Japan’s Industrial Development

3.3. Japan’s Industrial SlowdownJapan’s Industrial SlowdownRising Importance of the Service IndustryChange in Work AttitudeAsian Currency CrisisGlobal Competition

Japan’s Industrial Development

3.3. Japan’s Industrial SlowdownJapan’s Industrial SlowdownRising Importance of the Service Industry

1980s : Japanese became richerUsed more services than goodsGrowth in service sector resulted in labour shortage in mnfg ind

Japan’s Industrial Development

3.3. Japan’s Industrial SlowdownJapan’s Industrial SlowdownChange in Work Attitude

Post-war generation better educated; different work attitudeDo not find wage system linking pay rise to length of service attractiveMany have interests outside their workJapan Productivity Centre survey : Fewer employees want to work for the same company until retirement22% in 1975; 16% in 1992This has affected productivity in mnfg sector

Japan’s Industrial Development

3.3. Japan’s Industrial SlowdownJapan’s Industrial SlowdownAsian Currency Crisis

Late 1990s : exports of Jap products to Asian countries fell 21% - Asian currency crisis1997 : Asian countries such as South Korea and Indonesia hit by currency crisisTheir currency value fell against the US$Thus more expensive for locals to buy imported goods that are paid in US$Sales declined in these countries – less importsJapan exports more than 1/3 of its goods to Asia – badly hit

Japan’s Industrial Development

3.3. Japan’s Industrial SlowdownJapan’s Industrial SlowdownAsian Currency Crisis

Several factories in Japan suffered huge losses – unsold goodsJap assembly plants in Asian countries similarly affectedMade Jap companies less competitive

Japan’s Industrial Development

3.3. Japan’s Industrial SlowdownJapan’s Industrial SlowdownGlobal Competition

Rising challenges from China, Taiwan and USCut into traditional Japanese marketsTheir goods have also entered Japan1998 : Over-supply of computer partsFierce competition from NIEs pushed prices downMade it less profitable for Jap companies to produce computer parts

Japan’s Industrial Development

4.4. Future of Japan’s Future of Japan’s Manufacturing IndustryManufacturing Industry

Japan must continue to live by its witsHave to continually upgrade her technology and create new productsCompanies that are far-sighted, innovative and adaptable will do better

Japan’s Industrial Development

5.5. ConclusionConclusionJapan has come a long wayTransformed from a war-torn country into a highly industrialised countryMainly the result of efforts by the Jap govt, people and private companiesJapan’s experience in industrial development provides many valuable lessons for countries in the areas of industrial planning & development

The Straits Times 4 Mar 2002

The Straits Times 4 Mar 2002