A Kyushu FG study suggests that the electronic device industry cluster in South Kyushu's 3 prefectures could generate ¥216 billion in annual economic ripple effects and raise GRP by 0.6% if mutual procurement within the 3 prefectures increased by just 1%.
Kyushu Financial Group announced on 27 October the results of a survey and analysis of the economic ripple effects of electronic device-related industries in Kumamoto, Kagoshima and Miyazaki, the 3 prefectures of South Kyushu. Related investment since 2022 has exceeded 270 projects, including projects of less than ¥10 billion, and the findings said that large-scale capital investment and the start of mass production were benefiting the regional economy.
At the same time, self-sufficiency rates within the region are low across the prefectures, highlighting the structural challenge of relying on procurement from outside the 3 prefectures for much of their demand. According to an FG simulation, if manufacturers in the 3 prefectures increased the proportion of procurement from the other 2 prefectures by 1%, the resulting economic ripple effects would amount to an additional ¥216 billion and raise gross prefectural product by approximately 0.6% annually.
President Kasahara Yoshihisa (笠原慶久), who spoke at the press conference, said the group plans to prevent funds from flowing out of the region and return the benefits of production to local communities.