Executives' Comments Press Conferences Chairman Yonekura's comments at his Press Conference
Expectations for the Abe Administration
Japanese companies are struggling to survive global competition when domestic business conditions are incredibly tough. The Abe cabinet is anticipated to introduce pro business policy without break so that Japanese companies can compete on an equal footing. More precisely, it is necessary for the government to implement its growth strategy such as drastic deregulation. It will generate demand, increase investment and create employment in the domestic market. It is also important to fasten ties with foreign business partners through expansion of EPA and FTA to meet growing overseas demand. "Human resource" is the key to success and there is no time to lose to encourage domestic talents. It is not allowed to go without substantial reconstruction after the Great East Japan Earthquake.
The Japanese economy entered a contraction phase at the end of last year. Although the business climate in Japan is still severe, some good news has been coming from the market. Stock prices rose as the market reacted to the landslide victory of the Liberal Democratic Party led by Shinzo Abe in the general election and the inauguration of his administration. European sovereign debt crisis seems to have been heading in the right direction and it has brought about a depreciation of the extremely strong yen. Japan's exports to China and other trade partners are anticipated to increase this year. It is true that car sales have been declining since the "Eco-car Subsidy," or the subsidy for diffusion of eco-friendly vehicles expired last autumn, but the trend will not last long. Taking these positive factors into consideration, there is no doubt that business will pick up in Japan.