2024年

Economy

Deja Vu in Finance: The Rising Concern Over Foreign Currency Insurance in Japan’s Banking Sector

The financial industry is experiencing a sense of déjà vu reminiscent of the structured bond fiasco, as regional banks have come under scrutiny for the aggressive sale of structured bonds around 2020. The Financial Services Agency (FSA) of Japan issued business improvement orders to Chiba Bank, Chibagin Securities, and Musashino Bank in June last year, for practices that did not align with customer attributes or investment objectives. Despite the lucrative commissions from structured bonds, a shift in focus by the FSA towards the complex and high-risk nature of these products has led many banks to cease their sale. In the wake of structured bonds becoming a less viable option, financial...
Economy

The Philosophical Leaders Shaping Japan’s Corporate Future

On May 16, 2007, Kazuo Inamori, the visionary founder of Kyocera (1932-2022), delivered a lecture at the Tokyo Stock Exchange that would later be hailed as “The Legendary TSE Speech.” His profound insights into the essence of management and philosophy in business continue to be celebrated and passed down to this day. Inamori was invited to speak by then-Chairman of the Tokyo Stock Exchange, Taizo Nishimuro (1935-2017), who lamented the prevailing culture of materialism highlighted by incidents like the Livedoor scandal. Nishimuro, who had also served as the Chairman of Toshiba, requested Inamori to elucidate on “Why Philosophy is Necessary in Management.” Ironically, Nishimuro himself would later be implicated in...
Economy

Toyota’s Unprecedented Surge and the Quest for Visionary Leadership

In the world of automotive giants, Toyota’s performance is soaring to new heights. In 2023, it outpaced Volkswagen in global sales, securing the top spot for the fourth consecutive year. Supported by a weaker yen and increased production, Toyota announced a forecast for the fiscal year ending in March 2024 that is nothing short of spectacular. The company expects a net profit increase of 84% from the previous term, reaching 4.5 trillion yen, marking the first time a Japanese company has crossed the 4 trillion yen threshold. The announcement sent Toyota’s stock price skyrocketing on February 6, increasing its market capitalization by an astonishing 6.6 trillion yen in a single...
Politics

Japan’s Noto Peninsula Earthquake: A Reflection on Government Response and Challenges

The Noto Peninsula earthquake that struck the Noto region on New Year’s Day recorded a maximum seismic intensity of 7, causing extensive human and material damage. The following day, a tragic accident occurred on the runway of Haneda Airport, where a Japan Coast Guard aircraft carrying relief supplies for the disaster-struck area collided with a Japan Airlines plane, resulting in the death of five coast guard personnel. Amidst a turbulent start to the year, Prime Minister Fumio Kishida’s inadequate disaster response has rapidly drawn increasing criticism. The Political Landscape and Kishida’s Response Some LDP (Liberal Democratic Party) insiders suggested that the Noto Peninsula earthquake presented an opportunity for the Kishida...
Economy

The Stalemate in the Construction of the Linear Chuo Shinkansen in Shizuoka Prefecture

Introduction The Linear Chuo Shinkansen project, spearheaded by JR Central, faces significant challenges in Shizuoka Prefecture, particularly with the construction of the South Alps Tunnel. Governor Heita Kawakatsu, 75, is at the center of controversy, creating a tightening siege with his opposition to the project. This situation not only affects regional development but also has broader implications for Japan’s transportation infrastructure and disaster resilience plans. The Environmental Concerns and Governor Kawakatsu’s Stance Governor Kawakatsu has expressed concerns about the potential environmental impact of the tunnel construction, particularly on the Oigawa River flow and the South Alps’ ecosystem. His reservations have led to prolonged negotiations with JR Central, causing significant delays...
Politics

Evaluating Ibaraki Prefecture’s Simulation of a Nuclear Accident at Tokai No.2 Power Plant

Introduction Ibaraki Prefecture’s Tokai No.2 Nuclear Power Plant, surrounded by a population of 920,000 within a 30-kilometer radius, recently made headlines with the release of a “radiation dispersion simulation” in November last year. The simulation results have raised concerns about the preparedness and the adequacy of evacuation plans in the event of a severe nuclear incident. The Simulation and Its Implications Based on calculations by Japan Atomic Power Company, the simulation showed that in the event of a northeast wind, cities such as Mito downwind could see up to 170,000 people needing evacuation. This number surpasses the 160,000 people evacuated during the Fukushima nuclear disaster and could swell significantly when...