JUNEASIA BUSINESS OUTLOOK8NEWSROOMJAPANESE STARTUP TIMEE PLANNING IPO VALUED AT $1 BILLIONJapan plans to maintain its goal of achieving a primary budget surplus in the next fiscal year, according to a draft of annual policy guidelines for budget planning. The government also aims to reduce the ratio of debt to gross domestic product (GDP), as highlighted in the draft.A government projection from January suggested that a primary budget surplus for Japan, the world's fourth-largest economy, could be achievable by fiscal 2025. This projection assumes continued strong economic growth and ongoing efforts to cut spending. The primary budget balance, which excludes new bond sales and debt servicing costs, has been in deficit for most of the postwar era, with the exception of the asset bubble period between 1986 and 1991.Japan currently holds the highest public debt among industrialized nations, exceeding twice the size of its economy. The goal of a primary budget surplus was initially set in the early 2000s but has been postponed multiple times.The draft policy highlights that Japan now faces unprecedented opportunities to fully exit deflation and achieve growth. "We need to move forward to attain both an economic revival and fiscal health," it states. However, it also emphasizes that the primary budget surplus goal should not limit the government's ability to employ essential policy options in varying economic conditions. Japanese startup Timee, which operates a platform connecting workers seeking side gigs with labor-strapped businesses, is targeting a listing on the Tokyo Stock Exchange in July, according to two people familiar with the matter. Founded in 2017, Timee aims for a valuation of approximately $1 billion, with Daiwa Securities and Morgan Stanley serving as the joint global coordinators for the listing. The Tokyo Stock Exchange could approve the listing as early as late next week, said one of the sources, who all requested anonymity as the information is not public.Timee's app allows users to work shifts as short as one hour at restaurants, convenience stores, and hotels, with quick payment for their work. The startup boasts 7 million registered users. This growth is indicative of a changing labor market in Japan, driven by demographic challenges, inflationary pressures, and a shift to flexible working styles since the COVID-19 pandemic.Japan is projected to face a labor shortfall of 11 million people by 2040, according to Recruit Works Institute, as the labor supply shrinks while demand remains strong. Side gigs are becoming increasingly popular in Japan as businesses seek flexible labor sources and workers look to supplement their incomes. JAPAN TARGETING BUDGET SURPLUS IN UPCOMING FISCAL
< Page 7 | Page 9 >