(Bloomberg) -- Japanese companies are on an overseas buying spree.

Canon Inc., Japan Post Holdings Co. and Itochu Corp. have led $28 billion of purchases abroad so far this year, the fastest start on record for Japanese acquirers, according to data compiled by Bloomberg going back to at least 2006. They’re paying up, too, with takeover premiums that are about double the global average, the data show. The trend is set to continue.

After years of building up cash to a record 233 trillion yen ($2 trillion) as of the end of September, Japanese companies are looking to convert those stockpiles into future growth by investing overseas where the outlook is brighter. While the yen’s 14 percent drop against the dollar in the past year has made foreign acquisitions more expensive, economists project the Japanese currency will weaken further amid Prime Minister Shinzo Abe’s campaign to fight deflation. That gives companies the incentive to spend now.

Japan Tobacco Inc., Asia’s biggest listed cigarette maker, has declared a “year of investments” while machinery maker Mitsubishi Heavy Industries Ltd. and brewer Kirin Holdings Co. are also considering growth through takeovers abroad.

“Japan Inc.’s sense of urgency in making acquisitions abroad is strengthening,” said Makoto Shiono, managing director of Tokyo-based consultancy Industrial Growth Platform Inc. “Japan’s massive monetary easing slashed the value of cash. So if you have tons of cash, investors will be pressing you to invest in companies to generate cash flow for future growth.”

David Fuller's view

This is a positive sign that Japan is no longer turning inward.  Instead, corporate Japan, flush with cash but facing a declining domestic population, is pursuing additional growth through overseas takeovers. 

This may not always work and it can take time to engage successfully with foreign acquisitions, not least as different cultures, customs and languages are often involved.  Nevertheless, it signifies growing confidence, which has too often been absent in corporate Japan since its bubble burst in 1990.  Overseas analysts and investors covering Japan should take note.