Abenomics

MNCs in the News-2017-04-28

China’s ambitions to become one of the world’s great auto manufacturers lead it to consider relaxing its limits on foreign auto investment in the United States. Recent report touts increasing volume of Chinese outward foreign direct investment (FDI) in the US and commensurate job contribution. Abe-Putin summit leads to 20 agreements for joint projects involving Japanese investment, technology transfer, and other forms of economic cooperation. Korea and US hold conference on cooperation in energy sector following the Trump administration’s new America First energy policy. Concerns over governance, transparency and competitiveness of the issuance of contracts make Perkasa demand public discussions on FDI in Malaysia. Malaysia’s health care system and medical tourism facilitate growth in the country’s inward FDI. South Korea’s Posco Group awaits Vietnamese government approval for build-operate-transfer clean coal power plant. Vietnam’s PV Gas and foreign partners to construct a USD $1.27 billion natural gas pipeline in Vietnam.

MNCs in the News-2015-02-27

Foreign firms and industry associations struggle to determine how to deal with Chinese regulators. Foreign information technology firms lose place on China’s official list of approved products. Despite political challenges, Google salivates over China opportunities created by massive Android user base. China’s anti-corruption campaign and other factors disrupt payback from Sino-Myanmar pipeline investments. Japanese Prime Minister Abe Shinzo plans to release measures in March to boost inward foreign investment into Japan. Japan’s weak yen policy encourages Japanese firms to invest abroad. Japan’s railway consortium likely to win bid to build Doha subway system. Japan concludes major loan agreement with Kenya to fund expansion of Mombasa port. Korean lobbies foreign companies to invest more in Korea. Indonesian policies to promote its domestic auto sector push out GM. Vietnam’s opening of retail sector to foreign firms intensifies challenges for domestic retailers.

Mr. Naoyuki Haraoka's picture

Japan’s New Corporate Governance Code and Its Investment Implications

Mr. Naoyuki Haraoka
Posted: Jan 18, 2015

At the end of 2014, the Japanese Financial Services Agency (FSA) announced a new code of corporate governance, to be adopted in June this year, to advance the “third arrow” (structural reform) of “Abenomics,” Japanese Prime Minister Abe Shinzo’s multi-pronged program for reinvigorating Japanese economic growth.

Mr. Naoyuki Haraoka's picture

The Tokyo Olympics & Paralympics in 2020: A Stepping Stone to “Amazing Japan”?

Mr. Naoyuki Haraoka
Posted: Nov 21, 2014

The Japanese economy is struggling hard to escape deflation. This coupled with a shrinking domestic market resulting from depopulation is pushing many Japanese firms to move their facilities overseas, mostly East Asia, in order to gain additional market opportunities. To replace the capital lost to other East Asian countries, Japan needs to attract more inward foreign direct investment (IFDI).

Dr. Toshiya Ozaki's picture

Micro-level Challenges to Abenomics

Dr. Toshiya Ozaki
Posted: Sep 22, 2014

Poor macroeconomic policies over the last two decades have been highlighted as the main cause of Japan’s economic difficulties. Following the bursting of the economic bubble in the early 1990s, Japan failed to act decisively to boost money supply and lower interest rates to prevent the economy from falling into deflation. In a deflationary environment, consumers stopped spending and firms stopped investing which exacerbated deflationary pressures.