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Sunday, October 23, 2005

Japan rise again

At the beginning of October 2005, Asia Wall Street Journal (AWSJ)reported that Japan's investment fund invested aggressively in India. AWSJ, however, view that Japan might be joinning the game when the music is going to stop.

On 14 October 2005, Oriental Daily reported that Japan economy is booming again after 15 years of recession. After Japan Prime Minister win in his recent Parliament election. Japan stock market has increase more than 2,000 point in less than 2 months.

Japan Toyota bring back Lexus brand to it home country after successfully market in North America. Toyota sold 4,600 units of it GS model in less than a month,3.8 times over it target.

Isetan cosmetic counter able to make a lot of sale on male cosmetic. Which is not a necessity for male.

Foreign capital rushing to Japan stock market after recent Prime Minister victory in election. The rise in stock market has increase wealth on people on the street. On 30 September 2005 issue of The Economist magazine. It published an article : The sun eventually rise.

Japan corporate world have wait for government help or bail out after recession. However, after a long period of waiting. They recognized that government ability to give them a helping hand is very slim. Thus, they have to restructure and stand up on their own feet. However, the process take 15 years, that is the period for Japanese to take.

How long Malaysia GLC and bumiputra entrepreneur especially contractor would take?

On 18 October 2005. Oriental daily again reported that Japan consumer have start to spend money. Which create a demand on economic. Japanese confidence is back as they more willing to spend money and not save everything they earn.

Last week, a Singapore base economist published an analysis on The Edge regarding beneficiaries of Japan revive economy and Japan intention to shift it sole reliance on China economy.He view that Singapore is the most beneficiaries country.

Second beneficiaries is Indonesia as a large portion of FDI would flow from Japan to Indonesia as Japan want to shift it focus of FDI from China.

The third is India. Japan investment in India is more on capital market while Indonesia is more on production economy.

If his prediction is correct. Malaysia,being neighbor of the above country, would benefit too.

Japan investment in Indonesia also make a shift from BRIC to IRIC come true.

In Malaysia, the direct beneficiary of revive Japan economy is timber industry.







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2 comments:

Fashionasia said...

hey peter! i didn't know you have this other blog!! how very politic-ky (excuse my lack of vocab) of you!

Peter said...

Hey, this is an economic and finance blog.

In business management or strategic management. People do internal analysis and external analysis.

Internal analsysis is analyse internal strenght and weakeness of a particular company.

External analysis is analyse of external environment usually used PEST analysis.

PEST stand for

P-politic
E-Economic
S-Social
T-Technology

Thus, when doing strategic planning for a company. You have to analyse it politic and social enviornment as well.

That is the reason it involve some politic. However, this is not a polical blog