Synergy Media Specialists: How important is it for Japan and Taiwan to strengthen their economic relationship?

Hiroyasu Izumi: “As essential partners, Japan and Taiwan have developed economic ties in various fields over several decades. It is important to strengthen our relationship in order to achieve sustainable economic growth and we believe our cooperation will continue and together we will find solutions to global challenges.”

“Firstly, both Japan and Taiwan promote renewable energy solutions in order to reduce carbon emissions. As a country, Japan has set itself the target of becoming carbon neutral by 2050. Offshore wind power and hydrogen solutions are contributing to energy challenges in Japan. Taiwan wants renewable energy solutions to account for twenty percent of its energy needs by 2025. To meet this target Taiwan is promoting offshore wind power and solar photovoltaic cell solutions and many Japanese companies are participating in energy projects in Taiwan. Japan and Taiwan’s cooperation will boost renewable energy solutions and contribute to a carbon-neutral global society.”

“Secondly, the resilience of global supply chains is vital for sustainable growth. The importance of robust supply chains was evident during the COVID-19 pandemic and during any U.S.-China trade friction.”

“Furthermore, shortages of automotive semiconductor chips revealed the importance of strong semiconductor supply chains for today’s digital society. While Taiwanese companies dominate the global semiconductor manufacturing market, Japanese companies are strong suppliers of equipment and materials for semiconductor manufacturing. Japan and Taiwan’s close cooperation has lead to the resilient supply chain we see today.”

Synergy Media Specialists: What does the future hold, post-pandemic, for Japan and Taiwan in terms of trade and culture ties?

Hiroyasu Izumi: “Economic, travel and trade ties between Japan and Taiwan have been stable over the last ten years. The Japan National Tourism Organization (JNTO) and the Taiwan Tourism Bureau under the Ministry of Transportation and Communications both revealed the number of tourists between Japan and Taiwan exceeded seven million for the first time in 2019.”

“According to Japan’s Ministry of Finance, total trade between Japan and Taiwan since 2017 has amounted to over JP¥ 7trillion and reveals our close economic partnership. We saw travel restrictions in 2020 due to the pandemic. This lead to the number of Japanese visitors to Taiwan and Taiwanese visitors to Japan decrease to 960,000, an 86.3 percent drop from the previous year. On the other hand, the pandemic had almost no impact on trade statistics and these figures show the strong economic relationship between Japan and Taiwan.”

• JP¥ 4.7trillion (US$ 44.4billion) – Exports from Japan to Taiwan.
• JP¥ 2.9trillion (US$ 27.4billion) – Imports from Taiwan to Japan.
• JP¥ 7.6trillion (US$ 71.8billion) – The amount of total trade between Japan and Taiwan, maintaining the previous year’s level.

“In terms of transportation costs, the pandemic has impacted a wide range of industries, including the transportation of automobile components due to shipping container shortages. Transportation costs between Japan and Taiwan have risen rapidly. According to one Japanese company operating in Taiwan, transportation costs between Yokohama port and Keelung port are six times higher than last year.”

“With regards to travel between Japan and Taiwan, there is a high interest among Taiwanese to travel to Japan and the number of Taiwanese visitors to Japan is expected to increase significantly with the lifting of travel restrictions. Taking first place as Taiwan’s ‘most favored travel destination after the pandemic’, Japan won 42.1 percent of the votes in a survey for major Taiwan business magazine “遠見”.”

“Trade remained in line with yearly averages despite increases in transportation costs in 2020. Trade is expected to increase once the shipping container shortages and the rise of transportation costs are resolved. Demand for electronic components and semiconductors is expected to increase. Key industries have realized the importance of restructuring their supply chains and recognize the risks involved in centralized production and procurement. The digitalization and digital transformation of businesses will lead to increased demand within the semiconductor, information technology and electronics industries and we expect trade in these sectors to increase accordingly.”

“2021 marks a decade years since the Great East Japan Earthquake and tsunami. In the wake of the earthquake, Taiwan donated more than NT$ 6.8billion and offered relief supplies in addition to dispatching rescue teams to affected areas. Japan rediscovered Taiwan which is an extremely crucial partner and an important friend.”

“Late last year The Japan–Taiwan Exchange Association launched a new original logo ‘Japan-Taiwan Friendship, Always Here’. With this logo, the Japan-Taiwan friendship campaign is now underway and we will carry out a series of cultural events to express our sincere gratitude to Taiwan and the people here for their help and friendship.”

Taiwan is an indispensable player in information communication technology (ICT) and other supply chains within the Japan-Taiwan commercial, industrial and investment relationship.

In recent years, Taiwanese manufactures have been actively cooperating with Japan in the manufacture of semiconductors, electronics and within the automotive sector.

From 1952 to 2020, over 33,023 cases of Japanese foreign direct investments (FDI) reached Taiwan and amounted to US$ 48.7 billion.

Major sectors of Japan’s FDI into Taiwan are in the following sectors: wholesale, retail trade, construction, chemical manufacturing, electronic parts manufacturing and metal product manufacturing.

Meanwhile, Taiwan has made over US$ 9.22 billion direct investments in Japan.

Japan-Taiwan: Industrial supply chain cooperation in third countries

Taiwanese and Japanese manufactures share the need to develop third-country markets together.

TAITRA handles Japan-Taiwan industrial supply chain cooperation in third countries through trade promotion activities and industrial cooperation initiatives to coordinate a win-win strategy for Taiwanese and Japanese manufactures.

Our strong bilateral industrial cooperation varies from any Indo-pacific strategy and Sino-American trade war issues and is in line with the diversification supply chain policies of Japan’s Ministry of Economy, Trade and Industry.

Although Taiwan and Japan do not have formal diplomatic relations, our bilateral civic friendship, economic, trade and industry cooperation exists on a very strong foundation. Moving forward, Taiwan will remain one of the best global cooperative partners for Japan.

www.taitra.org.tw

Singapore and Japan are also like-minded partners in promoting free and open trade. Bilaterally, Singapore and Japan signed the Japan-Singapore Economic Partnership Agreement in 2002. This was Japan’s first Free Trade Agreement (FTA), and Singapore’s first with a major trading partner. At the regional level, both Singapore and Japan are parties to multilateral agreements – the ASEAN-Japan Comprehensive Economic Partnership (AJCEP), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Regional Comprehensive Economic Partnership (RCEP), which concluded negotiations last year. Singapore and Japan are also close partners in new areas of trade, through efforts such as the Joint Statement Initiative (JSI) on E-Commerce at the World Trade Organization (WTO).

The ongoing COVID-19 outbreak has serious implications on the global economy, especially on the tourism and transport sectors. We are also seeing disruptions in the global supply chains which are in turn hampering trade and manufacturing. To overcome this global challenge, it is important that Singapore and Japan work together to maintain open and connected supply chains, and ensure that trade lines remain open to facilitate the flow of goods including essential supplies. We should also cooperate with the international community to ensure that trade continues to flow unimpeded, and that infrastructure such as our air and sea ports remain open to support the viability of supply chains globally.

Main Industry trends and opportunities of growth

There are three areas that I would like to highlight. First, Singapore and Japan can deepen collaboration in innovation and digital economy. As we transform our economies and enhance productivity, there is scope for closer innovation collaboration between Singapore and Japanese companies, especially in the digital economy. In fact, Singapore startups are already leveraging Japan’s market to scale up. For instance, ViSenze – a deep tech startup which builds visual search and image recognition software tailored for e-commerce websites – has successfully entered Japan and provided services to prominent Japanese retailers like Uniqlo.

Last year, Tokyo joined Singapore’s Global Innovation Alliance (GIA) network of Innovation Launchpads. To leverage each other’s innovation ecosystems, the Economic Development Board (EDB), Enterprise Singapore (ESG) and Japan External Trade Organisation (JETRO) will develop initiatives, organise events and information sharing sessions for startups and businesses from Singapore and Japan. To this end, ESG is also running outbound GIA Acceleration Programmes to connect Singapore startups and SMEs with Japan’s innovation ecosystem. Under this programme, ESG is working with Japanese science venture accelerator Leave a Nest to assist more deep-tech Singapore startups and SMEs to access the Japanese market.

Japanese startups are also entering Singapore to tap on Singapore’s pro-business environment, strong protection of intellectual property and geographical location within Southeast Asia. In the area of smart agriculture, Japanese aquaculture data analytics startup UMITRON, which builds aquaculture data platforms that leverage the use of Internet of Things (IoT), artificial intelligence and satellite remote sensing, established its headquarters in Singapore in 2016. UMITRON aims to use Singapore as a launchpad into other countries in the region such as Indonesia, China and Australia.

Second, Singapore and Japanese companies can collaborate on infrastructure projects in third-party markets, especially in Southeast Asia. Infrastructure demand in the region is growing and it presents opportunities for Singapore and Japanese companies to work together in third-party markets. Singapore companies with extensive master-planning experience and deep local market expertise can partner Japanese companies with exceptional engineering capabilities to take on joint projects in the region. For example, Singapore’s infrastructure consulting firm Surbana Jurong has partnered the Japan Overseas Investment Corporation for Transport and Urban Development (JOIN) to support the development of New Clark City, a smart and green metropolis in the Philippines.

Finally, with growing affluence in Asia, Singapore and Japanese companies can explore and leverage opportunities in the consumer and lifestyle sector. The rise in purchasing power of consumers and the growth of the internet economy in Southeast Asia present unprecedented opportunities for Japanese retailers to capitalise and scale up. Japanese brands looking to expand their reach in the rest of Asia can work with Singapore’s e-commerce players to capture the young and digital-savvy consumers in the region. On the other hand, given the growing demand for unique food offerings in Japan, Singapore food companies can participate in the Taste of Singapore Pop-up, an ESG-led initiative, to grow product awareness amongst the Japanese consumers. Irvins Salted Egg, for example, has set up a pop-up store in Daimaru Tokyo in 2019 to expand their market reach in Japan.

Vision for the future relationship between Singapore, Japan and the ASEAN region

Looking ahead, Singapore will continue working with other ASEAN Member States and Japan to support an open and rules-based multilateral trading system. Japan has been an important dialogue partner for ASEAN. It is ASEAN’s fourth largest trading partner (with bilateral trade standing at US$225.2 bn in 2018) and second largest investor into the region (Foreign Direct Investment inflows valued at US$21.2 bn in 2018). The AJCEP, signed in 2008, is one of the building blocks for the ASEAN-Japan economic relationship. In April 2019, ASEAN and Japan signed the First Protocol to Amend the AJCEP which will legally incorporate the chapters on Trade in Services, Investment and Movement of Natural Persons. Once it comes into effect, the First Protocol will bring tangible benefits for ASEAN and Japanese service suppliers and investors. We are also looking forward to the early signing of the RCEP, which will create more opportunities for our people.

The ASEAN-Japan relationship is wide-ranging, with cooperation activities in areas such as trade facilitation, intellectual property rights (IPR), micro, small and medium enterprises (MSMEs), infrastructure, energy, innovation and transfer of technology. In recent years, dialogues and cooperation initiatives on the digital economy and the transformative impact of the Fourth Industrial Revolution (4IR) have taken place. Singapore and ASEAN will continue to cooperate and enhance stronger trade and investment ties with Japan.

www.mfa.gov.sg/tokyo

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I am thrilled to see the people-to-people exchange between Japan and Singapore becoming increasingly dynamic. In 2019, nearly one in eight Singaporeans visited Japan, while Singapore received more than 880,000 Japanese visitors.

In that year, the Embassy of Japan in Singapore celebrated the 10th Anniversary of its Japan Creative Centre (JCC), its cultural arm, by bringing to Singapore the first-ever performance of Bunraku, which is one of the traditional performing art forms of Japan and designated as a UNESCO Intangible Cultural Heritage.

Going forward, Japan will continue to cooperate with Singapore and other members of ASEAN to contribute to peace and prosperity of the region and beyond.

www.sg.emb-japan.go.jp

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“About 3 billion people around the world use products that were manufactured in Oulu or through the technologies provided by the innovative companies in Oulu,” Ala-Mursula said.

Aside from technological innovations, Oulu is opening its doors and sharing its knowledge, particularly with the Japanese community.

Through the efforts of the University of Oulu and Oulu University of Applied Science, universities and companies in Japan and Europe are able to work together closely on their research programs.

“Education has always been important for us, and in recent years we have focused on educational visits. About 10 to 20 students from Japan come to Oulu every year to learn our ways,” Ala- Mursula said.

Along with more technological advancements in its future, Oulu also sees a more solid relationship with Japan.

“We hope to continue strengthening our ties with our friends from Japan,” Uchida said. “There are many business opportunities for them to explore, especially in the field of wireless connectivity.”

www.businessoulu.com
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“In the early 2000s, comprehensive reform programs were implemented to improve the investment environment and enhance the position of foreign investors interested in Turkey,” Ermut said. “Today, Turkey hosts more than 70,000 foreign-owned companies.

“Foreign companies have the guarantee of international law, open international arbitration and the transfer of profits and dividends to home countries without any costs. When we look at liberalization phases and the speed of growth throughout global economies, Turkey is very well-positioned.

“While the surrounding region has its share of geopolitical challenges, Turkey has been pursuing a global peace diplomacy in order to protect civilians and prevent humanitarian crises, thus attracting open and clear support from the international community. As Turkey is the only functioning secular democracy in the region, we want our partners and allies to trust in our experiences within the region and to make use of Turkey as a platform to boost trade and relations across the region as many of these markets remain untouched and offer ample investment opportunities.”

Strengthening a historic partnership

“The investment office was established to promote the investment environment in Turkey and support incoming investors by helping them establish businesses in Turkey with ease and efficiency. Today we support existing investors as they continue to achieve success and also attract new foreign investment from Japan and around the world,” Ermut continued.

“With Japan, we are in a very advantageous position. When you look at the historical ties, cultural proximity and sentiments our two countries share with one another, our bilateral relationship is very strong.

“The Japanese way of doing business, the country’s service-orientated approach to customers and its technology and engineering achievements are highly appreciated in Turkey and this makes it much easier for Japanese companies to enter the Turkish market. We continue to encourage Japanese investors to look at the opportunities Turkey has to offer,” he said.

Providing valuable insight to investors

“There are many success stories regarding Japanese investments in Turkey in diverse industries. The first foreign investment in the new Republic of Turkey actually came from Japan,” Ermut said.

“While we understand the Japanese way of doing business is undertaken diligently and can often take time, in Turkey business decision making tends to move more quickly. For this reason, we encourage Japanese companies to contact the investment office to assist in their feasibility studies, make necessary preparations and connect them with relevant local authorities.

“We offer valuable insights, detailed information and unbiased data that empowers investors and leads them to make well-informed decisions. Our network of international teams, including our dedicated ‘Japan Team’ based in Japan and Turkey, is committed to bridging Turkey and the global business community.

“We are in a unique position as the most experienced Turkish institution focused on delivering investment projects. We will continue to accompany investors during every step of their journey with us and we look forward to providing our timely world-class services to our Japanese and international friends and partners.”

www.invest.gov.tr
www.invest.gov.tr/ja-JP

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(2) Japanese Studies and Intellectual Exchange – We allow individual Thai scholars to deepen their dialogue and networks with experts from Japan with the aim of solving current and rising global issues such as our ageing society and natural disasters through symposiums and collaborative projects.

(3) Japanese Language Education – We deliver a range of opportunities and support yearly including the dispatch of 85 Japanese teaching assistants (NIHONGO Partners) to public junior/high schools in Thailand as well as offering training to Thai Japanese-language teachers.

“This year we will continue to strengthen learning, support and understanding between Japan and Thailand through the Asian cultural exchange; the ‘WA Project’: Toward Interactive Asia through ‘Fusion and Harmony.’ Japan and Thailand have a healthy relationship with strong and developing economic ties. This brings great potential to learn, enhance and develop the cultural understanding which many Thai and Japanese people have yet to fully discover.”

www.jfbkk.or.th

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Thailand and Japan – Two-way Tourism

“Both countries have a strong interest in further developing their tourism industries and working closer together to increase two-way tourism traffic.”

“The number of Thai tourists to Japan in 2018 has increased by almost four times since Japan relaxed its visa requirements in 2013 (1.13 mil visitors in 2018).”

“Japans’ population is double that of Thailand (the Thai population is around 70 million), which means that Thai people are visiting Japan more frequently than the other way round. Today there are over 73,000 Japanese expats living in Thailand and Japanese people feel very welcome here.”

Challenges and Opportunities

“The ageing population is a challenge being faced by both Japan and Thailand. (The birth rate in Japan has fallen to 1.42 from 1.44 in 2016, whereas the one for Thailand remains at around 1.5.). While this challenge is creating opportunities in the healthcare sector, it is forcing companies to look beyond their borders to attract skilled workers and invest in talent. For example, Both countries  need engineers and we want to promote innovation and education to develop tomorrow’s engineers.”

‘Educating a Nation’

“The KOSEN Program, which Japan is implementing in educational establishments in Thailand, aims to provide engineering courses for Thai students.”

“At the embassy we are supporting this program to educate and support future generations of Thai students as they enter the world of work.”

Business and Investment

“The Embassy is actively assisting Japanese start-up companies which want to use Thailand as a springboard to enter international markets. Programs such as ‘Rock Thailand’, ‘Open Innovation Columbus’ and ‘Embassy Pitch’ are bringing companies from Japan and Thailand together and proving to be a huge success in facilitating business.”

“There are more than 6,000 Japanese companies in Thailand and Japan remains the leading foreign direct investor in the country (almost 40 percent). The Japanese Chamber of Commerce in Thailand is one of the largest in the world. While competition from Chinese companies active in Thailand is increasing, Japanese companies are happy to have established their business in Thailand and are using their Thai operations to reach out to regional markets such as India.”

Thailand’s 2019 ASEAN Chairmanship

“With Thailand holding the ASEAN Chairmanship this year, 2019 is an important year for the country. Leaders from across ASEAN are coming to Thailand to discuss the future of the Association and the regional economy.”

Message to the readers of The Japan Times

“As friendly nations with strong economic ties, we need to do more together for the development of both our people and economies. We look forward to working with our Thai partners as we strengthen our relationship.”

www.th.emb-japan.go.jp

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He said AfCFTA agreements will “lay the basis for increased intra-African trade and can cement the continent’s position as the next growth frontier.”

As the theme of this year’s conference aptly puts it, TICAD 7 will help the continent solidify this status by advancing Africa’s development through people, technology and innovation. With a shared passion for the future, TICAD 7 will help position South Africa and Africa at the forefront of the “Fourth Industrial Revolution.”

By promoting its investment proposition, location, infrastructure and logistics, South Africa has positioned itself as a destination of choice. As the most industrialized country on the African continent, South Africa continues to make massive investments in infrastructure development, with many international companies utilizing the country as a strategic base for their operations on the African continent. South Africa looks forward to continuing on this positive path together with its Japanese partners.

www.brandsouthafrica.com

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“It is estimated that by the middle of this century, Africa will provide approximately 60 percent of the world’s food needs,” said AMDIE Acting CEO Hicham Boudraa. “Agricultural development is a priority for Morocco as we have favorable weather, ideal soil conditions, knowledge, technology and land availability. While we currently sell raw produce to Europe and then purchase finished goods, there is huge potential for transformation. If the production of finished goods can be moved to Africa, profits can be directed to businesses across the continent.”

The Japan connection

Japan recognizes Morocco’s potential. While South Africa is home to the highest number of Japanese companies of any African country, Morocco comes a close second. Today the largest private employer in Morocco is a Japanese company.

“A strong value-offering is required to attract Japanese investors as they no longer simply relocate their businesses to reduce operating costs,” said Boudraa. “When considering a new market, Japanese investors need to see the values that country’s society holds dear in order for them to consider managing and operating their business from there.”

“AMDIE showcases the values which Moroccans hold dear to convince our Japanese partners to select Morocco as a place to do business. Today there is a dynamic relationship between Morocco and Japan in many areas and the Japan-Morocco partnership is becoming even stronger.”

The agency is working closely with the Japan External Trade Organization, Japan International Cooperation Agency and the Embassy of Japan in Morocco to promote the country’s competitive advantages. Morocco’s minister of industry visits Japan every year to attend high-level meetings and promote important sectors within the Moroccan economy that are ripe for investment.

“We understand that the Japanese analyze every decision they make and that important decisions can take time,” said Boudraa. “Once a decision has been made, Japanese executives stand by their decision and things can then move quickly. Economic stability is a key consideration for Japanese investors; while factors such as logistics and financing are important, stability is a must.”

“Our political system remains stable in what has been described as a turbulent region of the world,” said Boudraa. “The King of Morocco Mohammed VI is responsible for this and despite different governments holding power over the years, he has stayed true to his vision for the future of Morocco.”

Future-ready industrial growth

Local companies and multinationals will play a role in the expansion of the Moroccan economy and AMDIE is committed to ensuring that Japanese investment continues to flow into Morocco.

“In the coming years we will focus on further developing the country’s dynamic industries,” said Boudraa. “For example, we will support the automotive industry which is founded on a firm ecosystem comprising industrial parks such as the ones found in Kenitra and Tangier in the north of the country. The burgeoning aerospace industry will also continue to receive our support in addition to private investment.”

“Japanese investment banks and fund management companies continue to visit Morocco and we are confident that these visits will lead to tangible results,” Boudraa said. “Japanese firms are interested in large energy and infrastructure projects as they have the technical know-how required to bring these projects online. Once a Japanese construction company invests in Morocco, suppliers will follow and relationships can then blossom.”

“Our political stability and our king’s long-term vision have empowered Morocco on its journey to becoming a successful and vibrant economy,” said Boudraa.

“We are looking for foreign direct investment partners and real growth-drivers who can contribute to the future of our great country by initiating projects to create business momentum across Morocco.”

www.amdie.gov.ma

 

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