************************************************************************* Issue 27 [October 2008] OCCI e-Magazine http://www.osaka.cci.or.jp/e/index.html ************************************************************************* [For the READERS' ATTENTION] With the enforcement in December 2008 of the revised "Act on Regulation of the Transmission of Specified Electronic Mail", we at the OCCI e-Magazine are required to have the Readers' contact details registered with us in order to continue our transmission to you. We assure you that the personal information provided in the contact details will be used by us only for transmission of OCCI e-Magazines and for directly related matters and not for any other purpose. Please provide us at an early opportunity with your details in a form similar to the following; For Registration with OCCI e-Magazine: Name of Company/ Organization: E-mail Address: Name of Person in Charge: Position/Department: Thank you for your cooperation. Chief Editor Yasutsugu Kohzuki ================================================================================== [CONTENTS, October 2008] 1. Trends of Osaka/Kansai Economy --- amid all the glooms, 'investment in plant and equipment' stands out exceeding the nationwide average 2. "Osaka Business Networking Club" founded on October 2 --- for companies having joined the Osaka-Kansai markets 3. KEIHAN's New Subway Line through NAKANOSHIMA Island opens --- connecting direct to Kyoto, to add to Osaka-Kansai railway network 4. OCCI International Division report on VIP visitors ========================================================================= 1. Trends of Osaka/Kansai Economy --- amid all the glooms, 'investment in plant and equipment' stands out exceeding the nationwide average (Figures cited are based on those of July 2008 compared with the previous year unless otherwise mentioned.) Trends of the Osaka/Kansai economy continue increasingly gloomy. Amid the worldwide economic slowdown, most businesses' motivation and earnings are oppressed with anxiety for the future, lessening consumer spendings and most of all the inability to sufficiently pass the increase of costs onto products or services. According to our Business Survey Index showing the average business outlook or sentiment by corporate managers, their mind is deteriorating with no hope for recovery within the year. Despite such glooms, only 'investment in plant and equipment' is exceeding the nationwide average with the Osaka Bay Area standing out. Also exports of semiconductor parts and steel to Asia are still steady recording increases for 76 consecutive months. For personal consumption, large retailers (department stores, supermarkets) are not doing too well with their seasonal clearance sales etc. remaining inactive. On the other hand, partly because of increased person-to-person (not through vending machines) sales of cigarettes (with the introduction of the checking system on adulthood), convenience stores' sales are steady with increases for 3 months in a row. Construction-related indexes are less encouraging. Except Hyogo Prefecture with large-scale engineering works (Hanshin Expressway, Shinminatogawa Tunnel), Kansai's public work contract amounts or values are down in total with all other prefectures still rather quiet. Housing starts totally are up but construction of condominiums/flats remains inactive. Reflecting all these situations, bankruptcies (in August particularly) are increasing mainly in the construction and real estate businesses. As for employment, the rate of the actually unemployed is around 4.5% with job openings standing less than the demand, for 8 consecutive months. Domestic Trends of Economy (BSI indexes) (Business sentiment expressed by Osaka/Kansai companies surveyed) Results Prediction Jan-Mar 2008 Apr-Jun 08 Jul-Sep 08 Oct-Dec 08 Jan-Mar 2009 Totals -43.9 -48.6 -66.2 -55.8 -42.2 Large Corps -39.2 -48.2 -64.1 -52.6 -36.5 SMEs -46.6 -49.3 -67.6 -57.9 -45.7 * The above BSI indexes show the differences between the plus and minus trends as compared with those of preceding 3 months. (Source: the 31st Economic Survey by OCCI/ KANKEIREN) ======================================================================== 2. "Osaka Business Networking Club" founded on October 2 --- for companies having joined the Osaka-Kansai markets Through the collaboration of the Osaka Prefecture, City of Osaka and the Osaka Chamber of Commerce & Industry, "Osaka Business Networking Club" (OBNC) was founded on October 2, 2008. The aim of OBNC is to promote networking among such companies that O-BIC and IBPC OSAKA-INVESTMENT PROMOTION CENTER have supported in setting up a base of operations in Osaka, as well as to provide these companies with more opportunities to further develop their businesses. 50 representatives of 45 companies entering the Osaka-Kansai markets including 31 foreign-affiliated companies have participated in the event commemorating the founding of OBNC. On behalf of the sponsors, Mr. Kunio Hiramatsu Mayor of Osaka gave an address and emphasized that "Osaka abounds in assets formed by Osaka citizens playing the leading role, such as its tradition, culture and industries. Making the most of our potentials, both public and private sector will continue to make concerted effort to develop and support industries" and encouraged s uch companies to actively participate in OBNC's projects. In the lecture that followed, Mr. Shinichi Fukushima (Senior Managing Director and Representative Director, PANASONIC Corporation) introduced the main tasks to focus on in the company's global business strategy including the renaming in view of the well-known brand name or production of flatscreen model TV sets etc. At the free networking session, appreciation was expressed by these companies for the convenient access to other parts of Asia and also for concentration of manufacturers, as well as for the unified system by public and private sectors to invite investments. Also their expectations were voiced for measures for revitalization of Kansai economy and for offering business opportunities and conducting meetings for business talks. ======================================================================== 3. KEIHAN's New Subway Line through NAKANOSHIMA Island opens --- connecting direct to Kyoto, to add to Osaka-Kansai railway network On October 19, the new Nakanoshima line of Keihan Electric Railway has opened. Now access is largely facilitated to Nakanoshima Island, Osaka's top business area, and the Osaka-Kansai railway network is further strengthened with direct connection to Kyoto through the 4 new stations. Nakanoshima, as the heart of Osaka is host to major facilities and head offices, such as the Osaka International Convention Center where the Finance Ministers Meeting of the G8 Summit 2008 was held, Rihga Royal Hotel, Osaka University Campus Innovation Center, Osaka City Hall, Bank of Japan Osaka Branch, Kansai Electric Power Co., Inc., the Asahi Newspaper and other leading corporation. On October 17, in commemoration of the new subway line using (wood for the first time in the construction of Japan's subway stations) Canadian cedar in building the stations, Kansai Canada Celebration (sponsored by OCCI, Kansai Canada Business Association) was held when a great monument of INUKSHUK (traditionally inherited by Canadian Inuits) was presented to Watanabebashi Station. With the opening of this new subway line, Nakanoshima Island aspires to further success as a highly convenient international area through improving on existing commercial facilities or open spaces and also further accumulating international businesses from both abroad and other parts of Japan. ======================================================================== 4. OCCI International Division report on VIP visitors * September 30 (Tue) Mr. Supot Isarankura Na Ayudhaya, Consul General Royal Thai Consulate-General in Osaka * October 1 (Wed) Mr. Kris Peeters, Minister President of Flanders Belgium ========================================================================