Eiji Miura and Adrian Castelino-Prabhu 7/18/24 Eiji Miura and Adrian Castelino-Prabhu 7/18/24

Tax Surge Ahead

An increase in taxes on high-net-worth individuals is on the horizon. Here's how it will impact business and real estate owners beginning January 1, 2025.

How an upcoming income tax increase will impact high-net-worth individuals and business owners.

Presented in partnership with Grant Thornton

A new measure to be introduced in 2025 will increase taxes on high-income individuals. With the effective income tax rate set to rise to 22.5 percent or higher, business and real estate owners who plan to realize gains from the sale of real estate or stocks should be aware of the impact on their taxable income after January 1, 2025.

Income tax in Japan consists of aggregate taxation on certain types of income. These include employment income, business income, and real estate income. The total from each type is summed and taxed at progressive rates. The national income tax rate ranges from five to 45 percent (plus 10 percent for local taxes).

Income from the transfer of real estate, and some financial income, is subject to separate taxation. Income from the transfer of real estate (long-term holdings) and stocks is taxed at a flat rate of about 15 percent (plus five percent local tax).

This can give rise to a phenomenon where the portion of total income derived from the transfer of real estate and stocks increases while the actual overall tax rate decreases, thus lowering the effective income tax burden for high-income earners. From the viewpoint of a fair taxation system, the tax burden rate will be raised to 22.5 percent (for the national tax portion), and possibly higher for incomes above a certain level.

How It Works

First, the standard income amount is calculated by totaling the amount of income (both aggregate assessment income and separate income) for which a tax return is filed each March and adding financial income that is not included on the tax return. This includes income where the withholding tax suffered is treated as the final liability, such as dividends from listed stocks, small dividends from unlisted stocks, and income from special accounts.

Special accounts are those which the taxpayer has selected to hold listed stocks. The dividend income, as well as income from the transfer of listed stocks, suffers withholding tax at the source. This is treated as the final liability for these types of income, so they are not included on an income tax return.

Next, the standard income amount is multiplied by 22.5 percent (national tax) after deducting the special deduction (¥330 million). If the total exceeds the regular tax amount, the difference will be levied as additional tax due.

In addition to those who plan to sell real estate or stocks, individuals with high financial income from special accounts will be affected by this amendment.

Even for non-residents of Japan, the tax increase will apply to transfers of real estate located in Japan and transfers of Japan-sourced stocks.

Corporate owners and major investors who plan to sell their companies, individuals who plan to sell their real estate, and high net worth individuals who have large amounts of financial income are advised to understand the impact of this tax increase and consider how to respond.

For more information, please contact Grant Thornton Japan at info@jp.gt.com or visit www.grantthornton.jp/en

Disclaimer: Opinions or advice expressed in the The ACCJ Journal are not necessarily those of the ACCJ.

Rahm Emanuel 7/4/24 Rahm Emanuel 7/4/24

Happy Independence Day 2024!

As Americans around the world celebrate the nation’s 248th birthday, the Fourth of July provides a chance for those of us in Japan to reflect on what has already been a historic year for US–Japan ties.

A special message for ACCJ members from US Ambassador to Japan Rahm Emanuel

As Americans around the world celebrate July Fourth, the day provides a chance for those of us in Japan to reflect on what has already been a historic year for US–Japan ties. Prime Minister Fumio Kishida’s state visit to Washington in April, the first by a Japanese prime minister in nearly a decade, marked a high point in our two nations’ long relationship, with numerous announcements of cross-border investments and collaboration.

With economic security directly linked to national security, it is paramount that the United States and Japan leverage their respective strengths to cooperate in the development of critical and emerging technologies and the diversification of supply chains.

As next-generation technologies such as artificial intelligence (AI) power the future of the global economy, initiatives like the $110 million AI partnership between four top universities in the United States and Japan, announced during the state visit, will allow us to be at the forefront of a field that is fast becoming embedded in every area of business and life.

Japan’s ambition to become a global high-tech and digital hub of research and innovation was given a boost by the announcement of investments in the country’s digital sector from Microsoft ($2.9 billion), Google ($1 billion), and Amazon Web Services ($15 billion).

“With so much of the world digitally interconnected, it is imperative that our secrets are kept safe, our privacy and data protected, and our supply chains secured.”

Amid the country’s digital transformation, cybersecurity has become a priority. With so much of the world digitally interconnected, it is imperative that our secrets are kept safe, our privacy and data protected, and our supply chains secured. During my recent trip to Fukuoka, we launched the US–Kyushu Cybersecurity Partnership Initiative. Bringing together leading US and Japanese technology companies with partners in civil society, law enforcement, and academia, the initiative is designed to strengthen the cybersecurity ecosystem in an area of Japan that is becoming critically important to the global economy.

While longstanding partners in space exploration and research, the United States and Japan are collaborating in every area of this flourishing sector. Decades after the Apollo program, the United States is preparing to return to the moon. The Artemis program will see the United States and Japan join forces on this momentous project, with an American astronaut once again stepping onto the lunar surface, this time accompanied by a Japanese astronaut. The coming years promise to be ones full of “giant leaps” in space science and human exploration.

Meanwhile, Japan continues to be the No. 1 investor in the United States, with $775 billion in direct investments. This confidence was reflected in decisions by major Japanese companies to expand operations or build new facilities across the United States. The likes of Toyota, Honda Aircraft, Daiichi Sankyo, and UBE all deepened their presence in North Carolina, Ohio, and Louisiana, respectively, with millions of dollars of commitments to those local communities and economies. The investments are also a vote of confidence in both US manufacturing capability and the skills of US workers.

“None of our efforts would be possible without the underlying people-to-people ties … We are fortunate to have committed partners in the American Chamber of Commerce in Japan.”

As climate change wreaks havoc across the world, the United States and Japan remain steadfastly committed to accelerating energy transition while promoting clean energy. We have entered a new era where renewable energy is a major driver of investment decisions. The next challenge for Japan is deploying renewable energy at scale, but regions such as Hokkaido, where natural resources are plentiful, provide boundless opportunities for US energy companies already established in the field.

Unlike fossil fuels, which are subject to the unpredictability of world events and authoritarian regimes, renewable energy is clean, secure, and the employer of tomorrow.

None of our efforts would be possible without the underlying people-to-people ties. To lay the foundation for the next generation of US–Japan relations, we announced new educational endowment initiatives to support scholarships for high school and university exchange students. Together with our established Fulbright and Mansfield programs, these will inspire and inspirit the future custodians of our special relationship.

We are fortunate to have committed partners in the American Chamber of Commerce in Japan (ACCJ). What we accomplish together with the US–Japan alliance over the next year will shape the future of the Indo-Pacific region—and the world—for decades to come.

I wish all our ACCJ friends and partners a very happy Fourth of July.

Disclaimer: Opinions or advice expressed in the The ACCJ Journal are not necessarily those of the ACCJ.

Julian Socher 6/27/24 Julian Socher 6/27/24

May 2024 Event Highlights

View a collection of photos from the ACCJ’s May 2024 events.

From left: Alternative Foreign and Direct Investment (AFDI) Committee Chair Paul Lee, ACCJ President Victor Osumi, Director-General of the Office of Foreign Direction Investment Promotion at the Cabinet Office Mitsuru Myochin, and Special Adviser Jennifer Rogers are seen together after the AFDI event on May 27 at Tokyo American Club.

The American Chamber of Commerce in Japan hosted a wide variety of events in May. Among these were:

How Intensified US-China Strategic Competition Is Reshaping Indo-Pacific Economic Interdependence
Preparing for the AI Revolution: Executive Business Briefing with Joe Hart, Dale Carnegie President and CEO
Breakfast in the Boardroom: Breaking Barriers in Japan’s Corporate Leadership
International Spring Meet and Greet in Kobe
The 33rd ACCJ/NIS Chubu Walkathon
PMDA’s International Vision in New Midterm Targets
Promoting FDI in Japan: A Discussion with Mitsuru Myochin, Director-General, Office of FDI Promotion, Cabinet Office
IBM’s Compliance Landscape: Building a Culture of Trust and Integrity in a Global Organization

Here are some of our favorite highlights.

Julian Socher 6/12/24 Julian Socher 6/12/24

2024 DC Doorknock

During the 2024 DC Doorknock, ACCJ delegates met with leaders in Washington, DC, to discuss security, economic, and strategic partnerships.

The 2024 ACCJ DC Doorknock delegates gather in front of the US Capitol.

From June 3 to 6, American Chamber of Commerce in Japan (ACCJ) leaders made their visit to Washington, DC, as part of the chamber’s annual DC Doorknock visits. These trips are an important part of the ACCJ’s advocacy efforts and strengthen US–Japan relations.

ACCJ President Victor Osumi was joined by Special Advisor Steve Briggs, Governor Hans Klemm, Chairman Christopher LaFleur, Executive Director Laura Younger, and Bank of America's Tamao Sasada.

Julian Socher 5/28/24 Julian Socher 5/28/24

A Bishop Scholar’s Journey

As his time as the first Bishop Memorial Scholar draws to a close, we sit down with Matthew Trani to learn about the experience and how he hopes to maintain his ACCJ connections.

As his internship ends, Matthew Trani shares impressions of the ACCJ and a message for future recipients.

Following the tragic deaths of Bill Bishop, his wife Izumi, and their daughter Sophianna on Christmas morning 2022, the American Chamber of Commerce in Japan (ACCJ) and the United States–Japan Bridging Foundation came together to honor their legacy. Launched in July 2023, the Bishop Family Memorial Scholarship Fund brings US students to Temple University, Japan Campus, where Bishop was a lecturer and board member. It also provides an internship at the chamber.

The ACCJ Journal interviewed the first recipient, Matthew Trani, last December, two months into his internship. As his time as a Bishop Memorial Scholar draws to a close, we again sat down with Trani to learn about the experience and how he hopes to maintain his ACCJ connections.

How do you feel about your internship ending?

Odd, because it almost feels like I’m leaving the community that I’ve been attached to—almost to a point of dependency—for the past eight months. There aren’t many places where you can have a working relationship and be able to just casually talk to people in Japan as a foreigner. That feeling hasn’t changed since our first interview.

How will you maintain your ACCJ relationships after you leave?

A lot depends on if I can convince my new company to become a member. If that were to happen, then I would potentially be back within a relatively short time.

But I think I can still connect regardless, as I’ve met as many members outside the chamber as I have through the chamber; they’re all in the same circles. When I get invited to somebody’s house, there will be a professor from Temple there, or someone from Tokyo American Club or the embassy. The network is so tight that they’re never more than one connection away.

Did making connections remain your number one goal?

A little bit. The priority did change from the beginning of the year. Making connections was great, but I needed a job to continue living here. A lot of the companies to which I was thinking of applying are ACCJ members, but I needed to figure things out on my own, which I did. The biggest difficulty is switching from a student visa to a work visa. I was very lucky to find a company that had the patience to do that.

Now, it should be a lot easier to use those connections in the future. So, I would say my goal didn’t change, but now that I’ve achieved my secondary goal, I can go back to my primary goal, which is to continue making and maintaining connections.

Beyond connections, what did you gain most from this experience?

I probably wouldn’t have had the chance to work in a corporate environment where I interacted with so many executives all at once. It’s kind of [remarkable] seeing somebody where it’s like, “Oh, you’re the CEO of Bloomberg Japan, which is the same company my dad works for in New York.” But this is someone that my dad would not usually be able to talk to. And it’s very different having Victor Osumi, as the president of Delta in Japan, saying hi to you and being on a first name basis.

Matthew Trani with ACCJ Executive Director Laura Younger

Where were you most involved at the ACCJ?

That changed over the course of the year. When I started, I was going to a lot of events and getting most of my networking connections early on. Then it shifted to more back-office work, and I worked a lot in Membership and we did some assignments on the competitive advantage of the ACCJ. That project took time to flesh out and get it to how we wanted it for the board.

On the whole, I definitely preferred the administrative work, with the exception of spreadsheets. I think with networking and helping at events it becomes much of the same routine, but when you deal with administrative materials, you can think a lot more critically. I really like jobs in which you can think deeply and try to solve problems.

What was your favorite event?

I learned so much from attending committee meetings. Often, I would think, “I didn’t know that, but that’s very interesting.” Or they would discuss things I’ve noticed in Japan but didn’t have the opportunity to say out loud.

We were at a meeting of the Tourism and Hospitality Committee and they were talking about how Japanese people aren’t going abroad, so domestic airlines are empty. Typically, it’s Japanese people who take those airlines, while foreigners take airlines from their home country.

It’s really crazy that a lot of the time you don’t have the opportunity to voice things like that, but the committees do so and work toward resolving those issues through advocacy papers and other things.

What would you tell future Bishop Scholars?

This is the best opportunity in Japan for a college student, one you never imagined you’d get. That’s what it was for me; I never expected that I would have the opportunity to do this during my time in Japan, and I never planned around it when I originally booked my study abroad. You can’t plan on where you’re going. I would say to all the Bishop Scholars who come after me, I’m sure you probably feel the same, so just roll with it and see where this opportunity takes you.

Trani completed his internship with the ACCJ in late April and is expected to begin working in Japan in mid-June, after having graduated from Hofstra University in late May.

Julian Socher 5/16/24 Julian Socher 5/16/24

April 2024 Event Highlights

View a collection of photos from the ACCJ’s April 2024 events.

ACCJ President Victor Osumi, CEO Forum members, Young Professionals Forum leaders, and speakers from the Learning from Executives event after the CEO Forum x YPF Collaboration event at the Otemachi One Tower on April 24.

The American Chamber of Commerce in Japan hosted a wide variety of events in April. Among these were:

Navigating Cybersecurity Staffing Challenges in Japan
It’s a Small World: A Multinational Networking Event
Marketing Teams that Drive Transformation: Lessons from Panasonic Connect
Ten Points on Business Dinner with Jim Weisser
Earth Day 2024
ACCJ/NAJAS Business Leaders Series with Steve Briggs, Kraft Heinz president for Northeast Asia
Law Enforcement and Foreign Residents: A Look at the Tokyo Bar Association Study
Learning from Executives Series (CEO Forum x YPF Collaboration Event)

Here are some of our favorite highlights.

Vo Thi Thom 4/26/24 Vo Thi Thom 4/26/24

ISA 600 Explained

The International Federation of Accountants has updated the International Standard on Auditing 600 (ISA 600), and the revised standard went into effect on December 15, 2023. What are the advantages and disadvantages of the revisions when it comes to group audits?

What are the pros and cons of the latest update to the International Standard on Auditing?

Presented in partnership with Grant Thornton

Firstly, a group audit refers to an audit of consolidated financial statements where the parent company and its subsidiaries are viewed as a single economic entity or “group.” It is often conducted by the parent company’s auditor, known as the group auditor, and encompasses the financial information of the parent company and its subsidiaries. As the group auditor will provide an opinion on the consolidated financial statements, it is essential that they are satisfied with the work completed by component auditors or local audit teams.

The group audit is necessary because businesses often operate through different legal entities and across different geographical locations. For an accurate view of the group’s financial situation, auditors must assess financial statements at both the parent and subsidiary levels and follow the standards established by the relevant auditing bodies.

International Standard on Auditing 600 (ISA 600) (Revised), Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors) deals with special considerations that apply to a group audit, including when component auditors are involved. The standard is effective for audits of group financial statements for periods beginning on or after December 15, 2023, and aligns with recently revised standards which emphasize the assessment of risk, including ISQM1 and ISA 220 (Revised) and ISA 315 (Revised 2019). There is increased emphasis on the responsibilities of auditors relating to professional skepticism, planning and performing a group audit, two-way communications between the group auditor and component auditors, and documentation.

The changes are intended to:

Encourage proactive management of quality at the group engagement and the component levels
Keep the standard fit for purpose in a wide range of circumstances and in a developing environment
Reinforce the need for robust communication and interactions during the group audit
Foster an appropriately independent, challenging, and skeptical mindset on the part of the auditor

ISA 600 (Revised) sets out the responsibilities of the group auditor for providing the audit opinion on the group financial statements, including components such as subsidiaries, associates, joint ventures, and non-controller entities.

Advantages

Viewed from the component auditor’s side, relying on a variety of useful information regarding management’s rationale from the group auditor can reduce the risk of material misstatement and detection risk when conducting audit components.

One significant change is the introduction of the risk-based approach as a framework for planning and performing a group audit engagement. This means more focus on identifying and assessing the risks of material misstatement and performing further audit procedures in response to the assessed risks. The group auditor develops initial expectations and, based on these, may involve component auditors in risk assessment procedures, as these individuals may have direct knowledge and experience with the entities or business units that could be helpful in understanding the activities and related risks.

According to the standard, the group engagement partner may take responsibility for directing and supervising component auditors in different ways, such as:

Discussing identified and assessed risks, issues, findings, and conclusions
Participating in the closing or other key meetings between the component auditors and component management

The discussion between the group auditors and component auditors provides the opportunity to understand how and where the entity’s financial statements may be susceptible to material misstatement due to fraud. This is done by considering external and internal factors affecting the group that may create an incentive or pressure for group management, component management, or others to commit fraud. The discussion between group engagement partners and other key management team members also provides a chance to identify risks of material misstatement relevant to components where there may be impediments to the exercise of professional skepticism. In other words, the involvement of the group auditor enhances the effectiveness of component auditors.

ISA 600 (Revised) strengthens and clarifies the importance of two-way communications between the group auditor and component auditors as well as various aspects of the group auditor’s interaction with component auditors. However, there are many types of restrictions that may exist, such as on access to people and information (e.g., component management, those charged with governance of component, component auditors) as well as audit documentation.

Viewed from the group auditor’s side, the revised standard provides guidance on ways to overcome restrictions. The group auditor may be able to visit the location of the component auditor or meet with the component auditor to review their audit documentation. They may also be able to review the relevant audit documentation remotely when not prohibited by law or regulation and request that the component auditor prepare and provide a memorandum that addresses the relevant information.

Disadvantages

The application of ISA 600 (Revised) may also bring some downsides.

According to the requirements, the role of group auditor increases, as does the workload of component auditors. The group auditor may involve component auditors to provide information or perform audit work to fulfill the requirements of the standard.

Component auditors can be—and often are—involved in all phases of the group audit. The group auditor shall take responsibility for the nature, timing, and extent of further audit procedures to be performed, including determining the components at which to perform further audit procedures. This responsibility is demonstrated through meeting the requirements of the consolidation process and considerations when component auditors are involved.

Communication

ISA 600 (Revised) includes enhanced documentation requirements and application material to emphasize the link to the requirements of ISA 230 and other relevant ISAs. The required documentation includes:

Basis for the group auditor’s determination of components
Basis for the group auditor’s determination of the competence and capabilities of component auditors
Documentation of the direction and supervision of component auditors and the review of the work
Additional considerations when access to audit documentation is restricted

The strength and clarity of the importance of two-way communications between the group auditor and component auditors in the standard are likely to result in more work for the group engagement team. This is particularly true regarding the enhanced responsibilities in evaluating the component auditor’s communication and the adequacy of their work, the sufficiency and appropriateness of audit evidence obtained, and communicating with group management and those charged with governance of the group. References in the standard to the definition of “engagement team” includes the group auditor and component auditors.

As mentioned, the group auditor will involve component auditors and clarify the instructions for the risk-assessment procedures. However, in practice, there are some instructions from the group auditor that may not be suitable for component auditors, and this can lead to some aspects of the instructions not being effective.

These changes to the standard will take time to implement, comply with, and complete for both the group auditor component auditor sides.

Generally, both sides should make sure that they understand the new requirements and that audit methodologies are updated accordingly and in a timely manner. They should also reassess the models being used for considering component materiality and aggregation risk to determine whether they are still appropriate.

For more information, please contact Grant Thornton Japan at info@jp.gt.com or visit www.grantthornton.jp/en

Julian Socher 4/18/24 Julian Socher 4/18/24

Assisting Business

With an emphasis on teamwork the ACCJ Sales Support Alliance supercharges the chamber experience by bringing together members across industries to share connections, knowledge, and help one another build business success.

The Sales Support Alliance supercharges ACCJ members’ networking opportunities with monthly meetings and unselfish teamwork.

In many sports, one player basks in all the glory of a score while another enjoys lesser accolades for their assist. Ice hockey spreads the wealth a bit more with a secondary assist—the pass before the pass that leads to the goal—and all three players earn a point in their stats.

This emphasis on teamwork is the same idea that forms the foundation of the American Chamber of Commerce in Japan (ACCJ) Sales Support Alliance (SSA). Founded in 2019 by Sales Development Committee Co-Chairs Eric Wedemeyer and Kjell Yadon, the SSA is designed to add value for committee members and guests by setting up the assists that lead to a business win.

Wedemeyer and Yadon describe their committee as horizontal rather than vertical as it serves ACCJ members across industries and company types. This broad reach amplifies the network effects and helps the SSA “supercharge everybody’s ACCJ experience.”

As an organization built on community and networking, the lifeblood of the ACCJ is serving up opportunities to its members. The SSA infuses this with the unselfish teamwork that leads to long-term success. Members introduce each other to new contacts in the hope that those fellow members will find business, even if there is no direct benefit to themselves—the pass before the pass that leads to the goal.

“In a networking situation, when you meet a new person at an ACCJ event, someone you know could very well be of use to the person you’re talking to, it becomes a richer experience if seen as an opportunity to introduce not just yourself, but also your contacts,” explained Wedemeyer. “If that results in a valuable business connection between two other people, that’s great. It’s a nice thing to do, it feels good, and the introduction will get paid back over time.”

J.R. Best, an SSA regular, found himself on the receiving end of an assist a couple of years ago. “David Clement connected me with the athletic director at [the American School in Japan],” said the co-founder of Hawaii-based Sports Camp of America (SCOA). “His daughter ended up being a junior counselor at SCOA’s summer camp, and she was fantastic.”

“In a networking situation, when you meet a new person at an ACCJ event, someone you know could very well be of use to the person you’re talking to, it becomes a richer experience if seen as an opportunity to introduce not just yourself, but also your contacts.”

SSA meetings regularly feature alternating small-group sessions and large-group discussions where attendees refine their self-introductions, sharpen their listening skills, and practice introducing other members to the group. This creates a feedback loop that allows attendees to reflect on their message and understand if their main point is coming across. For Japanese salespeople, it’s a chance to build confidence presenting in English in a comfortable, supportive, informal setting.

“By explaining my business to the people around me, I am able to look at myself objectively—what I am doing now, what I want to do, whether I am overreaching,” said Naoki Hioka, president of translation and localization company MedicaLingual, Inc. Hioka feels he has been able to identify issues and find the best path forward for his business thanks to SSA meetings.

Another feature of SSA meetings is the “Expert Corner,” where participants share knowledge and tips on a sales topic of interest. Recent topics have included using generative AI as a sales tool and post-Covid changes in lead generation strategies. Because SSA members represent so many different industries and job descriptions, these discussions generate an illuminating range of perspectives.

The name Sales Support Alliance might lead some to assume that only salespeople stand to benefit from the meetings, but Wedemeyer and Yadon stress that this is far from the truth. More than half of attendees are not in formal sales roles.

“Everyone is selling something,” said Yadon. “Many of our attendees are running their own companies or are responsible for promoting a company function internally. Sales skills always come in handy.”

Kreston ProWorks Business Development Manager Luc Swamika shared how he has benefitted from an introduction made at an SSA meeting. “Through the program, we forged a strong, lasting partnership and developed a mutually beneficial referral system that’s driving value for both our companies. Most importantly, we’ve built a relationship of trust and deep understanding with a valued partner.”

“SSA meetings regularly feature alternating small-group sessions and large-group discussions where attendees refine their self-introductions, sharpen their listening skills, and practice introducing other members to the group. ”

SSA meetings are open to non-committee-members, and usually half of attendees are first-timers. But once in the door, many get hooked and thrive on repeat attendance, building relationships over time.

Wedemeyer and Yadon describe the SSA as a momentum machine. Month to month, the results may look piecemeal, with people coming in with different sales targets and networking expectations. But over time, the SSA’s connections multiply as members get to know one another and build the trust necessary to make new introductions with confidence.

That momentum changed a bit during the coronavirus pandemic. Like most groups, productivity waned as meetings were forced to go virtual. Now, the Sales Development Committee is rebuilding the SSA as the in-person gathering it was before Covid-19. With more and more members joining, setting up the assist and scoring the winning goal is within everyone’s reach.

The next SSA meeting will take place on May 22 in the American Room at Cambridge Innovation Center. If you enjoy the personal relationship building of business, or just want to get together to chat, the SSA is waiting for you.

Julian Socher 4/11/24 Julian Socher 4/11/24

March 2024 Event Highlights

View a collection of photos from the ACCJ’s March 2024 events.

ACCJ leaders and inspirational mentors Sarah Bader, Ginger Griggs, Elizabeth Handover, Deborah Hayden, Azusa Koike, Mari Matthews, and Catherine Ohura shared lessons on career-building and more at an event honoring International Women’s Day on March 13 event at Tokyo American Club.

The American Chamber of Commerce in Japan hosted a wide variety of events in March. Among these were:

The Evolving Healthcare Landscape: Trends in the Use of Medicines and Customer Engagement in Japan
Executive Perspectives on the Post-Covid Workplace
Japan Fintech Festival x ACCJ FinTech Panel
Miracles through Partnership: Improving Japanese Healthcare through Collaboration and Entrepreneurship
Speed Mentoring to Celebrate International Women’s Day
How Can Successful M&A Unlock the Potential of Companies in Japan?
The Likability Advantage
The Future of Television: Streaming and Disruption in the Media Industry
Cybersecurity Lessons from Ukraine
Business Strategy Series: From Nada to the World: Learning from Hakutsuru Shuzo's Overseas Strategy

Here are some of our favorite highlights.

Julian Socher 3/7/24 Julian Socher 3/7/24

February 2024 Event Highlights

View a collection of photos from the ACCJ’s February 2024 events.

The Women in Business and Kansai Diversity & Inclusion Committees held the WIB Learn from Examples Series: Unveiling the Power of DEI in Corporate Success at Nippon Boehringer Ingelheim (NBI) Co., Ltd.’s Kobe Pharma Research Institute on February 15.

The American Chamber of Commerce in Japan a hosted wide variety of events in February 2024. Among these were:

From Import Niche to Mainstream Hit: How Haribo Goldbears Cracked Japan’s Convenience Stores and Reached No. 1
Entrepreneurs vs. Corporate Giants: A Look Ahead at Japan’s Economic Future
WIB Learn from Examples Series: Unveiling the Power of DEI in Corporate Success at Nippon Boehringer Ingelheim Co., Ltd.
Unlocking Sustainable Futures: A Deep Dive into Carbon Accounting
Fireside Chat with Hiroyuki Otsuka, founder and chief executive officer of Newton Investment Partners (former deputy head of Carlyle Japan)
Chubu Children’s Fund Charity Lunch
Regulatory Innovation in the Cloud: Accelerating Critical Therapies to Citizens of the World
Kansai CEO Series: Canvas to Corporation: Unleashing the Power of Art in Business

Here are some of our favorite highlights.

C Bryan Jones 3/5/24 C Bryan Jones 3/5/24

Losing the Lag

Rob Claar, CEO and founder of healthcare investment, development, and commercialization platform HekaBio joins us to discuss how overseas healthcare companies can gain regulatory approval in Japan and put their innovations in the hands of Japanese doctors and patients.

Rob Claar’s quest to bring lifesaving innovations to Japan

Rob Claar became interested in healthcare at an early age. Watching his father work on the government-program side of insurance and talking to him about the industry, Claar came to understand some of the issues surrounding public and private systems. But as he entered Yale University to study art history, he did not envision a career helping healthcare innovators from the United States and elsewhere bring their lifesaving drugs and devices to Japan. A twist of fate, however, led Claar to become a champion of Japanese doctors, working to connect them with international peers and innovation.

Ahead of his presentation at a March 13 luncheon hosted by the American Chamber of Commerce in Japan Independent Business and Healthcare Committees, the HekaBio K.K. founder shares his journey from childhood in Detroit to Tokyo, where he helps companies gain regulatory approval for healthcare innovations.

An extended version of this interview is available on The ACCJ Journal Podcast or by streaming from the audio player above.

How did you get involved in healthcare innovation in Japan?

Claar: I came to Japan basically out of cultural interest. This was in 1987. I was 23, had just graduated from college, and decided that I wanted to see Asia. I was interested in the culture, art, and language, particularly of Japan.

I forced myself not to come to Tokyo to begin with. I thought Tokyo would be an easier place to survive with English, and I wanted to push myself to learn Japanese as quickly as possible. So, I landed in Nagoya and immersed myself in studying the language. I thought I was going to be good enough at Japanese after one year to move on to my next destination and call my Japan experience a success. That didn’t happen.

I was studying Japanese at the YWCA in Nagoya, and it was going very well. But, as you know, it takes a lot of time. After one year, I was still not where I wanted to be. I gave myself another half a year, and I started really enjoying being in Japan and speaking Japanese.

Then I got a job as a Japanese-to-English translator for Brother Industries and moved into their dormitory in Nagoya. They were setting up manufacturing operations in Malaysia and elsewhere, and I was translating manufacturing and line instructions. That was interesting and a good experience but, once I got good enough at Japanese, I decided it was time to either go home to America and start the rest of my academic career or go up to Tokyo and see what I could do. I decided to move to Tokyo and was lucky enough to get hired by a think tank called Sanwa Soken.

They were essentially a research arm for the government. The day after I joined, a huge project came in from the Ministry of Health. I was put on that project and got to learn all about the healthcare system. I traveled around Japan, met doctors, and began to understand how serious they are about patient care. I really started to fall in love with the idea of the Japanese healthcare system [and] how a national single-payer system can work wonderfully.

What did you discover that led you to want to help innovators?

Claar: As I met doctors, I began to understand their struggles. They wanted to be considered among their international peers as studying, researching, and being able to speak in an international forum on the greatest innovations worldwide. But their frustration was that their research was one generation too late in many areas. I became aware of the innovation lag and wanted to see what I could do to make an impact.

I realized that Japanese doctors struggle to get their hands on up-to-date innovations from around the world. There’s a lot of talk about drug lag and loss, and the same thing is happening on the device side, where innovations that are getting approved in the United States and Europe are not making it to Japan.

There are a few reasons for this, but I thought that if I could focus on how to help these very sincere, wonderful doctors in Japan, then that was going to be a way for me to potentially make a career here and have an impact on society.

So, I left Sanwa Soken to start my own company, Junicon. We would go around and interview doctors, and we found a way to sell those results to large pharmaceutical and medical device companies in Japan, Europe, and the United States.

I also started spending my spare time helping doctors translate their papers from Japanese into English so that they were better able to speak at international conferences. It was a minor thing, but being helpful to Japanese doctors is a way that I got into things and maintained those relationships.

What’s stopping overseas companies from entering the Japanese market?

Claar: Small companies are doing more and more of the true innovation around the world, and they have no bandwidth to start thinking about Japan. So, how do we get more innovative companies to think about Japan? That’s what we’re really focused on at HekaBio, and that’s my personal interest.

Japan is far away, and these companies don’t really know what goes on here. They have this outdated image that Japan is very hard to get into and the regulatory process is super opaque. They’re never going to get regulatory approval on their own, or they’re never going to form the right commercial relationship. I think this is a really outdated image of Japan that many companies have. We’re trying to help solve that. Our doctors and their patients are waiting for these innovations. We want to see if we can bring them in and arrange the capital.

The Japanese government is doing a great job right now with new programs that they’re introducing. They’re making clinical trials easier to get started and operate in Japan, both on the drug and the device sides. They’re welcoming first-in-human studies to be done in Japan, which has not been the case until recently. They’ve eliminated the requirement to have a Japanese principal investigator on international studies. And they’re also offering pricing incentives for programs that get submitted in Japan within a certain number of days or months of the submission in the United States. In some cases, we’ve had an approval in Japan before the United States, even though we started at the same time.

How many companies have you helped get regulatory approvals in Japan?

Claar: More than 50, including at our former subsidiary unit, which was a clinical research organization called Vorpal Technologies. We’re very proud to have been involved in getting those launched and into the market.

What is that process like?

Claar: At the beginning, we do market research. We want to confirm that the doctors who we want to be behind the program are really behind it. We’ll find out who has done the presentations and who has published how many papers in that area. Who’s in the medical society? Who’s on the board? All these different things. The worst thing we could do is partner with an overseas company that doesn’t have the health economics and an appreciation for the Japan system in mind.

Once we do that, and we understand the strength of the clinical data that the company has produced overseas—and whether the Pharmaceuticals and Medical Devices Agency (PMDA) will accept it as valid in Japan—then we start talking with the PMDA to understand the regulatory process [for the specific innovation]. Once we get buy-in from the regulators, then we go forward with the clinical trial. If no in-Japan clinical trial is required, which is often the case for devices, then we can just go forward to the submission and review period, which typically takes 12 months.

Sounds straightforward. Is there something else holding back innovation from overseas?

Claar: What remains is the question of reimbursement price. If companies have no idea until the very end what the reimbursement price is going to be, then it becomes difficult for them to want to invest the time and money. So, that’s part of the upfront market research that we do. What does a comparative product look like in terms of reimbursement? What can you expect, based on your experience in overseas markets, in terms of the ability for the Japanese health insurance system to pay?

If there’s no comparative product, if it’s a new category, then you submit your cost accounting information. The PMDA really wants to see everything in a very transparent way.

What we would like to see in Japan is more clarity. New categories, where nobody knows what the pricing is going to be, is a situation in the market that most people have to deal with. I think that if the government were able to give better guidelines up front, in a consultative process, and you could go to the Ministry of Health, Labour and Welfare and tell them what you are thinking about, more of the issues around the drug and device lag and loss could be solved. But they won’t give you anything in terms of a response with any responsibility associated with it. They’ll listen and tell you yes or no, but their answer is not a promise.

Japan’s healthcare system is the best in the world. I fully believe that. And we all have the responsibility to make sure that Japan’s great healthcare system can survive. We know that the government is fearful of healthcare costs growing. They’re looking for ways to cut the costs of [things such as] long-selling drugs, devices, and in vitro diagnostic tests. But we would like to encourage them to think more long term about some of the things that can be done in terms of digital health solutions for early diagnosis of particular conditions.

What opportunities do you see for ACCJ member companies? Can they replicate the success you’ve had?

Claar: Absolutely. And I hope so. I think we’ve come up with a great business model, and we’re happy for anyone to copy it, because we think it really works for bringing innovations into Japan.

HekaBio is focused, for the most part, on pharmaceutical and device interventions for acute illnesses, hospital treatments, and serious diseases. What we’re not working on are things such as chronic diseases, which are a huge burden on the healthcare system. [Monitoring] chronic diseases with at-home digital health [tech] would also work in our business model.

If somebody wanted to exactly copy our model and go right into exactly what HekaBio is doing in serious acute disease identification and treatment drugs and devices, then be my guest. We’ll be happy to have them [replicate] our business model with no worry.

But there are so many opportunities. For example, if they want to do something different, there are many new molecular entities, particularly for rare diseases. The PMDA has a list showing the status of those that are [only] available elsewhere. So, there’s no development risk, really, because you know that it works. It’s been approved in either the European Union or the United States, but it’s not available in Japan yet. Take one of those for a rare disease, buy the rights for Japan, and get it developed. You wouldn’t even have to build a big organization with your own infrastructure here. You could be a one-person company, get the rights, and then have a contract research organization do the clinical trial and be the in-country clinical caretaker on your behalf. Get it all through and then sell it to a pharmaceutical company once it’s done. That’s another business that could be not only very lucrative, but interesting and of societal benefit for Japan.

Jayson Fernandez 2/22/24 Jayson Fernandez 2/22/24

Internal Controls, Sustainability, and IFRS

With two new sustainability standards in effect for annual reporting as of January 1, 2024, companies may need to reassess their internal controls to ensure they are compliant with disclosure requirements.

How two new sustainability standards impact reporting and disclosure, and what companies should consider to ensure they are compliant.

Presented in partnership with Grant Thornton

On June 26, 2023, the International Sustainability Standards Board (ISSB) unveiled its first-ever standards for sustainability disclosure. Designated International Financial Reporting Standards (IFRS) S1 and S2, they focus on general sustainability- and climate-related disclosures.

As demand grows from investors, regulators, customers, and other stakeholders for companies to disclose their sustainability practices and impact on the environment and society, these standards could help with the assessment of a company’s long-term sustainability, its ability to manage risks and opportunities, and to compare companies across industries.

IFRS S1, General Requirements for Disclosures of Sustainability-related Financial Information, requires companies to disclose financial information about their sustainability-related risks and opportunities that is useful to primary users of general-purpose financial reports in making decisions related to providing resources to the company. IFRS S2, Climate-related Disclosures, requires companies to disclose the same related to climate.

As this information could affect the company’s cash flow, access to financing, or cost of capital, the requirement for reporting and transparency might influence strategy, objectives, and decision-making processes.

With these new sustainability standards taking effect for annual reporting periods beginning on or after January 1, 2024, companies should reassess their systems of internal controls to comply with the disclosure requirements.

The table below shows internal controls that companies may need to consider.

  
    Internal Control Areas
    Points to Consider
  
    Data collection, verification, and management
    · Accuracy and reliability of sustainability data for reporting

· Manage the increased volume of sustainability data
  
    Risk assessment and management
    · Controls and processes to identify, assess, and manage risks and opportunities

· Consistency with its strategic decisions and operations
  
    Technology infrastructure
    · Invest in new technology and IT controls
  
    Training and awareness
    · Invest in employee training and awareness programs

· Policies and procedures to evaluate competencies
  
    Governance
    · Establish authority and responsibility
  
    Integration with financial reporting
    · Communication and monitoring from management and those charged with governance

· Facilitate external audit
  
    Stakeholder engagement
    · Inclusion of processes for engaging with stakeholders

Internal Control Areas	Points to Consider
Data collection, verification, and management	· Accuracy and reliability of sustainability data for reporting · Manage the increased volume of sustainability data
Risk assessment and management	· Controls and processes to identify, assess, and manage risks and opportunities · Consistency with its strategic decisions and operations
Technology infrastructure	· Invest in new technology and IT controls
Training and awareness	· Invest in employee training and awareness programs · Policies and procedures to evaluate competencies
Governance	· Establish authority and responsibility
Integration with financial reporting	· Communication and monitoring from management and those charged with governance · Facilitate external audit
Stakeholder engagement	· Inclusion of processes for engaging with stakeholders

Data Collection, Verification, and Management

The IFRS standards and reporting promote transparency and accountability regarding sustainability- and climate-related risks and opportunities. By requiring the collection and validation of data, a company can ensure accuracy and reliability for reporting.

Doing so will require robust internal controls similar to those used in financial reporting, and internal controls may need to be updated to manage the storage, access, and protection of a larger volume of data. As sustainability reporting is often required by regulatory bodies or industry standards, integrating sustainability metrics into internal controls helps ensure compliance and reduces the risk of penalties and legal issues.

Risk Assessment and Management

As sustainability reporting involves identifying, assessing, prioritizing, and monitoring risks and opportunities related to sustainability and climate, internal controls must include processes to effectively assess, manage, and mitigate risks. It is also key to ensure that those charged with governance have considered trade-offs associated with the risks and opportunities.

Sustainability reporting also highlights long-term sustainability goals and opportunities. Therefore, aligning internal controls with these goals can ensure that strategic decisions and operations are consistent with sustainability objectives.

Technology Infrastructure

Companies may need to invest in new technology and IT controls to manage sustainability data, especially if they are transitioning to digital reporting platforms. Information systems should be able to capture internal and external sources of data related to sustainability and climate risks and opportunities.

Training and Awareness

Companies may need to invest in employee training and awareness programs to ensure that all personnel understand the sustainability goals and the importance of reporting, and can carry out their internal control responsibilities. Companies may need to monitor the contributions of employees to these objectives. Processes may include policies to determine whether appropriate skills and competencies are available or will be developed to oversee strategies designed to respond to risks and opportunities related to sustainability and climate.

Governance

Sustainability reporting may necessitate changes in corporate governance to ensure that sustainability considerations are integrated into strategy and decision-making processes. Internal controls should reflect shifts in governance by having a governance body (which may include a board, committee, or equivalent) or individuals responsible for oversight of risks and opportunities related to sustainability and climate. Companies should also consider updating policies and procedures to reflect the responsibilities of those charged with governance and management.

Integration with Financial Reporting

Aligning the processes for sustainability and financial reporting requires careful coordination and internal controls to ensure that both are accurate and consistent. Policies and processes should consider how, and how often, those charged with governance and management are informed about sustainability- and climate-related risks and opportunities and decisions on significant transactions. Companies may also need to establish controls and policies to facilitate external audits of their sustainability disclosures to ensure that the data, processes, metrics, and targets adhere to reporting standards.

Stakeholder Engagement

Internal controls may need adjusting to address the broader set of stakeholders associated with sustainability reporting compared with traditional financial reporting. Sustainability reporting can lead to increased stakeholder scrutiny and engagement, and effective internal controls can help manage these interactions and ensure that stakeholder concerns are addressed, and the company’s reputation maintained. Communication methods should take into considering the timing, audience, and nature of the engagement.

As the ISSB is currently developing these sustainability standards, we expect that additional standards might be promulgated to address the needs of the stakeholders. Regular reviews and updates of internal controls, policies, and procedures are necessary to adapt to changing sustainability reporting standards and evolving practices.

Companies focusing on sustainability could drive innovations and efficiencies in their processes that lead to cost reductions. Internal controls can monitor and optimize these changes to ensure that they are implemented effectively and align with the company’s strategies, objectives, and decision-making processes.

For more information, please contact Grant Thornton Japan at info@jp.gt.com or visit www.grantthornton.jp/en

Julian Socher 2/8/24 Julian Socher 2/8/24

2024 ACCJ Shinnenkai

ACCJ members and guests ushered in the Year of the Dragon in the Imperial Hotel’s Hikari Room.

Members and guests ushered in the Year of the Dragon in the Imperial Hotel’s Hikari Room.

Photos by Miki Kawaguchi/LIFE.14

From left: ACCJ President Victor Osumi, Deputy Chief Mission Raymond Greene, Chairman of Japan–US Business Council and Vice-Chair of Keidanren Jun Sawada, and ACCJ Executive Director Laura Younger.

The American Chamber of Commerce in Japan (ACCJ) held its second in-person shinnenkai since the start of the Covid-19 pandemic, ushering in the Year of the Dragon at the Imperial Hotel on January 26. Some 270 guests joined the ACCJ to kick off the new year with the kagami-biraki—the ceremonial cracking open of a sake barrel—followed by networking with fellow members, friends, and officials from the Japanese and US governments.

ACCJ President Victor Osumi gave opening remarks and shared his vision of fostering partnership, embracing progress, and bridging the future with excellence. He then led the kagami-biraki alongside ACCJ Executive Director Laura Younger, US Embassy Deputy Chief of Mission Raymond Greene, and Jun Sawada, chairman of the Japan–US Business Council and vice-chair of Keidanren (the Japanese Business Federation).

As we continue our celebrations to mark the ACCJ’s 75th anniversary, we look forward to working with our members and partners to advance US-Japan relations and make a positive impact on the international business environment in Japan.

C Bryan Jones 1/31/24 C Bryan Jones 1/31/24

Charting the Course

The ACCJ Journal sits down with ACCJ President Victor Osumi to learn more about how his career took flight, how he became involved with the chamber, and the path he sees ahead as he takes the helm for 2024.

ACCJ President Victor Osumi shares his thoughts on 2024 and the chamber.

Photos by Shelley Mae Photography

January 1 marked a change in leadership for the American Chamber of Commerce in Japan (ACCJ) as Victor Osumi, managing director and president of Japan operations for Delta Air Lines, Inc., was elected to guide the chamber in 2024.

Having served as a vice president last year, Osumi joined the board as a governor in January 2021 and has played an active role in chamber advocacy through the DC Doorknock visits to Washington and Diet Doorknock meetings with Japanese lawmakers.

The ACCJ Journal sat down with the former pilot at Delta’s office near Shiba Park to learn more about how his career took flight, how he became involved with the chamber, and the path he sees ahead as he takes the helm as president.

Tell me a bit about your background.

Growing up in a diverse, dual-culture environment, I spent most of my early years in Los Angeles, but I went to high school in Florida. My father was a Japanese expat. That’s what brought me to the United States. I also spent some time in school in Japan. I had dual citizenship, but Japan requires you to choose one by age 22. So, when I was 21 and joined the US Air Force, I chose to keep my US citizenship.

What led you to become a pilot?

I always had a passion for flying. After high school, I went to the Florida Institute of Technology and majored in aviation management, with a focus on flight technology and aeronautics. That led me to get my private pilot license, commercial pilot license, and flight instructor license.

I joined the Air Force because of this passion. I also thought that I could get a lot of flight hours, and that could create a path to joining a US airline as a pilot. But when my physical condition made it more difficult for me to fly, I got into management. Since I couldn’t fly, I decide to leave the Air Force.

Where did that course change take you?

When I shifted away from aviation, I joined a hotel company. That gave me experience in hospitality and an understanding of tourism, what it takes to be the best of the best when it comes to customer experience and service. I thought it would be for just a couple of years, but I ended up spending 27 years in the hotel industry.

That really gave me the backbone of where I am today. I gained knowledge through the financial side, customer service, and food and beverage. I also sat on the owner’s side of the property, which gave me additional insight into what a private equity company does, how they operate, and how they make decisions on investment in different countries.

Now, here I am back where my original passion lies: aviation and airlines. It took me a long time—almost three decades—but it came full circle.

How did you become involved with the ACCJ?

When I was assigned to Japan in 1998, I thought I would be here for five years and then I would go back to the United States. But I found that this country is where I belonged. At that time, most of the management at global hotel companies were American expats. They needed someone who could understand, speak, read, and write Japanese. And I thought that working in Japan for a global company gave me more opportunities for career advancement.

Ever since, either directly or indirectly, I have always been involved in chambers. I worked at Hyatt, then briefly with the IHG Group, and then twice at Marriott, which is a global, US-based company.

Being part of the ACCJ has given me a great opportunity to network and expand people-to-people relationships in the community.

Are there other career benefits you’ve felt from ACCJ involvement?

In the airline industry, we really value our relationship with the government, anywhere we go. I think it is the same for a lot of chamber members. They expect to have some type of advocacy dialogue, whether it’s with the US Embassy, the US government in Washington, or the Japanese government. We had a great opportunity in December during our Diet Doorknock to meet with lawmakers and officials to voice our mission and what we’re trying to accomplish.

And, of course, there is the education aspect. There are so many committees and forums at the ACCJ, and these offer great opportunities to learn more about a wide range of areas, from investment and finances to healthcare and pharmaceuticals—almost any area of business you can imagine. This has been a great experience for me.

Why did you decide to run for president?

It’s obviously a big commitment and will take a lot of my time. It’s a team effort. It’s not just me. At Delta, we value the presence of chambers commerce of commerce in each country. Particularly for Japan, the Atlanta headquarters recognized the importance of being part of the ACCJ and the value in me serving as president.

Of course, I have big shoes to fill following Om [Prakash]. But again, he and I are both ex-military, so he always said that I was second in command. Last year, when there were some times when he was not able to be present, I took the controls in a way. And having had that opportunity really helps smooth this transition for me, I feel.

Why is 2024 a special year?

It is the year of the dragon, but not just any dragon. Each of the 12 animals in the Chinese Zodiac has five types associated with the elements. This year’s dragon is the wood dragon, called kinoetatsu in Japanese. It only comes around every 60 years. The last time was 1964, when the Olympics were held in Tokyo, the shinkansen began operations, and I was born.

Kinoetatsu means this is a year when the energies of growth and adaptability associated with the element of wood in Chinese Wu Xing philosophy combine with the dragon’s qualities of power, prosperity, and transformation.

What do you see as the key initiatives and advocacy points for 2024?

My vision for the ACCJ this year centers on three main areas:

Fostering partnership
Embracing progress
Bridging the future with excellence

The Indo-Pacific Economic Framework for Prosperity (IPEF) is an area I feel is especially important. It is key not only for Japan but the Asia–Pacific region, and the ACCJ must continue to be part of the discussions around IPEF.

Of course, diversity, equity, and inclusion will remain important, as will sustainability and cross-border investment.

One I see as especially big, as it impacts all the others, is digital transformation. Not just “going digital” as some people might see it, but the many aspects that can impact industries. In transportation, for example, one of the biggest issues is the free flow of data across borders. This would allow us create things such as paperless passports, with face-recognition technology used to ensure security. But there are still issues to resolve so that the US side has full confidence in Japan’s data security.

And as we talk about economic security, I think that data is going to be one of the biggest parts to bringing about economic security. It has tremendous value. But we need an agreement between the Ministry of Economy, Trade and Industry and the US Department of Commerce to make sure that we have cleared out the trust issues that impact digital transformation.

How important has US Ambassador Rahm Emanuel been to ACCJ advocacy?

We were missing an ambassador for almost three years. We always have great representatives and support from the US Embassy, but when Ambassador Emanuel arrived, he hit the ground running. He has been a tremendous help to the ACCJ and Japan. We really needed somebody like him to represent the United States in the Japanese community. I have very high respect for Ambassador Emanuel.

When he arrived, two years into the Covid-19 pandemic, there was pressure from many areas and organizations to get the borders reopened. The ACCJ played a part in making this finally happen, and Ambassador Emanuel and his staff were key. The chamber was able to speak up and serve as a conduit between our members and the Japanese government, and also the US government to get their help as they pushed from their end.

Ambassador Emanuel also visited Chubu last July in support of efforts to resume flights from the region to the United States. He met with ACCJ members from our Chubu Chapter and area leaders that included Aichi Governor Hideaki Ohmura, Nagoya Mayor Takashi Kawamura, and Riki Ishizuka, president and chief executive officer of the Chubu Centrair International Airport.

These are not only examples of his effectiveness, but how both the US and Japanese governments value the ACCJ’s voice.

What else would you like to say to members?

As we continue our celebrations to mark the ACCJ’s 75th anniversary, one thing I would like to ask is for everyone to help grow our membership. Word of mouth is very important. So, if there is someone you feel is a potential candidate for membership, please let me know.

Related to this is finding ways to make the chamber even more appealing. Advocacy, education, networking, and dialogue with the US and Japanese governments are important. If you have ideas for making these more effective, I would love to hear them.

Let’s work together to make 2024 a great year and the ACCJ’s presence bigger than ever before.

Julian Socher 1/22/24 Julian Socher 1/22/24

2023 Leaders and Volunteers of the Year

The ACCJ honored the 2023 ACCJ Leaders and Volunteers of the Year at the December Leadership Forum. Learn more about the contributions each has made to better the community and contribute to the ACCJ mission.

The ACCJ recognizes exceptional contributions from across its three chapters

The 2023 Leaders and Volunteers of the Year with ACCJ leaders at the December 19 Leadership Forum, which honored their accomplishments. Photo: C Bryan Jones

Each year, the American Chamber of Commerce in Japan (ACCJ) honors members who have shown extraordinary dedication. We congratulate the 2023 ACCJ Leaders and Volunteers of the Year for their dedicated time and effort to the betterment of the community, and their contributions to the ACCJ mission, whether through philanthropy, advocacy, or engaging events.

Leaders of the Year

**Barbara Hancock**

Chair of the Charity Ball Committee for the past 15 years, Hancock kept fundraising a top priority during the Covid-19 pandemic through her management of virtual opportunities. In 2023, she devoted the same resources and energy to ensure that the spectacular Diamond Anniversary Charity Ball was a resounding success, overseeing every aspect from start to finish.
Hancock’s longtime dedication has not only led to outstanding events year after year, but has helped the ACCJ raise millions of yen for organizations working to improve the lives of those in need, including children and the homeless. She truly embodies the spirit of giving back to the community.

Ryan Watson (Kansai)

As co-chair of the Kansai Young Professionals Forum, Watson played an indispensable role in the group’s, from the initial proposal to the successful launch event in July. His efforts have provided new opportunities for Japan’s next-generation leaders to network and engage with the ACCJ.

He has also been a strong leader of the Healthy Urban Gardening, or HUG, project, which hosts hands-on community workshops while raising funds for Food Bank Kansai. This initiative has profoundly impacted the community by fostering sustainable gardening practices and addressing food insecurities for a greener, healthier Kansai.

Watson’s energy and dedication have created new opportunities for members to participate and get involved in the ACCJ and the wider Kansai community.

**Yuji Suzuki (Chubu)**

As co-chair of the Chubu External Affairs Committee, Suzuki organized a pivotal ACCJ meeting with US Ambassador to Japan Rahm Emanuel, industry executives, and Aichi government officials to discuss the importance of resuming direct flights from Chubu Centrair International Airport to the United States. He was directly responsible for ensuring that Nagoya Mayor Takashi Kawamura and Aichi Governor Hideaki Omura attended.
Suzuki’s endeavors have set the stage for an agreement to reinstate the route and were therefore integral to enhancing the Chubu region’s economic growth and strengthening US–Japan relations.

Volunteers of the Year

**Yoshiko Zoet-Suzuki**

In support of the Women in Business Committee, Zoet-Suzuki worked tirelessly throughout the year to prepare information and materials for a crucial advocacy viewpoint on the impact of Japanese parent-teacher association demands on parents. She spent countless hours researching media reports and government websites, as well as coordinating input to bolster the comprehensive viewpoint. Zoet-Suzuki is also responsible for translating materials for an upcoming ACCJ member survey on this issue, and translating the ACCJ privacy policy into Japanese.

**Kanayo Okai (Kansai)**

Okai was responsible for planning and executing several Kansai Business Programs Committee (BPC) events. She invited high-level speakers and came early to support the staff and connect with participants, always with her trademark positivity. In July, she served as emcee for the Kansai CEO Series event with Karl Hudson of Marriott, and was instrumental in the success of the event.
Furthermore, Okai shares an important perspective during the monthly committee meetings, and her motivation is an inspiration to both BPC leaders and members alike. Thanks to her, the committee will maintain the momentum generated by the successful events she has spearheaded.

**Zan Diamantis (Chubu)**

One of the Chubu Chapter’s most active and enthusiastic participants, Diamantis is not only participates in the Chubu Walkathon but also serves on several committees. He is responsible for co-organizing multiple events, including a grassroots cherry blossom-viewing fundraiser in April, resulting in new and exciting opportunities for engaging with ACCJ members.
Diamantis is an integral part of the ACCJ Chubu community, and we are grateful for his involvement and many contributions.

Jesper Koll 1/5/24 Jesper Koll 1/5/24

The Year Ahead 2024: Forecasts and Surprises

Qualitative predictions are based on a combination of experience and intuition. Like an inspired jazz solo, they deliver a genuine surprise that you did not expect but cannot live without once you’ve heard it. What unexpected riffs does 2024 have in store for Japan? Jesper Koll shares 10 twists and turns that could make for an interesting Year of the Dragon.

Ten twists and turns that could make for an interesting Year of the Dragon.

Forecasting is both an art and a science. Quantitative forecasts are based on probability models that cannot escape the assumption that the future will be a replay of the past. Qualitative predictions are based on a combination of experience and intuition. Like a beautiful Bach sonata, the former follows a predictable logic. Like an inspired jazz solo, the latter delivers a genuine surprise that you did not expect but cannot live without once you’ve heard it. The only certainty we have is that 2024 will bring both—existing trends evolving and genuine surprises.

I wish a happy, prosperous, and healthy New Year to you! And now here are my forecasts and possible surprises for 2024:

1. Japan’s inflation and growth outpace the United States.

We will see a full decoupling of the US–Japan business cycle in 2024 as America faces a sharp slowdown due to the 2023 US rate hikes cutting down both consumption and capital expenditure. In contrast, Japan’s economy will stay surprisingly strong, as neither the Bank of Japan nor the Ministry of Finance tighten.

2. Japan’s M&A boom goes global.

With the US recession creating opportunities to buy US companies and assets at significant discounts, Japan’s merger and acquisition activity will expand. Surprise: a major Japanese financial institution will buy a US bank, insurer, or payments company.

3. Japan’s MBO/LBO boom accelerates.

Spurred by pressure from shareholders and stock exchange, as well as low debt financing costs, management buyouts and leveraged buyouts will continue. Surprise: 2024 may be the first year when more companies go private and delist from the stock market than new startups going public and listing via IPOs.

4. Japanese CEOs step out of their comfort zone.

Rather than just relying on in-house R&D teams, Japanese CEOs will start to buy startups for future growth. One reason for US corporate dynamism is the aggressive use of “outside” innovation to supplement, improve, or disrupt “inside” businesses. Ninety percent of US startup exits are acquisitions, while in Japan, 90 percent are IPOs. Mark my words: Japan’s new generation of CEOs are taking risks and are not afraid to try and make 1 + 1 = 3 … or 4.

5. Japan’s corporate governance goes global.

So far, Japan’s corporate governance reform has been one-way, importing US “best practices” into Japanese boardrooms. A Japanese CEO appointed to a Wall Street firm’s board would be proof that Japanese governance has truly become world class. A positive surprise, yes. But if US multinationals are serious about multi-stakeholder governance, there is much to learn from Japan’s corporate leaders.

6. Japan launches its own Defense Advanced Research Project Agency.

Rising defense spending demands a fundamental rethinking of collaboration among universities, scientists, private enterprise, and public policy. Without fundamental change, the risk is that high defense spending will bring little or no positive benefit to Japan’s global competitiveness or domestic economy. The sooner Japan’s elite can agree on the rules and institutional governance for dual-use technologies and their scalable commercialization, the greater the certainty of both private and public spending on defense yielding positive multipliers.

7. Japan deregulates home-helper visas.

The combined problems of a growing labor shortage, a falling birthrate, and more Japanese women aspiring to professional careers cannot be solved without outside help for families. A very positive surprise would be if Japan followed the Hong Kong and Singapore model. There, professional couples can sponsor home helpers, with proper supervision and governance by local authorities. This is a pragmatic solution to reverse the declining birthrate and to reduce the runaway costs for public social and medical support for children and the elderly.

8. China synthetic biology moonshot delivers domestic food security.

China is the world’s largest importer of food. Dependence on the global food supply is the single biggest challenge for China’s leaders. Public and private investment in synthetic biology and the development of lab-grown and tech-assisted food is huge. The question is not if, but when, a supermassive scale-up solution will be announced by China’s biotech leaders. A science-based breakthrough on food-security for China—and thus the world—would supersize China’s credentials as the rightful global leader she aspires to become.

9. Elections shift alliances.

While all eyes are on the 2024 US presidential election in November, the vote in India in April or May could bring a big negative surprise. If Prime Minister Narendra Modi loses reelection, the impact could be far-reaching—not just for the Quad alliance comprising Japan, the United States, Australia, and India, but also the leadership of the emerging alliances around the Global South.

10. Germany wins Euro 2024.

Sunday, July 14, will bring the final of the UEFA European Football Championship. I am German, so naturally, I support Team Germany. But they have been playing shockingly poorly, and their performance has only gotten worse after they lost to Japan in the 2022 World Cup. So, the biggest positive surprise for me in 2024 would be Germany actually winning the Euro 2024 championship—especially since the final is played on the French national holiday, Bastille Day.

The ACCJ Charity Ball Committee 1/1/24 The ACCJ Charity Ball Committee 1/1/24

Shining Bright

ACCJ members and guests gathered at the Hilton Tokyo in Shinjuku on December 2 for one of the chamber’s largest annual events. And this edition offered a chance to celebrate the chamber’s 75th anniversary while also raising funds for charity.

Diamond Charity Ball celebrates the ACCJ’s 75th anniversary.

Members of the American Chamber of Commerce in Japan (ACCJ) and guests gathered at the Hilton Tokyo in Shinjuku on December 2 for one of the chamber’s largest annual events. And this edition, the Diamond Charity Ball, offered a chance to celebrate a major milestone—the chamber’s 75th anniversary—while also raising funds for charity.

The exceptional venue, amazing culinary offerings, spectacular entertainment, stellar selection of fine wine and spirits, and expansive silent and live auctions and raffle helped us achieve our goal.

Jesper Koll and Nahoko Bolden emceed, and performers included Marcus Pittman and the High Roller Horns (featuring the Q Factor G.N.P.) and Wakiri, a group of passionate artists comprising drummer and dancer Akira Katogi, shamisen player and composer Etsuro On, and Shunsuke Kimura, a Japanese composer who plays flute and tsugaru-shamisan. ACCJ intern and Bishop Scholar Matthew Trani also shared his singing talents.

“Success would not have been possible without the invaluable support of our generous sponsors, enthusiastic attendees, and the many individuals who took part in our online raffle and auction.”

Together with the ACCJ staff, the Charity Ball Committee—Barbara Hancock, Kevin Naylor, Ryan Watson, Tomomi Fujita, Sonia Dhillon Marty, and William Titus—worked diligently to organize the event.

But success would not have been possible without the invaluable support of our generous sponsors, enthusiastic attendees, and the many individuals who took part in our online raffle and auction.

The committee extends its deepest gratitude to our sponsors and the ACCJ community for making a big difference in our ability to help those in need. We are grateful to each and every person involved, and extend a huge thank you to all!

Photos: Media Sense K.K.

Legacy of Giving

The Charity Ball is not only one of the biggest events on the annual social calendar, it is also one of the ACCJ’s most important fundraisers. The money raised during the event is key to the chamber’s ability to support the community and help those in need.

The Charity Ball Committee works closely with the ACCJ Community Service Advisory Council to activate this effort with the generous participation of member companies and the membership at large. The annual Charity Ball is a time when we come together to share our success in Japan with each other and, at the same time, generate funding for charities qualified by a rigorous process.

This year we are proud to support the Mike Makino Fund for the Homeless, Food Bank Kansai, and the ACCJ Community Service Fund. We will also contribute to charities that help at-risk children, families, children’s hospitals and homes, and programs for these children.

“The ACCJ has a well-rounded mission that includes not only networking, information sharing, and advocacy, but also constructive engagement with the community.”

Together with the ACCJ staff, the Charity Ball Committee—Barbara Hancock, Kevin Naylor, Ryan Watson, Tomomi Fujita, Sonia Dhillon Marty, and William Titus—worked diligently to organize the event.

But success would not have been possible without the invaluable support of our generous sponsors, enthusiastic attendees, and the many individuals who took part in our online raffle and auction.

President’s Circle Sponsor

Platinum Sponsor

Aflac

Bronze Sponsors

AIG Companies in Japan

Chevron International Gas Inc. Japan Branch

Prudential Holdings of Japan, Inc.

Silver Sponsor

Boeing Japan K.K.

Coca-Cola (Japan) Co., Ltd.

Mercury Sponsors

Morgan, Lewis, & Bockius LLP

NRK Sogo Kikaku Co. Ltd.

Prize Sponsors

Diamond

Air Canada

CIC Toranomon G.K.

Delta Air Lines

Hakuba Hotel Group

Herman Miller Japan, Ltd.

Ichijiku

KPG Hotel & Resort

Kraft Heinz Japan

Marriott International, Inc.

MediaSense K.K.

Ratko Back Painting

The Peninsula Tokyo

United Airlines, Inc.

Vega Project K.K.

Ruby

Grand Hyatt Tokyo

Hilton Nagoya

Park Hyatt Tokyo

There’s No Accounting for Taste

Sapphire

Amway Japan G.K.

ELC Japan K.K. (Estée Lauder)

Fukushima Garo

Good Morning Tokyo Co., Ltd.

Hakkaisan Brewery

Moegi

Simon Dalby Art

Tokyo American Club

Emerald

Andaz

Asian Tigers Japan

Conrad Tokyo

DevilCraft

Eastern Carpets

Elana Jade

Godiva Japan Inc.

grapeoff

Hilton Osaka

Hilton Tokyo

Hilton Tokyo Bay

InterContinental Osaka

Japan Design Collective

Jupiter International Corporation

McLarty Associates

Minamiaoyama7chome Gyoseishoshi Office

pearls.jp

Riedel Japan

Shop Japan

Takata Co., Ltd.

The Strings by InterContinental Tokyo

Temple University Japan Campus

Yellow Toes Art Gallery

Florentyna Leow 12/23/23 Florentyna Leow 12/23/23

Serene Shrines and Sauruses

As a tourist destination for inbound visitors, Fukui Prefecture often gets short shrift, especially compared with more glamorous neighbors such as Kyoto and Ishikawa Prefectures. But this may start to change when the Hokuriku Shinkansen adds Fukui, Tsuruga, Awara Onsen, and Echizen Takefu Stations to its pit stops in March 2024.

Fukui Prefecture offers crafts, fossils, relaxation, and so much more.

Presented in partnership with Fukui Prefecture
Photos by Florentyna Leow

As a tourist destination for inbound visitors, Fukui Prefecture often gets short shrift, especially compared with more glamorous neighbors such as Kyoto and Ishikawa Prefectures. But this may start to change when the Hokuriku Shinkansen finally adds Fukui, Tsuruga, Awara Onsen, and Echizen Takefu Stations to its pit stops in March 2024.

For now, Fukui’s sightseeing spots remain relatively quiet and uncrowded, making it an ideal road-trip destination for those with a little more time to spare. Our visit this fall takes us around the cities of Katsuyama, Awara Onsen, and Echizen—all of which yield rich rewards for the visitor willing to rent a car and take the wheel.

Mossy Matters

Gently sloping and meandering, the stone path to the main building of Heisenji Hakusan Shrine is flanked by towering cedars. It is serene, save for birdsong; few visitors are here on a weekday morning. The mid-morning sunlight filtering through the canopy casts dappled patterns of light and shadow on the velvety green moss blanketing the ground, yesterday’s rain heightening the dewy verdure. It’s so absurdly beautiful that I almost want to curl up on the moss and never leave.

However, if you ask historian and resident head priest Hiraizumi Takafusa, the gorgeous mosses on the shrine precincts aren’t the be-all and end-all of these grounds. “It’s not like we promote this place with its moss. We supposedly have over 200 types of moss,” he says. “I can recognize only 20 of the varieties.” According to Hiraizumi, the history of the shrine and the surrounding area are the true highlights.

Located on the edges of Hakusan National Park in what is now Katsuyama City, Heisenji Hakusan Shrine was established as a Buddhist temple in 717 by a monk named Taicho. For centuries, it operated as both Shinto shrine and Buddhist temple—as was common practice prior to the Meiji Restoration—and served as a base for pilgrims making their long, arduous way on foot to the sacred mountain of Hakusan.

At its peak, thousands of monks lived on the precincts, which were about 10 times the size of the present-day sprawling shrine complex. It’s mind-boggling to consider. It will surprise no one familiar with Japanese temple architecture that the complex burned down in the 16th century and was subsequently rebuilt.

The formal separation of Shintoism and Buddhism in the 1870s meant that it became a Shinto shrine first and foremost. However, its name points to vestiges of its Buddhist ties from centuries past—it is a rare instance of a Shinto shrine whose name ends in -ji, meaning “temple.”

The shrine has much to offer history buffs, especially when paired with a visit to the more famous Eiheiji Temple, about 40 minutes away by car. But even without a deep interest in Japanese history, the beauty of this shrine complex alone is mesmerizing enough to warrant an hour or two spent strolling around the grounds. I could happily spend that long peering at feathery mosses, watching long-legged spiders and beetles navigate the moss-furred stumps and stone steps.

The shrine is best visited in spring, fall, or rainy season. Winter is beautiful, too, but perhaps impractical for a visit given the snowy conditions.

Coming of the Raptors

Ask the average Japanese person what Fukui is famous for, and there’s a high chance they’ll say dinosaurs. You could point to any number of reasons for this. For example, many of the dinosaur fossils discovered in Japan were found here. Six new species were identified in (and named after) Fukui: Fukuisaurus tetoriensis, Koshisaurus katsuyama, Fukuiraptor kitadaniensis, Fukuititan nipponensis, Fukuivenator paradoxus, and Tyrannomimus fukuiensis. And, Katsuyama City is home to the world-class Fukui Prefectural Dinosaur Museum (FPDM), which is also an institution dedicated to ongoing dinosaur research and education.

But really, the main reason everyone associates Fukui with dinosaurs is that the area leans hard into being the self-styled Dinosaur Capital of Japan. Dinosaur motifs are everywhere in Fukui: themed restaurants, hotel rooms, playgrounds, stationery, hand towels, and even regular road signs. You’ll find huge dinosaur animatronics outside Fukui Station (they sport Santa hats in winter) and Dr. Raptor on a bench inside. One of the prefectural mascots is a green dinosaur, Rapt-kun, named after the fukuiraptor. I should stress that all this is mostly delightful, rather than gimmicky.

Unsurprisingly, the FPDM is beloved by locals and out-of-prefecture visitors alike. It’s so popular that you’ll see a flashing sign board en route to the museum asking whether you’ve reserved your tickets, which tend to sell fast during summer vacation and major public holidays. The museum even fills up some weekdays.

In truth, I’ve never been interested in dinosaurs, but the FPDM does an excellent job of conveying just how cool these ancient animals are. The main hall is an impressive start to the museum. In a domed exhibition space crammed with dioramas, fossils, and full-body dinosaur skeletons—10 of the 50 specimens on display are actual fossils—I spent a fair amount of time staring at the all-too-realistic T-Rex animatronic glaring ferociously at all of us. If this is what our prehistoric ancestors had to contend with, I am happy to be living in modern times.

As befits one of the world’s leading dinosaur museums, the FPDM has clearly invested in competent translators: the English-language captions are well done, if a tad dry. Plus, it’s fascinating to see how giant raptors evolved into tiny birds over millions of years. It’s well worth spending a few hours here, even more so if you have kids in tow. A shopping spree at the museum’s 100-percent dinosaur-themed gift shop is optional but thoroughly encouraged.

A Bath of One’s Own

Located in what feels like the middle of nowhere (although just a short drive from the Tojinbo Cliffs), Awara Onsen is one of Fukui’s only hot spring towns of note, famous for its healing waters and local cuisine.

We spent the night at the historic ryokan Haiya, whose name translates to House of Ash, a tribute to the craftspeople who produced fine ash used in dyeing clothes worn by Kabuki and Noh theatre actors. The unintentionally amusing name notwithstanding—Uncle Roger would have a field day—Haiya is a ryokan I’d spend several nights in every month if I had the time and money.

Built in 1884, the inn sprawls over three buildings with a total of 43 rooms. The property retains its Meiji-era architectural trappings—along with modern updates like Wi-Fi and coffee machines—and is large enough that a map might almost come in handy for finding one’s way in the maze of winding corridors. All rooms in the original 1884 Shofuan Annex and the recently renovated Kangetsutei Suites, and most of the rooms in the Jurakutou Building, have traditional Japanese garden views.

According to the inn, the room assigned to me—Korin (光輪), meaning “halo” or “nimbus”—was named by Prince Takamatsu. I have no way of verifying this, but the name certainly suits the space with its high ceilings, intricate latticework on the sliding doors, tasteful tableware, 16 tatami mats of space (for up to six people), a private moss-covered garden, and outdoor cypress bath. Best of all, I have it all to myself. Perfect for pretending to be a wealthy writer on sabbatical.

Food and baths are the real draw at most ryokan, and Haiya is no exception. The kaiseki dinner was a leisurely, two-hour affair, a parade of little dishes showcasing freshly caught seafood from the Sea of Japan and produce from the nearby Sakai Plains.

Two highlights from dinner: One, a whole live abalone cooked jigokuyaki-style, or “hell-grilled,” right in front of you until it stops moving. Bouncy yet tender and ocean-fresh, this style of abalone is not for the squeamish. The other, okami’s sake purin, a creamy pot of custard made ever more beguiling with its undertones of boozy umami. To our dismay, this is not a year-round staple, but a seasonal dessert. The idiom “ichigo ichie,” or “for this time only,” has never felt so salient and cruel. (More reason to plan a return trip next October.)

But it’s Korin’s cypress bath I keep coming back to in my mind. Before I checked out, there was a moment where a shaft of sunlight pierced the gap in the bamboo screens in front of the bath just so, illuminating wisps of steam curling up from the surface of the hot water. There was something simple yet transcendent about all these elements coming together for a few minutes before the sun moved on.

The Pleasures of Pottery

In addition to crafts like making washi paper and knives, Fukui is also known for its pottery: Echizen-yaki, or Echizen ware. Notable for its understated coloring, and usually being fired sans enamel, this type of pottery centers on one of the Six Ancient Kilns of Japan, the others being Seto, Tamba, Bizen, Tokoname, and Shigaraki.

Echizen ware is, in fact, a recent term. According to the permanent display at the Echizen Old Kiln Museum, it was coined by the researcher Kuemon Mizuno and Fujio Koyama between 1942 and 1945 as a way to group a number of disparate pottery styles local to the region under a single categorical umbrella. Perhaps unintentionally, this seems to parallel the municipal mergers of the Meiji Era, where many villages and hamlets were amalgamated into new or existing cities.

Both the Old Kiln Museum and the Fukui Prefectural Museum of Ceramics (FPMC) next door have much to offer the ceramics lover by way of exhibitions and beautifully made pieces to add to one’s suitcase. There’s also a traditional teahouse and garden where you can sip on green tea from Echizen ware. But there’s nothing quite like getting your hands dirty to appreciate, on a visceral level, the craft that goes into a piece of pottery.

My visit to the FPMC included a workshop using the electric potter’s wheel. The task was to shape a vessel—anything I wanted, as long as it had a mouth. I had 30–90 minutes. As seems to be true of all craftspeople, ceramicists make their craft look easy when it is anything but. It’s more challenging than it looks to maneuver a solid, spinning hunk of clay. Too little pressure and nothing happens; too much pressure and all hell breaks loose. (Here’s a life lesson: never wear a nice white shirt when taking a ceramics workshop.)

Fortunately, there was a skilled staff member on hand to guide my hands and help fashion the clay into something vaguely presentable. Unless you’re a quick learner, it’s not possible to master the electric potter’s wheel in a single session. It takes practice and more than a little intuition. More saliently, using the wheel is hell on your lower back.

If your work primarily involves a computer, as mine does, it’s easy to forget the pleasures of creating something with your hands, no matter how messy or clumsy the result. Taking a ceramics workshop at a place like the FPMC is a great way to reconnect with the physical world. Reservations here are mandatory, particularly if you’d prefer instruction in English (there are only two English-speaking members on staff). For those living in Japan, they’ll fire and mail the finished piece to you for an additional fee.

Lustrous Lacquer

The Echizen Lacquerware Hall is not somewhere you’d chance upon unless you were looking for it. Located in Sabae City—these days more famous for spectacles than anything else—this unassuming building is all too easy to drive past. Of course, this would be a waste, since it’s a fine place to view superb examples of lacquerware, watch artisans make lacquer magic, shop for lacquerware, and even try out various types of lacquer art for yourself, from applying lacquer to plain wood or painting already-lacquered wood.

This was the final stop on our two-day tour; we were there for the chinkin experience. Briefly put, this involves carving a design onto a lacquered surface, applying a thin layer of lacquer into the engraved lines, then covering it with gold dust or leaf. You then take your finished work home. How difficult could this be?

As the saying goes, these were famous last words. After tracing a motif of your choice onto a lacquered surface—I foolishly chose a detailed crane drawing—you then use a spindly metal chisel to gouge out the lines you’ve drawn, scraping away from yourself in a single direction. Engraving is not at all like drawing; my lines were nowhere as precise as I wanted them to be. Those with fine motor skills will have a better time of it.

I had never thought much of lacquer as a craft, but I gained a newfound respect for lacquer artisans that day. Having tasted a little of what it’s like to carve a design, the exquisite details on the lacquerware on display at museums and exhibitions have taken on more weight and meaning. These days, my clumsily carved crane plate sits on my dining table, reminding me not to take for granted the craft behind beautiful handmade things.

Learn more and plan your visit …

Heisenji Hakusan Shrine
Fukui Prefectural Dinosaur Museum
Haiya
Fukui Prefectural Museum of Ceramics (Japanese only)
Echizen Lacquerware Hall

C Bryan Jones 12/23/23 C Bryan Jones 12/23/23

Japan Unlocked

Looking to enter the Japan market? Want to improve your existing operations? As part of Kreston Global, the world’s 13th-biggest accounting network and 10th-biggest in Japan, Kreston ProWorks helps companies establish a foothold in Japan.

Kreston ProWorks opens doors with local expertise and global reach.

Presented in partnership with Kreston ProWorks

Kreston Global, the world’s 13th-biggest accounting network in terms of revenue according to UK-based trade magazine International Accounting Bulletin (IAB), is now the 10th-biggest in Japan per the IAB, up one spot from the year before.

With 160 independent member firms and 25,000 experts across 750 offices in 115 countries, Kreston Global provides unparalleled access to a wealth of international resources and expertise.

There are three member companies in Japan. Two provide audit services and the third, Kreston ProWorks, offers a full slate of inbound accounting, payroll, tax, and corporate services.

Established in 2007 by Marek Lehocky, the firm has built a strong reputation as an indispensable partner for companies looking to enter the Japanese market. “Our mission is to make setting up and operating businesses—including immigration, accounting, payroll, labor, and tax compliance—as easy as possible in Japan, so our clients can focus on building their business,” Lehocky told The ACCJ Journal.

Full Slate of Services

Kreston ProWorks delivers a nimble team of bilingual experts with intimate knowledge of how processes in Japan differ from those in other countries. Specialists in inbound accounting, tax, payroll, and human resources, Kreston ProWorks offers a much wider range of services than other companies:

Company formation and corporate services
Employer of record (EOR)
Immigration and business license support
Legal and transactional support
Nominee representative
Virtual office services
Market entry and business consulting

EOR, for example, is especially helpful, as it allows companies to come in for a short time and deploy resources quickly to complete a specific project. It is also a way to test the waters when considering Japan market entry without investing in a full move.

“With all the requirements and steps involved, it can take at least seven or eight months before people can come into the country,” Lehocky said. “We can cut that to just three or four months with foreign employees and a few weeks with local hires.”

Local Knowledge Matters

Just as understanding the local market is key to a business’s success, so are local operations. While many companies provide services offshore, Kreston ProWorks does everything in Japan.

“Clients want to have closer proximity to Japan, because Japan is a black box of sorts, and they want to make sure that the people who are handling their operations actually understand the intricacies and nothing is being lost in translation,” Lehocky explained. “We act as our clients’ internal team of experts and ‘goalkeepers’ for each of the service areas that we provide. We stay on our client matters and drive the parts that we are in charge of so our clients can focus on other parts of their business. Communication and getting things done is a key to success.”

If you are interested in exploring market entry or are already here and wondering if you are doing everything the right way, Lehocky invites you to get in touch.

“Reach out,” he says. “We would be happy to arrange a time to introduce ourselves and get to know you and your needs. You always have alternatives.”

Get in touch today for a free consultation:
Carla Willmes, business growth and communications lead
cwillmes@krestonproworks.com
03-4520-5530 • www.krestonproworks.com

Robert Half 12/23/23 Robert Half 12/23/23

The Hunt for DX Champions

Despite being a nation renowned for assimilating advanced machinery and technology into everyday life, the reality of Japan’s IT workforce paints a very different picture. But Robert Half Japan is supporting clients undergoing digital transformation and is seeing promising progress.

Japan faces an uphill climb when it comes to digital transformation.

Presented in partnership with Robert Half

From left: Marcus Aakerholm and Lyndsey Hughes (Photo: Shelley Mae Photography)

Despite being a nation renowned for assimilating advanced machinery and technology into everyday life, the reality of Japan’s IT workforce paints a very different picture.

According to a survey of companies conducted by the Ministry of Internal Affairs and Communication, Japan’s information and communication technology (ICT) sector is falling short when it comes to digital transformation (DX). This is largely due to a lack of qualified technology talent. In 2018, there was a shortage of about 220,000 ICT workers, and the shortfall is expected to reach 450,000 by 2030.

At the same time, Japan’s economic landscape is experiencing a generational shift, influenced by new government policies and changing regulations designed to elevate the country to the global DX standard.

Slow Road to DX

Robert Half Japan supports clients undergoing digital transformation and is seeing promising progress.

“In many Japan-headquartered global companies, the pace of change has tended to be slow and incremental,” said Managing Director Lyndsey Hughes. “But this has started to shift over the past few years and momentum is building.”

“Even prior to Covid-19, we had started to see signs of large Japanese corporations incorporating their DX agenda into their corporate vision and hiring ‘disruptive’ senior executives from outside the organization—even from outside Japan—to expedite transformation,” he said. “It seems now there really is an appetite and a glimmer of commitment from corporate Japan to transform their global businesses.”

The 2022 IMD World Digital Competitiveness Ranking ranks Japan 29th out of 64 countries examined in terms of know-how, development of digital technologies, and preparedness to exploit digital transformation. Asian countries finishing ahead of Japan include South Korea (8th), Taiwan (11th), and China (17th).

Hughes noted that many companies have been stalling in their DX initiatives, often because they lack real commitment from the top, face resistance from middle management, or are short of know-how on how to manage global functions. They may also struggle to attract, and appropriately compensate, ‘new’ skill sets to implement the change.

DX touches every area of an organization, he explained, and while every company faces its own unique set of challenges, there are consistent themes that Robert Half is hearing from its customers. These include overhauls to human resources policies to adopt pay-for-performance compensation to attract specialized talent.

Robert Half is seeing companies start to take diversity, equity, and inclusion initiatives seriously, and many are ready to pay higher agency fees to prioritize the scouting of female talent as well as hiring, and even importing, more foreign talent. And while there is still a long way to go to embrace all types of diversity, at least the conversations have started, Hughes said.

In addition, large Japanese companies are beginning to move away from in-market IT to globally distributed IT functions that allow them to benefit from scale, respond more quickly to market changes, and mitigate cybersecurity risks.

There has also been a surge in the hiring of chief data officers to centralize data and analytics expertise, as well as breaking down data silos and harnessing the power of data across an organization.

Too many companies are entering uncharted DX territory, Hughes pointed out, and often lack the skills and expertise to deliver on such projects. This is where Robert Half and its business consultancy subsidiary, Protiviti, come in.

Helping Hand

“At Robert Half Japan, we have a strong focus on placing bilingual technology talent with foreign affiliates in Japan to bridge with their HQ, or to global Japanese firms looking to bridge their overseas subsidiaries,” explained Marcus Aakerholm, division director of business transformation. “As an enterprise, we have a unique capability to support DX initiatives in different ways, whether by placing permanent employees across various functions, specialist contractors to jump into different projects, or through Protiviti.

“In many cases, we offer a tailored and blended solution of outsourced consulting assignments combined with project contractors and permanent resources,” he added. “This allows us to respond flexibly to the fluid and diverse needs of our customers, across their global operations.”

Aakerholm has witnessed firsthand the unique market conditions affecting DX in Japan.

“A typical scenario for our team is assisting foreign-affiliated organizations that need to undergo a corporate-wide system update,” he said. “In these cases, the US office will send an internal team to implement the changes but, due to the unique market requirements here, their efforts are rarely implemented or understood by domestic teams. Our bilingual project managers and functional experts bridge that gap.”

Robert Half supports many Japan-headquartered clients that require bilingual talent with subject matter or technology expertise to interact with overseas subsidiaries.

In one example, Aakerholm’s team helped a global media company by bringing in a specialist consultant with the required language abilities, project management skills, and knowledge of system implementation to complete the introduction of finance modules of the Workday system.

Look Within

“When a company needs to evolve, it’s not just about bringing in new people,” said Hughes. “Organizations also need to create a culture of internal evolution so they can continue to adapt to changes in the market, customer needs, and so on.

“Generally, organizations think in functional silos, and those silos are often lacking a specific skill set,” he said. “But those skill sets may exist elsewhere in the organization. There are all sorts of capabilities floating around in every company, perhaps in a different function or a different market, so there isn’t necessarily a need to rush out and hire quickly.”

Smart leaders are adept at unearthing the hidden potential in an organization, he added, and creating an environment of empowerment to enable the enablers.

One Robert Half client innovated by introducing a “chief future officer” role and invited a relatively new hire to join the company’s transformation steering committee, alongside senior leaders from across the business, to bring a fresh perspective and add a new voice.

“People new to the organization often have the clearest minds to and come up with innovative solutions,” Hughes said. “Younger generations want their voices to be heard, to feel they are contributing, so tapping into their passion and capabilities is very important and can be a key catalyst for successful DX.

“Often, a manager thinks the candidate they need is a reflection of who they are and their own skills,” he said. “But they need to identify where they and their organization are coming up short and then find the person to fill that gap.”

The deficiency might be a hard skill set, such as expertise in a new technology stack or building global enterprise architecture standards, but it might also be the ability to champion new ways of doing things, exposure to different industries, or diversity in hiring to bring in better creative problem-solvers.

“I believe leaders need to be deliberate in understanding the current skill, personality, and knowledge gaps,” Hughes said. “And then ask themselves what their team members can do to help drive the transformation, what unique talents can they bring to the table.”

How an upcoming income tax increase will impact high-net-worth individuals and business owners.

How It Works

A special message for ACCJ members from US Ambassador to Japan Rahm Emanuel

As his internship ends, Matthew Trani shares impressions of the ACCJ and a message for future recipients.

What are the pros and cons of the latest update to the International Standard on Auditing?

Advantages

Disadvantages

Communication

The Sales Support Alliance supercharges ACCJ members’ networking opportunities with monthly meetings and unselfish teamwork.

Rob Claar’s quest to bring lifesaving innovations to Japan

How did you get involved in healthcare innovation in Japan?

What did you discover that led you to want to help innovators?

What’s stopping overseas companies from entering the Japanese market?

How many companies have you helped get regulatory approvals in Japan?

What is that process like?

Sounds straightforward. Is there something else holding back innovation from overseas?

What opportunities do you see for ACCJ member companies? Can they replicate the success you’ve had?

How two new sustainability standards impact reporting and disclosure, and what companies should consider to ensure they are compliant.

Data Collection, Verification, and Management

Risk Assessment and Management

Technology Infrastructure

Training and Awareness

Governance

Integration with Financial Reporting

Stakeholder Engagement

Members and guests ushered in the Year of the Dragon in the Imperial Hotel’s Hikari Room.

ACCJ President Victor Osumi shares his thoughts on 2024 and the chamber.

Tell me a bit about your background.

What led you to become a pilot?

Where did that course change take you?

How did you become involved with the ACCJ?

Are there other career benefits you’ve felt from ACCJ involvement?

Why did you decide to run for president?

Why is 2024 a special year?

What do you see as the key initiatives and advocacy points for 2024?

How important has US Ambassador Rahm Emanuel been to ACCJ advocacy?

What else would you like to say to members?

The ACCJ recognizes exceptional contributions from across its three chapters

Leaders of the Year

Volunteers of the Year

Ten twists and turns that could make for an interesting Year of the Dragon.

1. Japan’s inflation and growth outpace the United States.

2. Japan’s M&A boom goes global.

3. Japan’s MBO/LBO boom accelerates.

4. Japanese CEOs step out of their comfort zone.

5. Japan’s corporate governance goes global.

6. Japan launches its own Defense Advanced Research Project Agency.

7. Japan deregulates home-helper visas.

8. China synthetic biology moonshot delivers domestic food security.

9. Elections shift alliances.

10. Germany wins Euro 2024.

Diamond Charity Ball celebrates the ACCJ’s 75th anniversary.

Legacy of Giving

President’s Circle Sponsor

Platinum Sponsor

Bronze Sponsors

Silver Sponsor

Mercury Sponsors

Prize Sponsors

Diamond

Ruby

Sapphire

Emerald

Fukui Prefecture offers crafts, fossils, relaxation, and so much more.

Mossy Matters

Coming of the Raptors

A Bath of One’s Own

The Pleasures of Pottery

Lustrous Lacquer

Learn more and plan your visit …

Kreston ProWorks opens doors with local expertise and global reach.

Full Slate of Services

Local Knowledge Matters

Japan faces an uphill climb when it comes to digital transformation.

Slow Road to DX

Helping Hand

Look Within

The American Chamber ofCommerce in Japan

The American Chamber of
Commerce in Japan