* * * * * * * * * 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, October 16, 2011, Issue No. 634<br>
<br>+++ INDEX<br><br>- What's New -- Pension Age to Rise to 70?<br>- News -- PM so poor he must be honest<br>- Candidate Roundup/Vacancies<br>- Upcoming Events<br>- Corrections/Feedback -- Japanese acquirers' inability to<br>
manage a global operation<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>
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<br>------------- PBXL is BUSINESS COMMUNICATIONS -------------<br><br>+++ WHAT'S NEW<br><br>Politicians they come and go, but bureaucrats hang around <br>for a life time, and in the end they do run the country. So <br>
when the Labor and Welfare Ministry floats a trial balloon <br>saying that Japan may have to raise the pension age from <br>the current target of 67 due to take place next year (up <br>from 65 this year) to 70 years old, that's another way of <br>
seeing into the future.<br><br>For anyone in their 40's or 50's the Ministry's <br>announcement is really just a confirmation of what we all <br>already know -- that it is unlikely that many of us will <br>get to enjoy the return of our pension contributions <br>
despite the smooth talkers in the nation's leadership. In <br>fact, it's easy to imagine that there won't be an automatic <br>pension by the time we're 70 -- or 75, as it is likely to be <br>in another 10 years time.<br>
<br>The reason for this is three-fold:<br><br>1. The dwindling number of people able to contribute funds <br>to support pensioners. The Welfare Ministry says that the <br>ratio of employees supporting pensioners has fallen from <br>
40:1 in 1979 to just 2.5:1 in 2009. That is: a 20th of the <br>payment base, for significantly more pensioners -- clearly <br>an unsustainable situation. <br><br>[Continued below...]<br><br>-- NAGAMINE & MISHIMA - Securing Your Success in Japan ---<br>
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Our services help customers improve their operations and <br>bottom line results. <br><br>To find out more about our services and how we can help <br>your business in Japan succeed, please visit our website <br><a href="http://www.nagamine-mishima.com">www.nagamine-mishima.com</a> or reach us directly by telephone<br>
at 03-3581-1975 or by email at <a href="mailto:info@nagamine-mishima.com">info@nagamine-mishima.com</a>.<br><br>---------- YOUR BOTTOM LINE IS OUR TOP PRIORITY------------<br><br>[...Article continues]<br><br>2. The number of people who are drawing pensions is <br>
increasing rapidly. Out of the JPY75trn or so in this <br>year's budget, social security spending for fiscal 2011 <br>will be around JPY28.7trn, a record level. That's bad <br>enough, but because of the ever-increasing number of <br>
retirees, who are living longer and who are receiving <br>nursing care in increasing numbers, the social security <br>budget will increase by JPY1.2trn annually from here on <br>out. Meaning that within 5 years, HALF of the government <br>
budget will be spent on retirees.<br><br>3. The government is broke. Japan's GDP last year was <br>JPY476trn and her public debt was JPY862trn. Since debt <br>servicing costs about JPY10trn and overall tax income is <br>
about JPY40trn, borrowings exceeded income for the first <br>time in 2010. This gap between income and lending will <br>increase even more now that the government is running a <br>JPY75trn budget, and this funding gap can only come from <br>
savings, borrowing, or more taxes. Until now about 96% of <br>government borrowing has been from domestic funding <br>sources, but the IMF says that by 2015 public debt will <br>exceed household savings -- meaning that there are few <br>
places to turn to keep things going.<br><br>For these reasons, the pension system and with it the <br>overall concept of citizen entitlement has to change. <br>Raising the pension age is just part of the program that <br>
will inevitably come. Here are some of the things that we <br>believe will happen:<br><br>1. Pension age will rise to 70 by 2015 and to 75 by 2020.<br>2. Pension benefits already being paid out will be cut by <br>5%-10% over the next 5 years. Already, a deflation-adjusted<br>
cut is being discussed.<br>3. Hospitalized pensioners with significant assets will be <br>required to pay a higher personal contribution to health <br>costs, currently set at just 10% (30% for regular workers).<br>4. Intending pensioners will be encouraged to keep working <br>
longer before drawing a pension, by allowing tax and <br>threshold changes in what they can earn from part-time <br>jobs. This is also being discussed.<br>5. The Tohoku disaster-related tax increases of 5%-10% <br>being mooted for 10 years will become permanent.<br>
6. Consumption tax will rise to 10% in 2014 and to 20% by <br>2020 (a Todai professor recently said that 20% consumption <br>tax would actually support the current pension system <br>without further adjustments -- a big temptation for <br>
politicians).<br>7. Social Insurance (shakai hoken) costs to companies and <br>individuals are supposed to top out at 22% over the next 10<br>years or so, but are instead likely to keep rising.<br><br>This all makes for rather bleak reading, and certainly it <br>
is bleak IF Japan continues to stick to the idea that <br>pensions should be an entitlement. However, there is an <br>alternative future. In it, the working population will say, <br>"We've had enough" and vote in a party (or a faction) that <br>
represents the youth and vigor of the nation more than <br>pandering to old folks. That party will appeal to older <br>people to do the right thing for their nation and accept <br>that only those who really need financial support should <br>
get it, leaving everyone else to live off savings and <br>assets. <br><br>It's a tough call, but to continue in the current direction<br>of increasing taxes both direct and indirect can only <br>damage Japan's economy beyond repair, accelerating the exit<br>
of companies and people. And it doesn't take much imagination <br>to see that the quicker they leave, the quicker the problem<br>will get worse.<br><br>...The information janitors/<br><br>***------------------------****-------------------------***<br>
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-----------------------------------------------------------<br><br>+++ NEWS<br><br>- PM so asset-poor he must be honest<br>- New study shows strong foreign hiring<br>- Plankton contaminated with cesium<br>- Palm oil waste into coking fuel<br>
- Hitachi to dispatch thousands overseas<br><br><br><br>-> PM so asset-poor he must be honest<br><br>We hope there will come a time when all politicians are <br>forced to have an income UNDER a certain threshold or they <br>
can't represent their country. If that was to come to pass,<br>a sure qualifier in the honesty stakes would be the new PM,<br>Yoshihiko Noda, who has disclosed family assets of just <br>JPY17.74m, the lowest ever for a Japanese prime minister. <br>
Noda apparently has a house in Chiba worth JPY15.14m and <br>JPY2.6m in savings. ***Ed: Even more impressive is that <br>these numbers include the assets of his wife.** (Source:<br>TT commentary from <a href="http://mainichi.jp">mainichi.jp</a>, Oct 15, 2011)<br>
<br><a href="http://mdn.mainichi.jp/mdnnews/news/20111015p2g00m0dm012000c.html">http://mdn.mainichi.jp/mdnnews/news/20111015p2g00m0dm012000c.html</a><br><br>-> New study shows strong foreign hiring<br><br>A new study put out by serviced offices firm Regus has <br>
found that 63% of Japanese companies plan to hire foreign <br>workers over the next two years, the largest increase in <br>intent to hire foreigners amongst the global 12,800 businesses <br>polled. Germany was second with 59%. Smaller Japanese <br>
companies were characterized in the study as turning to <br>flexible labor, with 47% planning to increase the use of <br>freelancers and 35% the use of remote staff. Despite the <br>increases, Japan is apparently still well behind SMEs <br>
elsewhere in the world in this respect. (Source: TT <br>commentary from Regus press release, Oct 14, 2011)<br><br><a href="http://bit.ly/naRqRk">http://bit.ly/naRqRk</a><br><br>-> Plankton contaminated with cesium<br><br>
In a development that will be concerning to the Japanese <br>public, plankton caught around the Fukushima Daiichi power <br>plant have been found to contain cesium contamination. The <br>Tokyo University of Marine Science said plankton caught 3km<br>
from the plant measured 669 becquerels/kg, not high, but <br>prone to further concentration as the animals are consumed <br>and absorbed into the food chain of larger fish. (Source: <br>TT commentary from <a href="http://nhk.or.jp">nhk.or.jp</a>, Oct 15, 2011) <br>
<br><a href="http://www3.nhk.or.jp/daily/english/15_08.html">http://www3.nhk.or.jp/daily/english/15_08.html</a><br><br>-> Palm oil waste into coking fuel<br><br>The mountains of waste from palm oil processing factories <br>
all over southeast asia may soon be a thing of the past, as<br>Nippon Steel Engineering (NSE) brings its new <br>waste-to-coking fuel plant on stream in 2013. NSE will be <br>the first Japanese entrant into the field and plans to <br>
produce about 3,000 tons of the CO2 neutral fuel a year. <br>The fuel will be sold to Japan, particularly targeting local <br>government waste incineration plants. (Source: TT <br>commentary from <a href="http://e.nikkei.com">e.nikkei.com</a>, Oct 16, 2011)<br>
<br><a href="http://e.nikkei.com/e/ac/tnks/Nni20111015D15JFF03.htm">http://e.nikkei.com/e/ac/tnks/Nni20111015D15JFF03.htm</a><br><br>-> Hitachi to dispatch thousands overseas<br><br>Whether you are good at English or not, if you're an <br>
employee of Hitachi there is no place to hide. The company <br>is planning to dispatch 2,000 "lucky" employees in their <br>20's and early 30's to short-term overseas positions within<br>the group, customer offices, and language schools, over <br>
2012. The company also plans to redo their promising <br>employee training programs, creating a more "practical" <br>curriculum for 3,600 future leaders. ***Ed: Would be <br>interesting to hear more about their plans for the local <br>
restructured training. More language? Or more socialization<br>skills? (Source: TT commentary from <a href="http://e.nikkei.com">e.nikkei.com</a>, Oct 15, <br>2011)<br><br><a href="http://e.nikkei.com/e/ac/tnks/Nni20111014D1410A03.htm">http://e.nikkei.com/e/ac/tnks/Nni20111014D1410A03.htm</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 Technical Support Engineer <br>with experience in providing IT support to end users in <br>the office of our client in the Bunkyo-ku area. The <br>
candidate will be responsible for providing level 1 and 2 <br>support to approximately 350 end users who are <br>predominately Japanese, as well as providing level-3 <br>support of in-house network/server systems. You will also <br>
be responsible for creating work-flow manuals for IT team <br>and end-users.<br><br>Due to the technical nature and demanding work environment,<br>this position is suitable for someone with solid experience<br>as a desktop engineer supporting a day-to-day office <br>
environment. In addition, since this role requires <br>extensive communications with IT engineers and end-users in<br>English, daily conversational-level communication skill in <br>English and native-level Japanese are required.<br>
<br>Remuneration is JPY4m – JPY4.5m depending on your <br>experience and skill level.<br><br>** POSITIONS VACANT<br><br>- Project Mgr (Data Center), global IT co, JPY8M – JPY9.5M<br>- Nw Engr, global telecommunications co., JPY6M – JPY8M<br>
- Field Engineer, BiOS, JPY4.5M – JPY5.5M<br>- Assistant Editor, global publisher, JPY3M – JPY3.5M<br>- Service Delivery Manager, global IT co, JPY8M – JPY10M<br><br>Interested individuals may e-mail resumes to:<br><a href="mailto:tomohiro.kimura@biosjp.com">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">kenji.sakota@biosjp.com</a>.<br>
<br>Interested individuals may e-mail resumes to:<br><a href="mailto:tomohiro.kimura@biosjp.com">tomohiro.kimura@biosjp.com</a><br><br>-----------------------------------------------------------<br><br>***------------------------****-------------------------***<br>
<br>+++ UPCOMING EVENTS/ANNOUNCEMENTS<br><br>--------- Official Apache Solr training in English --------<br><br>For engineers in Japan! (October 25-27, 2011)<br><br>Train in Tokyo to become an expert Apache Solr engineer <br>
with a course developed by the engineers who helped write <br>the Apache Lucene/Solr code. This intensive, three-day, <br>hands-on, classroom course will be delivered in English by <br>certified instructors on Oct. 25-27, 2011 in Tokyo.<br>
<br>"Developing Search Applications With Solr" covers designing<br>Solr applications, indexing, findability, Japanese search <br>support, faceted navigation, admin configurations, etc.<br><br>Training Info: <a href="http://www.lucidimagination.jp/training-en/">http://www.lucidimagination.jp/training-en/</a><br>
<br>Registration: <a href="http://bit.ly/oNarEZ">http://bit.ly/oNarEZ</a><br>-----------------------------------------------------------<br><br>----------------- ICA Event - October 26 ------------------<br><br>Speakers: Various from Apple Japan<br>
Title: Apple in Business<br><br>Details: Complete event details at <a href="http://www.icajapan.jp/">http://www.icajapan.jp/</a><br>(RSVP Required)<br><br>Date: Wednesday, October 26, 2011<br>Time: 8:00am Doors open, Coffee and Light snacks provided<br>
Cost: Free, open to all<br>Venue is Apple Store Shibuya<br><br><a href="http://www.apple.com/jp/retail/shibuya/map/">http://www.apple.com/jp/retail/shibuya/map/</a><br>-----------------------------------------------------------<br>
<br>---------------- Start a Company in Japan -----------------<br><br>Entrepreneur's Handbook Seminar 3rd of December, 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 starting <br>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">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>*** In TT-633 Are We in an M&A Bubble? we discussed the <br>
concern of smaller Japanese firms over-leveraging themselves <br>in the rush to foreign acquisitions. A reader picks up on <br>the ability of such firms to not only finance their new <br>trophies should things go bad abroad, but also their <br>
ability to run them as well.<br><br>=> Reader says:<br>I like the summary of the M&A situation that you give in <br>the latest Take. From personal experience I don't think that<br>Japanese companies are capable of competently managing a <br>
foreign subsidiary. I have just left a major Japanese <br>financial company after several years and part of the <br>reason was the lack of ability in management in Japan to <br>bring the company together. Outside of Japan things work <br>
better but true globalization hit a block when Japanese <br>management was consulted and sacred cows protected. For me <br>the international "experiment" has failed and the primary <br>reason is the lack of direction from management. In my time<br>
with the firm there was never any stated strategy, agreed <br>goals, and little communication. We were basically running <br>blind.<br><br>Thus I fully agree the need for guidance either from the <br>government, or it could even come from the private sector <br>
if there was an organization with that kind of expertise. <br>At the point of purchase the strategy for the merger <br>should be understood and agreed upon. Is it full <br>globalization or will the entities be managed separately? <br>
And if it is full globalization then will the final culture <br>of the firm be the international culture or not? That <br>question applies even here in Japan. There are two reasons <br>for this. The first is that the direction needs to be set <br>
at the very start in order for the integration process to <br>move forward quickly. The second is that the appropriate <br>management can be put in place. A Japanese manager with <br>little experience outside of Japan and no experience <br>
outside of the company cannot run the integration in the <br>majority of cases.<br><br>I actually see this as a huge risk for Japan. From <br>practical experience, I suspect that the actual ROI on the <br>average acquisition by a Japanese company is going to be <br>
very poor due to this lack of ability to integrate and <br>lack of desire to change. I am afraid that all the cash <br>that has been built up will be wasted with little return. <br>The need for the kind of organization you mention is <br>
critical and will make a huge difference in the economy of <br>Japan for the next 20 to 30 years.<br><br>***********************************************************<br>END<br><br>SUBSCRIBERS: 8,369 members as of Oct 16, 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">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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