INTERVIEW: Virus Crisis May Spur Japan Manufacturing Sector Realignment

Economy

Tokyo, July 2 (Jiji Press)--The manufacturing and other industries in Japan will likely undergo accelerated realignment next year or later due to the novel coronavirus epidemic, Masahiro Matsuoka, head of business consulting firm Frontier Management Inc., has said in a recent interview.

He also said that the government should avoid putting a strain on the private sector through boosting the functions of public-sector funds, while pointing to the need for the supply of risk money.

Matsuoka played a central role in turning around struggling companies, such as supermarket operator Daiei Inc., now a unit of retail giant Aeon Co. <8267>, and now-defunct cosmetics and household goods maker Kanebo Ltd., when he was working for government-backed Industrial Revitalization Corp. of Japan between 2003 and 2007.

Due to the coronavirus crisis, "the dining and accommodation industries will struggle with financing, and such difficulties will spread to the manufacturing industry," Matsuoka said, predicting that mid-scale manufacturers in the automobile and automobile parts sectors will undergo realignment.

He also forecast that there will be a spike in consultations to financial institutions and consulting firms specializing in corporate rehabilitation from major companies around before November, when April-September corporate earnings results start to become available.

[Copyright The Jiji Press, Ltd.]

Jiji Press