Okinawa companies see little merit in weak yen

Business information company Teikoku DataBank, Okinawa Branch, has released results of its survey on influence of the cheaper yen on companies in Okinawa.

According to the survey, 39.3 % of the companies say “there are more demerits than merits,” which by a large margin surpassed the number of companies that answered “more merits than demerits.” Only 3.6 % of the companies saw a benefit to their business in yen’s weakening against other currencies.

Teikoku DataBank analysis based on the survey shows that the cheaper yen could be a factor in depressing profits for companies that do their business mainly within the country.  By type of business, 83.3% of manufacturing companies saw more demerits that merits, as did 55% of companies in the wholesale sector, followed by 55 % of real estate businesses.

To the questionnaire of inquiring about their currency policies, 33.9 % of the companies answered they have not done anything.  30.4 % said they have cut back on fuels, and 19.6 % of the companies say they have or are going to pass the negative effects on their retail prices.

Teikoku DataBank had conducted the survey from December 15th last year through January 5th this year, targeting 155 companies. They got valid responses from 36.1 % of them.