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Julius Baer launches Japan wealth report


Japan is now at a pivotal juncture where both domestic and external influences have primed the economy for an exit from its deflationary past and together with it provide a fertile ground for wealth creation in both Japan and the region.

That’s according to Julius Baer’s inaugural Wealth Report: Japan.
Thomas R Meier, region head Asia Pacific of Bank Julius Baer, says: “In this inaugural report, we address the understated potential of Japan and challenge the consensus notion that deflation is embedded in the country’s economy. In addition to domestic growth drivers, we also highlight the tremendous growth of ASEAN and its relevance to the internationalisation of Japanese companies. Also, through our proprietary interviews, we have found a pronounced attitude of investing in a well-rounded education for the next generation which is unique to Japan as compared to the rest of Asia. All these factors have profound implications for wealth creation going into the medium and longer term not only in Japan, but also the entire region.”
The report starts by examining domestic drivers of growth as a result of ‘Abenomics’ and how the external environment, or more specifically the strong growth in the ASEAN-4 countries (Malaysia, Thailand, Indonesia, and the Philippines), can intertwine to pull the Japanese economy out of a legacy of deflation. The profile of DKSH, an established Swiss company, shows how Japanese firms can leverage on market expansion services providers to establish footholds in new markets. DKSH advises companies on how to expand into new markets, and has had experience operating in Japan since 1865.
Next, the report provides a more targeted analysis of the Julius Baer Lifestyle Index, which was launched in 2011 tracking the costs of living for HNWI in eleven Asian cities, and to look at how the cost of luxury goods in Japan has changed over the course of ‘Abenomics’.The experts at Julius Baer continue to expect Japan to punch above its weight in both basic and luxury spending, noting that in 2013 it generated close to nine per cent of total global private consumption while representing just two per cent of the world’s population.
Alongside the analysis of Japan’s economy and the cost of luxury goods in the country, the Julius Baer Wealth Report: Japan features an in-depth survey of parental opinions and expectations of education for the next generation. Close attention to this subject is warranted considering that education costs have been and would continue rising going into the future. The respondents consisted of affluent parents who are highly educated (degree level or higher), and have a child currently enrolled at the primary or secondary level. For example, one key takeaway is that Japanese parents focus less on pure quantitative outcomes and place more emphasis on extra-curricular activities as compared to Hong Kong or Singapore. Also, when queried on their preference of universities, a strong majority (74 per cent) preferred domestic to overseas universities.

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