I was priveleged to be part of a delegation of executives today, through the European Business Council (EBC), that visited the Ministry of Economics, Trade and Industry (METI) for an open discussion on 2 issues surrounding the future of Japan;
1. Human Capital- How can Japan build human capital that the Japanese business community needs to take part in the global economy
2. Foreign Direct Investment- What can Japan do to incentivise it
METI and the Japan government appear to be genuinely concerned about Japan's position in the global community.
The fundamental basis of the argument was set early in the meeting by the Japan President (a Japanese gentleman with a glowing presence) of one of the world's largest and most successful multinational companies commented that "The Government of Japan is only ever considering how to get in the game, but they are never considering how to WIN THE GAME".
This CEO went on to say that Japan needs to stand up and do something extra-ordinary. If Japan's corporate tax rate is 42%, and the rest of the world is around 25- 30%, then how about Japan standing up and offering a corporate tax rate of 15% to any foreign direct investment in Japan?
Or, he suggested "If you want research and development in Japan, why not offer a multi-national company 100 million dollars to move their facility here?"
As this CEO quite rightly mentions, 100 million dollars or a 15% tax rate is a game winner. A mediocre 5% reduction in the corporate tax rate will not incentivise anyone to shift their business to Japan.
The delegation then openly asked METI to consider a number of other points;
- Female participation in the workforce is essential. How about being the world leader in "Childcare Facilities", so females can go back to work? Reform is needed to incentivise females back into the workforce, and a mind change is required in Japanese child raising that placing your children in facilities is OK!
- A mind change is needed in Japan with regard to having the young youth of Japan get overseas experience. Overseas experience needs to be seen as the "thing to do". The Japanese government has got to send this message. Why not incentivise US and European universities to come to Japan, or fully fund them here?
- Young Japan needs to be encouraged to challenge things. There is a lack of urgency in understanding that if the young of Japan don't stand up, they won't have a future at all. Once again, someone needs to send this message, and someone needs to encourage entrpreneurship.
- Japan needs a silicon valley. There are a number of leading industries in Japan that could lead Japan into the future; mobile technologies, data center offerings, senior citizen business, self health care, and many more, but they need a "silicon valley" to assist in their development
- Japan needs to sell itself better to the world. There is an incredible amount of potential in tourism and other industries if only Japan can market themselves professionally to the world. This means being strategic with advertising such as "Yokoso Japan" that was incredibly poorly coordinated with each part of the process done independently by a different vendor (a review from the Japan President of one of the world's leading advertising agencies).
The summary being that while the Japanese Government is finally seeing that they have to do something, they are NOT "getting the point". To win the game, you have to stand up and be different. Be bold. Do something that nobody is thinking of doing. It was a pity that such a great discussion was only heard by a couple of "kacho" from METI / JETRO. That alone just shows the extent of the urgency...... there is still not enough urgency......
It really does start with the young of Japan. They are the future, and the Japanese government has to start sending the message to get them out of Japan to learn other languages and cultures. This coupled with some "BIG INITIATIVES" that shock the world and actually are game changing "FDI bringers" would really turn Japan around.
More Than Japan Housing, More Than Japan Cars and Furniture, More than Japan Serviced Apartments, More Than Japan Destination Services, More Than Japan License Conversion, More Than Japan Information!
1. Human Capital- How can Japan build human capital that the Japanese business community needs to take part in the global economy
2. Foreign Direct Investment- What can Japan do to incentivise it
METI and the Japan government appear to be genuinely concerned about Japan's position in the global community.
The fundamental basis of the argument was set early in the meeting by the Japan President (a Japanese gentleman with a glowing presence) of one of the world's largest and most successful multinational companies commented that "The Government of Japan is only ever considering how to get in the game, but they are never considering how to WIN THE GAME".
This CEO went on to say that Japan needs to stand up and do something extra-ordinary. If Japan's corporate tax rate is 42%, and the rest of the world is around 25- 30%, then how about Japan standing up and offering a corporate tax rate of 15% to any foreign direct investment in Japan?
Or, he suggested "If you want research and development in Japan, why not offer a multi-national company 100 million dollars to move their facility here?"
As this CEO quite rightly mentions, 100 million dollars or a 15% tax rate is a game winner. A mediocre 5% reduction in the corporate tax rate will not incentivise anyone to shift their business to Japan.
The delegation then openly asked METI to consider a number of other points;
- Female participation in the workforce is essential. How about being the world leader in "Childcare Facilities", so females can go back to work? Reform is needed to incentivise females back into the workforce, and a mind change is required in Japanese child raising that placing your children in facilities is OK!
- A mind change is needed in Japan with regard to having the young youth of Japan get overseas experience. Overseas experience needs to be seen as the "thing to do". The Japanese government has got to send this message. Why not incentivise US and European universities to come to Japan, or fully fund them here?
- Young Japan needs to be encouraged to challenge things. There is a lack of urgency in understanding that if the young of Japan don't stand up, they won't have a future at all. Once again, someone needs to send this message, and someone needs to encourage entrpreneurship.
- Japan needs a silicon valley. There are a number of leading industries in Japan that could lead Japan into the future; mobile technologies, data center offerings, senior citizen business, self health care, and many more, but they need a "silicon valley" to assist in their development
- Japan needs to sell itself better to the world. There is an incredible amount of potential in tourism and other industries if only Japan can market themselves professionally to the world. This means being strategic with advertising such as "Yokoso Japan" that was incredibly poorly coordinated with each part of the process done independently by a different vendor (a review from the Japan President of one of the world's leading advertising agencies).
The summary being that while the Japanese Government is finally seeing that they have to do something, they are NOT "getting the point". To win the game, you have to stand up and be different. Be bold. Do something that nobody is thinking of doing. It was a pity that such a great discussion was only heard by a couple of "kacho" from METI / JETRO. That alone just shows the extent of the urgency...... there is still not enough urgency......
It really does start with the young of Japan. They are the future, and the Japanese government has to start sending the message to get them out of Japan to learn other languages and cultures. This coupled with some "BIG INITIATIVES" that shock the world and actually are game changing "FDI bringers" would really turn Japan around.
More Than Japan Housing, More Than Japan Cars and Furniture, More than Japan Serviced Apartments, More Than Japan Destination Services, More Than Japan License Conversion, More Than Japan Information!
The H&R Group is MORE THAN RELOCATION!
www.morethanrelo.com
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