JAPAN TODAY



 

Business sentiment among major Japanese companies was positive for the third successive quarter in October to December, led by a continued improvement in automobile-related industries, a government survey showed Monday.

The business sentiment index for companies with capital of ¥1 billion ($6.9 million) or more stood at plus 4.8, against plus 5.8 in the previous quarter, according to the joint survey by the Finance Ministry and the Cabinet Office.

The index represents the proportion of companies that saw their business conditions improve from the previous quarter, minus that of firms feeling the opposite.

The index for large manufacturers came to plus 5.7, marking a positive figure for the second straight quarter. The auto industry's sentiment improved on vehicle production growth thanks to the easing of semiconductor shortages, while metal products makers enjoyed brisk demand from automakers.

The index for large nonmanufacturers stood at plus 4.4, chiefly reflecting an improvement in the services industry, including the restaurant and hotel sectors, which were aided by a recovery in demand from inbound tourists.

The index for midsize companies stood at plus 6.8, and that for small companies at minus 3.7.

The outlook index for all major companies came to plus 3.2 for January to March and plus 1.5 for April to June.

"We will closely monitor developments, including the impact of a downturn in overseas economies and rising prices," a government official said.

The index showing the proportion of companies experiencing labor shortages hit record highs for all major companies and all midsize businesses for the second straight quarter, according to the survey based on data as of Nov. 15.
 
When the media refers to these as kickbacks, it is not as if these people were getting kickbacks for personal use, said Professor Emeritus Ellis Krauss from the School of Global Policy and Strategy at the University of California San Diego.

"These are kickbacks from fundraising events. When politicians exceed the quota they are given to sell tickets to these fundraising events, most of the money is then spent on other political activities, including dinners, including hiring secretaries," the Japanese politics expert told CNA's Asia First on Monday.

"The problem here is that it's not illegal to do this. The problem is that they were not reported. And according to the fundraising law, these have to be reported as kickbacks, and this is why these people are in serious trouble."
 

JAPAN POLITICS LESS CORRUPT NOW

He noted that Japanese politics is "far less corrupt now than it was" in the 1980s or 1990s, but that Japanese voters have high expectations and "do not suffer any form of corruption easily".

Tokyo prosecutors are looking to investigate lawmakers after the current session of parliament ends on Wednesday, local media reported.

Public support for Kishida's government has slid to a record low, partly due to voter worries over rising costs and looming tax hikes.

It is "a little bit of a quandary" as to why Kishida's approval ratings are so low, said Prof Krauss.

"He's done a fabulous job, a very good job on foreign policy and defence. However, he's been a little disappointing on following through on promises on domestic affairs," he said. 

He noted that the Japanese people, like those in advanced economies like Europe, are "in an ugly mood post-COVID", impatient for quick solutions for things like inflated food prices to go back to pre-pandemic levels.