TOKYO (Nikkei)--The government and the ruling Democratic Party of Japan agreed Tuesday night to seek 9.2 trillion yen in temporary tax increases, a significantly lower target than the 11.2 trillion yen initially proposed.
The reconstruction financing plan approved by Prime Minister Yoshihiko Noda and other members of a joint government-DPJ decision-making council sets a figure 2 trillion yen higher for nontax revenue than a previous version, a maneuver that shrank the scale of the tax hike.
Now the DPJ will discuss the details with its coalition partner, the People's New Party, and then with the opposition to hammer out a final plan.
"We're going to make an earnest call for discussion with the opposition, and we hope to reach a conclusion soon," DPJ policy chief Seiji Maehara told reporters after the council meeting.
The government is looking to hand the Diet a 12 trillion yen third supplementary budget and related legislation toward the end of October.
The envisioned budget is roughly 1 trillion yen bigger than originally planned and contains 9.1 trillion yen in reconstruction-related spending.
The government foresees 13 trillion in reconstruction costs in the next five years but needs a total of 16.2 trillion yen once other spending commitments are included.
Tuesday's plan aims for an extra 2 trillion yen in nontax revenue from additional sales of government-owned shares in Japan Tobacco Inc. (2914) and energy-related stocks. This is on top of a previously proposed 5 trillion yen in nontax revenue and spending cuts. Shares in Japan Post Holdings Co. are not part of the proposed asset sales. The remaining 9.2 trillion yen in needed funding would come from temporary tax increases.
Ahead of the council meeting, the DPJ's tax committee put forward its proposals for raising taxes. This package includes a 10-year income tax hike taking effect in January 2013 and a three-year corporate surtax starting next April. Higher individual residency taxes would last five years from June 2014, one year later than in an earlier proposal. Taxes on cigarettes would go up 40 yen a pack from October 2012.
These details could change depending on how nontax revenue and talks with the opposition pan out. The immediate funding for post-disaster reconstruction will come from specially issued bonds managed separately from other government debt. The temporary tax hikes and other revenue-raising proposals are for repaying these bonds.
The DPJ's basic position is that the reconstruction bonds should be paid back in 10 years, Maehara said. He added that he has a mandate to discuss this with the opposition, suggesting that a longer repayment period could emerge from the negotiations.
The Liberal Democratic Party is wary of the tax hike plan in general and particularly the proposal for a higher tobacco tax. Fellow opposition party New Komeito, meanwhile, is amenable to raising taxes for the reconstruction but wants to keep the increases small.
(The Nikkei Sept. 28 morning edition)
Tomoki Matsubara / Yomiuri Shimbun Staff Writer
More than 80 percent of companies are concerned about the continued appreciation of the yen, a recent survey by The Yomiuri Shimbun has found.
If the yen continues rising, domestic firms may accelerate their corporate restructuring at home and their shift of production bases overseas, further eroding the foundations of domestic industry. Many of the firms surveyed called on the government to cut the effective corporate tax rate, and on the Bank of Japan to conduct further yen-selling market intervention.
Of the 118 companies surveyed by questionnaire, 47 said their business conditions were stagnant and six firms said they were slowly deteriorating. The most commonly cited reason--given by 49 companies--was sluggish exports due to the rapid appreciation of the yen.
On Wednesday, the yen temporarily hit a postwar high of 76.11 yen to the dollar on the Tokyo exchange market. The yen has also risen against the euro, straining the earnings of home appliance makers and other firms that export heavily to eurozone countries.
Asked how much their business performance was being harmed by the present strength of the yen, 30 firms said "greatly" and 41 said "to some extent." Only 22 said there was "no impact." Just five firms said the yen's rise had been beneficial, facilitating imports for example.
Even import-oriented firms have suffered from the yen's rapid appreciation, with a food manufacturer saying it will slow down the domestic economy, thus affecting the manufacturer's business performance.
JR Tokai, a domestic demand-oriented firm, said the yen's continued rise will strain earnings of export-oriented firms and lead to a hollowing-out of the manufacturing industry. This would slow down the overall economy, JR Tokai said, thus indirectly harming its own business performance. Ideal and reality
The yen is currently far stronger than many firms would like, the survey showed. Asked the desirable range of the yen against the dollar, 24 firms said "in the 90-94 yen range," 18 said "in the 85-89 yen range," and 14 firms "in the 80-84 yen range."
However, 60 firms said they expected the yen to be "in the 75-79 yen range" at the end of December. Pollees expected the yen's appreciation to continue for some time amid concern about the slowdown in the U.S. and European economies, and no firms expected the yen to drop to the "90-94 yen range" at the end of December.
Asked how they were dealing with the yen's rise, 57 companies named "cost-cutting efforts at home," while 46 firms said they were "expanding the procurement of parts and materials from abroad."
If the current strength of the yen continues, an electrical appliance maker said it would "expand production in such emerging economies as China," while Mitsubishi Chemical Holdings Corp. said it would "scale down or pull out of businesses that are not internationally competitive."
Regarding the measures they wanted taken by the Bank of Japan, 47 companies wanted the central bank to continue yen-selling market intervention or to heighten such efforts.
Forty-one firms said they wanted further relaxation of monetary policy.
Asked what should be done to stem the hollowing-out of industries, many firms called on the government to draw up and implement mid- and long-term strategies.
Specifically, 69 companies wanted the government to cut the effective corporate tax rate, while 57 firms wanted the promotion of free trade, such as through Japan's participation in the Trans-Pacific Partnership trade agreement.
Meanwhile, 38 companies said the government should review and carry out its new growth strategies, and 28 firms said they wanted the government to help firms keep bases for production and research in Japan.
The firms could choose from multiple answers to the survey questions.
(Yomiuri Shimbun Sep. 23, 2011)
TOKYO (Nikkei)--The business sentiment diffusion index showed double-digit improvements in the Tohoku and Tokai regions in September, the Bank of Japan's quarterly tankan survey, which was released Monday, shows.
Excluding the Kanto-Koshinetsu region, the data for which has yet to be published, all eight regions recorded improvements in their overall business sentiment DIs.
The DI is calculated by subtracting the percentage of companies reporting bad business conditions from the figure for companies with the opposite view.
In the northeast Tohoku region, which was hit the hardest by the March 11 disaster, the DI rose 17 points from the previous survey in June, with only the forestry and wood products industries showing weaker figures.
Reconstruction activity has boosted business sentiment in the disaster-stricken Tohoku region. "In addition to construction-related special demand for removing debris and restoring damaged plants in disaster areas, consumer spending is rising as more people regain a sense of normalcy," said Kazuo Fukuda, general manager of the Bank of Japan's Sendai branch.
The future business sentiment DI, which shows companies' expectations over the next three months, came in at minus 8 for the Tohoku region, a 4-point decline.
But the BOJ Sendai branch is more optimistic.
"Companies tend to view the business outlook cautiously," a branch official said. "The concern for the situation deteriorating is not so big."
Businesses in the Tohoku region are seen benefiting from more traffic at the region's hotels and restaurants as firms send workers to the disaster zone to help out at local offices and work sites. In the Tokai region, the DI also recorded a double-digit improvement, by 22 points to minus 4, thanks to a better than expected recovery in supply chains.
The solid results were driven by an 83-point jump in the DI for the auto industry. This dramatic improvement, in turn, helped lift related industries' DIs significantly. The DI for the steel industry shot up 62 points, followed by 40 points for the metal products industry and 38 points for nonferrous metals.
Meanwhile, the DI in the Kinki region climbed just 5 points. The recovery in the region's mainstay electrical machinery industry has been slow. The DI for that industry improved 4 points to minus 1, with the three-month outlook showing a sharp deterioration to minus 15.
This appears to show that industries susceptible to the ups and downs of the global economy have already begun taking into account the possibility of a slowdown in the European and U.S.
economies.
Even in the Tokai region, the future DI shows an 8-point drop for the production machinery industry and a 5-point decline for the electrical machinery industry.
The stubborn strength of the yen also raises concerns about exporters.
"Improvements will continue in the Tohoku region due to reconstruction demand, but downward pressure may strengthen in regions vulnerable to the impact from export-driven industries," Yoko Takeda, senior economist at the Mitsubishi Research Institute (3636), warns.
(The Nikkei Oct. 4 morning edition)
TOKYO (Nikkei)--Major convenience store operators are increasing their earnings by catering to consumers looking for prepared meals to eat at home.
FamilyMart Co. (8028) on Wednesday upgraded its group earnings forecast for the year ending in February 2012. The firm now expects operating profit to rise 10% to 42.1 billion yen, an upswing of 3.6 billion yen from its initial target, and sees sales increasing 2% to 325 billion yen instead of a previously projected decline.
Relatively pricey items with high margins, such as 680 yen sushi, are selling well. The sushi meal, introduced in June, is targeted at customers in their 50s and 60s. And starting this fall, the chain will add more low-calorie, lightly seasoned Japanese-style boxed meals.
Gross margins on food and sundries, excluding tobacco, will likely improve 0.4 point on the year to 28.7% for fiscal 2011.
Seven & i Holdings Co. (3382) upgraded its fiscal 2011 earnings forecast earlier this month. Its convenience store unit, Seven-Eleven Japan Co., is driving the group's profit growth. The chain began revamping more than 1,000 privately labeled offerings at the end of May, introducing pork cutlets and grilled fish take-out meals for elderly customers as well as families in which both the husband and wife work.
After the March earthquake, toilet paper, detergents and other daily goods have been selling well. "Consumers are happy that they can get low-priced goods at nearby convenience stores," says a Seven & i official.
Lawson Inc. (2651) has not changed its full-year projection but appears to be in store for an upgrade. The firm says it has improved the quality of prepared food and desserts by using better ingredients and has lowered costs through direct purchasing.
"We offer high-quality products at reasonable prices," says President Takeshi Niinami. The chain has begun buying salmon fillets for rice balls from Chile and raw cream for roll cakes from Hokkaido.
(The Nikkei Sept. 29 morning edition)
TOKYO (Nikkei)--Pharmaceutical companies are planning to introduce nonprescription drugs using European herbs, aiming to tap demand for remedies to treat or prevent minor ailments.
European herbal treatments, including red grape leaves, peppermint and ginkgo leaves, are believed to have medicinal effects akin to those found in traditional Chinese medicine. Drugs using such
herbal extracts are popular in Europe and often approved for use by medical authorities. In Europe, the market for herbal medicines is estimated to be worth the equivalent of around 600 billion yen. In Japan, European herbal treatments have not been used commercially due to a lack of regulatory approval. In 2007, the Health and Welfare Ministry released guidelines on the use of European herbal medicine, opening the way for their use as over-the-counter drugs. Drugmakers can use herbal ingredients approved overseas if they provide documentation on clinical testing and the compounds in the plants.
Nippon Boehringer Ingelheim Co. plans to release an herbal remedy in fiscal 2012 that uses an extract from dried red grapes leaves to reduce swelling and heaviness in the legs caused by a minor circulatory disorder.
Zeria Pharmaceutical Co. (4559) has begun testing peppermint oil, which is sold in Europe to treat the symptoms of irritable bowel syndrome such as stomach pain, diarrhea and constipation. The firm uses a product called "Colpermin," which its European subsidiary has sold on the continent for more than 10 years.
Taisho Pharmaceutical Co. is also developing drugs using European-style herbal ingredients.
(The Nikkei Sept. 30 evening edition)
TOKYO (Nikkei)--Amid Japan's ongoing debate over whether to join the Trans-Pacific Partnership, the Ministry of Agriculture has hammered out a policy to achieve a tenfold increase in the average amount of land worked per farming household over the next five years.
With the practice of offering subsidies to small farmers reaching its limits, there is no question that expanding farm operations is essential. But the government seems rudderless when it comes to how to achieve this.
In August, the government issued a report that laid out its plan to consolidate farmland into parcels of 20-30 hectares in flat areas and in parcels of 10-20 hectares in hilly and mountainous areas. As in France, where most farmers preside over 50 hectares each, there are some large-scale farmers in Hokkaido. However, most Japanese farming operations are small, covering less than 1 hectare of land.
Plagued by inefficiency
Japan has 440,000 full-time farming households, far fewer than the 1.13 million part-time operations. Per capita agricultural production -- the overall value of agricultural production divided by the farming population -- is about 75,000 dollars (5.8 million yen) for France and 36,000 dollars for Germany. For Japan, the figure stands at merely 16,000 dollars.
In February, a World Trade Organization report described Japan's agricultural sector as having very low productivity. For Japanese farmers, increasing productivity is a prerequisite for dealing with trade liberalization, including Japan's participation in the TPP, and competition from low-price agricultural imports from overseas.
The Agriculture Ministry has included two policy measures in its budgetary request for 2012. The first one, totaling 15 billion yen, aims at giving more subsidies to farmers who expand their farmland. The second one would provide a total of 6.6 billion yen for farmers who give up their land to agricultural corporations.
Subsidy dilemma
At the same time, the ministry has earmarked in its budget request about 800 billion yen for the farmers' income compensation system, which gives subsidies to all farmers. That is the same amount as set aside for 2011.
Observers say many people continue farming merely so they can receive the subsidy.
"What the government is doing is like hitting the gas pedal and the brake at the same time," said Kazunuki Ohizumi, vice president of Miyagi University.
The ruling Democratic Party of Japan and the opposition Liberal Democratic Party and New Komeito agreed in August to review the subsidy system. But farmers form a large voting bloc for both the DPJ and the LDP, which explains why the parties have not clearly explained their stances on the matter.
Roughly 400,000 hectares of farmland, or nearly 10% of the country's total farmland, has been essentially abandoned by aging farmers. Creating a system for recycling that idle farmland through trading and leasing is therefore a matter of great urgency for Japan. The Farm Ministry had been considering introducing a nationwide system for trading farmland, but nothing has come of the idea yet.
Barriers to change
Agricultural committees, which are made up of local farmers, tend to get in the way of farmland reform efforts. The Agricultural Land Act requires that the trading or leasing of farmland be reviewed by local agricultural committees, of which there are more than 1,700. More entrants to the farming sector could erode the influence of these committees.
The government revised the act in 2009, easing regulations on leasing farmland to businesses. Still, only 527 companies have so far entered the agricultural sector after the revision. That is less than 1% of the nation's farmers as a whole.
Preferential tax treatment is another reason why unprofitable farmers stay in the business. When the children of farmers inherit farmland with the intention of continuing the operations, they are virtually exempt from inheritance and gift taxes.
Critics say this tax exemption system needs to be overhauled, but the Farm Ministry has so far made no moves to revise it.
-- Translated from an article by Nikkei staff writer Junichi Sugihara
(The Nikkei Oct. 3 morning edition)
TOKYO (Nikkei)--The government will start fighting hackers by sharing information on cyberattacks with private companies from fiscal 2012.
The government has been hesitant to collect such data from private companies because they are not required by law to report such information to the government. However, the authorities have decided to adopt measures to deal with cyberattacks, as Mitsubishi Heavy Industries Ltd. (7011) and IHI Corp. (7013) were recently targeted by hackers. The government will work with other countries to combat cyberterrorism by signing treaties on Internet crime.
It is important to share information such as e-mails connected to cyberattacks to prevent the recurrence of similar crimes. But officials say the government will find it extremely difficult to require private companies to report attacks, except when personal information is leaked.
The government therefore plans to ask private companies to sign confidentiality agreements with public bodies such as the Information-Technology Promotion Agency rather than passing a new law. The government will share information on cyberattacks with private companies through public institutions and ensure that firms that have been hit by virus attacks will not be identified.
If companies are hit by hackers from foreign countries, the government will use the Information-Technology Promotion Agency to ask public organizations in those nations to shut down any problematic Web sites.
The government recently created a basic framework to fight cyberterrorism with NTT Data Corp. (9613), NEC Corp. (6701), Fujitsu Ltd. (6702) and Little eArth Corp. (LAC), a major information security firm, which will serve as the head office for the initiative. The government will work out the guidelines for the plan by next March.
(The Nikkei Oct. 2 edition)
FUKUSHIMA (Kyodo)--A Hawaiian-style spa leisure complex in Iwaki, Fukushima Prefecture partly reopened Saturday after suspending business for nearly seven months following the massive earthquake in March, welcoming back its popular hula dancers.
Hula Girls greeted guests Saturday at the Spa Resort Hawaiians in Iwaki, Fukushima Prifecture.
As Spa Resort Hawaiians opened its door, four members of the Hula Girls, a team of hula dancers at the leisure complex, greeted guests.
It reopened most of its facilities, comprising spa and pool theme park, restaurants and hotels, and resumed free bus rides to and from Tokyo, according to its operator Joban Kosan Co.
About 70 percent of the reopened hotel rooms have been booked for stays on Saturday, it said. The 28 dancers for the facility's hula performance, which was featured in the 2006 movie "Hula Girls," have come back after performing at shelters for quake evacuees and touring across Japan from May 3. The dancers are expected to begin their "Polynesian Show" from Saturday night. The dancers performed at 125 locations including evacuation shelters and stages in Japan during the tour, which also took them to South Korea. It was the troupe's first nationwide tour in 46 years since a trip around the country to promote the park after its opening in 1966.
The Japan Tourism Agency earlier this week gave this year's award for promoting tourism in Japan to the dance team, along with pop singer Lady Gaga who visited Japan in June for charity events. The operator said it will halve the entrance fees until it fully reopens in January, while children of elementary school age or younger can enter the resort for free until Oct. 31.
The facility, located around 50 kilometers south of the crippled Fukushima Daiichi power plant, boasted about 1.4 million visitors a year before the disaster, many from China and South Korea, a company official said.
(The Nikkei October 1, 2011 edition)
HANOI (Nikkei)--Vietnam will focus more on particular industries to boost its economy, a departure from its long-standing effort to foster a broad range of industries at the same time.
The Japanese government is expected to help the Southeast Asian country with its medium-term plan. The new policy is likely to be discussed at a Japan-Vietnam summit that may happen next month. The effort will concentrate on specific industries from among a dozen or so candidates, such as consumer electronics, resources and energy, food processing, and shipbuilding. If consumer electronics are selected, foreign firms already operating in Vietnam, including Canon Inc. (7751) and Panasonic Corp. (6752), may invest more in the country and prompt suppliers and other firms to jump in.
Hanoi also plans to try to attract more foreign firms by offering greater incentives, which could lower their investment risk.
(The Nikkei Sept. 28 evening edition)
SINGAPORE (Nikkei)--Singaporean Prime Minister Lee Hsien Loong said Friday that the euro zone debt crisis may have a negative impact on his country and other Asian economies. In a written interview with The Nikkei, Lee also called on Japan to join the Trans-Pacific Partnership regional free trade talks at an early date.
Excerpts from the interview follow.
Lee Hsien Loong
Q: Just three years have passed since the Lehman shock, and the world economy is being suffocated by another crisis. In your view, how serious is the situation? Do you think the crisis could have a serious impact on the Asian economy, including Singapore's?
A: The euro zone crisis will certainly affect Asia and Singapore. The EU as a bloc is the world's largest economy and trading entity. In 2010, the EU was the top investor in, and second largest trading partner for, Singapore.
In the short term, European governments have to restore confidence and prevent contagion from Greece to larger European nations such as Italy and Spain. In the longer-term, they have to review their spending, especially on social welfare programmes, and implement structural reforms to promote economic growth, including restoring competitiveness and promoting innovation and enterprise.
Fundamentally, European countries need to agree on the extent of integration they want in the future, be it a fiscal union, strengthening institutions such as the ECB or mechanisms such as the EFSF.
However, given their diverse economic structures, societal values and political identities, it will not be easy to reach a consensus quickly.
Q: The sovereign debt issue is not only a European problem. The unprecedented credit downgrade showed the severity of the U.S. situation, while Japan's credit issue is long-standing. Singapore, on the other hand, is the only country in Asia that enjoys a AAA sovereign rating. How has the government managed to maintain its fiscal soundness?
A: We are guided by two main principles: First is fiscal discipline and prudence. The Constitution requires that each government balance its budget within its term of office. We keep the government small and spend only what we can afford. We have zero net borrowing. At the end of each term, any surpluses accumulated are locked away as reserves to be invested for rainy days. Second, we strive for long-term economic growth. We keep our taxes low, to attract investments and talent, and to encourage enterprise and work. We invest heavily in educating and training our people, so that they will be able to get good jobs and earn higher incomes. We have built up modern infrastructure, e.g., fast and reliable telecommunications networks, efficient air and sea ports, and created a vibrant business environment. We are putting in very significant resources to improve productivity, and promote innovation, research and development. These are the preconditions for growth, which will then provide us with the resources to improve our lives.
Q: The bilateral relationship between Singapore and Malaysia has improved dramatically in recent years. The countries are seen as being able to form a strong pairing if their leaders can overcome past conflicts and successfully deepen cooperation. What advantages will Singapore be able to enjoy by strengthening its ties with Malaysia?
A: Singapore and Malaysia are economically interdependent and have much to gain from each other's growth. Both countries have traditionally been key sources of trade, investment and tourism for each other. The recent resolution of some long-standing bilateral issues has paved the way for us to explore even more areas of cooperation. To this end, we are looking into several joint initiatives to improve connectivity, boost tourism and improve our shared environment. By deepening our bilateral cooperation, businesses will be better able to draw on our mutual complementarities to enhance their competitiveness.
Q: Some Japanese companies are expressing concern about how open Singapore will remain, in light of a series of policy changes on immigration and foreign labor. What are your views on this matter?
A: Singapore will continue to be an international hub, open to global investments and talent. This has underpinned our success, and we will continue with this policy. In particular, Singapore will continue to welcome Japanese companies and investments, with which we have long-standing business ties. The Japanese expatriate community in Singapore is one of the largest expatriate communities here. We look forward to enhancing our business relationship in the future.
Q: The People's Action Party has led the nation to its current economic success in its relatively short history. Many countries, including Japan, are closely watching what new directions the PAP is taking.
A: The PAP has managed to secure the support of Singaporeans in the past half a century by keeping the party vibrant, young and in sync with the times. Our system of leadership self-renewal is unique. At each election, we have systematically inducted new leaders who are promising, to prove themselves with the electorate. For example, in the recent general election in May, we fielded 24 new candidates which represented more than one-quarter of all the PAP MPs. Our persistent quest for talent and self-renewal has enabled the party to produce fresh ideas and solutions year after year, and ensure the success of Singapore.
The PAP has also pursued policies which benefitted Singaporeans, and gave all citizens a stake in the country. We implemented home ownership programmes, built good education and health care systems, and fostered social cohesion and racial harmony. Economic growth created jobs and raised incomes for everybody. It has always been PAP's mission to co-opt all citizens who are committed to serve the country and to make the country better so as to form a broad national movement. Looking ahead, we will continue to meet the challenges head-on and will not flinch from necessary reforms and hard decisions. More specifically, we will work hard to ensure a diverse and innovative economy, so as to enhance our international competitiveness and create fulfilling jobs and opportunities for Singaporeans. We want to improve our education system, raise our productivity and invest in R&D. Our aim is to sustain a steady and inclusive economic growth, to ensure that all citizens continue to benefit from the nation's progress.
Q: In what areas can Singapore and Japan cooperate in the future to further strengthen their ties? In view of China's advance and Japan's decline, one of the concerns is that Singapore may be focusing more on strengthening relations with China.
A: Singapore and Japan have developed a close and long-standing relationship. It is underpinned by a common strategic outlook and mutual economic interests. We should not overlook the past, but must also look ahead to work together to secure and improve the livelihoods of our people. Bilaterally, Singapore and Japan cooperate closely in many fields - politically, economically and in areas such as defence and anti-piracy efforts. We jointly provide technical assistance to developing countries under the Japan-Singapore Partnership Programme for the 21st Century (JSPP21). We support each other in international fora. Our cooperation extends to the cultural domain through the Japan Creative Centre in Singapore. We should keep up the momentum in our relations and continue to explore new areas for cooperation.
Japan and Singapore can also work together, and with other countries including China, to strengthen the existing regional architecture, whether it is through the ASEAN Connectivity Initiative, the ASEAN+6 FTA (the Comprehensive Economic Partnership for East Asia or CEPEA) or the Trans-Pacific Partnership (TPP) which we hope Japan will join in the near future. As countries become more inter-connected and inter-dependent, building a strong and integrated community will be vital to maintain peace and stability in the region.
While no country can ignore China's growing influence, there is no question that Japan remains an economic powerhouse and a key strategic player in the region. Japan has a strong track record in science, technology and innovation. It is a world leader in areas including green technologies, robotics and aeronautics. Japan should leverage on its many strengths to play a more active role in the region and the world.
Q: How would you rate the progress of Japan's rebuilding efforts six months after the disaster?
A: Prime Minister Noda has placed the recovery and reconstruction efforts in the Tohoku region high on his agenda. I believe that the Japanese officials are doing their best to master a very complex and trying situation.
Singapore will help wherever we can. We are funding the construction of a multi-purpose community hall in Rikuzentakata City and a temporary care centre for the elderly in Miyako City. The needs are immense and will likely remain so for some time. But we hope that our modest contribution will be of some help.
The Japanese people have many friends in Singapore, and around the world, who stand shoulder to shoulder with you as Japan tackles this crisis. We greatly admire the grace and dignity displayed by the Japanese people under severe duress. We have full faith in Japan's ability to overcome this crisis and emerge stronger than before.
(The Nikkei Oct. 1 morning edition)
JAKARTA (Nikkei)--Thirteen Asian countries plan to stockpile a total of about 800,000 tons of rice annually from next year at the earliest, The Nikkei has learned.
Agriculture ministers from ASEAN Plus Three (Association of Southeast Asian Nations, Japan, China and South Korea) are set to meet in Jakarta on Friday to sign an agreement to establish a system that will allow them to provide food aid swiftly to member countries struck by major natural disasters.
According to Indonesia's Agriculture Ministry, the ASEAN Plus Three Emergency Rice Reserve (APTERR) program will require Japan, China and South Korea to each prepare 150,000 tons to 300,000 tons of rice reserves, with ASEAN countries stockpiling a total of 80,000 tons to 100,000 tons.
Representatives of the 13 countries will meet to determine rice supplies if a powerful earthquake, tsunami or volcanic eruption hits a country in the region, making food assistance necessary. Each member state will then send its quota of rice to the country requiring aid.
Japan, China and South Korea and ASEAN conducted a trial rice reserve system from 2004 through 2010. Japan sent rice to countries such as the Philippines and Cambodia.
After the March 11 disaster, Indonesia (which currently holds the ASEAN presidency) and other countries where large earthquakes and tsunami could strike called for the swift creation of the rice reserve system.
(The Nikkei Oct. 3 evening edition)
The Office of Commercial Affairs, Royal Thai Embassy in Tokyo, Japan
Source : http://www.depthai.go.th