The annual spring wage negotiations in Japan, known as “Shunto,” are intensifying, marking a critical phase in the nation’s long battle against deflation. The Japanese Trade Union Confederation (Rengo) is demanding wage increases of over 5% across the board, with major sector unions adopting a bullish stance. Exporting giants, buoyed by a weaker yen, have steadily improved their earnings, aligning with the government, business leaders, and labor representatives in a January tripartite meeting to aim for wage hikes surpassing last year’s levels. While large corporations have somewhat aligned in their commitment to wage increases, the real challenge lies within small and medium-sized enterprises (SMEs). To uplift the Japanese economy, it’s...

As we venture deeper into the 21st century, Japan stands at a pivotal moment, possibly on the verge of adjusting its nominal interest rates upwards for the third time since the turn of the millennium. The discussion around the termination of Japan’s negative interest rate policy is gaining momentum, notwithstanding the view that negative interest rates have become more of a technical matter. Yet, the symbolic significance of such a policy shift cannot be understated. Balanced Risks in the Financial and Economic Landscape Introduced at the Bank of Japan’s monetary policy meeting in January 2016, the negative interest rate policy quickly became a major talking point, even making its way...

On December 8, 2023, the Nikkei Newspaper graced its front page with a bold announcement that caught many eyes: “Nikkei Digital Subscriptions Hit 1 Million.” This figure was hailed as a landmark achievement for Nikkei’s digital strategy, positioning it as a frontrunner in the digital transformation of the news industry. For the first time, a Japanese paid news outlet surpassed the one million mark. However, a closer look revealed a nuanced story beneath the headline. Digging Deeper into the Numbers The detailed breakdown showed that of the proclaimed one million, 890,000 were from the digital edition alone, with the remaining 110,000 attributed to various paid media subscriptions outside of the...

Inside the corridors of Japan’s Fair Trade Commission (FTC), a press release from Logic, a leading manufacturer and seller of nursing care record software, has caused quite a stir. On December 20th last year, Logic received a “caution” from the FTC for potentially violating the Antimonopoly Act through unfair trade practices related to the sales of its care system software. In a defiant response, Logic published its perspective on its website the same day, a move that has left the FTC seething with anger. Logic’s contentious act centered around its handling of care service software. Care service providers use “record software” to manage the details of the services they provide...

In a groundbreaking move that has resonated deeply within Japan and beyond, Japan Airlines (JAL) announced the appointment of Mitsuko Tottori, a 59-year-old executive vice president and former cabin attendant, as its new president, effective April 1. This historic decision marks the first time a major airline has named a woman with a cabin crew background to its top post, drawing widespread acclaim and aligning with Prime Minister Fumio Kishida’s administration’s push for women’s empowerment. Media outlets have unanimously heralded the emergence of a female president as a positive step forward. However, the road ahead for Tottori-led JAL is fraught with challenges. While tourism demand is gradually returning to pre-pandemic...

Starting April, Nippon Steel embarks on an unprecedented governance model in its history, with Eiji Hashimoto (68) passing the presidential baton to Masashi Imai (60), yet retaining overarching control as Chairman and CEO. This move signifies not a shadow rule but a steadfast leadership, aiming to reclaim the title of the world’s leading steel manufacturer. Traditionally, in Nippon Steel and its predecessors, the CEO wielded full command, with chairpersons stepping back into broader, often civic roles. This departure from tradition by Hashimoto underscores a singular ambition: the resurgence as the global steel titan. The Path to Profitability: Even in Old Mills Hashimoto’s career at Nippon Steel started in 1979, during...

On January 8th in Las Vegas, ahead of the world’s largest technology expo, CES, South Korean tech behemoth Samsung Electronics held a press conference with a lofty vision: “AI for everyone.” However, amidst their presentation, a moment of unintended humor arose from the gathered journalists. A Blast from the Past Samsung’s executives confidently introduced “Ballie,” a spherical home robot designed to monitor homes, control smart appliances, and facilitate video conferences while owners are away. Yet, Ballie, initially unveiled at CES 2020 without ever hitting the market, was making a comeback four years later, prompting chuckles for its rehashed reveal. Further AI applications showcased by Samsung felt all too familiar, ranging...

At the helm of SOMPO Holdings (SHD), a leading figure in the insurance industry dubbed the “Don of Losses,” CEO and Chairman Kengo Sakurada has announced his resignation effective the end of March. This decision was revealed in a press conference on January 26th, following administrative actions by the Financial Services Agency (FSA) and the final report of an external investigative committee. When asked if his departure was a resignation of responsibility, Sakurada left the judgment to the media, lightly touching on “resulting responsibility” without showing deep remorse. Furthermore, the press conference left lingering doubts, particularly regarding Sakurada’s severance package. Sakurada stated his reason for stepping down was to not...

In a twist that feels all too familiar to those watching the construction industry, Shimizu Corporation, one of Japan’s leading construction giants, is facing an unprecedented crisis. Recently, the company announced a significant downward revision of its earnings forecast for the fiscal year ending March 2024, predicting an operating loss of 33 billion yen—a first since its listing. Although the final net profit will be salvaged through the disposal of cross-held shares, the operating loss marks a significant blow, primarily attributed to cost overruns in large-scale projects due to surging material and labor costs, with the construction division’s gross profit margin for completed projects plummeting to an astonishing negative 3.3%....

Once again, Toyota finds itself at a crossroads, grappling with a crisis that has exposed a lapse from its founding principles. On January 30th, Akio Toyoda, Chairman of Toyota Motor Corporation, made a profound apology in front of a throng of journalists, bowing deeply. This act of contrition came in the wake of revelations of misconduct in certification tests at Toyota’s foundational company, Toyota Automatic Loom Works, following similar issues at Hino Motors and Daihatsu. “As the leader of the Toyota Group, it is my responsibility to spearhead transformation,” Toyoda declared, marking his first prominent engagement in management affairs since stepping down as president, choosing the symbolic venue of the...