************************************************************************* Issue 25 [July 2008] OCCI e-Magazine http://www.osaka.cci.or.jp/e/index.html ************************************************************************* Osaka Chamber of Commerce & Industry celebrates this year the 130th anniversary of its founding. Since August 27th 1878 when the Chamber of Commerce Law was established as the predecessor of OCCI, we have been developing together with the Osaka/Kansai region as a major economic organization of Japan, meeting the needs of the times, focusing on the upgrowth of the home region of Osaka/Kansai and also on support to SMEs (small and medium enterprises). We would like to express our cordial thanks to all concerned for their consistent backup and guidance extended to us all the while, and we wish to be favored with your continued support and cooperation. ========================================================================= [CONTENTS, July 2008] 1. Present trends of Osaka/Kansai Economy ---amid more noticeable slowdown, investments in plant and equipment remains steady 2. Prior to "G8 Hokkaido Toyako Summit", 3 Ministers' Meetings held in Kansai ---Local Welcome Reception held in Osaka before the Finance Ministers' Meeting 3. Report on OCCI Delegation to BIO 2008 and Arizona Bioclusters 4. OCCI International Division report on VIP visitors ========================================================================= 1. Present trends of Osaka/Kansai Economy ---amid more noticeable slowdown, investments in plant and equipment remains steady While investments in plant and equipment by Osaka/Kansai businesses remain steady showing results above the nationwide average according to the recently announced Bank of Japan's short-term prospect as well as our Business Survey Index (BSI) --- a quarterly business survey conducted by OCCI and Kansai Economic Federation (KANKEIREN)--- business expectation by Osaka-based companies (not only SMEs but large corporations as well) is further deteriorating. With continued sharp rises in the price of crude oil and increases in the food costs, manufacturers and companies are confronted with enormous difficulties without means to shift raw materials cost increases onto products or services. With home consumption restrained, faced with continuing cost increases in foodstuffs, overall trends are for a more marked slowdown of economy. For the BSI, a related survey was made on the "Plans for FY2008 Investments in Plant and Equipment "targeting the main Osaka-based companies as of early June 2008, the gist of which is as follows: ---The desire for investments seems strong with 58.6% of all companies having plans for investment, particularly manufacturers, 2 out of 3 of them. Among investments made overseas on plant and equipment, those made in Asia take up 21.2% of which 13.5 % is for China. As for the content or purpose of investments, "renewal/repair of time-worn facilities" stands at the top with 58.7%, followed by 55.6% of "for better productivity / saving of labor" at the 2nd and 43.3% of "for reinforced capability / extension of bases" at the 3rd. Domestic Trends of Economy (BSI indexes) (Business sentiment expressed by Osaka/Kansai companies surveyed) Results Prediction Oct-Dec 2007 Jan-Mar 2008 Apr-Jun 08 Jul-Sep 08 Oct-Dec 08 Totals -15.9 -43.9 -48.6 -44.6 -32.4 Large Corps -9.5 -39.2 -48.2 -39.3 -35.2 SMEs -19.7 -46.6 -49.3 -47.4 -35.2 * The above BSI indexes show the differences between the plus and minus trends as compared with those of preceding 3 months. (Source: the 30th Economic Survey by OCCI/ KANKEIREN) ======================================================================== 2. Prior to "G8 Hokkaido Toyako Summit", 3 Ministers' Meetings held in Kansai ---Welcome Reception held in Osaka before the Finance Ministers' Meeting From July 7 (Mon) through July 9 (Wed), the G8 Summit 2008 was held on the lakeside of Toyako, Hokkaido. Prior to this G8 Hokkaido Toyako Summit, 3 'Ministers' Meetings' were held in Kansai; the Environment Ministers' Meeting in Kobe on May 24-25-26, the Finance Ministers' Meeting in Osaka on June 13-14 (the Osaka International Convention Center as the main venue) and the Foreign Ministers' Meeting in Kyoto on June 26-27. In Osaka, the regional governments and business community cosponsored a reception to welcome the G8 Ministers and the "outreach" countries' ministers and also representatives of foreign media, as well as to widely promote the Osaka/Kansai region worldwide. The G8 Finance Ministers, taking the platform together with the Governor of Osaka Prefecture, Mayor of Osaka City, OCCI Chairman and other representatives, received from OCCI Chairman A.Nomura a commemorative picture frame with the Osaka Castle as the motif, and then they conducted "Kagamibiraki" (a ceremony of breaking open a sake barrel) and they drank a toast to the success of the Finance Ministers' Meeting as well as of the G8 Summit 2008. ======================================================================== 3. Report on OCCI Delegation to BIO 2008 and Arizona Bioclusters OCCI dispatched a 18-member-Delegation to BIO 2008 and also to visit Arizona bioclusters from June 15 through June 21. "BIO" is the world's largest bio event annually held in major cities of North America comprising seminars, exhibitions and meetings for business talks etc. BIO 2008 was held as its first BIO event in San Diego (California) quite comparable with Boston and San Francisco as a biocluster. BIO 2008 proved to be the largest ever with 20,108 persons totally participating from 70 countries during the event. OCCI Delegation went out further from BIO 2008 to make fact-finding visits to other bioclusters in Arizona where close and efficient collaboration was observed between industry and university / research-institutes. Particularly at Critical Path Institute, an uncomparably unique research facilities, FDA (the US Food and Drug Administration) and pharmaceutical companies from around the world in close cooperation were seen to specify their common bio marker and they all shared the same information; which has never been observed in Japan. By virtue of such collaboration, the scatteringly set barometers before this to assess the effectiveness of drugs have now been standardized, and largely contributed to shortening time needed to obtain approvals or licenses. Since most major European and US pharma makers participate in this undertaking, we presume that this will sooner or later be recognized as the world's standard. ======================================================================== 4. OCCI International Division report on VIP visitors * July 1 (Tue) Mr. Joseph CARON, Ambassador 　　　　　　　　　 Embassy of Canada in Japan * July 7 (Mon) Hon. Tan Sri Muhyiddin Yassin, Minister Ministry of International Trade and Industry, Malaysia [PLEASE NOTE]: There will be no August issue. OCCI e-Magazine will take its summer recess in August. We wish readers a pleasant vacation and we look forward to making our next contact in September. Chief Editor ========================================================================