INTERVIEW: Japan Biz Leader Urges Govt to Support Small Firms

Tokyo, Jan. 3 (Jiji Press)–A Japanese business leader has called on the government to take measures to support small companies, which face an increasingly tough business environment. In an interview with media organizations including Jiji Press, Ken Kobayashi, head of the Japan Chamber of Commerce and Industry, said that small companies have been forced to raise wages beyond their capacity to pay amid labor shortages and rising prices. The government and the Bank of Japan need to put into place measures to curb price rises, such as correcting the yen’s depreciation, he said. The Japanese economy is expected to “grow moderately this year on the back of continued pay hikes and robust corporate capital spending,” Kobayashi said. Meanwhile, small firms’ material procurement costs are rising due to the yen’s decline, he noted. The yen’s depreciation is “a major factor behind inflation,” Kobayashi said, adding, “I want corporate managers’ sense of helplessness to be dispelled.” Kobayashi made these remarks as the environment surrounding small companies continues to be severe, with inflation outpacing pay hikes and real wages remaining on a downtrend. He also showed concern about the possibility of an increase in the number of aged corporate managers who give up business succession and choose to close their businesses. While showing his determination to work to help small companies improve productivity and profitability, Kobayashi called on large companies to optimize transaction prices through appropriate transfers of costs. On how to improve the environment to accept foreign workers, Kobayashi stressed the need for the establishment of a related basic law. “It is also important to eliminate the language barrier,” Kobayashi added, proposing that Japanese language education for foreign workers be strengthened. END [Copyright The Jiji Press, Ltd.]