ACCJ Virtual Town Hall - April 3
The ACCJ held a virtual town hall on Friday, April 3 to provide updates on the Chamber’s activities and address questions from the membership-at-large.
The town hall featured the ACCJ Crisis Response Team:
Peter Fitzgerald, ACCJ President
Christopher LaFleur, ACCJ Chairman
Michael Alfant, Chair of ACCJ Emergency Disaster Response Advisory Council
Laura Younger, ACCJ Executive Director
Find below a summary of the CRT’s remarks and the Q&A session.
Summary of Remarks from Peter Fitzgerald, ACCJ President
Thank you for joining us.
As you have likely seen and heard, Japan has increased the number of people it is testing, especially in Tokyo. As a result, the number of infections has also increased. Although the number remains low relative to other countries, we need to remain vigilant.
Last week, the ACCJ collected responses from our fourth survey. Some of the key insights we have gleaned so far are:
25% of respondents stated that they would only be able to sustain their business for three months under more restrictive measures.
Another 25% responded that they can operate between three and six months.
Many of you are extremely concerned about reduced revenue, lower demand, and supply chain challenges, all of which may lead to bankruptcy or business closures. We have received numerous inputs from individual members and those funneled through our SME CEO advisory council. Please be assured that we are continuing to work with the U.S. and Japanese governments, as well as local organizations, to provide support. Some of the recommendations we have heard include cash subsidies to maintain insurance, issuing credit lines, supplying consumption tax rebates, and distributing holiday subsidies to hire new workers.
Our town halls are a forum to voice your concerns and find ways to work together better and support each other more. You continuously impress me with your tenacity and dedication, with many of you taking action in support of your civic duty. Thank you.
Summary of Remarks from Christopher LaFleur, ACCJ Chairman
There are numerous rumors on whether the Japanese government will implement a lockdown. At this point, we do not know. Japanese officials are continuously revisiting their policies and responses with an eye toward preparations should there be an emergency declaration. Such a declaration will enable governors to implement more restrictive measures to curb the spread. Although no decision has been made, Governor Koike’s latest press conference indicates that Tokyo is taking incremental steps to prepare for a lockdown. Members should adopt the necessary measures to continue operating in a state of emergency where movement is severely restricted.
Summary of Remarks from Michael Alfant, Chair of ACCJ Emergency Disaster Response Advisory Council
Our surveys give us a sense of the tough times ahead, particularly for our small and medium enterprises (SME). Studies on SMEs in Japan show that an average SME has between 20-40 days on cash on hand at any time. For many small companies, their 30-day countdown began a week or two ago. Small businesses are learning whether they will or will not be able to stay in business and continue their services as part of the community.
Please know that the CRT is meeting daily. We are doing everything we can to provide value to members. We ask that you continue to complete our surveys as much and as often as you can. Your voice is invaluable and enables us to capture the impact on the business community.
Summary of Remarks from Laura Younger, ACCJ Executive Director
Members are continuously looking to the ACCJ to provide leadership, advocacy, critical and timely information, and networking opportunities. The ACCJ already performs these functions, but we have modified these functions to emphasize coronavirus-related content. Our advocacy efforts remain strong and busy, even under these extraordinary circumstances. For example, the Taxation Committee is leading a joint statement on the fiscal measures needed to mitigate the impact of COVID-19 on the foreign business community. Although events and meetings will remain virtual until the end of April, the Chamber has a robust schedule with 27 virtual events until its belt and 11 more occurring in the next few weeks.
More than 1,000 members and delegates have engaged in our webinar series under the Business Continuity Network, the ACCJ’s resource for coronavirus-related information. Thank you to the committees, speakers, and participants for making our transition to a virtual setting such a success. We are working to deliver the insights and ideas from these forums in other formats such as recorded video and written content, so please continue to visit the ACCJ website for updates and archived info. We are also streamlining the content we are sharing with you. Our goal is to consolidate the information into a BCN update on Tuesdays and as part of our ACCJ Insider newsletter on Thursdays.
Although it is a bit difficult to duplicate networking events, one of the Chamber’s most important services, we are working on finding viable and creative alternatives.
The staff thanks you for your patience as we adjust to this new reality and for your enthusiasm. We truly appreciate your positive responses and support.
Questions & Answers
How can we be certain that we are receiving the proper medical recommendations in drugstores?
To be certain you are receiving the most accurate and latest medical advice, visit drugstores that have pharmacies in-house or a stand-alone pharmacy. English-speaking services may be limited, however.
Can you provide any updates regarding testing in Japan?
Japan has had among the lowest case numbers, but that may change as testing increases and with it, the number of cases. Any changes or increase in testing will likely be incremental and based on the trends we are seeing.
Both Narita and Haneda airports have implemented mandatory testing for all passengers entering Japan. This measure will have several policy effects on different sectors; for example, airlines will need to limit the number of passengers flying to Japan.
What is the operating state of hospitals?
In general, Tokyo hospitals are running at capacity or a little bit above, which is why the coming weeks are critical. The Tokyo Metropolitan Area has set aside a number of beds to accommodate coronavirus patients. For now, it seems they are able to cope but that can easily change if cases rise exponentially. Depending on infection rates, hospital admittance policies may shift to prioritize those in need of urgent care and other facilities may be appropriated to house patients.
Why are there not more Japanese and American companies working from home?
Broadly speaking, these companies fall into two camps. There are companies that perform only critical work in their offices or had existing infrastructure to support remote work. Then, there are those who do not have the capacity to perform remote work even if they would prefer to do so.
Our surveys show that a majority of our respondents and about 75% of their employees are working from home.
Are we looking at post-crisis plans and opportunities?
WFH and having the appropriate capacity on hand will clearly need to be a core competency in the future. As a Chamber, we want to lead by example and help businesses adapt to a digitized operating environment. And digital transformation is certainly an area where we can effect change.
Is the ACCJ conducting advocacy work on behalf of those who are permanent residents of Japan but are unable to re-enter due to the changes in immigration policy?
We have heard that if you are here on a work permit and left Japan at this time, you would not be able to re-enter.
Please share your experiences with us. It is valuable to learn how many member companies are facing this problem so that the Chamber can find ways to assist.
Given that the term “lockdown” has different meanings around the world, what would a “lockdown” mean in Japan?
Governors are somewhat limited in what they can do until the Prime Minister declares a state of emergency based on the recent legislation. They are empowered to take certain actions, such as asking facilitates to provide services and requesting cooperation from companies and citizens, but it is unlikely they will have the authority to compel.
Additional Comment
Applying for the government loan program
Under this new emergency program, the government will guarantee loans to businesses. The application process involves paperwork and an interview. There are several government entities facilitating loans, who will interview you after submitting the requisite paperwork. A member who has undergone this process reported they had a positive experience. They first consulted with their bank and received direction. After they completed the paperwork, they were able to secure an appointment shortly thereafter. They conducted their interview with 日本政策金融公庫/Japan Finance Corporation, who were professional, helpful, and provided additional recommendations on how to get their application approved quickly. The member shared that if their paperwork is accepted, they would likely receive funds in a matter of weeks.
If you have applied for loans under the emergency program, please consider sharing your experiences with us.
