2013 SALARY SURVEY RESULTS
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INTERVIEW: HUGO SWIRE
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TARGET: ZERO KILLS
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February 2013 | 짜900
The Magazine of the British Chamber of Commerce in Japan
meet the new ambassador Job Brief: pursuing British interests in Japan PAGE 14
PLUS INDUSTRY & A-LIST: Real Estate & Relocation Book reviews | Media | Arts events | Community | Culture And much more
INVESTING IN TOKYO
P. 35
VOLUME 4, ISSUE 2
February 2013
44 SOCIAL Where Rocket Scientists Meet? What Tokyo’s Cambridge and Oxford Society is really like
26 14 ENVIRONMENT TARGET: Zero Kills Kent mum scours ocean to help stop bloody whale hunt
7 PUBLISHER Please Help Middle-aged Men in Lycra Simon Farrell
COVER STORY Meet the New Ambassador
24 VISITING JAPAN Hugo Swire
11 EXECUTIVE DIRECTOR BCCJ Organisational Plan 2013 Lori Henderson MBE
ENVIRONMENT 26 TARGET: Zero Kills Kent mum scours ocean to help stop bloody whale hunt 29 The Whale Truth Damning report denies Japan’s culture, science and nutrition claims
12 MEDIA What you missed in the Japanese press
32 BEER Tapping Changing Tastes
14 COVER STORY Meet the New Ambassador Job Brief: pursuing British interests in Japan
35 PROPERTY Investing in Tokyo Now is a good time to buy property here
8 MEDIA UK–Japan News
22 POLL Salary Survey Results Recruitment firms’ annual polls provide global review
32
INDUSTRY Real Estate & Relocation 36 A State of Flux 37 Watch This Space 38 A-LIST
BEER Tapping Changing Tastes
42 INTERVIEW Corporate Governance: The Western Way 44 SOCIAL Where Rocket Scientists Meet? What Tokyo’s Cambridge and Oxford Society is really like 46 ARTS EVENTS Solo exhibition by Haroon Mirza; William Hogarth Caricature Exhibition; Bo Ningen Line The Wall Japan Tour 2013; Ringo Starr Japan Tour; 1966 Quartet Beatles & Queen London Classics; The Mousetrap 48 COMMUNITY Embassy, BCCJ, CSR, film, photography and art 50 BOOK REVIEWS Made in Japan Shinto Shrines COVER PHOTO: TARO IREI
The British Chamber of Commerce in Japan
MOVE MANAGEMENT SPECIALISTS
BCCJ Mission To strengthen business ties between Britain and Japan, promote and support the business interests of all our Members, and actively encourage new business entrants into the Japanese market as well as Japanese investment into the UK. Leaders President: Nick Walters Individual Member Vice-president: Alison Jambert Eat Creative K.K. Executive Staff Executive Director: Lori Henderson MBE Operations Manager: Sanae Samata Executive Committee Russell M Anderson | Jaguar Land Rover Japan Ltd. Paul Atkinson | Individual Member Graham Davis | The Economist Group Ray Bremner OBE | Unilever Japan Hideya Komori | Individual Member Vishal Sinha | British Airways Richard Thornley CBE | Rolls-Royce Japan Co., Ltd James Weeks | Kreab Gavin Anderson K.K. James Dodds | KPMG Tax Corporation Philip T Gibb OBE | Magellan Financial Planning K.K. Reiko Sakimura | Clifford Chance Law Office Yayoi Sogo | Individual Member Ex Officio Sue Kinoshita British Embassy Tokyo Jeff Streeter British Council Japan BCCJ ACUMEN Editor in Chief Simon Farrell British Chamber of Commerce in Japan 12F Ark Mori Bldg. 1-12-32 Akasaka, Minato-ku, Tokyo 107-6012 Tel: (03) 4360-8361 Fax: (03) 4360-8454 info@bccjapan.com www.bccjapan.com
Asian Tigers Mobility Email: sales@asiantigers-japan.com Customer Hotline: +81 (0)3 6402 2371 www.asiantigers-japan.com
BCCJ ACUMEN is the magazine of the British Chamber of Commerce in Japan
CONTRIBUTORS
President Robert Heldt robert@custom-media.com Art Director Cliff Cardona Assistant Art Director Paul Leonard Assistant Editor Megan Waters Client Services Manager Sam Bird samuel@custom-media.com Senior Account Executive Leon van Houwelingen leon@custom-media.com Account Executives Mareike Dornhege mareike@custom-media.com Kieran Quigley kieran@custom-media.com
Ian de Stains OBE is a former BBC producer and presenter who has been based in Japan since 1976, when he was seconded to NHK. From 1987 to 2011, he was BCCJ executive director. Aside from writing, Ian now focuses on consulting and coaching and is a Fellow of the Chartered Institute of Arbitrators and convenor of its Japan chapter. dest@attglobal.net
Lori Henderson MBE has been BCCJ executive director since February 2011.
JEREMY SUTTON-HIBBERT
Publisher Simon Farrell simon@custom-media.com
Tim Hitchens was appointed British ambassador to Japan in December 2012 and has previously been posted to Pakistan, Afghanistan and France. Tim served as assistant private secretary to the queen for four years and has been Foreign & Commonwealth Office director for Africa for the past three years.
Julian Ryall is Japan correspondent for The Daily Telegraph.
JEREMY SUTTON-HIBBERT
www.bccjacumen.com Produced by Custom Media K.K.
Mark Schreiber is an author and translator who has been based in Tokyo since 1966. He was employed as a media analyst in market research before turning to freelance writing.
Justin McCurry is Japan correspondent for The Guardian and The Observer.
Hiroyuki Isobe is president of Japan Valuers Co., Ltd. and has been in the real estate market in Tokyo as a valuer for more than 30 years. He is a Fellow of the Royal Institution of Chartered Surveyors and a member of the Counselors of Real Estate in the US.
Aki Nitta is general manager of Unigroup Worldwide UTS.
Taro Irei is a Tokyo-based photographer who shoots both stills and films in the studio or on location. His professional assignments span editorial, fashion, food and sport, as well as corporate and social events.
Megan Waters is assistant editor at Custom Media K.K.
Media Co-ordinator Yoko Yanagimoto Host and Producer–BIJ.tv Mike DeJong To advertise or order BCCJ ACUMEN: inquiries@custom-media.com Tel: (03) 6804-5267 Fax: (03) 6804-5268 Custom Media Publishers of BCCJ ACUMEN for the British Chamber of Commerce in Japan. Specialists in bilingual brand strategy/visual communications, corporate bespoke solutions. Producers of BIJ TV (businessinjapan.tv), the bilingual online video channel featuring successful business people in Japan. Akasaka Palace Bldg. 1F 1-4-21 Moto-Akasaka, Minato-ku, Tokyo 107-0051 www.custom-media.com Warning/Disclaimer Custom Media and the BCCJ will not accept liability for any damages caused by the contents of BCCJ ACUMEN, including, but not limited to, any omissions, errors, facts or false statements. Opinions or advice expressed in BCCJ ACUMEN are not necessarily those of the BCCJ or Custom Media. © 2013 Custom Media K.K.
FEBRUARY 2013 | BCCJ ACUMEN | 5
PUBLISHER
Please Help Middle-aged Men in Lycra
I
used to presume that Brits at Lunch was just a boozy excuse to shorten Fridays, attended by nostalgic expats getting misty eyed over their green and pleasant land, accompanied by chicken tikka masala and spotted dick with lashings of custard. Sorry, I was wrong. Next month, BCCJ ACUMEN will feature the remarkable tale of 10 MAMIL (middleaged men in lycra) from this group, who are currently training to pedal about 300km between Tokyo and Fukushima Prefecture over three days in April, to raise funds for the quake-hit residents of Minamisoma. Thanks to this monthly noon gathering—in pubs and restaurants around Tokyo, and often featured in our Community pages—the idea came from idle chat about how to help survivors still affected by the worst natural disaster to strike Japan in living memory. For safety and logistical reasons, no more cyclists can join the group. However, a warm welcome is waiting
for sponsors to join them in spirit, if not body, and help raise the ¥1mn-plus they are targeting. More details: www.tokyobrits.com
Bible for Boardrooms I have almost finished reading Michael Woodford’s book, Exposure, a sensational personal memoir of events surrounding this selfless Liverpudlian, who spilled the beans at the subsequently disgraced Olympus Corporation. As the first (and maybe last) Westerner to ascend the hierarchy of a top Japanese firm and the first chief executive of a multinational to blow the whistle on his own board, Woodford reveals the intrigue, ethics, backstabbing, sacrifice and courage central to the scandal. The book’s sleazy plot exposes the dark underbelly of big business. We will soon review and give away a copy or two of this inspirational book that ought to be the bible for all business leaders. Should you be interested, please
keep an eye on our regular books column (page 50), by Ian de Stains OBE.
Books for Smiles: A Challenge Last month Custom Media, publishers of ACUMEN, amassed 54 titles for the BCCJ Social Responsibility Taskforce’s Books for Smiles project in a weeklong, in-house drive to raise funds for those leaving care to enter vocational schools. Helped by Bridge for Smile and Value Books, our staff and library donated novels, biographies and titles on business, finance, law, marketing, IT, art and design to be sold on Amazon.com. We’ll let you know how much cash our effort raised. Think your firm can beat us? Contact Yayoi Sogo: info@bccjapan.com
Simon Farrell Custom Media simon@custom-media.com
LATEST UK–JAPAN REPORTS
Educational Talks Aim to Strengthen Links The University of Bristol welcomed 90 academics from a Japanese university in the biggest international symposium of its kind held in the UK to date, the Times Higher Education reported on 8 January. During the two-day event—sponsored by the Engineering and Physical Sciences
UK Leads in Benefits Poll The UK spends six times more on disability benefits than does Japan, according to an Organisation for Economic Cooperation and Development (OECD) survey issued on 27 December. The UK spends 2.4% of its gross domestic product (GDP) on disability benefits, compared with Japan’s 0.4%. The average amount spent by each of the 34 member states of the OECD is 1.3% of GDP, with only Norway and Iceland spending more: 2.8% of GDP. Some 3.2mn people in the UK claim Disability Living Allowance, which helps them pay any extra outlays associated with their respective conditions. The allowance provides recipients with up to £120 a week, and costs taxpayers more than £13bn per year.
Research Council’s Building Global Engagements in Research programme— delegates from Kyoto University discussed how both institutions might share knowledge, resources and links with industry. Attended by Keiichi Hayashi, the Japanese ambassador to the UK, and the mayor of
Belfast Ties Boost A group of Japanese business delegates have visited Northern Ireland to strengthen bilateral trade, inward investment and tourism between the two countries, the Belfast Telegraph reported on 21 January. On the two-day trip, the delegation— which included Keiichi Hayashi, the Japanese ambassador to the UK—held meetings with firms, stakeholders, representatives from universities and colleges, as well as members of five Japanese-owned firms. According to a survey by the Department of Enterprise, Trade and Investment Export, over the past two years Northern Ireland has exported about £32mn worth of goods and services to Japan. Manufacturing businesses, meanwhile, reported that sales in Asia had totalled £416mn for the 2011–2012 period.
Car Facility Wins Special Award
McLaren’s new manufacturing plant can hold three jumbo jets or 2,569 Formula 1 cars.
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McLaren Automotive’s new £800mn McLaren Production Centre received a special prize at the British Construction Industry Awards, the London Press Service reported on 16 January. McLaren, which has expanded its retail network to 22 countries around the world, recently opened a showroom in Tokyo. About 4,000 sports cars will be built annually at the facility, which was designed by architects Foster + Partners and opened by the prime minister, David Cameron, last November.
Bristol, George Ferguson, the symposium was driven by many goals. These included building on the achievements of existing projects, developing new relationships, sharing practices to support innovation, providing opportunities to attract outbound investment, and setting up staff and student exchanges.
User-friendly Phone to Be Launched
Fujitsu Limited is planning a UK release of an android phone for older users, the Asahi Shimbun reported The Raku-Raku on 28 December. smartphone is designed for easy At present, the Rakuoperation. Raku (easy-to-use) smartphone is only available in Japan. Designed for easy operation, the handset’s display has larger fonts; a simplified interface; an ambient noise cancellation function to improve voice communication clarity; and a voice-slowing application to better understand callers who speak too fast.
Survey Reveals Wealth Helps
Japan was in 25th position, while the UK took the 27th spot in the Economist Intelligence Unit’s quality-of-life index, The Daily Mail reported on 2 January. The index shows which country can be expected to provide the best opportunities for a healthy, safe and prosperous life for babies born in 2013. Compiled based on calculations conducted by the sister firm of The Economist, it links the results of subjective life-satisfaction surveys to objective determinants of the quality of life across countries. The index took 11 statistically significant indicators into account, including geography, demography, social and cultural characteristics, public policy, the state of the world economy and anticipated per capita income. The findings show that being rich helps the most.
Honda to Cut Jobs
Paint Firm Sign Red Devils Manchester United has signed a three-year sponsorship agreement with a Japanese paint manufacturer, The Guardian reported on 18 January. The deal with Kansai Paint Co., Ltd. has shown how top European football clubs can use their international fan base to secure partnerships with a broad range of firms—giving them an appeal that extends beyond consumer brands.
Honda Motor Co., Ltd. plans to cut about 800 jobs at its South Marston plant, Japan Today reported on 12 January. The cuts will take place by the second quarter of 2013 and are due to a Europe-wide fall in demand for the maker’s vehicles. The Japanese firm, which employs a staff of about 3,500 at its southwest England works, will continue to make cars and engines in the UK. Sir Bobby Charlton CBE, ambassador of Manchester United, and Yuzo Kawamori, president and representative director of Kansai Paint Co., Ltd., have signed a three-year deal.
Poll Outlines Gender Salary Divide Japan has the biggest pay gap between men and women, while in the UK the divide is higher than average, according to a study issued on 7 January. Academics from Warwick Business School, the University of Cambridge and Canada’s Lakehead University studied 20 industrialised nations, comparing the
wages of men and women who work in different occupations. Researchers found that there was not much income inequality between men and women from different occupations, and that the biggest pay gaps are found in countries where men and women do the same work.
Report on M&A Rankings
Wine Group Search for Brand Envoy
Japan is the world’s second most acquisitive nation, while the UK is in fourth place, according to a report issued on 9 January by DC Advisory. The leading, pan-European, corporate finance adviser’s annual merger and acquisition (M&A) rankings found that, in 2012, UK businesses and private equity firms completed acquisitions worth $76bn (£48.2bn), while the overseas acquisitions of Japanese corporations and private equity firms totalled 566 instances worth some $105bn (£66.6bn). The US remained the top player in global acquisitions, in 2012 having completed overseas M&A investments worth $307bn (£194.8bn).
Koshu of Japan (KOJ), an organisation that promotes white wine made in Yamanashi Prefecture, has launched a campaign to find a UK brand ambassador, according to a press release issued on 15 January. The winner will be awarded a trip to Japan, including visits to leading wineries in the prefecture and an overnight stay in Tokyo. KOJ is involved in the overseas promotion of the wine which is produced only in Japan from grapes indigenous to the country. Prospective candidates are asked to submit evidence of their knowledge and appreciation of the wine as well as of the Japanese region where the grapes are cultivated. Applicants should also explain how they would promote the wine in the UK market.
UK Top, Japan Fifth in Mobile Ad Spending In 2012, mobile advertisers in the UK spent more than their counterparts anywhere else in the world per mobile internet user, according to a 7 January report by market research firm eMarketer. The same report places Japan in fifth position. Although in absolute dollar terms, Japan is the world’s second-largest mobile advertising market, advertisers spent the equivalent of £16.70 per user, compared with the UK’s £23.15. Norway was in second place, with £22.74 spent per user.
Festival Marks 400 Years of Links with Japan A year-long series of cultural events has been launched in the UK to celebrate the 400th anniversary of relations with Japan, The Japan Times reported on 18 January. The Japan400 festival will hold some 100 events, in which the first exchanges between the two countries will be explored. It will also look at developments in the areas of art, science, trade, enterprise, technology and lifestyle.
Historic Art Displayed Miniature Japanese sculptures have been displayed at a Bolton Museum, This is Lancashire reported on 23 January. The selection of Japanese art includes netsuke—small sculptures made of wood or ivory that were used to secure pouches to kimonos in 17th century Japan. The sculptures depict numerous objects, including animals, people and mythical creatures.
Rare Artwork Found A rare Japanese painting showing early 18th-century street life has been discovered in the Edinburgh Central Library’s special collections, the Belfast Telegraph reported on 4 January. The 13.4m scroll was donated to the library in the 1940s, but its significance was only recently realised by experts in Edinburgh. Painted by Furuyama Moromasa (1712–1772), the scroll could be the largest among his extant works. It depicts a street scene in Edo (as Tokyo was formerly known), showing shops, theatres and domestic life.
FEBRUARY 2013 | BCCJ ACUMEN | 9
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EXECUTIVE DIRECTOR
BCCJ Organisational Plan for 2013
I
n addition to our monthly executive committee meeting in January, members of the executive committee were invited to the British Embassy Tokyo to participate in the BCCJ Away Day—a forum for exchanging ideas on this year’s organisational strategy. Led by BCCJ Vice-president Alison Jambert and facilitated by Jon Sparks, Pathways K.K. chief executive officer, the session focused on one question: do we, as an organisation, seek to live sustainably and solidly over the coming year, or do we seek growth? Through a combination of lively group discussions and break out sessions, the team agreed that growth for growth’s sake should always come second, following our commitment to members, as we work to bolster the relevance of the BCCJ to the greater UK–Japan relationship for the benefit of all. According to the European Business Council 2013 Stakeholder Fees, the BCCJ is one of only six European chamber of commerce memberships to have grown during 2012. Over the past two years, the BCCJ has set a clear, effective framework in two key areas: membership and events. This has been bolstered by a sound and genuine social responsibility proposition, which has allowed us to develop wide and deep links with the Japanese private, public and civil sectors. At the Away Day, the executive committee was asked to consider what the
BCCJ would need in order to maintain and build on our qualitative success, and how this might work in practise. Suggestions will be put forward at the committee’s February meeting, and shared with the membership in due course. I’m often asked about the role of the executive committee, so below is a guide in a nutshell.
Key responsibilities • Set organisational aims and objectives • Agree to policies, targets and priorities • Set a budget that allows the BCCJ to fulfil its objectives • Appoint the president and vicepresident • Monitor and review the overall performance of the BCCJ
Composition The executive committee comprises a minimum of 12, and a maximum of 15, members. In addition to the BCCJ executive director, there are two exofficio members who represent the British Embassy Tokyo and the British Council. The committee seeks an appropriate balance of members from the UK–Japan business community, with specific skills and experiences that will benefit the BCCJ and the membership at large. Members pledge to serve for a one-year term (April–March), and membership is reviewed annually (during February and March).
All strategic decisions are made by a majority vote of the committee members, with the president having a casting vote in the event of a tie. No individual member has a right of veto and most decisions are reached by consensus and are unanimous.
Meetings Including the annual general meeting in April, the committee meets 11 times during the year (no meeting is held in August). In addition, the members are expected to attend as many BCCJ events as possible throughout the year (we expect to host 32 events this year), help maintain and increase chamber membership, and liaise between the membership and the committee. The committee, together with the executive director and secretariat, are wholeheartedly committed to open communication with the BCCJ membership and the wider domestic and international business community in Japan. If you are interested in learning more about becoming a member of the executive committee, please email: info@bccjapan.com
Lori Henderson MBE BCCJ Executive Director
MEDIA
WHAT YOU MISSED IN THE JAPANESE PRESS
BY MARK SCHREIBER
Recession Bites into Lunch, Drink Budgets According to a survey conducted earlier this year by Shinsei Bank, Limited, businessmen pay, on average, ¥510 for lunch. This is down sharply from the 1992 peak of ¥746 and closer to the 1982 pre-bubble level. In addition, the average outlay for a nomidai (social drinking) session (¥2,860) is less than half the 2001 figure (¥6,160). The main reason for this is the ongoing decline in the monthly kozukai (pocket money) which, last year, managed to post
a gain of ¥3,100, for an average total of ¥39,600 per month. The Sankei Shimbun (27 January) reports that the bank also tracked the methods salaried workers have adopted to reduce out-of-pocket expenditure. Although in previous years, the first to be slashed had been drinking budgets, last year the cuts came at lunchtime. The items that followed were: outlays for drinking (presumably after work); spur-of-the-moment purchases; using shopping comparisons and other internet advisory pages to seek out the lowest prices; and bringing to work one’s own bottle of water. “The difference between 30 years ago and now is that the hope for ‘a tomorrow that will be better’ has been replaced by ‘the bitter saga of the Heisei-era wage earner’”, according to marketing consultant Ryuuji Ishikawa. “I believe that [wage earners], by exchanging information among themselves on how to save by using the internet, get a perverse sense of pleasure from displaying their resolve, while at the same time commiserating”.
Businessmen pay, on average, ¥510 for lunch.
Edgy Kanto Consumers Shun Shopping A survey in the Nikkei Marketing Journal (16 January), of 20,000 Kanto-region residents aged between 20 and 60, shows that a significant number of consumers sometimes refrain from purchasing items they desire, due to either fear of failure, or regretting a purchase later. By combining the respondents who agreed, or partly agreed, with the statement, the overall percentage for all age groups reached 40.8%. The amount exceeded 54.0% for subjects in their twenties and 47.3% for those in their thirties—indicating a surprising reluctance to purchase certain goods on the part of younger consumers. As a result, a growing percentage of consumers are likely to mull over purchases
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beforehand, either searching for others’ opinions via a social media site or other internet resource, or by polling friends and acquaintances. The search for product information tends to vary by sector. When considering travel, data devices, cosmetics and apparel, consumers tend to use the internet and personal acquaintances almost equally. However, for home appliances—in particular home entertainment products— the internet is a more likely source of information. For sundry goods, wine, other alcoholic beverages and food products in general, friends and acquaintances are more likely to be trusted.
Whether a success or failure, more than half the respondents said they were far more likely to convey their purchase experiences to friends or acquaintances than post them on the internet. A particularly high percentage of subjects in their thirties said they were likely to express satisfaction over a purchase to a friend or acquaintance. The article also notes that appliance retailer Yodobashi Camera Co., Ltd. and drugstore chain Sumisho Drugstores Inc. (Tomods) are among the retailers trying to introduce facts on their websites that will enable consumers to obtain correct information about products, and help dispel anxiety over purchases.
MEDIA
Net Poll Reveals Buyer Trends According to a nationwide survey of 10,420 respondents aged between 16 and 80, and conducted by Nikkei Research last October, about 20% of consumer outlays were related to internet use, the Nikkei Marketing Journal (21 November) reports. Respondents’ ownership of personal computers, smartphones, tablet computers and TV sets were 97.8%, 28.8%, 9.2% and 80.9%, respectively. The average monthly outlay—excluding that for rent, utilities and other fixed expenditures—was ¥132,800. Of this, internet-related consumption was, on average, ¥25,900 (nearly 20%). The average amount of time spent loggedon each day was 162 minutes on weekdays, and 191 minutes on weekends and holidays. This represents 49% of all leisure time
activity on weekdays, and 40% on weekends and holidays. According to 80% of the respondents, the items most purchased relating to travel were airline tickets and pre-arranged package tours. While some 26% said that their internet-related outlays had increased over the previous year, 11% said such outlays had declined. For example, 26% of those with increased internet consumption also said their visits to retail stores had increased, as opposed to 23% who said such visits had declined. The greatest use of the internet was emailrelated, according to 95% of respondents, followed by obtaining, or searching for, information (90%); purchases of products or services (76%); and “just whiling away the time” (54%). In addition, the survey found
that one in three internet users use Facebook, Twitter, Mixi and/or other social media sites. A survey conducted last year by Tokyobased AUN Consulting, Inc. found that, in terms of internet penetration in each of the world’s 40 largest economies, Japan ranked 12th. Norway, the Netherlands and Sweden ranked highest with 92.1%, 90.3% and 89.3%, respectively, while the UK came in 9th (80.5%) and the US in 13th place (78.7%).
One in three internet users use social media sites, such as Mixi.
Remote Rules Eased for Domestic Devices The Ministry of Economy, Trade and Industry announced guidelines for more relaxed standards by which smartphones could be used to remotely operate home appliances, the Sankei Shimbun (27 January) reports. The main concerns about the safety of such devices will be addressed, and proposals for revisions to the statute on appliance safety (enacted in 1962) are to be completed by the middle of the year.
The move is expected to spur further development of home appliances that, in turn, will boost manufacturing by encouraging market growth. Although smartphones have demonstrated that they are able to remotely operate appliances, the law as it currently stands has barred progress in this direction. In October last year, Panasonic Corporation was obliged to disengage
a function in its new air conditioner models. The firm had devised a system that would have made possible the remote operation of its on and off controls. In anticipation of the changes, NTT DoCoMo, Inc is said to be developing remote operating systems that will be offered to homebuilders and condominium developers.
New-car Buyers Shift to Smaller Models
Some 211,156 units of Honda’s N BOX were sold in Japan in 2012.
The Tokyo Auto Salon exhibition of custom cars, held in January at Chiba’s Makuhari Messe, attracted a record 282,659 visitors. In the meantime, Nikkei Business (21 January) has noted a pronounced shift among new-car buyers: seven out of Japan’s 10 best-selling domestic models are keijidousha—small cars with a maximum engine displacement of 660cm3.
The Toyota Prius and Aqua models took the top two spots, while third and fourth place went to the Daihatsu Mira (266,567 units sold) and the Honda N BOX (211,156 units). In positions six to nine were the Suzuki Wagon R, two models from Daihatsu Motor Co., Ltd., and one from Suzuki Motor Corporation. The increased demand for economy models reflects, among other things, the fact that the government subsidy for purchases of eco-cars has ended. Online newspaper J-cast News (5 January) reports that, beginning at the end of January, the Ministry of Land, Infrastructure Transport and Tourism will begin monitoring tests of a new class of ultra-mini vehicle, referred to as Chou-kogata Mobility. Safety standards and other parameters will be monitored for two years, and the ministry is expected to permit the sale of such vehicles any time from 2015. The cars will be limited to under 8kW (electric vehicles) and 125cc (internal combustion engines), with a maximum speed of 60kph and a maximum driving distance of 100km for electric vehicles. Compared with the starting price of ¥800,000 for lightweight class models, many in the industry expect micro-mini vehicles to sell for under ¥500,000. The article reports that sales tax, insurance and safety inspection requirements remain to be ironed out.
FEBRUARY 2013 | BCCJ ACUMEN | 13
COVER STORY
Tim served as assistant private secretary to the queen.
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COVER STORY
MEET THE NEW AMBASSADOR Job Brief: pursuing British interests in Japan
Interview with Tim Hitchens The UK and Japan share a curiosity and appetite for each other’s products, services and culture, says London’s recently appointed chief diplomat to its “closest partner in Asia”. He is busy promoting modern Britain’s creativity, diversity and ability to deliver. By Simon Farrell Photos: Taro Irei
Please briefly tell us about your career and personal life. I’ve been something of a jack-of-alltrades. I took up my appointment as British ambassador to Japan in December last year. I joined the Foreign & Commonwealth Office (FCO) straight from university in 1983, and my first posting was to Japan, during the boom years. Since then I have worked on Asian, European and African issues, and have been posted to Pakistan, Afghanistan and France. I spent four fascinating years seconded to Buckingham Palace as assistant private secretary to the queen. For the past three years I have been FCO director for Africa, looking after countries as diverse as South Africa, Mali and Somalia. My wife, Sara, and I have one daughter and one son—both now studying at university.
You were based in Japan before. How was it? I’ve lived in Japan three times before. First, as a high school student in the late ’70s (my father was the naval attaché here, selling Rolls-Royce engines to the Japan Maritime Self-Defense Force). Second, in 1980 I took a gap year and lived with a Japanese family
in Tokyo for six months. And finally, my first posting to Japan (1985–1989). How was it? Life changing. I don’t think, without that early contact, I would have joined the Foreign Office or be doing what I am today.
What are the main challenges you expect to face in Japan? There are three key tasks, following on from Prime Minister David Cameron’s visit last year: sustaining the rhythm of Japanese investment in the UK, so crucial for British jobs; working on the range of nuclear and energy issues, be it providing commercial support or institutional advice; and building up security and defence co-operation, with an eye both to commercial opportunities and a bigger UK presence in Asia. These are three areas that Minister of State for the Foreign & Commonwealth Office Hugo Swire discussed during his visit to Japan in January (see page 24), when he opened talks with the new Japanese government’s Ministry of Foreign Affairs. I want to further these discussions; the UK has a key role to play with Japan. But there are plenty of other tasks, too. It’s critical we support UK businesses of all kinds in Japan, large or small. There are new opportunities arising every day; for example, in offering Japanese
companies security advice when they operate in difficult environments such as North Africa. So it’s getting the balance between established relationships and shifting sands. It is interesting to return to a Japan during a period of immense change and development in the Asia–Pacific region. In less than a decade, we have moved from a G8 to a G20 world, in which economic and security power relationships shift quickly. What opportunities and threats might China offer? Indonesia is a rapidly developing democratic nation. Burma is taking important but tentative steps that Japan and the UK both want to support. Within this context, the UK and Japan’s long history as key partners is of renewed importance. Prime Minister Shinzo Abe— who has spoken to David Cameron at least three times in the last six weeks—always stresses shared values. This provides the opportunity to work together on shared challenges.
How can UK–Japan business and cultural ties be strengthened? The UK and Japan share a curiosity and appetite for each other’s products, services and culture—something we are striving to strengthen, after 2012 showcased modern Britain’s creativity, diversity and ability to deliver.
FEBRUARY 2013 | BCCJ ACUMEN | 15
COVER STORY
Photographs were taken at the British Embassy Tokyo.
With eyes now on the selection for the 2020 Summer Olympic Games, the UK stands ready to offer its experience and expertise should Tokyo be selected over Madrid and Istanbul later this year. I’m in close contact with Tokyo Governor Naoki Inose—we even follow each other’s Twitter feeds (Follow Tim @UKAmbTim)! Many Japanese people travelled to the UK for the London 2012 Olympic and Paralympic Games, and I want more to visit the UK to experience the dynamism in all aspects of British life—be it the diversity and quality of modern British food, or the best of Britain’s creative industries. I want more Japanese students to study at our world-class educational establishments, to learn the skills
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necessary to achieve in this globalised world. I want more Japanese businesses to set up in the UK and to benefit from our multicultural, multilingual modern workforce. One great example: I’m delighted that Zaha Hadid, the Iraqi-born British architect and designer of the London Aquatics Centre, has won the competition to design Japan’s new national stadium in Tokyo. It will be a superb testament to our co-operation.
Will you be asking the Japanese government to make it easier for British firms to trade here? Japanese companies recognise the UK as a great place to invest, and we are supporting Japan’s efforts to do
the same. This will be on the agenda when the UK hosts the 2013 G8 Summit, which will focus on key themes of trade, transparency and tax. Working with our counterparts in the Japanese government, we want to see the development of open economies, open governments and open societies that can unleash the power of the private sector. I make these points in all my opening calls on cabinet ministers. Negotiations towards an EU–Japan Economic Partnership Agreement, starting here in March, will be very important. The UK has been a great advocate of this agreement. The removal of tariff and non-tariff barriers could deliver over €40bn of additional European exports to Japan and
COVER STORY
more than €50bn of additional exports from Japan to the European Union. We’re making free trade agreements a centrepiece of the UK G8 summit—which Prime Minister Shinzo Abe will attend—in County Fermanagh in June.
Which industries in the UK have the most potential for increasing their business with Japan? Japan is now looking at renewable energy as a serious provider, following the 2011 Tohoku earthquake and tsunami almost two years ago, with a nominal target of 30% renewable energy. This shift in Japan’s energy-mix is opening up fresh opportunities for UK and international companies, particularly in low carbon energy generation using, for example, offshore wind, solar PV and biomass. UK strengths in renewable technologies and low carbon power generation are well understood in Japan, and we are rightly seen as a world leader. The safe and secure delivery of the 2012 London Olympic and Paralympic Games was a showcase in Japan for the UK security industry. With Japan hosting the 2019 Rugby World Cup and in the running for the 2020 Summer Olympic Games, there are real opportunities for UK security services, products and solutions. Japan remains one of the largest financial-services markets in the world, and has the largest accumulation of personal wealth in the world, amounting to £11.5trn. The top 50 institutional investors have over $12trn worth of assets by themselves. UK–Japan asset management seminars are held at the British Embassy Tokyo to help assist UK companies wishing to access these funds managed in Japan. In addition, Japan is Asia’s leading pharmaceutical market and the world’s second-largest market. Changes in the market environment, together with an ageing population, are resulting in rising drug demand, especially in the generic and biotechnology sectors. There are some 450 UK companies with operations in Japan and we are still seeing an enormous amount of British business interest in the Japanese market. We would like to see this increase. The UK Trade & Investment team at the British Embassy Tokyo and Consulate-
“Working with our counterparts in the Japanese government, we want to see the development of open economies, open governments and open societies that can unleash the power of the private sector”.
General in Osaka are always ready to offer assistance to UK companies.
Are there any non-business-related advocacy issues you would like to take up with Tokyo? One of our jobs in the embassy is to support British nationals in difficulty. Disputed child custody cases are among the most distressing that we deal with. I’m very keen for the Japanese government to ratify the Convention on the Civil Aspects of International Child Abduction as soon as possible, to provide a framework for those custody issues to be resolved. After previous legislation fell away, we lobbied the new government early in January to ratify the convention. So I was pleased to learn that a bill to this effect is being submitted to the Diet. We remain committed to working with Japan on finding ways to resolve existing cases.
Which well-known people do you most admire? I tend to admire people who are very different to me: those who operate alone, act against the odds, or challenge authority. For example, the early British campaigners against the slave trade in Africa. Or entrepreneurs—like Hiroshi Mikitani, whom I met in January; I could never do what they do.
What are your personal weaknesses, strengths, likes and dislikes? I have a weakness for chocolate. I am strongly attached to my home county, Devon. I like throwing myself into different and difficult environments. Dislikes? I don’t really like cynicism; I’m much more of a can-do person.
How would you explain your job and official duties?
Tim tweets “Twaiku” (Twitter poetry) in English and Japanese.
My job is to pursue the British interest in Japan, wherever that may be. Some of that is through specific lobbying or negotiation: creating a context for more defence sales; clinching an investment in the UK; identifying a new market opportunity. Some of that is softer: building relationships with the major decision-makers in Japan, to use when occasions arise; introducing the best of British culture to Japan, be it [British Romantic landscape
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COVER STORY
Photographed with his wife Sara in September 1989, during Tim’s first posting to Japan.
Knowing the daily news in Japan is a key part of the British ambassador’s job.
painter, water-colourist and printmaker JMW] Turner from Tate Britain, or young British talent (I’m not sure if the recent One Direction visit counts). It’s also important to offer British ministers a fair and judicious view of what is happening here, particularly when media reporting becomes shrill. Last but not least, I need to ensure that the network in Tokyo and Osaka is motivated and high performing in order to be the best diplomatic mission in the world.
Which UK dignitaries can we expect to visit Japan this year? David Cameron and William Hague recently, and deliberately, described Japan as “the UK’s closest partner in Asia”. So it was fitting that 2012 saw a large increase in the number of high level visits to Japan by the UK coalition government, including those by David Cameron, George Osborne, Jeremy Hunt and Lord Green.
This trend is already continuing in 2013, with the January visit by Foreign Office Minister Hugo Swire—the first European minister to meet the new government—to open bilateral talks with Japan on defence and security co-operation, and to meet with British business leaders. A number of further visits are planned for the coming months, which we’ll announce in due course. While each senior figure brings with them a particular area of expertise, maximising opportunities for British business in Japan is always at the forefront of their minds.
Any special message to the British community in Japan? It’s an honour and a pleasure to return to Japan, with which I have a strong personal connection. One of my very first meetings was with the British Chamber of Commerce in Japan, and I am trying to call on the top British firms here in my first two months.
It was fortuitous but wonderful that, among my first jobs, was letting BCCJ President Emeritus Philip Gibb and Executive Director Lori Henderson know that they were being honoured in the 2013 New Year Honours list. I know my trade and investment teams at the British Embassy Tokyo and Consulate-General in Osaka are helping British companies win business, while my consular team is dedicated to maintaining a high standard of services to the public. I’m very much looking forward to meeting as many of the British community in Japan, in Tokyo and beyond. I also want to pay tribute to my predecessor, Sir David Warren KCMG, who was tireless in his support for British business and our relationship with Japan. As many of you know, he is now running The Japan Society in London, so he will never be far from our email inboxes.
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FEBRUARY 2013 | BCCJ ACUMEN | 21
POLL
Salary Survey Results Recruitment firms’ annual polls provide global review By Megan Waters
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eading specialist recruiting firms annually compile salary surveys to provide those in the industry, their clients and potential clients, a comprehensive review of global conditions and salary levels in the recruitment market. The overview and insight into future trends enable recruiters to better support their clients and help them adapt to prevailing market conditions. Recruiters’ clients benefit from the surveys in that they are able to determine both the current salaries that professional roles are commanding elsewhere in the market, and any changes in skill set requirements. Job seekers, meanwhile, additionally are able to assess their value in markets in Japan and other countries. Recruiting experts Hays Specialist Recruitment Japan KK for the past six years have published an annual Asia Salary Guide as well as salary guides for the past 35 years in other regions where they operate. The Michael Page Salary & Employment Forecast combines both quantitative and qualitative research obtained from their Japan survey of 800 employers. The leading professional consultancy’s poll includes extensive information on the professional labour market, giving the recruiter an opportunity to engage with their clients on matters besides recruitment. According to the results of Robert Walters’ Salary Survey, the first bilingual report of its kind in Japan, cost reduction continued to be a major theme in 2012 for businesses across all industry sectors. Despite some firms streamlining functions and moving back-office and operations positions overseas, many employers focused on hiring professionals with strategic skill sets to influence business decisions and improve work procedures. The largest foreign recruitment firm in Japan found in 2012 that the high value of the yen continued to increase the number of outbound acquisitions by Japanese firms, creating tighter competition for professionals with bilingual ability and Western mindsets among firms looking to better compete in overseas markets.
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“Compared with those in the rest of the world, salaries in Japan remained relatively stable”. Rachna Ratra
Demand increased for individuals with the ability to speak Asian languages, in addition to English and Japanese, to coordinate and lead teams based offshore. Hiring was particularly prevalent for professionals in senior IT and supply chain positions, who were required to manage production facilities overseas or integrate foreign vendors into their business frameworks. In 2012, Michael Page found hiring activity was predominantly driven by recruitment for replacement roles created as employees changed positions or firms, or retired. In addition, there was some growth, due to new firms entering the market and increased hiring by Japanese organisations across all sectors. In the financial services sector, although investment banking remained subdued, the asset management and insurance industries remained bright spots. Demand for quality candidates is outstripping supply in Japan’s recruitment market, making attraction and retention key challenges facing employers. Although firms continue to offer attractive remuneration to secure top talent, Japan has not experienced significant wage hikes for several years, nor are large increases typical. Hays found that about half the respondents in Japan increased salaries less than 3% in 2012, only 4% of them gave raises of between 6% and 10%, while 5% raised salaries 10%. Rachna Ratra, director of sales and marketing at Robert Walters Japan, said: “Compared with those in the rest of the world, salaries in Japan remained
relatively stable, although they are still higher than the salaries in many Asian countries”. Markets in South-east Asia, meanwhile, experienced aggressive salary rises. In the gender debate, Hays reported that, despite ongoing efforts to promote a more diverse workforce, about 62% of all new hires were males. Michael Page found that in gaishikei (foreigncapitalised firms), regardless of gender, the salaries of those doing the same job or in the same role did not differ. Hays noted that, when making a mid-career change, 33% of job seekers sought a change to advance their careers. Other reasons included: wanting a salary increase (29%); the desire to specialise in a different field (22%); a wish to improve work/life balance (22%); wanting increased benefits (13%); and a desire for more challenging work (11%). The economic uncertainty in Japan, Hays believes, has caused a strong shift to discretionary bonuses, which employers use to reward those employees who achieve positive results in the area of business. The finance sector continues to be unpredictable, the life sciences market is extremely strong, and domestic factors, such as changes in legislation and an ageing population, have had a positive effect on demand. According to analysis in Michael Page’s forecast, the deteriorating EU economic situation may be benefiting Japan, as European-based firms focus on international expansion in a bid to find growth opportunities not available in their home markets.
POLL
Skills shortages are an ongoing challenge for Asian nations, as for most countries around the world. The majority of employers (94%) report that shortages potentially could hamper their operations. Some 45% of the employers polled, up from 38% last year, said the shortages would affect them “without a doubt”. However, 68% are willing to hire or sponsor qualified overseas candidates in skill-short areas, while 52% said they have used flexible staffing approaches over the past 12 months. In response to talent mismatches and skills shortages, employers are looking for increasingly flexible solutions to their workforce needs by using contract workers. As it becomes harder to obtain approval to employ greater numbers of permanent staff, reliance is growing on the use of contract staff. Basil Le Roux, managing director of Michael Page Japan, revealed that contract employees account for approximately 30% of the Japanese workforce and that, within gaishikei, they are increasingly being recognised as an important source of candidates. Jonathan Sampson, regional director of Hays in Japan, said: “Last year, we saw more than half our client employers use temporary staff, while almost a quarter of those responding to its survey were using contract staff on an ongoing basis”. In turn, Robert Walters found in its survey that mobile technology and online gaming firms were quick to recruit hands-on developers to complete projects on schedule. When comparing employees at global firms with those at domestic organisations, the recruitment firm found
Contract employees account for approximately 30% of the Japanese workforce. Basil Le Roux
that wages at Japanese firms tend to reflect employee tenure. Moreover, the trend towards globalisation has resulted in a growing number of these enterprises shifting to a Western business model based on performance. Expat packages are largely disappearing, according to Hays. Instead, employers are offering local packages that include different incentives, such as career advancement opportunities and broader responsibility. Global firms, meanwhile, may offer a wider range of benefits, in order to accommodate a more diverse workforce. In the nearly two years since the 2011 Tohoku earthquake and tsunami, Hays has seen the job market in most sectors return to pre-disaster levels. However, because many foreigners did not come back to Japan after having departed in the wake of the triple disaster, the dearth of talent has grown. This has led to an increased effort to attract Japanese expats back to Japan, so
“Last year, we saw more than half our client employers use temporary staff”. Jonathan Sampson
that they might add their international experience to the push for growth and help offset the shortage of specialist staff. Firms in Japan are also being forced to look for solutions besides raising salaries. The results of the Robert Walters survey show that the healthcare sector was another area of strong activity in Tokyo and Kansai. Government relations concerning medical devices led to consistently high demand for experienced regulatory affairs and quality assurance professionals. However, firms faced strong competition for qualified workers as experienced professionals often received multiple job offers. As Asian markets continue to outperform those of some Western countries, Hays’ Jonathan Sampson is optimistic about the outlook for the remainder of 2013. He expects the market in Japan to continue to be extremely strong for qualified professionals across all sectors, with demand exceeding supply in many. In addition, employers will need to be creative in attracting the right resources to ensure their business operations are unaffected. Further, Michael Page believes that the job market here will remain buoyant, with Japanese firms increasingly looking abroad for bilingual candidates as well as the global economic conditions gradually improving. For the complete surveys, please visit: www.hays.co.jp/en/salary-guide/index.htm (Hays) www.michaelpage.co.jp/ salaryandemploymentforecast (Michael Page) www.robertwalters-japan.com/salarysurvey (Robert Walters)
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VISITING JAPAN
Hugo Swire
© KENICHI AIKAWA
Minister of State for the Foreign & Commonwealth Office and East Devon MP in Tokyo to promote joint ventures
By Julian Ryall • First EU member minister to meet Japan counterpart since polls • Agenda: energy, abductions, waste management • Key to growth: defence, cyber security
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earing in mind the specialist skills and knowledge that abound at many British firms, Hugo Swire, minister of state for the Foreign & Commonwealth Office, was keen to emphasise the opportunities for joint ventures across all business sectors during his mid-January visit to Tokyo. Swire, representing an East Devon constituency and in his current post since September, is the first minister from a European Union member state to meet his
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Japanese counterpart since the Liberal Democratic Party of Japan was returned to power in December. “These are rather exciting times, as there is a lot going on in Anglo– Japanese relations. I wanted to follow up on them with talks with my new counterpart in Japan”, he told BCCJ ACUMEN. “We felt that it was very important to come here and meet the new government”. Swire met Shunichi Suzuki, the parliamentary senior vice-minister for foreign affairs, with whom he discussed a wide range of topics, including defence co-operation; nuclear and renewable energy; progress on Japan signing the Convention on the Civil Aspects of International Child Abduction and waste management systems. One firm that is seeking a foothold in the Japanese market and hopes to
benefit from Swire’s visit is Coastway Holdings. The organisation, based in his constituency, holds the rights to market an Italian-designed waste management system in Japan. Stephen Gerry, managing director of Coastway Holdings, believes the cuttingedge system is “ideal” for recycling and reusing along hundreds of kilometres of the main Japanese island’s northeastern coastline, hit by the 2011 Tohoku earthquake and tsunami. Waste, which does not need to be separated before it is put into the machine, is converted into an inert, sterile fluff that can be either turned into pellets to generate energy, or be used as fuel as is. A further advantage is that the system, able to sterilise clinical and hazardous waste, can be deployed to treat waste on-site.
VISITING JAPAN
“While I’m [in Japan], I will meet with a lot of Japanese [members of parliament] and talk about nuclear issues”, Swire said. “There are lots of British companies with different areas and levels of expertise and they could come here and help”. He pointed out that already there is a two-way relationship between the nuclear industries of both countries: Hitachi, Ltd. has been contracted to build a new nuclear energy plant in the UK, while Toshiba Corporation has expressed interest in future projects. Although members of the public are concerned about nuclear installations— particularly in light of the Fukushima nuclear plant disaster—Swire believes the fears can be allayed through regular reassurances that technology is constantly getting better and safer. Another key area for future joint development is defence, with Swire having opened the 12th UK–Japan Politico-Military Talks during his visit. “The Japanese are looking at their whole defence capability. We would like to see them taking on more of the heavy lifting in the region—militarily speaking”, he said. “They are present in Africa and are doing a lot of good work there. “As our military commitments change and we withdraw from Iraq and Afghanistan, we are becoming a different force. There is plenty of room for joint
ventures with Japanese companies”, he added. “Japanese firms already make firstclass products, so it will not be a case of UK defence companies selling stuff off the shelf to Japan, but of co-operating and sharing knowledge on systems”. Extensions of such joint efforts are likely to expand into the areas of cyber security, “another area in which the UK can bring a great deal of expertise and knowledge to the table”, he added. Cyber attacks are increasing, with a recent attack having cost a British firm £800mn in intellectual property losses and “commercial disadvantage in contractual negotiations”, he pointed out. “Japan has the same concerns, and [cyber security] is just one area in which we can co-operate and share expertise”, he added. Also discussed were Japan’s commitments under the Kyoto Protocol— the agreement that sets binding obligations for industrialised countries to reduce greenhouse gas emissions—as well as obtaining Tokyo’s support for an initiative to combat the problem of sexual violence against women in conflict situations. The latter proposal was set in motion by British politician William Hague. In addition, Swire and Suzuki considered the question of ethical investments in Burma—which Swire
had visited last December—and shared concerns over the “isolated, rogue, pariah state” of North Korea. Swire said he welcomed progress on Japan’s ratification of the Hague Convention on the Civil Aspects of International Child Abduction, which Suzuki assured him would be put to the Diet for debate in the near future. “There seems to have been significant movement on this issue. We have been told that this legislation will be submitted to the parliament here”, Swire explained. “This issue has been going on for a long time, and we welcome the news”. Japan is the only G7 nation not to have signed this convention, which dates from 1980 and requires that a parent accused of abducting a child return them to their country of habitual residence. Today, there are 37 British nationals involved in child custody cases that include a Japanese parent and would be covered by the abduction convention. Dozens of other disputes have been registered at foreign embassies in Japan. “Japan is without a doubt our most important ally in Asia, and this is particularly important in the areas of trade and security”, he said, underlining the special relationship that exists between London and Tokyo. “There is tremendous [mutual] goodwill, and it would be very foolish for the UK to ignore that or take it for granted”.
“ These are rather exciting times, as there is a lot going on in Anglo– Japanese relations. I wanted to follow up on them with talks with my new counterpart in Japan”. FEBRUARY 2013 | BCCJ ACUMEN | 25
ENVIRONMENT By Julian Ryall • • • •
TARGET: ZERO KILLS
Kent mum scours ocean to help stop bloody whale hunt
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Defiant Sea Shepherd on Pacific patrol Denies its methods designed to hurt Saved 3,600 whales in sanctuary so far Says morale is high aboard flotilla
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s dawn broke on two of the most important days of the year—Christmas and New Year’s Day—for Gillian Graham, she was about as far away from her home as it was possible to be. As her family unwrapped presents and enjoyed the other traditions of the festive season in Ramsgate, Kent, 28-year-old Graham was scouring the horizon of the Pacific Ocean from the bridge of the Sea Shepherd vessel the Steve Irwin. It was tough to be away from home at that time of year, she admitted. But, if doing so resulted in frustrating the Japanese whaling fleet’s attempt to conduct its annual “scientific whaling” slaughter, it would be worthwhile. “I’m very fortunate that my family support me 100% in what I do”, she told BCCJ ACUMEN from the Steve Irwin. “They know how important this is and that I love them dearly. “But it has been a very challenging time for me as I was away from my daughter, Chloe, for the first time this Christmas”, Graham added. “She supports what I am doing and is a huge advocate of Sea Shepherd. “She already wishes she was here. I hope that, when she is old enough, we will no longer need to travel to Antarctica to protect the whales”, she added. Graham is on the board of directors of Sea Shepherd UK, an international non-profit, marine wildlife conservation
organisation. Its mission is to end the destruction of habitats and slaughter of wildlife in the world’s oceans, in order to conserve and protect ecosystems and species. As quartermaster on the Steve Irwin, her duties at sea include navigation, assisting in the co-ordination of small boats and a helicopter, the day-to-day running of the bridge, and keeping a constant look out for the whaling fleet. Officially a member of the organisation since January 2012, Graham’s first foray into the front lines with Sea Shepherd is with their biggest campaign yet— Operation Zero Tolerance. It aims to send the whalers home without them killing a single whale. She also works with other UK-based marine organisations, including the British Divers Marine Life Rescue, as a marine mammal medic and instructor for new medics. While volunteering as co-ordinator for the charity UK Cetacean Stranding Investigation Research, she earned an income working for Lush Co., Ltd. and outdoor goods store Blacks Outdoor Retail Ltd. After returning from Operation Zero Tolerance, she will continue working to fulfil her ambition of becoming a marine biologist and zoologist. Asked why she supports an environmental organisation that has a reputation for being more direct in its actions than other groups, which also seek to halt Japan’s whaling programme, Graham said she believes there is a huge difference in the way in which Sea Shepherd operates. “I know and can trust that every penny raised by Sea Shepherd goes directly into raising awareness about, and the funding of campaigns to protect—and prevent the illegal slaughter of—whales in the Southern Ocean Whale Sanctuary”, she said. “Many other anti-whaling organisations spend a huge part of their funds on staff, advertising and other expenses”, she explained. “Those outlays leave very little in the way of funds for the intended cause. “When it comes down to the simple truth of it, Sea Shepherd is the only antipoaching organisation that is actively going to the Southern Ocean Whale Sanctuary to protect whales and prevent the illegal slaughter of endangered and protected species”. Graham also refutes the claim that Sea Shepherd’s methods are designed to cause injury to whalers.
IFAW
ENVIRONMENT
Gillian Graham spent Christmas away from her family saving the whales.
“The phrase ‘direct action’ can sometimes be looked at in a negative light. People ask how far the crew are willing to go to stop the Japanese whaling fleet”, she said. “We respect all forms of life, and have no intention of causing harm to human or animal life, and will always work to the best of our abilities to protect all living things. “We will continue to uphold maritime law and do all we can to protect our oceans”, she added. “To go too far would mean causing deliberate harm to others and breaching the laws that we are upholding. We have no desire to do that”. Sea Shepherd’s actions have saved an estimated 3,600 whales in the Southern Ocean Whale Sanctuary—a 50mn2 km area of ocean where all forms of commercial whaling are banned by the International Whaling Commission (IWC). Japan evades the ban by claiming that the whales its fleet harpoons are part of its research programme. “I find their ‘scientific research’ frustrating, to say the very least”, said Graham. “They use the loophole within
the IWC’s moratorium to illegally slaughter thousands of endangered whales in the name of science. “There are scientists all over the world who study whale diet, behaviour, species numbers and so much more”, she pointed out. “Yet they do this all without harming a single whale. They also openly discuss their findings and will give a breakdown of the exact purpose of their research. “In my opinion, the Japanese whaling fleet and government use scientific whaling as a way to get the by-product of their scientific research—whale meat—to sell at low cost and encourage the public to eat more [whale meat] in the hope that they will support their plans to bring back commercial whaling”. The Steve Irwin and Sea Shepherd’s other vessels left port on 5 November with morale “high” aboard the flotilla, according to Graham. “We all are positive that this year we once more can stop the whaling fleet meeting their quota. We sincerely hope that they will come away with zero kills this season”, she said.
Opposite page: Humpback whale watching in Japan. Right: Whalers on the Kyo Maru No. 1 use high-powered harpoons to hunt in the Southern Ocean Sanctuary.
FEBRUARY 2013 | BCCJ ACUMEN | 27
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ENVIRONMENT
THE WHALE TRUTH Damning report denies Japan’s culture, science and nutrition claims • • • •
First research using official data Accuses govt of unfair practices 14,000 whales killed since 1988 Cost to taxpayer in 25 years: ¥30bn
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comprehensive new report commissioned by the International Fund for Animal Welfare (IFAW) has thoroughly debunked the explanations used by Japanese authorities to justify the continuation of the nation’s whaling programme. The research, carried out by Japanese firms, is the first to make use of official government statistics. It paints a very different picture from that which whaling authorities have presented, based on the same figures. Entitled The Economics of Japanese Whaling: A Collapsing Industry Burdens Taxpayers, the report uses official statistics to disprove the claim that commercial whaling is a cultural and nutritional necessity for the country. Also noted is the fact that, although Japan’s whaling fleet is subsidised to the tune of some ¥782mn per year, the non-profit Institute of Cetacean Research operates at an annual loss. At the same time, today’s consumption of whale meat by members of the Japanese public is around 1% of its peak during the early 1960s. There are now nearly 5,000 tonnes of unsold whale meat—more than four times the amount stockpiled 15 years ago. This is despite an advertising campaign and auctions that have failed to shift the surplus whale meat. Further, the study claims that “the Japanese government has engaged in a concerted effort to change the direction
of the International Whaling Commission [IWC] by recruiting new members to vote on its side”, by linking Official Development Assistance to support votes. Atherton Martin, the former fisheries minister for the Commonwealth of Dominica, accused Tokyo of extortion and resigned in protest after his country voted in favour of Japan at the IWC. The claim that Japan conducts valuable “scientific whaling” also is shown to be a lie. Despite Japan’s slaughter of some 14,000 whales since 1988, the IWC’s science committee found that the research hasn’t achieved any of its stated objectives. A section of the study is devoted to the appropriation to the whaling industry of funds that had been designed to assist communities affected by the 2011 Tohoku earthquake and tsunami. It is pointed out that some ¥2.28bn was diverted to supporting “research whaling, stabilisation promotion and countermeasure expenses”. Over the past 25 years, direct subsidies to the whaling industry from the Ministry
of Agriculture, Forestry and Fisheries alone have cost the Japanese taxpayer more than ¥30bn. In addition, the study shows that the Japanese public is not particularly keen on the final product. Meanwhile, more than 54% of respondents are indifferent to whaling, while only 11% replied that they are strongly in favour of Japan continuing its whaling programme. Fully 89% have not purchased whale meat in the last 12 months, and 85% indicated that they were opposed to billions of taxpayers’ yen being spent on building a new factory ship. “The good people of Japan are paying billions to support a dying industry”, said Patrick Ramage, director of the IFAW’s whaling programme. “If [the Japanese] government wants to generate income and help coastal communities, it should support whale watching instead. “Whaling is an economic loser in the 21st century”, Ramage added.
© IFAW / NAOKO FUNAHASHI
By Julian Ryall
The 64th International Whaling Commission met at Panama City in July 2012.
Whale meat sold at a Japanese market in 2012.
FEBRUARY 2013 | BCCJ ACUMEN | 29
PUBLICITY
JFTC 2012 Essay Competition Briton wins top award as Estonia, US and Japan also take prizes Custom Media
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ccepting his prize at a reception held at the Hotel New Otani on 8 January, Michael Sullivan fought off competition from a record 216 entrants to take the top award in the 2012 Essay Competition on the theme of “Strategies for a Depopulating Japan” conducted by the Japan Foreign Trade Council Inc. (JFTC). Since 2005, the JFTC has sponsored an annual essay competition to encourage students, young researchers and business people to express their opinions on matters of national and international importance. Marking its eighth year, the prestigious competition attracted submissions from entrants, between the ages of 14 and 95, in 50 countries around the world. Sullivan, 30, an admissions officer at King’s College London, took the Grand Prize of ¥1mn for his essay, “Strategies for a Depopulating Japan: A British Model and a Japanese Legacy”. Kadri Metspalu, 27, from Estonia, was awarded one of three Prizes for Excellence worth ¥200,000 for her essay, “Strategies for a Depopulating Japan: Towards a More Inclusive and Happier Japan”. She believes the country should create a more tolerant society with an increased flexible hierarchy and a stable system for workers. Anil Nirody, a 69-year-old retired engineer, from the US, gave a detailed solution to the issue in his essay, “Japan’s Declining Population: A Comprehensive Approach to Reversing the Trend”. Japanese national Takashi Asano, 44, in his essay, “Building a New Social Structure: Work and Employment Model of ‘Covering and Sharing’”, proposed the introduction of a work sharing policy and job description system in labour markets to cope with the variety of needs. In his speech on behalf of all the award winners, Sullivan said: “I am absolutely delighted and honoured to have won the Grand Prize. “It is clear from the essays that there is an intense interest in how Japan will cope with depopulation, as well as a variety of possible answers to this problem”, he added. “However, from my essay and
From left: Vice-chairman Professor Yoko Wake; Committee Chairman Dr Iwao Nakatani; Grand Prize winner Michael Sullivan; Prize for Excellence winners Kadri Metspalu, Anil Nirody and Takashi Asano; JFTC Chairman Shoei Utsuda; and Vice-chairman Kazuo Mori
others, one of the key themes seems to be ‘change’. “No matter how much we admire Japan, in order to tackle depopulation, change is needed”, he said. “However, this can only be realised from within Japan. “I sincerely hope that some of the ideas we have proposed can gain recognition and inspire action”. Sullivan, who is from Leigh-on-Sea in Essex, was inspired by similarities in the population situation between Japan and the UK. “Besides both being islands, both countries are proud of their cultures. “I believe there is a lot that we can learn from each other and, while the UK has successfully exported its culture and reaped the benefits, it is now time for Japan to capitalise on the hugely successful export of their culture”. This could be done by importing it back in the form of increasing numbers of young foreign students and workers being able to settle in Japan, alongside initiatives to encourage young Japanese couples to have more children. Shoei Utsuda, chairman of the JFTC, congratulated the winners and all those who had taken part in the competition. “It is an honour to hear so many ideas and opinions on how Japan should combat the problems derived from depopulation”, Utsuda said. “The problems were examined from a wide perspective and suggestions were made for a future society that can maintain sustainable growth, together with improved lifestyles, work and employment styles and the education system.
“As a country facing depopulation and the rapid ageing of society ahead of other countries, I believe that, if we succeed in establishing a social model that allows us to resolve the problems derived from depopulation, our success will be helpful to emerging countries, such as China. “I sincerely hope these insightful suggestions and ideas will be applied to our society in the form of concrete measures”. The entries were judged by the selection committee for the award, headed by committee chairman Dr Iwao Nakatani, director of research at Mitsubishi UFJ Research and Consulting Co., Ltd., and chairman of Fushiki-an, as well as vice-chairs Professor Yoko Wake, Faculty of Business and Commerce at Keio University, and Kazuo Mori, NIKKEI Inc’s senior staff writer. Dr Nakatani described Sullivan’s suggestions as “inspiring”, adding that a majority of the judging panel had identified the submission as the best. Sullivan, who was paying his sixth visit to Japan to collect the award, intends to invest his winnings in further Japanese classes and hopes one day to be able to move to Japan to work. Award-winning essays, summaries, and remarks by the committee chairman can be found on the JFTC website. Japan Foreign Trade Council, Inc. Public Relations Group Tel: +81-(0) 3-3435-5964 Website: www.jftc.or.jp
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© UCHUJIN—ADRIAN STOREY
BEER
Tapping Changing Tastes Cult event challenges Japan’s notion of British beer By Justin McCurry • Four UK firms among 10 craft breweries • Fans lap up light, dark, strong, weak, weird • Thirst growing for premium cult beers
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he dimly lit dance floor of a nightclub in Tokyo’s Shibuya district may not sound like the ideal place for an event promoting the craft of brewing beer. But the first, tentative sips of a lovingly brewed, hop-heavy beer not only reminded the hundreds of enthusiasts who visited the December Club Axxcis event that there is more to the drink than the insipid, mass-marketed brands that dominate the shelves of convenience stores. It also sent them on a virtual journey to their drinking venue of choice—in this writer’s case, the comforting surroundings of an English country pub.
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Organised by Drinks Media Japan— producer of the annual Whisky Live event—and supported by the Japan Beer Times, Hop Revolution gave 10 breweries from Japan and Europe the chance to showcase their beers and tap into Japan’s quickly developing taste for craft beer. Some of the breweries in attendance were already familiar to serious drinkers in Japan: the Shizuoka-based Baird Brewing Company and BrewDog from Aberdeen, Scotland. But there was room, too, for firms that are established at home but have yet to appear in Japan. The youthful, largely Japanese crowd comprised seasoned beer drinkers and the uninitiated who were curious to discover the differences between common or garden-variety lager and, for example, freshly poured Bracia—the dark, chestnut honey-infused stout from Thornbridge Brewery in Bakewell, Derbyshire. But before glasses met lips, Alex Buchanan, Thornbridge’s representative, invited the drinkers to place their hands
over the top of their glass, swill the liquid around and breathe in the combination of malt, chocolate and smoke that makes Bracia “the perfect beer for a cold day in England, or Japan”. Experts agree: Bracia was awarded a maximum score of 100 points on the Ratebeer ranking website. The UK was particularly well represented at the event—proof of a renaissance in independent brewing in the home of real ale, according to experts. Aside from Thornbridge, whose trademark Jaipur IPA was among the beers on offer at the club’s bar, the British invasion included Fyne Ales, located at the head of Loch Fyne in Argyll, western Scotland, and Stewart Brewing Ltd, based in Loanhead, near Edinburgh. Hop Revolution was Thornbridge’s first real attempt to sound out the Japanese market. Established seven years ago, the brewery has won numerous awards and is among the leaders of the new wave of independent brewing that has swept the UK in recent years.
BEER
THORNBRIDGE BREWERY
“ The momentum for craft beer in Japan is as strong as it is in the UK”. Thornbridge exports to the US, Sweden and Canada, and is now setting its sights on Japan. Exports comprise about a fifth of its sales, but Buchanan believes it will soon rise to 25%. “We sent four of our beers to Japan on a trial basis and the reception was good”, said Buchanan. “We’ve found that people here respond in the same way as those in the UK. They say they don’t really like beer, then they try ours and are amazed that beer can taste like this. We make beers that we like to drink ourselves, and I think that’s a big part of our success”. Haruka Kanazawa, a brewer at Yo-Ho Brewing Company in Nagano Prefecture— the firm behind the popular Yona Yona Ale—was effusive about Bracia’s prospects in Japan. “I think it suits the Japanese palate”, Kanazawa said. “I believe [Bracia] will go down well with Japanese women. The alcohol content is high, but the strength is not at all overpowering”. Fyne Ales, another newcomer to Japan, specialises in crisper, lighter beers. Jarl, with an alcohol content of just 3.8%, is followed by a range of bitters, as well as golden and darker ales, that hover below 4.5%. For a bigger punch, Sublime Stout and Superior IPA weigh in at 6.8% and 7.1%, respectively. Stewart Brewing was on similarly unfamiliar territory in Tokyo but, like Thornbridge, won admirers at the event with its showcase beer, a hop explosion called Radical Road. The brewery did a roaring trade at the bar with three of its
Thornbridge Brewery is among the UK’s new wave of independent craft beer makers.
trademark ales that included the Cauld Reekie stout. Launched in 2004 by Steve Stewart and his wife, the award-winning brewery has 15 employees and supplies almost 500 pubs in Scotland. “Our motto has always been to never compromise on quality”, Stewart said. “We make the best beer we can and have fun doing something we love”. Stewart was optimistic that Japanese drinkers would be as receptive to his beers as their Scottish counterparts. “It’s fantastic here. It’s my first time in Japan and I love the enthusiasm for beer here. “I definitely think there’s an appetite for craft beer as people move away from the mainstream and pay more attention to provenance and quality”. While Stewart, Fyne and Thornbridge are on the cusp of a possible foray into Japan, the fourth British brewer represented at Hop Revolution has already built a cult following among the country’s beer lovers. BrewDog started out in 2007 with just two employees; by 2009 its Punk IPA had become the UK’s fastest-selling alternative beer brand and the top selling IPA in Scandinavia. Last year, the brewery employed just under 70 people and produced 26,750 hectolitres of beer. Disappointment that James Watt, BrewDog’s co-founder, was unable to attend Hop Revolution (he was in Scotland arranging the brewery’s move to new £7mn premises, north of Aberdeen) was quickly forgotten when Martin Dempster, the firm’s head of “special ops”, began his talk by praising the brewery’s philosophy and invited drinkers to try some samples. “I love the fruitiness of some of BrewDog’s beers; it’s a privilege to be able to drink it in Japan”, said Masashi
Takahashi, a 22-year-old student and regular at the burgeoning collection of brewpubs springing up in Tokyo. A cheer went up when Dempster unveiled Hoppy Christmas, a seasonal 7.2% beer with “citrus, piny aromas and an intro of tropical fruit”. “The momentum for craft beer in Japan is as strong as it is in the UK”, Dempster said. “People here are very excited about our beers”. While Sweden is BrewDog’s most lucrative overseas market and Japan accounts for about 5% of its exports—with its beers available in hundreds of Tokyo locations—BrewDog is keen to expand. “There’s a real energy here,” Dempster said. “There’s a parallel between Japan and the UK. We’re trying something different and taking a few risks, but we have a strong brand, logo and mission statement. That resonates at home, and here too”. Takahiro Ito, a supplier of alcoholic drinks whose inventory includes a wide range of craft beer, believes the craft beer wave is a welcome antidote to Japan’s toriaezu biiru culture—the idea that beer is merely a thirst-quenching precursor to “proper” alcohol. “We should be putting beer at the centre of everything, and these beers will definitely help [to do that]”, Ito said. “When you drink craft beer, you can taste the care and attention that has gone into making it—the human element, if you like”. Ry Beville, publisher of Japan Beer Times, said the event had challenged preconceptions about British beers among Japanese drinkers. “I think there’s a general image in Japan of British beers being somewhat bland and unexciting with regards to craft beer”, he said. “These brewers have proved to the people [at Hop Revolution] that this idea is absolutely wrong”.
FEBRUARY 2013 | BCCJ ACUMEN | 33
PROPERTY
Investing in Tokyo Now is a good time to buy property here By Megan Waters
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oreign investors are, once again, purchasing Tokyo property. According to the 2012 annual report of the global propertyconsulting firm Jones Lang LaSalle, Tokyo was the fourth most popular place in the world for real estate investment. The 2008 Lehman shock pushed Japan’s real estate market into a slump, while the industry had a very difficult time here after the 2011 Tohoku earthquake and tsunami, according to Hirokazu Mukai, president of Minato Asset Management Co., Ltd. The investment firm, which has been operating in Tokyo for eight years, conducts real estate transactions in English and Japanese. “We lost clients who were about to exchange purchase contracts within the week [of the triple disaster]; others postponed deals. But just one month after [the disaster], we had a flow of clients”, Mukai said. Included were two prospective clients who, having looked at properties before the earthquake hit, decided to buy them anyway, realising how safe and wellbuilt residential properties generally are in Japan. As a result, Mukai believes that people felt relatively safe in Tokyo, despite having experienced a major earthquake that resulted in damage to only a few buildings. According to Mukai, as issues at the Fukushima Daiichi Nuclear Plant have stabilised, foreign investors are returning to Tokyo seeking property. In addition, the new Liberal Democratic Party government has put forward a decisive plan to rescue the Japanese economy from long-term deflation. Moreover, compared with other
countries, he noted, the yield between real estate income and borrowing rates remains high. Mukai’s firm uses its expertise in real estate investment to provide a wide range of services, including assistance with rentals, real estate management and the purchase and sale of property; advice based on financial background; guidance regarding investments; and help with Japanese legal documents. “Now is a good time to invest in property here as the Japanese government and the Bank of Japan have set a clear inflation target of 2%, and there is a rising expectation of inflation among investors. “I believe the revision of the consumption tax that is expected sometime next year will increase property prices because all materials add up at a certain percentage”, he said. The advantages of investing in Tokyo property, rather than that in Hong Kong, Singapore or other Asian countries, is that the yield here is much higher and more stable. Real estate prices in other Asian cities have been high for many years, thus the risk of capital loss is higher than in the Japanese market. As a result, investors are choosing Japan as an alternative. Nevertheless, Mukai believes that one is not as likely to accrue capital gains here as in other Asian countries. Investing in property is not risk free. There is always the possibility that investors will lose some of their money, while one runs the risk that there will be vacancies and legal issues. “These [risks] are the same as in the global market, so if you have an investment property in another country, the risk itself is basically the same.” The advantages of owning a property as an investment outweigh the risks. Over the long term, he said, “you can have a stable income and, if you are
lucky and very knowledgeable about the market”, the income gained should be relatively stable. However, capital gain in the Japanese market comes mainly from developments. If developers need your land for a certain project, they will pay a large amount for it. Based on his experience, Mukai believes that Tokyo’s 23 wards are the best areas in which to invest. That said, very central areas do not provide the highest income. “If you are a skilful investor, there may be a small possibility of capital gains in these areas, but future development plans are essential for this to happen”. When considering investing in property, potential buyers should consider location, tenant stability, finance, property conditions and cash flow. Mukai believes the current and forecast stability of the economy will have a positive effect on the market, although it may have a negative effect on those looking to buy property. In addition, many industry experts anticipate an increase in real estate prices this year. Anybody can invest in real estate in Japan. Although holding a permanent or spouse visa helps one obtain better bank loans, the only requirements are money and identification. In the future, Mukai believes that the property investment industry “could suffer from large numbers of vacancies in certain areas and a decrease in potential tenants. But, investors could benefit from increasingly stable incomes, even if the country’s population does not increase”. “I believe the return to power of the Liberal Democratic Party may have a positive short-term effect on the industry”, he added.
FEBRUARY 2013 | BCCJ ACUMEN | 35
INDUSTRY | REAL ESTATE & RELOCATION
A State of Flux Innovation is key in competitive relocation industry
Unigroup Worldwide UTS employees at an Asia regional conference in Boracay, the Philippines, on 16–20 January
By Aki Nitta General manager Unigroup Worldwide UTS
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elocation firms in Japan have experienced tough challenges since the March 2011 Tohoku earthquake and tsunami, which caused the market to shrink and the relocation industry to become even more competitive. With many expats prompted by the triple disaster to leave the country, there was a brief, albeit considerable, spike in export revenues. But with this came concern regarding whether the expats would return. The community here is in a state of flux—even now—and it is difficult to predict what the future might hold for the relocation industry. As disaster-related issues started to resolve themselves very slowly, the industry faced shrinking inbound shipments. Business from some sectors continues to decrease, leaving a cloud still hanging over the industry. A possible cause of the ongoing situation might be that a majority of people planning to move here from abroad are being allocated smaller baggage allowances than previously. In addition, compared with pre-Tohoku earthquake figures, there are fewer trainees and young employees heading this way. This has left movers facing stiff competition. The relocation market had been expected to stabilise last December,
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and experts predicted that it would return to its pre-quake size early this year. But so far, inbound business has been limited. This is not surprising, given the impact that fear of radiation has when firms overseas consider assigning staff to Japan. In contrast to preferences evident prior to the quake, these days there appears to be more project-based activity among overseas organisations in Japan. Although these firms might have longterm agendas, they are choosing to take a short-term view for staff assignments. This they hope will place them in a better position to deal both with any nuclear-related safety issues that might arise here, and the prevailing worldwide economic insecurity. In addition, one cannot ignore the impact of the strong yen that, even prior to 11 March 2011, had driven many Japanese businesses offshore, while forcing others to become global players in order to survive.
Business from some sectors continues to decrease, leaving a cloud still hanging over the industry.
Fortunately, since the Liberal Democratic Party of Japan was returned to power in December, the strength of the yen has eased somewhat, and Japan’s stock market has seen some gains. The question now is how long this might last, and whether the economic policies proposed by the new administration are feasible and effective. For the time being, despite the straightened economic conditions, in order to function optimally and remain competitive, our firm has been adapting its services, introducing maximum cost savings, and conducting thorough job procedure reviews. As is the case with any firm conducting business overseas, our pricing strategy is very sensitive to exchange rate fluctuations. This is particularly true of the yen/US dollar rate, since ocean freight rates and most relocation-related services in destination countries are dollar-denominated. The ideal situation for us would be a rate of ¥100/$1 but, unfortunately, that seems unlikely for the moment. In the meantime, we continue to introduce such strategic changes in our business practices as we believe can help reduce the risk of immediate, major exchange rate-related losses. At the same time, this makes it easier to do business with organisations overseas. The relocation industry is undergoing some very exacting changes. If our industry is to benefit from these, we must look to innovation on many levels for the best and most lasting solutions.
REAL ESTATE & RELOCATION | INDUSTRY
Watch This Space Japan’s real estate market is moving forward By Hiroyuki Isobe President Japan Valuers Co., Ltd.
T
he global economy faced serious problems after the 2008 Lehman Shock, causing the Greek debt crisis that created credit insecurity for all countries in the European Union. The US economy weakened, while a slowdown was evident in China and the emerging economies. In addition, the volume of industrial production and trade shrank globally, and there was a drastic decline in the asset prices of many regions and countries. Due to many factors—including the strong yen, the downturn of the global economy, the 2011 Tohoku earthquake and tsunami, and political friction with China—the rate of growth in Japan’s gross domestic product (GDP) since 2008 had remained low—less than 1%—with negative growth barely having been avoided. Today, there are some indications of improvement in the global economy, such as the tentative settlement of the euro crisis and the provisional evasion of the fiscal cliff in the US. Nevertheless, the degree to which the mood here has changed is surprising. Yet, all that has happened in Japan is that there has been a change in the governing party and prime minister, as a result of last December’s general election. The market reacted as soon as Japan’s new prime minister, Shinzo Abe, announced a bold monetary policy, flexible fiscal policy, and growth strategy. The yen dropped about 10% during January and the stock market saw a continuous rise. It reached its highest level since the Lehman crisis. The 2% inflation target was set in order to break away from 20 years of deflation, and various economic policies will soon be implemented to stimulate the economy. At the same time, the political climate of other countries this year is expected to affect the economic mood here in many ways. The newly elected leaders of influential countries—such as China’s Xi Jinping, South Korea’s Park Geun-hye and Barack Obama of the US—are expected to
help enhance Japan’s overall growth as well as maintain regional stability. Japan’s real estate market is expected to move forward. However, there are fundamental issues that Japan can’t avoid over the long term. These include a decline in the size of the labour force; the growth in the number of people aged over 65 to some 40% of the population; a 30% decrease in the overall population; and the worst government debt in the world.
Based on the nation’s recovery mood, consumer spending is expected to increase and, it is to be hoped, will result in high performance in retail properties. The long history of real estate in developed countries has shown that property is a target for investment, once inflation is reasonably expected. Although there is a huge amount of pooled money for investments in the world, there are a limited number of investment-grade real estate opportunities. As the global economy starts to improve, equity flows into stock/ bond markets, followed by real estate. Some investors may prefer a higher yield from either the fast growing countries of China, India and Brazil, or the emerging countries, where substantial capital appreciation can be realised, despite the need for investors to be prepared for certain risks. Other investors may prefer safer, long-term investments where stable cash flows can be constantly generated. The US, the UK, Germany and France are typical Western countries offering stable investments, whereas Singapore, South
Korea and Japan are the few countries in Asia with such investment criteria. Singapore is the wealthiest country in Asia, with the highest per capita GDP in the region. South Korea’s electronics, motor vehicle, steel and shipbuilding industries, meanwhile, have caught up to or surpassed those in Japan. Nevertheless, Japan was attracting sophisticated global real estate investors even before Abe came to power. As one of the world’s leading economies, Japan has long boasted substantial and quality office space in its major cities. During the worst period after 2008, the average vacancy rate of offices in Tokyo rose to 7% or more. However, the rate has gradually declined, and is forecast to reach 5% this year. As a result, a rise in office rent is expected soon in major cities. Demand for residential properties in Tokyo has been constant, with no drop in rents for relatively new units. Residential building construction that began in FY2012 was reported at 890,000 units nationwide—up 5.8% year on year—while the 2013 fiscal year projection is for 930,000 units (up 4.5%). Based on the nation’s recovery mood, consumer spending is expected to increase and, it is to be hoped, will result in high performance in retail properties, as well as in hotel and hospitality operations. High-quality logistics properties have enjoyed high occupancy rates. These facilities in particular are meeting the needs of e-commerce industries, and their good performance is expected to continue for the foreseeable future. One reason investors find Japan’s real estate attractive is that the yield gap remains steady. The average yield rate of a 10-year government bond is about 1%, whereas the overall cap rate of investment properties is 3–5% higher. Until the value of the yen rose, the resort real estate market in Niseko, Hokkaido and Hakuba in Nagano was heavily influenced by skiers from Oceania. Now, as the yen declines, many foreign investors and skiers will be motivated to return to Japan. Thus, it would be beneficial to carefully monitor Japan’s real estate market this year.
FEBRUARY 2013 | BCCJ ACUMEN | 37
THE A-LIST OF REAL ESTATE & RELOCATION
Asian Tigers Mobility provides a comprehensive end-to-end mobility service that is tailored to meet the global needs of you or your transferee’s relocation. With more than 30 years of regional experience, we are committed to delivering the very best relocation and destination services. Relocating individuals and families can generate immense stress at both corporate and personal levels. We can alleviate this stress with our flexibility and accountability. With a full menu of relocation and move management services, we can tailor an individualised programme to fit your needs.
AREAS OF EXPERTISE Company Name:
Asian Tigers Mobility
Address:
2F Nakata Mac Toranomon Bldg 1-1-10 Atago Minato-ku, Tokyo 105-0002
Contact:
Andrew Olea
Telephone:
03-6402-2371
Email:
sales@asiantigers-japan.com
Website:
www.asiantigers-japan.com
• • • • • • • • •
Move management—office, household goods, pets, vehicles Visa and immigration Temporary accommodation Home and school search Tenancy management Orientation and cross-cultural programmes Family programmes Departure services Storage services
Azabu Court is a serviced-apartment property located in the Hiroo–Roppongi residential area (four minutes from Hiroo Station). Although close to the business heart of Tokyo, and convenient to shops and cafes, the nearby Arisugawa Park makes you forget you are in the middle of the city. We have 60 units of extended-stay studios and suites for daily, weekly and monthly rates. English-speaking professionals are on duty seven days a week, from 8am–8pm on weekdays and 9am–1pm and 2pm–6pm on weekends and national holidays. Our services include concierge, general information, mail/courier, free broadband internet access, 24-hour building security, and a nighttime superintendent who assists during the evenings. We are members of the Fitness Club Hiroo for exercise and fitness studio programmes and sell tickets at the reception for ¥700 per session. Company Name:
Serviced Apartments Azabu Court
Address:
4-5-39 Minami Azabu Minato-ku, Tokyo 106-0047
Contact:
Elizabeth Saito
Telephone:
03-3446-8610
Email:
frontdesk@azabucourt.com
Website:
www.azabucourt.com
AREAS OF EXPERTISE Serviced apartments
Established in Japan in 1965, Crown Worldwide Group is a privately held firm with global headquarters in Hong Kong and 250 operations in 55 countries. Crown Worldwide Group provides a full suite of high-quality services worldwide, including professionally tailored relocation, records management, fine arts and logistics.
AREAS OF EXPERTISE Company Name:
Crown Worldwide K.K.
Address:
Teiken Tokyo Bldg. 2F 2-17-13 Takanawa Minato-ku, Tokyo 108-0074
Telephone:
03-5447-2301
Email:
tokyo@crownrelo.com
Website:
www.crownrelo.com
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• Door-to-door domestic and international household goods transportation • Preview trip, orientation tours, home search, school search, immigration assistance, cross cultural training and settling in services • Records management services for confidential document and data storage, and destruction services • Office relocation • Fine arts services, professional transportation of artwork for galleries, auctions, exhibitions, and private collectors
bccjacumen.com/a-list
Founded in 1983, Japan Valuers is one of the leading real estate appraisal firms in Japan. We are part of a nationwide network and have alliances with several firms around the world, structuring valuations promptly for a wide range of clients. As a corporate member of the International Valuation Standards Council, we provide services in accordance with the latest accounting rules of the International Financial Reporting Standards. We are also registered with the Royal Institution of Chartered Surveyors and provide various services based on its high standards. Working closely with our global and domestic clients, we assist various types of real estate decision making through valuation and counselling.
Company Name:
Japan Valuers Co., Ltd.
Address:
Ringo Bldg. 2-13 Goban-cho Chiyoda-ku, Tokyo 102-0076
Contact:
Kiyoshi Sasagawa, director
Telephone:
03-3556-1702
Email:
global@japanvaluers.com
Website:
www.japanvaluers.com
AREAS OF EXPERTISE We provide appraisals: • Of investment properties such as J-REITs • With fair value accounting • Related to transactions, corporate M&As, share exchange and corporate separation • For property finance
We also offer: • Investment analysis and feasibility studies • Highest and best use analyses
Minato Asset Management Co., Ltd provides you full-service support for real estate investment in the greater Tokyo area, including Chiba, Saitama and Kanagawa. Further, we have completed residential transactions on houses, condos, and buildings around Minato-ku, Shibuya-ku, Meguro-ku, and other urban areas. We have English speaking consultants and legal advisors available to assist you with full support for any issue.
Company Name:
Minato Asset Management Co., Ltd
Address:
DK Shinagawa Building 5F 3-24-21 Takanawa Minato-ku, Tokyo 108-0074
Contact:
Hirokazu Mukai
Telephone:
03-3442-2709
Email:
mukai@minato-am.com
Website:
www.realestate-minato.com
AREAS OF EXPERTISE • Different loans are available from more than 10 financial institutions • We have completed multiple transactions for distressed assets with different real estate firms • Tax advisors are available for real estate tax returns
• Legal advisors available • We provide simulation for cash flow based on current and expected data • Nothing down strategy (no down payment) is available depending on your credit status
Phoenix Transport (Japan), Ltd. is a full-service worldwide mover that offers quality moving and relocation services. With offices in Tokyo, Yokohama and Okinawa, we have been servicing the expatriate, diplomatic and local communities for 30 years. As a core member of the International Association of Movers, we are represented by a close network of world-class movers. We know moving and understand that it can be an overwhelming experience. That’s why we promise to keep it simple. We have expanded our service menu to offer a selection of relocation services. We await your enquiry. Company Name:
Phoenix Transport (Japan), Ltd.
Address:
Kearny Place Yokohama Kannai 6F 3-26 Minami-nakadori Naka-ku, Yokohama 231-0006
Contact:
Martin Giles
Telephone:
045-212-3251
Email:
martin@phoenixtransport.com
Website:
www.phoenixtransport.com
AREAS OF EXPERTISE • • • • •
Full service door-to-door moving, whether it’s a local move to around the corner, or to any of the four corners of the globe Relocation services Home search in Tokyo, Osaka, Kobe, Nagoya School search, cultural training, 24-hour English helpline Furnished apartments, rental furniture, car leasing
FEBRUARY 2013 | BCCJ ACUMEN | 39
THE A-LIST OF REAL ESTATE & RELOCATION
bccjacumen.com/a-list
SIHM Inc. is a Tokyo real estate broker that has specialised in expatriate housing in Tokyo since 1974. Our firm provides bilingual services, such as luxury rental property in Tokyo for expatriates, and property management for property owners. We transform land, buildings and others that are used as real estate into luxury expatriate residences that offer highly sustainable investment benefits and produce stable profits.
Company Name:
SIHM Inc.
Address:
Annecy Aoyama 3F 2-6-12 Minami Aoyama Minato-ku, Tokyo 107-0062
Contact:
Masataka Fujishima
Telephone:
03-3470-4737
Email:
fujishima@sihm.co.jp
Website:
www.sihm.co.jp
AREAS OF EXPERTISE • • • • • • •
General housing agent Real estate sales and purchase Architecture design and advice Building management General maintenance service Interior design Interior coordination
Tokyo Monthly 21 offers furnished apartments located in central Tokyo. Choose from 31 properties and 350 rooms in a wide range of locations—suiting both the business and leisure traveller in Tokyo’s most popular location. Modern properties with a high level of safety and security—ensuring residents are safe at all times. Our rooms include washing machines, full kitchen and kitchenware, TV, DVD, air conditioner, broadband internet and more. Your own private apartment in Tokyo with all the comforts of home. Short stays (from seven days) or longer stays can be arranged.
Company Name:
Tokyo Monthly 21
Address:
SVAX Nishi-shimbashi Bldg 2F 2-39-3 Nishi-shimbashi Minato-ku, Tokyo 105-0003
Contact:
Noriko Kanemoto
Telephone:
03-6824-9581
Email:
n-kanemoto@tm21.co.jp
Website:
www.tm21.co.jp/e/
AREAS OF EXPERTISE • English speakers are available at reservation desk • Free internet • 20% discount for BCCJ ACUMEN readers *depending on room availability. Please mention BCCJ ACUMEN when you make an enquiry.
UniGroup Worldwide-Japan K.K. opened its Tokyo office in March 2012. UniGroup Worldwide-Japan offers the best and warmest customer services while considering all your relocation-related needs both internationally and domestically. We cover all major and minor cities within Japan, from Hokkaido in the north to the Okinawan islands in the south—over 2,000km in distance. Regardless of which city your relocation needs fall into, we maintain an equal service standard. We also fully utilise our international connections, in order to offer you a high standard of relocation services.
Company Name:
UniGroup Worldwide-Japan K.K.
Address:
Shibadaimon Excellent Bldg 8F 2-6-6 Shiba-Daimon Minato-ku, Tokyo 105-0012
Contact:
Sales
Telephone:
03-5777-5591
Email:
japan@unigroupworldwide.com
Website:
www.unigroupworldwide.com
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AREAS OF EXPERTISE • Personal effects and household goods relocation • Visa application assistance / real estate and school searching / other relocation services • Commercial cargo
PUBLICITY
MANCHESTER UNITED SOCCER SCHOOLS COMING TO JAPAN Building on the success of our programmes in the UK, China, India and the United Arab Emirates, Manchester United Soccer Schools will work with the UK-based Hiroshima firm, GEC World, to deliver football camps in Japan this spring. David Gill, chief executive officer of Manchester United, said: “Manchester United is delighted to announce that our highly successful soccer schools programme will take place in many cities throughout Japan, beginning March 2013 in Hiroshima. Manchester United has almost 4mn followers in Japan and I hope that many of these fans will enjoy this new way of connecting with the Club and enjoy the opportunity to be able to learn to play the United way at the Manchester United Soccer Schools.
WIN A PLACE AT THE WORLD SKILLS FINAL!
We are sure that the experience that young players will take away with them from attending a Manchester United Soccer School will enable them to understand what it means to live, train and play like a Manchester United player”.
Attend one of our Manchester United Soccer Schools and have a chance to enjoy the experience of a lifetime and play on the Old Trafford pitch.
Manchester United, a club with a long tradition of developing young footballers, has a record of producing home-grown talent.
Compete in one of the Manchester United skills challenges—held at every camp—and you could be walking out in front of 76,000 fans at the World Skills Final at Old Trafford, the home of the Manchester United football team.
From our first team and Academy teams to the Manchester United Soccer Schools, the coaching staff share the same vision: to produce high quality attacking and exciting football. Our objective is to help individuals attain their optimum level of performance and benefit from being coached the Manchester United Way. Programmes are challenging but achievable, guaranteeing that each child leaves our course with raised confidence, saying they have had fun and enjoyed the experience. Shinji Kagawa, Manchester United midfielder, said: “As a Manchester United player, I have a great opportunity to play for the best club in the world and train in a fantastic environment with top players and coaches. If you want to know what it feels like to play the Manchester United way, then attending Manchester United Soccer Schools will give you a great chance to experience coaching programmes which are based around the training of the Manchester United 1st team and Academy. I’m sure you will have a great time at the Manchester United Soccer Schools in Japan”. In 2012, some 10,000 children from more than 75 countries attended a Manchester United Soccer Schools camp.
Designed by the club’s coaches and players, the skills challenges are a great way to improve skills and allow every player, regardless of age, to compete on equal terms. One player from each week of camps in Japan will win a place at the World Skills Final in Manchester, England, and have the opportunity to: • Tour the Trafford Training Centre • Participate in the World Skills competition at Manchester United’s Training Ground • Visit the Manchester United stadium • Play on the famous Old Trafford pitch at half-time during a sell-out premier league game • Watch a premier league game at Old Trafford
At the camps, participants are placed in groups of 16 players of similar age, and remain with the same coach. The coach thus gets to know his players, and brings out the best in each child. Camp 1
21–23 March
Hiroshima University of Economics
Camp 2
25–27 March
Hiroshima University of Economics
Camp 3
30 March, 1–2 April
Yokohama Sportsman Club
Camp 4
3–6 April
Tokyo Ajinomoto Stadium
For further information, please contact: www.manchesterunitedsoccerschools.com info@manutdsoccerschoolsjapan.com Tel: 082-231-3817
FEBRUARY 2013 | BCCJ ACUMEN | 41
INTERVIEW
Corporate Governance: The Western Way By Julian Ryall
Why are we seeing a change in corporate governance requirements globally?
Simon Chelton is co-founder of Engress Intercultural Senior Leadership (ISL), a UK-based consultancy that provides offsite workshops for Japanese business leaders to enable them to develop Western approaches to working with customers, clients, partners, employees, shareholders and regulators. The organisation specialises in intercultural aspects of senior leadership through wider consultancy, coaching and mentoring. This applies equally to other intercultural transfers, including from the UK to Japan. Along with three other like-minded organisations—Japan Intercultural Consulting, Board Evaluation Limited and The Board Director Training Institute of Japan—Chelton recently took part in a seminar arranged by the London branches of the Japan External Trade Organization (JETRO) and the Japan Chamber of Commerce & Industry. The seminar specifically looked at the changing environment and the UK requirements for the boards of firms.
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Over the past 20 years or so, regulatory and legislative changes in corporate governance requirements have been introduced, often following instances of perceived major failings. In the early 1990s, the collapse of media proprietor Robert Maxwell’s UK empire prompted a substantial rethink. Numerous reports, the introduction of new legislation and the UK Corporate Governance Code followed. In the US, the failure of the energy, commodities and services company Enron Corporation (December 2001), saw the introduction of the Sarbanes-Oxley Act. Last year’s problems at Olympus Corporation may cause changes in Japan. While legislators and regulators mostly drive the changes, organisations are starting to recognise that, to be successful and do business in the global market, they need to demonstrate that their corporate governance follows best practice principles. There is a growing understanding that effective corporate governance leads to improved commercial performance.
What does this mean for Japanese firms that are doing business in the UK? Increasingly, they find that directors of boards are required to show how they have been conducting their fiduciary duties. Mere attendance at board meetings will be insufficient. Through records of board meetings, they will have to demonstrate how they have monitored and reacted to risks, and how they have identified and set the strategies for their companies. It is important to note that regulators and stakeholders in the UK expect high levels of independence, challenge and transparency in the boardroom. Japanese companies must not only meet these challenges, but also must be able to demonstrate that they have done so.
Beyond the corporate requirements, has the recent increase in international mergers and acquisitions given rise to issues surrounding cultural aspects of integration? As a result of the strong yen, many Japanese businesses have invested in UK and other overseas firms. These companies are usually very successful and have given their new Japanese owners access to international markets with proven strategies and track records. However, in some cases, there is a sense that these international assets are handled at arm’s length and are not integrated into either the management or the strategies of the new global group. This will not always cause problems, but there is a danger that cultural dissonance and misunderstandings between the different parts of a group will lead to suboptimal performance at the very least, and—in the worst case— business failure, or sale of the overseas subsidiaries at a loss.
What can the four firms offering the global executive support package do to assist firms when cultural issues arise? These companies have a range of skills and experience, including the support of board activities and organisation, training in legal and legislative responsibilities in both Japan and the UK, and education in senior leadership across cultural boundaries. The partner companies intend to respond to each request from a Japanese company on a case-by-case basis, in order to understand their particular concerns. This will also enable them to find ways to assist the Japanese firms to meet both existing and future legislative and regulatory requirements, and to optimise board performance to the best advantage of their company.
Is there recognition among Japanese firms that they need to change and are they looking for assistance? There are indications that Japanese firms recognise that new demands in overseas markets will require more
INTERVIEW
“When operating internationally, there is also a need to be more familiar with local cultural dynamics”. active compliance with local regulatory requirements and some degree of convergence in governance practice and structure. However, there may not yet be a collective recognition leading to a critical mass response. Some companies are waiting to see how the broader international corporate governance environment develops before deciding what action is necessary. We hope that appropriate information events, such as the JETRO-sponsored seminar in London, held on 9 November, will provide an improved level of awareness to allow Japanese firms to decide on the action that would be most suitable for their company.
Has there been any reluctance or resistance to change? It is probably not unfair to suggest that Japanese firms, like those of many
countries, are cautious about the new corporate governance requirements. The management of boards requires different skills to those needed to manage companies internally, as well as a different understanding of strategy and external environments. When operating internationally, there is also a need to be more familiar with local cultural dynamics. We believe that Japanese companies will want to fully understand the new requirements before deciding how to change, after which they will be extremely effective in implementation.
What are the risks involved in noncompliance with evolving regulatory and legislative standards? The clearest risk is that of punitive action, whether through fines or restrictions on trading.
Our aim is to ensure that companies are well aware of the risks and ways to both minimise those risks and optimise their performance within the appropriate market, long before there is any likelihood of punitive action. The next most significant risks are that Japanese companies will fail to attract the outstanding foreign executives and employees that they need, and that business partners—and potential partners—will choose not to develop business relationships. We want to emphasise that the global executive support package is more about using the corporate governance structure to optimise company performance, than just to minimise negative risks.
Engress Intercultural Senior Leadership (ISL) www.engressintercultural.com Japan Intercultural Consulting www.japanintercultural.com Board Evaluation Limited www.board-evaluation.co.uk Board Director Training Institute of Japan www.bdti.or.jp
SOCIAL
Where Rocket Scientists Meet? What Tokyo’s Cambridge and Oxford Society is really like
The British ambassador is usually the society president and the British Embassy Tokyo has hosted events.
Custom Media • • • • Tim Minton denies the society is elitist.
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Founded in 1903, restarted after WWII Two-thirds of 270 members are Japanese Three members from the imperial family Call for a society open to all UK graduates
T
he exact date of the first meeting of what would later become The Cambridge and Oxford Society may have been lost in the mists of time, but the aims of the association are not in doubt. The constitution states: “The object of the Society shall be to provide opportunities of social meetings for Cambridge and Oxford men and women”. The Cambridge Society, as it was then known, was set up in Tokyo in 1903. The organisation today has about 270 members and holds regular social get-togethers and sporting events for members. Currently, three members of the imperial family, namely, Crown Prince Naruhito, Crown Princess Masako and Princess Takamado, belong to the society. Thus, a party was held in November to congratulate Princess Takamado—who attended Girton College, Cambridge—on the PhD she had received from Osaka University of Fine Arts earlier
in the year for research on netsuke, miniature sculptures that were popular in the 17th century. Tim Minton, a professor with the School of Medicine at Keio University and one of seven secretaries of the society, is keen to play down any suggestions of snobbery within the club. “The members are from a wide range of backgrounds and careers, from people fresh out of university to former ambassadors”, said Minton, who read French and German at St John’s College, Cambridge. “There is the impression that [the society] is elitist and stuffy, but that’s not the case at all. “Japanese people are very big on alumni organisations and all the universities have them”. The earliest surviving records of The Cambridge and Oxford Society date back to 1921, with an entry in the club’s Minute Book No. 2 recording that the “37th Annual Meeting and Spring Dinner were held at the Tokyo Club on 10 May, 1921”. A 1995 essay, marking the 90th anniversary of the society and written by Giro Koike, formerly a Magdalen College, Cambridge student (1931–1934), pinpoints the founding year as 1903. It also detailed the Cambridge Society’s acceptance, in 1905, of colleagues from Oxford University and the change in name to incorporate both universities.
SOCIAL
Members eat, drink and meet both formally and casually.
The society was mentioned by Algernon Bertram Freeman-Mitford, the first baron Redesdale, who attended the University of Oxford’s Christ Church college, before arriving at the British Legation in Tokyo at the time of the 1868 Meiji Restoration. In The Garter Mission to Japan, he notes: “A gathering of the Cambridge Society of Japan is, therefore, an assembly of gentlemen highly cultivated, not only in the learning of their own country, but also in those branches of study which are taught in our universities, and the conversation is perhaps more varied in such a group of men than it is in any similar body in the world.
“The members are from a wide range of backgrounds and careers, from people fresh out of university to former ambassadors”.
“Questions of science, questions of letters, of history, of political economy, of philology, are discussed with just that tinge of oriental imagery which gives a spark of the divine fire to whatever it touches, stifling pedantry and brightening the narrow dullness of the common room”, Mitford wrote. The society went from strength to strength until World War II interfered in its activities. A note in the society’s minute book on 19 January, 1942 indicates that no further meetings would be held. However, the society was resurrected in 1950 and regular meetings resumed. In the intervening years, the British ambassador to Japan has generally accepted the post of society president, although Sir Hugh Cortazzi, who held the post between 1980 and 1984, was not qualified as he had instead attended the School of Oriental and African Studies at the University of London. Minton’s connection with Japan began while he was at Cambridge University and, as a member of the college choir, came to Japan in 1980 on a two-week tour. During a series of recitals in Tokyo, Fukushima, Sendai, Kanazawa, Kyoto and Takamatsu, he met his future wife. He returned to Japan in 1983 and taught at a private language school before joining Nippon Medical School the
following year. Minton, who has three grown-up children, joined Keio University in April 2012 and is responsible for all undergraduate English programmes in the university’s renowned medical school. About two-thirds of The Cambridge and Oxford Society’s membership is Japanese, the remainder being primarily British, but including former students from Malawi, Australia, Italy and Hong Kong. To be eligible for membership, candidates need to have completed at least nine terms at either Cambridge or Oxford university, or to hold a degree or diploma from either institution. However, the society also accepts applicants who have completed residence of not less than one academic year. Except in August, meetings are held twice a month. One of the gatherings is an informal event held at a Ginza hotel on the second Tuesday of each month. As the society approaches its 110th anniversary in 2015, Minton believes that there is a place in Japan for an umbrella organisation for graduates of all British institutions of higher education. “I would very much like to see a society that would be there for the good of all graduates of British universities. I’m sure we would be keen to be a sister organisation to that”, he said. www.camford.org/
FEBRUARY 2013 | BCCJ ACUMEN | 45
ARTS EVENTS Compiled by Yoko Yanagimoto
| yoko@custom-media.com
COURTESY THE ARTIST, KUNST HALLE SANKT GALLEN, ST GALLEN AND SCAI THE BATHHOUSE. PHOTO BY GUNNAR MEIER
UNTIL 23 FEBRUARY Solo exhibition by Haroon Mirza
As winner of the Daiwa Foundation Art Prize 2012, British artist Haroon Mirza gained this opportunity to hold a solo exhibition in Tokyo. The exhibition will consist of new works—characteristically interweaving sound, objects and space—that the artist will create in Japan. SCAI THE BATHHOUSE Kashiwayu-ato 6-1-23 Yanaka Taito-ku, Tokyo 110-0001 03-3821-1144
Digital Switchover 2012 Installation view in Kunst Halle Sankt Gallen, St Gallen
12pm–6pm (closed on Sundays, Mondays and national holidays) Free of charge
www.scaithebathhouse.com/en/exhibitions/2013/01/ haroon_mirza_daiwa-foundation-art-prize-winner/
FROM 6 FEBRUARY William Hogarth Caricature Exhibition
Works from well-known British painter William Hogarth’s permanent collection, including Marriage A-la-Mode—a pointed skewering of upper-class, 18th-century society—will be exhibited at the Koriyama City Museum of Art. Since opening in November 1992, the museum has focused on modern British art. Koriyama City Museum of Art 130-2 Oyaji Yasuhara-machi Koriyama City, Fukushima Prefecture 963-0066 024-956-2200 William Hogarth (1697–1764) Marriage A-la-Mode, Scene 1 1745
9:30am–5pm (entry permitted until 4:30pm) Adults from ¥200
www.city.koriyama.fukushima.jp/bijyutukan/index_e.html
14 FEBRUARY–10 MARCH Bo Ningen Line The Wall Japan Tour 2013
The members of Bo Ningen, a Japanese four-piece punk band, met while studying in London. Their unique psychedelic rock sound appeals to people in the UK and Japan. The band’s first single, Koroshitai Kimochi (2009), was an immediate success. Club Asia 1-8 Maruyama-cho Shibuya-ku, Tokyo 154-0043 03-5458-2551
http://boningen.info/
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5pm (doors open at 4:30pm) Adults from ¥3,500
25 FEBRUARY–1 MARCH Ringo Starr Japan Tour
ROB SHANAHAN
As part of his Pacific Tour, former Beatle Ringo Starr will visit Japan for the first time since 1995. He will play popular songs, including Hello It’s Me and Broken Wings with his band, featuring Steve Lukather, Richard Page, Todd Rundgren, Mark Rivera, Greg Laurie and Greg Bissonette. Zepp Nagoya 4-60-7 Hiraikecho Nagoya, Aichi Prefecture 453-0872 052-541-5758
Zepp Osaka 2-1-39 Shikitsu-higashi Naniwa-ku Osaka City, Osaka 556-0012 06-6630-8533 7pm (doors open at 6pm) Adults from ¥10,500
www.creativeman.co.jp/artist/2013/02ringostarr/
6 MARCH 1966 Quartet, Beatles & Queen London Classics
Replacing John Lennon and Paul McCartney’s positions with violins, George Harrison’s with a cello and Ringo Starr’s with a piano, the 1966 Quartet’s performance will cover the Beatles and other well-known bands. Classical versions of Queen’s We Will Rock You, the Beatles’ Hey Jude and other melodies will be played. Tokyo Bunka Kaikan 5-45 Ueno-koen Taito-ku, Tokyo 110-8716 03-3226-9999
7pm (doors open at 6:30pm) Adults from ¥4,000 (Preschool children will not be admitted)
www.t-bunka.jp/en/
6 MARCH–17 MARCH The Mousetrap
The world’s longest running show, The Mousetrap, is celebrating its 60th anniversary this year. British director Jason Arkley will direct this celebratory premium performance of Agatha Christie’s murder mystery play. Roppongi Blue Theater 5-11-12 Roppongi Minato-ku, Tokyo 03-5414-3255
Closed on 12 March Adults from ¥8,900
http://mousetrap2013.jp/
FEBRUARY 2013 2013 | BCCJ ACUMEN | 47 FEBRUARY
COMMUNITY BCCJ
At the BCCJ Japan’s International Communication Challenge event, held in association with the ACCJ, on 23 January at the Shangri-La hotel, were (from left) Akihiko Kubo, president of Ogilvy & Mather (Japan); Jonathan Kushner, managing partner Japan of Kreab Gavin Anderson; and Simon Sproule, CVP global marketing communications of Nissan Motor Co., Ltd. They spoke on the subject of the challenges of communicating with overseas customers and how Japanese firms can refocus their international practices.
Gregor Andréewitch (left), general manager of Conrad Tokyo, and Dr Greg Story, president of Dale Carnegie Training Japan, attended the BCCJ’s 51 Night Shinnenkai at the Conrad Tokyo on 24 January.
VISIT
UK IN JAPAN-FCO
UK IN JAPAN-FCO
EMBASSY
Attending a 13 December reception at the ambassador’s residence to celebrate the success of the London 2012 Olympic and Paralympic Games were (from left) Toshiyuki Akiyama, vice-governor of the Tokyo metropolitan government; Noriyuki Ichihara, secretary general of the Japanese Olympic Committee; Tim Hitchens, British ambassador to Japan; Mitsunori Torihara, president of the Japan Paralympic Committee; and Marcos Galvo, Brazilian ambassador to Japan.
Foreign & Commonwealth Office Minister Hugo Swire MP attended a lunch on 15 January with Shunichi Suzuki, senior parliamentary vice-minister for foreign affairs, to discuss trade and security issues (see page 24).
FILM
2012 PARAMOUNT PICTURES, ALL RIGHTS RESERVED
CSR
Visiting Ishinomaki, Miyagi Prefecture, on 24–25 January to survey post-disaster recovery were (from left): Kunio Suno, president of the Ishinomaki Fish Market; Peter Heginbotham, Japanese honorary consul in Manchester; and Chisato Kondo, official of the Ministry of Foreign Affairs. They went to areas affected by the 2011 Tohoku earthquake and tsunami, as well as the Ishinomaki fish market.
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British actress Rosamund Pike (centre) with director Christopher McQuarrie (left) and Tom Cruise at the Japan premiere of Outlaw at the Tokyo International Forum on 9 January. The film (originally titled Jack Reacher) opened in Japan on 1 February.
COMMUNITY PHOTOGRAPHY
ART
© SHOMEI TOMATSU; COCA-COLA, TOKYO, 1969 ; COURTESY TAKA ISHII GALLERY AND NAGOYA CITY ART MUSEUM
Held from 9 November to 27 January at the University of Oxford’s Ashmolean museum, Threads of Silk and Gold: Ornamental Textiles from Meiji Japan introduced the less wellknown ornamental textiles that were made for Western homes during Japan’s Meiji era (1868–1912).
ART
Shomei Tomatsu, widely considered the godfather of modern Japanese photography, exhibited his work showing life in 1960s and 1970s Japan, at the Barbican Art Gallery. Entitled Everything Was Moving: Photography from the 60s and 70s, the exhibition ran until 13 January. It surveyed photography from an international perspective, presenting a history of the art form through historical photographs.
Rebirth, held by Japanese artist Mariko Mori at the Royal Academy of Arts (13 December– 17 February), is the artist’s first major exhibition in London for 14 years. The exhibition includes photography, works on paper, sound works, as well as sculpture and large-scale immersive installations and environments that invite contemplation.
WINNEBAGO, 2004 ACRYLIC GOUACHE ON CANVAS 70.5 X 100 CM COURTESY OF THE ARTIST AND KATE MACGARRY GALLERY, LONDON
ART
Peter McDonald’s Winnebago, Carpets, Onsen, Potter exhibition at the Daiwa Foundation Japan House (24 January–18 March), depicts colourful scenes inhabited by people engaged in everyday activities. In his artworks, the Tokyo-born artist uses archetypes, symbolism and people’s habitual tendency to make the strange seem more familiar, while some of his works reflect his time in Japan.
Irish artist Peter MacMillan held The Sun, The Moon and Fuji, a major charity exhibition displayed on the Sony Art Wall in Tokyo’s Ginza district, on 28 December–27 January. The artist’s print series, Thirty-Six New Views of Mount Fuji, was displayed concurrently on the first floor of the Sony Building and is being shown at the Tokyo American Club until 24 February.
FEBRUARY 2013 | BCCJ ACUMEN | 49
BCCJ ACUMEN has one copy of each of these books to give away. To apply, please send an email by 28 February to: editor@custom-media.com. Winners will be picked at random.
BOOKS
Reviews by Ian de Stains OBE
Made in Japan Growing up in the UK in the 1950s I would, from time to time, come across the “made in Japan” label on, perhaps, a cheap tin automobile or a clockwork monkey—also tin. They were not expected, or indeed designed, to last. They were tawdry trinkets to be won at the coconut shy, destined to be relegated to the back of the toy box, and soon to be forgotten. In those days, not many could have imagined that, in just a few decades, the words “made in Japan” would signify products that come from a country that prizes both exceptional craftsmanship and industrial perfection. Naomi Pollock’s beautifully produced book showcases 100 new products, ranging from modest kitchen utensils to a futuristic-looking (though practical) Segway-like device aimed at wheelchair users, that demonstrate both these qualities.
Each item is impeccably photographed and accompanied by a one-page introduction to the designer (or design team) responsible for creating it. The text, crisp and to the point like the items it describes, is designed to do the job it sets out to do without superfluity. Indeed, the book stands as an example of what is often best in Naomi Pollock Merrell Japanese design: simplicity. From the £29.95 layout grid, to the endpapers and the meticulous binding, it exudes quality. The volume is a delight to handle, a joy to dip into and—itself an objêt d’art—enhances the bookshelves. Appropriately, the foreword is written by Reiko Sudo of the NUNO shop in Roppongi’s AXIS design centre (where you’re likely to find at least some of the featured products). Like the author’s introduction that follows, it sets just the right tone for browsing the pages to come.
Only in Japan
Joseph Cali with John Dougill University of Hawaii Press $24.99
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Shinto is the indigenous and older of Japan’s two main belief systems (the other being Buddhism, a 6th-century import). It rests on faith in kami (spirits)—although gods is the usual, though slightly misleading, translation—that are to be found in everything, from people and animals, to places and even inanimate objects such as rocks or trees. Thus, it is a faith that is at the same time polytheistic, pantheistic and animistic, and something that is surely special. Shinto rites and practices are very much alive in today’s Japan, so much so that most Japanese take them for granted and many would be surprised if reminded that they were practising Shintoism. For the majority of non-Japanese, the most obvious encounter with Shinto is at the many shrines that are all around us (an estimated 80,000 nationwide). Cali and Dougill’s impressive book, presenting itself as a guide to just a select few of these, is far more than that. The introduction is easily the clearest and most accessible explanation of Shinto
that I have read. There is an immense amount of detail about the history of Shinto, the types of kami, and how this most Japanese of faiths interrelates with Buddhism, Confucianism and Christianity, among other belief systems. There are numerous helpful illustrations, including ones of the most important features of a typical shrine, as well as of the clothing worn by priests and shrine attendants. In addition, of great interest is the way that the authors pose the question: “What benefit might there be in visiting a shrine for someone who has grown up in another country with different cultural and religious values?” Their answers are compelling. The authors’ enthusiasm is infectious and the depth of their knowledge, and obvious love and respect for the subject, is evident on every page. Thoroughly researched, well written and cleverly illustrated, the book should be a must-read for anyone wishing to delve into this most fascinating aspect of Japanese culture.