ENTERING the Japan market is not without its difficulties, but it is still possible to thrive in the country with the right factors, said the chief executive of International Enterprise Singapore on Thursday.

Mr Chong Lit Cheong, speaking at a seminar on Doing Business In Japan, said, 'Cultural differences and corporate integration issues are the most significant challenges.

'However with perseverance, a good understanding of the market and a good product and service, it is possible to thrive in Japan.'

To underscore the point, Mr Chong highlighted the opportunities for mergers and acquisitions, which some Singapore companies have already ventured into.

'In July this year, Frasers Hospitality Private Limited added 115 apartments into their Japanese property portfolio. Just last month, ParkwayLife Reit, acquired seven nursing homes in Japan,' he said.

'As market valuation comes down, it is indeed an opportune time for Singapore companies to consider making such strategic acquisitions.'

Economic relations between the two countries are also booming. Mr Chong said that last year, Japan was Singapore's sixth largest trading partner, with total bilateral trade amounting to US$37 billion (S$56 billion).

And for the first nine months of this year, the figure had reached US$31 billion, up 16 per cent over the same period in 2007.

'Given the current economic crisis, Singapore companies may be more cautious in their overseas expansion plans. However, it is essential that companies adopt a long-term view and take advantage of growth opportunities arising from this downturn,' Mr Chong added.