Networking for Tomorrow

The ACCJ closes out 2024 with an evening of honors and connections

The Kiku Ballroom at the Hilton Tokyo in Shinjuku erupted on December 5 with vivid lights, pulsing sounds, and the chatter of future business deals being made as the American Chamber of Commerce in Japan (ACCJ) closed out 2024 with its final signature event of the year.

ACCJ President Victor Osumi took to the stage to the beats of the Top Gun theme as he welcomed everyone to Bridging to the Future: Networking for Tomorrow, a cocktail-style reception that brought together more than 260 ACCJ members and guests.

“This event is a moment to recognize our achievements, strengthen our network, and express gratitude to all of you here—and also those not here tonight—who made 2024 a success,” said Osumi.

Next, to mark the incredible achievements of chamber members, ACCJ Vice President Sarah Bader, Vice President–Kansai Jiro Kawakami, and Vice President–Chubu Robert Roche joined Osumi on stage to present the 2024 ACCJ Leaders and Volunteers of the Year awards (more on page 13).

“It has been a tremendous year full of accomplishments and connections,” said Osumi as he closed out the presentation segment of the evening. “As we look to the future, let’s continue to forge partnerships and bring progress and grace to a future of excellence.”

With formalities concluded, attendees indulged in the Hilton Tokyo’s culinary artistry while enjoying the beats of DJ Milky B and forming new connections in Japan’s vibrant business community.

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Leading the Way

The ACCJ recognizes exceptional contributions from across its three chapters

Each year, the American Chamber of Commerce in Japan (ACCJ) honors members who have shown extraordinary dedication. On December 5, six recipients were recognized for their work during 2024 by ACCJ President Victor Osumi at the chamber’s year-end Networking for the Future event at the Hilton Tokyo in Shinjuku.

Leaders of the Year

Tomoki Fukasawa
The ACCJ sincerely thanks Tomoki Fukasawa for his exemplary leadership of the Young Professionals Forum (YPF).

Since becoming co-chair in 2023, he has implemented a three-point plan for the YPF focused on consistency, engagement, and growth. The strategy was a great success in 2024, leading to seven sold-out events that attracted nearly 250 attendees.

Through his leadership and determination to support the next generation of leaders, Fukasawa has strengthened the chamber’s presence in the business community and created new opportunities for young professionals to get involved.

Nao Geisler (Chubu)
The ACCJ extends heartfelt thanks to Nao Geisler for her service as chair of the Chubu Community Service Committee.

Her leadership skills were critical to the success of May’s ACCJ/NIS Walkathon, which raises funds each year for local charities. While the event itself is just one day, its success is built on months of planning, logistics, and negotiations.

Geisler’s hard work this year led to a 15-percent increase in funds raised, enabling the ACCJ and co-organizer Nagoya International School to touch even more lives in the Chubu region.

Chihiro Kijima (Kansai)
The ACCJ recognizes Chihiro Kijima for her exceptional leadership as co-chair of the Kansai Diversity and Inclusion Committee.

As a key member of the Kansai Chapter, Kijima has guided the chamber’s D&I efforts at a critical time for the movement. Her leadership has ensured that members hear from dynamic speakers on topics that resonate with a diverse audience.

Kijima’s deep experience in event planning has extended the ACCJ’s influence in the Kansai region.

Volunteers of the Year

Mao Kawakami
The ACCJ expresses its sincerest appreciation to Mao Kawakami for her enthusiastic support of the Women in Business (WIB) Committee.

Kawakami’s excitement and dependability have brought fresh energy to the Breakfast in the Boardroom series.

By eagerly attending each briefing session with speakers, conducting impeccable research, and preparing spot-on invitations, she has been integral to the success of the series. Her passion for the WIB committee serves as an inspiration to others.

Natsuko Gomi (Chubu)
The ACCJ is indebted to Natsuko Gomi for her dedication to the Chubu Children’s Fund, which provides university and vocational-school scholarships to young adults transitioning out of orphanages.

Gomi’s commitment goes far beyond the typical volunteer role. Her ability to connect with students on a personal level has made a significant impact on their confidence and readiness to face the challenges of adulthood.

As she continues to streamline operations, Gomi’s passion for the fund has ensured that it can reach more students and provide the support they need.

Kishin Okada (Kansai)
The ACCJ expresses its deepest gratitude to Kishin Okada for his efforts to foster acceptance and energize young members as part of the Kansai Diversity and Inclusion Committee.

Okada has been instrumental to the success of the Kansai Chapter’s signature leadership series and the Kansai D&I Summit. And as a guest speaker for a Kansai Young Professionals event, he has also inspired the next generation of leaders.

An inclusive voice, Okada brings people together and forges new ideas while amplifying the ideas of young professionals.

Japan Surprises 2025

Ten possible twists and turns to watch for in the Year of the Snake

Predicting the future is both a science and an art. Science-based quantitative forecasts may appear more credible, but are ultimately doomed to miss real breakthroughs. This is because the focus on the past means you cannot escape modeling the future as a recurrence of what has happened before. In contrast, forecasts based on intuition, inspiration, or experience are often seen as not credible and easily dismissed. Like a beautiful Bach sonata, the former follows a predictable logic, while the latter resembles an inspired jazz solo, delivering genuine surprises.

What we know for sure is that 2025 will be shaped by both the evolution of existing trends and the truly unexpected. And with the Year of the Snake poised to be a good one for Japan, here are 10 possible twists in what I hope will be a happy, healthy, and prosperous year for all readers of The ACCJ Journal.

1. Japan’s inflation rate spirals.

Inflation will accelerate in Japan during 2025, ending up significantly higher than in the United States, Europe, and China. Why? On top of continued cost-push inflation from a weak yen, demand-pull inflation will be turbocharged by three factors: wages rising faster than expected, the real estate boom delivering a more powerful positive wealth effect than anticipated, and both monetary and fiscal policy remaining too stimulative for too long.

2. No-more-tax-hikes policy leads LDP to win.

The Liberal Democratic Party’s (LDP’s) loss of parliamentary control in 2024 was a shock, and with it came a significantly higher risk of tax hikes. If the LDP reasserts its pro-business, pro-risk, pro-deregulation stance, the party’s leadership credentials will grow. The greater the contrast to the more socialist-inclined opposition parties, the greater the chances of a strong LDP comeback, possibly in a double election of both the upper and lower houses of the Diet in July. The upper house election is mandatory, while the lower house election can be called by the prime minister—probably Ishiba’s swan song.

3. Next-gen LDP leaders promote abolition of inheritance tax.

Over the next 15 years, an estimated ¥500–750 trillion of household wealth will become unstuck due to inheritance. That’s 1–1.5 times Japan’s gross domestic product (GDP). Much will be used to pay down the national debt. At more than 50 percent, Japan’s inheritance tax rates are famously high. While this makes the accountants happy, it doesn’t create growth or drive investments in future prosperity.

A long-overdue, positive surprise would be if Japan’s next-generation leaders demanded reform of the inheritance tax. Japan could take a cue from the otherwise much-admired Nordics. Recently, Sweden cut its inheritance tax to zero and Denmark dropped its to 15 percent—policies that promote channeling the accumulated wealth of the baby boomers into future investments. Now that’s worthy of being called new capitalism.

4. Japan wins a major global defense contract.

Japan’s national security policy took a clear turn in 2022, and the defense budget will more than double from one to two percent of GDP. A real surprise would be if, alongside increased defense spending, Japan were to win a major global defense contract. The greater the evidence that Japan’s spending on national security is actually an investment in global competitiveness, the happier taxpayers and investors would be.

5. More buyouts than initial public offerings (IPOs).

Japan’s management and leveraged buyout boom will accelerate, spurred on by pressure from shareholders and stock exchanges. Why stay listed and deal with all those shareholder demands when you can be private and control your own destiny?

The surprise? It’s possible that 2025 could be the first year that more companies go private and delist from the stock market than new start-ups go public and list via IPOs. As Japanese banks become more and more profitable—and thus keener to lend—this will become increasingly probable. The battle of foreign private equity bidding against local white knights will not just be fun, it will pull Japanese equities out of the value trap.

6. Japan Inc. starts buying start-ups.

Japanese chief executives could begin stepping out of their comfort zones and buying start-ups for future growth, rather than just relying on in-house research and development teams.

One reason for US corporate dynamism is the aggressive use of outside innovation to supplement, improve, or disrupt inside businesses—90 percent of US start-up exits are acquisitions, while 90 percent of Japanese start-up exits are IPOs. Mark my words: Japan’s new generation of CEOs is taking risks, is ready to challenge the complacent business-as-usual mentality of its executive teams by looking outside, is keen to create a positive legacy, and is not afraid to try and make 1+1=3 or 4.

7. Foreign home-helpers for Japanese families.

Japan will deregulate visas to allow working families to sponsor home-helpers and domestic caregivers. The combined problems of a growing labor shortage, a falling birthrate, and more women aspiring to a professional career cannot be solved without outside help for the family.

A very positive surprise would be if Japan followed the Hong Kong and Singapore models. There, professional couples can sponsor home-helpers with proper supervision and governance by local authorities. This is a pragmatic solution to help reverse the fallout of the declining birthrate and reduce runaway costs of public support for the care of children and the elderly.

8. Trump’s tariff threat works, opening China and avoiding a cold war.

The world worries about the potential negative effects of US President-elect Donald Trump’s trade war rhetoric in general and his tariff threats against China in particular. But what if the threat works and delivers a constructive reengagement between the United States and China, bringing about the de facto end of the prospect of a new cold war between these two superpowers?

It’s a long shot scenario, I know, but were it to happen, Japan probably would be a loser. Global investors would reinvest in Chinese risk assets, foreign direct investment into China would accelerate, and, most importantly, China’s globalization would be turbocharged. Its automobile and machinery companies could be allowed to build factories and create jobs in the United States, competing head-to-head with Japan.

Sure, it seems unlikely—internal US politics is easier to manage when there is an external enemy—but if Trump can make a big deal with China, the Japan premium will be at risk.

9. China is forced to start a currency war.

Another worry for Japan in 2025 also comes from China. If reengagement with the United States fails, China could face rising unemployment and deflation, resulting in more idle capacity and surging bad debt.

Already, China has been trying to stimulate growth since last summer by easing monetary and fiscal policy. If the economy does not respond and does not begin to accelerate by late spring, currency devaluation may become the last option. China being forced to start a currency war by the compounding forces of domestic deflation and US protectionism would force a dramatic disruption for not just Japan’s cyclical competitiveness, but its future prosperity.

10. Japan’s Sakura 15 women’s rugby team wins the World Cup.

On September 27, the final of the Women’s Rugby World Cup 2025 will be played at London’s Twickenham Stadium. Japan’s Sakura 15 is currently ranked 11th in the world. I’m told that reaching the quarterfinals is possible, and making the finals would be truly sensational. Japan beating the English on their home turf would be good fun, wouldn’t it? Go Sakura 15!

Building Momentum

A year of renewal has laid the foundation for a stronger chamber

The past year has been one of reset for the American Chamber of Commerce in Japan (ACCJ). As 2024 draws to an end, I look back on the remarkable achievements of the chamber as we pursued our vision of fostering partnerships, embracing progress, and bridging to the future with excellence.

This vision has guided our efforts and strengthened our community, while setting the foundation for an even more dynamic 2025.

I’m especially grateful to the Board of Governors and all the ACCJ leaders who have gone above and beyond to contribute their expertise and profound experience to the pursuit of this vision.

At our Ordinary General Meeting on October 22, I was delighted to deliver the State of the Chamber address, and would like to share some highlights.

Government Engagement

Our advocacy initiatives have thrived this year, fueled by the strength of the US–Japan relationship, which is stronger than ever. This was evident in then-Prime Minister Fumio Kishida’s state visit to Washington in April, our DC Doorknock in June—the largest ACCJ delegation to visit the Capitol since the pandemic—and last December’s Diet Doorknock. Our many meetings with US and Japanese officials underscored the ACCJ’s role as a trusted resource for policymakers.

We launched important advocacy initiatives around artificial intelligence (AI) and financial services this year. The Task Force on AI Regulation was established, and the Financial Services Forum issued a white paper on transforming Japan into a global asset and wealth management leader.

We also launched new events focused on young professionals, including speed mentoring and speed networking. These gatherings foster connections and empower the next generation of leaders who will drive innovation and growth in the coming  years.

One of the most rewarding aspects of my first term as president has been meeting so many of our incredible members and leaders across the Tokyo, Kansai, and Chubu Chapters. Connecting with members on a deeper level and getting to know each of you—as well as our key partners—has been a highlight of the year.

Signature Events

The chamber staged three blockbuster events in 2024, bringing together and celebrating the global business community. These were:

• A Night of Stars and Stripes: Fourth of July and ACCJ 75th Anniversary celebration
• The Person of the Year dinner honoring US Ambassador to Japan Rahm Emanuel
• The Bridging to the Future: Networking for Tomorrow year-end reception

Events aimed at supporting the community have also been very successful. The 33rd Annual Chubu Walkathon raised ¥6.5 million for 14 local charities, while the Kansai Chapter hosted its Healthy Urban Gardening initiative to support Food Bank Kansai.

I sincerely thank everyone for their commitment to the chamber and efforts to drive these initiatives forward.

Looking Ahead

While 2024 was a year of reset, I see 2025 as one of transformation. The ACCJ plays a pivotal role in shaping economic and business policy, and it will remain a dynamic platform for collaboration and advocacy across industries.

Thanks to the energy and commitment of our leaders and members, the chamber is moving in a great direction. I am honored to serve again as your president in 2025, and look forward to an exciting future filled with innovation, collaboration, and continued excellence. 

Wishing you all a happy holiday season.

Emerging Talent

Connect and gain insights through the Young Professionals Forum

Too often, institutions such as the American Chamber of Commerce in Japan (ACCJ) can seem inaccessible to young professionals. Finding a place in a community of seasoned executives can seem daunting. To make it easier, the chamber offers a platform tailored specifically for working professionals aged 35 and under.

The Young Professionals Forum (YPF) seeks to empower its members by engaging them in all aspects of ACCJ activities, including networking, information sharing, and advocacy. Through peer-led programs, mentorship, and training, the YPF nurtures future ACCJ leaders and helps them grow professionally and personally while expanding their networks.

Spotlighting Young Talent

As we head into 2025, we are pleased to pen the first in a series of columns that will delve into themes relevant to the ACCJ and offer fresh perspectives and insights from the younger generations. We will also feature interviews with up-and-coming talent making significant contributions to the ACCJ and the YPF in a “Young Professionals to Watch” series. The interviews will spotlight journeys, achievements, and aspirations, providing a platform for young professionals to have their voices heard by the wider ACCJ community.

In selecting those to be featured, the YPF is committed to maintaining an unbiased approach and a high standard of excellence. We aim to promote diversity in nationality, gender, and field to ensure fair representation. By highlighting a diverse range of young professionals, we hope to inspire and motivate others within the community.

Making Connections

In Japan, where doing business is deeply rooted in relationships and trust, fostering professional networks is crucial. For young professionals, the world of networking can seem opaque and hard to access. Many fear they cannot get their foot in the door. “How can I talk to someone so senior? I have nothing to offer,” is a common thought.

We are promoting events directly targeting young professionals to help them meet like-minded peers and speak directly with individuals they may normally not have access to.

The YPF has already hosted several successful events that have greatly benefited its members. These include:

• Speed Networking, where young professionals from various chambers of commerce in Japan meet and engage in rapid-fire networking sessions
• Mentorship events and panel discussions, where senior executives share their experiences and insights with younger members
• The Mentorship Series, which invites seasoned executives to a roundtable discussion with young professionals

These events have been instrumental in fostering a sense of community and providing valuable learning opportunities.

Recognition

This year also saw YPF Co-chair Tomoki Fukasawa named as one of the ACCJ’s Leaders of the Year. Fukasawa said: “I am extremely proud of what we have been able to achieve with the YPF and look forward to continuing our mission of making the ACCJ more attractive to younger professionals. I hope we can bring in more passionate young professionals and I look forward to seeing everybody at our events in 2025!”

Feedback and Support

As we promote young professionals within the ACCJ, we welcome feedback and support from the wider community through the ACCJ website or in person. We ask members reading this to promote and encourage younger talent in their companies to participate in YPF events and initiatives. Your insights and encouragement are invaluable as we strive to create a vibrant and inclusive platform for young professionals. Together, we can foster a culture of continuous learning, collaboration, and growth that benefits all ACCJ members.

United to Inspire Inclusion

The ACCJ Kansai Chapter marks a decade of driving business through diversity

The American Chamber of Commerce in Japan (ACCJ) Kansai Chapter celebrated a milestone in its advocacy efforts on November 21 at the 10th anniversary Diversity and Inclusion (D&I) Summit, which took place at Oriental Hotel Kobe.

Host Mie Kitano, co-chair of the Kansai Diversity and Inclusion Committee, welcomed the 130 in-person and 30 virtual guests. She shared how, over the past decade, many positive changes have been achieved, but stressed that there still a long way to go on the journey to true D&I.

“This year’s theme, United to Inspire Inclusion, emphasizes the importance of unity and collaboration in driving meaningful change,” she said. Highlighting the critical role of inclusion in creating an prosperous future for all, she encouraged all participants to actively engage in conversations aimed at realizing equality.

Jason R. Cubas from the US Consulate General Osaka-Kobe then delivered opening remarks.

“I’m pleased to join you for the 10th anniversary of this D&I summit under this year’s theme, United to Inspire Inclusion,” said the consul general. “This theme speaks to something essential. D&I must be woven into the fabric of our organizations and industries as core components of the larger strategies and operations.”

Noting that one of the four key pillars in the US national travel and tourism strategy is to ensure that tourism experiences are diverse, inclusive, and accessible, Cubas cited D&I as a guiding principle that can elevate entire industries by shaping how we engage the world.

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“An inclusive approach allows us to understand our colleagues, clients, and communities more deeply, and to unlock new markets and innovate in ways that would otherwise remain out of reach.”

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“In Kansai, we saw an inspiring example of this principle in action [in October], when Osaka hosted the International LGBTQ+ Travel Association for their global conference,” he shared. “It was the first time this was held in Asia, and it wasn’t just a milestone for tourism; it was a testament to how an industry’s inclusive practices can drive growth, innovation, and new opportunities.

“Across all sectors, organizations have the opportunity to integrate D&I into their strategic vision. Whether it’s the tourism industry committing to new ways to welcome people of all backgrounds or technology companies designing products accessible to everyone, D&I can and should be foundational to every facet of how we operate,” he continued. “An inclusive approach allows us to understand our colleagues, clients, and communities more deeply, and to unlock new markets and innovate in ways that would otherwise remain out of reach.”

Panel Discussion

Following Cubas’s remarks, Eli Lilly Japan K.K. President and Representative Director Simone Thomsen moderated a panel with three leaders from different industries:

• Irina Menshikova, president of Amway Japan G.K.
• Mari Nogami, president and representative director of Haleon Japan K.K.
• Victor Osumi, managing director and president-Japan of Delta Air Lines, Inc.

Thomsen, who is also the ACCJ Kansai governor, kicked off the discussion by asking each panelist to recount one success story from their company that has inspired inclusion and driven business.

Nogami, who was the first chair of the Kansai Women in Business Committee—now known as the Diversity & Inclusion Committee—shared how Haleon approaches diversity as a new company. The consumer health brand was spun off from GSK in 2022.

“As an independent company newly listed on the New York and London exchanges, having gender diversity is almost mandatory,” she explained. “The company already had made an external commitment that at least 50 percent of the board, executive leadership team, and the business unit leadership would be female. The board is already 40 percent female and the executive team is 47 percent female. That is a serious commitment. We do it not only for welfare; we do it because it really drives business.”

Next, Menshikova talked about Amway’s Women’s Inclusion Network, which champions flexible workstyles and drives the progression of female leadership. She was leading Amway’s operations in Ukraine, Russia, and Central Asia before arriving in Japan in 2022.

“This is a country with a lot of challenges in diversity and inclusion, so it’s my personal passion to drive this agenda,” she said. “Amway, as a leading company in the direct sales industry and one of the biggest private American companies which has always been focused on multicultural, multi-generational and disability [issues] gives me the opportunity to execute that agenda.”

Currently, Amway in Japan has employees from 16 countries, while 62 percent of its workforce here is female. Cultural matters, however, may prevent women from advancing their careers Menshikova noted. “So the flexible lifestyles help them to balance their personal responsibilities with their job responsibilities.

Lastly, Osumi, who is also ACCJ president, explained the importance of sourcing from partners who support diversity and described how Delta’s approach extends D&I to customers and the community.

“We collected hundreds of images that anyone can download free of charge to show how to accommodate a person with a disability,” he said. “We have more than 200,000 wheelchairs now in place and have an offering tailored especially to customers who use wheelchairs.”

The Atlanta-based company is also supporting entrepreneurship, creating almost $559 million of revenue for Black-owned businesses as well as women in business.

Challenges and Solutions

As the discussion continued, Eli Lilly’s Thomsen pointed out that D&I is a complex, ongoing journey and asked the panelists about the challenges they face and the solutions they are finding.

An example given by Osumi is how cultural differences impact perceptions of D&I among Japanese employees, and how life events such as pregnancy can lead to unintentional exclusion. The lack of women involved in discussions at the government level about D&I reform make finding solutions more challenging, he noted.

Menshikova cited hurdles for team integration created by the Covid-19 pandemic. With many employees joining remotely and lacking in-person interaction, she said, challenges in managing cultural and generational differences have arisen and linger. Adjusting communication styles to suit a diverse workforce is essential, she added.

Looking at multinational work environments, Nogami sees expectations for how female leaders should behave as an obstacle. Because Asian women may have grown up in cultures where they were told not be assertive, they may struggle to overcome this when making a point at work. She advocates for companies to have not only a mentor but career sponsors who are very serious about promoting these talents who may not be showing their real potential due to cultural expectations.

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“While D&I is an important part of an organization’s overall strategy, it takes individuals at all levels to play an active role in building an inclusive culture.”

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Targeted Learning

After the panel drilled down into more detailed aspects of D&I, participants split up into three breakout groups:

• Beyond the Quota for PWD
• Managing Uncomfortable Conversations
• Breaking Boundaries: Closing the Gender Gap and Retaining Talent for Salesforce Diversity

In Beyond the Quota for PWD, Kenji Hirano (president and representative director of Adecco Japan and director of LIXIL Advanced Showroom Corporation) joined Asahi Group Holdings’ Senior Manager of Global Diversity, Equity, and Inclusion Mizuki Hsu to promote the inclusion and empowerment of persons with disabilities (PWD). The workshop, facilitated by Kitano, highlighted the importance of creating inclusive environments that go beyond mere compliance with quotas to foster genuine opportunities for PWDs and to uncover biases.

Managing Uncomfortable Conversations featured Lumina Learning Global Partner for Japan Elizabeth Handover guiding participants through the key skills and techniques for professional, objective communication. The session covered techniques for crafting the conversation and highlighted factors that can lead to success or failure. Handover provided highly practical advice that could immediately be applied in the workplace. The session was facilitated by committee Vice-Chair Naomi Iwasaki.

Breaking Boundaries: Closing the Gender Gap and Retaining Talent for Salesforce Diversity explored gender diversity in Japan’s sales sector. Shimako Takayama (commercial diversity, equity, and inclusion leader at Eli Lilly Japan), alongside facilitator Alison Chen (vice-chair of the ACCJ-Kansai Diversity and Inclusion Committee), discussed the trends, barriers, and strategies to foster greater inclusion and empowerment to help retain talent.

Connections

The summit concluded with a networking session, and at the end of the day, participants no doubt felt the embodiment of what Consul General Cubas said in closing his opening remarks: “While D&I is an important part of an organization’s overall strategy, it takes individuals at all levels to play an active role in building an inclusive culture. Thank you all for your commitment to this work. I hope today’s discussions inspire everyone to keep moving forward, weaving D&I into every part of what you do.”

Transforming Treatment

ACCJ Healthcare x Digital Pitch Day again shines the spotlight on innovation

Osaka’s Nakanoshima Qross, a new international hub for healthcare innovation, welcomed the American Chamber of Commerce in Japan (ACCJ) on November 1 as host of the annual Healthcare x Digital (HxD) Pitch Day.

Led by the ACCJ Kansai Chapter and the Healthcare Committee, the HxD platform brings together innovators from multidisciplinary backgrounds to collaborate and develop ideas alongside some of the world’s leading healthcare and pharmaceutical companies.

Simone Thomsen, president and representative director of Eli Lilly Japan K.K. and an ACCJ governor, kicked off the event by addressing healthcare challenges amplified by Japan’s aging population and rising costs.

Digitalization, she noted, is key to overcoming barriers in healthcare. She emphasized the Kansai region’s burgeoning ecosystem of start-ups and the importance of fostering partnerships for sustainable solutions—something at the heart of this year’s theme, Transforming Healthcare: Collaborating in a Changing World.

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“Led by the ACCJ Kansai Chapter and the Healthcare Committee, the HxD platform brings together innovators from multidisciplinary backgrounds to collaborate and develop ideas alongside some of the world’s leading healthcare and pharmaceutical companies.”

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Following Thomsen’s remarks, Dr. Yoshiki Sawa, chairman of the Organization for Advanced Healthcare Innovation at Nakanoshima Qross, delivered the keynote address.

A renowned cardiac surgeon and innovator, Sawa shared insights into cutting-edge research at Nakanoshima Qross, including the development of iPS cell-derived cardiac patches for regenerative medicine. He highlighted the unique collaboration opportunities provided by the center, where research, development, and medical applications coexist under one roof.

A roundtable discussion followed with panelists Kunihiro Ohyama of Microsoft Japan, Dr. Junji Fukumori of Osaka Keisatsu Hospital, Taro Tanaka from Osaka Prefecture, and Koji Deguchi from Kobe City. Topics included the role of public–private partnerships in fostering innovation, the importance of global collaboration, and strategies for addressing healthcare inequities.

Tanaka, the director of Osaka’s Smart City Strategy Division, shared how the city is leveraging digital health initiatives, while Ohyama, Microsoft Japan’s healthcare industry lead, discussed the transformative potential of artificial intelligence (AI) and the Internet of Things in healthcare, among other themes that were raised.

Game Changers

The heart of HxD Pitch Day was the competition in which five innovative start-ups presented their solutions to transform healthcare. Competing this year were:

• Bipsee Inc.
• Elcyo Co., Ltd.
• ImmuniT Research, Inc.
• Pittan Inc.
• Seven Point One Inc.

Judging were industry experts, including EY Strategy & Consulting’s Christian Boettcher, Eli Lilly Japan’s Yasuhiko Iida and Miyu Harada, Innovation Dojo Japan’s Joshua Flannery, and AstraZeneca’s Torsten Kanisch and Mari Ogihara, who is also the community manager for the i2.JP open innovation initiative. Their expertise provided valuable feedback to the start-ups. Bipsee, Pittan, and Seven Point One received honors.

Bipsee, winner of the HxD Award, impressed judges with its mental health therapy based on virtual reality (VR). Chief Operating Officer Kohei Kamikihara explained how VR could alleviate the burden of cognitive behavioral therapy on clinicians and patients by offering an immersive, self-guided alternative. The company’s eight-week program helps patients intuitively learn coping mechanisms for depression, thereby reducing relapse rates, Kamikihara said.

Elcyo Co., Ltd. presented its groundbreaking Elcyo Lens, an autofocus glasses system integrating liquid crystal lens technology and AI. The glasses dynamically adjust prescriptions in real-time, reducing eye strain caused by digital devices. Chief Executive Officer Sunri Lee noted that the glasses are not just tools for vision correction but guardians of eye health. Set to launch in 2025, the product aims to transform vision care.

ImmuniT Research, Inc. unveiled its advanced immune system quantification technology, focusing on its Th7R cell marker, which aids in cancer immunotherapy. By providing precise data for personalized treatment, ImmuniT is redefining how clinicians approach immune-related diseases. The company has a vision to revolutionize cancer treatment and realize a society of longevity, said Chief Scientific Officer Akio Ametani.

Recipient of the Microsoft Award, Seven Point One Inc. pitched AlzWIN, their AI-powered dementia screening solution that utilizes verbal fluency. The solution looks to empower individuals through early dementia diagnosis and management.

SelectUSA

The SelectUSA Award went to Pittan Inc., which showcased Nutrifull, a system that analyzes sweat composition to visualize health and nutritional status. Designed to enable more people to accurately monitor their health status on a regular basis, Nutrifull aims to extend life expectancy by preventing lifestyle-related diseases.

HxD’s connection to the SelectUSA Investment Summit, a US government program designed to attract and support international business investments in the United States, is a standout aspect of the competition. The tie-up is supported by the Commercial Service office in Japan and began last spring, when US Ambassador to Japan Rahm Emanuel attended Pitch Day on April 17 and saw Anaut Inc. punch its ticket to June’s SelectUSA Summit in National Harbor, Maryland. The company won for its clinical AI software that enables precision mapping of the human body during surgery.

With its win this year, Pittan Inc. secured the opportunity to win a trip to Maryland for the next summit, to be held from May 11 to 14, where it will gain exposure to US investors and partners. The SelectUSA collaboration underscores the ACCJ’s commitment to fostering global opportunities for Japanese start-ups.

Building Bridges

Kanisch from AstraZeneca remarked on the ingenuity of the start-ups, highlighting the potential for Japan to lead in digital health innovation. He also shared his excitement at seeing ambitious ideas taking shape through HxD.

Following the awards ceremony, the event closed with a networking session, offering participants the chance to forge partnerships that could shape the future of healthcare in Japan—and globally.

HxD Pitch Day demonstrated the power of collaboration in addressing healthcare challenges. By bringing together diverse stakeholders, the event not only showcased Japan’s potential as a global healthcare innovation hub but also fostered connections with international markets.

As Thomsen from Eli Lilly Japan concluded in her opening remarks: “This world is changing. We have a true VUCA [volatility, uncertainty, complexity, and ambiguity] world where there is a lot of instability.”

And while noting societal challenges such as the increase in aging populations, which is impacting healthcare systems, especially in Japan, she also highlighted the opportunities.

“Digitalization and technology will help us to accelerate [innovative solutions] further,” she said. “This is why, today, we wanted to come together, and what better venue could we think of than the new Nakanoshima Qross, which really is an international hub for healthcare innovation.”

AI 1988

Look back at how members viewed the potential of AI in 1988 in this reprint from the ACCJ Journal archives

Artificial intelligence (AI) is becoming more and more widely used in Japan. Companies in this country are coming to realize that if they want to stay internationally competitive, they have to incorporate this technology. Davis is a popular contributor to these pages who specializes in high-technology subjects.

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Japan’s large electronics companies are constantly looking for ways to boost the efficiency of their administrative work while searching for new markets so as to diversify their business. AI, a type of sophisticated computer programming that promises to revolutionize many job-related tasks, is catching on among electronics companies and software businesses here, and is also a target of interest among trading houses. All of these enterprises want to establish a foothold in this up-and-coming technical sector so as to enhance their long-term prospects. AI systems in the years to come may make or break certain companies in highly competitive areas of business. It would not be an exaggeration to say that a “mini boom” is being seen today in Japan’s AI sector.

AI systems under development here are intended to address bottlenecks within corporate product-development departments, and they are being marketed to outside customers, sometimes together with special types of data processing equipment. One of the best ways to sell more computer hardware is to market such equipment with an emphasis on higher value-added features, such as the ability to effectively handle AI writing tasks. However, Japanese companies in this field are all well aware that they have to contend with the likes of Symbolics Inc., a Cambridge, Massachusetts, global leader in AI workstations.

Two years ago (in 1986) the Artificial Intelligence Association of Japan was established in Tokyo by electronics companies, telecommunications businesses, software houses, and others interested in new developments in computer programming. The association cultivates exchanges between researchers in various AI-related fields and disseminates technical information to its members. Moreover, the association promotes specialized training of so-called knowledge engineers and other experts needed for the advancement of the new discipline. Establishment of the special association signifies the maturation of the initial commercial phase of AI here.

In contrast to Japan’s AI infrastructure, state-of-the-art American AI work is typically dominated by clusters of small businesses mainly located around major universities. In fact, many Japanese AI specialists have studied at leading US universities. As a result of the difference in the two paradigms, the large electronics enterprises of Japan have tremendous potential resources to devote to AI studies, whereas in the US, venture capital must typically be raised to fund much of the innovative work in AI.

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“The global market for AI systems is likely to grow to as large as much as $10 billion per year sometime between 1995 and 2000, according to Japanese electronics industry estimates.”

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The Japanese approach to the AI business often relies as much on proximity to leading US universities as it does on relationships with the top Japanese universities. In other words, Japanese universities are not major actors within the immediate sphere of AI business here. The paradigms are not without exception, however, because some smaller businesses in Japan, such as CSK Corp., are doing work in the field as well.

As AI is widely considered a promising growth market within the information processing sector, electronics companies are offering products that will allow users to develop their own AI systems, such as so-called expert systems. This customized programming is developed on the basis of experts’ knowledge; hence expert systems comprise handy tools for novices—so that they may easily draw upon the comprehensive knowledge of specialists to assist them in complicated tasks, such as writing specific types of software programs.

The global market for AI systems is likely to grow to as large as much as $10 billion per year sometime between 1995 and 2000, according to Japanese electronics industry estimates. The leading AI language today is LISP (LISt processor), and it is widely expected to retain its front-running position. Four of the largest AI applications expected in the mid-to-late 1990s are those for integrated circuit design assistance, manufacture planning, financial planning, as well as computer systems diagnosis and maintenance.

An example of a medical application of AI systems is the so-called RINGS program—rheumatology information counseling system—developed recently by Nippon Telegraph and Telephone Corp. and a medical college in Tokyo. The system is used by those suffering from rheumatism to help them in diagnosing minor problems over the telephone. When more serious problems arise, doctors are to be consulted. A variety of other medical-related AI systems are now under development, in part because the medical sector is likely to see rapid growth due to the aging of Japan’s population.

In the area of nuclear power plant operations, a group of Japanese enterprises is developing an expert system to enhance the safety of pressurized water reactors (PWRs). The LISP-based expert system is intended for use in new types of PWRs to be operated by Kansai Electric Power Co., Inc. and three other electric utilities.

Greater safety in operating nuclear plants can lead to enhanced profits for the utility companies, as they will not need to shut down reactors for prolonged periods in order to do repairs, precautionary tests or other types of maintenance.

The most prominent of Japan’s AI-related development programs is the so-called fifth-generation computer project, which is administered by the Institute for New Generation Computer Technology (ICOT). The institute was established in 1981 under funding from the Ministry of International Trade and Industry’s (MITI’s) Machinery and Information Industries Bureau.

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“Although today’s AI systems can only cope with surface level knowledge, those of the year 2000 are likely to be capable of dealing with more abstract forms of knowledge. ”

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Altogether, there are nine private companies participating in the project. Researchers based at MITI’s Electrotechnical Laboratory (ETL) in Tsukuba, Ibaraki Prefecture, are also involved. Moreover, the ETL, which is administered by MITI’s Agency of Industrial Science and Technology, is doing its own independent work in the field. Six to eight researchers from each of the electronics companies work at the ICOT center in Tokyo, and then only for periods generally ranging from two to four years.

When the project began in 1982, it was the subject of considerable attention throughout the world, due to its bold proposals and the perceived threat that it posed to the American and European computer software industries. However, recently it has not attracted much interest because Americans and Europeans have been less than impressed by the meager results of the project. US interest in the ICOT project led to the establishment of Microelectronics and Computer Technology Corp., a research consortium headquartered in Austin, Texas.

AI systems have a long way to go before they reach a phase of maturity. Although today’s AI systems can only cope with surface level knowledge, those of the year 2000 are likely to be capable of dealing with more abstract forms of knowledge. Advances in the memory capacity of computer microchips, parallel processing capabilities of computers, data processing speeds, and knowledge bases will accelerate the progress of the AI business sector.

Let us hope that people will always be able to keep the upper hand of control on such advanced tools as AI systems, and that the sophisticated tools won’t ever “discard” the humans they are supposed to be helping.

Investor Nation

The ACCJ Financial Services Forum advocates for stronger market policies in its latest white paper

The American Chamber of Commerce (ACCJ) is fully on board with the Japanese government’s stated ambition of transforming the nation into a global leader in asset and wealth management, with the chamber’s Financial Services Forum (FSF) broadly supportive of a series of policy initiatives announced by Tokyo since April 2023. But they point out that more can be achieved to better meet consumers’ needs and that vigilance is required to ensure the promised changes do not stall.

The FSF comprises the leadership of the chamber’s five financial services committees and is designed to ensure that the ACCJ’s position on financial services issues is approved by the board and addressed in a consistent manner.

After a close examination of the government’s proposals, the FSF issued a white paper in July entitled Transforming Japan into a Global Asset and Wealth Management Leader. Stating that “the commitment that the national government is making to the transformation of the investment industry is critical for success, as most of the essential resourcing and policies can be achieved only with central government leadership, action, and education,” the paper details a three-pronged strategy:

• Accelerating corporate governance reform.
• Reforming the asset management sector and asset ownership.
• Doubling asset-based income among individual investors.

The FSF white paper outlines its recommendations within the context of the Government of Japan’s Policy Plan for Promoting Japan as a Leading Asset Management Center, released in December 2023. This framework serves as the foundation for the government’s efforts to transform Japan into a global asset management leader and financial hub.

Corporate Governance Reform

The first issue highlighted by the FSF is to accelerate progress on corporate governance reforms in parallel with reforms to the asset management industry. The goal is to make Japan a global standard bearer by sharply increasing participation among individual investors and expanding access to asset-based income.

There is clear common ground with many of the plans of the Japanese government, some of which is outlined in a June 2024 statement entitled “Principles into Practice,” issued by the Council of Experts Concerning the Follow-up of Japan’s Stewardship Code and Japan’s Corporate Governance Code. This council operates under the joint secretariat of the Financial Services Agency (FSA) and the Tokyo Stock Exchange (TSE).

The Japanese proposals emphasize greater corporate governance enforcement, training for independent directors, and stewardship activities, while the TSE has revised its listing rules to mandate English disclosures of financial statements and timely information effective April 1, 2025.

The FSF white paper makes clear, however, that many issues—including ensuring substantive reforms take root and enforcing deadlines for strategic shareholdings—remain incomplete or are still works in progress. Similarly, disclosure practices have improved, it points out, but there are concerns that some companies are still “going through the motions” instead of devoting the required effort to the procedures. Equally, there has been progress on efforts to unwind cross-shareholdings, although the paper emphasizes that greater reviews are still necessary.

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“Stating that ‘the commitment that the national government is making to the transformation of the investment industry is critical for success, as most of the essential resourcing and policies can be achieved only with central government leadership, action, and education,’ the paper details a three-pronged strategy.”

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“Board independence and diversity, progress on English-language disclosure, and electronic voting rights are cited as key improvements,” the white paper states. Transforming corporate governance “from a box-ticking exercise to a core business element” has received the strong support of Hiromi Yamaji, president of the Japan Exchange Group. This is seen as very important, but the white paper points out that “greater and quicker progress is needed to avoid complacency setting in among management, which could cause reform to stagnate.”

To ensure that does not happen, the FSF is calling on the FSA and the TSE to collaborate on a plan for stronger enforcement of the Corporate Governance Code and that the present recommendation that independent directors account for a minimum of one-third of Prime Market boards be increased to an outright majority. They would also like to see a new initiative to increase both the number and quality of training programs, with a focus on diverse director candidates.

Other proposals include making the recently extended tax incentives for spin-off companies permanent to enhance predictability when it comes to tax planning, promote the creation of innovative spin-offs, and optimize business portfolio strategy and planning. Yet another proposal in the white paper is for the TSE to work with listed companies to spread annual general meetings across the calendar and to permit virtual attendance by offshore investors.

Asset Management

Turning to asset management, 2023 legislation imposes a legal obligation on all parties in the investment chain to act in the best interest of customers. As the government implements its plan to translate this obli­gation into rules and regulations and/or codes of conduct for each set of players and actively enforce them, the FSF recommends that the FSA continue to take steps to strengthen measures that ensure the independence of asset management firms and improve the capabilities of management. It is also recommended that the FSA aggres­sively shift to a domestic retail brokerage revenue model from one dominated by transaction fees so that advisory fees become more important.

Other proposals include the introduction of a “comply-or-explain” approach to new standards, as well as formalizing a continuous process of monitoring implementation, with the outcomes published regularly and transparently.

Organizations beyond the ACCJ have also welcomed efforts by Japan to implement reforms in the asset management sector. The Washington DC-based Investment Company Institute (ICI) said in a July 1 statement:

“The Japanese government’s policy plan for the coming year consists of extremely important reforms, such as changes to Japan’s individual defined contribution retirement program, including increasing contribution limits and providing more opportunities for older workers to save,” said ICI President and Chief Executive Officer Eric J. Pan. “These reforms can help households adapt to changing macroeconomic conditions by making greater use of the diversified investments offered by asset managers to build household wealth, prepare for retirement and meet other important financial objectives.”

NISA and Asset-based Income

Pan also applauded the expansion of the Nippon Individual Savings Account (NISA) program through the simplification of operational procedures and promoting more people to take advantage of the scheme.

The changes to NISA were outlined by then-Prime Minister Fumio Kishida in a speech to the Economic Club of New York in September 2022 as a way of attracting more overseas companies into Japan and improving the offerings of the asset management industry. In a similar speech in September 2023, Kishida announced plans to establish special business zones for asset management firms where administrative procedures can be completed entirely in English. The administation of Prime Minister Shigeru Ishiba has committed to continuing this important initiative.

This initiative ties in neatly with the third focus of the FSF’s white paper, individual investors and asset-based income, with the report pointing out that in comparison with the US and European markets, “Japan’s individual investment and retirement market has enormous growth potential and opportunities to better serve the needs of investors, which is particularly important in view of Japan’s demographic and fiscal challenges.”

The FSF recommends further expansion of NISA limits as well as the range of investments that would qualify. The fact that flows into NISA accounts have increased dramatically in response to the previous increase of annual investment limits to ¥3.6 million underlines just how popular this form of investment is becoming.

Stronger Market

Placing priority on developing and resourcing programs that nurture an ecosystem of independent financial advisers—and where individual investors can receive advice free of influence from the companies that are offering products—is another evolution called for in the white paper. This would strengthen the quality of financial advisers and enhance client–adviser relationships.

The FSF’s proposals may be ambitious and far-reaching, but the forum is confident that, if adopted, they can deliver benefits to both consumers and providers in the Japanese market, as well as transforming Japan into a global asset and wealth management leader.

Alliance Maker

ACCJ Person of the Year Rahm Emanuel reflects on three years as the US ambassador to Japan

After being tapped by US President Joe Biden to serve as the nation’s ambassador to Japan, Rahm Emanuel arrived in Tokyo in January 2022 at a pivotal moment for the world. The Covid-19 pandemic was raging, Japan’s border closures were wreaking havoc on the business community, and the ripple effects were exposing vulnerabilities across the region.

Strengthening the bilateral relationship was essential. During his time as chief of mission, Emanuel has tirelessly worked to build bonds that foster a prosperous future not only for the United States and Japan, but for the entire Indo–Pacific.

In recognition of his strong support, the American Chamber of Commerce in Japan named Emanuel its 2024 Person of the Year and honored him with a special event on October 23 at Tokyo American Club.

As he prepares to hand over the reins to a new envoy, the 31st US ambassador to Japan talks to The ACCJ Journal about the experience, the importance of the alliance, and the future.

How can the business community strengthen the US–Japan alliance?

The US–Japan alliance is far from limited to our far-reaching security cooperation and the alliance’s place at the heart of a new latticework of security partnerships across the Indo–Pacific. That, of course, is fundamental to our relationship and to our collective deterrence in the region, but the United States and Japan have made strides on every front over the past three years.

As the largest foreign direct investor in each other’s economies, our two nations are persistently pursuing opportunities to forge closer links in business and research. In the fast-evolving environment of emerging technologies, our tech firms and academic institutions have the opportunity to lead the way in the research and development of artificial intelligence (AI), quantum computing, semiconductors, and other cutting-edge scientific fields.

But just as important as technological advances are our measures to protect them. This means tightening our export controls to ensure that technologies such as advanced AI chips don’t end up in the hands of adversaries with malign intentions. Ultimately, this is about securing our intellectual property, our economies, and the jobs of tomorrow.

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“As the largest foreign direct investor in each other’s economies, our two nations are persistently pursuing opportunities to forge closer links in business and research.”

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Of course, we need to ensure we have the relevant education programs in place to train the workers who will be shaping these 21st-century technologies. The United States and Japan have made real progress in this area through partnerships between tech companies and universities. We now need to keep up the momentum by continuing to expand and enhance these talent pipelines.

Investment is the fuel of great business ideas and ambitious thinking. Since the United States has a flourishing venture capital ecosystem, there are boundless opportunities for cooperation in this area between US and Japanese companies. Japan has long been a source of innovation and invention. It’s just a matter of finding the funding to ensure those ideas can take flight.

One area with huge potential is Japan’s biotechnology sector. An increasing number of start-ups are drawing interest from investors here. With greater collaboration and support from US biotech enterprises, and investors with expertise in the sector, Japan can become a leading biotech hub, not just in Asia but globally.

How do talent hurdles and gaps in DEI and marriage equality impact the alliance’s economic strength?

Japan faces the dual challenges of a rapidly aging society and a declining birthrate, which means that the country doesn’t have a person or a talent to lose when it comes to winning the 21st century.

Every country, including the United States and Japan, has a long way to go in fully implementing the principles of diversity, equity, inclusion, and accessibility. But if we are to build well-functioning societies and thriving economies, we need to leverage all our assets. It’s about properly and fairly employing the people we have and embracing an ethos of lifelong learning, upskilling, and retraining.

How can we best collaborate on AI?

Looking at the speed at which AI is being developed and adopted, there is no time to lose in ensuring the United States, Japan, and our allies remain at the forefront of this technology. It is imperative that we set the pace in its continuing evolution and in establishing a fully functioning, well-regulated ecosystem that is aligned with our laws and interests. The sector is already seeing a lot of research and development cooperation and cross-border investment between the United States and Japan. Having talked to many major players in the field, I am confident that this trend will only grow.

During former Prime Minister [Fumio] Kishida’s state visit to Washington in April, we saw the launch of an initiative between US and Japanese universities and private sector partners in both countries to boost AI-focused research and workforce development.

The partnerships between Carnegie Mellon and Keio Universities, and between the Universities of Washington and Tsukuba, are supported by $110 million in investment from Microsoft and other US concerns as well as a consortium of nine Japanese companies.

Similar partnerships between Japanese and US universities and leading tech companies were launched in the fields of semiconductors and quantum computing last year. Both programs are about making groundbreaking advances that will have global benefits while educating the workforce of tomorrow.

Empowering our best and brightest in these critical fields will pay dividends both for our two nations and the world.

How can cooperation on climate change and clean energy be strengthened?

Two of the greatest challenges facing us all are climate change and energy security. Just as in so many other sectors, the United States and Japan are well placed to combine their respective scientific expertise in the development of new and cleaner energy technologies.

Earlier this year, Japan became the first international collaborator in America’s Floating Offshore Wind Shot initiative, which aims to reduce costs associated with the energy source. Having committed ¥120 billion to the development of wind technology and launching the Floating Offshore Wind Technology Research Association (FLOWRA) this year, Japan clearly recognizes the enormous potential of offshore wind.

Our two countries are also partnering on advanced small nuclear reactor technology, for which demand is only set to increase as we build more data centers to power generative AI. Meanwhile, Japan’s largely untapped geothermal energy resources hold tremendous opportunities for further collaboration between Japanese and US energy corporations.

These areas of private sector cooperation and investment not only reinforce our energy security but also offer us opportunities for growth in other markets, as we join forces to help developing countries devise their own clean energy solutions and infrastructures.

How important has the US–Japan Year of Tourism been following the border closures?

While the news in Japan is dominated by the record-breaking numbers of inbound tourists, the number of Japanese tourists visiting the United States continues to rise following the pandemic. Destinations such as Hawaii and New York City remain extremely popular, and, thanks to a certain Japanese baseball player by the name of Shohei Ohtani, Los Angeles—and Dodger Stadium, in particular—welcomed thousands of fans over the course of the MLB season this year. With Shohei recently named the National League’s MVP, we can expect to see even more Japanese travelers heading to California and elsewhere in the States when the 2025 season kicks off.

There are few places in the world with the sheer diversity of natural wonders and cultural and culinary experiences. Next year’s Expo 2025 in Osaka will be a chance to truly showcase all that the United States has to offer. Our interactive pavilion is designed to inspire visitors to learn more about the United States, explore the country in person, and even consider studying there. We expect the expo to help boost visitor numbers to the United States in 2025 and in the years ahead.

The recent agreement to establish Japan as our 18th Global Entry partner country couldn’t come at a better time, and is sure to enhance the travel experience of Japanese visitors to the United States. Since Japan is our largest foreign direct investor, and Japanese companies employ nearly a million Americans, it makes good business sense to make entry as straightforward and as stress-free as possible for pre-approved visitors. This latest agreement is another reflection of the strength of our bilateral ties.

How important was the Biden–Kishida summit?

[Former] Prime Minister Kishida’s state visit in April ushered in a new era for the alliance. It cemented the work we had been doing for the previous two years to deepen our cooperation in a multitude of areas. Security might be a key pillar of our partnership, but we are leveraging our strengths to drive innovation and growth on every front, from energy and education to science and space exploration. The United States and Japan, as President Biden reiterated during the state visit, are global partners whose endeavors and achievements are being felt across the Indo–Pacific and beyond.

The alliance is now at the heart of a new latticework of multilateral partnerships across the Indo–Pacific. By replacing our “hub-and-spoke” architecture of regional bilateral relationships with multilateral cooperation and consensus, we have built an energized environment of trust and dynamism in the region.

The historic trilateral partnerships we forged with Japan and South Korea and with Japan and the Philippines—as well as the work of the Quad strategic grouping of the United States, Japan, India, and Australia—boost our deterrence in the Indo–Pacific while providing renewed momentum for greater cooperation and integration between countries and economies. One thing is for certain: There is much more to come in the years ahead.

“What we do over the next three years will determine our presence and our vision over the next 30 in the region.” That line from my confirmation hearing in 2021 turned out to be my guiding principle during my time here.

How might Japan’s new political landscape impact bilateral cooperation?

Our efforts over the past three years to strengthen the US–Japan alliance, and to reassure allies and partners that the United States is a permanent Pacific power and presence, have received universal support from across the political spectrum on both sides of the Pacific.

There is a clear understanding in Japan and in the United States that the alliance forms the bedrock of our collective deterrence in the region, and that continued cooperation with other regional partners and allies is critical to confronting a China that seems intent on dominating its neighbors and forcing the region to play by its rules.

How has Japan changed your view of America?

Distance has given me perspective on both America’s strengths and challenges. My first few weeks in Tokyo were certainly eye-opening. Seeing people leave valuables on tables or benches while they went to get coffee or jog around the Imperial Palace revealed a level of social trust I had never witnessed before.

Equally bewildering—but beautiful—was the sight of young schoolchildren walking alone to and from school each day, with cars coming to a complete stop when children raised their hands in the air before crossing the road. Those scenes highlight to me how much kids in the United States have been robbed of their innocence. We make so many compromises and concessions for our safety in America. It’s been liberating to be free of that constant and nagging concern.

What I have been repeatedly reminded of while here is the dynamism of America’s entrepreneurial ecosystem. Our unique and unrivaled environment of venture capital firms and angel investors is what drives innovation and invention.

Our university research programs and private-sector tie-ups are unmatched, too. It’s no surprise that so many entrepreneurs, start-ups, and scientists gravitate to the United States—a place that embraces risk, encourages expression, and champions big thinking.

What is your message to the next ambassador?

The past three years have been about shoring up alliances, building multilateral partnerships, and strengthening our security commitments. With a firm framework now in place, the years and decades ahead will be about developing those strategic relationships and initiatives further while ensuring that the stability of the Indo–Pacific is protected and its economic vibrancy preserved.

Your Own Private AI

As artificial intelligence evolves, custom systems unlock business resources

Konosuke Matsushita was one of Japan’s greatest entrepreneurs. As the founder of a light socket company that evolved into Panasonic, he inspired legions of salarymen with his business wisdom. Twenty-five years after his death, the “god of management” was effectively resurrected as an artificial intelligence (AI) model. A chatbot trained on his writings and speeches can produce eerily lifelike Matsushita answers, according to one relative, and will eventually be used to make business decisions. It’s a dramatic example of how businesses are using AI to leverage intellectual property built up over decades.

The past few years have seen an explosion of AI applications based on large language models (LLMs) and tools such as OpenAI’s ChatGPT and Google’s Gemini. They have been used for everyday tasks such as writing text for slide decks, lessons, and articles, as well as synthesizing search results as in Google’s AI Overview that now appears with most searches.

LLMs are based on computational systems using neural network transformers that perform mathematical functions. Measured by the number of parameters they contain, LLMs learn by analyzing vast amounts of text from books, websites, and other sources. During training, the model identifies patterns, relationships among words, and sentence structures. This process involves adjusting millions of parameters—values that help the model predict what comes next in a sequence of words.

A major problem with LLMs and generative AI, however, is that they usually draw entirely from online content and thus are prone to inaccuracies. AI hallucinations, as they are called, occur when LLMs observe patterns in the data that are nonexistent, or at least imperceptible to humans.

One solution is private AI. It brings the power of LLMs inside a company, where queries are secure and limited to the company’s own data, reducing the risk of security leaks and incorrect or misleading responses. Private AI has traditionally been limited to government, defense, finance, and healthcare users, but it’s spreading to a broader spectrum of industries due to fears about intellectual property theft.

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“[Private AI] brings the power of LLMs inside a company, where queries are secure and limited to the company’s own data, reducing the risk of security leaks and incorrect or misleading responses.”

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Kenja KK, a member of the American Chamber of Commerce in Japan (ACCJ), is opening up the market in Japan to private AI. The Tokyo-based company offers AI solutions for enterprises that include purpose-built expert systems, incorporating a relatively new AI technology called retrieval-augmented generation (RAG).

Bearing a name coined as recently as 2020, RAG relies on a predetermined collection of content to improve the accuracy and reliability of generative AI content. Kenja offers a self-service plan for small and medium-sized businesses and a more comprehensive enterprise plan for businesses.

“Private AI is the next frontier,” said Kenja founder and Chief Executive Officer Ted Katagi, who is also chair of the ACCJ’s Marketing and Public Relations Committee. “All companies face the same issues: you have very sensitive data that you don’t want to make accessible to everybody at the same time. Private not just in terms of someone outside the company, but within the company, too. You may not want HR data to be shared with people in finance, for example. That’s an issue you want to solve, and we solve that.”

Kenja users create so-called rooms where they can upload thousands of documents or other content, organizing this into topic-specific folders. The process can be automated, and Kenja can train and fine-tune the system. For instance, it can be taught to forget certain words or trained to understand a balance sheet in order to do financial tasks such as due diligence.

“You are kind of building a wall around a set of information and telling it to only use what’s in this area,” explained Katagi. “Having 85–90 percent accuracy—which is what current generative AI, such as ChatGPT, Gemini, or Claude, will give you—is not good enough. Private AI models that are fine-tuned and query a closed set of materials can close that gap.”

Private AI is being used in surprising applications. Just as Panasonic has cloned its founder in digital form, Dr. Greg Story is using Kenja to share the teachings of another business luminary, Dale Carnegie. The self-improvement guru from Missouri wrote a book in 1936, How to Win Friends and Influence People, that still counts among the world’s all-time bestsellers. As president of Dale Carnegie Tokyo Japan, Story has been teaching Japanese businesspeople about leadership, communications, and other skills in Dale Carnegie seminars for the past 14 years. Dale Carnegie started in Japan in 1963. 

Since learning about the impact of content marketing, he has built up an enormous corpus consisting of white papers, e-books, printed books, course manuals, 270 two-hour teaching modules, as well as video and audio recordings that include hundreds of podcast episodes. He has penned a series of books himself in English and Japanese that includes Japan Sales Mastery, Japan Business Mastery, Japan Presentations Mastery, and Japan Leadership Mastery.

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“If you like the cut of our jib and you want a Dale Carnegie point of view and a curated, trustworthy response, we provide that through this AI.”

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The material was scattered in different places, and when clients began asking for on-demand training, Story decided to get ahead of the curve by including all his company’s content in AI-curated form, something public chatbots cannot do.

“ChatGPT will give you everything it can scrape together, but it’s everything and therefore nothing,” said Story. “You get generic answers, and you don’t know if they’re trustworthy. But if you like the cut of our jib and you want a Dale Carnegie point of view and a curated, trustworthy response, we provide that through this AI.”

Story thinks the technology can benefit businesses that have substantial bodies of work to draw on, but those that don’t will get thin answers. He adds that using tools such as those from Kenja will not only help his company learn about the benefits of AI, but it will also give it an edge over competitors. He plans to roll out his AI offerings in 2025, delivering customized responses to students’ questions in English or Japanese on topics ranging from sales to diversity, equity, and inclusion.

Could there be a Dale Carnegie version of the Matsushita chatbot one day?

Kenja has begun working with Dale Carnegie’s global team to do just that, and has developed a prototype revival of Dale Carnegie’s voice, avatar, and writing style. The writing style and word generation are done with Kenja RAG AI technology.

“Carnegie became a global superstar in a non-digital world,” noted Story. “There’s no question we can get an AI to read a script generated in his style, in his voice. It’s amazing.”

Clinic Concierge

ROAM Medical helps you get the care you need, wherever you need it

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Presented in partnership with ROAM Medical

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While studying at Keio University in 2019, Chris Motz experienced one of the unpleasant aspects of living abroad: navigating a new medical system.

“I had to find a dentist,” he recalls. The permanent retainer on his bottom teeth broke, leaving a wire protruding inside his mouth. He turned to the school administration for help.

“They recommended a dentist down the street,” Motz said. “Like many doctors in Tokyo, he spoke English but didn’t really speak English. The solution he provided was very much a Band-Aid. He put some glue on the retainer and put it back in place, which didn’t actually repair the wire. And he didn’t refer me to an orthodontist.”

The retainer broke again.

Motz’s parents happened to be visiting and asked their hotel concierge to book a doctor. “They set me up with a really nice clinic. The dentist trained in the United States and spoke fluent English. But that whole experience took a week or two for what I thought should have been an easy fix.”

The ordeal gave Motz, a graduate of the Wharton School of the University of Pennsylvania and Imperial College London, a business idea. He would create a platform that connects expats and travelers to English-speaking healthcare services abroad.

ROAM Medical launched in Tokyo in January 2022 with 54 clinical partners. Since then, it has completed 62 bookings through its concierge service, which schedules appointments with the most appropriate provider based on the patient’s needs.

“The case I’m most proud of is that we helped a baby enter the world,” Motz shared. “We were contacted by an American woman who found out she was pregnant soon after moving to Tokyo and needed to find an ob-gyn. We were able to book her first appointment, and she booked a few more through us after that.”

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“Our goal is to create a product that helps you get the care you need wherever you need it by building a strong network of providers around the world to deliver a more interoperable experience.”

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To build its network in Tokyo, ROAM initially researched the Japan National Tourism Organization’s list of foreigner-friendly healthcare providers. “We filtered through those by visiting their websites to get a sense of truly how well they can speak with foreigners,” Motz explained. “Then we reached out to verify their information, tell them about ROAM, and begin a dialogue to start working together.”

To find a clinic, a patient visits the ROAM website and completes the concierge form, explaining their needs, preferred time, and insurance situation. The fee per booking is $5 (yen charges vary with exchange rate). Treatment costs depend on the doctor. When ROAM receives a request, they contact an appropriate clinic, book the appointment, and send a confirmation within 24 hours.

“If you talk to enough expats, you’ll hear a range of stories about being sick abroad,” said Motz. “And because you’re there for an extended period, you must regularly interact with the healthcare system. It’s unavoidable, and it can be frustrating.”

Poor interoperability is another issue Motz hopes to solve through ROAM. “A lot of medical records are difficult or impossible to transfer from country to country,” he explained. “It shouldn’t be this way. Our goal is to create a product that helps you get the care you need wherever you need it by building a strong network of providers around the world to deliver a more interoperable experience.”

Tokyo was the starting point, but Motz and his team have begun building a roster of English-speaking healthcare providers in Seoul and other major cities in east Asia. Over the next five years, they plan to expand the network to cities around the world.

For individuals needing treatment, ROAM provides a helping hand during life’s trying moments. For healthcare providers seeking to assist English-speaking expats and travelers, it offers a direct link to those in need. And for companies with a diverse staff, the service is an excellent way to deliver peace of mind to the talent that powers their success.

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Learn more about ROAM and find English-speaking healthcare services in Tokyo: https://tokyo.roammedical.com

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Academic Evolution

The British School in Tokyo is moving from A Levels to the International Baccalaureate

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Presented in partnership with The British School in Tokyo

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The British School in Tokyo (BST), the largest British international school in Japan, is planning to transition from the A Level curriculum to the International Baccalaureate Diploma Programme (IBDP) for students in Years 12 and 13 (ages 17 and 18). This shift is part of the school’s commitment to providing an educational experience that aligns with the evolving aspirations and needs of its diverse and dynamic student community.

BST is currently a candidate school* for the IBDP and aims to become an authorized IB World School, with the last A-Level cohort running from 2024 to 2026. The (International) General Certificate of Secondary Education—or (I)GCSE—will remain for Year 11, and there will be no changes for other year groups.

Evolving Education

Founded in 1989, BST is widely recognized for its strong reputation and commitment to excellence. The school currently serves a diverse international community of students representing 65 nationalities. While A Levels remain a respected qualification, the school has recognized the need to evolve in response to its changing demographic. The IBDP, a globally recognized qualification offered by thousands of schools worldwide, provides a broader, more international approach to education.

The IBDP offers a comprehensive education, requiring students to study six subjects across disciplines. It encourages critical thinking through Theory of Knowledge and promotes holistic development through Creativity, Activity, and Service, fostering independence and confidence.

Widely recognized by universities, the IBDP is one of the most rigorous pre-university qualifications. Research shows that IBDP graduates are more likely to be accepted at top higher-education institutions, with components such as the Extended Essay preparing students for university challenges.

Student Success

Over the past five years, BST students have matriculated to institutions such as Oxford, Cambridge, LSE, Columbia, Pennsylvania, Chicago, NYU, Toronto, UBC, Amsterdam, Leiden, and Todai. BST believes that it is important to match students to the best university for them, and the IBDP will help BST students continue to secure places in a wide variety of universities around the world.

As BST embarks on this exciting journey to become an IB World School, it remains committed to providing students with the best possible education, equipping them with the knowledge, skills, and values necessary for success in an increasingly globalized world.

For details and to enroll, visit www.bst.ac.jp.

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Twenty Years of Links and Leads

The Mercedes-Benz–Francis Ford Coppola Winery Cup strengthens business connections.

It started in 2001, on a sunny day in Honolulu. Robert Grondine and Erik Ullner had just completed a round on the Hawaii Kai Golf Course when Grondine, then president of the American Chamber of Commerce in Japan (ACCJ), had an idea. Could a tournament modeled after the Ryder Cup bring Tokyo’s foreign business community together? Ullner, then vice-chair of the European Business Council (EBC), loved the concept and brought it to EBC Chairman Richard Collasse.

“Our chairman was not a golfer, but he liked the idea because that sort of networking opportunity didn’t exist in those days,” recalled Ullner. “He said, ‘Erik, you’re the golfer, why don’t you arrange it together with the ACCJ?’”

The North America–Europe Golf Challenge was born.

The first outing was on September 26, 2003, at Atsugi Kokusai Country Club. Opened in 1959, the course in Kanagawa Prefecture continues to host the event to this day.

The 20th edition of the international battle will take place in Atsugi on October 4.

Organized by the ACCJ, the EBC, and, since 2013, the Canadian Chamber of Commerce in Japan (CCCJ), the shotgun-style tournament pits Team North America against the European national chambers of commerce and business associations in Japan that make up the EBC. Up to 72 golfers can play for each side. In some years, that has been stretched to 80.

Originally called the DaimlerChrysler Cup, the tournament was renamed the Daimler and Chrysler Cup in 2008, and then the Mercedes-Benz Japan Cup in 2010, as the title sponsor’s corporate structure evolved. In 2015, global lifestyle brand Cole Haan joined as cosponsor and the event became the Mercedes-Benz–Cole Haan Cup. Its sponsorship continued until the pandemic. In 2022, Thomson-Reuters co-sponsored.

This year, a new North American title sponsor comes aboard. California’s Francis Ford Coppola Winery will bring their Alexander Valley varietals to the course and after party.

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“The 20th edition of the international battle will take place in Atsugi on October 4.”

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The event is always competitive, with team scores based on the average of the top 80 percent of players. The winner is rarely ahead by more than 1.5 strokes. The smallest margin has been 0.06 strokes, demonstrating the very even matching of players.

This has led to a back-and-forth affair over the years. The European team won the first cup in 2003 before the North American team pulled off a three-peat in 2004, 2005, and 2006. The Europeans fought back, winning two of the next three (2007 and 2009) before the North Americans went on another roll, prevailing in 2010, 2011, 2012, 2013, and 2015. Not to be outdone, Europe has nabbed five of the past six titles: 2016, 2017, 2018, 2022, and 2023. The tournament was not played in 2020 and 2021 due to the coronavirus pandemic.

While this rivalry is fun, the real value, participants consistently say, is the networking and chance to build new relationships.

“I have played in the tournament 15 or so times over the years, including its first 11 years in a row,” said longtime participant Ryan Dwyer, a partner at the Tokyo office of K&L Gates. “The course is always in top shape, and I always enjoy the round and the networking party afterwards.”

Beyond networking, the tournament also supports the community. A fundraising component was added in 2006, and proceeds helped the YMCA Challenged Children Project—a program assists children with disabilities and special needs, offering them opportunities for inclusion, development, and participation in physical, social, and recreational activities—through 2022. This year, support will go to Unleash Potential, a non-profit organization dedicated to helping children with disabilities and challenges in Japan.

Prizes are also a popular part of the gathering, and the awards and raffle are a centerpiece of the post-competition party at the clubhouse. While top players have a chance to win performance prizes like high-end golf gear, all players have a shot at incredible prizes, such as wine and air tickets for international flights. With millions of yen worth of prizes being provided by this year’s sponsors, it is expected that no player will leave empty-handed.

More than 20 years after the seeds were planted in Hawaii, the North America–Europe Golf Challenge has blossomed into one of the most popular dates on the calendar for golfers of all levels in the business community. And as more Japanese players join, the opportunities for networking continue to grow. Grondine, who passed away in 2011, would no doubt be proud of what the ACCJ, CCCJ, and EBC task forces have nurtured.

If you’re a golfer, join the fun, enjoy the great on-course food and drinks, and find your next business connection. This is one event you shouldn’t miss!

Youthful Energy

The ACCJ Young Professionals Forum opens doors for ages 35 and under.

Fresh ideas and youthful energy are the lifeblood of business and international relations, and the American Chamber of Commerce in Japan (ACCJ) is dedicated to nurturing rising talent through the Young Professionals Forum (YPF). An interactive platform for young, working professionals aged 35 and under, the YPF provides members with opportunities to actively engage in all aspects of the chamber’s activities, including networking, information sharing, and advocacy.

“The YPF is all about creating connections that bridge generations, industries, and more,” explained Melynie Yoneda, a vice-chair of the forum. “Members have the opportunity to interact with high-ranking leaders within the ACCJ, as well as network with peers that they might not necessarily be able to meet in their day-to-day jobs. And ACCJ corporate members are able to get fresh perspectives from YPF members.”

Co-Chair Kelly Langley said that the YPF “has worked closely with the Board of Governors to enhance engagement with young professionals and continue innovating to build the future pipeline of leaders and members.” He added that professional development and human resource challenges continue to be areas where the YPF aims to contribute.

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“The YPF is all about creating connections that bridge generations, industries, and more.”

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Events such as the Learning from Executives series, held in collaboration with the ACCJ CEO Forum, expand mentorship and training, helping members develop both professionally and personally.

Yoneda said she is grateful for the forum and the opportunities it opens up. “As a young professional in Japan, it is easy to get swept away in your day-to-day tasks or fall prey to tunnel vision,” she noted. Her favorite memory so far was a cross-chamber networking event last October that brought together members of eight foreign chambers of commerce. “There was a palpable energy in the room that radiated from the 80 young professionals eager to meet and network with their peers.” A similar event is planned for September 17.

“If anything, the YPF is a chance to interact with peers from all industries and walks of life,” Yoneda concluded. “Today, we may just be networking and eating pizza, but it is exciting to think that the connections we make will become the future leaders shaping the US–Japan relationship.”

Sightseer Surge

Japan has seen a steady rise in visitors. Now set to break a record, can the tourism industry keep pace?

After more than two years of isolation and a slow reopening, Japan has steadily reclaimed its status as a top destination. The impressive bounce back began in 2023, when 25.06 million visitors lifted inbound tourism to 79 percent of the pre-pandemic record. The country is now on course to shatter its record of 31.88 million travelers, set in 2019.

In fact, the rebound has been so great that the pendulum has swung from tourism drought to flood. But with the economic benefits come strains on the hospitality industry. It is no longer a question of if Japan will recover, but rather how it will rise to the challenge of serving up its famous omotenashi to so many visitors.

Moving Past the Pandemic

In 2023, The ACCJ Journal reported on Japan’s reopening. Since the easing of border restrictions, the influx of tourists has had a positive impact on the hospitality industry.

Part of what continues to make Japan an attractive destination is its evergreen allure as a place of rich culture and history. “Japan has significantly boosted global awareness of its many attractions through marketing efforts such as the Cool Japan campaign and the strategic use of social media,” said Karl Hudson, area vice president of Japan and Guam for Marriott International, Inc.

More recently though, one of the most-mentioned drivers has been currency trading. Hudson continued: “The weak yen is having a significant impact on tourism operations in Japan, influencing both inbound and domestic tourism. On the positive side, it has made Japan a more affordable destination for foreign tourists, leading to a surge in inbound tourism.” 

These travelers spent nearly ¥5.3 trillion in 2023. Despite the total number of visitors not reaching 2019 numbers, spending exceeded that year’s ¥4.81 trillion. Midyear projections put the 2024 outlay at ¥8 trillion, and the Japanese government is eying ¥15 trillion by 2030.

According to The Asahi Shimbun, a significant portion of 2023’s ¥5 trillion-plus was spent on accommodations. At ¥1.83 trillion, this category accounted for 34.6 percent of the total spending. Other noteworthy expenditures were ¥1.4 trillion on shopping, ¥1.2 trillion on food and drinks, and ¥602.4 billion on transportation.

The New Challenge: Overtourism

With spending now surpassing pre-pandemic levels, the challenge lies in how to handle the ever-growing number of Japan explorers. In June, the country welcomed the most ever in a single month: 17.8 million.

“The downside [to the tourism influx] includes higher costs for imported goods, which can affect various aspects of tourism operations, from food and beverage supplies to hotel amenities,” explained Hudson. “To navigate these challenges, businesses are adopting dynamic pricing strategies, adjusting rates based on demand, seasonality, and booking trends to optimize revenue and manage costs effectively.”

Not only can these challenges cause issues for operations, but they can also impact the overall travel experience.

“You may often see long lines of foreign travelers waiting in front of train ticket counters and ticket vending machines,” noted Yasuhiro Sudo, senior vice president and Japan country manager at American Express International, Inc. 

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“With spending now surpassing pre-pandemic levels, the challenge lies in how to handle the ever-growing number of Japan explorers.”

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These long lines, he said, are caused by travelers trying to purchase tickets, using unfamiliar machines that lack multilingual support, or interacting with agents. “This causes many foreign travelers to become tired before boarding the train, resulting in a less-than-satisfying travel experience.”

In the most-visited areas, there is a lot of strain on infrastructure, which is felt by residents and visitors alike.

A notable case study is Kyoto, which has received a significant portion of the tourism pie since borders reopened. Residents are growing uncomfortable with the number of daily visitors. As reported by NHK, of about 2,500 Kyoto residents surveyed between October and November 2023, some 86 percent said that they were annoyed by crowding in and around tourist spots. According to the survey, the impact was felt particularly on public transportation, which has become overcrowded. Tourists’ littering and overall behavior are further irritants.

Sudo said the issue is more pronounced along Japan’s Golden Route, which runs from Tokyo to Kyoto and includes stops at popular destinations such as the hot springs of Hakone, in Kanagawa Prefecture.

According to data from the Japan Tourism Agency’s 2023 Accommodation Travel Statistics Survey, Tokyo, Osaka, and Kyoto accounted for about 70 percent of inbound lodging destinations, and there is an increasingly large bias toward staying in these cities.

Digital Transformation

In the face of these challenges, experts in the field are looking to various solutions, including in the area of digital transformation (DX).

American Express, Sudo said, is promoting the adoption of contactless payments with credit cards on public transportation so that foreign travelers can use their usual credit cards.

“This is not only for transportation,” he added, “As contactless credit card payment progresses at sightseeing spots, stores in town, shrines, temples, and other places, it can contribute to reducing congestion. Cashless, contactless payment is one of the first issues to be addressed in the tourism DX space.” 

Marriott’s Hudson agrees, and shared some of their own efforts. “Our app and web merchandising have become key localization channels, enabling us to deliver targeted and relevant offers, destination content, and dining recommendations tailored to the location, tier level, and digital behaviors of each of the 210 million Marriott Bonvoy members. By adopting a federated regional approach to managing merchandising content, we achieved faster market responsiveness amid the shifting conditions following the Covid-19 pandemic.”

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“In the face of these challenges, experts in the field are looking to various solutions, including in the area of digital transformation.”

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Hudson also noted the efficacy of Marriott’s other DX efforts, such as their Destination Storefronts,
Dining Portal, and multilingual websites.

The digital space has been a key element in improving visitor experience, with other major players also bringing in new services, such as Universal Studios Japan’s smartphone app.

With the upcoming Expo 2025 Osaka, Kansai expected to attract 28.2 million visitors—3.5 million from overseas—an important consideration is how to ensure smooth travel and minimize disruptions. “We remain hopeful that tools like the Travel Contents App, among others, will facilitate seamless access for visitors from across the globe to enjoy Osaka,” a Universal Studios Japan representative told The ACCJ Journal.

Fees and Education

Another option industry experts are eying is the introduction of taxes and other visitor fees. One such proposal was discussed at the Osaka Prefectural Assembly in March, with Governor Hirofumi Yoshimura emphasizing “the need to secure financial resources for landscape beautification and other things,” as reported by The Mainichi Shimbun.  

Similar taxes and fees already have been introduced, such as July’s introduction of a ¥2,000 fee to climb Mount Fuji and the International Tourist Tax, which came into effect in 2019 and requires residents and visitors alike to pay ¥1,000 when leaving the country. ACCJ Tourism and Hospitality Committee Chair Stephen Zurcher said he is unsure of the efficacy of these measures. “When our committee members met with various Diet members last year, we found that the tourist tax usage was opaque,” he explained. “Even the Diet members did not know how the tax was being spent.”

A shortage of personnel is also making it difficult to serve visitors. “With the rapid return of strong inbound tourism, the industry is seeing higher demand for rooms, but staff levels are lower than before the pandemic,” noted Zurcher, who is also a management professor and dean of the Asian Studies program at Kansai Gaidai University. The sentiment was echoed by Hudson, who said that Marriott is also facing “staffing challenges.”

This is not a small issue. According to business research provider Teikoku Databank Ltd., more than 80 percent of inns and hotels are facing a labor shortage. And with rising visitor numbers, the discrepancy between supply and demand will only grow more prominent.

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“Both imported and local talent need to be developed to support the projected growth of tourism in Japan over the next five to 10 years.”

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Both Marriott and Universal Studios Japan mentioned overseas recruitment and bilingual staff as being a part of the solution, but this comes alongside a push for more domestic workers and a need to educate both.

“Bringing in foreign workers to assist the labor shortage in the hospitality industry is currently being supported to some extent,” said Zurcher. “But, beyond these workers in operational roles, the industry needs management talent, and that takes a longer-term investment in talent development on the part of the government and the industry itself. Both imported and local talent need to be developed to support the projected growth of tourism in Japan over the next five to 10 years.”

The ACCJ published a viewpoint last October entitled “Preparing Japan for the Post-Pandemic Tourism Industry,” in which it recommends that the Japanese government make education in hospitality a priority. The viewpoint notes that, while a lot has gone into the building of accommodations to match tourism growth, not enough has been done to expand training at educational institutions to keep pace.

There is a call for Japan to step up its game to be on par with other international players. “Hospitality education in Japan has historically fallen to junior colleges,” noted Zurcher. “This contrasts sharply with the rest of the world, where hospitality education is conducted primarily at four-year [colleges] and at the graduate level, often at highly regarded schools such as Hong Kong Polytechnic University, the University of Nevada, Las Vegas, and Cornell University, as well as many excellent schools in Europe. Japan currently has no equivalent.” Education and encouraging young talent could be a much-needed part of the solution to both staffing shortages and visitor satisfaction.

Looking Forward

While the tourism surge has brought challenges, it presents an opportunity to improve services and create a better experience for tourists and residents alike. Whether through DX, education, or other approaches, finding solutions is paramount as Japan’s visitor numbers soar.

“Tourism is one of the fastest growing industry segments in Japan,” Zurcher said in closing. “Over time, tourism could become the most important industry for the country as a whole. It is in Japan’s best interest to be able to support this anticipated growth by investing in the labor supply.”

Supply Change

Recruiter Robert Half on the evolving landscape of supply chain management.

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Presented in partnership with Robert Half

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From left: Kazuko Oya and Taku Yamashita (Photo: Yuuki Ide)

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One thing the pandemic laid bare was the fragility of supply chains. When borders closed and restrictions to contain the spread of the coronavirus put a crimp on the movement of people and parts, manufacturers had to quickly adjust their logistics. As a changed world moves forward, companies are taking the lessons learned and looking to improve their supply chain management.

For Japanese companies, shifting gears can be difficult. Entrenched and outdated enterprise resource planning (ERP) systems, and even manual processes centered on Microsoft Excel, scream for digital transformation. But to make the change requires knowledge, experience, and leadership.

Specialized recruitment agency Robert Half is helping connect companies with consultants who can lead the way. Its team of supply chain management recruitment consultants has unique insight into the Japanese market, with extensive knowledge and established networks nurtured over 18 years. Taku Yamashita and Kazuko Oya shared with The ACCJ Journal the situation and trends in the Japanese market and how they are able to adapt to client needs to deliver exceptional value and results.

“Our unique differentiation is that we have ironclad relationships with supply chain management gaishikei [foreign-capital companies] seeking bilingual candidates,” explained Yamashita, director of supply chain management and human resources. “We completely understand skill sets, experience, and value for our clients.”

Oya, the senior division director for supply chain and procurement, noted that their extensive experience allows them “to consult with clients and collaborate to find candidates who offer the highest value and return on investment.”

Elusive Talent

Finding candidates is one of the biggest challenges that Japan faces as its domestic industries attempt to transform how they plan and manage supply chains that Oya and Yamashita said are “late to the party” and behind global standards. One big reason is education. Japanese university degrees are concentrated in areas such as finance, economics, sales, and marketing. An MBA is mandatory for supply chain management, but there are no MBA programs in Japan that focus on it. Consequently, there are few knowledgeable, educated candidates to lead the supply chain transformation.

“For a company starting or going through the transformation, it’s not just about the experience or skill set, but more about the leadership and mind-set.”

One situation that can create challenges for companies that are trying to take a step forward can come during a merger or acquisition. Domestic branches of a company may use outdated ERP systems, while the international branches run on more modern platforms and adhere to best practices. Getting the two systems to talk to one another is not possible. Changing the ERP system is the largest hurdle to overcome, and a consultant is usually brought in to get a new system in place, a process that can take a year or two.

What kind of candidate is needed to carry out such a transition?

“For a company starting or going through the transformation, it’s not just about the experience or skill set, but more about the leadership and mind-set,” said Oya. “There will be a lot of changes—not just to the system, but to the people, culture, and operational processes. So, somebody who is resilient is needed, somebody who is not afraid of making changes and can have an immediate impact from a planning perspective.”

Because of their knowledge of the industry, spanning almost two decades, Oya and Yamashita are able to consult with Robert Half’s clients, both domestic and international, on the challenges, needs, and hurdles they must overcome. They can go beyond recruitment and offer advice on who is the right candidate to fill this role, whether that be a domestic person or somebody from abroad with good Japanese language skills. They may even find the elusive, but highly sought-after, unicorn: someone half in Japan and half out.

“There are young Japanese workers who start in a Japanese company and then want to move to an international company,” explained Yamashita. “These workers may then come back to Japanese companies in their mid-forties or fifties.”

One path to this which Robert Half has noticed is for university graduates to join a consulting company, learn the supply chain methods for five years, and then return.

“They want to contribute to the development of their own country, so they come back to traditional Japanese companies,” Yamashita added.

Why It Matters

One reason that Oya and Yamashita feel that supply chain logistics in Japan lags far behind that found in the United States or other countries is that it isn’t viewed as equally important within traditional companies.

“There are various functions in a company—sales, marketing, finance, human resources—and supply chain is one of these. But in general, in Japan, I feel that it doesn’t get the same respect or visibility as the others, because supply chain is often seen as blue collar,” explained Oya.

But supply chain management is critical to the success of any business, whether a company is manufacturing a car or delivering fast-moving consumer goods to a customer’s doorstep.

““We’ve started seeing more Japanese companies trying to hire people coming from a global background and mind-set.””

One of the most important areas of supply chain management is sales and operations (S&OP), which is in charge of production and demand planning one month, one year, or two years out. Making S&OP more adept and resilient is growing in importance not only in Japan but the whole Asia–Pacific region as many international companies focus on APAC business.

A client that has been growing its overseas business and has its headquarters in Japan realized that, to win the global market, it needed to change its approach to supply chain management and bring S&OP up to speed. A specialty of Robert Half is helping Japanese companies bring international culture and methods from the United States and other countries into Japan, so the partnership is a perfect fit.

“We’ve started seeing more Japanese companies trying to hire people coming from a global background and mind-set,” noted Oya. “Mid-career hiring is something that traditionally hasn’t happened in Japan, but is becoming increasingly common. We’re seeing more people with 30 years of experience at American or multinational companies moving to big Japanese manufacturers with a very long history of hiring new grads and training them in their way, not hiring from outside.”

One of those seasoned veterans could be the missing talent to lead a transformation of your supply chain, and the Robert Half team are ready to partner with you to build resilience for today and the future.

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Register now to learn, connect, and get inspired by Robert Half Japan networking events: roberthalf.jp

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A Night of Stars and Stripes

ACCJ members and partners celebrate Independence Day and 75 years as the voice of global business in Japan.

Photos by Miki Kawaguchi/LIFE.14

Tokyo American Club’s New York Ballroom pulsed with energy—and music—on July 2 as the American Chamber of Commerce in Japan (ACCJ) marked the 248th birthday of the United States and its own 75th.

Dubbed “A Night of Stars and Stripes,” the evening was an expansive celebration of American heritage and the enduring bilateral relations that connect the United States and Japan.

More than a Fourth of July bash, the event marked the diamond anniversary for the ACCJ. Organized by the Board of Governors, the party was the chamber’s largest gathering since the onset of the Covid-19 pandemic and highlighted the vibrant reengagement that has been underway throughout the year.

As more than 400 members, guests, and VIPs made their way into the ballroom, emcee Emily noted that, since its founding in 1948 with the support of General Douglas MacArthur, the ACCJ has been the most active and influential foreign business organization in Japan, fervently pursuing its mission to: 

• further develop commerce between the United States of America and Japan,
• promote the interests of US companies and members,
• and improve the international business environment in Japan.

ACCJ President Victor Osumi surprised the crowd by singing the national anthems of Japan and the United States before delivering opening remarks. “There’s no budget problem,” he jokingly noted, explaining that he chose to perform these important songs himself because of his heritage, which fuels his passion for US–Japan relations.

“Having grown up in the US and Japan, both countries have greatly shaped my identity and values, and have given me a bicultural perspective that made me who I am today. I’m honored to serve as a bridge connecting our two great nations,” Osumi said.

“To our members and our incredible committee leaders, thank you for your involvement with the chamber, which drives everything we’ve accomplished over the past 75 years,” he continued. “And to our valued partners, thank you for working with us to strengthen the US–Japan economic partnership, which is one of the most important alliances in the world.”

Japanese Vice-Minister for International Affairs Takehiko Matsuo spoke next on behalf of the Ministry of Economy, Trade and Industry.

“The Japanese government continuously provides its strong support to all of you,” he said. “I believe, and I do hope, that the ACCJ could play a very important, very key role to further strengthen our two countries’ economic ties.”

US Ambassador to Japan Rahm Emanuel then shared congratulations via video, as he was traveling in the United States at the time and unable to attend.

“Since the birth of the chamber, Japan has emerged as a respected global leader in a multitude of areas—in business, technology, manufacturing, and most importantly, research and development,” he said. “Through the dedicated efforts of the chamber, and all the companies that make up the chamber, our two nations have worked side by side to make groundbreaking strides across the spectrum, from next-generation technologies to clean energy.

What we accomplish together in the years ahead will set a benchmark and will shape the lives of millions for decades to come. I wish all of you a very happy Independence Day and another 75 years of success as we build a future for the United States and Japan.”

Newly arrived Deputy Chief of Mission Katherine E. Monahan followed up these remarks with her own reminiscence of coming to Japan in 1987 on the Japan Exchange and Teaching (JET) Programme, as well as her past work with the ACCJ Financial Services Forum. “It was a really interesting and fun time,” she said. “I have a deep love of Japan, and a part of me has always been here. Japan is a really special place, and the things we do together are amazing.”

Monahan raised a glass to toast the birthdays of both the United States and the ACCJ, and the evening gave way to a rousing performance by legendary American guitarist Marty Friedman. Well known as the lead guitarist of American thrash metal band Megadeth, Friedman moved to Japan in 2004 to pursue his love of the country, language, and a desire to perform with Japanese musicians. He was named an ambassador of Japanese heritage by the Agency for Cultural Affairs in 2016.

“It takes a lot of motivation and kind of an insane story to want to come here to Japan and make a life here,” he said. “But I know all of you will agree with me that it’s probably the most cool thing that we’ve all done in our lives. Japan is like a country of dreams … and my dream came true in so many different ways because of Japan.”

Friedman performed as part of the generous support of iconic guitar maker Fender, which presented two Stratocasters—one manufactured in the United States and one in Japan—to the chamber. ACCJ President Victor Osumi joined Fender Senior Vice President APAC Giorgio Guerrini and Product Management Director APAC Masato Fujikawa onstage to receive the gifts.

Following another spectacular performance by Friedman, members and guests began networking as they were treated to a flavorful Fourth of July-inspired spread curated by Michael Anthony, executive chef of New York’s Gramercy Tavern. Anthony, who was brought to the event by Delta Air Lines in collaboration with Tokyo American Club and the ACCJ, got his start in Tokyo in the early 1990s. Anthony’s goal in crafting the Independence Day menu, he told The ACCJ Journal, was to “serve foods that connect with childhood memories of the holiday.”

To go along with the bites, Brown-Forman bartenders served up more-adult libations made with the company’s Jack Daniel’s Tennessee whiskey and Woodford Reserve bourbon, including the signature Woodford 75 cocktail, named in honor of the ACCJ’s diamond milestone.

The night’s theme of music continued across the way in the Brooklyn Suite, where ELAC, innovators of speakers and audio equipment for 98 years, presented an immersive sound experience featuring more than seven decades of classic American and Japanese vinyl.

The evening was made possible thanks to the generous support of Aflac, Boeing Japan, Delta Air Lines Japan, Google Japan, and GR Japan, who contributed at the highest level as Stars and Stripes sponsors, as well as Red, White, and Blue sponsors FedEx Japan, RGA Reinsurance Company, and Toyota.

Along with ACCJ President’s Circle member companies Cisco Systems, connectFree, and Eli Lilly Japan, and other partners, the community came together to deliver a night to remember as the ACCJ continues the mission it set out on in 1948: to be the voice of global business in Japan.

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Partnership and Progress

ACCJ President Victor Osumi shares thoughts on the chamber’s active year of reengagement and 75th anniversary.

Photos by Shelley Mae Photography

Growing up in a diverse, dual-culture environment, Victor Osumi spent most of his early years in Los Angeles. He would also regularly visit Japan. When he moved to Florida for high school, he set out on a path that would lead him to the US Air Force and, ultimately, to his current role as managing director and president of Japan operations for Delta Air Lines, Inc., as well as president of the American Chamber of Commerce in Japan (ACCJ).

At the start of 2024, The ACCJ Journal sat down with Osumi to learn more about his very active role with the chamber and the path he saw ahead as he took the helm. As the heat of summer set in, we again joined him at Delta’s office near Shiba Park to gauge how the year he has dubbed one of reengagement is evolving, and where he sees the chamber amid its 75th anniversary.

You set out to focus on fostering partnership, embracing progress, and bridging to the future with excellence when you began your presidency. How are those goals progressing?

It has been going very well. For three years, Covid-19 put limitations on in-person interactions, but this year we are fully open and the ACCJ is taking advantage. The changes resulting from the pandemic bring opportunities not only for business but for us to refine ourselves as a chamber to best meet the needs of today.

We’ve had tremendous success in reaching these goals and reinforcing why the ACCJ is known as the voice of global business in Japan. I have to thank everyone on the Board of Governors for their hard work. In our meetings, I have asked each leader how they feel we could improve the chamber.

We identified three areas:

• Quality over quantity
• Committee focus
• Strengthening relationships

We promote 500–600 events each year organized by 60-plus committees. That is a lot. We have working groups assessing how best to leverage and focus the expertise of our membership to benefit the global business community.

Relationships are the lifeblood of the chamber, and an important task coming out of the pandemic has been to reengage in person with our member companies. In the first half of 2024, we visited many leaders—including the CEOs of more than 30 of our Corporate Sustaining Members—to discuss the state of business and the market, and to be sure that we are delivering what they need. I have enjoyed doing this together with many fellow board members and Executive Director Laura Younger.

When it comes to advocacy, we want to be sure that we are approaching the right people and are enhancing those relationships. There was a bit of a disconnect during the Covid-19 pandemic, so we have prioritized reengaging those efforts where needed, such as with the Keizai Doyukai [the Japan Association of Corporate Executives] and embassies.

We are making great progress, and our goal is to ensure quality, strengthen advocacy, and boost the voice of the ACCJ and the benefits of being a member.

How was this year’s visit to Washington?

The DC Doorknock—along with the Diet Doorknock—is one of the most important events each year for our advocacy, and those meetings were curtailed by the pandemic. The full resumption this year has reinvigorated the communication and bonds that are critical to strengthening bilateral relations and business.

In June, I joined fellow ACCJ leaders for this year’s visit to Washington. Everyone we met was more engaged with Japan. They wanted to know what the Japanese government and US businesspeople in Japan are thinking as they consider how the United States should approach the region. I feel we are reengaging in a constructive way and advancing important dialogues on a range of critical issues, including artificial intelligence (AI), quantum computing, semiconductors, cybersecurity, and space.

Digital initiatives are of particular urgency, and expanding cooperation with like-minded partners to align on the application and governance of AI, strengthen cybersecurity, and promote free and fair digital trade agreements is essential to the peace and stability required for ensuring a prosperous future for our nations.

One path to that is the Indo-Pacific Economic Framework for Prosperity (IPEF). How has that initiative progressed this year?

Yes, IPEF is one way in which Japan, together with the United States, can play a leading role in the region and build stable and resilient relationships with its neighbors. It has been good to see the progress made thus far—a very steady approach that isn’t rushed.

There is huge opportunity in the Indo–Pacific region—it’s one of the fastest-growing markets—and I believe that IPEF offers many areas for the ACCJ to explore. The bilateral trade relationship between the United States and Japan has improved, and Prime Minister Fumio Kishida’s visit to Washington in April highlighted this.

Infrastructure, technology, cybersecurity, and supply chains are all areas with great potential for development as a result of IPEF. There is room to improve, and there are challenges in the regulatory environment given each country’s own regulations and policies, but I see great potential. As the countries involved work on the next steps to realize the promise of IPEF, the ACCJ must continue to be part of the discussions.

Tourism is another area hit hard by the pandemic. How has the ACCJ been able to support its recovery?

Inbound tourism is vital to the economy and has seen an incredible resurgence this year. Japan is on track to break the record of 31.88 million visitors, set in 2019. When Ambassador Rahm Emanuel arrived in January 2022, the number of foreign nationals entering the country that month was 17,800. There was pressure from many areas and organizations to get the borders reopened. Ambassador Emanuel and his staff were key to making that happen, and the ACCJ was able to serve as a conduit between our members and the Japanese and US governments. Japan is thriving again, and with events such as next year’s Expo 2025 Osaka, Kansai on the horizon, this economically important trend looks certain to continue.

Also important to our member companies is diversity, equity, and inclusion. Has there been progress on Japan’s support for DEI?

DEI is so very important to attracting and retaining top talent for our members. I feel everyone is conscious these days about social responsibility, and DEI helps each company bring its core values to the forefront.

Japan remains an outlier among G7 countries in recognizing same-sex marriages. While not all the court rulings have been resoundingly positive, I do feel we have made some progress in the Diet, and we renewed our viewpoint in support of marriage equality. Ambassador Emanuel has been extremely supportive of diversity and has helped a great deal. I think that we are doing the right thing socially by supporting marriage equality and DEI initiatives, of course, but the issue is also of great importance to business. We must continue to aggressively support this movement.

From left: ACCJ Executive Director Laura Younger, President Victor Osumi, US Deputy Chief of Mission Katherine E. Monahan, and Japanese Vice-Minister for International Affairs Takehiko Matsuo at A Night of Stars and Stripes on July 2. (Photo: Miki Kawaguchi/LIFE.14)

Where do you see the ACCJ as we mark our 75th anniversary?

The ACCJ has adapted to many challenges and changing environments over the past 75 years, and the Covid-19 pandemic was a real test of our resilience as an organization. Our strength showed, and we learned a lot that is helping us rethink how we work, how we communicate, and how we support each other.

The vibrancy of the ACCJ was on full display on July 2, when we gathered at Tokyo American Club for A Night of Stars and Stripes, our big bash to celebrate the Fourth of July as well as our own 75th birthday. The event was organized by the Board of Governors and we had more than 400 attendees. It was a pleasure for me to sing the US and Japanese national anthems. I’m honored to serve as a bridge connecting our two great nations. My background, having grown up in
both countries, is what drives my passion for US–Japan relations and my current role as ACCJ president.

It was also an honor to welcome representatives of the US and Japanese governments to speak. Their close collaboration at our many engagements and briefings throughout the year are vital to the success of our mission. Vice-Minister for International Affairs Takehiko Matsuo joined us from the Ministry of Economy, Trade and Industry, and Deputy Chief of Mission Katherine E. Monahan attended from the US Embassy. Ambassador Emanuel shared remarks in a video, as he was traveling in the United States at the time. It was an incredible evening.

I would also like to say thank you to all our members, and especially to the founding companies that are still with us today—Bank of America, J.P. Morgan, Citi, United Airlines, and AIG, along with Coca-Cola and GE, both of which joined a few months after the founding. Since 1948, the continuity that these members represent is a testament to the staying power of our collective voice.

I’m very proud of what we’ve accomplished. As a member-led organization, the power of the ACCJ comes from our 3,000-plus members. My mission as president, and the mission of the Board of Governors, is to ensure that we are bridging to the future with excellence. Our incredible members and committee leaders—as well as the dedicated office team that works so hard behind the scenes—come together to drive everything we’ve accomplished over the past 75 years, and there are many more years of partnership and progress to come.

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Workforce Matters

What causes foreign capitalists to succeed or fail in Japan?

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Presented in partnership with Dayforce Workcloud

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Japan has long been seen as an attractive destination for companies expanding operations globally. This trend is more obvious today. Japan boasts a robust infrastructure—from transportation to energy to telecommunications—and is considered an ideal hedge against the political instability, or “country risk,” that is prevalent in other Asian countries. Expected cost reductions fueled by the weakened yen have led many companies to believe that now is the time to enter the Japanese market.

Common Traits of Failure

Despite the promising situation, some businesses have not achieved the expected results. A survey conducted by the Ministry of Economy, Trade and Industry revealed that struggles with talent acquisition and Japan’s unique nature, such as the preference for homogeneity, caused them to fail. These reasons may seem plausible, but what really happened?

Unsuccessful businesses did not do well because they brought their own cultures and practices to Japan without attempting to adapt. Japanese people have a hard time accepting foreign capitalists who expect them to adapt to their methods, and this often leads to a sense of discomfort among local talent. Integrating into Japanese culture is essential.

Key to Success

Since 2019, there have been numerous changes to Japanese labor law, with more revisions planned for the coming years. Workforce management has become more complex, with legislation impacting work time management, payroll processing, and social security-related filings.

For example, Article 36 of the Revised Labour Standards Act (Overtime Work and Working on Holidays) requires companies to submit a dedicated form to the Labour Standards Bureau for each employee who is expected to work on a holiday or longer than the prescribed hours.

The maximum working hours per day, month, and year must be agreed upon by the employee and employer. The so-called “36 agreement,” which specifies the agreed conditions, is one of the most important documents in workforce management. Yet, it is often treated as a piece of routine paperwork, filed without a thorough review. In fact, we have seen many cases where this paperwork has not even been submitted.

Regulatory authorities place considerable emphasis on proper filing. Failure to comply may result in disclosure of the company’s name. Penalties may also be levied, including up to six months in prison or a maximum fine of ¥300,000.

To succeed, foreign-invested companies must understand how the Japanese labor system functions and how to ensure workforce management compliance. Successful companies comply with the applicable laws and regulations in Japan and have implemented an effective talent strategy that is flexible and rooted in the region.

Given the complexity, it is best to outsource workforce management entirely to a group of specialists. While this may not seem like a distinguishable advantage over competitors, compliance is crucial for running a successful business. Securing reliable resources to handle these needs with confidence is the first step toward successful entry into the Japanese market.

Dayforce provides payroll and labor outsourcing services through Workcloud, which offers:

• One platform: supports payroll, attendance, social insurance, year-end adjustment, and onboarding management.
• Excellent user interface and system scalability: intuitive user interface (UI) does not require manuals and allows for additional development.
• Bilingual support: all pages have the same UI in English and Japanese.
• Timely response to legislation: enhancing features and ensuring compliance with newly enacted laws.

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Article supported by Actus HR Solutions, KK

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For more information and to learn how Dayforce Workcloud can help your business, visit https://dayforce.co.jp/contact.

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