September 10, 2010

JAMA Welcomes Cabinet Decision on Economic Measures

Toshiyuki Shiga, Chairman


JAMA welcomes the Cabinet’s decision to take a strong stance on the sharp appreciation of the yen, as it works to develop solid underpinnings for progress in vital economic sectors including employment and investment. These initiatives are necessary in order to address concerns over not only the risk of a decline in business activity resulting from the yen’s protracted rise in value, but also the potential for slowdowns in overseas economies. We look forward to the implementation of policies that will be immediately effective in positioning Japan’s economy on a recovery track.

The convening yesterday of the inaugural meeting of the New Growth Strategy Action Promotion Council was also encouraging. We understand that the Council, under instructions from Prime Minister Naoto Kan, is scheduled to study the introduction of a lower corporate tax rate and other measures to reduce the tax burden on businesses, as well as the stronger promotion of economic partnership agreements. This is further welcome news.

Meanwhile, a downturn in Japan’s auto market is projected following the termination of the government’s subsidy program for the purchase of eco-friendly vehicles. The impact of the strong yen on domestic production and jobs will compound the decline in vehicle demand, and is thus the source of a growing sense of crisis at JAMA.

We urge the government to continue its close monitoring of currency-market and business trends so as to be able to respond rapidly to them with flexible measures targeting trade, business stimulus, and other key areas of the Japanese economy.