THE Japanese are back. And in a big way. While the world has been focused on China, a great wave of Japanese investment is reaching every sector of Australia's economy.

The Japanese government has sunk ever deeper into debt as it tries to spend its way out of the country's 15-year stagnation, but Japanese companies have mostly sorted out their balance sheets, paid off debt and improved their cashflows. Many have money to burn in banks that offer pitiful -- if any -- interest.

If they want to grow, they have to go overseas. And Australia has re-emerged as a favoured destination.

Japanese investment in Australia surged 16 per cent last year and is now worth more than $90 billion. Australia is the world's 14th largest economy, but has become the seventh top target for Japanese investment.

Source: The Australian, 19June09

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