Japan still attracted by ASEAN<\/p>\n
TOKYO (AFP): Access to local markets was the major driving
\nforce behind Japanese companies relocating to the ASEAN region,
\naccording to the findings of a trade survey released yesterday.<\/p>\n
The Japan External Trade Organization (Jetro) said 34.5
\npercent of Japanese companies replying to its survey, conducted
\nbetween December and January, found sales in local markets more
\nan incentive than exports from those bases.<\/p>\n
The survey covered 977 Japanese-affiliated manufacturers
\noperating in five countries in the Association of Southeast Asian
\nNations (ASEAN). Those countries were Indonesia, Malaysia, the
\nPhilippines, Singapore and Thailand. Not covered were Brunei and
\nVietnam.<\/p>\n
Jetro said that in Malaysia, which has a large number of
\nelectronic and electrical equipment parts makers, the second-most
\ncommon reason -- 24.2 percent of respondents -- for setting up
\nthere was to meet the needs of locally-based Japanese assemblers.<\/p>\n
The survey also found that makers of electronic and electrical
\nparts represented the largest group of Japanese-affiliated
\nmanufacturers, or 24.3 percent. There was a growing number of
\nmetal products makers due to the increased presence of small- and
\nmedium-sized parts manufacturers in the five ASEAN members.<\/p>\n
Indonesia has attracted the largest share, or 31.7 percent, of
\nJapanese-affiliated companies to relocate since the yen's
\nappreciation in 1985.<\/p>\n
Profitable operations were enjoyed by an overall 68 percent of
\naffiliated manufacturers, 71 percent for those operating before
\n1990, Jetro said.<\/p>\n
But local shortages of management-class personnel saw salaries
\nof section managers rise by double digits from the previous year
\nin Malaysia, Singapore and Thailand, while factory workers in
\nThailand and Malaysia saw their salaries rise relatively fast,
\nJetro said.<\/p>\n
Labor problems and rising wages were top of the list of
\nbusiness-related difficulties, except in Indonesia, where the
\nmain problems were considered to be complex administrative
\nprocedures and tariff and customs procedures.<\/p>\n
Firms that planned to shift production bases to third
\ncountries rose from 17.6 percent in the previous survey to 31.0
\npercent. ASEAN scored 49.4 percent as the preferred target,
\nfollowed by China with 25.3 percent, Indochina and Burma with 9.5
\npercent, and India 1.3 percent.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/japan-still-attracted-by-asean-1447893297",
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"sponsor": "Okusi Associates",
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