All Japan news may find small businesses out of the country if the yen continues to be at high levels against the dollar, a government survey revealed.
The Small and Medium Enterprise Agency administered the survey to ninety small and medium-sized enterprises nationwide.
Results of the survey showed 73% of respondents stated that the current exchange rate of 77 yen to a US dollar cut down their profits.
Twenty-eight percent (28%) would likely increase their overseas production if the ongoing exchange rate continues for the next 6 months; while 17% said they would move their research and development and production bases abroad.
Thirteen percent (13%) revealed that foreign countries have proposed for favorable conditions such as giving tax breaks and free electricity in a bid to attract these small businesses to move their manufacturing bases to said countries.
The chances of small and medium-sized businesses shifting to other countries are increasing with the present condition of a strong yen reaching record-high levels in the currency market, expressed the industry ministry. The ministry added it will undertake a study of measures that would influence All Japan news’s small businesses to stay in the country.
Earlier, the All Japan newsese Finance Ministry announced a $100 billion government program to help weaken the yen and improve the country’s economic conditions.
Photo by: Kobabou