In Japan's Nagasaki, some glimmers of economic revival

Kyocera

30/10/2020 07:57

By Leika Kihara and Takahiko Wada
    NAGASAKI, Japan, Oct 30 (Reuters) - On Japan's southern tip,
some initiatives to revitalise local businesses are making small
but steady success, offering a silver lining for a region that
has long suffered from an ageing population and declining
economy.
    Nagasaki, which has seen its once-dominant shipbuilding
industry wane due to global competition, is today symbolic of
Japan's demographic challenge. It has one of the fastest
shrinking populations, as younger people head for bigger cities
in search of work.
    But it is trying to reinvent itself as an IT hub and has
created data science programmes at local universities. That has
helped lure big tech firms like Kyocera Corp  6971.T  and
Fujifilm Holdings Corp  4901.T , which have both set up research
and development centres. 
    "We need to create new industries and attract companies that
offer promising jobs for young people," said Ryutaro Kaichi,
head of Nagasaki Bank. "That's the only way Nagasaki, and we
regional banks, can survive."
    The prefecture offers subsidies to firms that bring in jobs
and investment. Last year alone, it signed contracts with a
record 13 companies, mainly in IT and finance.
    Electronic parts production made up 33% of the prefecture's
gross domestic product (GDP) as of 2017, according to the latest
available data. That was up from 14% in 2010 and exceeded 18%
for shipbuilding.
    Local lender Juhachi-Shinwa Bank wants to help revive a
fishing industry hit by falling prices. Bank officials are
working with the local government on a subscription system to
connect local fishermen with consumers in Tokyo.
    Under the scheme, consumers who pay a monthly fee will have
fresh fish shipped to them directly. 
    "Nagasaki is an exemplar of the challenges Japan faces,"
said Kousei Kuwasaki, of Juhachi-Shinwa Bank.
    "That's why it can serve as a sandbox for companies that
want to try out something new."

 (Reporting by Leika Kihara and Takahiko Wada; Editing by David
Dolan and Michael Perry)
 ((david.dolan@tr.com; +81 3 6441 1526; Reuters Messaging:
david.dolan.thomsonreuters.com@reuters.net))