Bystander’s View on Japan, July 24, 2012

TOPICS OF THE WEEK 

Malaysia is picked up as one of the BEST TARGET COUNTRIES for securities investment. 

Nikkei Veritas weekly magazine picked up promising investment target countries to Japanese institutional and retail investors.Malaysia is ranked 10th. The top ten countries are              Ranked 1st          China              2nd                       Peru, Kuwait              4th                        Nigeria              5th                        Chile, Indonesia, Khuzestan              8th                        Philippines, Korea              10th                      MALAYSIA, Columbia, India, Russia, Egypt 

The article ranked countries buy using 5 yardsticks. Giving points from 5 (Top) to 1 (bottom).Yardsticks and Comparison of Malaysia with China, Indonesia, are as follows.                                                        Malaysia              China     IndonesiaGrowth Potential,                 3                       5            4Stability                                5                       5            3Fiscal Soundness,              1                       4            4Economic Autonomy,          1                       5            4Business Environment         5                       2            2 

One particularly good thing about Malaysia is that the country offers the lowest risk while it  gives good returns. 

MARKETS                     July 20      %Change    NIKKEI      8669.87      -0.62    TOPIX         733.82      -1.67 

TSE has been having very thin trade volume for several weeks. Hot summer has come, but market is cooling. 

. ECONOMYGenerally speaking, sentiment is better on Japanese economy. People may spend more during summer holidays. The year’s recruitment of newly grads from universities will be improved, according to Nikkei Newspaper.Although China slowdown may be the risk factor, Japanese economic performance must be better than other developed economies.Comparing to Taiwan and Korea, Japan will less vulnerable to the European and American recessionary situation. POLITICSNow, the ruling DPJ was split because a group led by Mr. Ozawa said SAYONARA to PM Noda. Ozawa decides his party name, Kokumin no kurashiga ichiban. It literally means “People’s Livelihoods First,” which is regarded as joke by many Japanese voters. Political situation becomes very fluid. Japan does not have time to waste in playing musical chairs. Only solution will be a general election to decide undecided issues.

Many political analysts are saying the general election is inevitable in September 2012.

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