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Archive for October, 2010

And once more…


My apology I can reassure you, that I can hear your sigh of “no, not again!?” I will be traveling for business to Korea for a few days, but will be back home on the next weekend. While being abroad I am not able update my blog.

My sincere apology and I hope you still stay a loyal reader.
Thanks for understanding,

Sibylle Ito (シビル伊藤)

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Personally I was surprised to find in the Eurobiz magazine for October 2010 that foreign investment coming from Western Europe (41.9% of the total inward FDI, JPY Mio 77,728,100) outweighs the inflow from the United States (37.5%, JPY Mio 69,100,000). Although the Japanese media focuses on the US, looking at the actual business related figures a balanced viewpoint would be more appropriate. Hearing these high figures of investment might sound impressive, but let me show you a comparison to other countries as FDI stocks as percentage of the GDP (data from 2009 from the Eurobiz magazine):

Japan: 3.9%
South Korea: 13.3%
Germany: 21.0%
United States: 21.9%
France: 42.8%
United Kingdom: 51.7%

For sure Japan stands out with its low percentage on foreign investment. Some of the quoted reasons are according to Jetro president Michitaka Nakatomi: “Japanese corporate tax is not very low. Also, we sometimes hear complains about administrative procedure issues: that paperwork is slow or complicated. Sometimes foreign companies talk about a lack of skilled labour capable of working in an international environment.”
Honestly I wish I could argue against these points, which hinder foreign investment. Corporate tax is the highest in Japan with 40.69%, which let’s the figure stand out again when compared with US, France, Italy, Germany, UK, South Korea in decreasing order of their corporate tax. In general the argument is that freeing up more cash for the companies to reinvest in future products and expansion is the key for growth. From my perspective this is what Japan needs to get out of the slump and get back on a global stage. At the same time paperwork at governmental institutions and within larger Japanese companies is rather extensive and complicated, which forces all involved into an inefficient working style.
Then not surprisingly we come back to the issue of the low number of fluent English speaker. Japan is a country with a very limited English exposure at work, not even depending on the product sector. Apart from language skills, my biggest concern is the general lack of experience in business in a multi-national and multi-cultural environment. I agree not all countries around the world are involved in the same scale in global business, but it becomes more and more important for Japan especially now with the decreasing local market. I strongly believe for Japanese employees there is no choice but to bite into the sour apple and to jump into a multinational waters of business. Swimming in the Ocean can be scary, but it is just a question of making the first stroke. I am sure the rest will follow.

Brought to you by Sibylle Ito (シビル伊藤)

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Delay in new posts


For a bit more than a week I will be on a business trip to USA. While being abroad I am not able update my blog.

My sincere apology and I hope you will stay still a loyal reader.

Thanks for understanding,

Sibylle Ito (シビル伊藤)

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Dropping rent prices in Tokyo


Based on a recent survey of the magazine R25 the average rent for apartments or condominium in overall Japan has dropped 18.7% since January 2008. I would like to have a closer look at the same although lesser felt effects in Tokyo. I believe there are two reasons behind the decrease in the charged rents: Less students or freshman are moving in to Tokyo, but commute from their parents home, plus the ongoing recession is forcing people to have a tighter look at their expenses. As you can see below the biggest change in percentage of about 10% can be found with the family sized apartments.

Rent in 1/2008 then 10/2010, presented with their respective difference

1R: JPY 82,000 to JPY 76,100, -3.5%
1DK: JPY 83,900 to JPY 77,800, -7.3%
2DK: JPY 129,500 to JPY 115,700, -10.7%
3DK: JPY 150,900 to JPY 136,900, -9.3%

On the other hand, I am wondering whether the opposite could be true as well. Due to the decreased interests for home and condominiums more and more families are moving into their own homes. For sure I will keep you posted as soon as I come across reliable figures.

Brought to you by Sibylle Ito (シビル伊藤)

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This week I am adding my own recent interview with internet site Expat Arrivals, an information source for professionals planning to work abroad. As an exception this week enjoy the interview below or have a look at the original site. For sure I enjoyed this week having an opportunity to answer questions related to living in Japan.

About you

Q: Where are you originally from?
A: I’m originally from Switzerland, but before moving to Japan I lived in Los Angeles California for 7 years.

Q: Where are you living now?
A: Currently, I am living mostly in Tokyo, previously about a year in Yokohama.

Q: How long you have you lived here?
A: Almost nine years.

Q: Did you move with a spouse/ children?
A: I moved alone from the US to Japan.

Q: Why did you move; what do you do?
A: My personal goal is to increase my global understanding in life science / biotech / chemical business after gaining work experience in Switzerland and US. I work in market development or sales mainly for foreign companies in the area of life science, biotech and chemical products.

About your city

Q: What do you enjoy most about your host city, how’s the quality of life?
A: For sure the top quality of food and not only Japanese style, but also other styles. I can get whatever I might need. Warm-hearted friends and interesting local community. Apart from the long working hours and work pressure, for sure top quality of life.

Q: Any negatives? What do you miss most about home?
A: Long vacations, otherwise nothing.

Q: Is the city safe?
A: Very much so, because I always have to remind myself when leaving Japan that I need to be careful about security again. In the real countryside most homes do not need any locks.

About living here

Q: Which are the best places/suburbs to live in the city as an expat?
A: You should choose where you’d like to live depending on your Japanese language capabilities. Not all areas are home to English speaking Japanese people, and therefore some expats prefer to live around areas where there are more foreigners – like Roppongi. Personally, I prefer those areas of Tokyo or Yokohama where only few foreigners live.

Q: How do you rate the standard of accommodation?
A: As with every dense, large city rent is not cheap, but not as expensive as in New York or in Zurich for the same space.

Q: What’s the cost of living compared to home? What is cheap or expensive in particular?
A: Again depends on what scale you compare it too. From personal experience I would say cheaper than in Los Angeles, but not as expensive as in Zurich. Good food is cheap even on a global standard, and prices of previously high priced items – like apparel – has come down recently.

Q: What are the locals like; do you mix mainly with other expats?
A: I call Japan my home. Since moving to Tokyo I’ve mainly had contact with locals, but recently I’ve started to meet with a few long term expats.
The community you choose to mingle really depends on what your reason for being in Japan is. If it is just for short term like 2-3 years with limited Japanese, then local contact will be more difficult.

Q: Was it easy meeting people and making friends?
A: Very easy and I experience a more supportive network than I experienced in the US or in Switzerland.

About working here

Q: Did you have a problem getting a work visa/permit?
A: No, was rather easy to get a working permit.

Q: What’s the economic climate like in the city, is there plenty of work?
A: Depends really on your professional background and your Japanese language knowledge. From my professional experience in Japan 95% of the contacts or meetings I have are conducted in Japanese. Therefore limited language abilities can be a big problem.

Q: How does the work culture differ from home?
A: Compared to my working experience in the US and in Switzerland the working hours are longer, and due to the work load potential work on the weekend is not unusual. The inter-dependence and level of teamwork is higher in Japan than anywhere else I have experienced. As a consequence, taking more than 3 days at a time off really disrupts the work flow and has effects on the working environment.
The biggest challenge I have seen between locals and foreigners is that the shorter working hours and the additional days of leave taken by expats creates a perception of less commitment among the Japanese.

Q: Did a relocation company help you with your move?
A: No, I moved on my own.

Family and children

Q: Did your spouse or partner have problems adjusting to their new home?
A: My husband is a Japanese National, and I got married here in Japan. Consequently there were no adjustment problems.

Q: What are the schools like, any particular suggestions?
A: From what I have heard it can be challenging to go to local schools if Japanese language skills are not good enough. So, international schools are often an option, but this can depend on financial status.

Q: How would you rate the healthcare?
A: Depends on the location of the practice.

And finally…

Q: Is there any other advice you like to offer new expat arrivals?
A: I definitely fell in love with Japan. From personal observation, it seems that the expats who compared Japan to other countries faced the biggest problems adjusting. The people who tried to change the style of doing business in Japan, or those with a lack of desire to learn Japanese struggled the most.

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A while ago I had one of the most humbling lessons of “Japanese economy live”. Through the alumni group of Pepperdine University in California USA I spent half a day volunteering at Second Harvest in Ueno. For those who do not know Second Harvest Japan: It is an NPO, who distributes food to soup kitchens, orphanages, the elderly, emergency shelters, single mothers, the homeless, migrant workers, and many others. According to their website Second Harvest Japan (2HJ) does not pay for “new food”, because there is already an ample amount wasted for them to draw from. 2HJ collects food that would otherwise go to waste from food manufacturers, farmers, and individuals, and distributes them to people in need. 2HJ is the nation’s first food bank.

Did you know that more than 650,000 people in Japan lack “food security”, the access to safe, nutritious food through socially acceptable channels (based on 2HJ website). At the same time, the Tokyo the capital of “mottainai” is throwing away more than 6,000 metric tons of food every day.
Honestly I did not know what to expect from volunteering, I simply reserved an afternoon trying to give back to the Japanese society. In the Ueno Park we met, where in our case our first job was to give out freshly cooked food for almost 600 men. Yes, correct, I did not notice any woman in the long line of people. Plus, yes, there was a huge long line of people, who are truly in need for food. As preparing and giving out a lot of food is rather work intensive, I had not much a chance to observe. From what I saw the people in need did not behave or dress truly different to the neighbour sit next to you or me on the subway. They were mostly blue colored male workers between 40 and I guess late 60s, some at an age or stage in their life, when guessing age becomes very difficult.
After all the food was given out, we headed to the food preparation place in Akihabara to clean up all the used utensils, pots and plates. All the actions done were nothing truly special, but I felt honored having an opportunity to help, plus becoming truly grateful for what I have in my life.
I can truly recommend everyone to take part as a volunteer with 2HJ and I can guarantee you it will be a positive, unforgettable experience. Furthermore next time on the train, remember the guy beside you might be actually in need for food. You never know…

Brought to you by Sibylle Ito (シビル伊藤)

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U-CAN is one of the top distance learning provider in Japan. Looking at their most popular programs, it becomes obvious that more and more women have to find ways after childbirth to find a way back into the professional world. Due to the rather strict hiring policies of Japanese companies, for these women having a gap in their professional career limits their opportunities. Therefore their only choice is to start off in a second career like the professions listed below that can be learned through correspondence course and end with a certificate. According to U-CAN presently the most favorite courses are:

1. Medical care office support
2. Public Notary
3. Care Manager
4. Drugstore Assistant
5. Beautiful ball pen writing
6. Real Estate Broker
7. Book keeping Level 2 and 3
8. Microsoft Qualification Certificate
9. Caregiver Office Support
10. Social Insurance Worker

Apart from improving ball pen writing skills all the other courses directly address the social needs due to the aging society or then focus on support for small businesses. I strongly believe that more women entering the workforce after childbirth will have a positive effect on the Japanese society and economy. For sure I wish all these correspondence course students – unrelated to gender – lots of joy while learning, plus opportunities for professional freedom.

Brought to you by Sibylle Ito (シビル伊藤)

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