Jetstar Asia's closure highlights ASEAN's fierce LCC wars
NANA SHIBATA and NORMAN GOH
JAKARTA/KUALA LUMPUR -- After operating for more than 20 years, Singapore-based budget airline Jetstar Asia announced its closure, citing increased competition and rising costs.
The shutdown of Jetstar Asia, a subsidiary of Australia's flag carrier Qantas, highlights the difficulties that low-cost carriers (LCCs) face in Southeast Asia. Although the region's low-cost carrier market is expected to continue growing, operators are being forced to accept lower profit margins, with analysts predicting stiffer competition this year amid rising cost concerns.
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Yomiuri Shimbun
14 hours ago
- Yomiuri Shimbun
Southwest Japan's Callenges: Signs of Growth / Fisheries Industry Seeks Growth Overseas to Counter Declining Domestic Demand; Aquaculture, Quality Control Key Avenues
This is the fourth installment in a series of articles taking an in-depth look at industries with growth potential in Kyushu as well as Yamaguchi and Okinawa prefectures. *** Local customers enjoyed a multicourse meal in late April at the Guenpin Singapore fugu puffer fish restaurant located in a business area of Singapore. The meal included sashimi and hot pot of the fish, which was shipped from Shimonoseki, Yamaguchi Prefecture. 'Japanese puffer fish is delicious. I also like the fish's milt,' said Wayne Chua,42-year-old Singaporean customer who works at a nearby insurance company. 'Eating puffer fish after a busy day at work gives me energy.' Puffer fish is a popular premium fish in Japan. Overseas, however, the fish is often perceived as poisonous and dangerous, so it has low recognition. Since 2022, in addition to the meat of Japanese puffer fish, Singapore has allowed the import of all other edible parts of the fish, including milt and skin, but only from farmed puffer fish. Previously, most customers at the restaurant were local Japanese corporate expatriates. However, local Singaporeans account for 60%-70% of all customers recently. 'I think things are going well,' said Kumiko Yamaguchi, the 53-year-old president of Osaka Prefecture-based Kanmonkai Co., which operates the restaurant, On the day, Fukutaro Yoshida visited the restaurant. Yoshida, 47, is the chief executive officer of Yoshida Suisan Co., a Shimonoseki-based company that supplies wild-caught and farmed puffer fish to the restaurant. Yoshida himself cooked in the restaurant's kitchen. 'There is significant potential for the consumption of puffer fish to grow in Singapore,' Yoshida said. 'We aim to pioneer overseas expansion.' However, expanding puffer fish export destinations is a challenge. According to the Agriculture, Forestry and Fisheries Ministry, many countries, excluding those in East Asia such as Japan, China and South Korea, do not have a tradition of eating fugu puffer fish. Its distribution is banned in the European Union, Britain, Vietnam and Taiwan, among other nations and regions. In this context, Yamaguchi Gov. Tsugumasa Muraoka in December last year requested Vietnamese Prime Minister Pham Minh Chinh to lift the import ban on puffer fish. The prime minister expressed his intention to begin considering the matter. Also, authorities in Taiwan have shown interest as a result of having been repeatedly contacted by interests in the prefecture, leading to the start of bilateral discussions. There are also developments outside Yamaguchi Prefecture. In April, the Kinashi Fugu Kyushu Headquarter Corp. in Usuki, Oita Prefecture, which processes and wholesales puffer fish, participated in a business event in Singapore. Usuki faces the Bungo Strait, which is known as a good fishing ground for tiger puffer. 'Some restaurants told me that they wanted to try puffer fish,' said Momoko Kinashi, the 38-year-old director of the company. 'I felt positive about their response.' Declining domestic consumption Seafood consumption in Japan is on the decline due to factors such as a declining population and a changing food culture. According to statistics from the ministry, the estimated consumption per person in fiscal 2023 was 21.4 kilograms, which is half of the peak of 40.2 kilograms in fiscal 2001. By contrast, overseas consumption is growing because seafood is a source of high-quality protein. For Kyushu and Yamaguchi Prefecture, both of which are surrounded by the sea and have thriving fishing businesses, exports are a key factor in the growth of the firms. According to the ministry, the output value of marine fisheries and aquaculture in Kyushu was about ¥350 billion in 2023, accounting for about 25% of the national total. Nagasaki Prefecture ranked second in the country, and Kagoshima Prefecture ranked fifth, indicating Kyushu's high potential. Regarding puffer fish, Tetsuya Ito of the Japan External Trade Organization (JETRO) Singapore representative office said: 'Milt has a rich flavor and texture and particularly meets local people's preferences, so I think there is room for consumption to grow. This is a good business opportunity for Japan.' Emphasis on food safety Employees of Global Ocean Works Group, which farms and processes buri yellowtail, dexterously fileted fish into three pieces early in the morning in late April at a processing plant overlooking Kinko Bay and Sakurajima in Kagoshima Prefecture.'To maintain the good flavor of the fish, we use water and machinery as little as possible,' said a plant manager. 'Instead, we focus on skilled manual labor.' Yellowtail, which is rich in fat, is also known as 'hamachi' in the United States and is as popular as salmon. Global Ocean Works Co., a core company of the group, was founded in 2009 by Yuji Masunaga, 56, the chief executive officer of the company. He previously worked at another fisheries company and started the firm with the goal of 'reforming the fisheries industry.' He has made full use of his network to expand exports to the United States and create new opportunities. The company focuses on ensuring quality by integrating all processes, from farming to processing and distribution. The company was the first in the trade to obtain an international certification. While most companies have one or two workers in their quality control department, it has 10. Global Ocean Works Co. established a produce traceability system that can track not only the date each fish was caught but also which fish pond it came from and what it was fed. This approach is essential for exporting to overseas markets that prioritize food safety, and it has become a driving force for the company's business expansion. In only 15 years, the company has grown to having an annual sales volume of ¥30 billion. The group now employs about 300 people. Its yellowtail exports to the United States account for about 10% of the domestic total, the biggest share in the field. Concerns about international situations Farming is becoming the mainstream in the global fisheries business. According to the Fisheries Agency, global marine aquaculture production reached 71.75 million tons in 2022, which is less than the catch volume of 80.97 million tons. However, aquaculture production has increased 2.6-fold over the past 20 years. By contrast, the catch volume has slightly decreased during that period. In Kyushu, there is an increase in activities surrounding the export of farmed fish. One difficulty is that exports can be affected by international circumstances. The tariff policy of U.S. President Donald Trump's administration can deal a blow to companies exporting to the United States. Global Ocean Works has about a year's worth of stock in the United States and is not likely to be affected for the time being. However, the company is seeking to expand its export channels to other parts of the world and is considering launching sales in Europe on a trial basis. 'If we cannot adapt to the changing market conditions, we will simply sink,' said Masunaga of Global Ocean Works. 'If we can adapt, the fisheries industry is undoubtedly a profitable growth industry.'
Nikkei Asia
a day ago
- Nikkei Asia
Chinese brand catches tailwind with powerful, pricier handheld fans
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Nikkei Asia
2 days ago
- Nikkei Asia
Trump to extend TikTok sale deadline for third time, White House says
U.S. President Donald Trump will again extend the deadline for China-based ByteDance to sell short-form video app TikTok. © Reuters WASHINGTON (Reuters) -- U.S. President Donald Trump will extend a June 19 deadline for China-based ByteDance to divest the U.S. assets of short video app TikTok for 90 days despite a law that mandated a sale or shutdown absent significant progress, the White House said on Tuesday. Trump had already twice granted a reprieve from enforcement of a congressionally mandated ban on TikTok that was supposed to take effect in January. "President Trump will sign an additional executive order this week to keep TikTok up and running," White House press secretary Karoline Leavitt said Tuesday.
