The Japanese have not quite grasped free market competition yet, and groups in trouble still expect – and get – government hand-outs to tide them over when times get tough. The Japan Personal Computer Software Association is considering applying for government subsidies for employment rationalisation at its member firms, which are faced with a profit slump as a result of the sluggish personal computer market, according to an association official. The growth of the personal computer market turned negative last year and had a direct impact on software firms, he said. We are considering applying, but have not reached a decision. Industries designated by the labour minister can receive subsidies for payments to workers who will be retrained for new jobs, shifted to new businesses or laid off temporarily, Reuter notes. Most of the association’s 362 member firms are either unlisted or listed on the over-the-counter market, the official said. Among them is troubled Ascii Corp, which earlier this month said it had agreed with six banks a $130m financing plan to cover its fund management and investment costs for the current fiscal year and redemption of its convertible bonds. Ascii had requested financial support because it had more than $320m in debts outstanding. CSK Corp, also an association member and Japan’s biggest computer software development firm, is listed on the first section of the Tokyo Stock Exchange.
