SUGGESTION TO THE PRIME MINISTER OF JAPAN NAOTO KAN

SUGGESTION TO THE PRIME MINISTER OF JAPAN NAOTO KAN

To: The Right Honorable Prime Minister Naoto KAN

From: Athinarayanan Sanjeevraja

RE: Japan Manufacturing Issues (Industrial Policy)

Suggestions:

Good Morning Prime Minister. I am writing to express that Japan should maintain sizeable manufacturing capacity. I don’t believe that Japanese manufacturing will ever disappear from Japan. Japan has an excellent workforce and business environment for the companies. Japanese manufactures deliver both quality and service. I fact I love Japanese appliances. BBC world reported that Japanese manufacturing is deteriorating. If I am not mistaken ship building, electronics/electrical and automobiles are the three pillars of Japan industry. Already ship building industry gone. Japan’s accounts only about 5% of world’s ship building. Electronics industry is having a tipping point. The most of the Japanese electronic market is gone due to the emergence of digital technology. For instance, Sony no longer makes TV. Toshiba no longer make display panels. Auto industry is also surrounded in many rivals. US automakers are coming back. Germans are coming down to to erode Japanese market. Look at VW Golf. Koreans and Chinese are also moving up to take away market from Japanese makers. Competition is heating up around the world. Please don’t make stopping goods. Japanese don’t depend too much on exports because exports accounts only fore less than 15% GDP compared to 40 plus for Germans and Koreans. Domestic economy is driving Japanese growth.

Let me conclude it Prime Minister, Japan has a solid manufacturing, substantial domestic market, innovative culture and the government bonds are consumed 96% domestically. I would recommend Japanese government should encourage manufacturing sector for the growth of the country. Japanese manufacturers should not stop manufacturing goods for the taste of global consumers. In addition, Japanese government just needs to increase spending and drive towards mild inflation.

Thank you very much for your kind attention to this issue Prime Minister.

Sincerely,

Athinarayanan Sanjeevraja

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