I stayed in Singapore for a week at the end of May. It was since last Sept. I notice that the city looks of Singapore has been changing. I found that there were new buildings and roads on the reclaimed ground which would cause flow of people in the city. It is Singapore that is changing every day. However, they have been leaving the old relics. The Raffles Hotel is one of them. It is good to know that it has been almost same since my honeymoon over 30 years ago. I happened to have my birthday during my stay in Singapore. On that day I was invited dinner by my friend. The restaurant was at the top of Republic Plaza building, one of the highest building in Singapore. Marina Bay Sands Hotel was overlooked far below from the restaurant. Seeing the night view of Singapore port was especially beautiful. I was appreciating my kind friend to have given me such unforgettable memory for my birthday.
I would like to explain about taxi affair in Singapore. The taxi fare is Singapore dollar, $3.00~5.00 (JPY240~400) in distance of 3km ~ 5km respectively. It is not expensive. However, I found that there were several difficult time for us to catch a taxi at the hotel. You should avoid taking a taxi at the hotel in the situation of after noon, in a rain and rush hours as much as possible. I had an appointment at 2:30 p.m.so that I went to the taxi stand at the hotel before 2:00 p.m. because it usually take 10~15 minutes by taxi. However, there were already 5 people waiting for taxi. As a result, I had been waited over 30 minutes before taking taxi. It was 20 minutes late when I finally met the customer at 2:50 p.m. A taxi driver says that there are not many taxies available on the street in the situation of after noon, in a rain and rush hours because some of them take lunch, in a rainy day most of taxies are very busy on the street so that few to come to Hotel. During rush hours many taxies are usually stuck on the street.
Not many housekeepers in the 4 stars hotel where I stayed could always speak English. I thought that English is essential to all employees of hotel in Singapore but they seem to have been accepting workers from overseas without speaking English or not. It is because they could take care of 3K jobs. Japan should seriously consider to hire workers from overseas because I believe that it could vitalize Japan in all respects.
I came to Singapore on Sunday and intended to spend all weekdays with customers for any unexpected long negotiation and to return at midnight of Friday, leaving at 0:45 a.m. early Saturday. I will arrive around at 9.00 a.m. so I could get 6 hours sleep in the plane. I thought I could make use of Saturday. The 0:45 a.m. flight was full of passengers. I didn’t think I had a problem of sleeping a few hours in economy seat leaving at midnight and arriving in the morning. I could not get enough sleep at all. However, I could probably make use of it if I get used to do it. As a result it would be possible for us to work in Singapore on weekdays and come back to Japan on weekend. Singapore would be the city to commute for work.
Japanese Yen seems to converge on around $1.00=JPY100. Nikkei Stock Average has been fluctuating up and down with selling by foreign investors to fix their profit these days. Japanese companies could make profit under the exchange rate of $1.00=JPY80. The 52% of the listed companies have no debt at all so their financial constitution are solid. Their money in hand is said to be 66 trillion yen. According to the authoritative international research institution Japan has been ranked at the 24th in competitiveness this year comparing with the 27th rank in 2012. The problem is how effectively they would invest their money for growth strategy and overseas strategy with assurance.
The first monetary policy of “Abenomics” has been so far successful in lowering Japanese Yen and raising stock price. I wish that the 2nd financial policy would support the 3rd growth policy to great extent. On the other hand Japanese manufacturers’ domestic plants are getting too old so that we would like to request government to help the promising industries and vital companies by a tax reduction and a special financing system in order to get them promoting investment in plant and equipment and consequently to maintain employment and to create more jobs.
The main reason of the trade deficit has been caused by import of energy resource such as crude oil and LNG. It is important to put Methane Hydrate to practical use as soon as possible. It is said that over 100 years of volume of energy resources of Japan’s yearly consumption would lie under the ground along the coast of Japan.
Wind power, solar power, geothermal energy will need more in future from the global point of view. Japan will have to take the lead in technically developing them for actual use and in contributing to the world in the energy field. Japanese IT business should make effort in regaining the old power they used to have and make rapid progress toward the future as I have no doubt that IT business will change the flow of the world economy.
USA economy has been favorably recovering such as raising stocks, revitalizing housing market, moderately lowering unemployment ratio. China economy has gotten into the adjusting period on overcapacity of domestic production facilities and seems to take a break for the next progress. In the meantime, Asia is active like Philippines, Indonesia, Thailand, and Vietnam. These countries have showed over 4~7% growth in GDP in the first quarter of 2013. Japan should seek for the way of helping their economic growth and sharing prosperity together with them.
Shipping lines has been endeavoring the cost cutting. Mega containership is one of them. However, they have to reduce the freight rate to fill the ship space. Further cost down require bigger ships. They seem to have fallen into the vicious circle. They have to break it somewhere. Shipping lines will need recovering the freight rate. They negotiated Service Contract (SC) for USA with shippers of which freight rate will be effective from May for one year and won 5~10% up against the previous year. However, their raises were less than their target level. Thus, the members of Transpacific Stabilization Agreement (TSA) will carry out rising the freight rates of $400/FEU for USWC and $600/FEU for other, effective July 1.
The number of new containers in China factories has exceeded over one million teu and the price seems to come down to around $2,100 per 20f. Shipping lines could manage with the existing fleet and they don’t need to rely on L/T from leasing companies for the time being. On the contrary they have been reducing surplus of leasing containers as many as possible. Therefore, leasing companies are increasing their depot stock accordingly in the world. Utilization of some leasing companies seem to have been lowering less than 90% already. However, I wish export ex China and Asia to North America and Europe to be restored toward the summer as usual.