ACCJ Journal May 2009 by Paradigm

¥800 | May 2009

Journal

ACCJ Events ■ Food Safety ■ Jesper Koll ■ ACCJ Advocacy ■

ENTREPRENEURS ROUNDTABLE Three ACCJ business minds on making a successful SME. SPECIAL ADVERTISING SECTIONS

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ACCJ Mission Further the development of commerce between the United States of America and Japan, promote the interests of U.S. companies and members, and improve the international business environment in Japan.

CONTENTS

Volume 46 | Issue 5 | May 2009

FEATURES COVER STORY 14

Entrepreneurs Roundtable ACCJ members discuss how friendly Japan is to entrepreneurs. Moderated by Geoff Botting 起業に関する円卓会議日本の起業環境についてACCJ会員企業が議論。司会／ジェフ・ボッティング

ACCJ Event Strengths-based Leadership: Great Leaders, Teams, and Why People Follow. By Justin McCurry ACCJイベント強みを生かしたリーダーシップ：優れたリーダー、優れたチーム、部下が自ずとついて来る理由とは。文／ジャスティン・マカリー

Food: Safety First With strict safety laws and a growing organic market here, U.S. food importers are working hard to satisfy consumers and regulators. By Tony McNicol 食品：問われる食の安全食品安全法が厳格で、オーガニック食品市場が拡大している日本で、米国産食品輸入業者は消費者ニーズと規制当局への対応に懸命だ。文／トニー・マクニコル

ACCJ Event What Really Happens in Coaching: Executives Tell All. By Justin McCurry ACCJイベントエグゼクティブ・コーチング最新事情：その後のエグゼクティブを見れば一目瞭然。文／ジャスティン・マカリー

May 2009 | The Journal | 1

CONTENTS

Volume 46 | Issue 5 | May 2009

26 45

DEPARTMENTS 9

Note from the Editor

Reader Reaction. By Julian Ryall

President’s Message

Media Watch Sports sponsorship hit. Image salons. Hotels discount. Habits at home survey. Big-ticket spenders. Prolific inventors.

On the Spot Renowned Japan strategist and business author Jesper Koll, President and CEO of Tantallon Research Japan, is interviewed by Julian Ryall.

Opinion Leader Seiko Noda is Food Safety Minister of Consumer Affairs, Minister of State for Science and Technology Policy, and Minister of Space Policy. オピニオンリーダー「野田聖子氏内閣府特命担当大臣（科学技術政策・食品安全）、消費者行政推進担当大臣、宇宙開発担当大臣

Events Line-up ACCJ Chubu Walkathon and other business and leisure-related happenings in May. By David Umeda

Out and About Speakers, members and guests photographed at recent ACCJ events.

FDI Portfolio Organic goods. Gift service. Airline-cuisine tie-up. Aircon deal. Luxury keitai. Hotel purchase. By Nicole Fall

Business Profile Rick Weisburd operates an SME specializing in scientific editing and translating. By Tony McNicol

Behind the Book The Return of Depression Economics and the Crisis of 2008 by Paul Krugman is reviewed by Tom Baker.

Advocacy Update ACCJ Viewpoints

In the Final Analysis By Samuel H. Kidder, ACCJ Executive Director

2 | The Journal | May 2009

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ACCJ Leaders President Thomas W. Whitson KPMG FAS Co., Ltd. Chairman Allan D. Smith AIG Companies, Japan and Korea Vice Presidents Michael J. Alfant Fusion Systems Japan Co., Ltd. Laurence W. Bates General Electric Japan, Ltd. William R. Bishop, Jr. Nippon Becton Dickinson Co., Ltd. Michael D. Bobrove (Kansai) Nihon Medrad K.K. Kumi Sato Cosmo Public Relations Corporation Mark F. Schwab United Airlines, Inc. Chris Zarodkiewicz (Chubu) Cezars International K.K. Treasurer Nasir Majid PricewaterhouseCoopers Brett Jensen (Kansai) Colliers Hallifax Steve Burson (Chubu) H&R Consultants ACCJ Governors Andrew Conrad Aflac International, Inc. Christopher K. Ellis Chrysler Japan Company, Ltd. Bruce J. Ellsworth Johnson & Johnson Family of Companies James Foster Microsoft Japan Harry Hill (Chubu) Oak Lawn Marketing, Inc. Tad Johnson Pratt & Whitney Aftermarket Japan KK John Kakinuki GE Consumer Finance Co., Ltd. Jiri Mestecky Kitahama Partners L.P.C. Patricia Oâ&#x20AC;&#x2122;Keefe USC International Offices-Tokyo Douglas L. Peterson Nikko Citi Holdings Inc. Nicole W. Piasecki Boeing Japan Jay Ponazecki Morrison & Forester LLP Mitsuyo Teramura Federal Express Corporation Jim Weisser PBXL ACCJ Executive Staff Samuel H. Kidder Executive Director Aron Kremer Deputy Executive Director ACCJ Committees American Auto Industry Rick Brown Architecture, Construction & Real Estate Kevyn Johnson/Michael P. King Asia Business Philip C. Jones B2B Sales Karl Hahne/Craig Saphin Banking and Finance Thomas Clark/Ernfred Olsen Capital Markets Douglas Hymas Charity Ball Barbara Hancock Competition Policy Task Force Robert Grondine Corporate Social Responsibility Patricia Bader-Johnston Direct Marketing Joseph Peters Environmental Naoki Arai Financial Services Forum Charles D. Lake II Food and Agriculture Collin Benson Foreign Direct Investment Nicholas Benes Government Relations Ira Wolf Healthcare Steve Plunkett Human Resource Management Chris Lamatsch, Adam Kassab Independent Business Doug Jackson Information, Communications & Technology Darren McKellin, Ann Rollins Insurance Nate Graddy/Jonathan Malamud Intellectual Property David Case International Education Patrick Newell Internet Economy Task Force Yoshitaka Sugihara Investment Management David Monroe Legal Services Arshad Karim/Eric Sedlak Corporate Counsel Clair Chino Marketing Programs Dominic Carter/Koichi Hama Membership Relations Andrew Silberman Privatization Task Force David Hoover Retail TBA Soft Landing Task Force Adam Kassab/Mariko Nakazono Special Events Barry Bergmann Young Professionals Group John Ghanotakis/Daniel Lintz Taxation Jack Bird/Michael Shikuma Toiletries, Cosmetics & Fragrances Yukiko Tsujimoto Transportation and Logistics Jeff Bernier/Jeremy Goldstrich Travel Industry Kayoko Inoue/Vincent You University Briefing Program Richard May/David Satterwhite Kansai Chapter Business Programs Pabel Delgado Community Service Kojiro Dan External Affairs Kiran Sethi Living in Kansai Barry Louie Membership Paul Dupuis Women in Business Mari Nogami Chubu Chapter Community Service Steve Burson Independent Business Chris Oostyen/Jason Morgan Living in Chubu Lowell Sheppard Membership Relations Chris Zarodkiewicz Programs Steve Brown American Chamber of Commerce in Japan Masonic 39 MT Bldg. 10F, 2-4-5 Azabudai Minato-ku, Tokyo, Japan 106-0041 Tel: 03-3433-5381 Fax: 03-3433-8454 www.accj.or.jp / www.ecentral.jp The ACCJ is an independent membership organization with no affiliation with any government or other chamber of commerce. The ACCJ is a member of the Asia Pacific Council of American Chambers and values its relationships with Japanese, American and other nationsâ&#x20AC;&#x2122; business organizations.

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Publisher Vickie Paradise Green paradise@paradigm.co.jp Editor-in-Chief Simon Farrell simonfarrell@paradigm.co.jp Senior Editor David Umeda Art Director Paddy O’Connor Graphic Designer Akiko Mineshima COLUMNISTS Tom Baker, Nicole Fall, Mark Schreiber CONTRIBUTORS Alana R. Bonzi, Geoff Botting, Martin Foster, Justin McCurry, Darren McKellin, Tony McNicol, Anthony H. Rowley, Julian Ryall, Catherine Shaw, Richard Smith, Jeffrey Tanenhaus PHOTOGRAPHERS / ILLUSTRATORS Tony McNicol, Jeremy Sutton-Hibbert, Darren Thompson, Mattias Westfalk Published by Paradigm President Vickie Paradise Green Creative Director Richard Grehan Advertising Sales Eileen Chang, Sarit Huys, Helene Jacquet, Leai Kubotsuka Kamiyama Ambassador 209 18-6 Kamiyama-cho, Shibuya-ku Tokyo, Japan 150-0047 Tel: 03-5478-7941 Fax: 03-5478-7942 e-mail: inquiries@paradigm.co.jp www.paradigm.co.jp

Published monthly in Tokyo, on the 25th of the month, since 1964. Indexed in the PAIS BULLETIN. All rights reserved. The views and opinions expressed herein (other than editorials from the ACCJ itself) are solely the opinions and views of their authors. The ACCJ is not responsible or liable for any portions thereof. Subscription rates for non-ACCJ members One year ¥9,000; two years ¥15,000; three years ¥22,000. ¥800 per copy. Rates include domestic postage or surface postage for overseas subscribers. Add ¥7,500 per year if overseas airmail is preferred. Please allow eight weeks for changes of address to take effect. Subscription requests should be sent to info@accj.or.jp The ACCJ Journal welcomes story ideas from readers and proposals from writers. Letters to the editor may be edited for length and style. The ACCJ Journal is produced entirely on Apple computers

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NOTE FROM THE EDITOR

Starting up

26 science editing/translation company in 2005. Today, he not only employs ﬁve staff, but also enjoys an enviable worklife balance working from his dream home an hour from central Tokyo and

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f a recession is the ideal time to go into business, as some pundits claim, this issue should be required reading for anyone considering starting up soon. Three prominent foreign owners of SMEs in Japan share with us anecdotes, opinions and predictions in our Entrepreneurs Roundtable cover story, based on a combined half century of building up successful businesses here. Considering the state of the economy, especially in Japan, they remain encouragingly upbeat about the present and the future. Perhaps the greatest Japan optimist of them all, though, is Jesper Koll. Fresh from presenting his annual ACCJ event, he shared with the Journal on page 26 what he believes Japan excels at—its strengths and advantages, and which contemporary markets here offer the most potential for investors and entrepreneurs. Further proof that small-time entrepreneurs can still thrive despite hard times comes in Business Proﬁle on page 48. Rick Weisburd established his

set between rice paddies and a botanical garden, with nice domestic touches such as a dog and even a wine cellar. We know that many ACCJ members endure very tight schedules that make it difficult to find time to be interviewed by our writers, but it’s great to have such people featured in the Journal. As always, we welcome enquiries from members who feel they have a story to tell about themselves, or their company or industry. Finally, sandwiched between two ACCJ Event reports on leadership and coaching, our feature on the foodimport industry (page 28) is perfectly complemented by an Opinion Leader from the Food Safety Minister of Consumer Affairs. This comes just as the government said in late April that it would establish a new agency to oversee consumer affairs as early as this fall, amid food-labeling Simon Farrell and other scandals that simonfarrell@ paradigm.co.jp seriously undermined public confidence. ■

Reader Reaction By Julian Ryall

Seen something in the Journal you’d like to comment on? This is your page to have a say. This month, a veteran of the direct selling marketing industry speaks up after reading a Journal article. Demands for raising the punishment that can be leveled against unscrupulous companies and distributors in the direct selling marketing sector miss the point, according Gary Sumihiro to Gary Sumihiro, an industry expert and frequent commentator on commercial regulations. Responding to a Media Watch column item—a verbatim translation from the October 29 Nikkan Gendai that was reprinted in the December ACCJ Journal— Sumihiro expressed conﬁdence that the appropriate punitive measures are already in place. What is missing, he says, is the consistent and transparent application of the laws. “Direct selling is a commercially signiﬁcant sector in Japan and is already subject to a number of laws and regulations which are reinforced by penalties that are appropriate for companies that fail to live up to their obligations,” says Sumihiro. “Compliance is not an issue of increasing the penalties,” he adds.

“It’s primarily enforcement, and that is the responsibility of the Ministry of Economy, Trade and Industry [METI].” According to the World Federation of Direct Selling Associations, more than 2 million consumers in Japan contribute to this $20 billion industry. Worldwide, direct sales is estimated to reach 63 million people and generate $113 billion. Multi-level marketing, or MLM, is a type of direct selling where distributors, typically independent contractors, can sponsor other individuals to become distributors. The sponsoring distributors, in turn, earn bonuses on not only their own sales, but also the sales of their sponsored distributors. In recent years, METI has issued suspensions to a number of the estimated 700 to 800 multi-level marketing ﬁrms here. In May last year, for example, Fukuoka-based Bio C Pulse received a desist order, followed by one issued to Neways Japan, headquartered in Yokohama. More recently, Four Leaf was ordered to suspend its distributor sponsoring activities. Broadly, there are three main violations of the law, says Sumihiro. One practice is

Multi-level Blues To seek some extra income on the side, more housewives and others are using their personal networks to sell goods via multi-level marketing. But a number of such companies have been hit by claims. Nikkan Gendai (Oct. 29) reports that over the past several years the Ministry of Economy, Trade and Industry (METI) has issued desist orders to several such marketing firms, the most recent being Fukuoka-based Bio C Pulse in May 2008. Another firm on the receiving end of punitive measures in February 2008 was Yokohama-based Endways Japan, which had signed up some 490,000 members and posted sales of ¥60 billion. A METI study in 2006 estimated that multi-level sales companies claimed a total of 21.9 million members, but Nikkan Gendai suggests the actual

Media Watch, ACCJ Journal, December 2008

figure may be higher. The marketing companies recruit new distributors at seminars that typically promise the potential for huge earnings, but the sad fact is only a tiny fraction make out well — the number of members earning over ¥100,000 a month is estimated at under 1%. Nonetheless, the system has become widespread, and many people find themselves stuck with rooms full of unsold inventories. “With the rapid increase in unemployment, multilevel marketing schemes have been growing,” attorney Masaki Kato tells Nikkan Gendai. “No amount of pleading seems to protect people from entrapment, and the only way to deal with them is to buttress the laws. The current penalties for violations — up to two years imprisonment or fines up to ¥3 million — are too lenient.”

false claims about the properties of the product. Another violation is false claims about the income the individual will earn by becoming a distributor. The third illegal activity is individual sellers buying up massive amounts of inventory in order to earn a bonus. Interviewed in the Nikkan Gendai, attorney Masaki Kato said that repeated warnings have failed to protect people succumbing to “entrapment” and that the only way to deal with the problem, which is likely to worsen as unemployment grows and more people turn to multi-level marketing schemes, is to increase the current penalties—up to two years in prison, or ﬁnes rising to ¥3 million. These sanctions, Kato believes, are “too lenient.” Sumihiro disagrees. “At the end of the day, the government must enforce the law more consistently and in a transparent manner,” he says. “The recent suspensions are a step in the right direction. “In addition, direct selling companies must themselves ensure each and every employee and distributor has greater education and training about the laws and ethical behavior,” says Sumihiro. “It is also the responsibility of the company to enforce the laws.” METI has already announced a zerotolerance policy. “What is needed now is for them to do what they say they will do,” he says. “The rules and punishments for violations are already provided for,” says Sumihiro . “They just need to Julian Ryall is be applied consistently and The Daily Telegraph’s Tokyo transparently. That is the way correspondent. the message will get out.” ■

To contribute to Reader Reaction, please contact Simon Farrell, ACCJ Journal Editor-in-Chief: simonfarrell@paradigm.co.jp Tel: (03) 5478-7941

May 2009 | The Journal | 11

PRESIDENT’S MESSAGE

ACCJ Events, Trends, Happenings

ARON KREMER

ou have read about the U.S. government stress tests of 19 major U.S. ﬁnancial institutions. The ACCJ was not picked by the feds in this round, so I requested Business and Financial Affairs Advisory Council head Tad Johnson and ACCJ Treasurer Nasir Majid to work with the Chamber ofﬁce to do our own stress tests and come up with a set of possible actions now that we see more of what 2009 holds for our companies and our organization. A key problem is our decline in membership, as companies and individuals change their activities or leave Japan. We recently approved new incentives for member activities and for members to recruit new members. One of the new incentives is a free voucher for members who attend the most events during a given period. To some, this might seem like giving the winner of a hotdog-eating contest a voucher for free hotdogs. But I think that our events are so varied and interesting that the recipients should be pleased to win. A more important incentive is designed to motivate committees to identify and recruit their industry peers as a way to make the ACCJ a stronger and more effective organization. The new American Medical Devices & Diagnostics Association (AMDD) was launched April 1, 2009. The ACCJ wishes the AMDD success, and looks forward to a strong and constructive working relationship with the new organization on issues of mutual interest, much like we enjoy with PhRMA. Networking is one of the main reasons people join the ACCJ; and, in April, we held

ACCJ leaders at the ACCJ 2009 Spring Meet and Greet—more pictures and details on page 39.

a couple of our main networking events: the April 2 Meet & Greet at the Mandarin Oriental, Tokyo and the O-Hanami in Shiba Park. Many of our members used this Meet & Greet opportunity to showcase their goods and services. Lots of happy people went home with prizes. The O-Hanami in Shiba Park was very dento-teki. The night was clear, the moon was full, the tarps were blue. Something like 110 people turned up, according to Young Professionals Group Co-Chair John Ghanotakis. I’m not sure that he was the organizer, but he was still standing when I arrived at about 9:30 p.m. and everyone seemed to be having a great time. Building on the wild success of rotating its Nomu-nication events among the Latin American embassies of Argentina, Peru and Mexico, this year’s Membership Relations Committee is focusing on Europe, with events planned with the French Chamber (Chambre de commerce et d’industrie française du Japon) on July

10 and another European Chamber in the fall. The March event was with the Italian Chamber. The Internet Economy White Paper is out in draft for review. Since it affects Japan’s continued success as a leading global economy and the Internet affects each of our companies, I strongly urge you to obtain a copy and at least read a summary. Better yet, discuss it in your committee meetings. The ACCJ’s Washington, D.C. Doorknock is scheduled for June 10-11 and includes a broad cross section of Chamber businesses including, for the ﬁrst time, the Accountants whose “mark-to-market” accounting many people blame for the entire economic crisis. If you have an issue (other than accounting) that we should bring up in Washington or a Washington contact we Thomas Whitson is should see, please inform ACCJ President. twhitson@accj.or.jp Ryan Armstrong at the Chamber ofﬁce. ■

May 2009 | The Journal | 13

Entrepreneurs

Roundtable Moderated by Geoff Botting Photos by Tony McNicol

The global economic crisis, we’re told, is hurting nearly everyone. In the wake of the ﬁnancial meltdown and as the real economy continues to ﬂounder, corporations have embarked on round after round of downsizing and cost cutting. But for some entrepreneurs and small and medium-sized enterprises (SMEs), including ones in Japan, the situation isn’t necessarily so bleak. Smaller companies tend to be nimbler, able to shift focus in response to turbulent economic times, as they seek out opportunities. The ACCJ Journal talked with three Tokyo-based foreign entrepreneurs. Japan, they agree, is a great place to start your own business. Customer loyalty is high, solid infrastructure is in place to support SMEs, and—despite the recession—there’s still plenty of untapped opportunity out there. It’s a tough time all around, but how are your own businesses doing? Kevin McAuliffe: Business is good, better than a year ago. There are a lot of positives out there for us. Our business has a recruiting aspect, and that’s going well. Also, several of our business programs tend to go opposite to the economy: food, basic essentials, cosmetics, and so on. Andrew Silberman: For me, it’s the most challenging year so far, after 17 years. 14 | The Journal | May 2009

But that’s because we had been working with so many investment banks. I’m not complaining because of the opportunities I have. This year is like a test—a separation of the pretenders and the contenders. Our business is professional development. In the past, this ﬁeld was an afterthought for many client companies, with many seeing it as part of their discretionary budget. But that doesn’t make sense, since you shouldn’t cut back on education even in times of recession.

In fact, now more than ever, companies are investing in their top performers. Michael Alfant: Our business is steaming ahead. Still, our objective in September last year was to double in size in 2009; and, organically speaking, we’ll probably grow by 20% this year. We’re responding to the recession by shifting sectors. We used to be heavily focused on capital markets and the ﬁnancial industry. Nowadays, we’re refocusing

ENTREPRENEURS ROUNDTABLE

Participants:

Kevin McAuliffe, President of Newport, Ltd.

Michael Alfant, Group Chairman and CEO of Fusion Systems

Andrew Silberman, President and Chief Enthusiast of AMT Group

Newport Ltd. Fields: Range of marketing services including customer acquisition, product sales and new customer promotions. No. of employees: 24 Founded 1994 www.newportjapan.com

Fusion Systems Co., Ltd. Fields: IT solutions, software development No. of employees: 175 Founded 1992 www.fusionsystems.org

AMT Group KK Field: Supporting managers to stabilize teams and reduce costs No. of employees: 14 (7 full-time, 7 freelance) Founded 1992 www.amt-group.com

toward life sciences, retail, industrial and consumer products, etc. KM: The contrast of strategies among entrepreneurs is interesting. While Fusion is refocusing, we’re trying to return to our core strengths. We want to focus on the question, “What differentiates Newport from other companies in the same sector?” We’re thinking about what value-added services we bring to the equation, and then cutting activities that are a little outside of that. MA: I hear you, but my philosophy is, “Always be aggressive; just go for it.” That’s why I’ll always look outside our core sweet spot for opportunities. But I do agree that focusing on the core—the kernel of what makes you special—is always a good strategy. KM: Our core strength is the ability to put a professional salesperson in front of a customer. This business works counter to the macro-economic situation. When business is good, it gets hard to recruit these professionals (due to the tighter job market). But in a down market, recruiting does well so we have more professionals in the ﬁeld.

AS: In our case, it’s a question of refocusing our mission, which continues to be “developing global thinkers.” I point out that this isn’t just “training.” Lots of companies now don’t think they have the money to pay for “training.” But you mention such things as “support for your global performers,” then they reply, “Oh, yeah, we really need that.” Given the economic climate, these companies come to us because they’re keen to maintain employee retention, and—now, in particular—raising staff morale. MA: I think it’s interesting the way small companies can refocus and adapt more quickly than large companies to these seismic shifts in economic conditions. The focus of many large companies, it seems, is just to cut costs. This would be a very different conversation today if it were among three CEOs of Fortune 50 companies. To some extent, entrepreneurs thrive in times of dynamic economic change, while big companies beneﬁt from the status quo. AS: Now look at Japan. Our Japanese clients, especially the conservative ones, have been the most stable. They’ve

vowed to stick with us. You might assume that having conservative Japanese clients would be a disadvantage— but it’s become an advantage for us. Connections you make with Japanese clients can last a lifetime. MA: About 50% of our revenue comes from Japanese companies, and we ﬁnd a much longer sales cycle (compared with foreign companies) with them. Once we’re in with these clients, we tend to get much more repeat business and an easier sales cycle. However, getting in the door can be very, very difﬁcult. KM: I view Japan as a country of elephants—there’s a lot of space between the feet. And in a market the size of Japan, that means you can do business worth $100 million—and no one will notice. In the United States, on the other hand, you would go against 20 competitors just to get a couple of million dollars worth of business. MA: We call them dinosaurs. Our competitors in Japan are enormous— Hitachi, Panasonic, Fujitsu, Toshiba. They may not eat you, but they may step on you by accident. They’re so big, they don’t even notice you. May 2009 | The Journal | 15

Areas of Practice: Corporate/M&A

Finance

IP, IT and Entertainment

- General Corporate

- Capital Markets

Tax Practice

- Mergers and Acquisitions (M&A)

- Banking

Dispute Resolution

- Private Equity

- Securitization/Structured Finance/Trust

Real Estate and J-REITs

- Legislation/Regulations

- Financial Regulations/Fund Management

Antitrust Practice

- Restructuring/Insolvency

- Insurance

Environmental Law Practice

- Compliance/Risk Management

- Acquisition Finance

Employment and Labor Practice

- Project Finance

China Legal Practice

Year Established: Number of Lawyers: Languages Spoken: Contact Person:

2000 331 (as of April 1, 2009) Japanese, English, Chinese, French, German (Ms) Yuko Tamai (Dai-ichi Tokyo Bar Association)

Kioicho Building, 3-12, Kioicho, Chiyoda-ku Tokyo 102-0094, Japan Tel: 03-3288-7000 Fax: 03-5213-7800 Web: http://www.noandt.com/ Email: info@noandt.com

ENTREPRENEURS ROUNDTABLE

So our approach is to be really aggressive, and focus more on the client than on our competitors. Is Japanese-language ability essential for a foreign businessperson starting up his or her own company? MA: I don’t think it’s essential, because Andrew and I aren’t perfectly ﬂuent, although we can speak Japanese reasonably well. AS: I generally don’t use Japanese in my business apart from program launches. KM: Japanese language has been essential to our business. I think it depends on your staff and client base, but for me Japanese is necessary. What about when you meet your clients? MA: I always bring along a native speaker from my company. What was it like when you ﬁrst started up?

MA: I learned more in the ﬁrst week of running my own business than in the previous 15 years of schooling and 10 years of business experience. The cogent lesson is that there won’t be a paycheck at the end of the month. We are all conditioned to go to school, graduate, get a job. Then, while you’re at a big company, things can be quite abstract; but even so, payroll cuts a check for you at the end of the month, regardless of what you did the previous month. But after you start your business, there’s a big zero in your bank account at the end of the month, and you realize, “Hang on, no one’s going to cut me a paycheck!” That really motivated me in the early days, gave me a sense of urgency I never had before. AS: The big shock for me at the second stage, when I found it difﬁcult to hire new managers as motivated as I and the other founders were. Now, I’ve got a really solid team. But this is with the understanding that the members will be motivated for their own reasons.

MA: You have to be an Alexander the Great-type of leader. You have to lead from the front, and understand that no one’s going to be more motivated than you are. I’ve learned that most people don’t like making decisions and prefer to sit at their desks. That means you have to be the one making decisions. So you need to be motivated and risk accepting. Is the risk even greater when you decide to start in Japan, with its different business culture and language? MA: Not really. Japan’s a great place to be an entrepreneur. You’ve got a density of customer prospects here that don’t exist anywhere else in the world. Japan’s economy may be smaller than the U.S.’s, but it’s very clustered around Tokyo. 30-40% of Japan’s GDP is within a 30km radius of where we’re sitting now. Also, as foreigners, we have unique opportunities here. You’re not tied in the Japanese social structure, so you can do things outside the box.

May 2009 | The Journal | 17

“I try to maintain a middle-way between the two cultures—because both business cultures have their positive aspects.” Kevin McAuliffe

There’s also a positive cachet toward foreign products and technology that you can play on. In my case, it’s software, in which America is the world leader for development and innovation. A lot of Japanese clients want a piece of that. KM: The other aspect is that Japan is full of small and medium-sized companies. So there’s an infrastructure to support that. The laws and regulations are straightforward, so it doesn’t require a lot of work to set up a company here. But the challenge for me, since all my company’s employees are Japanese, is developing them so that they have a desire to make decisions and be aggressive. Nothing in Japan’s educational system supports those tendencies. How important is it for your company to be perceived as Japanese? KM: Our advantage is that we’re not Japanese, externally. Therefore, we’ve used the international aspect of our business in a positive way to recruit people and run our business. MA: The internal-external balance is something we’ve grappled with. We’ve hired from among 25 nationalities and we want to have a multicultural environment internally. But we want to show a client a face they’re most comfortable with, not just an individual’s face, but also a corporate engagement model that they’re most comfortable seeing.

18 | The Journal | May 2009

AS: We don’t try to promote AMT Group as a Japanese domestic player, and we don’t want to compete with Japanese companies. We want clients to know that we don’t do kenshu (job training) where everyone sits passively and just takes notes. KM: But now that the economy isn’t working, many Japanese companies are looking for new ideas. There are lots of Japanese mid-level managers who are pulling their hair out because they can’t do what they want in the current situation, and so they’re looking for new ideas. I try to maintain a middle-way between the two cultures—because both business cultures have their positive aspects. I discourage excessive after-hours’ socializing, for example, where staff go out drinking and recount all the little incidents that took place that day in the office. Instead, I encourage the employees to have a life outside the office. After your company has grown and continues to get bigger, how do you maintain your entrepreneurial spirit? MA: We’ve done it by continually creating subunits within the company, and giving those subunits a lot of discretion and authority, even to the extent that they’re on different floors of the building than I am, so that they see themselves as running their own autonomous units within the firm.

KM: I think the biggest danger is becoming isolated. You end up talking only to your top managers, who are filtering the information you’re getting. So it’s important to go out and talk to people throughout the organization. MA: For me, it can get worse than that— you start getting all your information from spreadsheets. Also, once a day, I’ll try to schedule at least one customer meeting. So regardless of what’s on the spreadsheet, I want to hear directly from the customer. AS: That’s where a lot of the networking events are useful. You can have two or three of your customers there in the same room. Is it a good idea for a foreign entrepreneur to enlist equity partners, say, a senior Japanese person with lots of experience in your field? MA: No, I don’t think so. My advice is to first work for a big company. In my line of business, where I’m selling to the corporates, if you don’t learn the engagement model that large corporations play with, you’ll never be able to sell to them. It’s much easier to learn from the inside than the outside. KM: I basically advise against partners. The trouble with partners is that things change over time. You may do all the preparation, spend lots of time together discussing about what you both want, go through all the possible scenarios, etc.; but three years later, maybe one of you wants to return home, and then all these big issues suddenly emerge. MA: That’s right. People change; when you go from good times to bad times, people can deviate. If you’re the consistent type, that can be really frustrating. AS: I think there’s a better use for that talent—the Japanese managers who take the retirement package at age 55. In our case, we use them in role-playing for the

ENTREPRENEURS ROUNDTABLE

younger Japanese sales people who are selling to executives. But I don’t want to rely on them to run my business because they’ve only worked in a Japanese corporate environment. They shouldn’t be the people advising you as an entrepreneur. MA: Those people have never been entrepreneurs, so they don’t appreciate the kind of rapid decisions that entrepreneurs need to make. When you’re an entrepreneur, time is your enemy. When you work in a large corporate environment, time can be your ally. I’ve always believed that it’s better to do something than nothing. So the biggest problem I’ve had in relating to retired executives from large companies is convincing them of the urgency of doing something—now.

How do you drum up business? Through conventional marketing approaches, like advertising, or through formal introductions? AS: We get our business through reputation, not through advertising or marketing.

KM: Coming through the back door has worked with us. We don’t have the connections or name value to come through the front door. They would just throw us out. For instance, one of our biggest clients started with us when we did a great job and solved a problem with an ofﬁce in Akita, then the client company’s guy in charge of the Tohoku region gets word, and he then gets back to us and asks us to help out somewhere else, and that leads to an introduction with the guy in Tokyo, and then we eventually get in the front door. MA: I ﬁnd introductions to be overrated. You spend a lot of your time and capital trying to engineer an introduction; but I think entrepreneurs would be better off delivering value to their clients, and thereby building their reputation. If your reputation precedes you, people are usually willing to hear you out. In your recruiting efforts, do you feel you have access to the top talent this country has to offer? AS: If you’re talking about “the elite,” I

CARTOON

don’t think we’d want them anyway. In Japan, the elite track is to work at a ministry or other big organizations. We’re looking for motivated and talented people. KM: “The system” here—education and employers, etc.—doesn’t train the kind of people we’re looking for. What do you like best about being an entrepreneur and running your own company? KM: When I worked for a big company, and was in my early forties, I looked up and saw a narrow funnel above me. There was this position, then this position, then director. Only a few people would make it up there. So I thought about being 50 and maybe not being needed anymore because I was priced too high. Now I’m running my own business, and I ﬁnd it to be really creative and interesting. AS: My company builds people’s energy and conﬁdence so that they can go out and achieve things. One of our clients recently told a prospective client, “AMT Group makes people better than they are.” We’ve also had employees of big Japanese corporations leave our sessions and say, “I feel like I can do anything!” And I realized—not only was that what my company does, but also what a good entrepreneur does with his or her staff. That’s why my title is “chief enthusiast” rather than CEO. MA: I dream about my business every night. I wake up in the morning, and I think about all the things I want to accomplish that day. That night, I go to bed thinking about what I’m going to do tomorrow. That’s what’s fun about entrepreneurship— you’re passionate about your business. I truly believe that being Geoff Botting is a freelance an entrepreneur is the purest journalist based and most noble pursuit availin Tokyo. able to us as individuals. ■

May 2009 | The Journal | 19

A combined history of nearly 60 years

THE HARUKI AND TOKYO-MARUNOUCHI LAW OFFICES Legal counsel to many prominent Japanese and foreign businesses throughout Asia, Europe and the U.S. on a full range of corporate and transactional matters Representation of companies in disputes regarding a full range of business, commercial and employment matters Significant bankruptcy, corporate reorganization, and intellectual property practice

Shin-Tokyo Building 2F, 3-3-1, Marunouchi, Chiyoda-ku, Tokyo 100-0005 Tel: 03-3214-2491

Fax: 03-3214-2494

www.tmhlo.jp

MEDIA WATCH

Sports Sponsorship Hit Professional, semi-pro and amateur sports have really been taking it on the chin. On February 10, the Mainichi Shimbun reported that Nissan Motor Co., Ltd. had announced it would suspend sponsorship of sports teams, including its two baseball teams in Kanagawa and Fukuoka Prefectures, due to worsening business results. Nissan also announced plans to withdraw sponsorship of its 10-member table tennis team and 17-member track team at the end of March, with the athletes to be reassigned to the company’s sales and production divisions. The same week of Nissan’s announcement, Shukan Economist (Feb. 17) ran articles over 10 pages on the “collapse” of sportsrelated business. Twelve teams were shut down and seven companies withdrew sponsorship of golf and tennis tournaments. Nomura Holdings, Inc., meanwhile, announced suspension of sponsorship of the Japan Olympic Team. Waseda University Prof. Munehiko Harada, an authority on the sports business, writes that Japan’s so-called GDSP (gross domestic sports product) was valued at over ¥11 trillion in 2002, but may actually be even larger since this figure does not include many intangibles. For instance, corporate-sponsored contributions by sports to PR activity are not factored into the equation. Semi-pro athlete salaries are impossible to quantify since they are included with other employee wages on the corporate books. In fact, with the single exception of volleyball’s V League, gate

receipts from amateur sporting events are generally not publicized. When contrasted in terms of income from broadcast rights and other revenue sources, professional sports here pale in comparison to the U.S. While ¥1.34 trillion is generated by the NFL, MLB and NBA, Japan’s baseball, soccer and sumo are valued at just ¥204.9 billion, one-seventh of the U.S. amount. This 7:1 ratio of pro sports outlays to GDP per capita indicates there’s still room for expansion; moves may already be underway. Recently, amateur and semi-pro team sports have been morphing into the professional ranks. Baseball leagues centered in Shikoku-Kyushu and the Tohoku-Shinetsu region, and the Kansai Independent league comprise 16 teams in total, and will rival the existing Central and Pacific professional baseball leagues. A dozen basketball teams have been organized into the bj league. Annual revenues are believed to range from only ¥100–300 million per year, about the same take as a convenience store in central Tokyo; but these teams are expected to attract new fans and stimulate local economies. Teenage golf pro Ryo Ishikawa’s appearance in the 2009 Master’s Tournament has already attracted ¥2.7 billion in corporate backers (mainly YONEX, Panasonic Corp. and House Foods Corp.). Even the recession has yet to blunt the appeal of professional sports here, and those with high media exposure can expect continued corporate sponsorship.

New Image Tired of what you see in the mirror? Perhaps it’s time for an ime-chen (image change). An overwhelming number of both males and females surveyed by DIMSDRIVE found that the thing most likely to undergo modification is hairstyle, followed by wardrobe and then body shape (for males) and cosmetics (for

females). A separate survey by DoCoMo Premier Club found that 34% of males in their twenties prefer to have their hair styled at a beauty salon, with some traveling beyond their own neighborhoods for a treatment. Overall, 39.2% of males said they visited a tonsorial parlor every other

month, followed by 26% monthly. For women, the most common frequency was once every three to four months, 37.3%, followed by every other month, 26.7%. Average outlay per visit came to 32.5% under ¥5,000 and 32.4% between ¥5,000 and ¥10,000. Another 20.2% paid ¥10,000 –15,000. (DIME)

May 2009 | The Journal | 21

Hotels Discount

SHANGRI-LA HOTEL, TOKYO

When the 5-star Shangri-La Hotel, Tokyo (pictured left) opened in March 2009 in the Marunouchi Trust Tower of Mori Trust Co., Ltd., the question arose as to the profile of guests staying in the lavishly appointed 202 rooms, with overnight rack rates starting at around ¥60,000. In contrast, citing data compiled by yoyaQ.com, an online reservations site covering some 200 hotels mostly in Tokyo, the Sankei Shimbun (Feb. 22) reports that the overnight charge for a single room averaged ¥14,912 in January 2009—the first time to fall below the ¥15,000 level. Occupancy rates last December for the Hyatt Regency Tokyo were reported at around 40%; the Imperial Hotel’s occupancy was reportedly 61.6%, a 7.3% year-on-year decline. Many hotels have taken to discounting. The Sankei reported the Sheraton Miyako Hotel Tokyo was offering overnight rates during February and March of ¥12,000, 69% off the standard charge; but another source was quoted as saying the discount ceiling for some plans might be as high as 75%. Perhaps sensing new opportunity, the latest capsule hotel, which opened in Osaka’s Namba district on April 10, went upmarket. As reported in the Nikkei Marketing Journal (March 2), Tokyo-based First Cabin Inc. will be offering cubicles measuring 4.2m2—more than twice the size of the original capsules—for a very reasonable ¥4,800 overnight rate. The 2m-high capsules are said to have taken their inspiration from the 1st Class cabins on wide-bodied aircraft, and include amenities such as a 32in flat-screen TV and Internet access. First Cabin’s new Namba facility, which can be rented by the hour, offers 99 cubicles for males and 12 for females. A Tokyo branch is planned for later this year, eventually expanding to other cities.

Home Habits

22 | The Journal | May 2009

What is the first thing you do when you walk into an uninhabited room? SkyPerfect JSAT Corp. posed this question to 1,040 adults in the Kansai area earlier this year. Of the total, 53.1% said they turn on the TV. This was followed by 35.9% who boot up their computer, 2.5% who listen to music and 0.1% who said they reach for the phone to ring up a friend or acquaintance.

Another interesting finding was that, among couples where at least one of the partners had reached retirement age, time spent watching TV together, 43%, remained unchanged, as opposed to 49.7% who said time watching TV had increased (ranging from appreciably to slightly). Of these respondents, 9.1%—and another 68.8%—said they felt that their marital relations had “become better.”

MEDIA WATCH

Big-ticket Spenders “Have you made any major outlays for purchases recently?” was the question posed in the Be Between survey appearing in the Asahi Shimbun (Feb. 21). Of the 10,521 respondents, roughly two-thirds gave negative replies. The most common reason voiced by 3,225 was “there’s nothing I want to buy.” This was followed by “don’t want to spend money” (1,716); “anxious over the future” (966); “salary has declined” (305); and “semi-annual bonus has decreased” (162). Among the minority who replied they had made a big-ticket purchase, 1,901 said they had planned beforehand to make the purchase. Another 1,157 said they had no reason not to; 164 claimed they were talked into it by their family; and 22 simply couldn’t deny the recipient. The largest spending went

toward food (1,126), followed by domestic travel (1,037), medical outlays (709), education (693), a new TV set or DVD player (637), overseas travel (574), housing costs (564), celebratory or condolence gifts (469), apparel (428) and automobile-related items (369). (Asahi)

Osaka’s Edison

Dr. Nakamats

Almost everyone has heard of Dr. Nakamats (real name: Yoshiro Nakamatsu), the inventor who claims credit for over 3,000 patents, including the floppy, CD and DVD disks; digital watch; and taxi-meter. Japan is home to other prolific inventors. The 70-year-old Osakan Kenji Kihara has been referred to in a humorous light as the “Edison of Osaka.” Kihara has come up with 500 of his own, a few of which are introduced in Friday (March 13). One of Kihara’s more utilitarian brainstorms is a kushinuki sara, a ceramic plate with a groove at the end to remove grilled yakitori from the skewer by a gentle pull. A set of four can be purchased for ¥1,980. Another Kihara contraption is made from half a PET bottle and a rubber suction cup joined together by a foot-

long section of washing machine hose. This is his anti-prank call device. If a pervert or other annoying caller should ring you up, just hold the suction cup over the telephone’s mouthpiece and squeeze the PET bottle. “The noise’ll blow his eardrum out,” chuckles Kihara. Such items as joggingu seimai-ki—a container worn around the waist that polishes grains of rice while its wearer goes jogging—have failed to make it to the marketplace. In 2000, though, he was named recipient of the “Prince Higashikuni Prize” for his playful ring toss peg helmet. The bizarre gizmo, which features four wooden pegs for catching rope rings on its crown and several yoyos dangling from the brim, has been featured by numerous comic entertainers on television.

May 2009 | The Journal | 23

ACCJ Event STRENGTHS-BASED LEADERSHIP: GREAT LEADERS, TEAMS, AND WHY PEOPLE FOLLOW Text and photos by Justin McCurry

ew would envy Tom Rath’s formidable working brief: in the words of his ofﬁcial biography, to “help organizations increase their growth rates while boosting employee engagement and well-being.” Yet, as a Global Practice Leader at the Gallup Organization, Rath has at his disposal data and testimony spanning 30 years—and drawing on the experiences of 3 million people—to help him promote corporate leadership and employee satisfaction. Rath, the author of two international bestsellers on life in the workplace, devised StrengthsFinder— an instrument designed to foster leadership and strengthen teamwork—with leadership consultant Barry Conchie. An updated version appears in their new book, Strengths-Based Leadership, which examines the critical factors in building a stronger corporate team. The authors use more than 20,000

24 | The Journal | May 2009

in-depth interviews and 1 million work teams to establish why certain leaders command high levels of respect and loyalty. Rath, who leads Gallup’s workplace research and leadership consulting worldwide, explained at an ACCJ event on January 22 how it is possible to quantify the “social and economic capital” derived from human relationships in the workplace, and how it impacts productivity. Rath divided employees into three groups: the actively engaged, the disengaged and the actively disengaged. Engaged workers, he said, are those who “are emotionally and psychologically committed to improving results in the workplace. “People who are in that element of work who are truly in sync with the work they’re doing. They’re enjoying it and their companies are beneﬁting from it. Some people really enjoy their jobs, but they’re not doing a lot.”

ACCJ EVENT

“The quality of your manager may be more important to your physical health than the quality of your doctor.”

Gallup’s studies show that engagesurveys, about 80% of the managerial ment—or the lack of it—remains a focus is still on employee weaknesses, problematic fact of corporate life in and only 20% on strengths. “That’s the Japan, since spending every waking hour inverse of what it should be,” said Rath. at the office, or laughing at your boss’s As anyone who has fallen out with a lame jokes over a beer, do not qualify as colleague can attest, rocky relationships engagement. at the workplace can affect concenNevertheless, as Rath told his Tokyo tration and productivity—and, if left audience, that sorry state of affairs is “an unaddressed, lead to poor health and opportunity for everyone in this room.” absenteeism. According to Gallup, just 7% of Japa“We spend more than half of our nese employees are actively engaged, waking hours at work, so to not have while 70% are not engaged and 23% are those close relationships on the job is a Tom Rath actively disengaged. The data compare major problem,” said Rath, adding that unfavorably with the U.S., where engagerules forbidding relationships between ment stands at 30%. staff outside the workplace, while understandable for legal That said, preventing complacency and unhappiness from reasons, were misguided. turning into cynicism and disengagement in the workplace “Essentially, these companies are looking at the downside,” requires constant vigilance, regardless of a company’s nationhe said, “and not weighing the upside in terms of productivity ality or location. and well-being on the job, so there might be a need for more In large organizations, resistance from members who have balance.” been called the “grumpy camp” can be fierce. “The biggest Rath produced compelling evidence based on Gallup studies problem I hear from leaders is how to get people out of the to back up his assertion that investing time and money into actively disengaged group,” said Rath. engaging employees, ensuring their well-being and fostering Gallup data prove that unhappy, discontented employees relationships contributed to healthier corporate bottom lines. are not only unpleasant to work with, “they have a detrimental As the full extent of the global downturn becomes clear, impact on customers and they affect recruiting. They create all managers who possess a vision for a brighter future are kinds of problems that spread throughout the organization.” priceless. Companies that engage their employees, by contrast, experiUsing the examples of Brad Anderson, the CEO of consumer ence much higher levels of growth in their business. electronics retailer Best Buy, and Mervyn Davies, former To boost engagement, managers must listen to specific chairman of Standard Chartered bank (now the UK trade demands by their employees. The first, according to Gallup, is minister), Rath cited a quality not often attributed to great that they be placed in the right job. “Some people are natural business leaders: compassion. at empathizing with customers, while there are others who are “Honesty and transparency are also very important,” he not,” said Rath, “and they are the last person you want on the said. “You need to have tough conversations, yet help people to phone dealing with an irate customer.” see how things might be quite a bit better when things turn Employees also want their managers to possess certain around.” qualities—to have clear expectations, recognize good work, Rath warned managers not to fall into the trap of gauging encourage development, and ensure employees have the tools engagement by hours in the office. “The reality is that once you they need to do the job. get past 40 hours [a week], it’s detrimental to life satisfaction. Unfortunately, as Rath pointed out, “There are a lot of bad “If your well-being suffers, your engagement at work suffers. managers at the workplace.” In extreme cases, working under Being engaged can buffer longer hours; but if you clear 60 or 80 a disliked, ineffective manager can have serious psychological hours a week, it has a really bad impact, not only on [psychoand physiological consequences. “The quality of your manager logical] well-being, but on health as well.” may be more important to your physical health than the That message has particular resonance in Japan, where quality of your doctor,” he said. overworking and old-fashioned attitudes toward The single quickest way to boost engaging employees is unconditional corporate loyalty are blamed for to recognize and then focus on their strengths, and avoid the a rise in stress-related illnesses. As the world’s second-biggest economy, Japan’s poor perfornatural human inclination to focus attention on areas that are mance in the engagement stakes is a source of going horribly wrong. concern for Rath. Doing the latter means “You often find yourself spending “Our studies in Japan have found that there’s more time with the people who are causing problems and are not much difference here in the way people rate not as productive, and inadvertently not paying as much attenJustin things, so the constructs are pretty stable,” he tion to the stars,” said Rath. “But it’s with the stars that the real McCurry is The tells the Journal. “But the level of engagement is potential lies.” Guardian’s Tokyo dramatically lower than in the UK and U.S. There That means providing someone who talks to each employee correspondent is a huge disparity.” ■ about his or her strengths on a daily basis. According to

May 2009 | The Journal | 25

Jesper Koll PRESIDENT AND CEO OF TANTALLON RESEARCH JAPAN By Julian Ryall Photos by Tony McNicol

Jesper Koll is a renowned Japan strategist, business author, and respected commentator on domestic and global economies. The former chief economist at Merrill Lynch Japan has resided in Japan for the past 25 years. You have been described as an eternal optimist when it comes to the state of the Japanese economy; is that still the case and, if so, what gives you cause for such optimism? It’s quite simple. Right now, the economic crisis is focusing the attention of every country, company and worker on the basics. What are Japan’s strengths, its competitive advantages? Well, Japan has no natural resources and its demographics are not good; but it has an incredible power base of intellectual property, while spending on research and development have never been cut back— meaning that Japan has the highest R&D expenditure of national income out of all the OECD countries, at 3.5% of GDP. There is a relentless investment in the future that assumes companies will develop products, bring them to market and commercialize them. The last nine months have been absolutely horrible in terms of Japan’s cyclical performance; but the one good thing for corporations in Japan that is very different from in the United States is that 26 | The Journal | May 2009

SNAPSHOT Tantallan Research Japan ■ Number of staff: Three ■ Date established: June 2007 ■ Location: Kawashima Building 6F, 3-10-19 Kita-Aoyama, Minato-ku, Tokyo 107-0061. ■ Main business: Investment advisory ■ Web site: http://www.tantalloncapital.com/

corporate managers here have not waited for the helping hand from the government. They have taken on restructuring the hard way and rediscovered their capitalist roots.

economic soul-searching than what we have in Japan. Europe is different. The one thing that is needed is a coordinated policy; and, unfortunately, the conﬂicts of interest and the untangling of vested interests will be very challenging there. I would say that Europe faces the biggest challenges, both at the macro and micro levels.

Has the Japanese government reacted appropriately to this crisis? Absolutely. The fact that this nation has Do you have similar optimism for the provided more than 8% of GDP in addiglobal economy? tional government spending—unlike in The shock and severity of the crisis, in the U.S., where President Obama can sign particular in the U.S., have been much more something into law within a couple of serious. We have debt overlaying asset weeks—shows that Japan is a functioning deflation and outright deflation, and the democracy. It is wrong to say that the challenges are huge. government has not been responsive; and This is a first-in, first-out situation. Japan in the next couple of quarters we will see was one of the first into this recession and those actions invigorating the economy. it will be one of the first out. The whole challenge will be asset deflation and excess What other measures could Japan have inventory, which will ensure that the U.S. taken, in your opinion? will go through much more pronounced The bigger problems for Japan are the

ON THE SPOT

“Japan has no natural resources and its demographics are not good; but it has an incredible power base of intellectual property.” BIOGRAPHY Jesper Koll ■ Age: 48 ■ Born: Krefeld, Germany ■ Education: Masters degree from SAIS The Johns Hopkins University, research fellow at Tokyo University and Kyoto University. A graduate of the Lester B. Pearson College of the Pacific. ■ Married: To Kathy Matsui ■ Children: Daughter Pria, 8; and son Tycho, 12 ■ Languages: German, English, Japanese, French ■ Hobbies: Running marathons and rakugo comic storytelling

within six months of being received to put down a mortgage or to buy a new home. Everywhere in the world, we are seeing the baby-boomer generation coming up to retirement; and the question has been, how the money can be transferred from the older generation to young people.

Which “new markets” offer the best opportunity for growth in Japan, and why? Number one is healthcare and providing services for the massive number of retirees Career who are coming through now. If I had the Before joining Tantallon in June 2007, Koll was money, I’d like to set up the Louis Vuitton of chief economist of Merrill Lynch Japan. Prior to that, he worked for the Tiger Fund and, between retirement homes here in Japan. 1994 and 1998, was head of research for There is a lot of other more standard JPMorgan in Tokyo. His analyses and insights stuff that you can see in President Obama’s have earned him positions on several Japanese inaugural address—such as the environgovernment advisory committees, and he is one of the very few non-Japanese members of ment and energy efficiency—but those the Keizai Doyukai, the Japan Association of are exactly what Japan already excels Corporate Executives. in: lighter, smaller and cheaper. Solar under-funded pension system and the technology, carbon technology, wind enormous fiscal deficit. As far back as 25 energy—these are areas where Japan is years ago, they should have been implesecond-to-none when it comes to developmenting proper tax reforms—as Japan has ing and bringing them to market. one of the worst tax systems in the world Personally, I am more interested in in terms of efficiency. domestic opportunities; and part of that, Through what is known as the tax at the moment, is the real estate sector. multiplier system, if the economy grows by There are a lot of distressed sellers and one unit, then tax income should also grow some wonderful opportunities to build by one unit; and most systems deliver that. apartments that have live-in care for the In Japan, it stands at 0.5 of a unit; and that older generation of people in their sixties to transfer power to the younger generation makes it the worst tax system in the OECD. eighties who still want to have fun, but to and retire gracefully—although that is hard Proper tax reforms, including streamlining, also feel secure. for the older generation. Lots of Japan’s would give the government a better chance problems stem from the old generation not of dealing with the public deficit, as it can How soon will it be before the average being able to let go. There is an immense be fixed through growth. Instead, we live in person in Japan can feel “comfortable” amount of youthful vigor out there; and if fear of tax increases. again? And how far behind that date will they can be empowered and trusted by the the rest of the world be? old generation, then that will What steps did Japan take that other gov- They already feel very comfortable. That’s be an enormous bonus to the ernments should emulate? not because of high economic growth. We feel-good factor. The old genThere were a couple of things in the will see growth of between 1.5% and 2% eration can retire with grace, 1990s that were effective. For example, over the next two years, which is nowhere while the young can finally the problem is that this is a balance-sheet near China or India. But this is already a prove that they are also worldrecession, as people have too much debt mature, post-industrial economy, which class in the business arena. ■ relative to their income. Japan did very is the whole point. The quality of life and Julian Ryall is The Daily well in changing the gift tax laws so standard of living here are second-to-none. * Jesper Koll will write a Telegraph’s Tokyo that now a gift to a child or grandchild The “feel-good factor” is different. I think column in the Journal every correspondent. month starting in June. is tax-deductible—as long as it is used that will come as Japanese companies May 2009 | The Journal | 27

Food: Safety First ORGANIC MAKING INROADS, DESPITE IMPORT BARRIERS Text and photos by Tony McNicol

udging by the crowds at the International Food and Beverage Exhibition (FOODEX 2009) in March, the recession has done little to sate Japan’s appetite for fine eating and drinking. Over a four-day run, 96,328 people came to savor food and drink at 3,641 booths representing 65 countries at one of the most popular—certainly the most fun—expos in Japan. U.S. companies were out in force, working hard to enter or consolidate their place in the vast Japanese food market. “Japan has been extremely successful for the U.S.,” said attendee Michael Conlon, director of the U.S. Agricultural Trade Office, at the U.S. Embassy, Tokyo. Yet, he added, “Japan has always been a very difficult market to break into.” As everyone living here knows, Japanese people take their food seriously and the quality is high. Meanwhile, tariffs remain a serious obstacle to imports, and food safety

28 | The Journal | May 2009

regulations here make tough demands on importers. A series of packaging and processing scares has made the domestic food industry reluctant to deal with non-Japanese companies, despite Japanese companies also being implicated. The almost universal assumption in Japan that domestic equals safe has been used by the authorities to help protect Japanese manufacturers, say critics. Donald Nordeng, president of EcocertQAI Japan, which helps companies obtain government certiﬁcation to sell organic products in Japan, describes food safety issues here as “a structural barrier to trade.” “MAFF (Ministry of Agriculture, Forestry and Fisheries) has perpetuated a myth and enforces regulations unevenly,” he says. The food safety concerns have actually helped the organic food business, presenting an opportunity for U.S. companies. The Japanese organic food market, despite budding interest, is still tiny

compared to the U.S. or Europe. In Japan, just 0.1% of the food market is organic, according to Nordeng. The corresponding ﬁgure in the U.S. is 1%, and in Europe possibly as high as 10%. The conditions for being allowed to display the Japanese “JAS” organic mark, however, are extremely strict. Furthermore, the Japanese organic standards remain out of sync with others, despite efforts by the U.S. and Japanese governments. “These licensing programs are very difﬁcult to implement and maintain because they don’t correspond to the U.S. and EC systems,” said Nordeng. Blue Ocean Co., Ltd. in Minato Ward has been importing and selling Jelly Belly confectionary from San Francisco for two decades. “Japanese customers are very fussy and they will demand organic products,” said President Koji Osawa. “Whether they will actually buy them, though, is a different matter.” From February Blue

FOOD: SAFETY FIRST

Jelly bean importer Koji Osawa, president of Blue Ocean Co., Ltd.

Miami-based caviar exporter Mark Zaslavsky.

Ocean has introduced Jelly Belly “bean naturals,” which contain no artificial colorings or flavorings. The distributor hopes that the ¥190 price (compared to ¥130 for its regular jelly bean product) will not put off customers. As the sole Japanese distributor for Lundberg Family Farms, Fukuoka Nosan Co., Ltd. markets organic Californian rice as a health food. Based in the southern main island and with 27 employees, the company involves locally grown Kyushu rice in 90% of its total sales, the remainder having been imported from the U.S. and China. Tariffs result in the Californian rice selling at 20% more than regular Japanese rice—but still 20% cheaper than Japanese organic rice. “Japanese customers really believe that Japanese rice is the best in the world,” said the company’s Kenichiro Nishiyori, “so we have difficulty selling table rice.” Almost all the rice Fukuoka Nosan imports goes to make miso and vinegar.

One of the more unusual organizations at FOODEX was American Indian Foods, a project of the Intertribal Agriculture Council . The council, too, hopes to market its produce as health food. “Our products are organic foods in the truest sense,” stressed Program Director Nathan Notah. “That’s all Native Americans have ever eaten. You would think that most of the Native Americans were hunters, but in reality they were cultivators.” Historically, Japan has been a premium market for food exporters. Yet, the previously weak yen and earlier high energy prices had forced many countries to pay as much as, or higher than, Japan. The current recession has reversed the situation yet again, providing proﬁt opportunities for U.S. companies. Generally speaking, processed “consumer-ready” products, in which the U.S. excels, tend to sell well as people dine out less. In addressing how U.S. companies can

make their products attractive to Japan, Nordeng recommends “providing products specifically tailored to the Japanese market … get away from one universal product for every country, but maintain the American sense.” At the beginning of this year, the U.S. Agricultural Trade Office set up a Japaneselanguage Web site to promote that American sense: www.myfood.jp/. The first monthly feature marked the inauguration of President Barack Obama by highlighting the food of his hometown, Chicago. “We are trying to tell our story to the Japanese people, who are really fascinated with U.S. culture. We have the most dynamic food culture in the Tony McNicol world,” said Conlon. “We is a freelance journalist based are not just giant farms or in Tokyo. McDonald’s.” ■

May 2009 | The Journal | 29

Seiko Noda Several frightening scandals related to consumer safety have occurred recently, one of the most alarming being the poisoned Chinese frozen-food affair.

30 | The Journal | May 2009

Additionally, various other frauds—such as falsiﬁed earthquake-proof building safety certiﬁcation, unethical traders targeting elderly people, and intentional misinforma misinformation on labels related to product des description, origin and date of manufactur manufacture—have come to light. In my view, vie a contributing factor is the vertical gove government structure that helped Japan deve develop rapidly, but has become lless le ss releva relevant today. Since the Meiji Era, tthe th e nation national government has been focusing on n fostering industry to achieve economic growth and modernization. Withou Without a doubt, such an initiative played a key role in pulling Japan out of po poverty. Japan’s dramatically rapid e economic growth drew a llot of attention around the w world. During that period, the g government mainly focused o on boosting the living standard dards of people through income growt growth. Public expectations moved in the ssame direction as well. The govern government protected and incub ba ted various business sectors, and bated consum consumer protection was a sideline issue. Un Under such circumstances, what has be been most effective is a governmen ment structure in which ministries are sset up vertically to take care of their respective industries. Ho However, as fundamental chan changes in technology, as well as in so society, take place, a governmen ment with such a vertical structure eventu eventually fails to properly address various cconsumer-related issues. Establi ishing a Con lishing Consumer Affairs Agency will provide a m major breakthrough that places

a horizontal axis in the existing vertical government structure. In February 2008, former Prime Minister Yasuo Fukuda set up the Council for Promoting Consumer Policy to explore the model of an ideal new agency that is well integrated and has strong authority to promote consumer policy. Based upon the report issued by the Council, the first Fukuda Cabinet launched the Basic Plan for Promoting Consumer Policy, at the end of June 2008. First, a Consumer Affairs Agency shall be established in fiscal year 2009. This new agency is expected to be a steering instrument, or control tower, for the government—serving consumers by monitoring all government policies from the viewpoint of consumers. The Basic Plan provides three main pillars for the agency. The first and most important is a nationwide network of consumer-friendly and reliable contact points to be set up, along with the Consumer Affairs Agency. Regional consumer affairs centers, located all over Japan, are to be substantially reinforced and networked, so they can serve as easily accessible contact points for every citizen facing consumer problems. At the same time, information on such consumer issues is to be collected and swiftly transmitted to the Consumer Affairs Agency network. Finally, drastic measures should be taken to enhance and improve administration of the consumer in each region. The second major pillar is maximizing the agency’s function, which will be very far-reaching and wide-ranging. The agency will plan comprehensive consumer policy, research and analyze consumer issues, coordinate among ministries and request

ILLUSTRATION FOR THE ACCJ JOURNAL BY DARREN THOMPSON

IMPROVING SAFETY TO PROTECT CONSUMERS.

OPINION LEADER

野田聖子消費者保護にむけての安全性の向上 them to take necessary measures. To that end, it shall become a legal requirement to have a Cabinet minister for consumer affairs oversee the agency. Furthermore, the agency is to hold direct jurisdiction over various consumer-related laws regarding product labeling, consumer transactions and consumer safety. In those areas, the agency will not only make policy recommendations to relevant ministries, but also implement policy itself. In addition, a new law will be introduced to provide the manner by which the agency will collect information through the regional network of consumer centers, and how the agency will take necessary actions based on that information. To that end, the new law will give legal status to regional consumer centers. The legislation also will make it possible for the Consumer Affairs Agency proactively to address urgent consumer problems that have fallen into the cracks between different ministry jurisdictions. Finally, the third main pillar of the Basic Plan is the structure of the Consumer Affairs Agency. It is to be composed of a policy division, a law-enforcement division, and an intelligence publication division that will serve as the central government’s headquarters when a consumer affairs emergency occurs. Furthermore, a Consumer Policy Committee is to be established under the agency. The committee will be comprised of consumer experts—including academics and representatives of consumer organizations—in order to have policy decisions reﬂect the voices of consumers. Seiko Noda is Minister of State for Science and Technology Policy, Food Safety Minister of Consumer Affairs, and Minister of Space Policy.

近年、マンションの耐震偽装に始まり、相次ぐ食品

を構築することとしています。全国の消費者生活セ

の不当表示事件、高齢者等を狙った悪徳商法の横

ンターが、消費者にとってアクセスしやすい相談窓

行、また、中国製冷凍加工食品による薬物中毒事案

口と位置づけられることになります。同時に、収集さ

など、国民の身近なところで大きな不安をもたらす消

れた消費者の苦情相談情報は、消費者庁に一元的

費者問題が次々に生じています。こうした問題の背

に集約されます。地方の消費者行政を抜本的に強化

景には、我が国の行政が明治時代以来、長く産業振

し、特に当面、思い切った取組をしっかりと行ってい

興を主目的として行われてきたことがあると考えて

くこととしています。

います。確かに、そのような産業保護・育成中心の行

次に、二つ目の大きな柱は、「消費者庁の機能の

政は戦後の貧困からの脱却に際して大きな役割を果

十分な発揮」です。具体的には、消費者庁は、各府省

たしており、その急速な経済発展は世界から注目を

庁に対する総合的な調整機能、幅広い企画立案機能

集めました。当時の経済政策下においては主として

や充実した調査・分析機能を担うこととしています。

所得の拡大を通じて、生活水準を高めることが目指

必要な場合には、各省庁に対し司令塔として要求を

されており、また、国民もそれを期待していました。

行うこともできます。また、消費者政策担当大臣を置

このように、これまで、消費者保護は、産業振興の補

くこととしています。さらに、「表示」、「取引」、「安

完的な範囲内でのみ行われる、という体制だったの

全」に関する分野など、消費者に身近な問題を取り

です。こうした状況の下では、個別産業ごとに縦割り

扱う法律は、消費者庁が幅広く所管することとして

された行政機構が最も効率的であったのです。

います。これらの分野において、消費者庁は、関係省

しかしながら、現在の複雑・高度化した社会にお

庁に措置要求するだけでなく、自ら法執行します。加

いては、多種多様な消費者問題が発生しており、縦

えて、消費者庁は、全国の消費生活センターのネット

割り行政では対処することが難しくなっております。

ワークを通じて情報を一元的に集約し、その情報を

消費者庁の創設は、こうした縦割り行政を改め、府

基に、適切な対応をします。そのため、地方公共団体

省庁横断的な行政を実現する突破口となるもので

が設置している消費生活センターを法的に位置付け

す。2008年２月には、福田前総理が、消費者行政を

ることとします。また、消費者庁が、所管する省庁の

統一的・一元的に推進するための強い権限を持つ新

ない、いわゆる「すき間事案」へも対応できるように

組織のあり方を検討するため、「消費者行政推進会

しています。

議」を官邸に設置されました。そして、この消費者行

そして、本基本計画の三つ目の大きな柱は、「消費

政推進会議の取りまとめを踏まえ、政府の基本方針

者庁の体制の在り方」についてです。具体的には、本

として「消費者行政推進基本計画」が同年６月末に

計画では、消費者庁は、総合的な調整等を担当する

閣議決定されました。

企画部門、個別作用法に係る調査・執行までを担う

本基本計画は、消費者の視点で政策全般を監視

執行部門、緊急時の司令塔機能、情報収集・発信を

し、「消費者を主役とする政府の舵取り役」となる

担当する部門を構築する必要があるとしています。さ

消費者庁を2009年度から設置することを内容とす

らに、有識者から成る消費者政策委員会を設置し、

るものです。基本計画には、三つの大きな柱があり

消費者の声を政策に反映させることとしています。

ます。まず、一つ目の大きな柱は、「消費者が頼れる分かりやすい一元的な相談窓口を設置」することで

内閣府特命担当大臣（科学技術政策・食品安全）

す。具体的には、地方の消費生活センター等を一元

消費者行政推進担当大臣

的な消費者相談窓口と位置付け、全国ネットワーク

宇宙開発担当大臣

May 2009 | The Journal | 31

ACCJ Event

WHAT REALLY HAPPENS IN COACHING: EXECUTIVES TELL ALL Text and photos by Justin McCurry

he days when it was enough simply to appoint “the right man for the job” are over. For executives to shine throughout their careers they need professional guidance and appraisal and—this may be the toughest challenge—the humility to ask colleagues if they come up to scratch in the workplace. Like ﬁnely tuned sportsmen who want to stay at the top of their game, they need a coach. As co-founder, and now chief executive, of the Californiabased CoachSource, Brian Underhill knows better than anyone the beneﬁts of a structured coaching framework—as opposed to sporadic, poorly planned pep talks that promise much, but deliver little. Underhill, whose list of clients reads like a who’s who of global big business—AT&T Wireless Services, Dell, Johnson & Johnson, Motorola, Sony and Microsoft, to name a few—brought ACCJ members and their guests up to speed at an ACCJ event in January entitled “What Really Happens in Coaching: Executives Tell All” on the changing coaching environment around the world. In a lively speech that occasionally poked fun at the performance perception gap between coaches and their executive tutees, Underhill explained how the coaching sector

32 | The Journal | May 2009

can help firms get the best out of their senior employees and achieve positive, measurable and long-term change in leadership behavior. The coaching phenomenon took hold about a decade ago when the U.S. computer giant Hewlett-Packard Corp. introduced coaching among employees at its spin-off firm Agilent Technologies. At the time, Agilent had no proper coaching program because none was available. That is where CoachSource stepped in. Underhill’s firm had been performing thousands of one-hour coaching sessions over the telephone, but Agilent’s demands were different: a six- to 12-month course at its offices around the world. The project was a success. “What I never knew at that time was how many other companies were going to call with the exact same request,” said Underhill. By 2005 Underhill and his business partners had built up a considerable volume of research centered around interviews with executives and coaches—enough for a book, Executive Coaching for Results: The Definitive Guide to Developing Organizational Leaders (Berrett Koehler, 2007). So what is executive coaching? At its simplest, said Underhill, it is the one-on-one development of an organizational leader.

ACCJ EVENT

“With globalization taking place, how you’re going to do something, and you have a lot of companies expanding how you actually do it,” said Underhill. who need a leader who can get into “Practicing it is a whole different story.” various parts of the world and grow Following up is the only way a their business. In the, U.S. demographics coach can check whether those new mean that lots of people are retiring behaviors—better listening and and companies need new leaders to delegation skills, time management replace them. and task execution—have really been “So how do you get the best people in implemented. The executive, for his or the ‘war for talent?’” he asked. her part, must swallow pride and seek Since its beginnings in California, 360-degree feedback—evaluations from executive coaching has grown into a colleagues, including juniors. $1-2 billion dollar industry, according to “At first it seems like a big deal, but Underhill. More than 63% of firms expect it gets easier the more you do it,” said to increase coaching facilities, while more Underhill. “It’s not only about changing than 90% of executives who have used key behavior, but letting people know you coaching services say they would do are doing this and checking back to see if so again. there’s been any change.” Coaching comes in myriad forms, What makes a good coach—an industry but its basic goals remain the same—to in which qualifications are not required, develop leaders; ensure smoother and even frowned upon? According to transitions, such as an expatriate Underhill’s research, the most important assignment; retain high-potential quality executives desire is not a coach’s employees; and, to a much lesser extent, qualifications or low rates, but the ability fix problems. to build a rapport with them, ideally based Brian Underhill “In the past the attitude was that when on previous experience in the business you got a coach, you were in trouble and world. that your company was giving you a coach The coach-client relationship should as one of the least things they were going to do,” said Underhill. not end with the final session, but rather develop into one that But attitudes have changed. Now, if a firm is going to spend encourages follow-up activities so that the success, or otherwise, money on coaches, they will send them to their best people to of the project can be measured. This is an area that, according to make them even better. “Don’t assign a coach to someone who Underhill, is still under development. you think is on the way out,” he said. “Surprisingly, we found a large number of organizations don’t Coaching practices that have the full support of, and even do anything to measure coaching at all, even though they spend participation by, senior executives—Michael Dell is a notable all this money,” he said. “That is quite scary.” example—are far more likely to succeed and encourage other It might be reasonable to suppose that coaching will suffer in managerial staff to take part. times of recession, as firms attempt to slash budgets. However, In addition, coach and executive must gel quickly and agree while acknowledging that the current financial crisis will have to a bespoke plan of action, subject to regular and rigorous an impact, Underhill believes coaching has a bright future ahead assessment, said Underhill. of it. Any employee who has had to endure a non-communicative Globalization, for example, has spawned the growth of boss will not be surprised to learn that most coaching time intercultural training for executives who are focuses on listening skills. sent on overseas assignments. That and other “Holding people accountable is number two. Making sure factors, he believes, will help Japan’s corporations people are delivering on their commitments,” Underhill told the overcome their natural resistance to new ideas Journal. “Number three is generally treating people with respect. such as executive coaching. You get the typical Type A leader who pushes and makes things “The multinationals are really embracing happen, but treats people poorly in the process.” coaching, so they’re doing it here regularly,” he Persuading intransigent executives to put new skills into said. “Japanese coaches tell me it’s not as prevalent Justin practice can be problematic, he admitted, even after coach and in Japanese companies, but that might change. McCurry is The charge have practiced newly learned behaviors through role“When one does it,” said Underhill, “then Guardian’s Tokyo play, which is a very useful technique in coaching “because there all of them will want to do it once it’s seen as correspondent acceptable.” ■ is always this enormous difference between thinking through

“We found a large number of organizations don’t do anything to measure coaching at all … that is quite scary.”

May 2009 | The Journal | 33

LOGISTICS AND SUPPLY CHAIN MANAGEMENT Special Advertising Section

A Moving Experience C ertainly in the best of times, efﬁciency, state-of-the-art technology and a global network best serve the client. But during this sustained global economic downturn, these three qualities found in the logistics industry here deﬁne a great “rescue” package for all concerned. As a corporate, you can expect your leaner budget still to cover quality service and delivery—which, in turn, demonstrates in real terms a steadfast commitment to the two greatest assets: your employees and your customers. As an executive on overseas assignment, you can provide your family a caring support, an attention to detail, the timely appropriate transport of personal belongings—and explained in a language your spouse and children understand. As a customer, you want your online purchases not only to be hassle free, but also arrive in a timely manner and be intact. Experience doesn’t just offer the appropriate solutions; seasoned logistics professionals anticipate what may be weighing

34 | The Journal | May 2009

heaviest on your mind and provide a response that frees you to concentrate on more private matters during a relocation—such as seeing relatives, visiting with neighbors or purchasing last-minute items. What experience also provides is experts listening to your concerns and offering options that make sense to you. The milestones realized in air, sea and land transportation improvements—in speed and range, packaging and storage, as well as in seamless tracking and delivery across continents and oceans—deﬁne a logistics industry that has invested in its future. Yet, what truly stands out is the quality of professionals involved in the process. From multi-language ability and multi-cultural experience, to exceptional people skills and logistics know-how, the staff brings into play a wealth of capabilities for getting the job done under varying—sometimes unprecedented—circumstance. The advocacy efforts by the ACCJ bring to light what needs to be addressed by entities involved in the business of moving people and goods. In particular, the Transportation and Logistics Committee monitors legislation and regulations that affect equal access and free competition in the logistics service industry. David Umeda Senior Editor at Paradigm

Asian Tigers Premier Worldwide Movers Co., Ltd.

Tel: Fax: Web:

Tel: Fax: E-mail: Web:

03-5549-6200 03-5549-6201 www.alliedpickfords.co.jp

At Allied Pickfords, we understand that you are not just moving your belongings from one place to another. Your life is changing before your very eyes. And, with everything you have to think about during your upcoming relocation, you shouldn’t have to worry about the move itself. Moving over 1,000 families every day in more than 175 countries, Allied is the largest, most recognized moving company in the world; and our experience and expertise will help you get through your move with the minimum of disruption. With local ofﬁces in both Tokyo and Kobe, our combination of highly skilled multilingual local and expatriate staff, supported by English-speaking move supervisors and trained packers ensures a trouble-free relocation, whether you are moving domestically or internationally. So relax a little! Let us help reduce the stress of relocating your life.

03-6402-2371 03-6402-2305 sales@asiantigers-japan.com www.asiantigers-japan.com

Move Like a Tiger Relocating into a strange culture can be a nerve-racking and stressful experience. It need not be so. The Asian Tigers group’s unmatched expertise in the move management and relocation industry makes any employee transfer a simple and smooth experience. With 27 offices in 13 countries and employing over 1,500 staff, the Asian Tigers group is Asia’s leading moving and relocation group. And we show it by offering a service of unparalleled support in relocating throughout Asia and the rest of the world. With our co-ownership and memberships in the industry recognized OMNI and FIDI groups, we have over 480 partner/affiliated offices representing every country on the globe. Contact us today for a no-obligation corporate consultation and/or free estimate for any staff you may have that will be relocating soon. Contact: Andrew Olea, Director of Sales & Marketing. Call 03-6402-2371, andrew.olea@ asiantigers-japan.com or visit our Web site at www.asiantigers-japan.com

Daifuku Company, Ltd. Tel: 03-3456-2395 E-mail: terry_wagemann@ha.daifuku.co.jp Web: www.daifuku.com

Yusen Air & Sea Service Co., Ltd. Since 1937, Daifuku has become a global leader in the development of automated material-handling solutions for manufacturing, warehousing and distribution, operating in more than 16 countries. Our products range from simple utility carts and storage rack, to complete, fully automated warehouses, DCs, factories and cleanrooms. We provide a Total Solution, not just automated equipment. Total Design - We start by analyzing your total process. We have become a global leader not only by our experience, but also by dedicating ourselves to achieving a complete understanding of manufacturing and distribution logistics. Forming a partnership with our customers through each phase—interviews, analysis, concept, design, installation and operation—a Total Solution is realized. Total Production — Under strict quality-control guidelines, we produce our products incorporating the latest technologies. Faster operation, higher density, improved working environments and greater productivity are your beneﬁts to our commitment to constant improvement. Daifuku’s major production facilities are certiﬁed under ISO9001 and ISO14001. Total Support — Our customer commitment continues beyond installation and implementation. Global support and service are essential to delivering a Total Solution. As your needs change, our partnership makes it possible to help you more quickly achieve the results you need for success.

Tel: Fax: Web:

03-3669-4381 03-3669-8540 www.yusen.co.jp

Yusen Air & Sea Service Co., Ltd. (YAS), a member of the NYK Group, is one of the world’s leading international freight forwarders in supporting customers to implement their logistics strategy effectively. For over half a century, YAS has steadily grown into a premier international total logistics business by providing ﬁve-star quality services, integrating transportation by air, sea and land for the ever-changing logistics needs of our clients. More than a 240-ofﬁce global network in 33 countries provides a speedy and effective logistics solution for our customers’ various needs. This network, along with our partnerships with overseas agents, covers most of the countries in the world. Full-range logistics services—such as air freight, ocean freight, land transportation, warehousing, pick and pack, distribution, cross dog service, vendor management inventory, customs brokerage service and project cargo service—will be provided to customers, offering a one-stop shopping convenience for all their logistics needs. We are challenged to broaden and thoroughly implement accepted international standards and to share distribution expertise developed in Japan in order to maintain consistently high-quality services in every location around the world.

May 2009 | The Journal | 35

LOGISTICS AND SUPPLY CHAIN MANAGEMENT | Special Advertising Section

Allied Pickfords Japan

Chubu ACCJ/NIS 18th Annual Walkathon and International Charity Festival May 24, 10:00-16:00 www.nagoyawalkathon.com Tel: 052-229-1525 The largest annual international event in Nagoya is a great opportunity for international exchange, with lots of food, an exciting stage show, and a rafﬂe with great prizes—all for a good cause. This memorable event brings together nearly 2,000 people to have fun while raising funds for local NPOs and charitable organizations. The event will be held in Tsuruma Park for the ﬁrst time, as part of the park’s 100th anniversary celebrations. Last year the ACCJ Walkathon Committee gave more than ¥8 million to support children and those in need in the Chubu Area—and this year’s target is ¥10 million. Tickets cost ¥2,000 for adults and ¥1,000 for college and high school students. Tsurumai Park, Nagoya

Golden Week May 3 (Sun), Constitution Day; May 4 (Mon), Greenery Day; May 5 (Tue), Children’s Day; and May 6 (Wed), additional national holiday in 2009.

The Grade 1 ﬂat horse race for three-yearold and above thoroughbred ﬁllies and mares covers 1,600m at Tokyo Racecourse, 30 min from central Tokyo, Fuchu Keiba Seimon Mae Station, Keio Line

Kobe International Conference Center, Port Island, Shimin-Hiroba Station, Port Liner Line

1st GRIX Kanda Matsuri

Grand Sumo Tournament

May 7-15

May 10-24 www.sumo.or.jp/eng/

Although observed annually, the larger affair takes place in the odd-numbered years (2009). Held at Kanda Myojin Shrine, it is one of Tokyo’s three traditional Grand Festivals. Tokugawa Ieyasu’s victory at the battle of Sekigahara resulted in the establishment of power in Edo (present-day Tokyo). Taking place in the classic Shitamachi downtown district, on the ﬁnal day, 70 mikoshi portable shrines are paraded through the streets, carried by teams of men and women dressed in traditional festival happi coats, leggings and bandana.

Though the matches start around 8:30 (doors open at 8:00), with the Juryo Division commencing at around 14:20, the upper Makuuchi Division ring-entering ceremony begins at approximately 16:00 and these matches run until 18:00. Ryogoku Kokugikan, Tokyo, Ryogoku Station, JR Sobu Line

36 | The Journal | May 2009

The Green IT Expo Japan is Asia’s largest, gathering all kinds of green IT solutions including power-saving servers and network equipment, and efﬁcient data center operation solutions. The expo attracts information systems managers and managing directors of leading companies, and data center owners. Tokyo Big Sight, Odaiba, Tokyo Waterfront, Kokusai-tenjijo Station, Yurikamome

IEEE ICRA 2009 May 12-17 9:00-17:30 (last day: -17:00) www.icra2009.org/

NHK Mile Cup May 10 http://japanracing.jp/course/

May 13-15 10:00-18:00 (last day: -17:00) www.grix-expo.jp/en/

The theme for the International Conference on Robotics and Automation is ”Robotics and IRT [information and robot technology] for Livable Societies,” reﬂecting ever-growing interests in the research, development and applications of a most dynamic ﬁeld. Highlights include presentations of contributed papers, invited sessions on new topics or innovative applications, 1½-3-min videos illustrating new and exciting results, and half-day and full-day tutorials and workshops, and exhibitions.

Kyoto Geisha Festival May 15-16

EVENTS LINE-UP

The famous graceful dances by geisha from the Pontacho district are performed on the banks of the Kamogawa River—a tradition that began back in 1872.

Tokyo Big Sight, West 1 & 2, Conference Tower, Odaiba, Tokyo Waterfront, Kokusaitenjijo Station, Yurikamome

discuss the practical challenges encountered and the solutions adopted. ANA InterContinental Tokyo, Tameikesanno Station, Exit 13, Tokyo Metro Ginza and Namboku Lines

Katy Perry Japan Tour 2009 Sanja Matsuri May 15 to 17

May 25, 26, 28 & 29 www.katyperry.com/ California Grammy nominated singersongwriter and musician who broke onto the music scene with her hit, “I Kissed a Girl” (2008), and later “Hot N Cold” and “Thinking of You,” from her album, One of the Boys. Club Quattro Osaka (25th); Club Quattro Nagoya (26th); and Duo Music Exchange (Shibuya Dogenzaka, up the hill from 109 Bldg.), Tokyo (28th & 29th).

150th Anniversary Commemorative Ceremony May 31 www.city.yokohama.jp/

TBLI Conference Asia 2009 On the Asakusa Jinja Shrine grounds, it is one of the three major festivals in Tokyo, attracting 1.5 million spectators. Friday afternoon has a parade featuring traditionally dressed musicians and dancers. The highlights of the weekend include the energetic carrying of mikoshi portable shrines, which starts on Saturday and progresses to the introduction and parade of the three large mikoshi on Sunday. The portable shrines are carried through 44 neighboring areas, 6:00-20:00.

May 27-28 http://tbliconference.com/

14th iﬁa Japan 2009

The largest annual global networking and learning event on SRI (sustainable responsible investment) of Europe and Asia is being held this year in Japan. The world’s leaders in sustainability convene to network, exchange information and ideas on the latest developments in screening, auditing, reporting, SRI analysis, corporate citizenship, indexes and research. Paciﬁco Yokohama, Minatomirai 21, Minatomirai Station, Toyoko/Minatomirai Line; or Sakuragicho Station, JR KeihinTohoku, Negishi and Yokohama Lines

7th HFE Japan 2009 May 20-22 10:00-17:00 www.ejkrause.com/iﬁajapan/

ICSDC 2009 ICESSE 2009

Over 350 exhibitors from around the world showcase their goods at Asia’s largest International Food Ingredients and Additives event. The concurrent Health Food Exposition & Conference, with about 100 exhibitors, remains the leading venue for manufacturers and suppliers in the health-conscious Japanese market. Some 33,000 buyers from across Japan attend these events. The Japanese market is over $10 billion.

May 27-29 www.waset.org/wcset09/tokyo/icsdc/ The International Conference on Sustainable Design and Construction—as well as the International Conference on Computer, Electrical, and Systems Science, and Engineering—aim to bring together researchers, scientists, engineers and scholar students to exchange and share their experiences, new ideas and research results about all aspects of their ﬁelds, and

This year marks the 150th anniversary of when U.S. Commodore Perry and his black ships reopened the port of Yokohama. The ceremony—including original show by Amon Miyamoto, an exhibition and ﬁlm show on the premises related to the history and opening of the port—also will convey future aspects that the city can share as dreams and hopes for the next generation, the country and the world. Some 2,000 invited guests and another 2,000 attendees by application will attend. Paciﬁco Yokohama, Minatomirai 21, Minatomirai Station, Toyoko/Minatomirai Line; David Umeda is or Sakuragicho Station, JR Senior Editor at Paradigm Keihin-Tohoku, Negishi and Yokohama Lines

May 2009 | The Journal | 37

OUT AND ABOUT

ACCJ Event Highlights Photos by Aron Kremer

ACCJ 2009 Winter Diet Doorknock Seventy-two ACCJ leaders met with 58 Diet members and senior government ofďŹ cials to discuss the international business environment in Japan during the ACCJ 2009 Winter Diet Doorknock on February 17â&#x20AC;&#x201C;19.

Left to right: ACCJ Vice President William Bishop, ACCJ Governor Christopher Ellis, Chief Cabinet Secretary Takeo Kawamura, ACCJ President Thomas Whitson and ACCJ Executive Director Samuel Kidder. The Diet Doorknock is the cover feature in the upcoming June issue of the ACCJ Journal.

ACCJ 2009 Spring Meet & Greet About 200 members and guests joined the ACCJ 2009 Spring Meet & Greet on April 2 at the Mandarin Oriental, Tokyo that was organized by the ACCJ Tokyo Membership Relations Committee to welcome new ACCJ members. Attendees enjoyed several hours of networking, mingling, prize drawings, and hanami-themed bingo.

Left to right: Akiko Suehiro, Eiichi Ishimaru (Oakwood Premier Tokyo Midtown), Andrew Stevens, Jason Altobelli, Glenn Chadderton and Richard Cayne

Servcorp Japan KK marketing team

May 2009 | The Journal | 39

INVESTMENT, BANKING AND FINANCE Special Advertising Section

Tax Management during the Economic Downtown

f the developed nations, Japan has suffered amongst the worst economic deterioration—the result of which the government has announced a total of $270 billion in three economic stimulus packages since September 2008. The measures include government guarantees for company loans, incentives for eco-friendly products, and tax incentives. In the business sector, taxes are considered an even more critical tool in an economic downturn because an effective tax management strategy can contribute to sound cash flow management and effective risk control, especially for multinational companies. Below are some opportunities you may wish to consider for your business in Japan. Effective use of losses/tax credits It is important for multinationals to effectively utilize tax losses, and take advantage of tax credits to generate additional cash flow. Not only compliance with basic requirements to carry forward losses up to seven years, for instance; but have you also considered tax consolidation opportunities for effective use of losses within the group? There may be R&D tax credit opportunities, of up to 30% of a company’s annual corporation tax liability. Cash tax management Given the current importance of liquidity, cash tax management becomes at least as, if not more, important than the book tax rate. Maximizing shareholder value is based upon paying the correct amount of tax no sooner than it is needed to be paid and taking advantage of all opportunities to accelerate receipt of cash refunds. For interim tax payments, have you considered estimating mid-year installment payments based on actual results of the first six months, as opposed to paying 50% of the prior year tax liability? This may well result in a lower payment. Regarding Japanese consumption tax, have you undertaken a review of the timing for reclaiming consumption tax to minimize cash outflow and the timing of filing returns to access tax refunds in a timely manner? Optimization of deductions Book-tax differences sometimes cause significant funding problems; hence, it is essential for businesses to identify and obtain absolute tax

40 | The Journal | May 2009

savings through adoption of appropriate techniques and planning structures. It may be worthwhile to focus on the newly introduced guidelines to claim a Japanese tax deduction for the write-down of investments in securities, which may enable companies with heavy valuation losses to reduce their corporate tax burden, especially in the current difficult economic circumstances. Cash repatriation options It has become more difficult to access funding, particularly on a short-term basis; and, as such, tax departments are being challenged by management to quantify the tax cost of alternative techniques of extracting cash from foreign operations. Solutions include the use of taxefficient structures and tax-efficient payments. For example, have you taken advantage of tax treaties between Japan and tax residents of your offshore operations in order to reduce withholding tax on interest, dividends and royalties within the group? Can you structure repatriations as capital redemptions? Alternatively, you may consider a Japan entity with excess cash making an upstream yen loan to an offshore affiliate, based on an arm’s length rate of interest, which may be considered relatively low in comparison to other developed nations. Finally, taxes have become even more important in the economic downturn because tax departments can add value by improvements in cash flow, efficient use of existing cash, and global minimization of tax. The companies that thrive in the current economic downturn will be the ones that make full use of their tax management toolbox.

Jonathan Stuart-Smith Chartered Accountant (UK) Partner - International Tax Tohmatsu Tax Co., a member of Deloitte Touche Tohmatsu

Tel: Fax: Web:

03-5228-1820 03-5228-1830 www.APOutsourcing.jp

AP Outsourcing (APO) is an independent outsourcing provider of Accounting and Payroll with Big Four experience (Arthur Andersen and KPMG). It was separated from Azsa Audit Corporation (the audit group of KPMG Japan) in April 2004. AP Outsourcing provides bilingual staff with extensive experience and knowledge of financial operations, payroll and tax, helping you compete better and accomplish your goals. Start-up Support: APO provides business start-up support for new foreign corporations and venture companies, including legal registration, tax and social insurance applications. Project Management: Effective and efficient project management support for outsourcing migration. Outsourcing Operations: Well-qualified bilingual accountants, tax/social insurance specialists and system experts accurately and promptly provide outsourcing operations, focusing on the confidentiality of accounting payroll/ information. Loan Staff: Accounting/payroll processes are facilitated by the placement of our own specialist staff in the clients’ offices for specific periods. APO also offers other specific services and support on request. For more information on how we can help you to simplify your business processes, call AP Outsourcing at 03-5228-1820.

Atsumi & Partners Tel: Fax: Web:

03-5501-1166 (Bonnie Dixon) 03-5501-2211 www.apap.gr.jp

Atsumi & Partners is one of Japan’s leading independent law firms and was the first Japanese law firm to admit non-Japanese partners, Ms. Bonnie Dixon, a New York lawyer; and Daniel Hounslow, an English lawyer—both with more than 20 years’ experience; our foreign partners are supported by six foreign attorneys. We operate as a fully integrated international team, providing advice on complex domestic and cross-border matters to the standards the modern business community expects. Atsumi & Partners has for some years been widely regarded as Japan’s premier law firm in the fields of securitization and structured finance, and now offers its clients a full-service capability with international experience in finance, banking, real estate finance, private equity, investment funds, mergers and acquisitions, securities, syndicated loans, derivatives, public offerings, private placements, information technology, intellectual property, general corporate law, trust law, bankruptcy, insolvency, restructuring, due diligence, compliance, litigation and arbitration.

Ernst & Young Shinnihon Tax Tel: Web:

03-3506-2411 www.eytax.jp

Ernst & Young’s tax professionals in Japan provide you with deep technical knowledge, both global and local, combined with practical, commercial and industry experience. Our highly regarded tax and M&A advisory, compliance

and transfer pricing professionals, consistent methodologies as well as unwavering commitment to quality service help you to build the strong compliance and reporting foundations and sustainable tax strategies that help your business achieve its ambitions. It’s how Ernst & Young makes a difference. If you would like further information regarding domestic or international tax matters, please contact Shinichi Tanimoto at 03-35062843 or shinichi.tanimoto@jp.ey.com, or John Kondos at 03-3506-2596 or john.kondos@jp.ey.com.

The Haruki and Tokyo-Marunouchi Law Ofﬁces Tel: Fax: Web:

03-3214-2491 03-3214-2494 www.tmhlo.jp

The Haruki and Tokyo-Marunouchi Law Offices is one of Japan’s leading law firms, with a history of nearly 60 years. The firm was established in 2006 following the formation of a new partnership pairing the strengths of Haruki, Sawai & Inoue in international business, real estate securitization, project finance, mergers and acquisitions, and contracts with the experience of the Tokyo Marunouchi Law Offices in domestic business, bankruptcy and corporate rehabilitation, broadcasting, private finance initiatives and information technology. The combination of our practices has provided an extraordinary opportunity for the service we provide to our clients. Our firm’s international division includes attorneys admitted in Japan and the U.S., with several receiving their legal education in the U.S. and working in some of the largest U.S. law firms. We provide advice to many prominent Japanese and foreign companies throughout Asia, Europe and the U.S. on a full range of corporate and transactional matters. Our firm also has a significant litigation practice, having represented several Japanese and foreign companies in Japanese courts and international arbitration tribunals. Our firm also represents clients in disputes regarding intellectual property, international patents and employment matters. For more information, please contact Noriko Sawai at n-sawai@tmhlo.jp (Daini Tokyo Bar Association).

Houlihan Lokey Tel: Fax: Web:

03-4577-6000 03-4577-6099 www.HL.com/jp

Houlihan Lokey, an international investment bank, provides a wide range of services, including M&A, financial opinions and advisory services, and financial restructuring. The firm provides cross-border M&A advisory services, renders expert fairness opinions and is a leader in providing independent valuations for tax and financial reporting purposes. Established in 1970, the firm has over 800 employees in 14 offices in Asia, the United States and Europe. Each year the firm serves more than 1,000 clients ranging from closely held companies to Global 500 corporations. For more information on Houlihan Lokey’s services in Japan, contact Ryuta Fujino, Managing Director, at rfujino@hl.com

May 2009 | The Journal | 41

INVESTMENT, BANKING AND FINANCE | Special Advertising Section

AP Outsourcing

INVESTMENT, BANKING AND FINANCE | Special Advertising Section

Nagashima Ohno & Tsunematsu

Tohmatsu Tax Co.

Tel: Fax: E-mail: Web:

03-3288-7000 03-5213-7800 info@noandt.com www.noandt.com

Nagashima Ohno & Tsunematsu, established in 2000, is widely known as a leading law firm in Japan, and a foremost provider of international and commercial legal services. We represent domestic and foreign companies and organizations involved in every major industry sector and in every legal service area in Japan. We have successfully structured and negotiated many of Japan’s largest and most significant corporate and finance transactions, and have deep litigation strength spanning key commercial areas, including intellectual property and taxation. As of April 1, 2009, we have 331 lawyers (inclusive of 12 foreign-licensed lawyers) capable of providing our clients with practical solutions to meet their business needs. Nagashima Ohno & Tsunematsu has extensive experience and in-depth expertise in handling a wide variety of financial transactions in both the domestic and international financial markets, and in rendering advice and providing services regarding Japan’s financial regulations. Our finance practice includes but not limited to: capital markets, banking, securitization, structured finance, trust, financial regulations, fund management, insurance, acquisition finance, and project finance. Contact: (Ms.) Yuko Tamai (Dai-ichi Tokyo Bar Association).

The National Australia Bank 151 Years New! Expat Yen Loans Build Financial Security Japan is an amazing place isn’t it! It has also been the catalyst for creating many an expat fortune. Dream homes, holiday “weekenders” and substantial investment portfolios have been built by “switched on” expats, off the back of time spent here in Japan. Borrowing in yen, at low interest rates, to fund property investments overseas is a definite winner. All you need are enough funds to put down the deposit, and the cash flow from your salary to make up the difference between the property’s rent and the payments for the loan. In some markets, the property could be cash flow positive, in which case the tenants are paying the loan off for you! These days, you can easily view investment property over the Internet. By employing a reliable local building inspector and a reputable valuer, you can even buy the property without having to leave Japan. The National Australia Bank, celebrating its 151st year, is the leader in Japan in providing yen loans for property purchases in the UK, Australia and New Zealand. For the details on how to make your time in Japan work for you, call “Mr. Real Estate” Richard Henderson at 3241-8923, or e-mail to MrRealEstate@nabasia.com

42 | The Journal | May 2009

03-6213-3800 03-6213-3801 tax.cs@tohmatsu.co.jp www.deloitte.com/jp

Tohmatsu Tax Co. is a leading member firm of Deloitte Touche Tohmatsu, an international association of accounting firms with over 165,000 professionals in 140 countries worldwide. We are a global provider of high-quality professional tax services tailored to the specific needs of multinational investors focusing on Japanese business opportunities. We provide a full range of tax services to our clients, which include many of the largest U.S.-based MNCs operating in Japan. In addition, we have assisted our clients as tax advisors on some of the largest M&A transactions in Japan across a wide range of industries, and provide guidance to a number of Japan’s largest corporations in structuring and organizing their international transactions and tax affairs. We have extensive experience in advising on all aspects of cross-border transactions, including transfer pricing and global employee rewards planning. Our knowledge is more than theoretical; and with our wide-ranging practical experience of all types of tax consulting and compliance, we will go the distance to model tax solutions to fit the commercial needs of our clients. With this approach, we can help you to identify both issues and opportunities, to help you reach your goal of tax optimization in Japan. For more information, please contact Jonathan Stuart-Smith at 03- 6213-3742.

Towers Perrin Japan Tel: Web:

03-3581-6602 www.towersperrin.com

Towers Perrin is a global professional services firm that helps organizations improve performance through effective people, risk and financial management. The firm provides innovative solutions in the areas of human capital strategy, program design and management, and in the areas of risk and capital management, insurance and reinsurance intermediary services, and actuarial consulting. Towers Perrin has offices and alliance partners in major countries across Asia-Pacific, the Americas, and EMEA. More information is available at www.towersperrin.com. Established in Japan 25 years ago, Towers Perrin employs 60 Tokyo-based professional staff providing a full spectrum of HR consulting services. These services range from HR implications of M&A transactions to retirement plans, executive compensation & rewards benchmarking and design to employee research, workforce communication and change implementation strategies. We are a leading consulting firm advising Western and Japanese corporations on realizing strategic business objectives through people. Bringing global best practices to bear while working with local country management and corporate executives to address key HR program design and governance issues, along with program financial reporting and risk management. We also assist organizations to re-align organizational structures to match business plans relevant to recent economic conditions. Please contact Steve Allan at 03-3581-6602 or steve.allan@towersperrin.com with further questions.

Spread the Word

Information If anyone in your valued network is not an ACCJ member yet, help sign them up. Recommend a new member to connect the best in business. Call us at 03-3433-7304 for more information.

Bringing Businesses Together for 61 Years American Chamber of Commerce in Japan

Advocacy

Networking

FDI PORTFOLIO

Healthy Choice Actively making a choice to buy naturally made products is creating a significantly growing foreign market niche in Japan. In response, an Englishlanguage Web site was launched on February 14 to target consumers of all backgrounds. “This project was borne from my love for pure, natural products for health and skin, so establishing our Web site on Valentine’s Day was very fitting,” explains August Hergesheimer, co-founder of Only Pure Products, a brand of Abios K.K. “My company targets foreigners who may have come from a stronger, more vibrant community back in their home cities. Many find it difficult to find similar products here in Tokyo because the Japanese market has

been slower to catch on to the global organic movement, so we wish to serve this niche.” Items available online include handmade skincare items “so pure they can be literally eaten”; and Vege Power Plus, a powdered vegetable supplement priced at ¥9,240 for a two-month supply. “Most of our likely consumers are not price-sensitive when it comes to unique self-care products as ours,” he explains, promising a zero tolerance policy on the use of any chemical or artificial ingredients in the product lineup. Hergesheimer, who has a Ph.D. in nutritional sciences, teamed up with Tokyo-based Swedish chef Jan-Erik Stalsbo to form Only Pure Products.

Gift Experience Gift giving is an established art in Japan. Determining what and to whom usually requires a complex set of decisions. The local launch of global experience-based gift service Smartbox just made the process a whole lot easier. Franceoriginated Smart & Co Group is currently available in 17 countries and generated sales worth $223 million in 2007. Over the past four years it has sold more than two million Smartbox globally, and has now turned its focus to Japan. Launched in December, this product is available at Maruzen bookstores to purchase, and offers consumers the opportunity to choose between 60 different “experience” plans collected from all over Japan. Experiences are categorized into seven different concepts; and each gift box offers specific ideas such as Adventure—and, within

this category, vouchers and brochures for paragliding, sailing and rafting experiences that have signed up as corporate partners are included. Other Smartbox entries include Wellness & Spa, Dining, Unusual Escapes, Charming Getaways, Delicious Retreats, and Dreams & Delights. “Smartbox is not only aimed at those giving presents, but this service can also be offered as a corporate incentive to company employees,” explains Makiko Kim, marketing manager at Smart & Co Japan. “Additionally, this product hopes to revitalize the traditional gift coupon market; and while Smartbox is aimed at mass market, it’s a product that also feels very premium.”

May 2009 | The Journal | 45

In-ﬂight Food A six-month collaboration, started from April, between chef Stéphane Raimbault of L’Oasis, a two Michelin-star restaurant located near Cannes, and Japanese airline All Nippon Airways (ANA) sees First Class passengers offered an authentic Mediterranean menu on longhaul international flights from Tokyo to Europe and North America. Owner-chef Raimbault prepares Western and Eastern menus that reflect his career, nine years of which were spent in Japan. “The service policy, style and nature of the owner and the restaurant match our customers’ demands for a ‘healthier and lighter fusion of oriental modern French’ and our First Class service concept,” explains Mika Hayama, who works in In-flight Services Planning and is responsible for menus on ANA’s transpacific flights. “That is why we

established a tie-up to renew our First Class menu.” The opportunity to market a menu offering food produced by L’Oasis reflects a growing trend for lighter cuisine, states Hayama. “Customers are increasingly looking for in-flight food that is more healthy and light in taste using selected high-quality ingredients with more options and varieties,” she says. “Customers are not looking for fixed course-style menus, but à la carte. Especially for those who fly in First Class and those who are frequent flyers—quality, not volume, is what counts—less is more.” Chef Raimbault is known in Japan after a stint working in a restaurant in Osaka called Le Rendez-Vous in 1982—and through capitalizing on this success by publishing a recipe collection that sold 12,000 copies locally.

Energy-efﬁcient Aircons Osaka’s Daikin Industries, Ltd. and Guangdong Provincebased Gree Electric Appliances, Inc. of Zhuhai established a joint venture, operational since March, to manufacture compressors and molds for air-conditioners. Daikin’s prowess in energy efficiency technology is fused with Gree’s expertise in production and procurement of raw materials and parts to manufacture economical, high-performance invertertype air-conditioners.

46 | The Journal | May 2009

The JV enables the two manufacturers to promote the use of energy-efficient air-conditioners in regions of low market penetration. With Daikin holding the No. 1 position in the global inverter air-conditioning market and Gree the greatest share of the non-inverter market, the JV should improve cost competitiveness and enable a broader range of users for the product. The two parent companies are leading the global air-conditioning industry toward even greater environmental measures.

FDI PORTFOLIO

What Recession? Luxury mobile phone manufacturer and retailer Vertu launched its 19th global store in Japan in February, opening its doors to an upscale threestory establishment in the heart of the Ginza, widely known for its luxury retailers and home of international designer brands. The UK-based mobile phone maker, a business unit of Finland’s Nokia Corp., began accepting advance orders for ritzy

handsets from a choice of 14 models. Each floor of the Vertu flagship store is dedicated to a specific product line, such as the Vertu Ascent, Vertu Signature and Vertu Ferrari. The latter is a phone that features the horse crest of Italian sports carmaker Ferrari, and prices for these hand-assembled mobiles range from ¥670,000 to ¥3.7 million. For those still spending in the current downturn, pre-orders of handsets will be taken for delivery when Vertu Club is available. Those who simply cannot wait until the Vertu Club launch in the second quarter will be able to purchase SIM lockfree 3G handsets of Ascent Ti, Ascent Ti Ferrari or Signature models for voice calls. Ginza customers will be able to see the whole Vertu collection and experience the craftsmanship of a phone that counts many celebrities and uber-rich among its clientele.

Rebranded Hotel It’s not just five-star luxury hotels making a splash in Tokyo. Targeting travelers watching their yen, German hotel group WORLDHOTELS has added the Hotel Metropolitan Tokyo to its collection of properties. Located in the Ikebukuro district and adjacent to the station, the rebranded Hotel Metropolitan Tokyo features 815 guestrooms with high-speed Internet connections, and has a 24-hour business center plus comprehensive conference facilities—the biggest among the 15 meeting rooms accommodates up to 800 theaterstyle or banqueting for 450. “We are delighted to welcome the Hotel Metropolitan Tokyo to our Japan portfolio. The hotel is superbly located in the heart of the city, offers fantastic value, and is ideal for both business and leisure travelers to Tokyo,” says Roland Jegge, vice president for AsiaPacific, WORLDHOTELS. “As we embark on a new era with our rebranding, we see WORLDHOTELS as a key partner in our global sales and marketing

efforts,” says Kenji Shiojima, GM of Hotel Metropolitan Tokyo. When the Steigenberger Reservation Service (SRS)—the company that would later become WORLDHOTELS—was founded in 1970, it was based on a simple premise: establishing a network of likeminded unique hotels, making it easier for travelers to connect with otherwise inaccessible hotels on the other side of the world, and enabling members to share customers and help each other to secure business. Owner of the trendy Buddha Bar hotels and resorts franchise, WORLDHOTELS has 500 individual accommodation options in more than 300 destinations worldwide in three distinct Contact Nicole Fall at nicole@ Collections—Deluxe, First Class and Comfort. All ﬁvebyﬁfty.com if the member hotels keep their own character and you have ideas individuality, but benefit from a centrally managed for this column. reservations system.

May 2009 | The Journal | 47

Rick Weisburd PRESIDENT, ELSS, INC. EDITING AND TRANSLATION SERVICES Text and photos by Tony McNicol

ne lunchtime, on a sunny and crisp winter day, Rick Weisburd is running through graceful sword kata routines of the Kashima Shinryu, a more than ﬁve-centuries-old warrior tradition. None of the participants at the Tsukuba University session are wearing any protective equipment; Weisburd barely blinks as a hefty wooden sword stops inches from his forehead. Weisburd runs his science editing business with equal energy and focus. ELSS was incorporated in 2005 after 10 years as a sole proprietorship. Based in his Tsukuba home, the company includes three staff under Weisburd and his wife Nobuko, who looks after bookkeeping and personnel matters. The work itself is

48 | The Journal | May 2009

subcontracted to professional scientiﬁc translators and editors positioned all over the world and who can meet Weisburd’s exacting quality standards. When he arrived in Japan in 1990, “I ﬁgured I’d come for a year or two,” he says, “and I’ve never left.” He researched the ecology of Kasumigaura, Japan’s second-largest lake, as a postdoctoral researcher at the National Institute for Environmental Studies in Tsukuba, from 1991-97. Weisburd next joined the University of Tsukuba, where he researched environmental policy and taught classes in biology, oceanography and research writing in English. “I encouraged my students to think independently and debate,” says Weisburd. He concluded his academic

BIOGRAPHY Rick Weisburd ■ President, ELSS, Inc. ■ Age: 51 ■ Raised in: Port Washington, New York ■ Education: Ph.D. in Oceanography, University of Hawaii; B.Sc. cum laude in Biological Sciences, State University of New York at Albany ■ Other languages: Japanese, Hebrew ■ Hobbies and interests: Kashima-Shinryu martial art, alpine skiing ■ Family: Married to Nobuko with one daughter, Tamar Mai (14) ■ Favorite saying or quotation (for bicycling): “Helmets are hard, brains are soft: use both.”

career as an associate professor of Biology in March 2006. By then, his scientiﬁc editing and translation business was well

BUSINESS PROFILE

SNAPSHOT ELSS, Inc. ■ Established: September 2005 ■ Mission: Facilitate improved quality and quantity of Japanese research publications through teaching, consulting, and the provision of high-quality editing and translation services. ■ Key clients: Academic and corporate researchers ■ Industry served: Research ■ Number of staff: 5 ■ Tel: (029) 856-0713 ■ Email: elss@elss.co.jp ■ http://elss.co.jp/

established. Three years ago, the Weisburds built their present house with a dedicated office. One hour by train or car from central Tokyo, they live and work between rice paddies and a botanical garden, and have space for a dog pen and small wine cellar. The house was designed for high-energy efficiency—with good insulation and seal, a thermal solar-heating system on the roof, and tubular skylights that concentrate sunlight for indoor lighting. ELSS is growing steadily, with no detectable effect from the current global recession, according to Weisburd. Their new Web site recently went live—allowing for online submission of assignments, letting them handle 20-30% more outsourced business without additional company staff. “Within the next five years, we are probably going to outgrow our existing office space,” says Weisburd. However, they are committed to steady, relatively risk-free expansion. “We are trying to grow the company in a way that is fair to our staff, subcontractors, and customers,” he adds, “and makes a comfortable livelihood for ourselves. “It’s good if you start working on the side before you blow off your day job,” he advises potential entrepreneurs.

“Keeping your day job gives you the security to get your feet wet with minimal risk. The big thing is to be open to opportunity.” The localization of an entrepreneurial enterprise brings special challenges. One can be your Japanese client’s reluctance to complain. “You may not get sufficient feedback to recognize when your customers are dissatisfied,” says Weisburd, in order to deliver a better product. “We have had very little trouble getting snaked,” notes Weisburd. Customers have reneged on payments only three times over the last 13 years. He attributes this to most Japanese being fairly honest. Last year, the company was audited for the first time. “There were a couple of small things that we needed to fix,” says Weisburd. The biggest surprise was that the tax office instructed ELSS to take withholding tax from the gross pay of its overseas translators. The Weisburds wrote a formal rebuttal, which the authorities accepted. He says the entrepreneur-taxman relationship in Japan tends to be far less adversarial than in the U.S. “I don’t feel the tax authorities here are looking to nickel and dime you to death,” he says. Most mornings, Weisburd is up at 6 a.m. to prepare to walk the dog and accompany his 14-year-old daughter to the bus stop. By 8 a.m. he is at his desk. Work goes on until 7 p.m. most days, although he sometimes rises at 3 a.m. or 4 a.m. to start earlier on the busiest days. Luckily, his bedroom is just down the corridor. The Kashima Shinryu keeps Weisburd grounded and focused, even during the most hectic stretches. He has been practicing the martial art for about eight years, and is now at okuden, the fifth of seven ranks. He practices about

“There’s nothing quite like a sword flying toward your head to grab your attention” once a week. “There’s nothing quite like a sword flying toward your head to grab your attention. Kashima Shinryu requires cultivation of your ki [spirit]. That has an effect on the rest of your life,” says Weisburd. “Self-confidence, personal power and the way you interact with other people.” ■

Tony McNicol is a freelance journalist based in Tokyo.

May 2009 | The Journal | 49

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BEHIND THE BOOK

The Return of

Depression Economics

and the Crisis of 2008 By Paul Krugman W.W. Norton, 191 pp, $24.95 Reviewed by Tom Baker Since late last year, you’ve probably heard the following comment more times than you could count: “We’re facing our greatest financial crisis since the Great Depression.” Paul Krugman’s latest book, The Return of Depression Economics and the Crisis of 2008, isn’t just another voice in the chorus. He does call the current situation “reminiscent of the 1930s,” but he also compares the present-day U.S. economy to that of Japan’s “Lost Decade” (another common comparison, roughly the 1990s) and to less widely discussed past crises such as the Panic of 1907. There was no Federal Reserve in 1907, but there were “national banks that were subject to a modest degree of regulation.” Alongside those financial institutions, there arose unregulated bank-like entities called trusts. The trusts took on greater risks and paid higher returns—until the collapse of one led to a run on the others that plunged the U.S. economy into a deep recession. Krugman writes that a similar “shadow banking system” arose, beginning in the 1980s, in the form of devices such as auction-rate securities, which are essentially also similar in function. Like trusts, they had come to hold a significant fraction of national wealth by the time they collapsed. They “seemed to offer a better deal because they were able to operate outside the regulatory system … only to become an epicenter of financial crisis.” The Nobel Prize-winning economist and Princeton University

professor knows whereof he speaks. Krugman, as a lightningrod columnist for The New York Times, knows how to put things in layman’s terms. This short but wide-ranging book, substantially updated from a similar volume he penned 10 years ago in response to the Asian currency crisis, is written in a mode that keeps arcane jargon to a minimum and, instead, effectively embraces folksy similes. For example, he describes a recession in miniature through the true story of a babysitting co-op in Washington, D.C. that issued coupons that its members could redeem among themselves for hours of childcare. Many of the young couples decided instead to stay home and save their coupons for future use, rather than going out on the town right away. However, by refraining, they reduced the opportunities for other couples in the co-op to earn babysitting coupons, leading to a greater widespread reluctance to go out. There was “too little spending on real goods [babysitting time] because people were trying to accumulate cash [babysitting coupons] instead.” Krugman returns to this example repeatedly. His discussion of the Lost Decade indicates that weak demand failed to keep up with the economy’s capacity. Even the Bank of Japan’s drastic lowering of interest rates couldn’t jump-start the economy—as if it were the dead of winter, and couples didn’t want to go out no matter how cheap babysitting coupons became. While the book endorses regulatory reform and major stimulus spending as ways out of the Tom Baker is a staff writer present mess, the author’s extended focus is on at The Daily how we got into it in the ﬁrst place. ■ Yomiuri. We are giving away 3 copies of The Return of Depression Economics and the Crisis of 2008. Simply e-mail editor@paradigm.co.jp by May 18. The winners will be picked at random. Winners of Billion-Dollar Lessons: Jeff Graves, Index Consulting, Inc.; Dr. Andreas F. Stange TÜV SÜD Japan Ltd.; Sarah Blaubaum, Trade Queensland Office Tokyo.

May 2009 | The Journal | 51

Advocacy Update ACCJ Viewpoints are the core products of ACCJ Advocacy. An ACCJ Viewpoint is a brief paper, generated by a committee, that expresses the Chamber’s official position on a specific issue. Viewpoints are primarily used to express opinions on current policies, policies under consideration by the Japanese and/or U.S. governments, and policies under discussion in bilateral or multilateral forums. They are also used to raise new concerns about issues not currently on the Japanese government agenda. Allow Initial Disclosure Requirements to be Satisfied Through the Delivery of Summary Prospectus Investment Management Committee Valid Through November 2009

Recommendation The American Chamber of Commerce in Japan (ACCJ) urges the Government of Japan and the Financial Services Agency (FSA) to implement reforms that would allow the initial disclosure delivery requirement for investment trusts and investment companies (collectively known as “investment funds”) to be satisfied through the delivery of a summary prospectus alone, with the full prospectus and upon-request prospectus available online or for delivery upon request.

Improve the Urban Parking Environment for Distribution Vehicles Transportation and Logistics Committee Valid Through November 2009

Recommendation The American Chamber of Commerce in Japan (ACCJ) urges the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), the National Police Agency (NPA), police stations in major cities, and local autonomies including the Tokyo Metropolitan Government to: (1) provide additional parking spaces for distribution vehicles in urban centers where enforcement of the parking regulations in the revised Road Traffic Law that came into force in June 2006 has dramatically hampered the activities of distribution vehicles, and (2) until such time as there are adequate parking spaces for distribution vehicles, provide appropriate exemptions from parking regulations for distribution vehicles. (In this Viewpoint, distribution vehicles refer to vehicles used by commercial distribution firms, other businesses, and nonprofit organizations (NPOs) for making pick-ups and deliveries, and “nisabaki” refers to pick-up, delivery, and loading-and-unloading activities in which the driver of the delivery vehicle leaves the vehicle for a short time.) The MLIT has tried to improve urban distribution by increasing the number of nisabaki zones and by coordinating measures implemented by its various bureaus in its list of “Important Policies” issued on August 4, 2006; as well as by creating a consultation group. The consultation group issued a report called “A Comprehensive Plan for Urban Area Distribution” in March 2007. The ACCJ is pleased that the plan recognizes that it will take more than just modifying the way parking regulations are enforced to solve

parking problems and that the plan calls for other measures to be implemented in order to improve the situation. The ACCJ also supports the plan’s recommendation that police stations with responsibility for traffic management establish parking enforcement guidelines that take into account the realities of distribution vehicle operations in urban areas. However, the efforts described above are not enough. Parking problems continue to be a major impediment to the efficient operation of distribution vehicles in urban areas. While the ACCJ strongly supports the NPA’s view, released in January 2007, which states “(the National Police Agency) has been reviewing parking regulations and has been approaching (concerned parties) to increase parking spaces in consultation with concerned organizations and local residents when more parking spaces are necessary, in relation to local and road environment and transportation conditions,” the ACCJ urges the implementation of the following specific measures: 1. Increase the number of short-duration (30 minute) loading and unloading zones on major streets. These zones should be designated with easy-tounderstand street markings and parking wardens should check frequently for unauthorized vehicles and for vehicles that exceed the time limit. 2. Increase the number of off-street parking spaces available for distribution vehicles. These spaces must have adequate width and height for at least a standard two-ton delivery van (i.e., at least two meters wide, 6.1 meters long, and three meters high). 3. Modify the Parking Law and other relevant laws, orders, and regulations to require that most commercial buildings have dedicated parking spaces for distribution vehicles. 4. Where appropriate, allow distribution vehicles to load and unload goods in restricted areas for brief periods (e.g., 20 minutes) as allowed in Sapporo. 5. Establish a process whereby recommendations from distribution vehicle operators can be quickly incorporated into the planning for parking spaces in urban areas. Until enough parking spaces are provided for distribution vehicles, the ACCJ also urges that the NPA, the Tokyo Metropolitan Police Department, police stations and local Public Safety Commissions be instructed to introduce an “observation period rule” under which parking enforcement personnel wait at least 10 minutes before ticketing a distribution vehicle parked in a restricted zone. This would allow personnel to confirm whether a vehicle is attended by a driver and whether loading or unloading activity is actually taking place. The United Kingdom is well known for its strict control of illegal parking, but its enforcement policy includes an “observation period rule” under which parking wardens do not issue tickets immediately but instead wait to see if a parked vehicle is “attended” and if loading or unloading is actually taking place. As an example, the observation period in the Camden, Richmond, and Westminster sections of London is 20 minutes.

Tax Reform for Enhanced Financial Competitiveness and Sustainable Economic Growth ACCJ Financial Services Forum Valid Through October 2009

Recommendation The Government of Japan has committed to undertaking dramatic reform of Japan’s tax system, establishing, in its 2008 Basic Policies (Honebuto), a goal of reforming the tax system to best stimulate productivity and bolster economic growth. The American Chamber of Commerce in Japan (ACCJ) strongly supports this objective. In this Viewpoint, the ACCJ has outlined specific tax reform measures based on global best practices that, if taken, would help achieve the government’s goal of strengthening Japan’s productivity and economic growth as well as promote innovation and new investment. In addition, as the policy debate on reform of Japan’s tax system progresses, the ACCJ urges the government to ensure that the dialogue is open and transparent, providing meaningful opportunities for key stakeholders, including foreign businesses, to participate in the process. More specifically, the ACCJ calls on the Government of Japan to: • Lower the statutory corporate tax rate within a couple of years to below 30%, targeting a level equivalent to that of Germany and the United Kingdom; • Review the current policies regarding the Defined Contribution (DC) Pension Plan, including: • Increasing the limits on tax deductible contributions; • Allowing employee contributions; • Allowing withdrawals prior to age 60 under certain conditions; and • Introducing a DC pension for public workers. • Extend the loss carry forward period to greater than 10 years, targeting a length consistent with norms of other G7 countries such as the United States and Canada; • Consider comprehensive market-based reforms of financial and securities tax systems with the aim of encouraging the shift from savings to investments and enhancing the international competitiveness of Japan’s financial and capital markets; • Amend its law to ensure that its consumption tax regime is consistent with global best practices identified by international economic organizations including the OECD and the IMF and implemented in leading countries such as the UK, Germany, and France; • In particular, Japan’s consumption tax law and related regulations should be revised to ensure neutrality in the treatment of the sales of financial services offered through third-party sales agents and to allow VAT grouping for financial service providers that are wholly-owned affiliates. • Abolish the documentary stamp tax.

Released ACCJ Viewpoints can be read in full in the Advocacy section of www.accj.or.jp 52 | The Journal | May 2009

ACCJの「意見書」は、特定の問題に対してのACCJの公式見解を表明する委員会が作成した簡潔な提言書であり、提言活動の中核を成しています。現行の政策や、日本又は米国政府で検討中の政策、二国間もしくは多国間で協議中の政策についてだけでなく、新たな関心を高めるために現在日本政府の課題となっていない問題についても意見を述べています。

交付目論見書の更なる簡素化に向けて投資運用委員会

に関する実態を踏まえ、駐車取締りに関するガイドラインの策定等柔軟な運用が求められる」と提言されていることを称賛する。しかし、上記の提言だけでは十分と言えず、現在も依

金融の競争力強化と持続可能な経済成長に向けた税制改革を ACCJ金融サービスフォーラム

然として、駐車問題は主要都市内において集配車両が効

2009年11月まで有効英語正文

率的な作業を行う上での障害となっている。ACCJは、警察庁が2007年1月に、「地域・道路の環境や交通実

2009年10月まで有効英語正文

態等を勘案して、駐車場所を確保することが必要と認め

提言在日米国商工会議所（ACCJ）は、日本政府および金融庁に対して、次の改革実施を要請する。すなわち、投資信託および投資法人（両者をあわせて「投資ファンド」と呼ぶ）に関する当初開示交付要件は、要約目論見書のみの交付で充足されることとし、交付目論見書および請求目論見書についてはオンラインで入手可能にするもしくは要請に応じて交付することができるようにすること。

られる場合には、関係機関や地域住民等と連携しつつ、駐車規制の見直しや駐車施設の整備の働き掛けを行っている」との見解を示したことを強く支持するとともに、下記の具体策を提言する。 1. 短時間（30分）用の荷さばき場を主要道路に増設。集配車両用の路上荷さばき場は分かりやすい標示で示し、民間監視員は集配車両でない車両と時間制限を越えた車両を頻繁に取り締まる。 2. 集配車両用の路上以外（路外）の駐車場の数を増や

市街地における集配車両による作業の円滑化をトランスポーテーション・ロジスティックス委員会 2009年11月まで有効英語正文

す。そのような駐車場は少なくとも、標準の集配用2トントラックが入る適当な幅と高さを持つスペースが必要である（すなわち、少なくとも2メートルの幅、6.1メートルの長さ、3メートルの高さが必要である。） 3. ほとんどの商業ビルには集配車両のための駐車場インフラ施設が設けられるよう、駐車場法等関係法令、規則を改正する。 4. 札幌で認められているように、適切な場所では全ての集配車両が駐車禁止区域で短時間（例えば20分）の

提言

荷さばきができるよう許可する。

在日米国商工会議所（ACCJ）は国土交通省、警察庁、

5. 事業者の意見が市街地での駐車スペース整備計画

主要都市における警察署、東京都を始めとする地方自

に迅速に反映されるフレームワークを策定する。

治体に下記を要請する。（1）2006年6月の改正道路

またACCJは、集配車両のための必要な駐車スペース

交通法による駐車規制の施行により大幅に集配作業が

が確保されるまで、駐車監視員が駐車禁止区域に駐車

妨げられている市街地に集配車両用の駐車場インフラ

している集配車両に駐車違反の標章を取り付ける前に、

施設を増設、そして（2）集配車両用の十分な駐車場の

少なくとも10分間の猶予をもたせる「観察期間のルー

場所が確保されるまでの間、集配車両に対して適切な

ル」を取り入れるよう警察庁、警視庁、警察署、都道府

駐車規制の免除（この意見書では、集配車両とは集荷・

県公安委員会に要請する。このような時間を設定するこ

配達を行う商業配送会社・その他の会社・非営利団体

とにより、対象車両が放置車両ではなく運転手がいる

（NPOs）の車両を示す。また荷さばきの定義としては

のか、荷さばき作業中なのかを確認することが可能にな

集荷、配達、荷の積込み、荷降ろし、一時的に運転手が

る。英国は駐車違反の取締りが厳しい国として知られて

集配車両を離れることを想定する）。

いるが、「観察期間のルール」も取り入れており、駐車監

国土交通省は、2006年8月4日に発表した重点施策

視員は集配車両に対して直ちに違反を確認するのでは

の中に、荷さばき場を増設し、また同省の関係各局によ

なく、駐車車両には運転手がいて、荷さばき中であるか

り取られている対策を連携することを明記し、都市内物

を確認する。例として、カムデン、リッチモンド、ウェスト

流の向上を図った。また都市内物流に関する研究会を設

ミンスターなどのロンドン地区では20分の観察期間を

立し、2007年3月に都市内物流のトータルプランが策定

設けている。

された。ACCJは、そのプランでは「駐車取締り強化だけでなく、他の対策も組み合わせて駐車問題に取り組む必要」があり、「交通管理者である警察は、都市内物流

提言日本政府の「経済財政改革の基本方針（骨太の方針）2008」では、生産性向上を促し成長力を強化するため、政府が抜本的な税制改革に取り組むとしている。在日米国商工会議所（ACCJ）はこの政府の方針を強く支持し、この意見書では、グローバル・ベスト・プラクティスに基づいた具体的な税制改革施策を提示する。この施策が導入されれば、日本の生産性向上や経済成長だけでなくイノベーションや新たな投資を増進することになるであろう。さらにACCJは、日本政府に対して、税制改革に関する政策議論を進めるにあたり、外国企業を含む重要なステークホルダーに有意義な参加の機会を与えるなど、議論のプロセスを公開し、透明なものとすることを要請する。日本政府に対する具体的なACCJの提言は以下の通り。

• 法定法人税率をドイツや英国並みの水準にすることを目標とし、2、3年以内に30%未満に引き下げる。

• 確定拠出年金に関する現行制度を以下の措置を通じて見直す。

• 非課税限度額を引き上げる。 • 従業員による拠出を認める。 • 一定条件下での、60歳前の積立金引出しを認める。 • 公務員に対して確定拠出年金制度を導入する。 • 米国やカナダ等のG７加盟国の基準に合わせ、欠損金の繰越期間を10年以上に延長する。

• 貯蓄から投資への移行促進と、日本の金融・資本市場の国際競争力強化を目指し、金融・証券税制に関する包括的かつ市場に立脚した改革を検討する。

• 経済協力開発機構（OECD）や国際通貨基金（IMF）に代表される国際機関が定義し、英国、ドイツ、フランスなどの主要国が導入しているグローバル・ベスト・プラクティスに整合するように、日本の消費税制度を法改正する。

• 特に、第三者代理店を通じた金融商品の販売において中立性を確保するために、また金融サービス会社が完全子会社である場合にグループ課税制度を導入すべく、日本の消費税法および関連規制を改正する。

• 印紙税を廃止する。

ACCJが公表した意見書の全文は、www.accj.or.jp のアドボカシーセクションでご覧頂けます。 May 2009 | The Journal | 53

IN THE FINAL ANALYSIS

Three-legged Stool Holding up Well We can all feel the economic ground shaking beneath ACCJ members. But how is the three-legged stool of advocacy, information and networking holding up under these tough conditions? I think it is safe to say that we’re holding up well. We may have become a little more wobbly than we might like in the membership area—where we have seen a drop over the past several months that tracks with the pull back we see in other organizations and institutions that focus on the foreign community in Japan. But our activity level remains as high as ever, thanks to outstanding leadership and tireless dedication at the committee level. Since networking, information and advocacy all flow together in the way ACCJ provides value to members, it is often hard to know which leg of the stool we are talking about. For example, events are both networking and information gathering activities and sometimes have an advocacy component. Rather than slowing down along with the economy, the number of events ACCJ has put on continues at record levels. We ended a record year in 2008 with 529 events and a total of 18,933 attendees. November and December, already well into the economic downturn, were record months in both metrics and the trend continued through January of this year. In February and March we seem to have begun to see a new pattern emerging; and by the end of the first quarter the total number of events was up 21%, but attendance had fallen 2% below last year. In talking to members, it appears that committees are very eager to create opportunities to get members together, and there is a wide variety of topics and activities that fulfill the hunger for information. Coupled with the smaller overall attendance, we see a real trend to more, but more focused, events. Our advocacy activities are as vigorous as ever. In Japan’s current uncertain political environment, there has been a proliferation of politicians’ comments that make us worried about the direction of Japanese government policies. At least at the level of rhetoric, the atmosphere is much less congenial. And policy positions are being aired that could be quite damaging to American business interests. The need for a strong advocacy presence is greater than ever. We know that; and I think are responding well. At the committee and staff level, we have stepped up our efforts to monitor policy developments. One direct result of this is that in the first quarter of the calendar year ACCJ had already issued 11 public comments. This compares to the 18 we issued all of last year. And once we got to the execution stage, our Diet Doorknock improved well beyond our planned scope. None of us expects the coming months to be easy for the Chamber and many of its member companies. Samuel H. But by all measures we have, it is clear that the ACCJ’s Kidder is value proposition has not fallen along with so many ACCJ Executive Director. other economic indicators. ■

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