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Here’s why Japan is obsessed with robots

But people find robots at banks and stores more entertaining than useful

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Robot cheerleaders developed by Murata Manufacturing Co. perform synchronised dancing as bicyclist robot "Murata Seisaku-kun", or Murata Boy is seen in the background during the annual CEATEC Japan advanced technologies show in Chiba last October. Photo: Koji Ueda/AP
CNBC

Rarely a week passes without a headline about a new type of robot coming out of Japan.

Whether they’re making an evening cocktail, performing at a restaurant or combining cellphone communication with personal companionship — the hype is real in Japan.

In Japan automation is less of a threat to jobs and more about economic survival. In 2014, Prime Minister Shinzo Abe unveiled reforms with hopes that the robot market would reach US$21 billion by 2020.

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As the nation suffers from a chronic labour shortage, it is striving to be the largest robotics-support society in the world.

Meanwhile, Japan’s service sector accounts for about 70 per cent of its economic output, yet labour productivity is 40 per cent less than in the U.S., according to Japanese government estimates. The contrast puts a strain on the industry sector and now companies like McDonald’s are cutting back on the number of 24-hour outlets.

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Economists argue that Japan either needs to accept more immigrants or put robots to work.

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