Partner Japan 2021

JAPAN - BEAUTIFUL HARMONY

CONTENT CELEBRATION OF 06 MUTUAL RESPECT AND FRIENDSHIP COMMENT

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HOPE AND ENCOURAGEMENT FROM TOKYO

THE WELL17 PRIORITISING BEING OF SOCIETY ROBERT LUKIĆ, TOYOTA SRBIJA CEO

H.E. TAKAHIKO KATSUMATA, AMBASSADOR OF JAPAN TO SERBIA

VICTOR VEKLITCH, VICE PRESIDENT AND GENERAL MANAGER FOR ADRIATICA AT JAPAN TOBACCO INTERNATIONAL

32 THE LAND OF RISING AI TECHNOLOGY

BETTER 18 HEALTH,BRIGHTER FUTURE MITSUBISHI’S 12 COMMITMENT TO ENERGY AND DIGITAL

THE BEST INVESTORS 24 BRING NEW VALUE EVERY YEAR

MILENA ARGIROVIĆ, DIRECTOR, TAKEDA

IN THE DRIVING 26 BEING SEAT IS OUR DUTY OLIVER LEPORI, JBAS EXECUTIVE DIRECTOR

TRANSFORMATION

NAOKI TSUKADA, GENERAL MANAGER, MITSUBISHI CORPORATION BELGRADE LIAISON OFFICE

32 THE LAND OF RISING AI 34 JBAS ACTIVITIES OF 40 SYMBOL NATIONAL UNITY TECHNOLOGY

JAPANESE EMPEROR NARUHITO

THE GAMES WILL GO 44 AHEAD “WITH OR WITHOUT COVID”

WISH TO DEEPEN 20 WE OUR PARTNERSHIP OF GOOD 28 TOWARD SOCIETY 5.0 48 SYMBOLS FORTUNE CUSTOMERS EAGER 30 FOR RELIABLE SOLUTIONS

TOKYO 2021 OLYMPIC GAMES

JIRO TAKEICHI, CHIEF REPRESENTATIVE OF THE JICA BALKAN OFFICE

JAPANESE 14 INVESTMENTS ARE LIKE ORIGAMI

JAPANESE ECONOMY

JAPANESE CRANES

MLADEN JEVTIĆ, SALES MANAGER ADRIATIC, AT HITACHI VANTARA

GORAN PEKEZ, PRESIDENT OF THE JBAS BOARD OF DIRECTORS

LEADS TO 23 VISION RESULTS JKP MLADENOVAC

EDITOR IN CHIEF Ana Novčić a.novcic@aim.rs a.novcic@cordmagazine.com ART DIRECTOR Branislav Ninković b.ninkovic@aim.rs

PROJECT MANAGERS Biljana Dević b.devic@aim.rs Vesna Vukajlović v.vukajlovic@aim.rs Mihailo Čučković m.cuckovic@aim.rs

PHOTOS Zoran Petrović

OFFICE MANAGER Svetlana Petrović s.petrovic@aim.rs

COPY EDITOR Mark Pullen mrpeditorial@mail.com

EDITORIAL MANAGER Neda Lukić n.lukic@aim.rs

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FINANCE Dragana Skrobonja finance@aim.rs GENERAL MANAGER Maja Vidaković m.vidakovic@aim.rs PUBLISHER Ivan Novčić i.novcic@aim.rs PRINTING Rotografika d.o.o.

Segedinski put 72, Subotica, Serbia BUSINESS PARTNER JAPAN Published by: alliance international media Prote Mateje 52, 11111 Belgrade 17, PAK 126909, Serbia Phone: +(381 11) 2450 508 Fascimile: +(381 11) 2450 122 E-mail: office@aim.rs;

office@cordmagazine.com www.aim.rs; www.cordmagazine.com No 23 ISSN: 2560-4465 All rights reserved alliance international media 2020 The views expressed in this publication are those of the presenter; they do not necessary reflect the view of publications published by

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COMMENT

Celebration of Mutual Respect

AND FRIENDSHIP

For many years, excellent bilateral relations between Japan and Serbia did not lead to equally successful economic dealings. Today, however, it seems that the tide is gradually turning, with the investment of Japanese company Toyo Tires, one of the world's largest manufacturers of tyres, representing just the latest achievement. It is also a good omen during a time when the two countries are celebrating the 140th anniversary of their diplomatic relations.

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Western Balkan region. t the end of 2020, Serbian President Aleksandar Following the historic 2018 visit of Japanese Prime Vučić received the credentials of newly appointed Minister Abe, many Japanese investors have come to view Japanese Ambassador Takahika Katsumata, who Serbia as a significant regional centre for the CEFTA and the conveyed a message from Emperor Naruhito to Western Balkan areas, which has helped to deepen relations him. President Vučić returned the greetings and sent an between Belgrade and Tokyo in terms of economic exchange. invitation for the Emperor of Japan to visit our country, Japanese companies increasingly seeing Serbia as a emphasising how this would be an exceptional opportunity to source of highly skilled labour. Furthermore, the remarkable mark the 140th anniversary of diplomatic relations between progress made on economic reforms and fiscal consolidation Belgrade and Tokyo. hasn’t gone unnoticed. As a result of diplomatic efforts, as If the situation permits, a visit of Emperor Naruhito well as the engagement of the Japanese Business Alliance in would provide an excellent opportunity to further improve cooperation and the friendship between the two countries.

The two countries have jointly decided to If the situation permits, a visit of Emperor Naruhito establish the year of 1882, which corresponds would provide an excellent opportunity to further with the reigns of Serbian King Milan Obrenović improve cooperation and the friendship between and Japanese Emperor Meiji, as their year of friendship. Bilateral relations between Serbia and the two countries Japan have been improving constantly for many Serbia, the Japanese business community is well informed years, both politically and economically, with interest in the about the conditions offered in Serbia.

Serbian market increasing among Japanese investors lately.

Foreign trade with Japan has been increasing gradually Japan has, for many years, been among the most significant over previous years, reaching a level of around 200 million contributors to Serbia in terms of technical and material euros, which may be more than during the previous period donations, with that total valued at 507 million euros over but still leaves plenty of room for improvement. the past 20 years.

Beyond economics, there is also an opportunity for the Japan sees the stability of the Western Balkans not two countries to increase their cooperation even further merely as a regional and European issue, but also as a in the fields of science and technology, innovation and strategic issue for Japan. In that respect, Japan has shown technological development, and sport. its appreciation for Serbia’s role in promoting peace and And with sport in mind, we’re really looking forward to stability in the Western Balkan region, resulting in Japan the upcoming Olympic Games to be hosted by Japan and continuously supporting economic reforms in Serbia and would like to wish the competing Japanese and Serbian the country’s EU accession aspirations, while Japan also athletes lots of success. encourages cooperation between countries within the

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INTERVIEW

H.E. TAKAHIKO KATSUMATA, AMBASSADOR OF JAPAN TO SERBIA

Hope And Encouragement

FROM TOKYO

We know that it is challenging to host the Olympic Games under such circumstances, but this is precisely why we intend for these 2021 Games to prove that humanity has defeated the virus Takahiko Katsumata Serbia. Ambassador Katsumata is witnessing increased interest in Serbia among Japanese investors, which he says is reflected in the recent arrival of the Toyo Corporation in Inđija.

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eturning to Belgrade after a gap of almost four decades, new Japanese ambassador Takahiko Katsumata notes that the city has been modernised, but says that he can still find good cafes, contemporary art and recognisable historical monuments like the ones he remembers from back in 1984, when he first found himself in Serbia as a young diplomat.

In this his first interview for CorD Magazine, the ambassador says that he’s been working enthusiastically on the commemorating of the 140th anniversary of diplomatic relations between Japan and 8

Your Excellency, you arrived to take on the role of the new ambassador of Japan to Serbia this past December, stating at the time that you were returning to Belgrade 37 years after your first visit. How are your impressions today?

- I have been to Belgrade, then the capital of the former Yugoslavia, in the summer of 1984. That young diplomat from Japan was very impressed with the magnificent landscape of green hills with a castle over the grand Danube and Sava rivers. The warm hospitality of the people was also unforgettable.

I am so happy to be here again as the ambassador of Japan. My first impression after 37 years has not changed at all. I see that Belgrade looks far more modernised compared to my first visit. However, it remains rich in various kinds of cultural elements, such as kafana taverns, modern arts or historical heritage. People in Belgrade remain kind, with much hospitality. The Serbian culinary culture is also interesting to me. It is a pity that I so far haven’t been able to try well-known specialities of Serbian cuisine in local restaurants due to the sanitary measures related to COVID-19.

Fortunately, I’ve already had some opportunities to visit local cities of Serbia. I went to Inđija for the ground-breaking ceremony for the construction of the Toyo Tires factory and I also went to Golubinci for a visit to a tobacco farm that’s a supplier to the JTI company that made Japan’s first ever direct investment in Serbia. On the way to these places in Vojvodina, I saw the beautiful landscape of the suburban districts with traditional architecture and lifestyle. I hope to visit as many of Serbia’s cities and villages as possible during my term.

Your term began during the time of the global struggle against COVID-19, which also seems to be dictating the topics of in-

JAPAN - BEAUTIFUL HARMONY

BUSINESS CLIMATE

INVESTMENT

TOKYO OLYMPICS

Serbia can offer foreign investors easy access to a workforce with competitive costs or quality labour with high levels of education

The investment of Toyo Tires is expected to be the largest one ever from Japan in Serbia, at 382 million euros, and will create more than 500 jobs

Taking all possible measures to prevent infections, we will continue to work hard to prepare for a safe and secure Games

ternational and bilateral relations. What measures is Japan taking to combat the pandemic?

-Given the fact that COVID-19 has become a global issue, it is crucial for the international community to make concerted efforts. Japan has been working closely with the international community to tackle this global challenge.

With regard to cooperation with Serbia, in August 2020 Japan decided to provide a total amount of 100 million JPY (approx.

820,000 euros) to the Government of Serbia to strengthen the country’s medical system for the fight against infectious diseases, including COVID-19, through the provision of medical equipment. This grant aid provides medical institutions, especially in Serbia’s rural areas, with Japanese X-ray equipment, ambulances and other health and medical-related equipment. My desire is for the donation that delivers Japan’s high TOKYO quality medical equipment to contribute to overcoming the healthcare disparities that exist between regions in Serbia and With regard to cooperation with Serbia, in August 2020 Japan strengthening the country’s medical system decided to provide a total amount of 100 million JPY (approx. that can fight against infectious diseases, including COVID-19, not only this time, but 820,000 euros) to the Government of Serbia to strengthen the also in longer-term perspectives. country’s medical system for the fight against infectious diseases, Japan appreciates the continuous efforts of the Serbian Government to combat including COVID-19, through the provision of medical equipment COVID-19, including the early start of antiYou’ve been discussing the possibilities of strengthening Corona vaccination in these days, and we will continue to work economic cooperation with Japan since your arrival in Serbia. closely to overcome this pandemic crisis.

How would you explain your claim that Serbia has become more interesting to investors from Japan?

Media reports suggest that vaccination should start in Japan - About 30 Japanese companies are currently doing business at the end of February. Which pharmaceutical companies have increasingly in Serbia, including Toyo Tires’ recent launch of the been selected to deliver a vaccine in Japan? construction of its new factory in Inđija, which is the biggest - The government has sealed a contract for 144 million doses of direct investment of Japan, worth almost 400 million euros. the Pfizer BioNTech vaccine, enough for 70 million of the country’s This trend was created by Serbia’s efforts to implement socio126 million people, by the end of June. Japan also has contracts economic reforms, including the promotion of a better business with Moderna and AstraZeneca for the time being. Prime Minister environment for foreign companies, and Japanese companies have Suga Masahide recently appointed former Foreign Minister Kono started becoming aware of the actual merits of their investment Taro as the Minister in charge of the promotion of Corona vaccinain Serbia. Serbia has concluded FTAs with the EU, Turkey, Russia tion. It is highly expected that prompt, safe and fair vaccination and other countries, which leads to good access to large regional will start in Japan soon.

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transfer Japanese technology and create a good business model to encourage other Japanese companies to start doing new business in Serbia. I hope this unique factory will expand a new European market and, as a whole, will be one of the driving forces behind the Serbian economy.

SHINKANSEN TRAIN - TOKYO STATION

markets. Serbia can also offer foreign investors easy access to a workforce with competitive costs or quality labour with high levels of education.

I also need to mention the top diplomacy between the two countries in recent years, characterised by the visits to Serbia of Prime Minister Abe in 2018 and Foreign Minister Kono in 2019, as well the visit of Prime Minister Brnabić to Japan in 2019, which have provided a strong driving force to promote our economic partnership.

We expect Japanese companies to continue accelerating their investments in Serbia.

I also need to mention the top diplomacy between the two countries in recent years, characterised by the visits to Serbia of Prime Minister Abe in 2018 and Foreign Minister Kono in 2019, as well the visit of Prime Minister Brnabić to Japan in 2019, which have provided a strong driving force to promote our economic partnership

You attended the formal launch of the construction of the Toyo Tires factory in Inđija. What are your impressions of the town and what do you expect from that investment?

- Inđija is close to both Belgrade and Novi Sad, and also has good rail and road access. This is why many companies from overseas are doing business in the region. I believe that Toyo Tires took this geographical advantage into consideration.

The investment of Toyo Tires is expected to be the largest one ever from Japan in Serbia, at 382 million euros, and will create more than 500 jobs. It also brings a new automated assembly system with state-of-the-art technology, which is expected to 10

Toyo Tires also considered the Polish city of Gdansk as a location for its new factory.

What role did state subsidies for Japanese companies and the gifting of land for the construction of the factory play in this company choosing Serbia?

- First of all, I would like to express my gratitude to the Serbian government for its continuous efforts aimed at improving the business environment in Serbia, especially for its well-designed support programmes for companies to start their businesses.

For example, 15 free zones have so far been established in the country and companies have been offered preferential treatment, such as partial tax exemption. I believe that these enthusiastic forms of support from the Government are a key factor in Japanese companies deciding to expand their operations in Serbia. I also believe that the merits of regional market access and quality labour are also attractive for companies.

On the part of the Embassy of Japan, we have offered an investors’ manual to Serbia on the website for the reference of potential Japanese investors and companies. The Embassy has also been providing them with relevant information, in collaboration with the Development Agency of Serbia, the Chamber of Commerce & Industry of Serbia, the Japan External Trade Organisation (JETRO) etc. We hope that more and more Japanese companies will increase their interest in investing in Serbia.

Citizens of Inđija and Vojvodina are concerned about the possibility of uncontrolled environmental pollution once Toyo starts producing tyres. Given that Japan is considered a country with high environmental awareness, which standards will this Japanese company adhere to in Inđija?

- At the ground-breaking ceremony in December 2020, which the esteemed President Vučić also attended, Toyo Tires President Mr Shimizu mentioned in his speech that the company would like to make a contribution to promoting both the environment and the economy of Serbia.

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As I mentioned earlier, the investment of Toyo Tires will bring new an automated factory with state-of-the-art technology that also encompasses various environmental standards.

I understand that the underlying idea of Mr Shimizu regarding Toyo Tires’ business approach is in line with the Sustainable Development Goals (SDGs), also known as the Global Goals, which are set to be achieved by 2030.

I expect Toyo Tires will not only put current Serbian and EU standards into practise in Serbia, but that it will also show a high level of commitment to the environment with an eye to the year 2030.

It was announced at the end of 2020 that a new, major Japanese investment could arrive in Novi Sad, with the Nidec Corporation considering the creation of a factory for the production of electric vehicle motors. Do you know if this Japanese company has made its decision?

- I am aware that NIDEC, a world leading motor producing company, is making preparations for its project in Serbia, but I’m not in a position to prejudge the business decision.

In general, FDI from Japan to Serbia has been increasing sharply in recent years and the number of inquiries about doing business in Serbia that we receive form Japanese companies is also increasing. I feel like the interest of Japanese companies is growing steadily. The Embassy of Japan will continue to support Japanese and Serbian companies in pursuing their business opportunities in both countries, and I strongly hope that Japan and Serbia can strengthen our economic relationship even during the difficult times of the COVID-19 pandemic.

The Tokyo Olympics, which were postponed due to the COVID-19 pandemic, should be held during 2021. What are the biggest challenges for Japan as the host country of the games, apart from the fact that the delay will increase the costs of organising the games by approximately three billion U.S. dollars?

- The biggest challenges in hosting next summer’s Games would be, of course, countermeasures against COVID-19. Following the decision to postpone the Games, Tokyo 2020 took swift action to deal with the unprecedented situation. The government has

MATSUMOTO CASTLE

I would like to do my utmost to make the 140th anniversary of the Japan-Serbia Friendship in 2022 a wonderful opportunity to confirm and further promote our bilateral friendship, which was established through an exchange of letters between the Meiji Emperor of Japan and Serbia’s King Obrenović in 1882

Upon submitting your letters of accreditation, you were asked to convey an invitation for Emperor Naruhito to visit Serbia. It was mentioned at the time that the commemorating of 140 years of diplomatic relations could provide a good reason for such a visit at the highest level. Is there any interest in organising such a visit?

- We are grateful for the cordial invitation of the esteemed President to His Majesty the Emperor of Japan. The Emperor of Japan wishes to further promote friendly ties and goodwill relations between Japan and the Republic Serbia. I would like to do my utmost to make the 140th anniversary of the Japan-Serbia Friendship in 2022 a wonderful opportunity to confirm and further promote our bilateral friendship, which was established through an exchange of letters between the Meiji Emperor of Japan and Serbia’s King Obrenović in 1882.

now established a framework governing athletes’ movements and activities, including their entry to Japan and movements during the actual Games, as well as for spectators and all other people involved.

The COVID-19 pandemic is a first for humankind, and its effects are still ongoing. We know that it is challenging to host the Olympic Games under such circumstances, but this is precisely why we intend for these Games to prove that humanity has defeated the virus, as our Prime Minister says. Taking all possible measures to prevent infections, we will continue to work hard to prepare for a safe and secure Games. I wish for the Tokyo Olympic and Paralympic Games to bring hope and encouragement to people all around the world.

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INTERVIEW

NAOKI TSUKADA, GENERAL MANAGER, MITSUBISHI CORPORATION BELGRADE LIAISON OFFICE

Mitsubishi’s Commitment to Energy and

DIGITAL TRANSFORMATION Mitsubishi Corporation (MC) is a global integrated business enterprise that operates across virtually every industry in approximately 90 countries and regions worldwide. With a network of around 1,700 group companies, MC remains fully dedicated to growing its businesses with integrity and fairness, while contributing to a prosperous society.

M

C has had a presence in Serbia for several years, while the MC liaison office in Belgrade has been instrumental in supporting new business opportunities for the company.

Most recently, MC has been collaborating with Toyo Tires to build a factory in Serbia. This will be Toyo Tires’ first factory in Europe and its eighth overseas. Operations at the new facility will commence in 2022, with approximately 500 employees.

Mitsubishi Corporation (MC) continues to actively provide its expertise to help realise Japanese investments in Serbia. What are some highlights of your collaboration with Toyo Tires?

-Toyo Tires is a business and capital alliance partner of MC, and it has invested a total of around €400 million in Serbia with the construction of the new tyre factory. The new plant is due to start manufacturing operations in the spring of 2022, reaching a capacity of five million tyres annually (based on passenger vehicle tyres) by the summer of 2023. The factory will bring in new technology and create around 500 jobs.

The construction of this factory is Toyo Tires’ most significant investment in Serbia to date by far, considering the €367 million price tag for the first phase, the size of the facility and the fact that it is Toyo Tires’ first project with MC as a capital and business partner. In addition, the main contractor for the construction of the main facility, which will cover around 20 hectares, will be another Japanese company – Takenaka.

The total investment is worth €382 million and the exports of Toyo Tires’ products are expected to be worth around €240 million per year, which will be huge drivers for the development of the Serbian economy. We also expect this project to encourage other Japanese companies to enter the country.

The construction deadline is 17 months away, and the manufacturing complex for the fully-automated production of car and truck tyres will be located on a parcel of nearly 64 hectares, with a planned annual production of five million premium class tyres that will be heading to the European

and Russian markets. Toyo Tires will use the latest production technology to construct the plant in Inđija, where it will produce top-quality products at competitive prices and in an energy-efficient way.

You mentioned that the tyres made in Inđija will be produced in an energy-efficient way. Is this an example of Mitsubishi Corporation’s commitment to Energy Transformation (EX)?

-The transition to low-/zero-carbon forms of energy, which we refer to as “EX”, is impacting every industry, and we embrace the challenge of responding to climate change while delivering on our responsibility to provide a stable supply of energy to society.

We have continued adapting to our ever-evolving external environment since our company’s foundation, in order to grow together with society based on our guiding philosophy: The Three Corporate Principles. Our EX

The Toyo Tires investment is worth €382 million, while its exports will be worth around €240 million at an annual level

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initiatives align with our spirit of “Corporate Responsibility to Society”, helping to preserve the global environment. We are currently considering how MC can provide optimal solutions for social and environmental issues, and we plan to announce new initiatives towards realising a low-/ zero-carbon society by the end of the 2021 fiscal year.

Can you please tell us more about your Digital Transformation (DX) initiatives?

-MC has created a company-wide taskforce to launch a number of DX initiatives, starting with the food distribution sector. By leveraging MC’s strengths across numerous industries, each business group is working to develop concepts for cross-cutting DX initiatives across myriad fields.

Specifically, we are expanding our DX activities across the sectors of distribution, plant and mining operations and urban development, including smart city projects.

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INTERVIEW

GORAN PEKEZ, PRESIDENT OF THE JBAS BOARD OF DIRECTORS

Japanese Investments Are Like

ORIGAMI Together with the Government of Serbia and the Embassy of Japan, JBAS is also optimistic regarding the potential arrival of new Japanese companies that will have an additional positive impact on the development of Serbia and prompt it to become a better environment for the life and work of its citizens.

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he largest Japanese investment in Serbia, the construction of the Toyo Tires factory in Inđija, started in December 2020, during times when many foreign investors are refraining from bold moves. “Indeed”, says Goran Pekez, president of the JBAS Board of Directors, “the investment of Japanese company Toyo Tires, one of the world’s largest tyre manufacturers, is significant in many respects.”

The operations of this factory will have a direct impact on the development and economy of the entire country, considering that planned exports will contribute to Serbia’s macroeconomic stability, explains our interlocutor. “From a narrower point of view, the employment of over 500 workers in Inđija will contribute to more balanced regional development. The very fact that this factory is Toyo Tires’ first production centre in Europe indicates the company’s high degree of confidence in the stability of the Serbian economy.”

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At the same time, he notes, it encourages new investors from Japan, but also other counties, to opt to locate certain parts of their businesses in Serbia.

“As a representative of the Japanese Business Alliance in Serbia, I am very proud of the fact that this investment has shown that, despite the great physical distance between the two countries and altered business circumstances due to the Coronavirus pandemic, it is possible to further strengthen business ties between Japan and Serbia and to improve our economic and bilateral cooperation,” says Pekez.

Other investments from Japan have also been announced. What most motivates Japanese investors to launch their business activities in Serbia?

- Following the historic 2018 visit of Japanese Prime Minister Abe, many Japanese investors now view Serbia as a significant regional centre for CEFTA and the Western Balkans region or, in the case of manufacturing companies, as a strategic hub for exports to the markets of the EU, Russia and Turkey.

In addition to market opportunities, the willingness of the Republic of Serbia to create partnerships with investors is also of crucial importance to deciding on investment destinations.

It is my pleasure to note that investments from Japan to Serbia have been growing lately, in terms of invested funds. Until a few years ago,

JAPAN - BEAUTIFUL HARMONY

PARTNERSHIP

PROSPECTS

COMPASION

The willingness of the Republic of Serbia to create partnerships with investors is also of crucial importance when deciding on investment destinations.

We would be happy to see positive trends regarding further accession to the EU, trade liberalisation, the application of relevant legislation and the improvement of the business environment in Serbia.

We are proud and grateful to our members for assisting the Serbian healthcare system in order to mitigate the effects of the pandemic

they were measured in the millions, then in the hundreds of millions, and today we are expecting new ones that are perhaps worth over a billion euros.

Together with the Government of Serbia and the Embassy of Japan, JBAS is also optimistic regarding the potential arrival of new Japanese companies that will have an additional positive impact on the development of Serbia and prompt it to become a better environment for the life and work of its citizens.

How do Japanese investors and companies of Japanese origin differ from others?

- All Japanese companies operating in Serbia have financially stable backgrounds and these investments also imply transfers of high technology and a modern way of doing business. At the same time, we bring Japanese cultural We are thankful to have the direct support of President Vučić and values – high standards of safety at work, environmental protection, social responAmbassador Katsumata, who jointly visited the launch of construcsibility. Advanced innovative solutions are tion of Toyo’s factory building, as well as the best farmers of Japan applied in business processes, the busiTobacco – just in the course of December ness culture and organisational systems, among which I would single out Kaizen.

Together with the Embassy of Japan and the Government of the ReOur investors are becoming partners in building economies based on the values and aspirations of modern society - improving public of Serbia, we strive to strengthen the existing base, highlight climatic conditions, developing a digital environment and intensifying positive examples and motivate other companies to join the busiinternational trade and cooperation. I would even say that Japanese ness community that serves to improve relations between Serbia investments are like origami – from simple raw materials, with proper and Japan. We are thankful to have the direct support of President skills, knowledge and the continuous improvement of the process, Vučić and Ambassador Katsumata, who jointly visited the launch of sophisticated results are achieved. construction of Toyo’s factory building, as well as the best farmers of Japan Tobacco – just in the course of December. There is no better way How did your members respond to the challenge of the 2020 pandemic? to enhance bilateral economic development than to support projects - I am pleased to note that JBAS has conducted a number of activities that deliver the highest employment and investments. We hope to have to maintain communication among members and to help them face more such occasions in future. the challenges in the best possible manner. We are proud of all of our members, who have demonstrated an exceptional ability to adapt to What are the expectations of JBAS for 2021? change, maintain their market positions and keep performances at - JBAS member companies share global optimism that the Serbian high level, while undertaking all possible commitments to preserve economy will resume its positive trends in the coming period, while the health of their employees. we would like to see Serbia progressing through the post-COVID I would also like to mention that the pandemic has not impaired phase as quickly as possible, and with new energy for the society and the business interests of a number of Japanese companies in Serbia. economy to recover.

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We also fully support Serbia’s efforts to join the EU, in the hope that those efforts will develop further. The outcomes of these changes are expected to improve legislation, the environment, conditions for doing business and eventually quality of life. On the Japanese side, we hope that the Olympic Games will be organised in 2021, as planned, and many of our members are sponsors or supporters: for example, Toyota organised a series of events to promote technological achievements in order to support the staging of the Games. As JBAS, we will stand as a partner to promote preparations and hopefully celebrate Serbia’s sporting successes.

How satisfied are you with the Serbian Government’s measures to alleviate the negative consequences of the pandemic?

- I am pleased to note that the Serbian Government has been responsive to the COVID crisis, acting proactively to protect both the economy and the citizens, and successfully balancing health system resources and industry capacities.

On behalf of JBAS, I would like to express satisfaction with the resulting macroeconomic indicators, which show that the economy of Serbia has suffered minimum losses. Such data promise a shorter recovery period and the swift resumption of previously increasing

Until a few years ago, Japanese investments in Serbia were measured in the millions, then in the hundreds of millions, and today we are expecting new ones that are perhaps worth over a billion euros trends in the country’s development. In order to make further progress, it is also vital to maintain strong public finances and infrastructure development in this period, and we are happy to witness positive improvements in this regard.

How did JBAS support its members during 2020?

- During 2020 we focused on all topics that are of interest to the business of our members. Apart from support regarding COVID issues, we organised numerous seminars and training courses that were held online.

Our partners included the Embassy of Japan in Belgrade, JETRO, JICA, Serbian ministries and other institutions of the Republic of Serbia, as well as a large number of companies, organisations and associations. The topics we dealt with were tax issues, environmental protection, the labour market, finance and public procurement, while we also focused on Kaizen education, human resources and communications.

There has also been an intensifying of the activities of our committees, which deal with challenges in their particular lines of business, from industrial production and IT, to the automotive sector and high technologies.

The previous period also saw your members provide significant assistance to equip the Serbian healthcare system during the pandemic. Please tell us more about this.

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- We are proud and grateful to our members for assisting the Serbian healthcare system in order to mitigate the effects of the pandemic by providing donations in medical equipment, sanitary packages, goods and support related to medical treatment and providing mobility, but also supporting the fight against the virus through the direct involvement of their employees.

More concretely, we secured donations in the amount of 137,000 euros, with some of the beneficiaries including the Ministry of Health, the National Health Insurance Fund, General Hospital Vršac, the Clinical-Hospital Centre Dr Dragisa Misovic Dedinje, Senta Hospital and other hospitals, the Institute for Maternal and Child Health Protection in Belgrade, patients’ organisations for IBD (Inflammatory Bowel Diseases) - UKUKS, NORBS (the National Organisation for Rare Diseases in Serbia), beneficiaries of the UNICEF programme, the most vulnerable sections of the population that were additionally impacted by the COVID-19 crisis (the homeless, over 65s, people with disabilities, children, low income families). Moreover, representatives of JBAS and the B92 Fund also delivered 10 flow meters to the Zvezdara Hospital Centre.

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ROBERT LUKIĆ, TOYOTA SRBIJA CEO

INTERVIEW

Prioritising

THE WELL-BEING OF SOCIETY Toyota has always participated actively in the creation of a better society with its uncompromising commitment to quality, continuous innovation and respect for the planet

T

oyota has spent a quarter of a century investing in hybrid technology. The fact that Toyota’s 15 million hybrid-powered vehicles have made it possible to reduce harmful emissions by more than 120 million tonnes of carbon dioxide speaks for itself, notes Toyota Srbija CEO Robert Lukić.

Does the growing popularity of hybrids – even during a year that saw a huge drop in sales of new vehicles globally – provide the best confirmation of your company’s visionary approach?

- Our hybrids are among the most reliable and enduring vehicles on the market, and we now have the fourth generation of that technology on the scene. Other manufacturers want to reduce their shortfalls, and we are helping them by offering around 24,000 patents free of charge in order to speed up electrification. This is yet more proof that our number one priority is the well-being of society and that we don’t think exclusively about commercial success.

Toyota is a pioneer and an innovator in the entire range of ecological motors, for example in the application of hydrogen and fuel cells, as one of the sustainable solutions for transport and mobility in the broadest sense. The fact that clean water is emitted from the “exhaust” is reality rather than science fiction. And we should emphasise in particular the applicability of this technology to public transport, whether that’s buses, trucks or ships - even the biggest ones.

came, which shouldn’t be seen as assistance to certain manufacturers, rather primarily as a desire to improve the situation.

When it comes to Toyota and the sale of hybrids, Serbia is lagging far behind compared to Europe. There sales of vehicles with this type of drive has long since exceeded 50%, and is even above 60% in the West. Although there has been increasing in interest, our so-called sales mix hasn’t changed drastically compared to 2019, when there were no subsidies. Even back then, every fourth Toyota vehicle sold in Serbia had a hybrid drive, while just a year earlier that share was a modest 11%. Otherwise, the advantages of hybrids are not only in the domain of ecological protection. They also have lower operating costs and greater

Hybrid technology has gained the trust of customers through education and constant promotion, and primarily through proving itself in practise

In Serbia some 25% of Toyota vehicles sold are already hybrids. Did state subsidies contribute to that?

- Subsidies have primarily shown that the state is ready to engage actively in solving problems, and pollution is one of the biggest. Belgrade is constantly among the most polluted capitals in the world. Bor, Pančevo, Obrenovac and other places are rarely out of the red alarm zone.

Drivers of low-emission vehicles were practically fined for a long time, because they paid the same annual registration as the big polluters. After the correcting of that injustice, subsidies for eco-vehicles also

driving comfort (less noise). That’s why, for example, there are ever more hybrids represented in the taxi service. There are already over 400 of them in Niš alone.

What else can be done to make ecological, green vehicles even more accessible to customers?

- That’s a two-way street. On the one side are the manufacturers and the development of technologies that impact on reducing pollution, while on the other side are states and their administrations, which must recognise citizens’ interest in improving living conditions. Our government has taken a visible step forward by introducing subsidies, while the next step could be fairer taxation. Tax classifications according to engine volume have been left behind. In developed countries, the main criterion is environmental impact, i.e. harmful emissions. There are also other good practises, such as reduced costs of parking or access permits to certain parts of cities only for eco vehicles. As a whole, these then provide results and make the progress that we’re striving for.

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INTERVIEW

MILENA ARGIROVIĆ, DIRECTOR, TAKEDA

Better Health,

BRIGHTER FUTURE Takeda is determined to provide transformative healthcare solutions and products. At this company they feel a responsibility towards patients, colleagues and other stakeholders, but also to the communities where they operate

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akeda introduced a refreshed corporate philosophy at the end of last year. As our company and the environment evolve, so must the corporate philosophy that tells the story of who we are, what we do, how we do it and why it matters. These reminders are especially pertinent during the ongoing pandemic, allowing us to focus and maintain our commitment to patients, says Milena Argirović.

Everything at Takeda begins with the question “how can we do even more for our patients?”. How is this question answered?

- I want to relay some of the core components of the corporate philosophy and what it means for us and what we aspire to be in the future: create “better health for people, brighter future for the world”. This should guide everything we do. Our vision describes our aspiration for the future: to discover and deliver life-transforming treatments, guided by our commitment to patients, our people and our planet.

Takeda is determined to provide transformative healthcare solutions and products. We have a responsibility to patients, colleagues and other stakeholders, as well as to the communities where we operate.

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We collaborate closely with patients, providing them with relevant support programmes.

The contribution of Takeda is also more visible than ever now, during these COVID times. We are able to ensure the continuous delivery of our products and overcome all obstacles, and I’m proud to say that there hasn’t been a single day of disruption in the delivery of our

The COVID pandemic helped us to recognise the importance of two things: innovation and healthcare products to patients in Serbia. This is one thing, the most important one, I would say. And the second most important thing is that we were really able to help patients who are non-COVID sufferers to receive their healthcare through the introducing of support programmes, such as Telemedicine, very early during COVID – already in April of last year. Through this programme, all IBD and Lymphoma patients were able to have regular check-ups from their homes, enabling both

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innovative product for HAE (hereditary angioedema) patients, where we were one of the first countries in Europe and the first country in Eastern Europe to deliver this treatment to patients, due to fast marketing approval and the clear value of the product being recognised and funded by the authorities. Despite COVID restrictions, we were able to place Serbia at the centre of the world by bringing top HAE experts from Europe to exchange medical expertise during a fully digital, virtual expert meeting. On this occasion, Serbian, German and Italian experts exchanged their knowhow and experience in the field of HAE. This enabled a new treatment paradigm implementation in Serbia and better disease outcome and quality of life for those of our patients who are living with this severe rare disease

them and their physicians to stay safe while also preserving our overstretched healthcare system from further overload.

This project has been recognised by the Government of Serbia and we are working with them to incorporate it into the public healthcare system.

Has the COVID-19 pandemic finally led to us recognising the significance of health and pharmaceutical companies?

- COVID pandemic brought an unprecedented disruption to the healthcare system.

However, it also helped us to recognise the importance of two things: innovation and healthcare. Innovation is now not limited only to products, but also encompasses innovative services, including digitalisation of the entire healthcare system. This is what COVID has taught us in general.

The importance of innovative pharmaceutical companies like ours is increasing.

And collaborations between pharmaceutical companies and healthcare systems have been more evident than ever before.

Through our constant communication, we were able to supply the market, ensure treatments for both COVID and non-COVID patients, and ensure some services that innovative pharmaceutical companies can provide, such as telemedicine and other digital solutions. Takeda Serbia is currently partnering up with other innovative Japanese companies from the high-tech sector in order to find top-notch solutions that will support the further development of our healthcare system and patient care.

We will no longer be seen as companies that are only delivering products, rather we will form more and earlier partnerships with all stakeholders, including the government, payers and patient organisations. We will have to start our partnerships and the planning earlier in the life cycle of a product, while also broadening the scope of partnerships.

We won’t merely register a product and then leave it to the market, rather we should also think about how we can work together with the authorities and patients to support the further development of healthcare systems and provide overall support to societies in the countries where we operate.

Being a company from a non-EU country, we are doing our best to speed up the regulatory and legal processes in order to bring transformative medicine at the same time or just slightly after the European Union countries. Let´s mention here Takeda’s latest

What did you gain from the latest acquisition of biopharmaceutical company Shire in 2019?

-We have grown and gained another additional, exciting portfolio. On the other hand, the Shire and Baxalta acquisitions, and along with that the divestment of our non-core portfolio, brought us the best way to remain focused on key therapeutic areas and provide the best service to patients.

That acquisition came back in 2019, and I am happy to share that, in April this year, we will formally become a single legal entity in Serbia. Over the past 2 years, we had to adjust the processes and the organisation, but also to preserve business continuity and provide continuous support to patients.

Huge recognition for this achievement belongs to the whole Takeda team, who worked tirelessly to deliver this ambition goal.

Even during the integration period, our patients are our key priority and, as I have mentioned, it is only by staying focused that we can ensure we have enough time and resources to address these needs. Our strategic imperative is to responsibly translate science into highly innovative, life-changing medicines. This means that we focus on diseases with the highest unmet needs, to bring medicines of the highest quality to market, as soon as possible. As a company, we are committed to delivering only life transformative medicines, which is why we are present in areas where our products really add significant value and bring transformation to people’s lives. And this is also our commitment and mission for the future.

We were the first country in Eastern Europe to deliver the latest innovative product for HAE (hereditary angioedema) to patients

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JAPAN - BEAUTIFUL HARMONY

INTERVIEW

JIRO TAKEICHI, CHIEF REPRESENTATIVE OF THE JICA BALKAN OFFICE

We Wish to Deepen

OUR PARTNERSHIP

We are looking forward to the moment when we will be able to meet face-to-face and continue working on our projects together with our Serbian partners.

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ince the declaring of the pandemic, the JICA Balkan Office has prioritised the health of its office staff and their families.

Therefore, following the recommendations of the Serbian government, shorter working hours and work from home were introduced. And a consequence of this was that communication was shifted to online meetings, first internally and then also with counterparts and partners. Although the same working style is still a must, JICA is now focused on activities that aim to solve the issues of partner countries. “It is so important that, through the activities, we 20

also convey to our partner countries the Japanese working style and way of thinking and to gain their understanding,” says Jiro Takeichi, Chief Representative of the JICA Balkan Office. “Since we wish to deepen the partnership between Japan and Serbia through our mutual understanding, we are slightly concerned that real understanding cannot be achieved if there is no face-to-face contact. We are therefore looking forward to having the freedom of movement that existed before the pandemic, so that Serbian and Japanese people can meet face-to-face and continue working on projects together.”

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Given your focus on public health and environment protection, and the aim of creating societies that are resilient to pandemics, which projects have you formulated with the Serbian government in the meantime?

- Regarding the health sector, the Serbian government is taking serious measures to prevent diseases and had formulated public health policies before the pandemic. In order to contribute to these government policies, JICA previously provided medical equipment to hospitals in Belgrade, Novi Sad, Niš and Kragujevac. Moreover, JICA has also for many years provided assistance in improving the early detection of breast cancer by donating medical equipment and technical assistance.

In this pandemic as well, JICA and the Serbian Ministry of Health are continuing their cooperation and there is a plan to strengthen the health system, provided we reach agreement.

On the other hand, in order to strengthen the resilience of the agricultural sector, we started a pilot project with the Ministry of Agriculture to improve the living standard of farmers. We focus on the fact that Serbian fruit is highly valued abroad, and that cultivating strawberries in greenhouses would increase the production output and they could be exported to the Japanese market, which further leads to increasing farmers’ income and improving their livelihood. This pilot project is implemented by Serbian company Master fruits, in partnership with Japanese company Itochu Corporation.

friendship between the two countries and that is the main goal of the volunteer programme. Volunteers aren’t only dispatched to Belgrade, but rather also to other Serbian towns, such as Jagodina and Kraljevo, where they assist local institutions in sporting activities, work with people with disabilities, in the disaster prevention sector, and also teach the Japanese language. The volunteer programme has gained popularity thanks to their activities. However, they suddenly had to return to Japan temporarily, due to the pandemic. Among them are volunteers whose assignment ended during their temporary return to Japan. They lost the possibility to come back to Serbia to continue with their activities. Others were eager to return to Serbia and continue their work. I would like to introduce two of them who returned to Serbia in December 2020. One of them is Mr Yuya Miyagi, who has been dispatched to the Belgrade Sports Association for Persons with Disabilities. In Serbia, where the social participation of persons with disabilities is still limited, he was kindly welcomed by colleagues and beneficiaries of the association, as he supported them in enjoying sporting activities and improving their quality of life. At the moment of his return to Serbia, he was almost at the end of his assignment, but he used the opportunity to wrap up his activities here and bid farewell to the members of the association. Another volunteer who returned recently is Mr Kazuki Yuji, who works at the Karate Club in Aranđelovac. The owner of Karate Club KNJAZ, one of the biggest karate halls in Serbia, expressed his wish to host a karate teacher from Japan who will convey the Japanese spirit of martial arts to the members of this karate club.

Mr Yuji was therefore selected and dispatched, as a suitable volunteer who had Aranđelovac success in his previous work as a volunteer in another country. Mr Yuji will live in Aranđelovac and work at the Karate club until January 2022, so you might even meet him. While closely following the pandemic situation, the JICA Balkan Office plans to continue increasing the number of volunteers in Serbia.

We hope that the Kaizen system, which was born in Japan but has grown in the Western Balkans, will be used as a key to regional development and will become a brand of the Western Balkans

We know that Japan Overseas Cooperation Volunteers had to return to Japan after the outbreak of COVID-19. How many of them were dispatched to Serbia between the beginning of the program and March 2020, and what were their experiences?

- At the moment the pandemic was declared, in March 2020, there were eight volunteers in Serbia. The volunteer programme includes young and senior volunteers who are dispatched to Serbia and work together with their Serbian colleagues for two years, introducing the Japanese working style and Japanese way of thinking in order to familiarise them more with Japan. Furthermore, volunteers also disseminate their experiences of Serbia in Japan and the Japanese people thus learn more about Serbia. Achieving this mutual understanding leads to strengthening the

It was in August last year that you signed a very important project related to the introduction of a sustainable and environmentally friendly public transport system in Belgrade. Can you please tell us more about the expected goals?

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- Following the famous project ‘Japanac’ (yellow bus donation), we are proud to support the modernisation of public transport in Belgrade. As it is the main mode of transport in Belgrade (almost half of daily trips are by public transport, followed by private cars at 26% and walking at 24%), the new project will provide a direct positive impact on the quality of life in Belgrade. This project will tackle the issue of operation management based on a trip demand survey and its analysis, as well as financial sustainability by improving the fare collection system. Our expectation is to have an efficient and sustainable public transport system here in Belgrade.

- The Knowledge Co-Creation Programme (KCCP) is system in which administrative officials and office workers from all around the world gather in Japan, take lectures in a specific professional field, such as environmental protection, healthcare, education etc., and prepare an action plan applicable for their countries. Japan is now a developed country, but the country was devastated after World War II ended and it was necessary to rebuild the social system. The history and experience of Japan, which arose from this situation and rebuilt its state, is used as knowhow in this programme. About 400 different KCCPs are organised in Japan every year, and many participants from Serbia have so far taken part. However, this programme has been hit hard by the pandemic. The recommendation was to organise KCCP courses online, if possible, and some of them have been rescheduled. However, we shouldn’t forget that the main purpose of the KCCPs is for participants to actually visit Japan and experience it for themselves.

Moreover, it is a good opportunity for administrative officials from different countries to meet, spend some time together and establish a network. We hope that we will again welcome Serbian administrative officials to Japan as soon as the situation normalises.

Very successful long-term cooperation between the Development Agency of Serbia and JICA in the field of mentoring in the Western Balkans ended in 2020. How would you summarise this experience?

- As they aim for accession to the EU, Western Balkan countries first need to strengthen their system in terms of economic revitalisation and the creation of employment, and to do this the key factor is the promotion of small and medium-sized enterprises (SMEs), as the main generators of domestic employment. For a long time, by focusing on dialogue with business owners, JICA How satisfied are you with the implehas been supporting the establishment mentation of other projects related to of a mentoring system that increases Mr Miyagi and Mr Yuji on their way back to Serbia in December 2020 sustainable resource development? the productivity of SMEs. Mentoring - In April 2020, a project that covers services are not merely consulting the environment pollution caused by services – rather they are considered mining excavation and deals with the as working alongside business owners issues of developing technology for and employees to help change their rehabilitation of the environment, as attitudes to business. In the meantime, well as sustainable resource developabout 200 mentors have been trained ment, was finalised after five years of and 2,500 companies from this region implementation. The project location have so far taken advantage of these was the Bor mine. Work on scientific research to develop a modern mentoring services. Japan has amassed experiences in mentoring for technology was carried out jointly by the Mining and Metallurgy Instimany years, by diagnosing companies’ challenges. After interviewing the tute Bor, the University of Belgrade Faculty of Mechanical Engineering employees of a target company, mentors analyse the challenges they and Akita University from Japan. Through this project, the level of face by utilising the essence of KAIZEN and 5S. After more than 10 years pollution was evaluated using data gathered in the field and provided of cooperation in this field, a mentoring service has been established in by satellite technology. The project also resulted in the development Serbia and the mentoring experience is now disseminated to otherWestern of complex technology for extracting gold particles from polluted Balkan countries. We are very happy to know that our mentoring services soil. In summarising the result of this joint research, I would say that are applicable in the Western Balkans and that our mentoring system is the researchers of all institutions involved worked with devotion to appreciated here. In order to generate the economic development of the contribute to sustainable resource development and provided the whole region, we are now preparing to dispatch Japanese experts who will final report to the Serbian government, as was planned. Moreover, continue our cooperation. We hope that the mentoring system, which was by working on this project together, researchers from Serbia and born in Japan but has grown in the Western Balkans, will be used as a key Japan created a strong network and I am happy that this has nurtured to regional development and become a brand of the Western Balkans. one more generation of researchers. I also hope that the connection established between the researchers from our two countries will also Based on your expectations, when and how will training resume within continue to be a resource of each research institute in the future. the Knowledge Co-Creation Programme (KCCP) Group?

After the programme was halted in March 2020, due to COVID-19, Japanese volunteers recently retuned to Serbia to share the Japanese working style and Japanese way of thinking with Serbian citizens

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Vision Leads TO RESULTS The operations of public utility company JKP Mladenovac are grounded in financial stability, prudent and transparent use of money, dedication, initiative, inventiveness, and industrious workers and responsible managers who pursue the goals set

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udging on the basis of the appearance of the town’s streets today, but also rural roads covering the territory of the municipality; judging by the quality of the water supply, the dynamics of waste collection and the realisation of all works under the jurisdiction of this public utility company, the residents of Mladenovac have plenty of reasons to be satisfied A stable supply of potable water, unobstructed drainage of wastewater and a cleaner town – that’s how Vladeta Lučić defined his vision and goal upon being appointed director of JKP “Mladenovac” just over five years ago. He knew that he wouldn’t be able to realise any of that without financial stability, the prudent and transparent use of money, accountability for every move and every decision, dedication, initiative, inventiveness and hard-working colleagues.

However, thanks to the fact that he’d spent the previous 12 years working in various positions at JKP “Mladenovac”, Mr Lučić has – as he himself notes – clear insight into what wasn’t working. Having worked as a design and supervision engineer, head of the Maintenance Service, director of the ‘Water and Sewerage’ Sector and deputy general director, he was able to see where changes were needed and what kind. This led to improvements in the organisation of work, greater staff discipline and a more prudent attitude towards citizens’ money.

Judging on the basis of the appearance of the town’s streets today, but also rural roads covering the territory of the municipality; judging by the quality of the water supply, the dynamics of waste collection and the realisation of all works under the jurisdiction of this public utility company, it would seem that the director’s vision has been realised.

However, despite these positive results, Mr Lučić and his colleagues want everything to be even better, which is why they invest a lot of

energy and exert a lot of effort to modernise the equipment and machinery. They don’t sit idly on their hands and wait for money to come from the budgets of the municipality, the town or the republic, rather they try to secure everything they require to do their work on their own, with their own funds earned from providing services under the scope of their core activity and through participation in various projects.

As such, last summer – according to official information and the financial report – they used their own funds to purchase a new Iveco tanker truck with a capacity of 8,000 litres of water, which is installed

Two new vehicles – a refuse collection vehicle bought as a donation from the Government of Japan and a tanker truck purchased from the company’s own funds – have eased work for employees and improved the quality of services with the appropriate equipment, from a pump to a water sprayer. This vehicle is used to a great extent by the workers of JKP “Mladenovac” for the transportation of drinking water to citizens, as well as for maintaining hygiene and washing streets.

And it was just a year and a half ago that the Government of Japan donated 62,345 euros for the purchase of an Iveco combined refuse collection vehicle. This vehicle has a volume of seven cubic metres and is used to collect waste in narrow streets that can’t be accessed by large 16-tonne trucks. It is thanks to this vehicle that the quality of household waste removal services have improved, but also the working conditions of workers employed in the cleaning sector. It is also important to note that JKP “Mladenovac” applied independently for this donation, among 12 local organisations that were included in the project to improve the natural environment in the Republic of Serbia.

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JAPAN - BEAUTIFUL HARMONY

INTERVIEW

VICTOR VEKLITCH, VICE PRESIDENT AND GENERAL MANAGER FOR ADRIATICA AT JAPAN TOBACCO INTERNATIONAL

The Best Investors Bring

NEW VALUE EVERY YEAR Manager for Adriatica at Japan Tobacco International (JTI).

However, thanks to its strong fundamentals, JTI managed to be the only tobacco company in the Western Balkans to grow its market share.

“In Serbia we managed to sustain our core plans. Having tobacco leaf production, Japan Tobacco International remains the industry’s biggest employer in Serbia, with 3,000 people engaged from the fields in Vojvodina to shops across the country,” says Veklitch.

JTI suffered no workforce reductions due to the COVID crisis and also remained the country’s fifth biggest taxpayer.

“We have been consistently increasing our contribution to the Serbian economy for the last 14 years – every year,” concludes Veklitch.

Japan Tobacco International has been consistently increasing its contribution to the Serbian economy every single year for the last 14 years. Although industry has been impacted by the pandemic in Serbia, JTI has managed to sustain its core plans and keep up with investments

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truly challenging year is behind us, but Japan Tobacco International managed to maintain its business during the pandemic.

Despite the difficult times, the company showed exceptional care for employees and adapted swiftly to the new circumstances, resulting in it receiving the prestigious Top Employer Serbia Award for the sixth year in a row. Furthermore, the company just opened the new JTI regional headquarters in New Belgrade.

“Our industry has been less affected by the pandemic than some others, but we had our share of consequences. As I speak for both the Serbian and Western Balkan markets, we noted reduced consumption and downtrading,”says Victor Veklitch, Vice President and General 24

Were these results a matter of luck under the circumstances of the pandemic, or something else?

- We must primarily thank our people for these achievements. Our focus during the pandemic was on providing a safe and motivating working environment, but also on maintaining team spirit by organising virtual events and communication. Looking forward to overcoming the COVID restrictions, we just opened JTI’s new regional headquarters in New Belgrade, which is worth three million dollars! This new modern and highly flexible office space will make our work together and day-to-day tasks easier and more enjoyable.

I’m happy that JTI’s dedication during this difficult year has been recognised and that we were awarded with the certificate Excellence During Challenges, as a company that showed exceptional employee care and adapted rapidly to the new circumstances. We also received the prestigious Top Employer Serbia award for the sixth year in a row.

Are you satisfied with your cooperation with the Serbian Government; are they open to listening to the needs of business?

- The key to predictability in our industry, irrespective of the pandemic, is a stable tax policy. Our contribution in Serbia is big: excise duties on tobacco products account for 8.3% of total budget revenues and 10% of total tax revenues. I am glad to say that the Serbian Government and National Assembly extended the tobacco excise duty calendar for five more years, thus providing both predictability and further growth of tax revenues for the state budget. In five years, Serbia will attain the minimum EU standards of taxation, thus this is also an issue of harmonisation with the EU. Illegal trade in tobacco also impacts massively on your industry and state revenues. Has this part of the grey economy changed during the pandemic? How is your company contributing to preventing illicit trade?

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- Illegal tobacco trade did not slow down, especially in the distribution of bulk tobacco. “Creative” smugglers have found new channels to their consumers, such as social networks and websites. It is important that JTI IN NUMBERS • Tobacco industry’s biggest employer: total of 3,000 people engaged • Serbia’s fifth biggest taxpayer: 2.6 billion dollars paid since the factory’s acquisition in 2006.

• Capital investments: more than 180 million dollars • Value of exports: 300 million dollars since 2007 • Contribution to the Serbian economy in 2020: almost 317 million dollars the government’s taskforce on the illicit tobacco trade, led by Police Director Rebić, continues the fight against illicit trade, with intensified inspections and strict penalties. JTI will continue providing satellite surveillance of tobacco fields, thus allowing the government to have a direct impact on preventing the supply of illegal tobacco. Since launch of this system in 2017, the Police have destroyed around 250 hectares of illegal tobacco fields that had the potential to damage the state financially by some 327 million euros, which is equivalent to the cost of building 30 kilometres of motorway. JTI also donated sniffer dogs to customs officers and the police , as well as supporting the Trade Inspectorate’s project aimed at preventing online sales of tobacco. An effective fight will keep the illegal share of consumption in single digits and unable to steal from the state budget.

Has the crisis changed your investment plans?

- Although this is a challenging period for the entire planet, we are very proud that we’ve been able to keep investing in our business. JTI’s con-

“I’m happy that our dedication during these difficult times has been recognised with the awards Excellence During Challenges and Top Employer Serbia” tribution to the Serbian economy in 2020 was almost 317 million dollars, from capital investments to taxes and salaries.

What is your expectation from the business environment in Serbia in 2021? Do you expect the Serbian economy to recover quickly?

- It is difficult to predict anything in this time of uncertainty that’s been brought to us by the pandemic, but I hope that the new year will bring better living and working conditions. The fact that Serbia’s economic contraction in 2020 is among the lowest in Europe provides solid ground for optimism in the future. The state implemented a large fiscal package, among the largest in emerging Europe, to support businesses and jobs, and it is not unrealistic to expect predicted GDP growth of 5.5%. This progress comes from the significant efforts of President Vučić and the Government, who have done a lot to maintain the economic performance at a high level despite the difficult times.

Serbian President Vučić and Japanese Ambassador Katsumata visited one of JTI’s farms last December. How have you managed to maintain your cooperation with primary producers?

We are strategically committed to the development of tobacco production in Serbia and target 50% purchase of Serbian tobacco crops.

We are proud to be both the largest producer and the only foreign company that buys domestic tobacco. At the same time, it is a great responsibility for us – with about 3,000 tobacco growers, members of their families, seasonal workers and our employees earning from our production. We are truly thankful to President Vučić and Ambassador Katsumata for continuously supporting us and our partners. That provides great motivation to continue setting new business records.

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INTERVIEW

OLIVER LEPORI, JBAS EXECUTIVE DIRECTOR

Being In The Driving Seat

IS OUR DUTY

The success stories of our members and the interest in cooperation with Japan among local companies are important signs of improved conditions for investing in the Serbian market. Developments in this field are fast-paced, and it is the duty of JBAS to be in the driving seat.

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he Japanese Business Alliance in Serbia (JBAS) was founded upon the initiative and following the enthusiasm of a number of representatives of Japanese companies operating in Serbia. It has since gone on to become a strong pillar in maintaining Japanese-Serbian business ties and improving bilateral cooperation between the two countries. It is today recognised by the Japanese Chamber of Commerce and Industry and is also a reliable partner of the Japanese International Cooperation Agency, JICA, and the Japan External Trade Organisation.

Oliver Lepori, the new executive director of JBAS, started his career working in managerial positions for companies operating in the international business environment in the EU, the Balkans and the Republic of Serbia. In this interview, one of his first in his new role, Mr Lepori draws a vision of the further development of the Alliance.

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“The vision of further development of the Alliance certainly implies a gradual and smart increase in the number of members of the Alliance, improvement of the set of existing services, securing support for foreign trade and intensifying dialogue with key stakeholders, in order to achieve the maximum results of bilateral cooperation between Japan and Serbia,” says Mr Lepori. “We intend to concentrate on activities that are of particular importance for the business of our members and to help them navigate the regulatory framework and all relevant issues influencing their industries.

“Since the experience and support of Japanese companies already operating in Serbia have contributed directly to the arrival of new investors and the creation of new jobs, we will also pay special attention to attracting new investments from Japan,” adds our interlocutor.

In your opinion, what are the main challenges in the development of Japanese-Serbian relations?

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- On the one hand, there are numerous obstacles in the form of bylaws applied, the grey economy, customs regulations and other restrictions, which significantly hinder the arrival of powerful companies from Japan and elsewhere in Asia. In this regard, we believe that constructive dialogue and support to the Government of Serbia from our expert industrial groups is very important for improving the business environment. On the other hand, there is still plenty of room for the local community, both the general and business communities, to learn more about the Japanese culture, so in the coming period we plan to further promote it, together with our partners. We believe that the eagerly awaited Olympics in Tokyo, which are directly sponsored by some JBAS members, will certainly bring more of Japan and its brilliant achievements to our society.

also within our priorities. One of the results of this cooperation is that, with JBAS support, Serbian companies can directly offer their products and services to the Japanese market, but also receive direct offers based on any specific requirement they might have.

What activities for members can be organised online?

- The coronavirus crisis has taught us that a considerable part of business, even including events with high attendance rates, can be shifted to the virtual world. JBAS organised numerous activities that were held online in 2020. However, although the offer of applications and communication possibilities are very diverse, most of us are now noticeably missing live contacts. We therefore hope that we will soon be able to gather safely again.

In the meantime, we plan to intensify the promotion of Japanese values, the transfer of new technologies and skills, and to promote individual members.

The Alliance grew in the previous period. How many members did you enter 2021 with?

Which of Japan’s positive industrial practices could be applied - We entered 2021 with 45 members. JBAS is proud of each in Serbia? of them individually, for their contribution to strengthening - Japan made it a priority to increase automation, artificial Japanese-Serbian business ties, regardless of whether they are intelligence and digitisation in a variety of sectors. It has been of Japanese or Serbian origin, and regardless of the industry in leading the world in terms of robotics since the 1970s and has which they operate. Our community represents a strong, unified continuously maintained its position as the world’s top innovator. voice promoting partnership between Serbia and Japan. We therefore plan to develop closer relations between our members in the future, in order to strengthen the We intend to concentrate on activities that are of potential of bilateral cooperation.

particular importance for the business of our members

What kind of support do you expect from the Embassy and to help them navigate the regulatory framework and of Japan in your further work? all relevant issues influencing their industries -The Embassy of Japan, headed by H.E. Ambassador Katsumata Takahiko, is one of the key factors for Good practices could be used to accelerate solutions to certain expanding bilateral cooperation with Japan in the period ahead. problems faced by our manufacturing or services sectors, deOur two institutions are focused on each other in their work and pending on the specific local requirements. our coordination of JBAS activities with the Embassy is very Top economic development goals set by the EU - such as beimportant. Close connections have been developed over time, ing climate-neutral, the green economy, fit for the digital age, and we expect new energy and intensified communication to rural development and highly developed and regulated digital meet our common goals in the future. services - have been an everyday reality in Japan for a decade already. Serbia and Serbian companies can benefit significantly How will you nurture cooperation with other chambers and from the further improvement of cooperation with Japan. associations in the coming period?

- We highly appreciate and respect the work of all chambers Do you find that the atmosphere today is more favourable for and associations in Serbia. I believe that cooperation with these attracting Japanese investors to Serbia? institutions is necessary, because our members operate together - Due to the joint efforts of the Government of the Republic of on the Serbian market and we both share its good practises, but Serbia, the Embassy of Japan and our industrial committees, we also face the same obstacles to doing business. the conditions for investing in the Serbian market are improving Together we can do more to improve capacities for building a every day. The success stories of our members and the interest competitive economy and improving the regulatory framework, of local companies in cooperating with Japan are important inwhich will have a positive impact on industry and the Serbian centives for new investments and the expansion of cooperation. economy in general.

Developments in this field are fast-paced, and it is the duty of Apart from this, continuing to collaborate closely with JICA, JBAS to be in the driving seat.

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JAPANESE ECONOMY

TOWARD SOCIETY 5.0 With new state intervention targeting digitisation, Japan will further enhance its position as a leading nation for innovation. The Japanese vision of Society 5.0, in which information technology and artificial intelligence are inspired by the need for both GDP growth and the amelioration of the consequences of an ageing population.

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he Japanese economy is slowly but steadily recovering from the challenges posed by the prolonged pandemic. In December 2020, the Japanese government announced a massive economic stimulus package that must provide particular support to environmental measures and digitisation. Japan has the world’s largest electronics goods industry and is often ranked among the world’s most innovative countries, while the new state package may further help the country in retaining that position.

Japan’s budget allocations for innovation activities was 3.8 trillion yen (US$35 billion) in 2018 and 4.2 trillion yen (US$38 billion) in 2019.

Spurred by such a political driving force, Japan’s investment in the development and application of digital technologies, as well as in basic research, has consistently received significant boosts.

In the face of increasing competition from China and South Korea, manufacturing in Japan is today focused primarily on high-tech and 28

precision goods, including hybrid vehicles and robotics. Many expect that the post-COVID-19 world will further emphasise the importance of digital transformation, strong R&D and innovation, as major growth drivers.

According to the latest IMF report, global growth is expected to shift back from negative to positive (-4.4 to +5.2%), and Japan is expected to see positive growth (-5.3 to +2.3%), albeit at a slower pace of recovery.

Despite positive outlooks, experts believe that emerging from the crisis will be a tough job even for the most advanced economies.

According to a conservative forecast by the Japan Centre for Economic Research, it will take four years for the economy to return to its pre-COVID-19 state.

Credit rating agencies in Japan are maintaining the ratings of companies with rising debt. As a result, there has been no change in

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corporate ratings even with the economic downturn. According to economists, this means that banks’ bad debts have been kept in check without increasing. Obviously, some companies may face huge over indebtedness, while experts warn that some industries - in particular the aviation and similar industries - need public capital injections.

The Japanese government is slightly more optimistic than the private sector. Foreign demand is strong and gives hope that Japan’s economy will receive a strong boost, which is good news given that domestic demand is low as consumers remain cautious. As noted, a growing trade surplus accounted for more than half of Japan’s Q3 2020 rebound in real GDP, and helped reverse two consecutive quarters of declines. There are also expectations that the Regional Comprehensive Economic Partnership - a free trade deal between ASEAN countries, Japan, China, Australia, New Zealand, and South Korea - will further boost exports as tariff reductions are phased in gradually.

Japan is also providing subsidies to companies that will build factories in Japan or Southeast Asia in an effort to diversify production away from China. It could also support Japanese exports.

Still, the Japanese government has a lot to think about when facing some of the long term challenges.

Japan’s population is ageing and shrinking fast. With a median age of 48.4, Japan’s population is the world’s oldest. The government of Japan projects that, by 2060, there will be almost one elderly person for each person of working age.

As projections show, over the same 40-year period Japan’s current population of 127 million will shrink by over a quarter, while the accelerated speed of ageing and shrinking of its population will pose economic and other challenges for the country.

As the IMF points out, the ageing and shrinking population will strain Japan’s public finances, as age-related spending—such as on healthcare and pensions—rises as the tax base shrinks.

As a result of these growing challenges, Japan needs to strengthen the mutually-reinforcing policies of “Abenomics”—including monetary easing, flexible fiscal policy and structural reforms (particularly labour market reforms). The IMF suggests that this comprehensive set of policies is needed to boost potential economic growth, lift inflation to meet the inflation target of the Bank of Japan and stabilise public debt.

This requires an accommodative monetary policy stance, including by maintaining the Bank of Japan’s short- and long-term interest rate targets to support growth and inflation, increased efforts aimed at maintaining financial stability, combined with supportive near-term stimulus and long term structural reforms, particularly in the area of labour-market reforms. This is the top priority, as these moves can deliver the most gains in terms of growth and supporting higher inflation. Among them are Increasing training and career opportunities for workers without lifetime employment, most of whom are women.

Furthermore, reforms have to encompass older workers and foreign

workers. In the case of the first (women), increasing the availability of childcare services will support women’s participation in the labour force. In the case of the second, abolishing firms’ right to set a mandatory retirement age will support older workers.

Some of the classical economic measures deployed include product and service sector deregulation, reforms of small- and medium-sized enterprises, and corporate governance reforms. Those may in turn lift productivity and investment. Reforms to further liberalise trade and promote foreign direct investment will further support investment and growth in Japan.

The IMF believes that almost 60 per cent of the predicted demographic-driven growth slowdown might be eased by the proposed set

There are expectations that the new Regional Comprehensive Economic Partnership - a free trade deal between ASEAN countries, Japan, China, Australia, New Zealand, and South Korea - will further boost strong export figures for Japan’s economy of reforms. Moreover, automation can also help mitigate the challenges brought by an ageing and shrinking population, particularly automation in healthcare, transportation, infrastructure and fintech.

Indeed, as of 2016, Society 5.0 (which stands for a super-smart society) has represented the big societal transformation plan of Japan. While Industry 4.0 envisages the digital transformation of manufacturing, Society 5.0 aims to tackle several challenges by going far beyond just the digitisation of the economy towards digitisation across all levels of Japanese society and the (digital) transformation of society itself.

Five key themes are next generation mobility/smart city, smart public services, next-generation infrastructure, FinTech (financial technology)/cashless society and next generation healthcare.

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INTERVIEW

MLADEN JEVTIĆ, SALES MANAGER ADRIATIC, AT HITACHI VANTARA

Customers Eager

FOR RELIABLE SOLUTIONS Hitachi Vantara has long represented the gold standard for highperformance data storage, but in 2021 the company is also raising the bar when it comes to mid-market storage.

Woven into every segment of its operations is the Japanese culture, in which the focus is squarely on the customer

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his Japanese company and its partners are excited to extend powerful new enterprise-class offers to midsized organisations in Serbia, in order to empower them to accelerate their transformation and achieve their business objectives Hitachi Vantara enables all the industry-leading capabilities and intelligent software that have fuelled the success of the Enterprise platform (VSP 5000) down market to our new Mid-market products (VSP E590 and E790), with aggressive price points and enhanced ease of use. For Midrange customers this means: no need to compromise on reliability or performance while building state-of-the-art digital infrastructure to drive existing and new business opportunities.

With data volumes growing nearly twice as fast as IT budgets (19% Y/Y vs. 10% Y/Y), a critical pain point is represented by the storing of data and making it accessible to customers and their applications. As most companies in Serbia fall in the “mid-sized”

category when it comes to IT needs, they need solid infrastructure that is able to deal with mushrooming data demands. With fewer IT staff and resources, mid-sized customers are eager for reliable solutions that can reduce their storage costs and drive efficiency.

Our well-known 100% guarantee also applies to the new series of products. With the guarantee we give to users, we guarantee

With the guarantee we give to users, we guarantee 100% availability of data on our devices and no loss of data

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100% availability of data on our devices and no loss of data. This is something that our customers around the world and in our country appreciate, because they recognise the quality of equipment and support they receive from Hitachi.

Hitachi Vantara and our partners are excited to extend these powerful new enterprise-class offers to mid-sized organisations in Serbia, in order to empower them to accelerate their transformation and achieve their business objectives in 2021!

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TECHNOLOGY

The Land Of RISING AI

How Japan Uses AI and Robotics to Solve Social Issues and Achieve Economic Growth

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utomation has become part of the global manufacturing line, where robots take on repetitive jobs, like filling boxes or welding a car frame in the same way, day after day.

But what if robots could step away from their limited range of tasks, and start to problem solve in complex operational situations, like spotting a malfunction on the assembly line or identifying a better compound for a part?

And how could robots enabled with “deep learning” – where algorithms learn from large amounts of data collected via experience – begin to share insights with other robots, to increase innovation in all kinds of settings, from factories to self-driving cars on the road to early cancer detection and drug discovery in hospitals?

These questions are the focus of Preferred Networks, a cutting-edge artificial intelligence company founded in 2014. The Tokyo-based firm, which is worth roughly $2 billion, according to CB Insights, is a symbol of Japan’s sweeping strategic innovation initiative, where AI and robotics are viewed as keys to both solving

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social issues and achieving new economic growth.

That solutions-based approach is crucial for Japanese companies in the highly competitive AI technology arena that is dominated by U.S.- and China-based companies that have attracted billions of dollars in funding, says Preferred Networks co-founder Okanohara Daisuke.

“Since our founding, we’ve said that our company would focus on addressing problems in the real world, not the virtual world,” he says. “That coherent policy and stance, as well as continuous achievements, are highly valued by our partners.”

Preferred Networks’ recently announced partnership with Toyota is an example of Japan’s focus on deployment of AI and deep learning to solve immediate challenges. The project is designed to develop service robots that can assist people in everyday life. This could fill a critical need in Japan, where an aging population and tight labor market makes it difficult to ensure there are enough services for the elderly at home, and in health care settings.

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The two companies will collaborate on research and development using Toyota’s Human Support Robot (HSR), a platform that allows robots to work beside people offering basic care and support assistance in nursing and long-term care applications.

Equipped with one arm, a display, cameras and a wheeled base, it can automatically collect and retrieve items, and provide remote control and communication capabilities.

In Japan – and elsewhere in the world – this is the kind of innovation that can help address many of the challenges the society faces, says Akaishi Koichi, Vice Minister, Innovation Policy, in the Japanese Cabinet Secretariat.

Akaishi describes Japan as rapidly moving towards “Society 5.0,” as the world adds an “ultra-smart” chapter to the earlier four stages of human development: hunter-gatherer, agrarian, industrial and information.

Akaishi said that in Society 5.0, where all things are connected and integrated through technology, Japan is focused on helping companies, including startups and “hidden gems” among small and medium-sized enterprises, to come up with brand new and innovative ideas, in order to provide the world with solutions.

As the third biggest economy globally, Japan was once a leader when it came to disruptive innovative technology: think pocket calculators, the Sony Walkman and LED lights. As Silicon Valley and Chinese developers began to explore IoT, big data and AI, Japan fell behind. Now with Japan facing so many challenges, Akaishi says the country is poised to embrace AI and leverage its solutions.

In order for more “hidden gems” companies like Preferred Networks to emerge, the Japanese government is supporting a wide range of reforms in areas that range from education to regulatory policy and finance, says Akaishi.

Among the initiatives: Educational reform is moving schools away from a culture of memorisation to learning focused on problem-solving.

Data literacy will be emphasised at primary and secondary schools, where the government has funded computers and technology implementation.

More certifications and grants from the government to Japanese universities offering AI education to ensure a growing pool of qualified developers and workers.

Promotion of Japan’s AI research initiatives, universities and networks to the global community in an effort to attract

overseas research projects to Japan.

Unification of data formats and standards in various industries will enhance the ability to deploy big data across companies and settings.

A new regulatory review process is making it easier for companies to launch experimentation and bring innovation to the marketplace.

Programs are creating new data privacy standards that could be internationalised.

New tools are helping startups find financing within and outside Japan.

Akaishi says that with these initiatives, Japan will become a country with widespread AI literacy. Rather than fear the implications of automation and robots, he says, Japan has set up a policy council to identify ethical and legal implications of AI and create new policies. But Akaishi believes the country will embrace AI as a new tool for creating the future. Japanese technology workers will not only find new opportunities at home, but will find more

Japan is rapidly moving towards “Society 5.0,” as the world adds an “ultra-smart” chapter to the earlier four stages of human development: huntergatherer, agrarian, industrial and information collaborative opportunities abroad.

“We are facing fundamental change in our work and our society and AI will make a tremendous impact,” Akaishi says. “We have the opportunity to make huge changes.”

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JBAS ACTIVITIES Last year started well for JBAS, with many ambitious plans, but 2020 was ultimately all about supporting our members and a society in crisis!

JBAS ASSEMBLY 2020

23rd January 2020 HIGH-TECH MEETING A high-tech meeting was held with Nenad Paunović from the Government of Serbia’s Office for Information Technology and eGovernment.

This meeting saw the Office for Information Technology and eGovernment of the Government of Serbia present its achievement and development plans, while member companies of the JBAS High-Tech Committee – Allied Telesis, Division Digital Solutions, Epson, eSmart Systems, Fujitsu, Hitachi, ICL Services, NES Communications, NTT Data, Typhoon HIL and SoftRoadsApps – presented the latest technologies coming from Japanese companies, a good amount of which are made in Serbia.

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24th January 2020 LECTURES ON JAPANESE CULTURE Thank to Japanese company SRA IT, JBAS members had an opportunity to regularly attend lectures on Japanese culture. The first lecture is currently available and takes us on a journey from ancient Japan and the middle ages, to the Edo and Meiji periods!

26th February 2020 AERO POLLUTION WEBINAR An aero pollution webinar, with the “Batut” Public Health Institute and JBAS member company EuroCons, presented facts about the basic human right to breathe, including very interesting information such as the fact that humans inhale 15kg of air daily.

30th January 2020 TAX NOVELTIES IN 2020 In cooperation between JBAS and the French-Serbian Chamber of Commerce, and with the support of TPA Serbia, a seminar on Tax novelties in 2020 was organised for members of these two business associations. Participants had an opportunity to learn more about the new introductions in the fields of VAT and tax amortization, and to receive more information about tax incentives for companies engaged in innovation from the aspect of corporate and personal income tax, as well as other tax incentives from the aspect of personal income tax.

20th February 2020 VI REGULAR JBAS GENERAL ASSEMBLY The session of the 6th regular JBAS General Assembly took place at the University of Belgrade Faculty of Philology. The JBAS members gathered on this occasion were greeted by Ljiljana Marković Ph.D., Dean of the Faculty of Philology.

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1st March 2020 BALKAN JAPAN BOWL 2020 JBAS supported the organisation of BALKAN JAPAN BOWL 2020, an original competition intended for students of the Japanese language and culture in the Balkan region. The final event of the competition was held at the University of Belgrade Faculty of Philology, while the honorary judges of the 2020 competition were H.E. Junichi Maruyama, Ambassador of Japan, and Naoki Tsukada, one of the founders of JBAS and a member of the JBAS Board of Directors representing the Mitsubishi Corporation. The contest was also supported by JBAS founding member JTI and JBAS member Go Sushi.

3rd March 2020 INTERNATIONAL COFFEE BREAK The International Coffee Break event, organised jointly by eleven bilateral business associations operating in Serbia, was held within the framework of the Kopaonik Business Forum.

Guest participants gathered with the goal of meeting each other and networking, while they also had an opportunity to meet representative of the business associations and learn more about their activities.

19th March 2020 LAW ON PUBLIC PROCUREMENT WEBINAR A webinar organised with the support of the Gecic Law firm enabled JBAS members to learn more about what the new Law on Public Procurement, as well as receiving information on the extent to which the public procurement mechanism is applicable due to the COVID-19 outbreak.

16th April 2020 ONLINE GATHERING REGARDING ECONOMIC MEASURES FOR COVID The implementation of the COVID-19 economic measures webinar, aimed at enabling discussion of the implementation of COVID-19 economic measures intended to mitigate the health crisis, saw specialists of the Crowe RS tax department provide their insight for JBAS members.

18th June 2020 DIALOGUE 4.0 WITH THE TAX ADMINISTRATION Representatives of four foreign business communities in Serbia – French, German, Italian and Japanese – discussed novelties in tax administration procedures with Mrs Nataša Mirković, Head 36

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of the Customs Procedures Department at the Serbian Tax Administration, with member companies submitting practical questions to her.

their latest insights and recommendations regarding digital communications for the post-COVID future, with the 59-minute webinar entitled ‘How to grow your digital presence’.

2nd July 2020 HOW TO GROW YOUR DIGITAL WEBINAR The digital marketing specialists and influencers of JBAS member company Olaf&McAteer took us on a digital journey and shared

7th July 2020 JBAS AUTOMOTIVE GROUP MEETING The meeting of the JBAS automotive group brought us some good news and put us in a positive mood for the period ahead. JBAS member companies are working on organising future events, opening new offices and showrooms and promoting new models, while some are even working on investment projects – all in all, great things to be welcomed!

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24th July 2020 JBAS BOARD OF DIRECTORS Sometimes a relaxed and pleasant chat to check up on how JBAS members are coping with the crisis and discuss measures to support them is more than a good reason to gather - JBAS Board of Directors.

11th July 2020 WEBINAR ON APPLICATION OF PREVENTATIVE MEASURES RULEBOOK In order to provide further support to JBAS members and keep them updated and ready for regulatory changes, a webinar on application of the Rulebook on preventative measures for a safe working environment and the prevention of infectious diseases was held, together with the team of JBAS member company Gecic Law.

30th July 2020 ONLINE HR MEET-UP In partnership with JBAS member company ManpowerGroup, an online HR meet-up was held. This event also marked the launch of activities within the newly established JBAS HR group. Participants had an opportunity to receive detailed information about labour market trends, challenges, the tendencies and specifics of different industries on the market, as well as different levels of position within the organisational structure, but they were also able to learn more about solutions and best market practices as a response to the current health and economic challenges.

20th August 2020 JBAS DONATIONS! Representatives of JBAS and the B92 Fund delivered 10 flow meters worth 320,000 dinars to the Zvezdara Clinical Hospital Centre. A previous donation – providing 10 flow meters each for the General Hospital in Ćuprija and the General Hospital in Šabac – was made with JBAS members Vossloh-Schwabe Serbia and Yazaki Srbija. Representa38

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tives of JBAS member companies also personally provided funds for the purchase of an additional five flow meters. These flow meters represent only part of a larger donation provided by the Japanese Business Alliance in Serbia since the beginning of the Coronavirus pandemic in cooperation with its members, equating to total donations exceeding a value of €137,000. JBAS member companies also donated medical equipment and protective supplies, hygiene packages, food and support related to receiving medical treatment and providing mobility. The donations provided haven’t come only in the form of money and goods, but have also included the direct engagement of companies’ employees. Beneficiaries have included the Serbian Ministry of Health, the National Health Insurance Fund, General Hospital Vršac, The Dr Dragiša Mišović Clinical-hospital Centre Dedinje, Senta Hospital and other hospitals, the Institute for Maternal and Child Health Protection in Belgrade, Patients organisations for IBD (Inflammatory Bowel Diseases) - UKUKS, NORBS (National Organisation for Rare Diseases in Serbia ), beneficiaries of the UNICEF support programme and members of the most vulnerable sections of the population that were additionally impacted by the COVID-19 crisis (homeless, over-65s, people with disabilities, children and low income families).

SERVICES WERE PROVIDED THROUGHOUT THE YEAR TO MEMBERS, IN COOPERATION WITH THE KAIZEN GROUP AND KAIZEN INSTITUTE In the spirit of the famous Japanese business philosophy of continuously improving working practises and personal efficiency, events, workshops, webinars and lectures were given all year long, with the participation of speakers such as Takeda’s Milena Argirović, JTI’s Goran Pekez, Toyota’s Robert Lukić and many others.

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JAPANESE EMPEROR NARUHITO

Symbol Of

NATIONAL UNITY Japan officially began a new era on 1st May 2019, when Crown Prince Naruhito ascended the Chrysanthemum Throne to become the new emperor. In his first speech as emperor, he said that he felt the solemn weight of his position, but vowed to be a symbol of unity for the nation.

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day prior, his father, Emperor Akihito, had become the first Japanese emperor in more than 200 years to abdicate, bringing to an end the Heisei imperial era. Naruhito, 61, differs from his more tradition-bound predecessors in many ways , and has consistently challenged expectations by prioritising his family and academic life.

After graduating with a degree in history from Tokyo’s prestigious Gakushuin University, he studied at Oxford University’s Merton College from 1983 to 1985.

His chosen area of study was the history of transport on the River

His Oxford years left a strong mark on the young Prince, who described the period as the happiest time of his life, when writing in his 1993 memoir “The Thames and I” Thames, highlighting an interest in waterways that continued with his doctoral research at Gakushuin. His Oxford years left a strong mark on the young Prince, who described the period as the happiest time of his life, when writing in his 1993 memoir “The Thames and I”.

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Emperor Naruhito and Empress Masako The Imperial Household Agency decided in November to cancel the imperial family’s annual New Year gathering, which saw 68,000 people visit the Imperial Palace in Tokyo last year, to prevent the spread of the virus.

At the event, which usually takes place on 2nd January, the emperor, empress and other members of the family greet the gathered well-wishers from a balcony.

In the message, the emperor also referred to the torrential rain in western Japan last July, expressing solidarity with those who lost family members and homes.

“We pray that this year will be as peaceful as possible for everyone,” the empress added.

A series of imperial succession rituals since Emperor Naruhito ascended to the throne were concluded last November, when Crown Prince Fumihito was formally declared first in line to the throne at the “Rikkoshi no rei” rite.

Since Emperor Naruhito’s enthronement, the imperial family is now only left with three heirs — the emperor’s younger brother, the crown prince, 55, his son, Prince Hisahito, 14, and Prince Hitachi, 85, the uncle of the emperor.

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Prince Naruhito lived with his family until the age of 30, representing a departure from imperial tradition that requires future emperors be raised by their subjects. The practise aimed to instil consideration for people in place of personal attachments, but family life was considered equally important by the time the crown prince was born.

Naming a new era in Japan 42

BEAUTIFUL HARMONY Midnight of 1st May 2019 marked both a change of emperor and the dawn of a new era in the imperial calendar. The name of the new imperial era, meaning “beautiful harmony”, was taken from Japan’s oldest poetry anthology, Manyoshu.

This is a new emperor for a new era, but how does a single word define Japan?

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Seimon Ishibashi bridge, which leads to the main gate of the Imperial Palace The name of the era represents a departure from the tradition of deriving imperial era names from Chinese classics, a practise that lasted more than 1,300 years. Public opinion polls suggest

The practise aimed to instil consideration for people in place of personal attachments, but family life was considered equally important by the time the crown prince was born that more than 70% of Japanese citizens approve of the name, while the reaction to the incoming emperor himself has been largely favourable. Despite public approval, questions remain about the role Emperor Naruhito will play in a changing Japan.

The emperor’s role is largely ceremonial, focusing on public engagements with citizens and meeting foreign dignitaries.

However, as the first emperor born after World War II, Naruhito may be expected to push for change.

“The world is changing and we are wondering how he will adjust his position and responsibilities to this new landscape,” wondered an editorial published in leading business daily Nikkei.

In his accession speech, Emperor Naruhito acknowledged the heavy burden that his father had carried in the role, insisting that he would “bear in mind the path trodden by past emperors”.

Speaking in the same speech, he said: “I sincerely hope for the happiness of the people and further progress of the country, and for world peace”.

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TOKYO 2021 OLYMPIC GAMES

The Games Will Go Ahead

"WITH OR WITHOUT COVID" Due to the COVID-19 outbreak, the Tokyo 2020 Olympic Games were postponed for the first time in the history of the Olympics. But Japanese Prime Minister Yoshihide Suga reports that his government has exerted all efforts and spent over $33 billion to ensure that the Games will open on 23rd July 2021. The Tokyo Olympic Games will go ahead this year “with or without Covid”, says the vice president of the International Olympic Committee.

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The National Stadium, Tokyo

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he Tokyo 2020 organisers have said in a statement that Prime Minister Yoshihide Suga expressed his determination to hold the Games, and that meetings were ongoing to ensure that they could go ahead while implementing thorough infection countermeasures and other precautions due to the pandemic.

“All our delivery partners, including the national government, theTokyo Metropolitan Government, the Tokyo 2020 Organising Committee, the IOC and the IPC, are fully focused on hosting the Games this summer,” the statement said. “We hope that daily life can return to normal as soon as possible, and we will continue to exert every effort to prepare for a safe and secure Games,” said Prime Minister Suga, continuing: “will be a symbol of humanity overcoming the novel coronavirus, and a chance to showcase to the world Japan’s reconstruction following the devastating (2011) earthquake and tsunami.”

Most of the Tokyo Summer Olympic events will be held in Tokyo itself. The venues are divided into two zones: Heritage Zone and Tokyo Bay Zone. Heritage Zone venues are in central Tokyo, within

Most of the events of the Tokyo Summer Olympics will be held in Tokyo itself, with venues divided into two zones: Heritage Zone and Tokyo Bay Zone the Yamanote Loop Line, while most Tokyo Bay Zone Venues are on Odaiba, an artificial island in Tokyo Bay. Outside of Tokyo, football matches will also be played in Saitama, Yokohama, Kashima, Rifu and Sapporo; baseball/softball will be played entirely in Yokohama and Fukushima; basketball in Saitama; golf in Kawagoe; and the athletics marathons and walking races will be held in Sapporo, in order to avoid high summer temperatures in the capital.

Elsewhere, Tsurigasaki Beach in the Chiba Prefecture will host surfing’s Olympic debut; sailing will be seen off the island of Enoshima to the south of Tokyo; track and mountain-bike cycling will be held in Izu City; while bicycle road races and individual time trials will be based around the Fuji International Speedway motor racing track.

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Surfing, skateboarding, sport climbing, karate and baseball were the five sports chosen from a short list of 26 to enter the Tokyo 2020 Olympic programme and thus join classic sports, such as athletics, fencing, cycling, gymnastics and swimming. In other words, 21 sports were left out and are dreaming of joining the next Olympic events. In addition to these five new sports, Tokyo 2021 will also have 15 new disciplines. The aim is to increase women’s participation and promote equality, including the 1500m women’s and 4x100m mixed event in swimming, a mixed team event in archery, the 4×400m mixed relay in athletics, 3×3 women’s and men’s basketball etc.

The organisers of the Tokyo Olympics have taken all measures to ensure athletes, judges, volunteers and spectators feel comfortable and safe in Japan. More than 11,000 athletes from around 200 countries are scheduled to take part in the Games, which are now due to begin in July 2021. However, measures in place that limit the time they can spend in the Olympic Village — a countermeasure to reduce the risk of 46

Surfing, skateboarding, sport climbing, karate and baseball were the five sports chosen from a short list of 26 to enter the Tokyo 2020 Olympic programme and thus join classic sports, such as athletics, fencing, cycling, gymnastics and swimming

Aquatics Centre - 15,000 seats

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The organisers of the Tokyo Olympics have taken all measures to ensure athletes, judges, volunteers and spectators feel comfortable and safe in Japan. More than 11,000 athletes from around 200 countries are scheduled to take part in the Games

Cardboard beds for Tokyo Athletes Village

Olympic village

COVID-19 infection — mean that they won’t all be able to attend the opening and closing ceremonies.

Fewer athletes than originally planned will attend the Games’ opening and closing ceremonies, while athletes also cannot check in at the Olympic Village — which can accommodate 18,000 people — more than five days before their event and must leave two days after finishing their competition.

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JAPANESE CRANES

SYMBOLS OF

GOOD FORTUNE

Graceful, long-legged cranes are said, according to myth, to live for a thousand years, which is why they are a magical sign of longevity in Japan. This elegant bird can be seen everywhere, from decorations on bridal kimonos and sake bottles to airline logos and, of course, in the form of the classic origami crane

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ranes, which belong to the Gruidae family, are the largest of all flying birds. And they’ve long symbolised good fortune, fidelity, grace, longevity and immortality.

Throughout history and in most cultures, mythological tales exist about cranes, which are depicted as majestic birds with charisma that are known for their spectacular courtship rituals. In Christian stories and art, cranes are considered vigilant, symbols of foresight and a natural enemy of the Devil.

In Hindu mythology, the crane represents the Goddess of deceit, while folklore tales abound about the saras bird (Indian crane) being the ultimate symbol of deception.

The crane has always been a strong symbol of success and good fortune in Japanese culture, and when folded in origami it is believed that your heart’s desire will come true. One young girl’s story provided new depth to this idea.

Her name was Sadako Sasaki. As an infant, she was exposed to radiation after the bombing of Hiroshima, which had developed into leukaemia by the time she was twelve years old.

With the goal of making 1,000 origami cranes, she began folding paper to form this majestic bird, in the hope that they would

The crane has always been a strong symbol of success and good fortune in Japanese culture, and when folded in origami it is believed that your heart’s desire will come true heal her. Her heart’s desire changed midway through, however, and her wish became to heal the world instead of herself. She continued folding the cranes for world peace and healing until

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she passed away. She was buried with a wreath of 1,000 paper cranes that her classmates helped her finish. She is forever memorialised at the Hiroshima Peace Park, where a statue of her stands always draped with 1,000 paper cranes to make sure her message of world peace will never be forgotten.

Classed as an endangered species, there only an estimated 2,750 cranes left in the wild, with around 100 of these calling Japan home.

The Japanese crane inhabits the eastern regions of the northern island of Hokkaido. Due to humans destroying large swathes of their natural habitat in wetland areas that these beautiful birds need for their breeding and living, low rainfall and new dam construction is also causing the wetlands to dry out.

Sadako Sasaki heart’s desire became to heal the world instead of herself. She continued folding the cranes for world peace and healing until she passed away These birds were thought to be on the brink of extinction until a small group of local farmers took it upon themselves to feed the birds regularly, in order to help them through the winter months when food is scarce. The farmers treated the birds as guests, seeing the birds’ visits to their farmlands as a great honour.

This has helped to bring them back from the brink, and these birds are now believed to be beginning to gain the upper hand yet again, with numbers starting to slowly stabilise and the help of local and worldwide organisations ensuring that this amazing bird will eventually be saved.

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