Japan Press Weekly

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2013 June 5 - 11 [ECONOMY]

Corporations add over Y10 trillion to their internal reserves in past year

Data from large corporations’ consolidated financial statements for FY 2012 show that they increased their internal reserves by 10.5 trillion yen last year.

According to the data, among 1,200 listed companies, 84% or 1,010 companies added a total of 15.7 trillion yen to their internal reserves from the previous fiscal year, while 190 reduced their reserves by 5.2 trillion yen, leading to an over-all 10.5-trillion-yen increase in corporate internal reserves.

The Japanese Communist Party claims that 80% of large corporations can provide a monthly pay increase of 10,000 yen to all their employees just by using 1% of their internal reserves.

Take for example, in the Toyota Group which uses 235,000 workers, including non-regular ones, in Japan, the use of only 3.4% of internal reserves that the group accumulated during FY 2012 alone would contribute to a raise in monthly wages by 10,000 yen.

The weakening of the yen and rising stock prices due to the Abe government’s financial policies, “Abenomics”, brought major exporters, banks, and insurance companies large profits and an incease in their internal reserves. In short, only large corporations benefit from “Abenomics.”