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Interview with Hiro Yoshihara,Vice-Chairman and Global Managing Partner, Global Markets , KPMG, on the Japanese recovery.
 How much in your view still needs to be done by way of new reforms -- and in what areas – to sustain Japan’s recovery?
Japan has shown impressive recovery over the past five years and the Bank of Japan recently pointed to continued healthy exports and investments, coupled with rising consumption. To sustain the recovery, Japan needs to maintain its focus on the following areas: 1) continuing momentum on achieving a smaller government by privatizing many of the state owned enterprises in addition to the postal and highway road services; 2) clear communication and execution in achieving the sound national budget; 3) aligning budgetary emphasis on sustaining and developing the nation’s competitive advantages in certain industries; 4) stronger education on Japanese traditional values and ethics as well as the necessary technical and technological skills and knowledge for developing a long-lasting leading competitive nation.
Which sectors and technologies are the most innovative in Japan?
| Japanese innovations in electronic components and devices have been a key driver of the consumer electronics industry and innovations in mobile technologies have resulted in the country leading the world in mobile communications. Concurrent innovation and development in engineering and manufacturing technology has provided Japan with a strong leading position in the automotive product sector. Japan is also very innovative in environmental technology. |  |
"Service industries will see significant growth, with manufacturing moving to more developing areas, including Vietnam, Indonesia and the Philippines."
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The World Economic Forum on East Asia is focusing on ‘Creating a New Agenda for Asian Integration’. What is your scenario for the region in 2015?
In 2015, the individual East Asian markets will have strengthened their domestic economies and will be working towards some form of integrated regional structure. International relations will be strong, with inward and outward trade with the United States and the European Union. The diversity of the Asian markets will drive innovation and entrepreneurship in areas of traditional excellence – such as technology and manufacturing – and beyond. Japan, China and India will likely be the region’s powerhouses, with leadership in specific areas such as automotive and electronics in Japan, chemicals in China and pharmaceuticals and IT/Software services in India. Service industries will see significant growth, with manufacturing moving to more developing areas, including Vietnam, Western China, Indonesia and the Philippines. Developing the region’s human capital, particularly in areas such as science and engineering, will be a key focus in academic institutions.
Disclaimer
The views and opinions are those of the author and do not necessarily represent the views and opinions of KPMG. All information provided is of a general nature and is not intended to address the circumstances of any particular individual or entity. |
