Page 32 - FDMAsia JulAug 2024

30 FOCUS JUL/AUG 2024 FDM ASIA | www.fdmasia.com

PICRYL Encouraging corporate investment in emerging economies
The government is encouraging corporate investment in
emerging and developing countries by providing guarantees
through the Japan International Cooperation Agency (JICA).

Guaranteeing loans is not currently among the aims and
law governing JICA.
The aim of the government is to set up a mechanism
that enables JICA to compensate for losses. The government
seeks to deepen relations with those economies by building
a support system with the private sector.
Foreign Minister Yoko Kamikawa said that she would
work with government ministries and agencies to revamp
ODA with an eye on amending the JICA law.

The index for large non-manufacturing companies stood A panel presented suggestions to the minister on the
at 33 points, down two points compared to the first quarter best ways to combine public and private funds.
of 2024 and for the first time in 16 quarters, but still close
to the maximum values since the bursting of the economic Consumer confidence up slightly in June
bubble in the nineties. The seasonally adjusted Consumer Confidence Index was up
In related news, the total value of machinery orders received slightly in June according to the Cabinet Office. The income
by 280 manufacturers operating in Japan increased by 12 growth indicator rose while the overall livelihood index declined,

percent in March from the previous month on a seasonally and the employment index dipped month on month.
adjusted basis. In the January-March period it increased by The willingness to buy durable goods index hovers at a
6.3 percent compared with the previous quarter. multi-month low.
In the April-June period machinery orders were forecast to The percentage of respondents who expect prices to
decrease by 0.1 percent and private-sector orders, excluding increase over the next year was 94 percent, up from May,
volatile ones, were forecast to fall by 1.6 percent from the while three percent of those surveyed see them unchanged
previous quarter. and the balance expect prices to fall.

Weak yen a big problem for SMEs CHINA

A recent survey by the Japan Chamber of Commerce and New formaldehyde emission standard for wood-based
Industry (JCCI) showed the yen’s dramatic decline has become a panels
serious problem for Japan’s small and medium size businesses A revised "Interior decoration materials wood-based panel
as they experience surging raw material and energy prices. and products formaldehyde emission limit" has been drafted.
According to the survey of 2,008 small enterprises, The revision of the national mandatory standard for
around half of the respondents said that the weakness of the the industry will usher in a new round of industrial quality
Japanese currency was a big problem for their operations. improvements.

Only two percent in the latest survey said that the The revised national standard will introduce formaldehyde
weakening of the yen positive for their business. emission E0 level for the first time.