Tag: Asia

The four new entities that would be set up after the privatization of Japan Post in April 2007 will likely be earning a total annual pretax profit of 300-900 billion yen after 2017 when the transitional period is completed, according to government estimates. In estimating how much money privatized postal operations would make in new businesses, such as international shipping or stock brokering at post offices, the government assigned different degrees of achievement. If none of the new businesses has any success, the government estimated that the total annual pretax profit for the four firms would average 300 billion yen through 2021. If the entry into new businesses is only 50% successful, the government estimated the figure would reach 600 billion yen, reaching 900 billion yen if total success is achieved.

The Japanese government has unveiled its outline of bills for privatizing the country’s postal operations, which will oblige the state to sell two-thirds of its stake in a proposed postal services holding company by the end of March 2017. The outline, compiled by the government’s preparatory office for postal business privatization scheduled for April 2007, was shown to the ministries and agencies concerned on Friday. To realize a smooth transition to the privatization takeoff day, the office proposed that Japan Post–the existing postal services public corporation–be transformed into the government’s wholly owned company during the transition period to 2007.