Japan Archives · Policy Print https://policyprint.com/tag/japan/ News Around the Globe Sun, 03 Dec 2023 23:32:38 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.2 https://policyprint.com/wp-content/uploads/2022/11/cropped-policy-print-favico-32x32.png Japan Archives · Policy Print https://policyprint.com/tag/japan/ 32 32 Defense Industry Says Policy-Shift Windfall Higher Than Expected https://policyprint.com/defense-industry-says-policy-shift-windfall-higher-than-expected/ Thu, 21 Dec 2023 23:27:27 +0000 https://policyprint.com/?p=4075 Heavy machinery and electronics manufacturers have seen a higher-than-expected surge in orders for defense equipment, such as missiles…

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Heavy machinery and electronics manufacturers have seen a higher-than-expected surge in orders for defense equipment, such as missiles and radar systems, since the government shifted Japan’s security policy last year.

Under the plan of Prime Minister Fumio Kishida’s administration, Japan’s defense spending over the five years through fiscal 2027 will total 43 trillion yen ($290 billion), 1.5 times the previous level.

Some companies in the defense industry say the financial windfalls have already exceeded expectations.

“I had conservative prospects but, as it turned out, we received more orders than we ever imagined,” Seiji Izumisawa, president of Mitsubishi Heavy Industries Ltd., said Nov. 6 at a briefing on the company’s mid-term financial results.

Orders received by MHI’s aircraft, defense and space segment over the first half of fiscal 2023 reached a record 999.4 billion yen, a fivefold year-on-year increase.

The rise is due partly to MHI’s agreement signed with the Defense Ministry in April on development work related to long-range standoff missiles.

MHI raised its forecast for orders accepted by the segment by 800 billion yen for fiscal 2023, mainly because of growth in defense-related orders, company officials said.

Kawasaki Heavy Industries Ltd. expects about 460 billion yen in orders for the company’s defense arm in fiscal 2023, up 200 billion yen year on year.

The forecast for the defense arm’s revenue is slightly more than 280 billion yen, up about 40 billion yen from last fiscal year.

NEC Corp. saw a year-on-year rise of 40 percent in orders taken by its “aerospace and national security” department in the first half of this fiscal year.

“We are receiving orders with considerably large sums,” Osamu Fujikawa, an NEC board director, said.

Contractors are increasing personnel and capital investment with the rise in orders for defense equipment.

Mitsubishi Electric Corp. said in May it was assigning 1,000 additional workers to its defense and space business and investing 70 billion yen in plant and equipment there.

The company also released a plan in October to build eight new manufacturing buildings at its three plants for radar and other equipment.

MHI said on Nov. 23 that it will increase personnel by 20-30 percent at its design and other departments to deal with the surge in orders.

The profit margins for defense contractors have averaged only 8 percent in Japan, compared with more than 10 percent for some companies in overseas nations.

One study said the corresponding profitability level in Japan was only 2 to 3 percent in real terms.

Many companies in Japan, including major manufacturers, have reduced their defense operations or even withdrawn from the business in recent years.

To change the situation, the Defense Ministry in October started setting contractors’ profit margins at a maximum of 15 percent in the order-placement stage, up from the previous level of around 8 percent.

The ministry adopted a new mechanism to increase profitability levels depending on the contractor’s business efforts, such as implementing quality control and meeting delivery deadlines.

“(Our profit margin levels) used to be low, but they are beginning to improve in our new projects,” NEC’s Fujikawa said. “I hope to ensure our company will win a near-maximum profitability level.”

Some Japanese contractors are beginning to engage in joint development work with overseas partners.

Mitsubishi Electric said in October that it will draw on its laser technology to jointly develop surveillance equipment with the Australian Department of Defense.

Source : The Asahi Shimbun

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Yen Under Renewed Pressure Following Boj Policy Tweak https://policyprint.com/yen-under-renewed-pressure-following-boj-policy-tweak/ Tue, 05 Dec 2023 18:01:33 +0000 https://policyprint.com/?p=3812 The yen suffered its biggest daily fall against the dollar since April on Tuesday after the Bank of…

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The yen suffered its biggest daily fall against the dollar since April on Tuesday after the Bank of Japan made only modest changes to its policy of holding down government bond yields.

The Japanese currency fell 1.7 per cent against the dollar to ¥151.60, its weakest level since October last year, and close to the point at which the central bank last intervened by spending a record ¥6.35tn ($43bn) to push the yen back up.

Some investors had suspected the BoJ would take a more definitive step towards closing the gap between borrowing costs in the US and Japan by abandoning its yield curve control altogether, as the yen tests multi-decade lows and inflation has persisted above the central bank’s target for the past 18 months.

Instead, officials changed the 1 per cent limit on 10-year Japanese bond yields from a hard cap to a “reference point”. “The fact that the yen weakened by more than a percentage point is the market telling you that they still think the Bank of Japan is behind the curve,” said Ella Hoxha, head of fixed income at Newton Investment Management. “That’s fair because inflation is much higher than their 2 per cent target and they are the last central bank standing in terms of very loose policy.”

Analysts predict Japanese officials are poised to intervene and support the currency again if the currency continues to weaken to a 32-year low, estimating it might step in at levels between ¥152 and ¥155. “They are probably quite comfortable with where Japanese government bond yields are and relying on intervention to prevent the yen getting out of control,” said Chris Turner, head of global markets at ING.

The central bank maintained its policy rate at minus 0.1 per cent, the world’s only negative interest rate. But it significantly increased its inflation forecast, saying it expected 2.8 per cent core inflation in the 2024 fiscal year, instead of its previous forecast of 1.9 per cent. 

Analysts say the fall in the currency puts the BoJ in a bind, as it pushes up the cost of imported goods, when officials are focused on achieving domestically driven inflation for maintaining a 2 per cent target rate.

The yen has been the worst performing major currency this year, falling by over 13 per cent against the dollar, fuelled by the yawning gap between US and Japanese borrowing costs.  Intervention on its own would be unlikely durably to support the sliding yen — that would depend more on a switch in US monetary policy that pulls down the dollar or on a push higher in Japanese interest rates.

But that too brings potential risks. “They are trying to support the currency while not being seen as tightening,” said Eva Sun-Wai, fund manager at M&G Investments. “If they let yields run much higher when they have so much debt they run the risk of not being able to refinance at higher levels of interest.”  However, investors think it is inevitable that the BoJ will normalise policy as the economy remains buoyant and inflation remains persistently above target. Sun-Wai said that her worry is that the longer policymakers leave it to tighten, the tougher they will have to be. 

The normalisation of policy in Japan could have major ramifications for international bond markets, as Japanese investors own trillions of dollars of overseas debt following years of hunting for higher yields elsewhere.  

“Under Governor [Kazuo] Ueda’s leadership, the BoJ is moving to a more pragmatic approach,” said Iain Stealey, international CIO for fixed income at J.P. Morgan Asset Management. “We expect the BoJ to take a more active approach from here, potentially ending negative interest rates . . . as early as spring next year.”

Source : Financial Times

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Why Won’t Kishida Adopt a Formal Immigration Policy? https://policyprint.com/why-wont-kishida-adopt-a-formal-immigration-policy/ Thu, 30 Nov 2023 23:01:53 +0000 https://policyprint.com/?p=3860 During a recent speech, Japanese Prime Minister Fumio Kishida outlined his primary policy priority in simple terms — ‘economy,…

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During a recent speech, Japanese Prime Minister Fumio Kishida outlined his primary policy priority in simple terms — ‘economy, economy, economy’. Notably absent was any mention of foreign workers and their role in sustaining Japan’s future economic development. This is surprising, given the well-documented need to further increase the foreign workforce, which has already reached record highs in 2023.

In 2022, the Japan International Cooperation Agency outlined that Japan would need over 6.7 million foreign workers by 2040 to maintain an economic output aligned with the government’s GDP growth targets. This represents a roughly four-fold increase from current levels. Kishida re-started the large-scale admission of foreign workers in Spring 2022, following a relaxation of pandemic-related border restrictions. Yet, he has been hesitant to outline a broader vision for the long-term admittance and potential integration of migrant workers.

The reluctance to implement a formal immigration policy has long precedence among Japanese policymakers. For example, when presenting the 2018 amendment to the Immigration Control Act, the late former prime minister Shinzo Abe stated that ‘Japan would not adopt a so-called immigration policy’. Instead, the amendments established the Specified Skilled Worker (SSW) system, which aims to boost foreign worker admittance within 12 economic sectors suffering from acute labour shortages.

Japan has long relied on immigration ‘side doors’ — pathways to admit primarily lower skilled foreign workers while legally denying their presence. These channels have historically included the generous admittance of people of Japanese descent, with the Abe years seeing a rapid increase in the numbers of working international students and participants in the Technical Intern Training Program (TITP). But these ‘side doors’ have also been subject to criticism for placing foreign workers in vulnerable labour environments.

While the SSW system requires that workers pass an industry aptitude test and imposes some language requirements, the industries which the system serves and the institutions which govern it strongly overlap with the TITP. Unsurprisingly, the SSW system essentially functions as a way for employers to retain technical interns, with roughly 70 per cent of specified skilled workers coming from the TITP.

As it pertains to foreign workers, Kishida has so far opted to maintain the status quo set by Abe, preferring to adjust Japan’s primary admittance policies instead of implementing major reform. In June 2023, his cabinet passed an expansion of the SSW Residence Status Two, which allows for unlimited renewals and family reunification. While this provides an effective path to long-term settlement for lower skilled workers, the expansion has been essentially non-functional, with only 12 SSW Two status holders as of June 2023.

While the Kishida government expanded the acceptable industries that foreign students graduating from vocational schools can find employment in, one of the most significant changes may lie in the future of the TITP, which is being reviewed by a Ministry of Justice appointed panel. Currently, the TITP works under the pretext of facilitating ‘skills transfer’ to developing countries, though analysts argue that it more closely resembles a rotational migrant worker system.

The TITP has also been criticised on human rights grounds, with many ‘interns’ incurring debt to access the program and facing heavy restrictions in changing employers. The panel has suggested that the TITP be renamed and formalised as an entry point to the SSW system, abandoning the pretext of ‘skills transfer’ and making it easier for workers to change employers. This proposal is yet to be adopted into policy.

The Kishida administration has opted for incrementalism on immigration. While Kishida has mentioned the need to ‘consider a society featuring co-existence with foreigners’, he has generally avoided the topic in major policy speeches, as there is simply no political necessity for him to do otherwise. If current systems are sufficient for Japan to address its labour shortages, it is unnecessary to open the potential can of worms that a national conversation on immigration would represent. Still, the absence of a formal immigration policy means that foreign workers will continue to suffer from subpar policy outcomes.

Japan has a structural demand for foreign workers, but one major question going forward is whether there is sufficient supply. The countries from which foreign workers migrate, such as Vietnam, have experienced strong post-pandemic economic growth while the Japanese yen has weakened and wages have stagnated. As such, Japan’s attractiveness as a destination country for foreign workers has diminished.

Broader regional trends suggest that foreign labour migration to Japan will not continue to increase indefinitely and the potential effects of this will be felt by a future administration. One way to address a potential bottleneck in foreign labour supply is to boost Japan’s attractiveness by improving labour conditions, expanding pathways to permanent residence and family reunification and integrating foreigners into Japanese society — considerations that a formal immigration policy could address. But despite recent calls to pass a national ‘Immigration Act’, it is unlikely that the Kishida administration will do so. Until such a time, Kishida’s incrementalism looks set to continue.

Source : East Asia Forum

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Indonesia Just Energy Transition Comprehensive Investment and Policy Plan Launched https://policyprint.com/indonesia-just-energy-transition-comprehensive-investment-and-policy-plan-launched/ Mon, 27 Nov 2023 22:13:40 +0000 https://policyprint.com/?p=3851 The International Partners Group (IPG), co-led by the United States of America and Japan and comprised of Canada,…

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The International Partners Group (IPG), co-led by the United States of America and Japan and comprised of Canada, Denmark, the European Union, the Federal Republic of Germany, the French Republic, Norway, the Republic of Italy, and the United Kingdom of Great Britain and Northern Ireland, jointly welcome the launch of Indonesia’s Just Energy Transition Partnership (JETP) Comprehensive Investment and Policy Plan (CIPP).

Launched in Jakarta today, the CIPP is a roadmap for the government of Indonesia and the IPG to achieve the objectives laid out in the JETP Joint Statement, announced at the G20 Leaders’ Summit last year in Bali.  Under the Joint Statement, Indonesia committed to limit emissions, accelerate renewable energy development, and set a goal to achieve net zero emissions in the power sector by 2050.  To support these ambitious targets, the IPG committed to mobilize $10 billion in financing and the Glasgow Financial Alliance for Net Zero (GFANZ), a global coalition of leading financial institutions committed to accelerating the net-zero transition, committed to mobilizing and facilitating another $10 billion in financing.

The culmination of a year’s worth of work, the CIPP maps out a technical pathway for Indonesia’s power sector, recommends policy changes needed to successfully transition the power sector, and outlines a just transition plan.  It also serves as the basis to drive the $20 billion in JETP financing toward specific projects and priorities for Indonesia’s energy transition.

The CIPP technical pathway focuses initially on Indonesia’s on-grid power sector.  Under the CIPP technical pathway for the on-grid system, Indonesia’s on-grid system will emit no more than 250 MT CO2, down from a baseline of 305 MT, and will achieve 44% renewable energy generation share by 2030.  The partnership will work together to complete an analysis of Indonesia’s off-grid power sector in the coming months.  This analysis will serve as the basis for implementing the necessary measures to achieve a comprehensive energy transition.

The $20 billion funding package will be disbursed through various mechanisms, including via grants, concessional and non-concessional loans, and investments, and guarantees.  The IPG’s funding will direct support toward the priorities and projects identified in the CIPP, including renewable energy deployment; transmission and grid build out; managed phaseout and reduction in emissions from coal plants; and just transition initiatives.

As next steps, the Indonesian government and the IPG, supported by the JETP Secretariat, will continue to work together to implement the CIPP.  The IPG and GFANZ investors are actively working to direct financing towards potential JETP projects, and Indonesia’s implementation of the CIPP’s policy recommendations will enable the business environment for renewable investments.  These combined efforts are designed to help catalyze additional investments in Indonesia’s energy transition and spark a boom in Indonesia’s renewable energy sector.

Kanasugi Kenji, Ambassador of Japan to Indonesia said “Japan welcomes the release of the Comprehensive Investment and Policy Plan, which shows an ambitious pathway towards the net zero. The Just Energy Transition Partnership will promote Indonesia’s clean energy and economic development, which will also contribute to more sustainable, more prosperous and inclusive global economies and societies. Japan will continue to co-lead this JETP with the U.S., in coordination with the other partner countries, to support Indonesia’s realistic but ambitious decarbonization transition, while respecting Indonesia’s country ownership. Japan will continue to contribute to global decarbonization efforts through various initiatives including JETP.”

Michael F. Kleine, Chargé d’Affaires, Embassy of the United States to Indonesia said “Indonesia’s roadmap to reducing carbon emissions – the Indonesia JETP Comprehensive Investment and Policy Plan – is an important milestone demonstrating Indonesia’s leadership towards reaching net zero in the power sector by 2050 and promoting economic growth powered by renewable energy.”

Richard Le Bars, Chargé d’Affaires, Embassy of Canada to Indonesia and Timor-Leste said “The launch of the Indonesia Just Energy Transition Partnership Comprehensive Investment and Policy Plan demonstrates continued multilateral collaboration in support of Indonesia’s ambitious move towards clean energy systems and a sustainable future. Canada is committed to pursuing this collaboration with Indonesia and other partners, recognizing our shared interest in ensuring an inclusive, clean energy future in Indonesia and the wider Indo-Pacific region.”

Per Brixen, Deputy Head of Mission, Embassy of Denmark to Indonesia, Malaysia, Timor-Leste, Papua New Guinea and ASEAN said “Today’s launch of the Comprehensive Investment and Policy Plan (CIPP) marks another big step in Indonesia’s green transition. The CIPP demonstrates both a pathway and important steps to achieve a transition for Indonesia’s on-grid power sector that is not only green but also just. Denmark will continue supporting Indonesia building on our more than seven years of close technical collaboration on renewable Energy development, with the Indonesian Government.”

Denis Chaibi, Ambassador of the European Union to Indonesia and Brunei Darussalam said “The Indonesian Just Energy Transition Partnership (JETP) Comprehensive Investment and Policy Plan (CIPP) is the beginning of a transformative path that will allow Indonesia and the European Union to jointly contribute to the global fight against climate change. Through a mix of grants and concessional loans, the EU, the European Investment Bank and EU Member States have pledged over S3.7 billion for the transition away from fossil fuels. Moving forward, we have a unique opportunity to work together on the implementation of the CIPP, including on off-grid decarbonisation pathways.”

Fabien Penone, Ambassador of France to Indonesia, Timor Leste and ASEAN said “The release of the Comprehensive Investment and Policy Plan (CIPP) marks an important milestone in our collective effort to support and accelerate Indonesia’s energy transition in a just way that leaves no-one behind and brings about benefits for the Indonesian economy, the Indonesian people and the climate. France will keep engaging closely with the Indonesian government and international partners to deliver results in line with the high level of ambition of JETP.”

Ina Lepel, Ambassador of Germany to Indonesia said “Today’s launch of the Comprehensive Investment and Policy Plan is a great success towards a green energy transition in Indonesia. The Government of the Federal Republic of Germany highly appreciates the dedication and ambitions of the Government of Indonesia and is committed to provide substantial financing for implementing our Just Energy Transition Partnership. Together, we will shape a future where clean and affordable energy drives progress and preserves our planet for generations to come.”

Benedetto Latteri, Ambassador of Italy to Indonesia said “The CIPP will set the route for the achievement of JETP’s objectives. We acknowledge the effort made by the Indonesian Government. Italy is proud to be on the side of Indonesia in this ambitious path and to put the Italian state of the art technology and skills to the benefit of Indonesia for sustaining its energy transition efforts.”

Rut Krüger Giverin, Ambassador of Norway to Indonesia said “Norway is delighted to take part in this partnership and to support Indonesia’s efforts to develop clean energy and speed up the energy transition. We believe the Comprehensive Investment and Policy Plan will provide a good framework for mobilizing capital to accelerate the deployment of renewable energy in Indonesia. Norway will continue to support Indonesia’s commitment to reduce emissions and fight climate change.”

Dominic Jermey, His Majesty’s Ambassador to Indonesia and Timor-Leste, said “I congratulate the Government of Indonesia for today’s successful CIPP launch. The plan lays out important steps for the on-grid power sector and sets the stage for future strategies for the off-grid power sector. The United Kingdom remains a steadfast partner in Indonesia’s ambitions for energy transition. Partners across the domestic spectrum, the international community and the private sector will be vital to help Indonesia achieve its renewables targets and infrastructure investments.”

Source : US Embassy & Consulates in Indonesia

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Event Report: Prospects and Possibilities for Japan’s G7 Summit 2023: How Can Universities Contribute? https://policyprint.com/event-report-prospects-and-possibilities-for-japans-g7-summit-2023-how-can-universities-contribute/ Fri, 04 Aug 2023 08:00:00 +0000 https://policyprint.com/?p=3364 On February 15, 2023, the Centre for the Study of Global Japan at the University of Toronto co-hosted…

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On February 15, 2023, the Centre for the Study of Global Japan at the University of Toronto co-hosted a public symposium, “Prospects and Possibilities for Japan’s G7 Summit 2023: How Can Universities Contribute?” The event brought together leading thinkers to consider how universities could contribute to the Hiroshima G7 meeting, which took place later in May 2023. The event was organized jointly with the Office of the Vice-President, International, G7 Research Group, the Asian Institute, and the U7+ Alliance, a global coalition of university presidents committed to taking concrete, collective action to address global challenges.

Phillip Lipscy (Director of the Centre for the Study of Global Japan), opened the event by welcoming attendees and delivering a land acknowledgment. This was followed by further opening remarks by Meric Gertler (President of the University of Toronto), Madeline Koch (Executive Director of the G7 Research Group), and Phillip Lipscy. 

A keynote address was delivered by Japanese Ambassador to Canada, H.E. Yamanouchi Kanji, who noted the critical role University of Toronto had played 35 years earlier as host of the 1988 G7 meeting in Canada. He observed how much the world had changed between the previous G7 meeting hosted by Japan in 2016 and 2023, including major developments such as the war in Ukraine, COVID-19, rapid technological advancement in areas like artificial intelligence, and the adoption of net-zero commitments by major countries. He argued that the single most important objective of the Hiroshima G7 Summit would be to express solidarity behind the significance of the free and open international order based upon the rule of law. It would also be critical to reach out to countries of the global south and enlist their support. He noted that the location of the summit in Hiroshima would be important in sending a message about aspirations toward nuclear disarmament and non-proliferation. He also highlighted the deepening cooperation between Canada and Japan to address global challenges, as reflected in the Canadian Indo-Pacific Strategy and Japan’s National Security Strategy as well as various bilateral initiatives to strengthen collaboration. He closed by expressing hope that universities will continue to foster innovative solutions to global problems through research, communication, and education.

David Morrison, Canadian Deputy Minister of Foreign Affairs and G7 Sherpa, followed up the Ambassador’s remarks by offering a Canadian perspective. He noted that although the economic weight of G7 countries has declined, they still retain important agenda setting power on global issues. An important example was Canada’s proposal to create a Gender Equality Advisory Council as hosts of the 2018 G7 meeting, which has now become a permanent feature. He also pointed out that the G7 can play a big coordination role during times of crises, which has been critical in responding to the war in Ukraine. He expressed hope that universities will contribute to the G7 by identifying long-term issues and gaps in the agenda, communicating early with host countries to shape the priorities of future meetings, and helping to compensate for the lack of a G7 secretariat by communicating G7 priorities and values, particularly to countries in the global south. 

The second session of the symposium focused on key issues in G7 global governance. Louis Pauly (J. Stefan Dupré Distinguished Professor of Political Economy at the University of Toronto and former Interim Director of the Centre for the Study of Global Japan), chaired the session. The panelists were Satoshi Ezoe (Director, Global Health Strategy Division, Ministry of Foreign Affairs, Government of Japan), Miranda Schreurs (Chair, Climate and Environmental Policy, Bavarian School of Public Policy, Technical University of Munich), and David Welch (University Research Chair, University of Waterloo and Balsillie School of International Affairs). The panelists discussed issues such as the global health architecture in the aftermath of COVID-19, climate change policy in light of the energy security challenges created by the war in Ukraine, and the future of the world order along with potential flashpoints, such as Taiwan and the South China Sea.

The third session focused on innovation, education, and human capital as important priorities for the G7 as well as a major area in which universities can make an important contribution. The session was chaired by Rie Kijima (Assistant Professor at University of Toronto and Director, Initiative for Education Policy and Innovation at the Centre for the Study of Global Japan). The panelists were Keiko Honda (former CEO of the Multilateral Investment Guarantee Agency and Adjunct Professor, Columbia School of International and Public Affairs), Moussa Blimpo (Assistant Professor, Munk School of Global Affairs & Public Policy), and Elizabeth Buckner (Assistant Professor, Ontario Institute of Studies in Education, University of Toronto). The panelists covered topics such how education can support diversity and inclusion in the workplace, scaling up the role of G7 universities to overcome education challenges in the global south, and how to reestablish the legitimacy of G7 countries to speak out on global issues.

The second keynote of the symposium was delivered by Ron Daniels, the President of Johns Hopkins University. Drawing on his book, What Universities Owe Democracy, Daniels emphasized the role universities play in sustaining democratic norms during a period of global democratic backsliding. He observed that autocrats sometimes more readily recognize the importance of universities, citing the expulsion of Central European University by Viktor Orbán in Hungary. He observed that both liberal democracies and universities place a premium on freedom of speech and thought, tolerance for dissent, and the free flow of information and ideas. He argued that universities should refocus their attention on educating students in the values, virtues, and philosophical foundations of liberal democracy and presented some of the initiatives he has implemented at Johns Hopkins in support of these objectives.

The fourth session of the symposium focused on how external actors can engage and influence the G7 agenda, with an eye to elevating the role of the U7+ Alliance as a mechanism through which universities can shape the course of future policymaking. The session was chaired by Gwen Burrows (Assistant Vice-President, International Engagement & Impact, University of Toronto) and included the following panelists: Christopher Sands (Director, Wilson Center Canada Institute), Atsuko Miwa (Co-Chair, W7 Japan 2023), Jean-Christophe Martin (Director, Institute of Peace and Development, Université Côte d’Azur; UNESCO Chair: Peace and Development through Law), Jonathan Fried (Senior Advisor with Bennett Jones, LLP and the Albright Stonebridge Group), Joseph Wong (Roz and Ralph Halbert Professor of Innovation, Munk School of Global Affairs & Public Policy; Vice-President, International, University of Toronto), and Motohiro Tsuchiya (Vice-President for Global Engagement, Keio University). The session featured a lively debate on topics such as: How can universities contribute to addressing global challenges through multilateral governance? How can the U7+ become a more influential player in the G7 process? Given the specific priorities and possibilities for 2023, how can universities contribute? Joe Wong concluded the symposium with a summary of his observations and an agenda for the future. 

Following the symposium, University of Toronto President Meric Gertler traveled to Tokyo and presented the U7+ Tokyo Statement on Peace and Security to Prime Minister Kishida Fumio, encouraging political leaders to leverage the power of education and research in the global mission to advance peace and security. The Centre for the Study of Global Japan thanks the participants, co-hosts, and audience members that made this event a great success.

Source: Munk School

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Japan’s Nikkei Ends Higher on Hopes for Continued Boj Ultra-Easy Policy https://policyprint.com/japans-nikkei-ends-higher-on-hopes-for-continued-boj-ultra-easy-policy/ Mon, 03 Jul 2023 10:53:00 +0000 https://policyprint.com/?p=3268 Japan’s benchmark Nikkei stock index closed higher Tuesday on hopes that the Bank of Japan (BOJ) will maintain…

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Japan’s benchmark Nikkei stock index closed higher Tuesday on hopes that the Bank of Japan (BOJ) will maintain its ultra-easy monetary policy following the release of downbeat wage data, while eased concerns over the U.S. economy added support.

The 225-issue Nikkei Stock Average added 289.35 points, or 0.90 percent, from Monday to close the day at 32,506.78, marking its highest closing level since July 19, 1990.

The broader Topix index, meanwhile, gained 16.49 points, or 0.74 percent, to finish at 2,236.28, to book its highest finish since Aug. 1, 1990.

Dealers said that data released Tuesday showing that along with household spending in Japan dropping 4.4 percent in April from a year earlier, wages were also on a downtrend.

They highlighted data showing wages slumped 3.0 percent in April, extending declines for the 13th consecutive month and noted that wages remain behind price rises for commodities and energy prices, with inflation forcing households to make some significant cuts in spending, like outlays for education.

As a result of the downbeat data, market strategists said the likelihood remained that the Bank of Japan would stay pat on its ultra-easy monetary policy, which bolstered buying confidence, despite the BOJ’s stance being in stark contrast to other major global central banks, which have tightened policies to combat oppressive inflation.

Brokers here also pointed to a growing view the U.S. Federal Reserve may forego a rate hike at the conclusion of its next policy-setting meeting, as some data, such as employment figures, have supported the view the U.S. economy may be improving.

But concerns remained, they said, as recent U.S. economic data has been choppy, with the Institute for Supply Management’s non-manufacturing data for May missing median market expectations, for example.

“A big reason why Japanese stocks are sought by global investors is because the improving situation in the United States has reduced downside risks in the world’s largest economy,” Koichi Fujishiro, a senior economist at Dai-ichi Life Research Institute, was quoted as saying.

Heavily weighted components reversed earlier losses and helped prop up the broader market, with Uniqlo clothing chain operator Fast Retailing gaining 1.7 percent.

Trading company Mitsui & Co. climbed 3.9 percent and was another notable winner, while Seven & i Holdings jumped 2.6 percent, following news it will revamp its delivery service to its stores to make it more efficient and profitable.

Banking shares lost ground, however, on reports regulators in the U.S. may increase capital requirements for lenders, in the wake of a number of U.S. bank failures.

Mizuho Financial Group lost 0.5 percent, while Mitsubishi UFJ Financial Group dropped 0.6 percent. Sumitomo Mitsui Financial Group, meanwhile, ended 0.7 percent lower.

By the close of play, wholesale trade, mining and iron and steel-linked issues comprised those that gained the most.

The turnover on the Prime Market on the second trading day of the week came to 3,450.13 billion yen (24.78 billion U.S. dollars). 

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Japan’s Central Bank Maintains Ultralow Rates at Policy Meeting https://policyprint.com/japans-central-bank-maintains-ultralow-rates-at-policy-meeting/ Tue, 27 Jun 2023 22:20:27 +0000 https://policyprint.com/?p=3229 The Bank of Japan (BOJ) decided on Friday to maintain its ultralow interest rate policy as it concluded…

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The Bank of Japan (BOJ) decided on Friday to maintain its ultralow interest rate policy as it concluded its two-day policy-setting meeting, holding the view that it requires time to achieve its 2 percent inflation target.

The central bank will keep its short-term benchmark interest rates at minus 0.1 percent, while continuing to guide 10-year Japanese government bond yields to around zero percent within the range of plus and minus 0.5 percentage points.

The BOJ added that it will continue to purchase 10-year bonds at a fixed rate of 0.5 percent every business day in principle, keeping up its fight to defend the yield cap to keep borrowing costs extremely low and support the economy.

The BOJ said in a statement it will “patiently” continue with monetary easing in order to achieve its target of 2 percent inflation accompanied by wage increases “in a sustainable and stable manner.”

BOJ Governor Kazuo Ueda has stressed the need to stick to monetary easing based on the central bank’s projections that inflation will slow down later this year and that its 2 percent target will not likely be achieved stably.

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Japan, Philippines Agree to Sharply Boost Defense Ties https://policyprint.com/japan-philippines-agree-to-sharply-boost-defense-ties/ Sat, 17 Jun 2023 19:24:00 +0000 https://policyprint.com/?p=3174 The leaders of Japan and the Philippines agreed Thursday to sharply boost their defense ties, allowing Japanese troops…

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The leaders of Japan and the Philippines agreed Thursday to sharply boost their defense ties, allowing Japanese troops greater access to Philippine territory, as tensions rise in Asia amid China’s growing influence.

Philippine President Ferdinand Marcos Jr. is visiting Japan shortly after he and U.S. Secretary of Defense Lloyd Austin reached an agreement on allowing the United States more access to Philippine military bases to keep China’s territorial ambitions in check.

The defense arrangement signed by Marcos and Japanese Prime Minister Fumio Kishida will allow Japanese troops to join training exercises to respond to natural disasters and humanitarian needs in the Philippines. The agreement is seen as a step toward broader military cooperation and could lead to similar agreements between Japan and other Southeast Asian nations.

Kishida said the two countries will continue talks to further strengthen and streamline their militaries’ joint exercises and other operations, while seeking to expand the transfer of Japanese defense equipment and technology to the Philippines and strengthen cooperation trilaterally with the United States.

“After our meeting, I can confidently say that our strategic partnership is stronger than ever as we navigate together the rough waters buffeting our region,” Marcos said at a joint news conference with Kishida. “The future of our relationship remains full of promise as we continue to deepen and expand our engagements across a wide range of mutually beneficial cooperation.”

The new defense agreement allows Japan to deploy its forces for humanitarian missions and disaster response in the Philippines, an arrangement Japan hopes to eventually upgrade to include joint military training, cooperation and mutual visits, Japanese officials said.

The two leaders “resolved” to increase the defense capabilities of their own countries and strengthen overall security cooperation with reciprocal port calls and aircraft visits and the transfer of more defense equipment and technology, according to a joint statement released later Thursday. It said Japan will transfer air surveillance radar systems to the Philippines and provide related personnel training.

They “expressed serious concerns about the situation in the East and China Seas and strongly opposed the actions including force or coercion that may increase tensions,” the statement said.

Kishida and Marcos also agreed to strengthen cyber and economic security. They also confirmed Japan’s continuing assistance to the Philippine coast guard in reinforcing its capabilities, including the improvement of port facilities at Subic Bay, a former U.S. naval base.

Last year, the two island nations held their first four-way security talks among their defense and foreign ministers and agreed to strengthen their defense ties.

Kishida’s government in December adopted key security and defense upgrades, including a counterstrike capability that breaks from Japan’s post-World War II principle of self-defense only, while also doubling defense spending in five years.

Under the new strategy, Japan will also use development assistance to support poorer nations as they strengthen their maritime safety and other security capabilities. It’s meant to counter China’s growing regional influence.

“President Marcos’s visit here gives us impetus for Japan and the Philippines to further elevate our cooperation in recent years to even higher levels as we contribute to the peace and stability of the region and the international community,” Kishida said at the news conference.

Kishida announced 600 billion yen ($4.6 billion) in economic assistance from the public and private sector for the Philippines through March 2024, primarily to improve infrastructure, such as construction of a commuter railway, and disaster response. The two sides also signed an agreement to work together in information and communication technology and to cooperate in energy security and industrial development.

“When you think about the stability in the region and sea lanes and deterrence of China’s maritime assertiveness, deepening cooperation with the Philippines is crucial for the security of Japan and the United States,” said Heigo Sato, a Takushoku University professor and expert on defense and security. “Having access to bases in the Philippines would expand strategic options for the Japan-U.S. alliance” in case of an emergency involving Taiwan and China, he said.

Japan has been expanding its military cooperation in recent years beyond its main ally, the United States, forging close ties with Australia and other countries in the Asia-Pacific region and Europe.

Marcos met with Emperor Naruhito and Empress Masako ahead of his talks with Kishida and invited the imperial couple to visit the Philippines. He said he plans to join talks with trade and business officials from the two sides before returning home on Sunday.

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President of Laos To Attend “Future of Asia” Conference in Japan https://policyprint.com/president-of-laos-to-attend-future-of-asia-conference-in-japan/ Thu, 15 Jun 2023 19:10:00 +0000 https://policyprint.com/?p=3162 President Thongloun Sisoulith will attend the Future of Asia Conference in Tokyo, Japan which is being held under…

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President Thongloun Sisoulith will attend the Future of Asia Conference in Tokyo, Japan which is being held under the slogan, “Leveraging Asia’s Power to Confront Global Challenges” from 25-26 May.

The event will also be attended by other regional dignitaries, such as Lawrence Wong, Deputy Prime Minister of Singapore, Tran Luu Quang, Deputy Prime Minister of Vietnam, Ranil Wickremesinghe, President of Sri Lanka, Don Pramudwinai, Deputy Prime Minister of  Thailand and Fumio Kishida, Prime Minister of Japan.

The conference will discuss a range of topics from the importance of recognizing diversity in Asia, drifting global order and how that affects Asia and the role of innovation in promoting women’s participation and leadership in society.

Future of Asia is an international gathering where political, economic, and academic leaders from the Asia-Pacific region offer their opinions frankly and freely on regional issues and the role of Asia in the world.

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Roundup: Japan’s Nikkei Ends Higher as Boj Sticks to Policy, Inflation Outlook Weighs https://policyprint.com/roundup-japans-nikkei-ends-higher-as-boj-sticks-to-policy-inflation-outlook-weighs/ Wed, 31 May 2023 17:05:00 +0000 https://policyprint.com/?p=3070 Japan’s benchmark Nikkei stock index closed higher Friday, as with some solid domestic earnings, the Bank of Japan…

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Japan’s benchmark Nikkei stock index closed higher Friday, as with some solid domestic earnings, the Bank of Japan staying pat on its ultra-easy policy was well received.

The 225-issue Nikkei Stock Average gained 398.76 points, or 1.40 percent, from Thursday to close the day at 28,856.44, marking its highest closing level since Aug. 19, 2022.

The broader Topix index, meanwhile, gained 24.97 points, or 1.23 percent, to finish at 2,057.48.

Dealers here highlighted the BOJ at the conclusion of its two-day policy-setting meeting on Friday opted to set short-term interest rates at minus 0.1 percent while guiding 10-year Japanese government bond yields to around zero percent, under its yield curve control program, in a widely expected move.

They added however the central bank saying that Japan’s core consumer prices in fiscal 2025 are now forecast to rise 1.6 percent from a year earlier, led to the yen’s retreat against its counterparts, as the bank is struggling to reach its long-held 2 percent inflation target in a stable manner.

“The core consumer price outlook was weaker than the market consensus, leading to yen selling. It seems difficult to find a way to end the ultra-loose policy,” Yukio Ishizuki, senior foreign exchange strategist at Daiwa Securities Co. was quoted as saying.

Japan’s central bank also said it will conduct a review of its monetary policy framework over the past decades from a “broad perspective” and it will spend the next year or so on completing the assessment.

From this perspective, some analysts said that it could be inferred the Japanese central bank was in no hurry to shift from its ultra-loose policy to lift its interest rates in line with its global peers.

They said the BOJ, under new chief new governor Kazuo Ueda, has maintained that the current inflationary pressure hammering the economy is transitory.

“The main message is that, of course, the BOJ will consider a change in monetary policy, but it will take a longer time. That has created some volatility in financial markets,” Masayuki Kichikawa, chief macro strategist at Sumitomo Mitsui Asset Management, was quoted as saying.

But the yen’s retreat was a boon for exporters who rely on a weaker yen to boost profits.

Export and technology issues finding favor on the yen’s decline included automakers Toyota Motor and Nissan Motor accelerating 1.8 and 2.4 percent, respectively.

Technology startup investor and Nikkei heavyweight Softbank Group climbed 3.0 percent, helping buoy the broader market, while consumer electronics giant Sony Group added 2.1 percent.

By the close of play, electric power and gas, machinery, and transportation equipment-oriented issues comprised those that gained the most.

The turnover on the Prime Market on the final trading day of the week came to 3,775.14 billion yen (27.82 billion U.S. dollars).

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