Japan 2024 by CorD Magazine

SPECIAL EDITION 2024

JAPAN

Forging the Future

HYBRID ELECTRIC PLUG-IN HYBRID

NEW TOYOTA C-HR Average fuel combined consumption for Toyota C-HR hybrid: 4.7 to 5.1l/100km, CO2 emissions: 105 to 106 g/km, NOx emissions: 0,0036 to 0,0049g/km. Official exhaust emission level EURO 6. More detailed information on new passenger vehicles can be found in the Guide to Fuel Economy, CO2 Emissions and Air Pollutants, which is available free of charge from the passenger vehicle supplier’s point of sale. CO2 is the main greenhouse gas responsible for global warming. Emissions of polluting substances into the air from traffic significantly contribute to the deterioration of the air condition, especially the cross-border elevated concentrations of ground ozone, particles PM10, PM2.5 and nitrogen oxides. For all details visit www.toyota.rs or contact Toyota retailers.

EVERY CHOICE COUNTS

Content 23 V UKAŠIN

RADULOVIĆ

partner at Heliant Medicine is Facing Transformation

18 M ASAHIRO UEKI

JICA Balkan Office Chief Representative Sharing Japan’s Rich Development Experience

08 COMMENT

BJELETIĆ

Director, Alpha Imaging Knowledge in the Service of Better Diagnosis

26 O LIVER

Forging Futures

LEPORI

Executive Director of the Japanese Business Alliance in Serbia Cooperation Takes Centre Stage

10 H .E. AKIRA IMAMURA

Ambassador of Japan to Serbia Farewell “Japanac”

24 P REDRAG

14 G ORAN PEKEZ

BoD Chairman of the Japanese Business Alliance in Serbia Comprehensive Green Transition Support

20 L INAS LIBIKAS JTI General Manager for the Western Balkans Exploring Excellence

22 N IKOLA

PAVLOVIĆ

Konica Minolta Serbia Managing Director Greatest Achievements Yet to Come

EDITOR IN CHIEF Neda Lukić n.lukic@aim.rs DESIGN Slađan Radosavljević Zoran Perović design@aim.rs PHOTOS Zoran Petrović COPY EDITOR Mark Pullen

PROJECT MANAGERS Biljana Dević b.devic@aim.rs Mihailo Čučković m.cuckovic@aim.rs Nataša Novković n.novkovic@aim.rs OFFICE MANAGER Svetlana Petrović s.petrovic@aim.rs FINANCE Dragana Skrobonja finance@aim.rs

EXECUTIVE DIRECTOR Maja Vidaković m.vidakovic@aim.rs CEO Ana Novčić a.novcic@cordmagazine.com PUBLISHER Ivan Novčić i.novcic@aim.rs

PRINTING Rotografika d.o.o. Segedinski put 72, Subotica JAPAN 2024 Published by: alliance international media Prote Mateje 52, 11111 Belgrade 17, PAK 125806, Serbia Phone: +(381 11) 2450 508

E-mail: office@aim.rs; office@cordmagazine.com www.aim.rs; www.cordmagazine.com ISSN: 2560-4465 All rights reserved alliance international media 2023 The views expressed in this publication are those of the presenter; they do not necessary reflect the view of publications published by alliance international media THIS PUBLICATION IS FREE OF CHARGE

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Japan 2024 30 B ILATERAL TRADE & INVESTMENT Serbia Attracts Japanese Giants

38 J BAS ACTIVITIES 2023

34 S ETSUKO THURLOW

A Life of Resilience, Activism, and Achievement

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42 E XPO 2025 OSAKA, KANSAI

A Glimpse into the ‘Reconnect the World’ project

COMMENT

Forging the Future How are success stories crafted? They emerge through the collective efforts of individuals who share common ideas and values. Japan’s Western Balkans Cooperation Initiative, inaugurated in 2018 by late Prime Minister Shinzo Abe, exemplifies such a narrative, yielding lasting results that possibly surpass the expectations of its founders

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apan and Serbia maintained robust bilateral relations for a considerable period, yet they seemed an incongruent pair when it comes to economic cooperation. The Japanese economy and companies were significantly more advanced, while their Serbian counterparts lagged behind. Today, by leveraging Japanese expertise and Serbia’s capacity to adopt advanced solutions in the green transition, there are numerous discussions and ventures to be explored at the levels of the state, companies and civil society.

Japan and Serbia could forge more successful collaborations by capitalising on Japan’s expertise and Serbia’s potential in green transition and beyond While the green transition is pivotal, it is not the exclusive realm of cooperation. Discussing the success of Japanese companies in Serbia, the Japanese ambassador suggests that new ventures might not be surprising. Many institutions, associations and individuals, motivated by goodwill, contribute to the successful collaboration between Serbia and Japan, spanning everything from academia to innovation and sustainable environmental initiatives. One notable collaboration is the engagement of JICA (Japan International Cooperation Agency) in the Western Balkans

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and Serbia. However, due to limitations of space, we have only been able to provide a brief overview of the plethora of activities in which JICA is involved. Collaboratively, JICA, the Japanese Embassy in Serbia, and JBAS (Japan Business Alliance of Serbia) work to fortify cooperation between Japanese and Serbian businesses. Areas of potential future cooperation encompass exchanges of knowledge, technology transfers and experience in developing the institutional framework required for green solutions. Notably, Japanese companies, unlike other foreign investors, are currently less engaged beyond Vojvodina. However, clear prerequisites for Japanese expansion in Serbia include excellent infrastructure and a skilled workforce. With robust investments in Serbia’s infrastructure and vocational training, hosting Japanese investments on the other side of the Sava may become a reality over the next few years. Prior to this, Japanese interest may align with other states and companies supporting the development of EXPO 2027, representing one of Serbia’s most advantageous development plans. It was 20 years ago that Serbia received 93 Yellow buses from Japan, which came to symbolise both Japan’s support and Serbia’s vulnerabilities at the time. As highlighted by current Japanese Ambassador in Belgrade, H.E. Akira Imamura, Belgrade and Serbia have since made significant strides and today marks the dawn of new dreams and plans.

INTERVIEW | H.E. AKIRA IMAMURA AMBASSADOR OF JAPAN TO SERBIA

Farewell “Japanac” The 93 yellow buses that were donated by Japan to the City of Belgrade in 2003, and which are affectionately referred to as “Japanac” [Japanese guy], have become well known to Belgraders over the 20 years that they’ve remained in use, thanks to the care and maintenance they’ve received. That’s why the Japanese Embassy in Belgrade awarded a 2022 Ambassador’s Commendation to a service engineer from the Public transport Maintenance Department based in New Belgrade. “It is a pity that these “Japanac” buses, which have come to symbolise friendship between the two countries, are heading into retirement, but it would be nice if we could organise an event, in cooperation with the City of Belgrade, to thank them for their many years of service” ~ Akira Imamura By Ljubica Gojgić

hile these attractive yellow buses, which have for two decades represented one of the most visible symbols of the friendship between Japan and Serbia, are being decommissioned, Japan’s new ambassador to Serbia discusses plans to continue bilateral cooperation with Serbia. Ambassador Imamura reminds us that numerous Japanese companies have also arrived in Serbia during these past 20 years, with the country’s close proximity to the EU market, as well as its “excellent human resources”, having attracted Japanese

investors. Apart from auto parts companies that supply the automotive industry in the West, Japanese companies operating in the IT, pharma and energy sectors are also interested in cooperation with Serbia... And the story of city transport buses hasn’t necessarily come to an end either, as Ambassador Imamura explains in this interview for CorD Magazine. “I am sure that Belgrade will work more on the provision of sustainable and eco-friendly public services, including transportation, and there are Japanese companies that are ready to provide a contribution.” JAPAN 2024

Your Excellency, you arrived last summer to begin your term as ambassador of Japan in a city that you first got acquainted with back in 2004. How does today’s Belgrade look to you and how are you acclimatising to life in Serbia? — I visited Belgrade briefly on a business trip in 2004. Compared to that time, today’s Serbia has today achieved significant economic development. The change I felt most strongly was the increase in the number of skyscrapers and shopping centres. I was particularly surprised by the scale of the redevelopment of the Sava river Waterfront. The number of foreign companies, including Japanese firms, has also been increasing. I am happy to see this as proof that peace has taken root in Serbia and that the investment environment has improved greatly. My wife and I have been in Serbia for six months now, and we have got used to life in Serbia. We heard that the theme of Expo 2027 in Belgrade is “Power of Play, Play Music, Play Sports”, which I think is a perfect theme for Serbia. The other day we also enjoyed traditional Serbian music at a kafana tavern. We are visiting many places in Serbia in order to better understand the history and culture. We saw the cultural rise of medieval Serbia at the Studenica Monastery and learned the history of the Karađorđević dynasty at Topola. People in Serbia are friendly. I have a lot of opportunities to meet people from various fields and we are able to exchange opinions very openly. In particular, I feel as though there are many capable people in Serbia who are fluent in English, which makes communication easier. You’ve said that you will focus on implementation of Japan’s Western Balkans Cooperation Initiative, which was launched in 2018 by late Prime Minister Shinzo Abe. Which specific projects will you insist on? — Late Prime Minister Abe launched “the Western Balkans Cooperation Initiative” during his visit to Serbia in 2018. It consists of two pillars: support for reforms in the Western Balkans, including Serbia, toward EU accession; and the promotion of regional cooperation. Six years after its launch, this initiative has become even more effective as the region is developing. Speaking of the first pillar, support for reforms toward EU accession, Japan wants a strong and united Europe, as the EU is our strategic partner. Serbia’s accession to the EU is important for the stability and prosperity of Europe as a whole and the international community. In order to support this process, Japan has been implementing the SME Mentoring Programme in the Western Balkans for many years, aimed at improving the governance of SMEs using Kaizen methods and othcordmagazine.com

EU Speaking of the support for reforms toward EU accession, Japan wants a strong and united Europe, as the EU is our strategic partner

INVESTMENTS The success of these Japanese companies in Serbia has attracted the interest of other Japanese companies and I would expect further investments to follow

MEDIA Japan learned from our own mistake and achieved a mature and stable postwar democracy in which the media play a crucial role; the media has even been called the fourth branch of power

er approaches. Investments by Japanese companies also contribute to Serbia’s economic development and political stability, and Japan has been supporting them as it contributes significantly to creating the necessary conditions for Serbia’s EU accession. In the political field, we assisted in conducting a seminar in November last year for Serbian media representatives on media reform, which is one of the challenges facing Serbia’s accession. In the second pillar of the Western Balkans Cooperation Initiative, various efforts are being exerted to promote regional cooperation. From the second half of this year, a Japanese expert will be sent to Serbia to strengthen cooperation among the countries of the region through the promotion of tourism. The project aims to promote tourism in the Western Balkans by providing advice on tourism strategies, training relevant personnel, promoting knowledge and sharing experience within the region, as well as implementing pilot projects. Tourism development is also aligned with the Open Balkan initiative advocated by President Vučić, as it promotes mutual understanding in the region and encourages people-to-people exchanges. You’ve noted that high-level political and economic visits will contribute to strengthening bilateral relations in the period ahead. Could you tell us about any specific plans? — Over recent years, the visits of high officials between the two countries has become more active: Prime Minister Abe’s visit to Belgrade in 2018, accompanied by representatives of the Japanese business community, led to the expansion of bilateral relations, including increases in new Japanese investment. From the Serbian side, Prime Minister Brnabić has visited Japan twice: to attend the Ceremonies of the Enthronement of His Majesty the Emperor (2020) and to attend the state funeral of Prime Minister Abe (2022). They were followed by last year’s visit of Ms Đedović Handanović, Serbian Minister of Mining and Energy. Since Foreign Minister Kono visited Serbia in 2019, we believe it would also be possible for the Serbian Foreign Minister to visit Japan this year. Inter-parliamentary exchanges are also important. Current Japanese Foreign Minister, Yoko Kamikawa, visited Belgrade in 2019 as a member of the Japanese parliamentary delegation to the IPU Congress held in Belgrade. When the parliamentary friendship group for Japan is established at the Serbian National Assembly, following the elections held last December, we would like to promote exchanges with its Japanese counterpart. Multiple Japanese companies operate in Serbia, which they find interesting thanks to its 11

close proximity to the European single market. Have their experiences prompted other companies to contact you for advice and to enquire about whether to invest in Serbia? — The recent increase in investment in Serbia by Japanese companies is due not only to geographical characteristics, i.e., to Serbia’s proximity to the EU market, but also to the fact that Japanese companies highly value the Serbian government’s policy of actively promoting foreign investment and its excellent human resources, with high language skills. Some examples of large investments by Japanese companies in recent years include Toyo

Serbia is planning to participate in the OsakaKansai Expo in 2025, which is expecting to attract 28 million visitors. This will provide an excellent opportunity for Serbia to promote the attractiveness of the country Tires’ plant in Inđija, opened in December 2022, and Nidec’s plant in Novi Sad, opened in May 2023. As they showed, automotive-related investments are continuing to rise. This is partly due to the German auto industry’s request to its suppliers to produce auto parts around Europe in order to avoid supply chain risks triggered by the Covid-19 pandemic and other factors. The success of these Japanese companies in Serbia has attracted the interest of other Japanese companies and I would expect further investments to follow. Which areas of the Serbian economy are of the most investment interest to Japanese companies? — As I just mentioned, interest in automotive-related areas is prominent, but other areas – such as the renewable energy sector – are also promising. In Vinča, Japanese and French compa-

nies are jointly investing in the Belgrade Energy-from-Waste Project, which aims to generate electricity by utilising waste from Belgrade households, with the goal of covering 10% of the heat needs and 5% of the electricity demands of the city of Belgrade. There is also potential in the biotech and IT sectors, which the Serbian government is focused on. Takeda Pharmaceuticals has already signed an MoU with the Serbian government for research on AI-based diagnostic technology for rare diseases, as part of the Bio4 Campus Project. Many people point out that Japanese investment will not only transfer technology, but will also bring corporate ethics, corporate culture and the concept of corporate social responsibility, including environmental protection. It will thus contribute to the development of the human resources required for Serbia’s sustainable development and EU accession. I understand that President Vučić is also fully aware of the importance of high-quality investment. Our Embassy, in cooperation with the Serbian government, would like to support the enhancement of the investment environment and promote further investments by Japanese companies. You obviously pay great attention to supporting the media, via the Japan International Cooperation Agency, JICA. You are supporting the work of RTK in Pristina, particularly the channel broadcasting in Serbian, while you recently also organised a gathering with media representatives in Belgrade to discuss election reporting. Do you have the impression that many of the challenges confronting journalists are the same in both countries? — Japan has been supporting Serbia in its various reforms toward EU accession, and as part of this support, a seminar on media freedom during election campaigns was held in Belgrade last November. We chose the topic of media freedom because it is one of the cornerstones of democracy, in the belief that Japan’s experience would be beneficial to Serbia’s reforms. Talking about Japan’s democracy, we witnessed its development in the 1920s, but it was disrupted in the 1930s due to the rise of militarism, and we paid a huge price by resorting to war. Japan learned from our own mistake and achieved a mature and stable postwar democracy in which the media play a crucial role; the media has even been called the fourth branch of power. However, as JICA Senior Advisor Keiichi Hashimoto, a former journalist, noted at this seminar, the Japanese media hasn’t always been perfect in terms of media reporting on elections. There were cases of politically biased reporting during pre-elecJAPAN 2024

tion periods, which became a problem afterwards. As discussed in the seminar, it is important for the media of any country to be impartial on political opinions and to report facts objectively. JICA is implementing a project to support the public broadcaster, Radio Television Kosovo (RTK), by establishing branch offices in Prizren and Mitrovica, developing internal standards for fair and unbiased programme production, including broadcasts in the Serbian language, and utilising an archive system to accumulate video material that can be used for programme production. The city transport buses that were donated by Japan and have served, for the past 20 years, as one of the most recognisable symbols of the friendship between the two nations are set to disappear from the streets of Belgrade soon, as they begin a well-deserved retirement. Are you ready to send them on their way? — The 93 yellow buses donated by Japan to the city of Belgrade in 2003, which are affectionately referred to as “Japanac”, have been well known among Belgraders and have been in use for 20 years thanks to their careful use and maintenance. In 2022, the Japanese Embassy awarded the Ambassador’s Commendation to a service engineer belonging to the Maintenance Department at the garage in New Belgrade. It is a pity that “Japanac” buses, as symbols of friendship between our two countries, are going to retire, but it would be nice if we could organise an event in cooperation with the Belgrade City government to thank them for their many years of service. I am sure that Belgrade will work more on the provision of sustainable and eco-friendly public services, including transportation, and there are Japanese companies that are ready to make a contribution. In three years, Belgrade is going to attract people from all over the world for the 2027 Expo, and we would like to support Belgrade in showcasing its sustainable development efforts. You will have noticed that Japanese pop-culture is popular among young people in Serbia, while the people of Japan know about Serbia’s Piksi and Novak Đoković. Do you plan to expand the sphere of mutual recognition and what would you like to present in Serbia from Japan and vice versa? — I have met many fans of Japan in Serbia and am pleased to see the popularity of Japanese pop-culture, such as anime and manga, especially among young people. We are aware that many of them are interested in learning the Japanese language. For them, e-learning site Minato is a perfect tool for studying the Japanese language. Please check it out. cordmagazine.com

On the other hand, I also feel that both traditional and contemporary Japanese culture are not yet fully understood in Serbia. In terms of traditional culture, we hope that cultural activities that are popular in Japan, such as tea ceremonies and ikebana flower arrangement, will become more familiar to the Serbian people. In the area of contemporary culture, we would like to introduce more Japanese movies and literature. The Embassy of Japan organises cultural events throughout the year across various parts of Serbia, so I would like to encourage people to visit our events. Serbia is known in Japan as a country that’s good at sports. Japanese martial arts, such as karate and judo, are also popular in Serbia. I find that the spirit of Japanese martial arts, which is to show respect even to competitors, is widely shared in this country. In addition to martial arts, we hope to increase sports exchanges through sporting organisations in our countries. When it comes to the food culture in Japan, you can buy Serbian dishes mućkalica and paprikaš in boil‐

Many people point out that Japanese investment will not only transfer technology, but will also bring corporate ethics, corporate culture and the concept of corporate social responsibility, including environmental protection in‐the‐bag style. The Serbian Embassy in Tokyo provided advice on their production. There are a number of spa facilities in Serbia that are similar to Japanese “onsen”, but they are not so well recognised in Japan. On the other hand, Serbia is planning to participate in the Osaka-Kansai Expo in 2025, which is expecting to attract 28 million visitors. This will provide an excellent opportunity for Serbia to promote the attractiveness of the country. I also hope that Serbian people will take this opportunity to visit Japan more often and experience the real Japan. Young people can take a “pilgrimage” to see their favourite anime and manga (i.e., to visit the locations of scenes in manga and anime) and something they have heard or read about related to Japan. I would like to exert every effort to further develop the friendly relations between our two countries as we approach 2032’s 150th anniversary of the friendship between Japan and Serbia. 13

INTERVIEW | GORAN PEKEZ BOD CHAIRMAN OF THE JAPANESE BUSINESS ALLIANCE IN SERBIA

Comprehensive Green Transition Support Collaboration between Serbian and Japanese companies can offer not only technological solutions, but also transfers of knowledge, workforce training and capacity building for the local industry in the field of the green economy he Japanese Business Alliance in Serbia (JBAS) last year dedicated much of its efforts to furthering the green transition, which should come as no surprise given that many JBAS member companies are interested in providing innovative solutions for Serbia’s green economic transition. We spoke with JBAS Board of Directors Chairman Goran Pekez to discuss what Japanese companies can offer specifically in this domain. “Japanese companies can provide a significant contribution to Serbia’s green economic transition through their innovative technologies, sustainable energy expertise and experience in the efficient management of resources,” explains our interlocutor. “JBAS members are leaders in renewable energy sources like solar, wind and hydroelectric power plants. Their technological solutions can help Serbia reduce its dependency on fossil fuels and contribute to a cleaner energy sector.” Pekez also notes that Japanese expertise in optimising energy systems and smart energy consumption solutions can assist Serbia in reducing greenhouse gas emissions and increasing its energy efficiency. Furthermore, Japanese companies are known for their high-quality infrastructure and can offer sustainable solutions for the construction and management of green infrastructure, including smart cities, sustainable transportation systems and environmentally friendly urbanisation. Japan also has successful recycling and waste management programmes. And, as Pekez explains, “sharing this knowledge with Serbia can help reduce the environmental impact and promote sustainable waste management practices. Collaboration with Japanese companies can provide not only technological solutions, but also transfers of knowledge, workforce training and capacity building for the local industry in the field of the green economy. Establishing partnerships and exchanging experiences is crucial to achieving sustainable economic growth that has a min-

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imal impact on the environment and respects all other ESG (Environmental, Social and Governance) pillars that are integral to doing business.” From the JBAS perspective, is the institutional framework for Serbia’s green transition well-established, and what would you advise as good solutions based on Japanese experience? — From the perspective of Japanese experience, several key aspects could prove useful when developing an institutional framework for the green transition. Having a stable and clear regulatory framework is crucial to attracting investments in renewable energy and other environmentally sustainable projects. Transparency and predictability encourage long-term planning and investments. Encouraging the transition to renewable energy through various subsidies, tax incentives, or feed-in tariffs can serve to accelerate the green transition process. Public-private partnerships play a crucial role in the successful implementation of the green transition. Collaboration between the government, private companies and research institutions can contribute to achieving sustainable development goals efficiently. Investing in education and raising awareness of sustainability is important to support behavioural change and create a supportive atmosphere for sustainable practices among the population and the business sector. Promoting innovation in the green energy and sustainability sector can be achieved through support for research and development and technological incubators, but also incentives for startups in these areas. Sharing experiences with other countries, including Japan, can provide valuable information and support in crafting effective green transition policies. These guidelines can serve as a foundation for building a strong institutional framework in Serbia, taking into account the specificities of the market and the needs of the local economy. In order to achieve sustainable economic growth, it is essential to strike a balance between stimulating investment and preserving ecosystems. How would you assess the performance of your association’s members in 2023, and what are JBAS’s plans for 2024? — We are pleased with the achievements of our members in 2023. Persistence and dedication have led to significant accomplishments in various sectors. There is a noticeable continuing focus on innovation, sustainable business practices and social responsibility. cordmagazine.com

BALANCE In order to achieve sustainable economic growth, it is important to strike a balance between stimulating investments and preserving ecosystems

COLLABORATION I believe that, together with the Embassy of Japan in Serbia and organisations like JETRO and JICA, we will continue strengthening the friendship between our two countries and serve as a bridge connecting the two nations

INVESTMENTS The latest Japanese investments in Serbia focus primarily on sectors like renewable energy, energy efficiency, sustainable infrastructure and technologies that support environmentally friendly practices

Despite the challenges brought by the global economic situation, our association’s member companies have shown a high level of adaptability and flexibility. Many of them have recognised the need for an accelerated transition to sustainable business practices, leading to the implementation of numerous innovative solutions. Our association’s focus in 2024 will continue to strengthen sustainable business practices and support our members in achieving their sustainability goals, in line with the latest sustainability standards. We plan to intensify initiatives that support our members in reducing their environmental footprint, promoting social responsibility and enhancing innovation. Additionally, JBAS will continue to work on strengthening the existing ties between our members, by creating platforms for knowledge exchanges and supporting joint projects. We also plan to organise a series of events, conferences and educational programmes to enhance the knowledge and skills of our members. We believe that 2024 will be a crucial year for the further development of our association and contributing to the sustainable economic growth of our members. Can we expect new Japanese investments and, if so, in which sectors? — Yes, we are pleased to announce that there is significant interest in investing in Serbia among Japanese companies. Japanese companies have recognised the potential and opportunities offered by the Serbian market, especially in the context of the green transition and sustainable development. The latest Japanese investments focus primarily on sectors like renewable energy, energy efficiency, sustainable infrastructure and technologies that support environmentally friendly practices. Furthermore, we see interest in innovation, agriculture and industry sectors, where Japanese companies bring a high level of technological knowledge and experience. These investments not only contribute to Serbia’s economic development, but also strengthen bilateral cooperation and knowledge transfers. Why are numerous Japanese investments based in Vojvodina; and what are the prerequisites for the greater diversification of investments to encompass other parts of Serbia? — A significant portion of Japanese investments is directed towards Vojvodina for several key reasons, with one of the main factors being this province’s exceptionally favourable logistical position and robust infrastructure support. 15

Vojvodina is situated at the crossroads of critical transportation routes, offering an exceptionally advantageous geographical location. It is a region that has good access to key roads, railway lines and river transport routes, thus facilitating the transportation of goods and raw materials. It is relatively close to central European markets, which is appealing to Japanese companies that are aiming to efficiently distribute their products across the continent. Additionally, Vojvodina has excellent infrastructure support, including modern roads, railways and ports, thus providing a stable foundation for the transport and distribution of goods. This, in turn, enables the efficient flow of materials and finished products, which is essential to the operations of Japanese companies. Moreover, Vojvodina hosts well-developed industrial clusters, especially in the agriculture, food industry and automotive sectors. These clusters provide opportunities for companies to synergise and collaborate, which is another attractive aspect for Japanese investors. Prerequisites for the greater diversification of Japanese investments across other parts of Serbia include improving infrastructure and supporting education and the development of a skilled workforce, providing specific incentives for different regions, promoting local advantages and creating a stable environment conducive to doing business. Which JBAS activities would you single out as being the most important when it comes to strengthening friendly bilateral relations between Japan and Serbia? JBAS plays a pivotal role in fostering bilateral relations between Serbia and Japan. Some of the key activities that it has been the only business as16

Prerequisites for the greater diversification of Japanese investments across other parts of Serbia include improving infrastructure and supporting education and the development of a skilled workforce sociation to conduct since its inception relate to strengthening business cooperation between the two countries and empowering economic links between Japanese and domestic entrepreneurs at the national level. JBAS is an association that enables dialogue between Japanese and Serbian companies, creates business opportunities and facilitates exchanges of experience. By creating opportunities for direct contact between Japanese investors and Serbian enterprises, we contribute to a better understanding of the market and business mentality, establishing a stable framework for business. Additionally, by organising cultural events and raising awareness of the Japanese business culture and way of life in Serbia – either through JBAS or individually as companies – we contribute to strengthening interpersonal relationships and fostering better understanding between Japanese and Serbian society. I believe that, together with the Embassy of Japan in Serbia and organisations like JETRO and JICA, we will continue to strengthen the friendship between our two countries and serve as a bridge connecting the two nations. We all eagerly anticipate Expo 2025, which will be held in Japan and will provide us with an opportunity to expand the boundaries of Japan-Serbia bilateral cooperation and open new horizons for joint achievements.

We believe that

2024 will be a crucial year for the further development of our association JAPAN 2024

INTERVIEW | MASAHIRO UEKI JICA BALKAN OFFICE CHIEF REPRESENTATIVE

Sharing Japan’s Rich Development Experience While JICA’s renowned and respected work in supporting small businesses in Serbia continues, its efforts aimed at promoting green transition, innovation and knowledge transfers are gaining increased interest from the state, businesses and the general public ernment is environmental protection. JICA is aligning with this policy and has been implementing various projects in the environmental sector. The solid waste management project currently being implemented in the Municipality of Šid focuses on waste reduction and recycling activities that serve to improve the current situation in Šid. Based on results to date, our aim is to create an efficient and sustainable model of solid waste management that can be applied to other small and medium-sized municipalities in Serbia. By focusing on various activities, such as the introduction of composting to reduce household waste and

As a new project, we will dispatch a tourism promotion expert to Serbia for the next two years, with the idea of this expert covering the entire Western Balkan region

A total of

qualified JICA mentors have been active in Serbia to date 18

he Japan International Cooperation Agency, JICA, is an incorporated administrative agency that was established on the basis of Japanese law and is responsible for administering Japan’s Official Development Assistance (ODA). As one of the world’s largest comprehensive bilateral development assistance agencies, JICA implements cooperation in 139 countries and regions worldwide, including the Western Balkan. Here Masahiro Ueki, Chief Representative of the JICA Balkan Office, guides us through the work of JICA around the region.

How would you assess the progress of cooperation with Serbia in the environmental sector, including when it comes to green transition? — Within the scope of bilateral cooperation with Serbia, one of the priorities of the Japanese gov-

the implementation of separate collection to facilitate recycling, we are also utilising our experiences of solid waste management in Japan. Moreover, we have also provided a compactor truck in an effort to improve waste collection capacities. JICA is also putting a lot of effort into cooperation related to the green transition. Although the introduction of renewable energy sources, such as wind and solar energy, is expanding worldwide, its power generation is unstable due to changeable weather and sunlight. Various measures have been implemented in Japan to stabilise the country’s grid and ensure the reliability of the power supply, and this experience will certainly prove useful in Serbia. That’s why JICA has invited 11 engineers from the Ministry of Mining and Energy, EPS and EMS to Japan for three weeks from January this year. We have organised similar study visits annually since 2022. JAPAN 2024

What specific impact or success stories can be highlighted from JICA’s efforts to support small businesses in the region? — JICA and the Development Agency of Serbia (RAS) have been collaborating for over 15 years on the establishing of a mentoring service based on the Japanese model. This is a professional service, with an emphasis on realising growth potential and with the aim of helping micro companies and SMEs. Mentoring represents the process of joint work between certified mentors and entrepreneurs in analysing current positioning and defining further activities to promote future growth, which includes assisting with the implementation of KAIZEN business, consulting and coordination for access to funds and new technologies, assistance in finding business partners, training and other valuable services. A total of 54 qualified JICA mentors have been active in Serbia to date. Those mentors have amassed valuable experience in supporting the SME sector over the many years of their professional work. As for the recipient side, more than 4,000 companies in Serbia have taken advantage of this mentoring service, resulting in concrete results such as increased sales, an improved presence on the market, improved company organisation, increased customers satisfaction and other positive results. By utilising the knowledge and experience accumulated in Serbia, we are dispatching our official counterpart of Serbia to the Western Balkans. We want to develop this mentoring service as a regional brand across the Western Balkan region. How has collaboration between JICA and the NINJA (Next Innovation with Japan) accelerator programme facilitated the identifying and exploring of opportunities for participating entities on the Asian market? — NINJA is a project intended for local start-ups that is implemented by JICA worldwide. Within the scope of NINJA in Serbia, which was launched in 2022, we have implemented an accelerator programme to provide corporate management capacity building and mentoring services to seven selected IT start-ups in Serbia. In February 2023, each of these start-ups held a pitch event to explain their business plans to investors from Japan and elsewhere. More than 80 people participated, including online participation, and it was a great success, with each start-up receiving offers to hold business talks with investors. Furthermore, it also served to trigger the overseas expansion of each of these start-ups. In January 2023, we held a seminar entitled “How to Make It in Asia from Serbia” for Serbian cordmagazine.com

start-ups, in order to provide a broad introduction of how attractive the Asian market is. We were able to show the Serbian start-up community the Asian market as an option that had not previously received much attention in Serbia. As a result of these efforts, Serbian start-ups participated in start-up events held in Singapore, while one of the Serbian start-ups entered the Philippine market. In addition to accelerator programmes and pitch events, we are also considering providing training opportunities in Japan. Speaking to Serbian start-ups interested in the Asian market, I would say that we expect your participation in the next NINJA.

INTEREST We are confident in the Asian market as a target for Serbian start-ups, which is why we are considering launching a second round of NINJA in Serbia in 2024

MENTORSHIP Our mentoring service for SMEs will contribute to promoting the growth of local companies, as well as increasing Serbia’s future competitiveness as an attractive investment destination LEADERS JICA hopes that participants in the JICA Chair at the University of Belgrade will become future leaders and will contribute to the development of Serbia

How has the JICA Chair Programme with the University of Belgrade contributed to academic and research collaboration between Japan and Serbia? — Japan is the very first country, and still one of the rare countries, to have modernised from a non-Western background. Based on this recognition, JICA launched the JICA Chair (JICA Programme for Japanese studies) in 2020, in an effort to provide an opportunity for future leaders at top universities to learn about Japan’s modernisation and development experiences, which differ from those of Western countries. The JICA Chair has so far been introduced at leading universities in 62 countries, including the University of Belgrade. The JICA Chair in Serbia was officially launched in March 2022, in cooperation with the University of Belgrade. Until last year, the lectures covered topics like Japanese diplomacy, Japanese education, Japan and Southeast Asia, and Japanese intellectuals. Moreover, we also donated literature that contribute to improving research on Japan, as well as DVD teaching material of JICA Chair lectures, with Serbian subtitles, to the Faculty of Philology, Department of Japanese language and literature. Through these activities, we support studies on Japan at the University of Belgrade. What specific initiatives or projects is JICA planning to implement in 2024? — We would like to this year revitalise more exchanges of people, which leads to the strengthening of trust in our relationship with the Serbian Government, thereby further promoting our cooperation on the basis of Japan’s rich experiences in development. Since our office covers the Western Balkan region that includes Serbia, this year we would like to further strengthen regional cooperation by expanding our projects targeting the entire region. 19

CORPORATE | LINAS LIBIKAS, JTI GENERAL MANAGER FOR THE WESTERN BALKANS

Exploring Excellence We are delighted to announce the upcoming launch of our cutting-edge and truly unique heated tobacco experience. Although I’m unable to reveal too much at this moment, I can state with confidence that we are soon introducing the next generation of heated tobacco products to the Serbian market ~ Linas Libikas

e spoke with Japan Tobacco International’s Linas Libikas about the remarkable year that JTI Serbia had in 2023, with a focus on two key aspects that define its excellence: recognition of its status as a Top Employer for the ninth consecutive year; and the cutting-edge Japanese technological advances shaping its future. It was precisely a year ago that we discussed your new five-year investment cycle with a value of 51 million USD. Is everything being implemented and rolled out according to plan? — Yes, we are very satisfied with how things are going. Since the end of 2022, we’ve successfully invested nine million USD in the development of production at our Senta factory and constructed two additional state-of-the-art warehouses covering an area of more than 2,000m2. We are this year planning to develop and install a new machine for packing cigarettes. The two most important items in the remaining investment, worth 42 million USD, are cutting-edge technology lines for making and packing cigarettes, as well as the expansion of the warehouse for non-tobacco materials. When we complete the entire investment cycle in 2027, we will have an exceptional factory – not only in Serbia, but across the JTI system worldwide – and this modernisation will have a great impact on increasing the efficiency and speed of work. New investments contribute to increasing the export potential of JTI and Ser20

Copyrights Georg Wilke

bia as a whole, but also contribute to boosting the state budget. Does Serbia have enough diligent and talented experts who are eager to progress and improve?

— For sure! It is a known fact that the workforce in Serbia is highly appreciated thanks to its hard work, professionalism, ability to learn fast and be resourceful and agile. These are skills and values that every JAPAN 2024

company appreciates the most in its employees, who represent the main and most meaningful resource a business can have. Let me give you an example: this is the ninth year in a row that JTI Serbia has been recognised as a Top Employer, and we are the second-highest rated employer in areas that are crucial for this certification, one of them being the development of employees and attracting high-quality, talented people on an increasingly competitive job market. So, if we didn’t have a high-quality workforce, we could never have succeeded in receiving this prestigious award for so many consecutive years. Our employees are definitely the main ingredient in our success and prioritising them is essential to ensuring an excellent financial performance and sustaining the company’s growth on a competitive market. Last year proved very successful for JTI when it comes to the production of tobacco, with excellent quality and higher bulk buying prices? What do you expect from 2024? — Last year was very successful in terms of tobacco production. It was a year during which we hit some major records. We managed to have the best quality tobacco ever and to have the highest average purchase prices ever paid to our tobacco growers. To explain, this was the most successful year in terms of the quality of Virginia tobacco in the 28 years since production of this type of tobacco was established. On the other hand, we strive to be a true partner to our tobacco producers. And that’s why, with an awareness of rising living and production costs, we made the decision to significantly increase the purchase prices of tobacco regardless of its type and quality. For both tobacco types, Virginia and Burley, we increased the purchasing prices by about 30 per cent in comparison to the price initially planned at the moment of contracting the production, and we expect this year to be even better when it comes to growing and harvesting tobacco. JTI is among the largest investors in Serbia, while it is also one of the country’s largest taxpayers and most desirable employers. What are all the things that we should learn from your company? Do we even grasp the concept of Japanese business culture? cordmagazine.com

— Perhaps we are of the opinion that it is actually us who should maintain a learning mindset. This is our prerogative – keep growing, keep learning, and keep doing so every day. Taking even small steps every day, in order to achieve major longterm results, is at the core of the Japanese Kaizen business philosophy. This philosophy implies improving business every day and is characteristic of practically all Japanese companies that have achieved great results in terms of quality and efficiency. In 2008, the JTI factory in Senta was the first in Serbia to start applying the Kaizen philosophy and can boast of having since achieved a 50% increase in productivity, but also a reduction of as much as 70% in the amount of waste generated. We believe that exchanging knowledge is important, which is why we’ve opened the doors of our Senta factory and are inviting representatives of various companies in Serbia to discuss Kaizen principles and ways of implementing them in practice.

This is the ninth year in a row that JTI Serbia has been recognised as a Top Employer, and we are the second-highest rated employer in areas that are crucial for this certification, one of them being the development of employees and attracting high-quality, talented people on an increasingly competitive job market… Our employees are definitely the main ingredient of our success

Serbia is leading the way in the region when it comes to the inflow of Japanese investments, which have added value that far exceeds the importance of the initial investment amount. The importance of these investments is primarily reflected in new technologies that contribute to the development of the economy, but also to overall technological development. — Japanese companies are increasingly present in Serbia, with investments that have exceeded 2.5 billion USD. Looking at all the business potential of our market, companies coming from Japan bring an additional value – in the form of significant knowhow and new technologies, thereby providing a significant contribution to the development of the economy, but also to technological development. In fact, to give you an exclusive sneak peek, there is something new coming our way when it comes to innovative Japanese technology. We are delighted to announce the upcoming launch of our cutting-edge and truly unique heated tobacco experience. Although I’m unable to reveal too much at this moment, I can state with confidence that we are soon introducing the next generation of heated tobacco products to the Serbian market. Stay tuned! 21

CORPORATE | NIKOLA PAVLOVIĆ KONICA MINOLTA SERBIA MANAGING DIRECTOR

Greatest Achievements Yet to Come Over the 150 years since its inception, Konica Minolta hasn’t merely observed and witnessed change, but has spearheaded transformation. This period of a century and a half has been marked by remarkable and numerous innovations, and we remain committed to maintaining our leading role in the future ~ Nikola Pavlović reativity, ingenuity and adaptability, shown by people from the past, present and future – whether they are employees, partners or customers – have made Konica Minolta the brand it is today, and that it will continue to be tomorrow. While we take pride in our long history, we firmly believe that our greatest achievements lie ahead. In a time when ever fewer companies are celebrating significant milestones, particularly companies with over 40,000 employees worldwide that are dedicated to preserving and advancing what was initiated in 1873, we can take pride in our first 150 years of progress, innovation and constant development. Our company’s founder, Rokusaburo Sugiura, who later established the Konica

Corporation, initially opened a small, specialised shop for photographs and lithography in Tokyo back in 1873, when the world was vastly different. Even though that was during the time prior

cameras, including the Minolta Hi-Matic, which is the camera that John Glenn would use to take the first photos of Earth from space. The merger of Konica and Minolta occurred at the beginning of the new century, or in 2003 precisely. Throughout its existence, Konica Minolta has transformed, evolved and innovated continuously, with imaging at its core. We have contributed to many groundbreaking innovations, as evidenced by our impressive list of approximately 20,000 patents registered worldwide. These innovations stemmed from versatility and the desire for development, all of which have contributed to our continuing success. However, at Konica Minolta we don’t rely solely on our rich heritage. We today prioritise continuous research and development. Our focus is on intelligently connected workplaces, office devices, IT solutions and M-Files (a DMS system), Video surveillance systems (VSS) and Video Analytics System (VAS) solutions all of which represent smarter ways of working, as well as professional printing. When it comes to the future, we at Konica Minolta see it in data, b e caus e w e are cur rently in the midst of the digital revolution. Digital transformation has led to an explosion of data that can provide insight and information, but only if communicated correctly. However, since the volume of data is often too large for humans to analyse manually, we require artificial intelligence (AI). This vision was eloquently explained by Kiyo Suhara, President of Konica Minolta Europe, who stated that our

Throughout its existence, Konica Minolta has transformed, evolved and innovated continuously, with imaging at its core to the emergence of automobiles, radios and televisions, his entrepreneurial spirit laid the foundations for what would become Konica Minolta. Fifty-five years later, in 1928, Kazup Tashima founded Nichi-Doku Shashinki Shoten. That later became Minolta Co., a manufacturer of photocopiers and

goal is to combine our original imaging technologies with artificial intelligence to enable data processing and decisionmaking based on data. He explained that decisions that change the way we work, enhance security, improve product quality or enable progress in medicine are at the core of our vision. JAPAN 2024

CORPORATE | VUKAŠIN RADULOVIĆ PARTNER AT HELIANT

Medicine is Facing Transformation In order to utilise the potential of our healthcare system in the most rational way, it is necessary to be well-acquainted with its specificities, its strengths and areas for improvements, just as we know it at Heliant – a company whose information system, services, applications and software are being used by ever more healthcare institutions to engage actively. This will contribute to the early identification of potential health problems, reducing the number of hospitalisations and generally improving quality of life. ere we discuss with Heliant’s Vukašin Radulović the future of medicine and healthcare services, the importance of digitalisation and artificial intelligence to modern diagnostics and treatments, the Telemedicine project and collaboration with Japanese companies.

Since our last conversation, we’ve seen an increase in the number of institutions using your information system, but also in the number of Heliant services, applications, software, and satisfied users... What’s next? — That’s correct; we have achieved significant growth in the number of institutions, services, applications and software. We are engaging increasingly in education and donating information systems to medical schools. The continuous development of healthcare requires serious support through digitalisation. Until last year we were facing long waiting lists for MRI scans, which have overburdened the system for years, which have overburdened the system for years. In response to this challenge, we’ve developed a fast and efficient solution for healthcare institutions. We eased the scheduling of scans, monitoring their implementation and enabling insight into time slots available at multiple institutions. How do you see the future of medicine? — Looking to the future of medicine, a revolutionary transformation through artificial intelligence and prevention lies ahead of us. Arcordmagazine.com

We eased the scheduling of scans, monitoring their implementation and enabling insight into time slots available at multiple institutions tificial intelligence will enable faster and more accurate diagnostics, advancing the personalised approach to treatment and helping in the development of new and more effective medicines. This could be achieved through improved data management and the transformation of approaches to decision making, which in future will be based on comprehensive analysis of the health status of the patient and the population as a whole. Prevention will become central to the approach to healthcare. With the development of advanced technologies for monitoring and analytics, such as wearable devices and apps, patients will be in a position

Japanese investments seem to be very important for Serbia in that they bring new technologies, high standards and business ethics, encourage transfers of knowledge etc. Is that particularly important when it comes to the healthcare sector? — Cooperation with the Japanese Business Alliance in Serbia has brought us closer to new technologies and raised the standards of our work. I would highlight in particular the importance of knowledge transfers, which aren’t only crucial to advancing healthcare services in Serbia, but also to strengthening bilateral relations between Japan and Serbia. Our experience clearly demonstrated that both countries have lots to offer one another, especially in the healthcare technology field. Japanese investments are exceptionally significant for Serbia, particularly in the healthcare sector, as is also confirmed by our experience with our Japanese partners. We last year successfully concluded one of the key projects – Telemedicine – in cooperation with Japanese pharmaceutical company Takeda. The project was implemented in cooperation with the Ministry of Environmental Protection and the Ministry of Mining and Energy, with financial support from the Government of Japan, and by UNDP through the initiative 'Just Green Transition and Decarbonisation in Serbia'. We thereby expanded the telemedicine services, which were developed during the pandemic, to the national level, implementing solutions at seven centres for inflammatory bowel diseases. 23

INTERVIEW | PREDRAG BJELETIĆ DIRECTOR, ALPHA IMAGING

Knowledge in the Service of Better Diagnosis For nearly a quarter of a century, Alpha Imaging has been engaged in the import, sale, installation and maintenance of medical imaging equipment produced by renowned global manufacturers. All Alpha Imaging service engineers have completed training at specialised centres in Japan, Germany and South Korea

consulting, engineering & sales

irtually every healthcare ins titution in Serbia is equipped with at least one device from the Alpha Imaging product portfolio, while the company recently also initiated collaborations with new partners, in response to the needs of users.

Could you please describe your product portfolio? — Alpha Imaging was founded in 2000 with the idea of distributing and servicing medical diagnostic imaging devices and systems. We embarked on this journey as exclusive distributors and service providers for Japanese company Shimadzu. We continued our collaboration with FujiFilm and Hitachi, forming a portfolio of high-quality Japanese products that includes ultrasound machines, X-ray devices and systems, computerised tomography (CT) scanners, magnetic resonance imaging (MRI) systems, mammography units and endoscopy devices. In order to bolster our portfolio and better meet our users’ needs, we began collaborating with companies like Germany’s Ziehm Imaging (C-arms for operating rooms), Visus (software for image communication and archiving), Japan’s JVC Kenwood (medical monitors), DrGem from South Korea (X-ray devices), and iCAD from the United States (artificial intelligence software). 24

We have contributed to the practical application of hardware and software solutions, thus enabling faster and higher-quality diagnostic results You take great pride in your partners, each of whom – as an exclusive distributor – pushes the boundaries of technological advancement. Could you elaborate on this? — By leveraging the support of our partners, leading global manufacturers, and their ongoing investment in developing and implementing cutting-edge technol-

ogy, we have contributed to the practical application of hardware and software solutions, enabling faster and higher-quality diagnostic results. We actively participated in the digitalisation of medical diagnostic imaging equipment, implementing computerised radiography (CR) and flat-panel detectors (FPD). We were also involved in the introduction of multi-slice computed tomography (MSCT) and permanent and superconducting MRI. All digital devices have been linked to workstations with software for image processing, archiving and data transfer. This enabled us to connect diagnostic results to a common information network, thus ensuring easy data access for timely and accurate diagnoses. We also introduced iCAD software for artificial intelligence in mammography imaging and screening, thereby accelerating the process and the accuracy of results. Are your employees fully prepared to assist every client, at any moment, in every aspect? — All our service engineers have completed specialised technical training at manufacturers’ centres in Japan, Germany and South Korea. They hold certificates that enable them to install, commission and maintain devices within the warranty and post-warranty periods. Following installation and commissioning, our application specialists provide essential training for the proper use of equipment. We have signed annual maintenance contracts, defining all relevant parameters for performing service activities, with most healthcare institutions. JAPAN 2024

Official distributor and service:

West Balkans Machinery d.o.o. I Dositejeva 39, 22310 Šimanovci, Srbija I Fax.: +381 22 850 860; Tel.: +381 22 850 850 E-mail.: office@wbm.rs I www.wbm.rs

INTERVIEW | OLIVER LEPORI EXECUTIVE DIRECTOR OF THE JAPANESE BUSINESS ALLIANCE IN SERBIA

Cooperation Takes Centre Stage We aim to strengthen and solidify our partnerships with key players in the sustainability sector in Serbia, ranging from institutions to non-governmental organisations, the private sector and the academic community. We together aspire to contribute to local and global efforts aimed at protecting the environment

A total of

n 2024, the Japanese Business Alliance in Serbia (JBAS) is continuing to focus on enhancing collaboration with relevant sectors of the economy and the academic field, governmental institutions and international partners, in an effort to foster a sustainable business environment. This perspective is shared by JBAS Executive Director Oliver Lepori. The previous year proved to be a remarkably successful one for JBAS, and this interview provided an opportunity to review achievements and outline the association’s plans for the period ahead.

participants from across Serbia have demonstrated their innovative One of your ongoing activities is related to endecarbonisation ergy sector transition. What can JBAS offer its members in this regard, and with which stakesolutions holders have you collaborated the most when it 26

comes to promoting the potential of Japanese companies in this field? — In light of global challenges related to climate change and sustainability, JBAS is dedicated to supporting the implementation of the green agenda. Our aim is to contribute, hand in hand with our members and partners, to preserving the environment and creating a sustainable future to the greatest extent possible. Japanese technology, knowhow and innovations provide some of the most advanced solutions to support Serbia in its just energy transition. This support encourages investments and innovative business models that reduce dependency on imports, diversify the energy production mix and facilitate access to clean and affordable energy. JAPAN 2024

The assistance that we provide, in collaboration with our members, is equally available to both the public and private sectors. In line with the spirit of Japanese business philosophy, we exert special efforts to focus on vulnerable sections of the population and underdeveloped municipalities. A new cycle of the project “Innovative and Just Green Transition as a Tool for Ensuring Systemic Energy Security and Reducing Energy Poverty” was implemented in 2023, led by UNDP Serbia and conducted in cooperation with the Ministry of Environmental Protection and the Ministry of Mining and Energy, and with support from the Government of Japan. Within this project, a total of 28 participants from across Serbia demonstrated their innovative decarbonisation solutions, a just green transition for the economy, and support for energy-vulnerable households. Many of the projects presented will make use of Japanese technology and knowhow. Alongside such initiatives, we will also continue establishing partnerships with key sustainability stakeholders – including government institutions, non-governmental organisations, the private sector and academic institutions – in order to contribute to global environmental protection efforts and create a sustainable business paradigm in Serbia. The first Serbian-Japanese Business Club was established recently. What makes this a significant development, and how will JBAS collaborate with the club? — We are delighted that, thanks to the dedicated efforts of the Embassy of the Republic of Serbia in Japan, led by Ambassador Aleksandra Kovač, bilateral relations between Japan and Serbia will be further strengthened through the establishment of another institution: the Serbian-Japanese Business Club. This club has already brought together 22 Japanese companies and individuals, including high representatives of some renowned investors in the Serbian economy, such as Japan Tobacco International, Nidec, Yazaki, Toyo Tires and others. This serves as further confirmation of the transformation of relations between Serbia and Japan, reflected in a significant increase in Japanese investments in Serbia and the bilateral trade exchange. We believe that the business club will provide an immeasurable contribution to joint efforts to promote all the qualities of Serbia as an investment destination. This includes aspects such as the country’s highly educated workforce, export opportunities to the European Union, geographical location and subsidies, but also Sercordmagazine.com

Japanese technology, knowhow and innovations offer some of the most advanced solutions to support the process of just energy transition in Serbia bia’s general economic conditions and incentives for foreign investors. This will become particularly evident in the near future, given that Expo 2025 will take place in Osaka, followed by Expo Belgrade 2027.

WELCOME We are delighted that bilateral relations between Japan and Serbia will be further strengthened through the establishment of another institution: the SerbianJapanese Business Club

SUPPORT One significant task ahead of us is providing active support to the Government of Serbia and domestic companies in preparing for the upcoming Expo 2025 in Osaka

PUBLICITY Given that Serbia is currently building its image in Japan as an investment destination, any form of support and encouragement to potential investors is extremely important

You had an opportunity to give an interview to the Japan Times in the middle of last year. How important are such media engagements when it comes informing the Japanese business community about Serbia’s investment potential and JBAS’s ability to support potential investors? Disseminating information of the kind you mention in prestigious media outlets holds great significance when it comes to informing the Japanese business community about Serbia’s investment potential. This type of communication contributes to one of our main objectives: building trust and establishing sustainable business relationships between Serbia and the Japanese business community. Given that Serbia is currently building its image in Japan as an investment destination, any form of support and encouragement to potential investors is extremely important. What are JBAS’s plans for the near future? — We have an exciting year ahead of us. Our ambitious plans for the coming period are focused on further enhancing the Japanese-Serbian business community’s work and providing support to our members. Our focus will continue to be on strengthening collaboration with relevant sectors of the economy and the academic field, governmental institutions and international partners, in order to create a sustainable business environment. One significant task ahead of us is providing active support to the Government of Serbia and domestic companies in preparing for the upcoming Expo 2025 in Osaka, as well as promoting the Expo Belgrade 2027 event. Through these and numerous other initiatives, through the scope of our work, JBAS will continue to contribute to improving the business climate and economic growth in our country. 27

JAPAN 2024

Beautiful Harmony Japanese culture is unique for its blend of traditional values and modern innovations. This harmonious combination is evident in various aspects of life, from architecture and art to everyday rituals, making Japan a country where the past and the future coexist in perfect balance. This essential fusion of the traditional and the contemporary makes Japan an incredibly intriguing and inspirational place to explore.

cordmagazine.com

BILATERAL TRADE & INVESTMENT

Serbia Attracts

Japanese

Giants

The distance of more than 9,000 kilometres separating Belgrade and Tokyo certainly represents one of the key reasons why the trade exchange between the two economies remains modest, although it is growing. However, it has become apparent that the distance between the two markets is no longer a barrier when it comes to Japanese companies recognising Serbia as their new European hub of business, manufacturing and technology. After Germany, which hosts the largest number of Japanese companies in Europe, followed by Poland and Czechia, where Japanese investors were keen to invest in the early 2000s, Serbia welcomed its first Japanese investment in 2006 30

JAPAN 2024

fter about twenty companies present on the local market since the time of the former Yugoslavia, such as Mitsubishi, the first Japanese investment arrived in Serbia in 2006. Japan Tobacco International (JTI) acquired the Tobacco Industry in Senta and, according to company data, has since invested over 300 million euros in tobacco production and processing (including initial and ongoing investments). The company also has plans to invest around 50 million dollars over the next five years. Following investments in the tobacco industry, the Panasonic Group invested in producing energy-efficient electronic components for lighting in Svilajnac and YAZAKI invested in the manufacturing of cable sets in Šabac. Kansai invested in the Serbian chemicals industry with the acquisition of Gornji Milanovac-based Slovenian company Zvezda Helios, while HI-LEX acquired an Italian firm based in Sremska Mitrovica that produces electrical and electronic equipment for motor vehicles. Mayekawa invested in a local company in Smederevo with which it had already established cooperation on the production of refrigeration compressors and heat pumps. Aquafarm SEE launched investments in agriculture in Srbobran. Itochu Corporation entered into the ownership structure of local company Master Fruits through its subsidiary (Master Frigo has a joint venture with

Japanese company Takeda – alongside Germany’s Merck Sharp and Dohme, Swiss Roche and Swiss Rockets, American company Pfizer and China’s BGI Group – will be one of the global partners in Serbia’s BIO4 Campus centre

companies: Toyo Tires and Nidec, which decided to invest in Serbia and thus more than double the Japanese investment impact in the country. According to official data from Serbia’s central bank, the National Bank of Serbia (NBS), Japan invested €465 million in Serbia between 2013 and the third quarter of 2023. Over the previous four to five years, more than 90 per cent of

the Japanese investment fund Itochu, which owns American company Dole Packaging). A turning point in bilateral economic relations between the two countries came in 2018, with the first visit of a Japanese official to Serbia in three decades when then-Japanese Prime Minister Shinzo Abe visited, accompanied by a delegation of 16 representatives of major Japanese companies that are recognised globally. The beginning of the following year saw the entry into force of the EU-Japan Free Trade Agreement, representing a significant juncture in cooperation with Serbia, as a country situated on the EU border and committed to European integration. This new chapter in economic cooperation was quickly crowned by two Japanese multinational cordmagazine.com

Many are particularly interested in collaboration and investment in innovative infrastructure, energy, environmental protection, biotechnology and the ICT sector these investments have come directly from Japan, while in the last two years a total of twothirds of investments (over 300 million euros) have come from Japan. Toyo Tires opened its premium-class automotive tire factory in Inđija in mid-December 2022, in an effort to cater to the needs of renowned global car manufacturers and markets in Europe, the Middle East, Africa and North America. This marked the corporation’s first greenfield investment in Europe. As part of a grand plan to invest up to 1.5 billion euros in Europe (with the largest portion earmarked for Serbia), one of the world’s largest electric motor manufacturers, Nidec Corporation, embarked on its conquest of the European market from its new base in Novi Sad. It opened two factories in spring 2023: Nidec Electric Motors, which produces electric motors for power steering and drive motors for hybrid vehicles; and Nidec Elesys Europe, which manufactures inverters and electronic automobile control units. In addition to the capital invested, job creation and boost to exports from Serbia, these investments 32

Mutual trade has increased

2.5-fold over the last ten years, while Serbian exports to Japan have grown

15-fold

also bring modern technologies, high standards and transfers of knowledge to the Serbian economy. A particular highlight of Nidec’s research and development centre, where existing products will be enhanced and new ones created, is its strategic partnership with a local institution in the University of Novi Sad. There is mutual confidence that these two investments will lead to a wave of new Japanese investors interested in better positioning themselves on the European market and seeing Serbia as a new investment destination. According to some reports, the arrival of six Nidec suppliers is expected in the coming period, with five of them coming from Japan. The positive experiences of investors in the tobacco, electrical, chemicals and food industries, as well as projects undertaken by Japanese companies Itochu Corporation and Mitsubishi Hitachi Power Systems in Serbia (Vinča landfill and the TENT desulphurisation project), have sparked interest among other Japanese firms. Many are particularly interested in collaboration and investment in innovative infrastructure, energy, environmental protection, biotechnology and the ICT sector. Japanese company Takeda – alongside Germany’s Merck Sharp and Dohme, Swiss Roche and Swiss Rockets, American company Pfizer and China’s BGI Group – will be one of the global partners in Serbia’s BIO4 Campus centre. This centre, the construction of which began in Belgrade recentJAPAN 2024

ly, is set to rank among the most significant bioeconomic centres in Europe. Judging by last year’s visit to Japan of Serbian Energy and Mining Minister Dubravka Đedović Handanović, as well as the predominant topics discussed by the highest Serbian state officials with the Japanese Embassy in Belgrade and with Japanese governmental and business associations, the strongest impact on economic relations between the two countries over the period ahead will come from cooperation in the field of energy. Serbian projects related to green energy transition and the construction of energy infrastructure, worth 15 billion euros and including the reversible hydropower plant project in Bistrica, present opportunities for Japanese investors and the transfer of Japanese technologies – from technology for harnessing hydropower to hydrogen technology, in which Japan is considered a global leader.

THE IMPORTANCE OF COOPERATION Collaboration with Japan, which ranks as the world’s third-largest economy and is renowned for its high total product value, technological advancement and industrial potential, along with Japanese companies that epitomise the most successful business models, top-quality and technological innovation, impeccable organisation, efficient production and business discipline, holds immense significance for the Serbian economy and Serbian companies. Every new business arrangement with Japanese companies and every export deal to the Japanese market will serve to prove that Serbia has attained reliability and trustworthiness for the demanding Japanese market and its discerning partners in Japanese corporations. Each Japanese investment in Serbia is evidence of achieved in enhancing the business and investment climate and confirms that Serbia is becoming an attractive destination for investments from Japanese companies.

In 2022, the total goods trade between the two countries amounted to only €313.8 million, with Serbia exporting goods worth €94.5 million to Japan and imports with a total value of €219.3 million Serbia is also interested in attracting investments and building its capacity to exploit and process rare or critical mineral resources that the region possesses (such as lithium, copper, nickel, borates, natural graphite, antimony and magnesite). These resources are essential to a successful green transition and the production of new hightech and energy-efficient products, such as electric vehicle batteries or energy storage batteries, as well as solar panels. Over time, strengthening economic ties through investment cooperation and technology transfers could stimulate and increase the trade volume and Serbian exports to the distant, highly demanding, selective and protected Japanese market. Mutual trade has increased 2.5-fold over the last ten years, while Serbian exports to Japan have grown 15-fold. Although around 2,500 Serbian companies trade with Japan (mostly as importers), the actual impact remains well below the potential. In 2022, the most recent year for which statistics exist for all 12 months, the total goods trade between the two countries amountcordmagazine.com

According to official data from the National Bank of Serbia (NBS), Japan invested

€465

million in Serbia between 2013 and the third quarter of 2023

ed to only €313.8 million, with Serbia exporting goods worth €94.5 million to Japan and imports with a total value of €219.3 million. Previous contacts between entrepreneurs and business association analyses indicate opportunities for increased sales of Serbian agricultural and food products, especially Serbian berries that are highly valued in Japan (frozen raspberries, fruit derivatives) and organic products, wines, mineral water, spirits and medicinal teas. Opportunities for better acquisitions and connecting the countries’ business communities will be provided by the participation of Serbian companies in EXPO 2025 in Osaka and Japanese companies in the specialised Expo 2027 world exhibition to be held in Belgrade. Establishing the Serbian-Japanese Business Club in Tokyo, which will work to deepen economic cooperation between the two countries, alongside the Japanese Business Alliance in Belgrade, chambers of commerce and other business associations, will also serve to stimulate and support new business arrangements. 33

SETSUKO THURLOW

Life of Resilience, A

and Activism,

Achievement

Setsuko Thurlow, a name that resonates with courage and dedication, has led an extraordinary life that spans continents, decades, and a relentless pursuit of peace. Her story is one of survival, activism, and numerous prestigious awards that recognise her unwavering commitment to a more peaceful world.

JAPAN 2024

cordmagazine.com

EARLY LIFE AND THE HIROSHIMA TRAGEDY Born in 1932 in Hiroshima, Japan, Setsuko Thurlow grew up in a city marked by its rich history and culture. Little did she know that her life would be forever changed on that fateful day, 6th August, 1945. Setsuko was just 13 years old when the United States dropped an atomic bomb on Hiroshima. She miraculously survived the devastating explosion, emerging from the rubble with her mother and sister. The horrors of witnessing the aftermath of the atomic bomb left an indelible mark on Setsuko’s psyche. She became a hibakusha, a survivor of the atomic bombing, and her personal experiences fueled her determination to prevent others from enduring similar suffering.

DEDICATION TO PEACE ACTIVISM

Setsuko Thurlow’s commitment to peace and disarmament began to take shape in her teenage years. She joined the Hiroshima-Nagasaki Student Group and actively participated in efforts to raise awareness about the devastating consequenses of nuclear warfare. Her resilience and advocacy earned her a scholarship to study in the United States, where she continued her activism. In 1954, Setsuko relocated to Canada to pursue her education, eventually becoming a dedicated educator herself. Her passion for peace remained unwavering, and she joined organizations like the Hiroshima-Nagasaki Relived (HNR) Campaign and the Campaign for Nuclear Disarmament (CND), tirelessly working to promote a nuclear-free world.

Setsuko Thurlow’s remarkable journey is a testament to the strength of the human spirit and the power of determination in the face of unimaginable adversity INTERNATIONAL RECOGNITION AND AWARDS

Setsuko Thurlow’s tireless dedication to nuclear disarmament and her ability to effectively convey the urgency of the issue through her personal experiences earned her a series of prestigious awards and international recognition. The Nobel Peace Prize (2017): One of the most significant milestones in Setsuko Thurlow’s 36

life came in 2017 when she, along with the International Campaign to Abolish Nuclear Weapons (ICAN), was awarded the Nobel Peace Prize. This accolade recognised her exceptional contributions to the global movement for nuclear disarmament. Setsuko Thurlow’s moving and heartfelt acceptance speech at the Nobel ceremony touched the hearts of many, as she recounted her harrowing experience as a Hiroshima survivor and called for the complete elimination of nuclear weapons. The Nobel Committee’s decision to honor her and ICAN emphasised the urgency of disarmament and underscored the importance of the Treaty on the Prohibition of Nuclear Weapons (TPNW), which she had played a pivotal role in bringing to fruition. The Order of Canada (2018): In recognition of her lifelong commitment to peace, Setsuko Thurlow was appointed a Member of the Order of Canada in 2018. This prestigious honour is bestowed JAPAN 2024

upon Canadian citizens who have made significant contributions to their country and society at large. Setsuko’s unwavering dedication to advocating for a world without nuclear weapons and her role as a global peace ambassador made her a deserving recipient of this distinction. The Arms Control Association’s Distinguished Service Award (2019): Setsuko Thurlow received the Distinguished Service Award from the Arms Control Association in 2019. This accolade acknowledges her exceptional efforts in advancing arms control and disarmament, particularly her role in advocating for the Treaty on the Prohibition of Nuclear Weapons. The Arms Control Association, a renowned organisation dedicated to addressing the challenges posed by weapons of mass destruction, honoured Setsuko for her outstanding contributions in promoting global security and peace. Honorary Doctorate Degrees: Setsuko Thurlow’s impact as a global peace advocate and educator has also been recognised through the conferral of honorary doctorate degrees from several institutions. Her alma mater, the University of Toronto, and other universities have honoured her with these degrees in acknowledgment of her commitment to fostering a safer world through disarmament education and advocacy. Setsuko Thurlow’s numerous awards and honours serve as a testament to her enduring dedi-

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cation to peace and her ability to inspire change on a global scale. Her legacy continues to motivate individuals and organisations to work tirelessly towards a world free from the threat of nuclear weapons, reminding us that even in the face of immense challenges, the pursuit of peace is a noble and achievable endeavour.

A LEGACY OF INSPIRATION

Setsuko was just

years old when the United States dropped an atomic bomb on Hiroshima

Setsuko Thurlow’s remarkable journey is a testament to the strength of the human spirit and the power of determination in the face of unimaginable adversity. Her life serves as an inspiration to countless individuals worldwide who aspire to make a positive impact on global issues. As a Hiroshima survivor, a dedicated peace activist, and a Nobel laureate, Setsuko Thurlow’s legacy will continue to shape the discourse on nuclear disarmament and inspire future generations to strive for a world free from the threat of atomic weapons. Her life’s work reminds us that change is possible when driven by unwavering passion and a commitment to creating a more peaceful and just world.

She joined the Hiroshima-Nagasaki Student Group and actively participated in efforts to raise awareness about the devastating consequences of nuclear warfare

ACTIVITIES | JBAS 2023

JBAS activities 2023 DECEMBER

NEW YEAR 2023 COCKTAIL PARTY

JBAS held its annual New Year Cocktail Party to celebrate the upcoming year of the dragon. The event was attended by representatives of the Embassy of Japan in Serbia and the Government of the Republic of Serbia, who joined JBAS members and other partners in celebrating the end of 2023.

NOVEMBER

JSFF GRAND OPENING CEREMONY

JBAS members and representatives of the Embassy of Japan in Serbia had a unique opportunity to together watch the Serbian premiere of the Japanese film “Mom, is that you?” and to enjoy delicious Japanese cuisine at the exclusive afterparty that was reserved for special guests. DECEMBER

VISIT TO BEO ČISTA ENERGIJA

JBAS organised a visit to BCE - Beo Čista Energija, where its members were warmly received at the Vinča landfill site. BCE provided JBAS visitors with insight into the activities and facilities on site, as well as the processes used to minimise the negative impact of waste on the environment and to produce energy from waste.

NOVEMBER

JAPANESE CULTURE DAY

JBAS celebrated Japanese Culture Day, in cooperation with PwC Serbia, providing its member companies and partners with an opportunity to be part of the workshop on the topic “Impact of the EU ESG regulations on Serbian companies”. 38

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SEPTEMBER

TSUKIMI

OCTOBER

COMPETITION COMPLIANCE IN SERBIA WORKSHOP

JBAS members, business partners and friends jointly celebrated the traditional Japanese moon-viewing festival, Tsukimi, on the premises of the outstanding Astronomical Observatory Belgrade. Following a brief presentation on this festival by Japanese language, literature and culture specialist Alena Spasić, a cooperation protocol was officially signed by JBAS Executive Director Oliver Lepori and the Astronomical Observatory’s Director, Dr Luka Č. Popović Ph.D.

In partnership with member company Gecić Law, JBAS organised an interesting workshop under the heading “Competition Compliance in Serbia”, at which Ivana Stojanović Raišić, an expert on competition law, delivered a detailed lecture covering many aspects of this important topic for representatives of JBAS member companies. OCTOBER

BOOK “KAIZEN HOW JAPAN SUCCEEDED”

JBAS supported the publishing of the book entitled KAIZEN HOW JAPAN SUCCEEDED, subtitled Fascinating History, which was published in the Japanorama edition of the Serbian-Japanese Society BELGRADE-TOKYO and authored by Dragan Milenković, a famous Japanologist and founder of that society. The book was presented at the 66th International Belgrade Book Fair.

JUNE

FIRST JBAS JAPANESE BUSINESS CULTURE AND COMMUNICATION COURSE

In an effort to support its members in better understanding the mindset and business customs of their Japanese colleagues, partners and clients in achieving their business goals, JBAS organised its first course on Japanese business culture, encompassing four concise online workshops led by Ms Alena Spasić, who holds a BA in Japanese Language, Literature and Culture.

OCTOBER

VISIT TO THE CHAMBER OF COMMERCE AND INDUSTRY OF VOJVODINA

The JBAS management team and representatives of its 20 member companies visited the premises of the Chamber of Commerce of Vojvodina, in the company of Ambassador of Japan to Serbia H.E. Akira Imamura. Ambassador Imamura and JBAS President Goran Pekez were among the speakers at this gathering of over 70 businessmen, who included representatives of both local companies and Japanese companies operating in Serbia. cordmagazine.com

MAY

9TH SEE AUTOMOTIVE CONFERENCE 2023

JUNE

WORKING GROUP MEETING WITHIN THE IPA 2017 PROJECT

JBAS and its member companies participated in the 9th SEE Automotive Conference – Connect & Supply, which was organised by AC Serbia in Belgrade and included the panel debate “Smart Manufacturing: Challenges and Future Directions”. Moderated by JBAS Executive Director Oliver Lepori, panellists included Mitsubishi Electric Europe B.V., Aleksandar Stanković, and General Director of Nidec Elesys Europe, Aleksandar Nestorov, both of whom presented their activities in Serbia and shared their views on the current situation and future development of the automotive industry.

JBAS participated in the Working Group meeting within the IPA 2017 project entitled “Further Development of Energy Planning Capacities”. The theme of the meeting was the presentation of the Draft Report on Strategic Environmental Impact Assessment for public consultation, which was prepared on the basis of the Draft Integrated National Energy and Climate Plan of the Republic of Serbia for the period up to 2030, with projections up to 2050.

MAY

JBAS GENERAL ASSEMBLY

On the occasion of the JBAS Annual Assembly, a UNDP Public Call was opened for the project “Innovative and Just Green Transition as a Tool for Securing Systemic Energy Security and Reducing Energy Poverty”, which is being financed by the Government of Japan.

JUNE

VOJVODINA PREMIUM FOOD FOR JAPAN

A food tasting event entitled “Vojvodina Premium Food for Japan”, organised by the Vojvodina Development Agency specifically for the Japanese business community in Serbia, was held in June. It was the final activity of the project “Enhancing the competitiveness of food products from Vojvodina”, which was conducted by the Vojvodina Development Agency and JICA volunteer expert, food sanitation inspector, Mrs Akiko Terasawa. 40

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MARCH

UNDP STUDY VISIT – “INCLUSIVE DECARBONISATION PROJECT”

A study visit was made by UNDP BiH as part of concluding activities on the BiH component of the decarbonisation project “Inclusive Decarbonisation”. JBAS supported two of last year’s UNDP decarbonisation projects (Serbia and BiH), both of which were financed by the Government of Japan. APRIL

HANAMI GATHERING

On the occasion of celebrations marking the traditional Japanese custom of observing cherry blossom, known as Hanami, JBAS organised an extraordinary gathering at Sakura Park in New Belgrade. The gathering was supported by then Ambassador of Japan to Serbia H.E. Takahiko Katsumata and the staff of the Embassy of Japan in Belgrade.

JANUARY

‘HOW TO MAKE IT IN ASIA FROM SERBIA’ AND NINJA DEMO DAY

MARCH

INAUGURAL BATTERY CONFERENCE IN BELGRADE

JBAS invited its members to attend the 1st Battery Conference held in Belgrade, at which they received insight into the present and future of environmentally acceptable solutions in the automotive industry. Robert Lukić, a JBAS BoD member and Toyota Adria marketing director, pointed out that Japanese manufacturers have an increasing number of e-models each year and that autonomous driving has already been a reality in Japan for 10 years.

JBAS members were invited to the “How to Make It in Asia from Serbia” event, which was organised by the Digital Serbia Initiative, together with the Japan International Cooperation Agency (JICA), within the framework of the NINJA accelerator programme. Soon afterwards, a Demo Day event was held at the Digital Serbia Initiative office, where seven start-ups showcased their progress after having gone through the NINJA acceleration programme.

MARCH

55TH INTERNATIONAL MOTOR SHOW IN BELGRADE More than 30 representatives of Japanese companies and corporations enjoyed a special preview tour organised by JBAS and attended by Tatsuro Masuda, First Secretary of the Embassy of Japan to Serbia. cordmagazine.com

EXPO 2025 OSAKA, KANSAI

Glimpse into the ‘Reconnect the World’ project A

Osaka’s grand plan to “reconnect the world” is gradually taking shape. When completed, huge sections of timber will form an enormous walkway encircling a “forest of tranquillity” and pavilions showcasing the history, culture and technology of more than 130 countries, with the host, Japan, at its heart 42

he frames – built using traditional methods that don’t require nails – and construction cranes lend a much-needed dimension to the site’s otherwise barren surface of Yumeshima – “Dream Island” in Osaka Bay. “When people come to the site and see it for themselves, they’re quite relieved by the progress that’s been made,” said Takumi Nagayama, director of maintenance and coordination at the Japan Association for the 2025 World Exposition. “A year ago, there was nothing here, but the ground has

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been levelled and the land flattened. The basic foundations are done.” Beginning with the Great Exhibition in London in 1851, world expos have become an opportunity for countries to highlight their history and culture, and demonstrate how they are using social, economic and scientific advances to address the most urgent topics of the times – in Osaka’s case, the quest for sustainable development. World expos are held every five years and last up to six months. The last one opened in Dubai in October 2021, delayed by the pandemic. Osaka secured the hosting rights in 2018 – beating Yekaterinburg in Russia and Baku in Azerbaijan . Guided by the slogan “Designing future society for our lives”, the city is aim to repeat the success of its last expo, in 1970, which drew more than 60 million visitors and confirmed Japan’s transformation from defeated empire into an economic and industrial powerhouse. Of the 50 or so countries due to construct bespoke “type-A” pavilions, which can cost tens of millions of pounds, only two, South Korea and the Czech Republic, are known to have submitted their designs. Just one has applied to the Osaka municipal government for permission to start building. With the clock ticking towards the opening officials and politicians are being forced to think again. The cost of building the venue is expected to rise from the current ¥185bn to more than ¥200bn (€1.16bn to €1.25bn) due to soaring material and labour costs.

Osaka secured the hosting rights in

2018 -

beating Yekaterinburg in Russia and Baku in Azerbaijan

Beginning with the Great Exhibition in London in 1851, world expos have become an opportunity for countries to highlight their history cordmagazine.com

The project is also falling foul of a problem afflicting myriad sectors of the Japanese economy – a chronic labour shortage. The struggle to secure labour will intensify in April, when Japan introduces restrictions on overtime in the construction and other industries. Some of expo’s problems stem from its offshore location. Access is currently restricted to construction workers via an undersea road tunnel that will eventually be open to the public. The predictions are 2.8 million visitors during the six-month event, which is expected to generate about ¥2 trillion for the economy. In August, the prime minister, Fumio Kishida, ordered ministers to redouble efforts to get the event ready on time. ”Preparations for the expo are in an extremely tight spot,” he said. Full-scale national pavilions could be replaced by cheaper, more unified versions constructed by Osaka companies, according to media reports – an approach that would save time and money, but which would remove the qualities that make the exhibition spaces an expression of each country’s history and culture. “Preparations are continuing, and we’re working hard to meet the deadline,” said Sachiko Yoshimura, executive director of global communications at the expo association. “We are working on the assumption that the expo will open in 2025 … there is no talk within our organisation of a postponement.” “Some people have questioned the need for an expo in this day and age,” Yoshimura said. “But we live in a world that has been divided by the Covid-19 pandemic, climate change and the war in Ukraine. The Osaka expo will be an opportunity for us to reconnect.” 43

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