Monday, May 23, 2016

The First Ever Outdoor Public Screening in Sendai by TUFSA


The biggest international festival of Tohoku is back and it is even bigger this year! The 31st Tohoku University International Festival (TUIF) was back on 22nd May in the lawns of the Hagi Hall and with food from more than 26 countries.

This year, for the first time, TUIF conducted a Pre Event in order to promote the festival and after a lot of brainstorming with subsequent elections, ‘The Invention of Dr. Nakamats’ was chosen to be screened for this event. Yet, several other sub events were planned too.

Hosted by TUIF Pre-event team, the Movie Night event on May 15 in the Multi-Purpose area of the Sendai International Centre Subway Station. It was flagged off with Naomi Hadisumarto, an Applied Marine Biology Student at Tohoku University by presenting a talk on YSEALI (Young South East Asian Leaders Initiative) Generations: Oceans where she put forward the challenges that our oceans face today and how people (especially youth) can contribute to addressing of such challenges. This project has been introduced in ASEAN Countries by President Obama to involve the next generation in key leadership roles.

This was followed by Kiya Okhlopkova presenting ‘Nankin Tamaso Dare’, a traditional Japanese Performing Art as she took the audience on a ride through her performance around the very spirit of Japan through the Soba restaurant in Sendai, Amida Nyorai, Nagoya and Rainbow Bridge amongst many others.

The choice of this 2009 documentary directed by Kaspar Astrup Schröder was essential as the innovative ideas of Dr. Nakamatsu has undoubtedly revolutionised the way people see their daily lives. From floppy disks to pen that writes under water, these inventions have simplified the daily lives. It inculcates a sense of scientific temper and makes us realise the very foundation of why science is necessary.

As the audience enjoyed movie time snacks which consisted of Pizza, Nuggets, Popcorn and Drinks, the committee was also successful in arousing the interest levels for the festival on May 22 amongst people.

The movie night not only enhanced the idea of international festival but brought together Japan and the rest of the world; weaving them together under one single roof.

WE LOVE DR. NAKAMATs-TWO  ^^✌


Written by Trishit 

Saturday, May 7, 2016

From Rumble to Riches: The Rise and Rise of Japan (1945-1973)

FISNet Casual Conversation by Trishit 

Within 25 years since the end of WWII, Japan had occupied the world as its second largest economy, only behind the United States. The period between 1945 and 1973 marks the exponential growth of Japan and its establishment as a modern world power.

“Japan was the famous high economic growth country,” says Mr. Suzuki, Vice-President, FIDEA Holdings as he looks back at Japan’s post-war economic growth. In his casual conversation session with students from Tohoku University, he discussed the period between 1945 and 1973 and comparing it with the Chinese growth in the 21st century.

The period between 1945 and 1965 was tiresome. Initially, Post-WWII Japan was governed by the General Headquarters (GHQ) from US. The GHQ brought about several agrarian reforms and initiated the process for dissolution of conglomerates. Mr. Suzuki remarks the example of dissolution of Yasuda Bank under this policy and the subsequent formation of Fuji Bank. He also remarks the unification of Mitsui and Sumitomo groups and the breakdown of the holding company that had held Mitsubishi and Nippon Ship Holding together.

In 1949, Joseph Dodge introduced the stabilisation policy which included a balanced budget and fixed the exchange rate at 360 JPY to 1 USD as a standard. With the formation of People’s Republic of China in 1949, the policy was changed so as to combat the rise of  a communist country. The idea of ‘No need to grow more’ for Japan collapsed eventually.

By the end of the Korean War in 1950, there was special procurement for Japan which re-established its production levels to the pre-war times. Japan was introduced to capitalism by the US and the capital assets were divided between the companies. Yet, since the capital ratio in US and Europe was higher at 40-50% in a contrast to Japan’s 20-30%, the former was safer. Enhancing one’s capital meant more time and lending was easier. This is the point where the Japanese bubble economy began to take shape.

Japanese economy grew at a remarkable 9.7% between 1952 and 1972. The Ikeda cabinet introduced the ‘National Economy Doubling Plan’ in 1960 and 3 sacred imperial treasures for people became clear: Monochrome TV, Washing Machine and Refrigerator. A similar approach has been recently adopted by China.

By the time 1964 arrived, Olympics was the new feather in the hat. With the introduction of Tokaido Bullet Train (Though it brought its own exhaust gas and smog problems), Japan entered the Izanagi Economic Boom in the period of 1965-1970. This was the longest economic boom period. There was a weight shift from light to heavy industries and the new 3 sacred imperial treasures stood at: My Car, Colour TV Set, Air Conditioner. The demands of the people were indicative of Japan’s exponential growth.

By 1972, Japan planned to remodel the archipelago. It wanted to eliminate the gap between central and local cities. A framework to sustain high economic growth was introduced at the same time. Low labour cost, introduction of technology from western countries, undervalued fixed exchange rate, indirect financing with low exchange rate, abundant and low cost labour force, high saving ratio, higher education attainment, etc. were some of the key factors included.

“Smooth transfer of skills from one employee to another was highly encouraged and incentivised,” said Mr. Suzuki. On Japanese style employment system he remarks, “Lifetime employment, On-the-job training and accumulation of company-specific skills are some of the key features.”

Late comers were held advantageous on several occasions. Import of foreign technology with subsequent improvement was given high priority. Companies could effectively avoid market risks associated with new business operations. Sales success was marked with quality products, non-price competitiveness, productivity enhancement, etc.
Yet, everything was not rosy at the same time. The perils of an advanced economy began to show up soon. Cities became overly crowded and depopulation in local areas followed. Environmental pollution, traffic congestion and waste management posed as key challenges. At the same time, focus shifted to light industries such as IT, service, automobile, electronics, robotics, factory automation, etc. There was a sharp change in lifestyle and a consumption boom followed. The end to the Japanese high economic growth followed by a stable growth.

In 1973, an oil crisis occurred. The economic growth settled at -1.2% in 1974 for Japan. This turned out to be an opportunity for improvising energy efficiency. The concept of ‘streamlined management’ became increasingly popular and knowledge-intensive industries were being focussed upon. The growth rate was restored at 3-5%.

“The lost decade is yet to follow,” remarks Mr. Suzuki. He adds, “Unfortunately, this is the fate of all advanced economies.”

When asked about centralisation of economy in Tokyo, he comments, “It is more convenient as all major institutions have settled there. Yet, things are diversifying. As an example, the Cancer Research Institute has been moved from Tokyo already and decentralisation is a slow yet a progressive process.”

Today, new graduates earn 250,000 per month as compared to 30,000 in 1972. Japan aims to keep the growth rate at -1.2% and is working on weakening of yen. It has already introduced a negative interest rate and is constantly working towards economic revival.


“I don’t see another economic boom for Japan,” comments Mr. Suzuki who has seen Japan grow. Indeed, there are many lessons to be learnt as we see the rise of China and other economies in the modern world.



by Trishit, TUFSA member

Wednesday, March 30, 2016

FISNet Company Visiting - Mitsui Sumitomo Insurance


                                             

On March 15th 2016, Mr. Fusato Suzuki along with FISNet members visited Mitsui Sumitomo Insurance. Mr. Morikiyoshi Yuki and Mr. Kageyama Kenichi were the representatives of the company, and FISNet members were treated with warm welcome.

           Each year, around 30 flights of rocket have been launched to space in order to conduct scientific experiments that will lead humanity to be greater civilisation. Within the 30 launches, about 1 – 2 launches are unsuccessful. That is about a 5% failure rate. The question is: “Who is there to insure those failures?” This is where the insurance company comes into play.

There are two types of insurance: life insurance and non-life insurance. In Japan, there are fifty two non-life insurance companies licensed by the Japan Financial Service Agency. However, only three major groups hold the majority share of the market. These three groups are: MS&AD Group, Tokio Marine Group and SJNK Group. Mitsui Sumitomo Insurance belongs to MS&AD Group, which deals with non-life insurance, such as car insurance, marine and fire.


With the world changing rapidly, these insurance companies are trying to find the new risks in order to insure those new insecurities. The dangers do not come from only car accidents, marine-related accidents, or fires anymore. As the world evolves, the risks involved also evolves. Coming back to the rocket launching scenario, this is why space agencies are willing to fork out $3 billion just for launching insurance.

             As Japan is a developed country with high economic power, Japan comes in fifth place in The Global Share of General Insurance Market, behind the United States, China, Germany and the United Kingdom. MS&AD Insurance group is the seventh biggest insurance group in the world, with  the top place taken by Berkshire Hathaway. The company is always looking for opportunities to expand its market share. However, with the population of Japan declining, Mitsui Sumitomo Insurance is shifting its focus toward other countries in Asia as their main target.


MS&AD has around 93,000 employees worldwide in 42 countries, with 8,200 employees being overseas staff. For global expansion strategy, MS&AD Holdings uses “tripolar system” where there are three sub holdings below the main holdings: Asian Holdings, European Holdings and American Holdings. With Asia as a main target of expansion, Asian Holdings companies are ranked top ten among major South East Asia countries, such as Malaysia, Philippines, Singapore, Thailand, Indonesia and Hong Kong. MS&AD group is also aware of dramatically growing Chinese and Indian markets. The company has strong networks in China, and more than 90 offices in India.

While many companies are trying to minimize and avoid risks, non-life insurance company such as Mitsui Sumitomo Insurance is constantly searching for new possible risks in order to insure the security. In the past, the insurance covered damages from marine and fire. With the world evolving rapidly nowadays, new risks appear, and new challenges occur for Mitsui Sumitomo Insurance to keep providing world class securities to all of us. 

FISNet members would like to thank Mr. Morikiyoshi Yuki and Mr. Kageyama Kenichi for making this company visit such an wonderful and educational experience. We would also like to give special thanks to Mr. Fusato Suzuki for arranging the company visit, and making this happen. We are looking forward to the next company visits. Thank you!!!

By Pasith Tangdhanakanond (Leo)
TUFSA Media Team Coordinator

Monday, March 7, 2016

FISNet Company Visit to TICC

Tohoku Innovation Capital Corporation (TICC)

Nowadays, the growth of Japanese economy is declining. While there may be many reasons, the country is pushing its technological advancement to another level as they believe this will bring back the prosperous economy once again. Downtown of Sendai city lies a company called Tohoku Innovation Capital Corporation (TICC), an important part of the force in Tohoku region which contributes in gaining back Japan’s economic prosperity. On March 1st, members of FISNet led by vice president of FIDEA Holdings, Mr. Fusato Suzuki, visited the company in order to exchange ideas, visions, and broaden the views of FISNet members on Japanese society.

Established in 2003, Tohoku Innovation Capital Corporation is a venture capital investment company which invests in high-technology businesses and companies. The company has a simple looking office in a classy skyscraper located in Honcho, Aoba-ku, and also has another office located in Aobayama campus, Tohoku University. Eight board members and nine staff members make up the company which is led by the president of the company, Mr. Ko Kumagi. The goal of the company is to vitalise the regional economy in the Tohoku region by incubating and developing new businesses. So far, three main funds were raised in the year 2004, 2006 and 2007 respectively. The company is investing heavily on electronics, Bio/medical and precision process/testing, followed by precision machinery, material, IT software and environment.

The host of the company visit was the vice president himself, Mr. Kazuyuki Igarashi. Mr. Igarashi is an experienced businessman who understands the situation of high technology industry in Japan very well as he used to work in many different regions of the country in his early days. The man also spent some amount of time in his life making his fortune in the United States.

The two gentlemen in front: on the left is Mr. Kazuyuki Igarashi and on the right is Mr. Fusato Suzuki. 


Mr. Igarashi stated that the most challenging factor investing in high-technology industry is “time”. The businesses rely heavily on research and development, which usually requires a long period of incubation time before the investors will gain any return from their investments. Mr. Igarashi also mentioned that another problem is the lacking business management ability of the companies’ leader as they are mostly scientists and engineers. Therefore, hiring external CEO and business teams are necessary in order to prevent companies from failing.

When asked about the funding process, Mr. Igarashi said that it usually starts from a university professor establishing a company with their own initiatives. The professors have an advantage as they are in the circle of experts, and possibly run one of the university laboratories. Although, professors are allowed to work two jobs simultaneously, they have to keep the university’s research separate from company’s research. In Tohoku region, four companies are funded by Tohoku Innovation Capital Corporation, and have been under the incubation right from the start. Two of them are professors from Tohoku University, one from Fukushima University and another one from Yamagata University. One of the professor from Tohoku University has achieved great success, and earned tremendous amount of fortune from developing high-technological tools which aids the bio-medical industry.

While there are some success stories, the bigger picture is still not clear. There were more than hundred potential companies which Tohoku Innovation Capital Corporation was interested in investing, but only forty five companies made it. Amongst those forty five, only few have managed to be profitable companies so far.

As challenging and risky as it sounds, it is reasonable to think that alternative investments in the service sector could have been made as it is the biggest industry in Tohoku region. Mr. Igarashi explained that while the service sector may be less risky and gives faster return, the growth of the industry is asymptotic. The industry would stop growing as time approaches the growth limit. Mr. Igarashi used the example of Izakaya (居酒屋), the fondest business by male Japanese entrepreneurs. The fact that number of Izakaya chains Tohoku region is increasing does not necessarily mean that the industry would earn more profit as the customers would not pay to drink more. They would rather visit their regular store.

           Mr. Igarashi left an important message at the end of company visiting by saying that Japanese investors are working hard toward a better economy. The investment culture of the country is slowly changing. Investment tax credit has began use in Japan since two years ago. Moreover, the number of angel investors in Japan is growing. Each region in Japan has few venture capital investors who are scouting for potential high-technology businesses as Tohoku Innovation Capital Corporation does in Tohoku region.


By Pasith Tangdhanakanond (Leo)
TUFSA Media Team Coordinator