LONDON: Many Arabs have an accurate view of the size of Japan’s economy, a recent poll by Arab
News and YouGov has discovered, but many also underestimate the country’s reliance on cash, revealing the paradox that lies at the root of that reliance.
The wide-ranging poll, which asked residents across the MENA region for their views on a host of questions related to Japan, found that awareness of the size of Japan’s economy — the world’s third-largest — was generally high, with 63 percent of respondents identifying it as being in the top five globally.
Awareness is higher among the older generation, with 68 percent of those over the age of 40 placing the country’s economy in the top five, compared to 58 percent of those aged 16 to 24.
Interestingly, the poll’s findings suggest that Arabs who have visited Japan are more likely to misjudge the size of the country’s economy. Only 48 percent of respondents who had previously been to Japan — four percent of all those surveyed — identified the country as having one of the world’s five largest economies.
The poll found that 67 percent of respondents correctly identified Japan as a member of the G20, but only 59 percent recognized Japan as a member of the G7 — a smaller group of the world’s largest economies.
In the latter case, there was a strong divergence between age groups, with 69 percent of those aged over 40 placing Japan in the G7 compared to only 48 percent of those aged 16 to 24.
However, by far the greatest misconception that Arabs have about Japan’s economy is its reliance on cash. Cash is still the most common form of payment in Japan, accounting for four out of every five purchases, but the majority of Arabs did not know this — with only 10 percent of the poll’s respondents identifying cash as the most common form of payment in Japan. By contrast, 46 percent of respondents said credit cards were the prevalent form of payment, and more thought that cryptocurrency was most common — 12 percent — than chose cash.
In many ways, these results are unsurprising. As Anne Beade wrote recently in the Japan Times, the continued dominance of cash payments in Japan sits oddly with its “reputation as a futuristic and innovative nation,” especially given the speed with which other technologically advanced countries have adapted to the cashless society. As Beade notes, 90 percent of transactions in South Korea are now digital.
But Japan’s reliance on cash is also typical of one of the country’s central paradoxes — its combination of tradition and modernity. The reasons for the country’s continued reliance on cash are manifold — from Japan’s low crime rates to the ready availability of ATM machines. But, as Beade makes clear, a significant factor is Japan’s aging population, who are slow to adapt to change. According to data from the CIA World Factbook, almost a third of Japan’s population is over the age of 65. In Saudi Arabia, that figure is just 3.32 percent.
If Japan’s continued dependence on cash illustrates the tension that can exist between its aging population and its futuristic aspects, then there are also examples of the two forming a more harmonious relationship. At the Dubai World Congress for Self-Driving Transport on October 15, Toyota announced its intention to transform into a mobility company with an example of how new technology could help solve the challenges of Japan’s aging population.
Speaking of the island of Hokkaido, in the north of Japan, where railway services catering tothe island’s aging population have shut down, Madali Khalesi, Vice President of Automated Driving at the Toyota Research Institute for Automated Driving Development, advanced self-driving cars as a solution.
“As time goes on you become more elderly, you are feeling less comfortable to drive your own vehicle, and in Japan in many cases, you have to hand in your driving licence,” he said.
“So think about it: You don’t have a mode of transportation publicly, you can’t drive a vehicle, (but that) does not mean something has to give, right? And we believe the technology at least can help support that change.”
Arabs’ misconceptions about Japan’s relationship with cash are widespread but understandable, given the nation’s hi-tech image. But, in bringing to the fore these issues of tradition and modernity, such misconceptions unintentionally shine a light on one of Japan’s most beguiling paradoxes.
Cash dependence reveals paradox of Japanese society
Cash dependence reveals paradox of Japanese society
- YouGov pan-#Arab study finds high awareness of relative size of #Japan's economy
- Continued reliance on cash said to reflect #Japan's combination of tradition and modernity
Saudi Aramco lowers propane, butane prices for May
RIYADH: Saudi Aramco has reduced its official selling prices for propane and butane for May 2025, according to a company statement issued on Tuesday.
The price of propane was cut by $5 per tonne to $610, while butane saw a steeper reduction of $15 per tonne, bringing it to $590. The adjustments reflect shifts in market conditions and follow a downward trend from the previous month.
Propane and butane, both classified as liquefied petroleum gas, are widely used for heating, as vehicle fuel, and in the petrochemical industry. Their differing boiling points make each suitable for distinct industrial and domestic applications.
Aramco’s LPG prices are considered key benchmarks for supply contracts from the Middle East to the Asia-Pacific region.
The global LPG market is undergoing a significant shift as steep tariffs on US imports prompt Chinese buyers to replace American cargoes with supplies from the Middle East.
Meanwhile, US shipments are being redirected to Europe and other parts of Asia.
This realignment is expected to put downward pressure on prices and demand for shale gas byproducts, posing financial challenges for both US shale producers and Chinese petrochemical companies. At the same time, it is likely to drive increased interest in alternative feedstocks such as naphtha.
Middle Eastern suppliers are emerging as key beneficiaries, filling the gap left by reduced US exports to China. In addition, opportunistic buyers in Asian markets like Japan and India are capitalizing on the price drops to secure more favorable deals.
Trump to reduce impact of auto tariffs, commerce secretary says
WASHINGTON: President Donald Trump’s administration will move to reduce the impact of his automotive tariffs on Tuesday by alleviating some duties imposed on foreign parts in domestically manufactured cars and keeping tariffs on cars made abroad from piling on top of other ones, officials said.
“President Trump is building an important partnership with both the domestic automakers and our great American workers,” Commerce Secretary Howard Lutnick said in a statement provided by the White House.
“This deal is a major victory for the President’s trade policy by rewarding companies who manufacture domestically, while providing runway to manufacturers who have expressed their commitment to invest in America and expand their domestic manufacturing.”
The Wall Street Journal, which first reported the development, said the move meant car companies paying tariffs would not be charged other levies, such as those on steel and aluminum, and that reimbursements would be given for such tariffs that were already paid.
A White House official confirmed the report and indicated the move would be made official on Tuesday.
Trump is traveling to Michigan on Tuesday to commemorate his first 100 days in office, a period that the Republican president has used to upend the global economic order.
The move to soften the effects of auto levies is the latest by his administration to show some flexibility on tariffs, which have sown turmoil in financial markets, created uncertainty for businesses and sparked fears of a sharp economic slowdown.
Automakers said earlier on Monday they were expecting Trump to issue relief from the auto tariffs ahead of his trip to Michigan, which is home to the Detroit Three automakers and more than 1,000 major auto suppliers.
General Motors, CEO Mary Barra and Ford CEO Jim Farley praised the planned changes. “We believe the president’s leadership is helping level the playing field for companies like GM and allowing us to invest even more in the US economy,” Barra said.
Farley said the changes “will help mitigate the impact of tariffs on automakers, suppliers and consumers.”
Last week, a coalition of US auto industry groups urged Trump not to impose 25 percent tariffs on imported auto parts, warning they would cut vehicle sales and raise prices.
Trump had said earlier he planned to impose tariffs of 25 percent on auto parts no later than May 3.
“Tariffs on auto parts will scramble the global automotive supply chain and set off a domino effect that will lead to higher auto prices for consumers, lower sales at dealerships and will make servicing and repairing vehicles both more expensive and less predictable,” the industry groups said in the letter.
The letter from the groups representing GM, Toyota Motor, Volkswagen, Hyundai and others, was sent to US Trade Representative Jamieson Greer, Treasury Secretary Scott Bessent and Commerce’s Lutnick.
“Most auto suppliers are not capitalized for an abrupt tariff induced disruption. Many are already in distress and will face production stoppages, layoffs and bankruptcy,” the letter added, noting “it only takes the failure of one supplier to lead to a shutdown of an automaker’s production line.”
IMF Executive Board to meet on May 9 to review Pakistan’s loan programs
- IMF board’s approval of staff-level agreement with Pakistan will pave the way for disbursement of $1 billion
- Islamabad also secured a new loan program with IMF in March to help build resistance against natural disasters
KARACHI: The International Monetary Fund’s (IMF) Executive Board will meet on May 9 to review its staff-level agreement with Pakistan for an ongoing $7bn bailout program and a new climate resilience loan scheme with Islamabad, the global lender said on its website recently.
The IMF reached a staff-level agreement with Pakistan in March on the first review of the country’s Extended Fund Facility (EFF) and a new $1.3 billion loan arrangement under the Resilience and Sustainability Facility (RSF). Pakistan secured the EFF program last year and deems it crucial to escape a prolonged economic crisis. The staff-level agreement, once approved by the IMF Executive Board, will pave the way for an immediate disbursement of about $1 billion for Pakistan.
The RSF, on the other hand, will support Pakistan’s efforts in building resilience to natural disasters, enhancing budget and investment planning to promote climate adaptation, improve the efficient and productive use of water. It will also help in strengthening Pakistan’s climate information architecture to improve the disclosure of climate risks and align energy sector reforms with mitigation targets.
“May 9, 2025, Pakistan-first review under the extended arrangement under the Extended Fund Facility, request for Modification of Performance Criteria, and request for an arrangement under the Resilience and Sustainability Facility,” the IMF wrote on its website on Friday, disclosing its Executive Board’s schedule.
Pakistan has been prone to natural disasters and consistently ranks among the most severely affected countries in the world due to climate change effects. Unusually heavy rains and melting of glaciers in 2022 triggered flash floods across the country, killing over 1,700 people and inflicting losses over $33 billion.
The IMF program has played a key role in stabilizing Pakistan’s battered economy, which has made some gains in recent months, most notably a reduced inflation rate. The government has said the country is on course for a long-term recovery, while Finance Minister Muhammad Aurangzeb has vowed Islamabad will continue to implement financial reforms mandated by the international lender.
Pakistan secured the $7 billion loan program in September 2024 as it attempted to consolidate its economy since averting a default in 2023. Islamabad has since undertaken several reforms to reduce public debt, maintain low inflation, improve energy sector viability, and accelerate growth.
Pakistan hopes to achieve further economic progress by increasing its exports and attracting foreign investment from regional allies, particularly the Gulf countries. Islamabad has signed memoranda of association (MoUs) regarding trade and investment worth billions of dollars with Saudi Arabia, the United Arab Emirates, Azerbaijan, China and other countries in recent months.
Oil Updates — crude falls as economic jitters dampen demand outlook
SINGAPORE: Crude oil prices fell on Tuesday as investors lowered their demand growth expectations due to the ongoing trade war between the US and China, the world’s two biggest economies.
Brent crude futures fell by 78 cents, or 1.18 percent, to $65.08 per barrel by 10:49 a.m. Saudi time. US West Texas Intermediate crude futures fell 75 cents, or 1.21 percent, to $61.30 a barrel. Both benchmarks fell more than $1 on Monday.
“Markets are closely monitoring the US-China trade negotiations, understanding that deteriorating trade relations between the world’s two largest economies could lead the global economy toward a recession,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.
“The lack of confidence in future demand and the absence of concrete signals for demand revival in mainland China will continue to overshadow oil prices.”
US President Donald Trump’s push to reshape world trade by imposing tariffs on all US imports has created a high risk that the global economy will slip into a recession this year, according to a majority of economists in a Reuters poll.
China, hit with the steepest of those tariffs, has responded with its own levies against US imports, stoking a trade war between the top two oil consuming nations. That has prompted analysts to sharply lower their oil demand and price forecasts.
Barclays on Monday cut its 2025 Brent crude price forecast by $4 to $70 a barrel, citing elevated trade tensions and a pivot in production strategy by the OPEC+ group as drivers of a 1 million barrel per day oil supply surplus this year.
Meanwhile, several members of OPEC+, which comprises the Organization of the Petroleum Exporting Countries and its allies, will suggest an acceleration of output hikes for a second consecutive month in June, sources told Reuters last week.
“A substantial (oil) price decrease appears probable if exporting countries boost production,” oil analyst Philip Verleger said in a note.
US crude oil stockpiles also likely rose by about 500,000 barrels in the week ended April 15, according to a preliminary Reuters poll of analysts on Monday.
Industry group American Petroleum Institute will publish its estimates on US oil inventories on Tuesday. Official figures from the Energy Information Administration will follow on Wednesday.
PIF’s AviLease secures investment-grade ratings from Moody’s, Fitch
RIYADH: Saudi Arabia’s AviLease has secured investment-grade corporate credit ratings from Moody’s and Fitch Ratings, as the global aircraft lessor continues to expand its portfolio and strategic role within the Kingdom’s aviation sector.
Owned by Saudi Arabia’s Public Investment Fund, AviLease announced it received a Baa2 rating with a stable outlook from Moody’s and a BBB rating with a stable outlook from Fitch.
The two agencies highlighted AviLease’s high-quality portfolio of new-technology aircraft with a strong credit mix, alongside its robust balance sheet and growth trajectory.
They noted that the company is expected to become one of the largest players in the global leasing industry by 2030.
“The ratings open the door for even greater financial flexibility, as we will be able to tap into the unsecured debt capital markets,” Edward O’Byrne, CEO of AviLease, said in a press release.
He continued: “Achieving investment-grade ratings in under three years since our establishment is a remarkable feat, and we believe it positions AviLease within a select group of lessors in the industry in record time.”
The ratings also recognize AviLease’s strategic role in supporting PIF’s aviation sector initiatives under Saudi Arabia’s Vision 2030.
“These ratings will enable AviLease to access global capital markets to finance its business strategies, positioning itself at the forefront of the aircraft leasing industry, in complete alignment with the National Aviation Strategy and Saudi Arabia’s Vision 2030,” Fahad Al-Saif, chairman of AviLease, said.
