Japan urges disaster cooperation

The idea, initiated by JICA, was proposed to the Japanese and Thai governments in November. JICA calls it Otagai Business Continuity, which means a plan to help each other. JICA is conducting a feasibility study to select the first pilot project, which would involve a couple of industrial estates from both countries. It expects to start the pilot project between October and December this year, said Daisuke Matsushima, a JICA representative, who is now working with Thailand’s National Economic and Social Development Board.
The model was tried 17 years ago in a small business in Kakasawa that was affected by an earthquake. The cooperation at that time happened among Japanese firms. Otagai Business Continuity has been implemented more after the serious impact from the earthquake and tsunami in Japan last year. Now, the plan will be implemented between the two countries.
Matsushima said both countries had learned lessons from the impact of Japan’s earthquake and tsunami and the Thai floods last year, which caused severe production and supply-chain disruptions. Hence JICA has come up with the idea for both countries to have a “sister cluster”, which is a back-up of manufacturing bases for each manufacturer. Whenever there is a natural disaster or any disruption in one country, the operation in another country will have to support the affected one. This will help prevent disruption to production.
Matsushima said the latest survey by the Japanese Chamber of Com-merce (JCC) and the Japan External Trade Organisation (Jetro) showed that more than 90 per cent of Japanese investors would remain in Thailand, but they want a back-up system to assure them that their businesses would not be disrupted because of natural disasters.

SUPPLIERS IN CRISIS
JICA has already approached Japanese local administrations and 15 of them are willing to cooperate.
“The partners under what we call ‘sister cluster’ will help each other to strengthen their businesses during the normal situation, and be suppliers for each other during a crisis. The global economic crisis is a good opportunity for us to try this model.
“We [JICA] hope Thai industrial-estate operators and manufacturers will cooperate with us. Make it happen and together create a sustainable competition,” he said.
Kazuhiro Yoneda, president of JICA Bangkok, said the Thai government’s flood-protection measures were not enough to prevent disruption in the industrial sector.
The collaboration between the two countries under the “sister cluster” concept as a business-continuity plan is necessary to ensure that the customers of both Thai and Japanese companies are not affected by any unprecedented situation.
Shinji Hosotsubo, founder of Japanese Otagai Business Continuity, said clients of Thai and Japanese companies would no longer accept excuses for delivery disruptions due to natural disasters. If the disruption happens again, it will be difficult to restore the confidence of customers.
However, he admitted that although the model was good, the execution was difficult. Both sides have to accept the principle of the model – that it is a way to strengthen business, not to compete with each other.
To create trust and respect for each other, a law or agreement is needed to confirm that both will not compete against each other.
Meanwhile, both need to have similar production and safety standards and technology.