Japan to unveil new reforms to boost economy

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Japanese Prime Minister Shinzo Abe is expected on Tuesday to unveil a fresh round of reforms to boost a nascent growth recovery, reports said, his second attempt at launching the “third arrow” of his economic action plan.

In a package that has already been heavily trailed, he will promise to slash Japan’s corporate tax rate — one of the world’s highest — and tackle other sectors long protected by government help, according to local media.
The prime minister and his economic and financial ministers are expected to formally adopt the plans before an official announcement is made in the afternoon.

Company taxes, including a rate of 35.6 per cent in Tokyo, are the second-highest in the Organisation for Economic Cooperation and Development (OECD) behind the United States, a factor some critics say is holding back the economy.

Abe is facing calls to make good on the final tranche of his growth action plan, dubbed “Abenomics”, which started in early 2013 with a huge public spending spree and an unprecedented monetary easing campaign by the Bank of Japan.

That gave the economy a shot in the arm and set off a stock market rally as firms’ profitability grew on the back of a sharply weaker yen.

But there are growing complaints that as the sugar rush of cheap money wears off, the lack of real structural reform could prove problematic block for an economy that has stumbled through more than two decades of disappointment.

Local reports say the package to be announced later in the day will include deregulation of sectors including medicare and agriculture, which are both heavily protected at present.

There will also be proposals to revise an out-dated law prohibiting dancing after midnight, Japan’s public broadcaster NHK said.

Abe’s much-touted first attempt at a package of structural reforms fell flat last summer, with critics saying they were too timid at taking on Japan’s many vested interests.

This year, the premier also faces a delicate balancing act as ordinary citizens struggle with lacklustre wage growth and rising prices for everyday goods — the result of Tokyo’s bid to stoke long-absent inflation as well as April’s consumption tax hike to 8.0 per cent from 5.0 per cent.

 

 

 

 

 

Source : Channel News Asia | June 24, 2014

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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