Conference Presentation, Panel
The New Japan: Beyond Abenomics
- Mike Milken is anticipated to return to Japan promptly following recent leadership meetings, a move supported by predictions of a surge in inbound tourism investment driven by a visitor increase from 7 million (2011) to 25 million currently, with a government target of 60 million visitors by the 2020 Tokyo Olympics.
- International travel patterns are shifting as winter destinations move from Whistler to Japan's Niseko due to a 6-hour flight time from Hong Kong compared to 14 hours, a trend expected to accelerate alongside English language development and AI technology reducing language barriers.
- The Japanese labor market is projected to open to foreign hospitality workers, including caregivers and nurses, starting next year, with plans to double the foreign workforce through deregulation of residence status and selective work permits that do not require permanent residence.
- Corporate governance reforms are expected to rapidly prevail with outside directors now present in almost all companies, driving a shift toward paying dividends, engaging in M&A, and buying back shares, which may lead to a significant increase in investment within several years.
- The next generation supercomputer and AI engine is expected to be available within 18 months, capable of performing tasks beyond current human limits and fundamentally changing the world within two to three years, potentially enabling unlimited lifespans and making Japan more competitive against global talent scarcity.
- Venture capital activity is predicted to rise with many attractive venture companies expected to emerge in the Japanese market within two or three years, supported by the "Cool Japan" strategy and technological globalization.
- Demographic challenges posed by population decline are viewed as potentially solvable through technology extending longevity, while corporate risks associated with inaction are highlighted as comparable to investment risks, necessitating a shift in mindset toward diversification and valuing different thinking over simple headcount increases.
- Potential risks include the unsustainability of workforce expansion if the cultural shift toward valuing diversity does not occur, and the necessity for the government to implement further deregulation beyond temporary Olympic measures to maintain foreign labor growth.
- No specific material financial figures or timeframes were provided regarding the "super discount" on business suits or the general safety and food drivers for visitor numbers.