
from a $1.135bn loan it received from the bank in 2004. <br>Softbank has done well out of Yahoo and used proceeds from<br>the 37% it held back in 1996 to pay down a substantial <br>amount of acquisition costs in its telecoms business as <br>
well as making many other investments. Softbank still holds<br>a major stake in Yahoo Japan, which is yet another money <br>machine. (Source: TT commentary from afp on <a href="http://google.com" target="_blank">google.com</a>, Aug <br>
28, 2011) <br>
<br><a href="http://bit.ly/nnnMHN" target="_blank">http://bit.ly/nnnMHN</a><br><br>-> Consumer finance firms may be turning corner<br><br>In what would have to be good news for Shinsei bank and <br>other firms that jumped in to the consumer finance sector <br>
10 years ago, the level of refund requests from consumers <br>to finance firms dropped 20% in July over the same month <br>last year. Empowered by a court ruling in 2006, consumers <br>had been flocking to major consumer finance firms to seek <br>
compulsory refunds for loans they took pre-2007 and which<br>were often charged at more than 22%. This down trend in<br>refunds is happening just in a nick of time for some <br>firms, but too late for industry leader Takefuji which<br>
went bust last year. (Source: TT commentary from <br><a href="http://e.nikkei.com" target="_blank">e.nikkei.com</a>, Aug 27, 2011)<br><br><a href="http://e.nikkei.com/e/ac/tnks/Nni20110826D2608A14.htm" target="_blank">http://e.nikkei.com/e/ac/tnks/Nni20110826D2608A14.htm</a><br>
<br>-> Japanese M&A picks up steam<br><br>The announcement by Asahi Group Holdings that it will buy <br>Independent Liquor in New Zealand for US$1.3bn is a good <br>example of the dramatic increase of overseas acquisitions <br>
by Japanese firms, thanks to the strong yen and easy <br>lending conditions. Japanese international M&A activity is <br>up 67% over FY2010, with 401 deals worth US$45bn already <br>announced so far since January 1st. The top countries <br>
targeted by Japanese firms are Switzerland, the USA, and <br>Brazil. ***Ed: A recent Nikkei article reckons that 80% of <br>all earnings by listed companies as of March 31st, 2011, <br>were derived from foreign earnings -- adequate proof that <br>
we are in the middle of a revolution in Japan's interaction<br>with the rest of the world on a commercial level.** <br>(Source: TT commentary from <a href="http://bloomberg.com" target="_blank">bloomberg.com</a>, Aug 26, 2011)<br>
<br>
<a href="http://www.reuters.com/article/2011/08/19/asiainvbank-idUSL3E7J50IU20110819" target="_blank">http://www.reuters.com/article/2011/08/19/asiainvbank-idUSL3E7J50IU20110819</a><br><br>-> Domestic demand to boost solar energy shipments 1,000%<br>
<br>The Chairman of the Japan Photovoltaic Energy Association <br>has announced that he reckons Japanese demand for solar <br>cells will increase 10-fold in a "short period". The <br>reason is because of the government incentives now offered <br>
to the producers of wind, solar, and geothermal power, <br>which requires public power utilities to buy such <br>alternative power at above-market rates. Apparently solar <br>panel shipments are already 31% up in the 3 months ending <br>
June 2011, over the same period in FY2010. ***Ed: Solar <br>energy accounts for just 2.9% of power consumed in Japan in<br>2010, compared to 15% in Germany, so we have lots of <br>capacity to fill yet.** (Source: TT commentary from <br>
<a href="http://bloomberg.com" target="_blank">bloomberg.com</a>, Aug 26, 2011)<br><br><a href="http://bloom.bg/omckiL" target="_blank">http://bloom.bg/omckiL</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><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 urgently looking for a Service Desk Manager with <br>
at least four years of experience as a helpdesk, service <br>desk, or desktop manager, at our client’s office in the <br>Kanagawa area. In this position, the candidate will be <br>responsible for managing internal IT engineers so as to <br>
provide quality services to predominately Japanese <br>clients. Delivery quality will be achieved by following <br>SLAs, as well as by implementing ITIL Principles and IT <br>industry best practices.<br><br>You will also be responsible for developing, implementing, <br>
and controlling the IT change processes and asset <br>management policies, based on global and local processes <br>and procedures.<br><br>Due to the technical nature and demanding work environment,<br>this position is suitable for someone with solid experience<br>
as a helpdesk/service desk/desktop manager. In addition, <br>since this role requires frequent direct negotiations and <br>discussions with both staff and management-level business <br>professionals, native-level Japanese and business-level <br>
English communication skills are also required.<br><br>Remuneration is JPY6.5m – JPY8m, depending on your <br>experience and skill level.<br><br>** POSITIONS VACANT<br><br>- Data Center Engineer, BiOS, JPY4M – JPY5M<br>- VoIP Engineer, global IT co, JPY5M – JPY7M<br>
- Field Engineer, BiOS, JPY4M – JPY5M<br>- Vendor Manager, global insurance, JPY8M – JPY10M<br>- MAC Coordinator, global ibank, JPY4M – JPY5M<br><br>Interested individuals may e-mail resumes to:<br><a href="mailto:tomohiro.kimura@biosjp.com" target="_blank">tomohiro.kimura@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:kenji.sakota@biosjp.com" target="_blank">kenji.sakota@biosjp.com</a>.<br>
<br>Interested individuals may e-mail resumes to:<br><a href="mailto:tomohiro.kimura@biosjp.com" target="_blank">tomohiro.kimura@biosjp.com</a><br><br>-----------------------------------------------------------<br><br>***------------------------****-------------------------***<br>
<br>+++ UPCOMING EVENTS/ANNOUNCEMENTS<br><br>--------------- Start a Company in Japan ------------------<br><br>Entrepreneur's Handbook Seminar, 10th of September, 2011<br><br>If you have been considering setting up your own company,<br>
find out what it takes to make it successful. Terrie Lloyd,<br>founder of over 17 start-up companies in Japan, will be<br>giving an English-language seminar and Q and A on<br>starting up a company in Japan.<br><br>This is an ideal opportunity to find out what is involved,<br>
and to ask specific questions that are not normally<br>answered in business books. All materials are in English<br>and are Japan-focused.<br><br>For more details:<br><a href="http://www.japaninc.com/entrepreneur_handbook_seminar" target="_blank">http://www.japaninc.com/entrepreneur_handbook_seminar</a><br>
-----------------------------------------------------------<br><br>--------------- Mate Rock Charity Concert -----------------<br><br>Australian Rock Legends come together to help Tohoku<br><br>Featuring: Jimmy Barnes, the Angels, & Kevin Bloody Wilson!<br>
Hakuba 47, 10th of September, 2011.<br><br>Mate Rock is a musical extravaganza to be held in Hakuba, a<br>beautiful mountain village in the Japan Alps, about 3 hours<br>from Tokyo. The concert will run from noon to early evening<br>
at the base of the 47 Ski Resort. Bring a rug and a picnic<br>and enjoy a day of classic Australian rock in a spectacular<br>natural setting.<br><br>All proceeds of the concert will go to charities in Tohoku<br>providing scholarships for children to study overseas.<br>
<br>For information and bookings; <a href="http://www.materock.com" target="_blank">www.materock.com</a><br>-----------------------------------------------------------<br><br>--------------- ICA Event - September 15 ------------------<br>
<br>Speaker: Richard Rettig, Managing Director - Monoidics <br>Japan Ltd.<br>Title: Software - Friend or Foe<br><br>Details: Complete event details at <a href="http://www.icajapan.jp/" target="_blank">http://www.icajapan.jp/</a><br>
(RSVP Required)<br>
<br>Date: Thursday, September 15, 2011<br>Time: 6:30 Doors open, Buffet Dinner included and cash bar<br>Cost: JPY4,000(members), JPY6,000(non-members) Open to all.<br>Venue is The Foreign Correspondents' Club of Japan<br>
<br><a href="http://www.fccj.or.jp/aboutus/map" target="_blank">http://www.fccj.or.jp/aboutus/map</a><br>-----------------------------------------------------------<br><br>--------------- Tohoku is Still in Need -------------------<br>
<br>
The Japan Emergency Team arrived within hours of the <br>disaster, at the Sendai City Office, and continues to <br>operate in Tohoku.<br> <br>The team has delivered nearly 20,000 hot meals, repaired <br>nearly 200 homes, and provided around 1,200 daily <br>
volunteers to help with the clean-up.<br> <br>The team is urgently in need of canned and instant food, <br>bottled water, towels, and soap -- to be given out from <br>its Disaster Relief Vehicle.<br> <br>Volunteers able to spend a minimum of one day are also <br>
urgently needed.<br> <br>Donations can be made via Post Office Furikae <br>00160 7 162438, Nihon Kinkyu Enjotai.<br> <br><a href="http://www.jhelp.com" target="_blank">www.jhelp.com</a> or <a href="mailto:info@jhelp.com" target="_blank">info@jhelp.com</a><br>
-----------------------------------------------------------<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" target="_blank">editors@terrie.com</a>.<br><br>*** No feedback this issue.<br><br>***********************************************************<br>
END<br><br>SUBSCRIBERS: 8,930 members as of Aug 28, 2011<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" target="_blank">terrie.lloyd@japaninc.com</a>)<br>
<br>HELP: E-mail <a href="mailto:Terrie-request@mailman.japaninc.com" target="_blank">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>
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Contact <a href="mailto:ads@japaninc.com" target="_blank">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" target="_blank">http://www.japaninc.com/newsletters/free_sign_up</a>, or go<br>
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or, <a href="http://mailman.japaninc.com/pipermail/terrie/" target="_blank">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" target="_blank">www.japaninc.com</a> for the best business insight on<br>Japan available.<br>-----------------------------------------------------------<br>
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