Caroline Kennedy the American Chamber of Commerce in Japan in Commerce of Chamber American the 毎月一日発行第五十四巻 2 号ジャーナル二〇一七年二月一日発行

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ACCJ 2016 PERSON OF THEYEAR

US AMBASSADOR CAROLINE KENNEDY THE AMERICAN CHAMBER OF COMMERCE IN JAPAN IN COMMERCE OF CHAMBER AMERICAN THE 毎月一日発行第五十四巻 2 号ジャーナル二〇一七年二月一日発行 www.netatmo.com

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CONTENTS

VOL. 54, ISSUE 2

7 EDITOR'S DESK 22 CYBERSECURITY New Reality Data Defense C Bryan Jones How Asia–Pacific minds your business across borders 9 SOCIAL MEDIA C Bryan Jones Trending 27 J-MEDIA 10 COVER STORY Diet Dailies 2016 ACCJ Osaka Proposal for Person of the Year 2025 World Exposition US Ambassador Compromise on Caroline Kennedy Beer Tax Revisions translation of news from Keizaikai 12 REAL ESTATE Virtual Property 28 PARTNER CONTENT Mixed reality and Big Data Boosting Readiness come of age in 2017 John Amari Nikkei Asian Review

16 LEGAL 41 ACCJ MEMBER NEWS Sharing Space Airbnb and home sharing DISCLAIMER navigate new Japan law Maxine Cheyney Custom Media and the ACCJ will not accept liability for any damages caused by the contents of The Journal, including, but not limited to, any omissions, errors, facts or false statements. Opinions or advice expressed in the The Journal are not necessarily those of the ACCJ or Custom Media.

COVER PHOTO US Ambassador Caroline Kennedy PHOTO: US EMBASSY IN TOKYO

CONTENTS PHOTO Airbnb’s custom-built Yoshino House

– Page 16 JOHN AMARI MAXINE CHEYNEY C BRYAN JONES

“Virtual “Sharing Space” “Data Defense” Property” page 16 page 22 page 12 MEET THE AUTHORS MEET THE

Hometown: Oxford, England Hometown: Nairobi, Kenya Hometown: Birmingham, Alabama

Languages: English, Luo, Languages: English, French, Languages: English, Japanese, Russian conversational Japanese Kiswahili, and Creole Years in Japan: Twenty Years in journalism? Five Years in Japan: One Years in journalism? Eighteen Most memorable interview? Years in journalism? Four Most memorable interview? Ari Horie, founder of Women’s Most memorable interview? A friend Astronomer Seth Shostak Startup Lab, and Akiko Naka, founder of the late Loughborough alumni, Lisa of Wantedly Lynch, who became an editor at 26. One change you would like to see in Japan by 2020? Greater acceptance Who inspires you? Entrepreneurs Her story is one of the reasons I stayed in journalism. and freethinkers of diversity in gender and ethnicity Who inspires you? Thoughts on the importance of One change you would like to see My grandmother. She was the definition of a strong in Japan by 2020? More Japanese print journalism and its future? independent woman. students majoring in English living in More important than the delivery an English-speaking country for a year One change you would like to see in medium is the journalistic process, Japan by 2020? Something that really something often lacking online. This Thoughts on the importance of grates on my nerves is excess food aspect of print journalism will always print journalism and its future? packaging. I would love to see fewer remain critical in a world where If print journalism can adapt to the non-recyclable plastics being used. anyone can publish. digital revolution then it will be fine. What are you currently reading? What is one surprising thing that What are you currently reading? The Color Purple by Alice Walker people may not know about you? Thinking, Fast and Slow by One surprising thing people may I am a classically trained bass Daniel Kahneman not know about you? I enjoy combat trombonist and played professionally Favorite podcast that our readers sports, especially when I’m put in a for seven years. I have performed with should be listening to? StarTalk Radio difficult position that I have to fight many famous artists including Yo-Yo by Neil DeGrasse Tyson my way out of. Ma and Emanuel Ax.

Publisher Advertising Sales Director To advertise or subscribe: Simon Farrell Anthony Head [email protected] [email protected] Account Managers Editorial: President Andrew Williams [email protected] Reiko Natsukawa Robert Heldt Custom Media Edvard Vondra Publishers of The Journal for the American Chamber Editor-in-Chief Client Services Manager of Commerce in Japan. Specialists in bilingual brand Christopher Bryan Jones www.custom-media.com Joy Fajardo strategy/visual communications, corporate bespoke Studio Manager solutions. Producers of Business in Japan TV. Business Development Paul Leonard Adrien Caron Graphic Designers Kotaro Toda Michael Pfeffer Project Coordinators Daiwa Azabudai Bldg. 6F Ximena Criales Yoshiki Tatezaki 2-3-3 Azabudai, Minato-ku, Ayako Nakamura Tokyo 106-0041 Head of Project Management Media Coordinator Tel: 03-4540-7730 Megumi Okazaki Kiyoko Morita © 2017 Custom Media K.K.

The Journal is printed on paper certified by the US Forest Stewardship Council with vegetable oil ink certified by the Japan Printing Ink Makers Association.

6 THE JOURNAL n FEBRUARY 2017 NEW DESK EDITOR'S REALITY

SHARING SPACE business. On page 22, we examine the Inbound tourism is a hot topic, and Asia–Pacific Cross-Border Privacy for good reason. Japan is barreling Rules, a system that brings together towards the government’s target of APEC economies to build consumer, 40 million annual inbound tourists by business, and regulator trust. Christopher Bryan Jones 2020. This success is great, but it is also [email protected] straining the country’s accommodation FOND FAREWELL industry—a problem that will only Lastly, January 18 marked the end of worsen as we get closer to the Rugby Caroline Kennedy’s time as United Our February issue of The Journal World Cup 2019 and the Tokyo 2020 States Ambassador to Japan. The focuses on real estate and technology, Olympic and Paralympic Games. American Chamber of Commerce with a look at the innovative ways Home sharing—known as minpaku in Japan (ACCJ) is pleased to technology plays into business, the in Japanese—is a popular area of the name her the 2016 Person of the security issues surrounding it, and the sharing economy that may play a critical Year, a reflection of the important exciting growth we’re seeing in Japan. role in meeting rising demand. However, and prominent role she played in there are legal obstacles that make the supporting US businesses in Japan. MODIFIED VISION path forward unclear. On page 16, we On pages 10 and 11, you’ll find the AR, VR, and MR are acronyms we hear talk to home-sharing leader Airbnb and text of the certificate presented to thrown around daily in 2017. Standing others about the future of minpaku. her by ACCJ leadership at the US for augmented reality, virtual reality, and Embassy in Tokyo on January 17. mixed reality, they represent ways in CROSSING BORDERS We wish Ms. Kennedy all the best which tech companies are changing how As a result of high-profile security in her future endeavors. we see the world. But this technology breaches and revelations that There’s much more in this issue, isn’t as futuristic as you might think; governments are spying on their including coverage of January events it’s being used today in the real estate citizens, the protection of personal and ACCJ plans for 2017. Turn to market. On page 12, we talk to leading information has never been more page 41 for the latest from the Tokyo, innovators in the fields of AR, VR, and critical. A number of frameworks have Kansai, and Chubu chapters. n MR—both on the creation side and the been established to control the sharing user side—to find out how a mixture of of personal information across national A flagship publication of the American these technologies is boosting branding, borders, and the United States and Chamber of Commerce in Japan (ACCJ), marketing, and management of real Japan are leading the way in the effort The Journal (formerly the ACCJ Journal) is a estate in Japan and abroad. to balance security with the needs of business magazine with a 54-year history. Premier Global Real Estate JAPAN ◆ CALIFORNIA ◆ SRI LANKA

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NHK生活交通事故に備えて自動車やバイクを持つ人に加入が義務づけられている @nhk_seikatsu 自賠責＝自動車損害賠償責任保険の保険料について金融庁の審議会はことし4月から平均で6.9％引き下げることを決めました。 The Compulsory Automobile Liability Insurance Council of the Financial Services Agency has decided that automobile liability insurance, which is mandatory for drivers of cars and motorbikes, will be reduced to an average of 6.9% from April 2017.* * Translation of original content in Japanese

Arianna Huffington, Founder and CEO at Thrive Global

MISINFORMATION Fake news has been with us, in different guises, since long before anyone ever had the chance to tweet it. And our understanding of the current fake news problem, and our ability to combat it in the future, depends on our willingness to expand our study and skepticism of news that, for various reasons, has the power to misinform—and have serious consequences.

THE JOURNAL n FEBRUARY 2017 9 US AMBASSADOR ACCJ 2016 PERSON OF THEYEAR CAROLINE KENNEDY

On January 17, members of the American Chamber of Commerce in Japan presented a Certificate of Appreciation to United States Ambassador to Japan Caroline Kennedy at the US Embassy in Tokyo. The certificate reads:

“Your support of US business in to facilitate international commerce Japan was evident from your first day and partnerships. Your attention in Japan, when you took the time to to issues specific to healthcare meet with the American Chamber and labor participation have of Commerce in Japan (ACCJ). Your underscored our efforts to improve attention to the needs of US businesses the Japanese business climate for has since proved unwavering, American businesses. deepening the connection between Your role in empowering women the American business community in in Japan has contributed to increased Japan and the US government’s efforts momentum in this area as evidenced

AN AMBASSADOR'S JOURNEY IN JAPAN

Presenting the Person of the Year certificate. From left: ACCJ Treasurer–Tokyo Nancy Ngou, ACCJ Vice Presidents–Tokyo Eric Sedlak, Leanne Cutts, and Jonathan Kushner, ACCJ President Christopher J. LaFleur, US Ambassador to Japan Caroline Kennedy, ACCJ Executive Director Laura Younger, ACCJ Chairman and President Emeritus Jay Ponazecki, and ACCJ Vice President–Tokyo Andrew Conrad

10 THE JOURNAL n FEBRUARY 2017 PERSON OF THE YEAR by the success of the World Assembly enduring US–Japan partnership with ACCJ PERSONS OF THE YEAR for Women in Tokyo, an annual event President Barack Obama’s visit to that you have championed since its Hiroshima in May 2016 and Prime Wendy Cutler, vice president and 2014 inception, and the ACCJ Women Minister Shinzo Abe’s visit to Pearl 2015 managing director, Asia Society in Business Summits. Not only did Harbor in December 2016. These Policy Institute your participation in the 2014 and symbols of reconciliation and hope 2014 Fumiko Hayashi, mayor of Yokohama 2015 ACCJ Women in Business have deepened the long-standing Summits amplify the impact of an relationship and paved the way for Fujio Cho, honorary chairman of initiative critical to the future of the continued cooperation on issues of Toyota Motor Corporation and 2013 Japanese economy, your speeches shared interest. president of the Japan Sports at these events moved and inspired Ties between the ACCJ and Association hundreds of attendees. the US Embassy in Tokyo have John V. Roos, Your commitment to the promise also grown stronger, resulting in 28th US ambassador to Japan of education and its potential to renewed collaborations on disaster 2012 Susan H. Roos, labor attorney and impact US–Japan relations inspired preparedness, assisting Americans wife of the ambassador the creation of a new international abroad to vote, and the exchange of internship program by the ACCJ’s information beneficial to both the 2011 Hiroshi Mikitani, CEO of Rakuten, Inc. Education Task Force. Through American and Japanese economies. Dr. Kiyoshi Kurokawa, professor at this program, the next generation We wish to express our deep the National Graduate Institute for 2010 of globally-educated interns will appreciation for your immense Policy Studies, and chairman of the emerge with the tools necessary contributions on behalf of American Health Policy Institute, Japan to contribute to the international businesses in Japan and the US–Japan Tadashi Yamamoto, president, business community and the future relationship. It is our true honor to 2009 Japan Center for International of the US–Japan relationship for present you with the 2016 ACCJ Exchange (JCIE) years to come. Person of the Year Award.” n J. Thomas Schieffer, 2008 Your committed leadership 27th US ambassador to Japan propelled the US–Japan relationship Christopher J. LaFleur to new heights. Under your ACCJ President, 2016–2017 Prof. Heizo Takenaka, director of 2007 Keio University’s Global Security Ambassadorship, both countries Research Institute took historic steps to reaffirm the Hiroshi Okuda, senior advisor and 2006 member of the board, Toyota Motor Corporation

Taizo Nishimuro, chairman & CEO, 2005 Tokyo Stock Exchange; advisor to the Board, Toshiba Corporation

Howard H. Baker Jr., 26th US 2004 ambassador to Japan

Yuzaburo Mogi, president & CEO, 2003 Kikkoman Corporation

Masamoto Yashiro, chairman & CEO, 2002 Shinsei Bank, Limited

Yoshihiko Miyauchi, chairman, Orix Corporation; vice chairman, 2001 Keizai Doyukai; chair, Council for Regulatory Reform

Thomas S. Foley, 25th US 2000 ambassador to Japan

Dr. Kazuo Inamori, founder and chairman emeritus, 1999 DDI (now KDDI) Corporation and Kyocera Corporation

Hideo Ishihara, chairman, 1998 Goldman Sachs Japan

Yotaro Kobayashi, chairman and 1997 CEO, Fuji Xerox Company, Ltd.

Walter Mondale, 24th US 1996 ambassador to Japan

THE JOURNAL n FEBRUARY 2017 11 Interacting with augmented reality (AR) games The property development and management sector, including many in the hospitality, real estate, and retail industries, are such as Pokémon Go or virtual reality (VR) taking note of these shifting sands. Pioneers are adopting such devices such as Oculus Rift are for millions of tools for their marketing and customer engagement strategies under the banner of property technology—or PropTech. people must-do activities. The same can be said of streaming live 360-degree video and sharing BLURRED LINES “A lot of clients come to us with a problem like: ‘We hear about 3D photos online and on smartphones. virtual reality and augmented reality, but we don’t know what we should do about it.’ We work with them to figure out what But the new normal is not just in AR, VR, 3D, and live- their needs are,” explained Ivan Lam, general manager of streamed content. Artificial intelligence (AI), Big Data Brand Karma. analytics, and even unmanned aerial vehicles (drones) Established more than 10 years ago as a provider of web- are also coming of age and being widely adopted in 2017. based data analytics, Brand Karma in recent years has become a When used jointly in what experts call mixed reality (MR) marketing agency with core expertise in immersive technology content, these tools may be ushering in a golden age of and new media. That change was in part due to increasing content creation. consumer demand for such services. VIRTUAL PROPERTY Mixed reality and Big Data come of age in 2017

By John Amari

12 THE JOURNAL n FEBRUARY 2017 REAL ESTATE PHOTO: VR EXPERIENCE OF SHANGRI-LA’S MACTAN RESORT & SPA, CEBY, CREATED BY BRAND KARMA 13 FEBRUARY 2017

Within the platform, theplatform, Within receive an alert an everyreceive day and a review, writes someone these be reviews can sent managers. property to directly a convert can a manager is that a task review into THE JOURNAL Shimojima is the Japan managing director of TrustYou, TrustYou, of director managing the Japan is Shimojima the Internet crawl tools web-based analytics TrustYou’s analyzes that feature automated an alsohas platform The reviews; positive are in highlighted green “Thewords says: ‘No free bottled water in the hotel,’ and this one says, says, this one and in the hotel,’ free water bottled ‘No says: machine are As comments clean.’” not were ‘Therooms For Kazuyoshi Shimojima, Big Data services Data Big indispensable Shimojima, are Kazuyoshi For online its manage to capacity a company’s enhancing for insights. customer gain and reputation in office Tokyo its opened that company analytics a data online and hotels are clients main company’s 2015. The agents. travel usethe platform that user Companies feedback. monitor to the hotel, allowing thereby list, to-do a worker’s added to about a complaint to immediately respond to instance, for based on score, overall an has Each hotel cleanliness. room against be which can compared algorithm, own TrustYou’s a competitor. of that the allowing thereby review, used in a customer the words their response. prioritize user to this section in red example, For negative. are in red words BUSINESS INSIGHT Arguably the greatest stumbling stumbling the greatest Arguably relations is the language barrier relations block to corporate-client-customer corporate-client-customer to block Brand Karma’s clients in the hospitality, automobile, automobile, in the hospitality, clients Karma’s Brand Brand Karma also creates “game-like rendered rendered “game-like also creates Karma Brand At that time, “you could show someone a space using a space using someone show could “you time, that At bedroom— hotel as a filmspace—such a can Karma Brand “We made the decision to focus on and explore VR explore and focus on to the decision made “We and photography, which have maintained value even in even in value maintained which have and photography, times. fast-changing use sectors management and development and property and events, corporate sales tours, for products mixed-reality platforms. video sharing or websites on branding—either including properties in other cities. in other properties including even and the walk user can spaces where around Lam That added. it,” within virtual items interact with services creation content still offers the company said, commercials television as media such established for VR headset such as Oculus Rift HoloLens. The Microsoft or then use can this client to marketing content for visitors or guests potential the investigate to who wish provisions, other hotel’s a VR headset and have them navigate through it without without it through them navigate have a VR headset and much is experience, that an As them actually being there. pictures.” showing just than immersive more a into the image import and videoin a 360-degree format when, with the acquisition of companies like Oculus Rift by by Oculus Rift like companies of thewhen, acquisition with realize started to people ago, years four around Facebook explained. Lam offered,” it potential what and VR was what 14

IMAGE: LOCARISE. traffic in this location.’” thistraffic in and say something like, ‘We can guarantee amount acertain of to negotiating rents, can point as they to infront footfall of aunit accurately value units. their entire shopping mall.” mix of users is working—not just for unit, aspecific but for an continued.Béal “It current their whether allows to them also see determine kind of the tenant want mixthey for premises,” their customer behavior. or to season season year to year, is another benefit of analyzing “It is akind of analytics 2.0for retail.” customer loyalty, ‘dwell time,’ and conversation rates,” said. Béal stop and spendtime. by knowing where people go within spaceand the where they explained. But there is more. alotlearn about flowpatterns ina building Béal or location, and outside astore, or even at shop aspecific display, you can spaces. experience leavewhich trace—and adigital how learn and people use smartphones and shared on Wi-Fi or Bluetooth networks, and analyze anonymous that data—especially emitted by area ofparticular astore. way around we walk ashopping or mall we time the spend ina The Journal companies real inthe estate and retail industry,” told Béal Inc. Locarise analytics entrepreneur CEOand founder Béal, of Sébastien Big bread Datathe is also and butter for Tokyo-based data CUSTOMER BEHAVIOR travelers to compare hotels, flights, andcar rentalservices. and Skyscanner, meta-search global engines both that allow foundbe on websites such as Kayak worldthe can receive aresponse. are reduced and from reviews around translation-enabled, language barriers THE JOURNAL THE “The data strengthens“The an estate agent’sposition when it comes data pointsDetailed optimize can also arealtor’s ability to “People real inthe estate information this need industry to Understanding market trends, change evenas they from “We can at look point-of-sale data, average basket sizes, Data can help retailers analyze entire the customer experience How By could measuring data used? this traffic the be inside In anetworked society, it is now possible to collect behaviorOffline take can many forms, he said, including the “We offline use behavior toextract business insights for Ratings provided by TrustYou can . n

FEBRUARY FEBRUARY 2017 the newwebsite. Physical spaceis golden ageofcontent creation When usedjointly .these tools may beusheringina

PHOTO: VR EXPERIENCE OF LINX (USA), CREATED BY BRAND KARMA Romaine added. for online listings, and customer support exchanges,” foractivities guests, their descriptions of rooms and amenities company co-founder and CEOMatthew Romaine explained. off your shoes’ ‘The bathroomand is the left’—into to English, with translations for signs and notices—such as ‘Please take reduce that barrier. Companies hospitality inthe and real relations is language the barrier. greatest stumbling block for corporate-client-customer customer insights and engagement to users, arguably the While data analytics and mixed reality are bringing new LANGUAGE BARRIER analyzed, and infollow-up used efforts. where efficiencyof the marketingstrategies tracked, be can offerings the to marketing, advertising, and retargeting arenas, Europe and Asia. travel, and media—and expanding its offerings intofurther translators—in addition to its current on focus e-commerce, of inbound tourism to Japan, hit which 24million annual visitors. since 2008.This is quite services from apart the record in2016 rise travel easier, Gengo asteady has increase seen indemand for its what issues to solve.” greater honesty, provider giving clearer service the direction in to articulate themselves better own intheir language opens up sincerity inproviding Allowing acustomer avaluable service. communicate language intheir is abig step inshowing your or what language speak. they customers is enhanced—regardless of where come they from is that acompany’s ability to understand of needs the their A key benefit of usingGengo’s translation said, he service, “We help also hotel chains translate events local and Tokyo-based translation company Gengo, Inc. works to As plans of writing, to this Locarise expand its analytics Going forward, company the is training industry-specific Thanks rise the of to travel online agents,which have made “Every culture and traveler is different.Being able to network of traditional Japanese inns travel agent JTBCorporation’s launched to assist ajoint service enhance communications. their of more than 20,000translators to estate industries Gengo’s use network The company, for example, REAL ESTATE REAL

Drone-based footage gives real estate agents an edge on their competition

SKY HIGH “If you have a balcony on the second floor, for example, When it comes to hitting clients with the “wow factor,” the sky is you have the drone swoop up past the chandelier, face the the limit for Curtis Shaw and Kieran Jackson. balcony, and reach up to the door. I shot something like this “Drone-based footage gives real estate agents an edge on in a building in Yokohama, and the effect on clients was their competition, because clients can now see the entire very impressive.” neighborhood as a whole, as opposed to the old days when In the United States, Shaw has filmed large, high-end all they could see was the property and its immediate family homes and condos, while in Japan some of his clients surroundings,” explained Shaw, an independent filmmaker, have hailed from the agricultural sector, where huge swathes editor, and drone operator. of farmland can be filmed. His goal going forward is to Jackson, a sales associate at Los Angeles-based real estate incorporate mixed-media content into this work, including brokerage Keller Williams Hollywood Hills, agrees. the capacity to stream drone images live. “Video, including images from drones, is really important right now. When you’re an agent talking to a client, you want to WAY FORWARD show them video of the property. It is the best way to impress PropTech is clearly here to stay. But as with any technological them; it adds that wow factor,” the realtor said. revolution, there will be lag between early adopters and the Shaw and Jackson point to the prevalence of high-definition rest, the experts told The Journal. displays, smartphones, and other mobile devices which, they A number of hurdles still must be negotiated, not least of say, have created an appetite for highly immersive content—be it which are legislation, challenges due to novelty, and questions 360-degree images or drone footage. over the best mix of such solutions in a company’s branding Some five years ago, Jackson says, high-end realtors in the or marketing strategies. Data protection and privacy laws or Hollywood area started using drone footage as marketing regulations surrounding where and how to fly drones, for collateral on platforms such as YouTube. instance, are still being ironed out around the world. “There are so many agents here that now use drone footage; That said, all the contributors are excited about 2017 if you’re not using it, you should ask yourself, ‘What are you and the coming of age of mixed reality and data analytics. doing?’,” he asks rhetorically, even while admitting that quality And with the Tokyo 2020 Olympic and Paralympic Games photography still has its place in the industry. just around the corner, the general sentiment is that there Shaw agrees, but added: “Drones aren’t just about showcasing will be greater demand for corporate communications, the property and its neighborhood from new and interesting branding, and analytics services not just in the property perspectives. You also want to enhance the amenities of development and management sectors, but across all areas the property. of the economy. n

What is the goal of the campaign? Is it for brand storytelling that sticks, sales conversations, or to create buzz around a Ivan Lam of Brand Karma says service or product? The purpose determines companies should ask themselves what needs to be optimized. these questions when looking for What story or message do you wish to a mixed-reality makeover: convey? The story determines the medium and the level of interaction and immersion.

What is the product or service that you wish to focus on? Property spaces, be they hotels or resorts, for instance, lends itself well to AR and VR experiences.

THE JOURNAL n FEBRUARY 2017 15 SHARING SPACE Airbnb and home sharing navigate new Japan law

By Maxine Cheyney

16 THE JOURNAL n FEBRUARY 2017 LEGAL

Amid rapid societal change around the world, The company’s growth can be attributed to changing travel needs says Mayuko Kawano, PR manager at Airbnb. “Tourists the modern sharing economy has found both increasingly want new, adventurous, and local experiences when successes and struggles. they travel,” she explained. “For them, Airbnb is the antidote to modern, mass-produced tourism; and our community Ride-sharing company Uber, for example, has faced allows them to experience cities and neighborhoods as if they challenges from the local taxi industries in New York, lived there.” London, and Tokyo—yet the service continues to grow. Lyft, Kawano added, “Overwhelmingly, Airbnb listings in Japan HomeAway, TaskRabbit, DogVacay, and WeWork are just aren’t in the traditional tourist districts.” This is in line with five more of the hundreds of services spanning a range of global trends, where 74 percent of Airbnb listings are located needs that have found success in the United States. outside of traditional hotel areas. Home-sharing service Airbnb, founded in the United Last November, Airbnb announced a new partnership with States in 2008, has seen enormous growth globally—and Kamaishi City in northern Japan to promote rural tourism and Japan is leading the way. New Year’s travelers were especially revitalize the area. The aim is to attract travelers to visit the city good to the company at the end of 2016. Aside from Tokyo, ahead of the Rugby World Cup 2019. Fukuoka saw some of the highest growth in New Year’s Eve “Airbnb [properties] in different areas help to redistribute Airbnb bookings worldwide. tourism spend to local communities,” Kawano said. But the home-sharing service has faced legal questions Highlighting the “economic lifeline” that the service is to in Japan and, as growth continues, the need to address many, Kawano pointed out that, in 2015, the typical Airbnb host these concerns is apparent. Thus, the current laws are in Japan earned ¥1,222,400. And with an aging population, it is being revisited. promising that 14 percent of hosts are aged over 50 years; the Abenomics, the economic policies of Japanese Prime fastest growing group is those over 60. Minister Shinzo Abe, has both weakened the yen and But with the financial and practical advantages come relaxed visa requirements, resulting in a spike in tourist unanswered questions and obstacles, some of which are numbers. For this reason, there are concerns that new prominent in a society that values privacy. guidelines being introduced by the government could “Trash, noise, and overuse of common facilities are some such impose crippling restrictions on the 48,000 Airbnb problems,” said Eric Sedlak, counsel at law firm Jones Day in listings in the country, lowering Japan’s capacity Tokyo. “These are likely to only be addressed if specific facilities for tourism. prohibit the use of units as minpaku.” However, it is believed that the Airbnb in Japan has sought to tackle Japanese government is ultimately In 2016, more than three this through an online tool that allows looking to promote minpaku million Japan-bound tourists neighbors to send their complaints (private rental accommodations) through to customer service, which to tackle the influx of tourists with chose to stay in an Airbnb will then contact the host. the approaching Rugby World Cup 2019 and the 2020 Tokyo Olympic and Paralympic Games. The government is aiming for 40 million annual inbound tourists by 2020.

COPING WITH DEMAND Part of the Japanese government’s plans for regional revitalization has been strengthening the tourism industry. As stated on the government’s website, this includes improving the ease of travel and stay for tourists by forming destination management organizations, training tourism management specialists, promoting national park and culture properties, and deregulating private room rentals for lodging in Tokyo and Osaka. According to Japanese Tourism Research and Consulting Co., inbound tourism is surging, having reached 20,112,950 visits in 2016. Although this growth has economic benefits, it has also created high demand for accommodations. This is part of the reason that home sharing, or minpaku, has flourished. Osaka’s Chuo Ward was rated Airbnb’s top destination in 2015, and the city’s Konohana Ward came in fourth the following year. Overall, in 2016, more than 3 million Japan-bound tourists chose to stay in an Airbnb. Japan is one of Airbnb’s fastest growing markets for inbound guests.

THE JOURNAL n FEBRUARY 2017 17 Asia Strategy: Business Intelligence, Public Policy & Advocacy

NAVIGATING THE INTERSECTION OF BUSINESS, POLITICS AND POLICY

Untitled-5 1 1/6/16 5:43 PM LEGAL Asia Strategy: Business Intelligence,

Public Policy New rules around minpaku are expected to be submitted to the next National Diet ordinary session.

LEGAL CONSIDERATIONS gyohou). “In this case, hotel business refers to a guest being & Advocacy In some areas of Japan, Airbnb has managed to overcome legal charged an accommodation fee,” she said. This is unlike a and operational barriers. After winning an exemption from leasing business, where the “tenant uses an apartment room Japan’s hotel law, Ota Ward became the first municipality to as his or her home,” and so, the discussion that Airbnb might let residents rent out space to tourists in limited situations. be considered illegal took root. Hosts must register with the local authorities and agree to Thus, the law suggests that one must “obtain a license and inspections, and visitors have to stay at least one week. be equipped with certain facilities,” Suzuki explained. It has Kawano believes such rules will “empower a new generation been the case that many do not follow this and are therefore of micro-entrepreneurs across Japan, and increase consumer operating illegally. choice and help turn consumers into producers.” However, Kojiro Fujii, partner at law firm Nishimura Asahi, There is no specific legislation in Japan that regulates home highlighted, “Short-term rentals are not subject to the Hotel sharing. Some believe that minpaku such as Airbnb should Business Act, but minpaku—in which the number of days fall under the Hotel Business Act of 1948, but other observers stayed is typically less than a week—usually does not fall into believe that amendments to the act have not kept up with the this category.” changing business environment. With the rise of home sharing In addition, Suzuki explained, “recently it is getting easier and the increasing need for such services, the government has to conduct minpaku service legally by compliance with had to revisit the laws that govern hotels and inns to allow for relaxed regulations.” these home-sharing services. These new relaxed regulations comprise three categories. This applies to hotels and ryokans, but whether this is legally First, the government has had a National Strategic Special justified is unclear asminpaku —which provides a room in an Economic Zone policy for the past three years under individual’s home—is substantially different. which certain cities can create their own short-term rental “A big difference is that the regulatory scheme is quite ordinances, provided guests stay for a minimum of 7–10 days. different, so that there is not a level playing field as among If requirements set by the city or prefecture are met, it is minpaku, hotels, and ryokans,” Sedlak noted. Hotels and unnecessary to obtain a license under the Hotel Business Act. ryokans are subject to stricter requirements such as safety, Although the new legislation permits minpaku within staffing, and training, and there are differences in how much National Strategic Special Zones, Fujii said: “This new they have invested in facilities, compliance, and personnel. system has not been utilized well because there remains a Yuri Suzuki, senior partner at law firm Atsumi & Sakai, strict requirement on the number of days of stay, etc. And, explained why it is likely that Airbnb and other home-sharing in addition to that, the number of National Strategic Special services would fall under the Hotel Business Act (ryokan Zones is limited.”

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The order for the enforcement of the Hotel Business Act, Suzuki explained, was also amended in 2016. This was done to enable minpaku service providers to obtain a license under the act. “For instance, while gross floor area of rooms of a certain category of the hotel businesses regulated by the Hotel The government has had to Business Act must have been 33 square meters or more revisit the laws that govern under the old enforcement order, in the case of minpaku hotels and inns service, where total number of guests is fewer than 10, floor area of rooms can be 3.3 square meters times the number of guests under the amended enforcement order,” Suzuki said. Third, in June 2016, a panel set up by the Japan Tourism Agency and the Ministry of Health, Labour and Welfare approved the use of paid accommodations in private homes in residential areas. The ministry is looking to submit the bill to the Diet by March, once talks have taken place with the ruling coalition. Theminpaku law will allow businesses to provide accommodations for up to 180 days in residential areas, but will also allow municipalities to reject the establishment of these businesses. But as Jones Day’s Sedlak pointed out, “even creating new rules to address minpaku use adds to the burden of the building and other residents, because building staff must enforce the rules.” Globally, cities such as London, Paris, Amsterdam, Lisbon, and Milan have begun to embrace home sharing by making changes to Airbnb regulations. Kawano said the company hopes the same will hold true in Tokyo, Osaka, and beyond: “We want to work together with policy makers in Japan on modern, simple rules for home-sharing that are right for Japan and easy for regular people to follow.”

CONCERNS For those worried that Airbnb’s growth will negatively affect the hotel industry, Kawano emphasized that “occupancy rates of hotels in Japan have been growing steadily and have remained strong, despite the growth of Airbnb.” In terms of the regulations, Nishimura Asahi’s Fujii cautioned that “the new act would hinder the development of minpaku if it imposes heavy and excessive burdens on hosts and online platformers such as Airbnb.” Strict administrative penalties and a duty to regularly oversee and report illegal hosts are two such examples. He highlighted the importance of creating “a new act which is reasonable for hosts and online platforms.” He added that, besides the law set by the government, voluntary rules and governance promoted by home-sharing services such as Airbnb “are equally important and may be even more suitable, in some sense, to realize the goal of promoting home sharing and minpaku.” It is hoped that, overall, legislation will help enable the minpaku industry and extend Airbnb’s reach—not just in big cities but in rural parts of Japan. In turn, this should relieve the pressure on hotels to meet demand come 2019 and 2020. Kawano echoed this thought: “Japan has a global reputation for innovation and hospitality, and has an opportunity to implement modern rules that benefit and enhance this hard-earned reputation.” n

THE JOURNAL n FEBRUARY 2017 21 Data Defense How Asia–Pacific minds your business across borders

By C Bryan Jones

High-profile incidents of personal information theft have become entered: The United States (2012), Mexico (2013), Japan (2014), and common. In one such case involving Yahoo! Inc., more than Canada (2015). South Korea became 1 billion accounts were affected. With our increasing reliance on the latest to submit an application to participate, in January 2017, the Internet and cloud-based services, it is difficult to avoid risk as and Taiwan has announced an an individual. It is, therefore, incumbent on companies to protect intention to apply. As the Japan Institute for the personal information of clients. The global economy and Promotion of Digital Economy and e-commerce mean that data must be transferred across national Community (JIPDEC) explained to The Journal: “With the globalization borders, and this introduces a new level of complexity to security of economic activity centered on strategy and compliance. the Internet, the flow of personal information across borders will For companies, a data breach can institutions, such as banks and increase. To help this go more cause significant damage, but for remittance service companies, smoothly, it is necessary to establish consumers the danger is even greater. and reduce their interactions with a system such as APEC CBPR.” If the handling of their information is other people so as not to spread The APEC CBPR system requires not secure, and the details are stolen their personal information around, participating businesses to develop or leaked, the result can be serious resulting in suppressed levels not only and implement data privacy policies personal and financial hardship. of commerce, but also of political, consistent with the APEC Privacy Obvious possibilities include the educational, and cultural interactions Framework. This framework was theft of credit card information among the citizenry, resulting in turn updated in 2015 by the Data Privacy resulting in unauthorized purchases in a less friendly, less trusting, and Subgroup (DPS) of the APEC or, if a consumer’s overall identity is less dynamic society.” Electronic Commerce Steering borrowed, an unscrupulous character To address the need for stronger Group (ECSG) to address gaps in might take out a loan in their name. protection of personal information policies and regulatory frameworks Manuel E. Maisog, partner at in the modern e-commerce on e-commerce, and the revision global law firm Hunton & Williams environment, the United States was endorsed by the ministers in LLP, resident in its Beijing office, and Japan, together with the other November 2016. and a principal of the Center for 19 economies of the Asia–Pacific Currently, 18 companies in the Information Policy Leadership, Economic Cooperation (APEC), have United States are CBPR-certified. pointed out two less obvious developed the Cross-Border Privacy These include American Chamber of possibilities. In the first, “a consumer Rules (CBPR) system. Commerce in Japan members Apple could become aware that he might Inc., Cisco Systems Inc., Hewlett- have personal information ‘out APEC CBPR Packard, and IBM, which in August there’ that someone might not be On November 13, 2011, at the APEC 2013 became the very first company handling carefully, and goes into Leaders’ Summit in Honolulu, to be certified. On December 20, a state of more or less permanent Hawaii, the 21 economies of APEC 2016, IntaSect Communications, Inc., anxiety,” he said. In the second, agreed to implement the CBPR became the first Japanese company to “consumers could stop trusting system. Since then, four nations have be certified.

22 THE JOURNAL n FEBRUARY 2017 CYBERSECURITY

independent expert organization, in the form of the Accountability Agent, instead of merely requiring Data them to comply with a list of APEC CBPR builds consumer, legal requirements.” business, and regulator trust in This review of the privacy practices for certified companies cross-border flows of personal by an Accountability Agent, who is Defense information. responsible for the compliance of a company as well as a business’s own internal standards, sets the CBPR system apart from other mechanisms. “The goal of the system,” a only to certify applicant companies, Adaptiveness is also important. commercial official from the but to handle disputes that may arise The CBPR system, like all regulatory International Trade Administration between certified companies and data regimes, must remain flexible and (ITA), US Department of Commerce subjects. Hunton & Williams’ Maisog responsive to changes in laws, the told The Journal, “is to strengthen explained: “The Accountability Agent marketplace, and business practices. consumer privacy protections is taking on much of the responsibility To ensure this, APEC recently and trust, and to facilitate trade for policing, investigation, and established the Accountability across the Asia–Pacific region by enforcement. This allows governmental and Administration Study Group minimizing unnecessary barriers to enforcement agencies to step back from (AASG) within the Joint Oversight the cross-border flow of information mundane enforcement tasks, thereby Panel for the CBPR system to due to differing levels of privacy helping to conserve government review the framework and update protection regulations within the resources. The system is, therefore, in it when appropriate. The AASG participating APEC economies.” commercial parlance, ‘scalable.’” communicates regularly on the day- He also pointed out that “the to-day running of the CBPR system EASING THE LOAD APEC CBPR system raises the level as well as long-term enhancements. In The APEC CBPR system takes some of privacy protection by requiring addition, the CBPR system remains a of the burden off governments by applicant companies to submit to an key topic at the biannual meetings of relying on Accountability Agents not active and rigorous evaluation by an the APEC’s ECGS DPS.

Of the 21 members of APEC, four have joined APEC CBPR. South Korea latest to submit intent to join in 2017

Canada 2015 United States 2012 Japan 2014

Mexico Taiwan announced 2013 intention to apply

Joined

Applying

Undecided

THE JOURNAL n FEBRUARY 2017 23 The APEC CBPR system requires participating businesses to develop and implement data privacy policies consistent with the APEC Privacy Framework.

LEADING THE WAY Now that Japan is implementing Clearly APEC CBPR was designed The APEC CBPR was developed and the APEC CBPR system, Commerce and is being implemented with the endorsed by all 21 APEC member and the US Embassy in Tokyo are needs of business in mind, but with economies. The US and Japan were collaborating closely with JIPDEC, the privacy of consumers at its core. among the first to join, so they METI, and the PPC [Personal have been taking an active role in Information Protection Commission REGIONAL IMPACT expanding the system. A commercial of Japan] as they promote the system Presently, only four of the 21 APEC official from the ITA explained: “The and enroll companies.” economies have joined the CBPR. But United States has played an active role the US Department of Commerce is in developing and growing the APEC HELPING BUSINESS optimistic about the future. “We are CBPR system since the system’s A 2016 letter released by influential enthusiastic about the prospects for inception in 2008, and in developing business groups from the United the system’s expansion in 2017 and the APEC Privacy Framework, which States, Japan, and Latin America in the years ahead,” an official told outlines the nine high-level principles stressed the importance of the The Journal. “[South] Korea recently on which the system is based. The system for business. “By creating a submitted its official application to United States was the first country certification system that bridges the participate, and in late 2016 Chinese to join and fully implement the privacy regimes of each participating Taipei [Taiwan] announced its system, and has played an active role economy in a cost-effective and intention to undertake domestic in encouraging other economies to scalable way,” the letter said, “the reforms that would enable their participate.” CBPRs allow participating companies participation. With the addition From the Japanese side, Shinji to focus their time and resources on of these two economies, six of the Kakuno, director of the International innovating, serving customers, and largest economies in APEC would be Affairs Office, Commerce and pursuing their business objectives.” participating. The system is clearly Information Policy Bureau, Ministry METI’s Kakuno explained, “If gathering steam, which we expect will of Economy, Trade and Industry such a system is introduced in many continue to build moving forward.” (METI) told The Journal: “As the countries, companies do not need to According to Maisog, Vietnam second economy to introduce a CBPR adjust their privacy policies to the is exploring the option to join soon certification system following the US, requirements of countries in which and the Philippines has informally Japan will lead discussions in APEC they are doing their business.” Indeed, said they will join within the next for promoting the CBPR system with this streamlining of the security two years. There’s also an expectation the United States. Also, we will share process can potentially free up that Singapore, and perhaps Hong our experiences with and provide significant resources for businesses. Kong, will join soon. “When enough capacity-building cooperation A commercial official from the countries have joined,” Maisog said, programs to other APEC economies ITA spoke of how, in recent years, “the system could achieve a ‘network which have interests in participating concerns over privacy, cybersecurity, effect’ under which countries in the CBPR system.” Kakuno is also and the strength of domestic industry that have not yet joined will feel vice-chair of the APEC ECSG. have led to policies that threaten disadvantaged in comparison to those Erick Kish, commercial attaché and to divide the Internet and stifle that have already joined.” digital trade officer at the US Embassy innovation, saying, “We are working These views are supported by in Tokyo, highlighted the importance to grow the system before new an APEC ECSG report released on of this collaboration: “The US barriers to data flows take hold in January 16, Survey on the Readiness Department of Commerce cooperated APEC economies, building confidence for Joining Cross Border Privacy Rules closely with METI within APEC to in the data flows that businesses and System, which found that more than develop the APEC CBPR system. consumers rely on.” 57 percent of APEC members planned

24 THE JOURNAL n FEBRUARY 2017 CYBERSECURITY

The goal of the system is to facilitate trade of the EU BCR,” he explained. “A company can get certification, and and strengthen consumer privacy protections can get started executing actual cross- and trust across the Asia–Pacific region. border transfers of information, in significantly more expedient fashion under the APEC CBPR system than to join or are considering joining Currently, about 80 companies have under the EU BCR.” the system. These include Australia, obtained EU BCR certification. The flexibility of the CBPR system China, Hong Kong, the Philippines, EU BCR is seen by some as too also allows for interoperability Russia, Singapore, and Vietnam. restrictive for business or insufficient with other recognized transfer for governing the sharing of data mechanisms, such as the US–EU GOING GLOBAL? with parties outside of the certified Privacy Shield and the EU BCR. While the CBPR system was developed group of companies, and thus a door In fact, the new EU General Data for the APEC region, it is flexible could open for interoperability with Protection Regulation includes enough to expand to other regions, APEC CBPR. certain facets of the APEC regime, offering the potential for a global There are differences between the further linking the two models. framework for data flows. Whereas two frameworks. EU BCR is a way Kakuno told The Journal: “METI the EU model is strictly bilateral, to enable cross-border data transfer desires to share its understanding APEC has established a regional within group companies and does among other multilateral fora, framework with global applicability. not cover cross-border transfer to such as OECD [the Organisation An expansion of the APEC system third party companies. On the other for Economic Co-operation and and increased interoperability with hand, APEC CBPR builds consumer, Development] and G20/G7, on the other data transfer systems would business, and regulator trust in cross- effectiveness and usefulness of allow businesses to save on compliance border flows of personal information. APEC CBPR-like-schemes as a tool costs by operating with a single global An official from the US Department of balancing the protection and privacy and data protection policy. of Commerce added that “while EU utilization of personal information in Europe has taken a different BCR limits transfers to intracorporate its cross-border transfer.” approach to guarding personal activities, the CBPR system covers the According to Maisog, there is information that is transferred across transfer of information throughout an effort underway between the borders. The European Union (EU) supply chains and transactions EU’s Article 29 Working Party and Binding Corporate Rules (BCR), as processing, offering protections for APEC to explore interoperability METI’s Kakuno explains, “are internal consumer information at every level.” between the BCR and CBPR systems, rules adopted by a multinational group Maisog at Hunton & Williams spoke recognizing that, ultimately, global of companies that define its global of the efficiency of the Asia–Pacific businesses need global solutions for policy with regard to the international approach. “If there is a difference their data transfers. JIPDEC said that, transfers of personal data to the worth highlighting, it is that the with such efforts, they expect that entities within the same corporate APEC CBPR System has an approval CBPR and BCR may evolve into a group and are located in countries process that is more efficient than that more global framework. n which do not provide an adequate level of protection.” Essentially, under EU law, personal data may not be transferred to BENEFITS OF APEC CBPR a country outside the European Economic Area unless the receiving country has proven an adequate level of � The APEC CBPR system provides numerous benefits to protection and therefore has been white companies, consumers, and governments. listed by the European Commission. EU BCR certification is something � Companies that are APEC CBPR approved demonstrate like a company-specific white list. strong privacy protections to consumers and Notwithstanding the normal EU business partners. prohibition against cross-border data transfers, once a company or corporate � Companies can use APEC CBPR as a foundation group of companies has achieved EU for building a global compliance system, simplifying BCR certification, they are allowed to compliance and reducing costs. transfer personal data from the EU � to one of their offices outside the EU Consumer benefits from APEC CBPR include strong because their internal personal data- privacy protections, and improved complaint handling handling practices have been examined and dispute settlement resources. and approved.

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During a press conference at the end leading to criticism from some quarters MINISTRY OF ECONOMY, of September, Minister of Economy, that such an rise would pose an unfair TRADE AND INDUSTRY Trade and Industry Hiroshige Seko (a burden on economically disadvantaged OSAKA PROPOSAL FOR Kansai native) told media he had already consumers. Firms in the industry, such 2025 WORLD EXPOSITION been considering advancing such a as Suntory, for whom beer represents a proposal. One of the most enthusiastic relatively small product mix, are said to proponents of bringing the exposition be strongly opposed to such revisions. Preparations are gearing up to attract to Osaka is its current governor, Delaying the initial increase for two to the 2025 World Exposition to Osaka. Ichiro Matsui, who is a member of the three years, and imposing the changes On December 16, a committee of Japan Renaissance Party, which has its at three increments over 10 years, has experts from various fields, organized power base in western Japan. served to blunt opposition. under the auspices of the Ministry The current proposal calls for a of Economy, Trade and Industry reduction of ¥7 on beer (to ¥70 per MINISTRY OF FINANCE (METI), held the first of three planned 350ml) beginning October 2020, meetings. The committee is expected COMPROMISE ON and an increase on the cheapest of to issue its recommendations by May. BEER TAX REVISIONS the three grades (so-called “third Since 1970, Japan has played host to sector beer”) by ¥9.8 to ¥37.8. Then, five such events, of which two (1970 in October 2023, the tax on beer will and 1990) were held in Osaka. Two While unification of the tax structure decline further to ¥63.35 and the tax other cities, Manchester, England, and for beer and other sparkling malt on both low-malt happoshu and third- Paris, are expected to vie for the honor. beverages had been planned for the category beers will be raised to ¥46.99. Among those involved in the next fiscal year, such moves have been In October 2026, all three categories committee is Professor Shinya Yamanaka postponed due to unfavorable reactions will be taxed uniformly at ¥54.25 of Kyoto University, recipient of the 2012 from manufacturers and consumers. per 350ml. Nobel Prize in Medicine for his research Under the proposed new plan, the tax Sapporo Breweries President Masaki on induced pluripotent stem (iPs) unification will be implemented in Oga was quoted as saying his industry cells, and other business executives three stages between October 2020 and does not particularly welcome the unified from Kansai-based pharmaceutical, October 2026. However, such measures tax proposal since “It doesn’t represent a medical equipment, and precision are regarded as highly irregular, and major tax reduction per se.” n instrument manufacturers. To boost questions have been raised regarding Osaka’s appeal, individuals from world- the viability of drawing out the famous local firms such as Panasonic process over 10 years. Corporation and Suntory Holdings A number of revisions in the tax code Limited are likely to be involved, for fiscal 2017—such as elimination along with entertainment agency of the spousal tax deduction, have Yoshimoto Kogyo Co., Ltd., which is been delayed—making the unification representative of Osaka’s famous style of taxes on alcoholic beverages more of comedy. attractive as a source of revenue. The The core concept will pursue the move also appears to be supported theme “Facing the challenge of good by Takeshi Noda, the former Liberal health and long life for humankind.” Democratic Party tax commission Construction costs are estimated chief who serves as a senior consultant at ¥120 billion to ¥130 billion, and on deliberations. operating costs at ¥69 billion to While the new system calls for ¥74 billion. The projected gate will the tax rate on “beer” (defined as be around 30 million visitors (less containing no less than 67% malt) to than half of the 1970 turnout), with decline, the rate on two other types of the economic benefits to the region beer-style beverages that are currently

estimated to reach ¥6.4 trillion. taxed at lower rates will increase, / 123RF PHOTO: PAYLESSIMAGES

THE JOURNAL n FEBRUARY 2017 27 BOOSTING READINESS Academic societies join hands for cross-discipline response

By Teruhiko Yoda

Lying on one of the world’s most active seismic faults, and at the mercy of the Pacific’s often violent weather patterns, Japan faces the continuous threat of natural disasters. Yet the country has time and again overcome adversity and prospered.

Over the years, Japan has developed in creating accurate hazard maps and organizations, bringing the total number some of the world’s most advanced evacuation guidance. of participants to 30, and it has two emergency response measures. But the More than ever, the events of main roles. The first is to conduct a earthquake that struck east Japan on March 11, 2011 highlighted the need full investigation into the extent of the March 11, 2011, and the devastating for government agencies, municipalities, damage caused by the 2011 disaster, and tsunami and nuclear disaster it research organizations, and universities to deliver a summary breaking down triggered, raised many very serious to work together in formulating the disaster by discipline. The other is to questions about this country’s land and and implementing a holistic and identify interdisciplinary steps that need its disaster prevention and disaster risk comprehensive policy approach. to be taken to improve disaster reduction reduction strategies. At the behest of the Committee on and to work together on the solutions. Not only are these three areas Civil Engineering/Architecture of the For many years, greater cooperation completely interrelated, but they Science Council of Japan, 24 academic in the field has been urged, but the walls require expertise from a vast array of societies gathered in May 2011 to form around academia have often stood in the different fields. the Academic Society Liaison Association, way of progress. The Liaison Association The Japan Society of Disaster Nursing, a body tasked with examining the current was set up to play a central role in for example, has argued that utilizing state of the country. The group has since bringing together various fields. mobile phone technology for “rapid and met regularly, trying to reach beyond the accurate information sharing” is of crucial existing framework and involve larger SHARING VIEWS importance in the aftermath of a disaster. numbers of people to better shape the From December 2011 to November The Society of Instrument and Control country’s response to the Great East Japan 2014, the Science Council of Japan Engineers, meanwhile, has advocated Earthquake and potential future disasters. and the Liaison Association hosted the use of drones in “remote sensing to The Liaison Association has expanded 10 symposiums and academic forums observe dynamic volcanic disturbances” to include medical and economic under the unified theme of “How to Protect People’s Lives and National Land from Huge Disasters—A Message from 30 Academic Societies.” At these events, participants debated the potentially mounting disaster risk Japan faces. One of these events’ key achievements was the declaration titled “Proposal for Revision of Japanese Disaster Prevention and Reduction Policies.” The heads of the societies came together and hand- delivered the declaration to the minister of land, infrastructure, transport, and tourism, the minister of state for disaster management, and the senior vice minister of education, culture, sports, science, and technology. In November 2014, the Science Council hosted an academic forum on how to apply the lessons learned from the Kumamoto Castle was damaged by an earthquake measuring 7 on the Japanese seismic scale in 2016.

28 THE JOURNAL n FEBRUARY 2017 PARTNER CONTENT PARTNER

Residents look out over Kesennuma, Miyagi Prefecture, which was devastated by the 2011 tsunami.

Great East Japan Earthquake of 2011 and Back in July 2015, the Science Council on April 18 to present to the press the the Great Hanshin Earthquake of 1995 in created a new committee to deal with latest information about the earthquake. a global context. issues of disaster prevention, reduction, At this point, the Science Council The joint statement resulting from and rebuilding. The Science Council, determined that the quake qualified as an this forum was accompanied by the based on its experience of the Great East emergency situation under the guidelines publication of a booklet introducing Japan Earthquake, produced guidelines set forth by the council in February 2014. earthquake-related work and the outlining the activities of the council The new Science Council committee international activities of the societies during an emergency. This came out of joined forces with the Academic connected to the Liaison Association. the need to share the Science Council’s Network, hosting an emergency The Japan Academic Network for knowledge in the event of a large- debriefing session on May 2, with 17 of Disaster Reduction was established to scale catastrophe. the academies presenting their findings, expand the scope of the work beyond In case of a huge disaster, an emergency thereby publicizing their information earthquakes and tsunamis to include all task force headed by a board of directors and promoting inter-society data sharing. natural disasters in the program—so as will be installed. The task force will make The Academic Network is expected to to attract a greater variety of societies announcements and recommendations, work with the Science Council to help for better future preparedness. The support the government, and cooperate promote closer ties among the societies 11th and last symposium, on January 9, with researchers across various fields during regular times and to act as a 2016, heralded the establishment of expertise. contact network for the societies during of the Academic Network, and the Thus, the new committee’s goal is to an emergency. Disaster preparedness continued response to the Great East define how it will collaborate both on a and response are long-term issues. Japan Earthquake. The content of each day-to-day basis and in an emergency That means cooperation is required symposium debate is reflected in the with scientific organizations and research with the government, municipalities activities of the academic associations groups, including those under the Science and other related organs to ensure and many other organizations, which Council, that deal with measuring network continuity so that the different can be found at www.janet-dr.com. hazards from the natural environment, organizations can cooperate smoothly disaster prevention and reduction, during an emergency. n CLOSER TIES first-aid, relief and rescue, restoration, As the entire Japanese archipelago faces and rebuilding. © 2017 Nikkei Inc. increased seismic activity, fears of a The Kumamoto Earthquake in April Nikkei Asian Review is published Nankai Trough Earthquake and one that 2016 struck right as the group was by Nikkei Inc. All rights reserved. directly hits the Tokyo metropolitan area developing a contact list for its website remain very much on people’s minds. while building a network of societies that And with the effects of climate change can respond to emergency situations. Teruhiko Yoda is professor at the causing more natural disasters, an The foreshock came on April 14, then the faculty of science and engineering interdisciplinary approach is needed to earthquake struck early on the 16th— at Waseda University. This article prepare for the next catastrophe. both registered the maximum 7 on the was first published in Japanese in It was in the light of these circumstances Japanese seismic scale. the November 2016 issue of the that the Science Council of Japan In response to this emergency, experts monthly magazine Trends in the and 47 academic societies—rising from different fields who are members Sciences, edited with the cooperation subsequently to 54—came together to of the Academic Network called an of the Science Council of Japan and form the Japan Academic Network for emergency joint news conference at later translated into English by the Disaster Reduction. the Japan Society of Civil Engineers Nikkei Asian Review.

THE JOURNAL n FEBRUARY 2017 29 Business in the Heart of Tokyo

hether they are a fintech start- manager of the Office Leasing and Key to this strategy is the creation of W up, a blue-chip corporate giant, Tenant Relations Department for a number of innovative hubs catering or a transplanted Silicon Valley venture, Mitsubishi Estate Co., Ltd. to the needs of different sectors, but internationally minded companies “The area is constantly evolving, with significant cross-sector appeal. have discovered that Marunouchi is the and recently we have seen an increase “We opened EGG JAPAN in 2007— place to put down their Japan roots. in technology firms that want to have the initials stand for Entrepreneur Covering some 120 hectares of their headquarters in Marunouchi,” Group for Growing—to target Silicon the most sought-after land in Tokyo, he said. Valley companies that are already the Marunouchi District lies between Those companies include cloud unicorns there but now want to come Tokyo Station and the Imperial computing firm Salesforce, money to Japan,” said Yoshio Sakai, manager Palace, and was formerly a residential transfer service TransferWise, and of Mitsubishi Estate’s Office Leasing district for feudal lords. Today, it has artificial intelligence developer and Tenant Relations Department. been transformed into the center of Preferred Networks. “These are companies that want international business for the world’s Start-ups, law firms, trading to be in a very central location, and third-largest national economy. companies, and IT experts are also they want to be in an area that is fast- The district has more than 100 office migrating to Marunouchi from other growing,” he said. buildings that incorporate the latest parts of Tokyo. They are attracted EGG JAPAN provides private office safety features and environment- by the area and its facilities, but also space and the business-oriented friendly technologies, and is home to the growing realization that this is Tokyo 21c Club to support companies some 4,300 companies, both domestic now the heartbeat of the whole city as they create and develop their B2B and foreign. And every day of the and the place where they need to be business. Similarly, Global Business working week, 280,000 people go in order to make the new contacts Hub Tokyo opened in July 2016 with about their business here. and contracts that will enable their 50 furnished office units and event “Many people, when they think businesses to thrive. spaces, while the FinTech Center about the Marunouchi District, tend to assume that it is primarily focused on the finance sector; but finance Start-ups, law firms, trading companies, only accounts for around a quarter of the companies that are here,” and IT experts are also migrating to said Kentaro Suzuki, deputy general Marunouchi from other parts of Tokyo. SPONSORED CONTENT SPONSORED

152,000 square meters of floor space across 29 floors, including serviced apartments managed by The Ascott Limited, as well as exclusive lounge and daycare facilities for mothers who are working in the area. The Marunouchi 3-2 Project is scheduled to be completed in October 2018 and will have 173,000 square meters over 30 floors, while the Tokiwabashi Project will be two separate towers, the second of which will have 61 floors and be the tallest building in Japan when it is finished in 2027. The process of meshing all the key components together is already well under way, Suzuki said, and the ultimate of Tokyo—more commonly known as Marunouchi also has built a intention is to create a district of FINOLAB—is the first space in Tokyo reputation for having branches of “dynamic harmony,” with Marunouchi dedicated to companies operating in the some of the world’s most famous retail evolving into the part of Tokyo that is finance, securities, blockchain, and future outlets—from Baccarat to RIMOWA renowned for being open, interactive, cities technology spaces. and The Conran Shop—while there are networked, diverse, and sustainable. “These are companies that need to be numerous fine dining options as well as “We need to constantly have new able to come in and be functioning on more informal drinking establishments talent and creativity, and our task is to day one,” said Sakai. “We provide them for some post-work relaxation. provide companies and organizations with everything they need to be able to A great deal of thought has also with the space they need to interact,” do exactly that, from phones and desks gone into making the district as said Suzuki. to locations with legal and accounting livable as possible, with green spaces “Innovation is more and more specialists and networking events to help incorporated into the overall blueprint, becoming a buzzword in society and them settle in and make contacts.” along with public art installations, wide Marunouchi will change and grow with In addition to their direct working boulevards, and plans to create relaxing these new ideas and technologies,” environment, many companies choose to pedestrian zones. he added. n base themselves in Marunouchi because Marunouchi also enjoys museums, of its excellent transportation links. Tokyo art galleries, gyms, and education International Airport at Haneda is just opportunities, while the surrounding タイプA 30 minutes away and Narita International area has hotels, meeting and Airport around 60 minutes. Bullet trains symposium venues, theaters, and a from Tokyo Station mean that Kyoto is wide selection of other sources of a two-hour journey and Osaka a further entertainment. 30 minutes away. And amid a network of Mitsubishi Estate is constantly underground and above-ground railways, looking to upgrade its facilities,

all of the major stations in Tokyo are less however, and has three new major タイプB than 20 minutes away by train, making projects under way. The Otemachi Marunouchi an easy commute from Park Building was just completed anywhere in the city and points beyond. in January 2017 and has about

タイプC King SkyFront Daiwa House’s Tonomachi Project creates medical gateway

he Greater Tokyo area is a global economic As a sign of the national government’s commitment T juggernaut, with the kind of productivity, output, to the project, Kanagawa Prefecture was designated and innovation that puts many countries to shame. an International Strategic Zone by the Japanese One of the key centers has long been Kawasaki City. government in 2011. Not only has the area made vital contributions to Japan’s As part of this, Daiwa House is leading the economic development, it now stands to play an integral Tonomachi Project—the scheme’s working title—in role in bringing the Japanese economy firmly into the King SkyFront, which aims to be a global hub for 21st century. advances and innovation in the fields of life sciences At the heart of this economic development is the and environmental protection. Kawasaki Innovation Gateway at King SkyFront, on the other Ultimately, that means achieving the creation of a side of the Tama River from Haneda International Airport. healthy society and a sustainable world economy by Historically, Kawasaki was a center for Japanese leveraging the world-leading connectivity offered by industry, powering the post-war boom that made the King SkyFront’s location and the presence of major country the economic giant that it is today. During that Japanese and multinational companies in the complex. time, workers from across the nation would flock to the city, secure in the knowledge that there were plenty of MAKING A DIFFERENCE jobs to be found. The development of the Tonomachi Project in King But, as with so many inner-city industrial areas around SkyFront marks a slight departure for Daiwa House, the world, Kawasaki eventually fell on hard times. which until now has been focused on real estate Much to the alarm of local bodies, residents, and the and housing. national government, it became a symbol of changing This project, nonetheless, sees them using their economic times. experience in construction and tenancy management, King SkyFront represents a renaissance and but this time in the service of new kinds of companies. rejuvenation of this proud area, pushing the Japanese The company has adapted to and learned from the economy forward just as Kawasaki City once did. needs of the different kinds of stakeholders involved in the King SkyFront project. Such shifts aren’t so common for Japanese companies, but the motivation for this shift has been Kanagawa Prefecture was designated the looming challenges that Japan an International Strategic Zone by the faces—both an appreciation of the commercial opportunities that Japanese government in 2011. these present, as well as a sense of social responsibility. In particular, Daiwa House has been keen to contribute solutions to the problems raised

PHOTO: CABINET OFFICE, GOVERNMENT OF JAPAN by the country’s aging society, and it is something the company has previously tried to address through the designs used in its residential properties. “For housing, we try to build things that are barrier-free,” said Keitaro Takebayashi, general manager, Tokyo Head Branch, SPONSORED CONTENT SPONSORED

Keitaro Takebayashi explains the concept of King SkyFront to The Journal.

General Construction Division, Daiwa House Industry. and work,” said Takebayashi. “That is the reason we “But this is not enough, because society is moving decided to be involved with this project.” quickly in this aging direction. The companies working at King SkyFront have “Nearly 27 percent of the Japanese population already begun to make advances in pressing areas. is now over 65, and this number is projected to rise Alzheimer’s disease, for example, is predicted to have above 40 percent by 2060. This means that they need a profound global impact as other countries begin to medicine, they need healthcare,” he continued. reach the levels of elderly people seen in Japan. At “And at the same time, the working population is King SkyFront, new treatments are being developed getting smaller.” and tested. But Daiwa House has recognized that it is difficult to Then there are Johnson & Johnson, the American overcome all of these challenges on its own. pharmaceutical and medical devices multinational; The company understands the importance of—and Scottish Development International; and Cyberdyne, is capable of creating—a place to support companies a Japanese robotics and technology company in that have the skills and expertise to meet these King SkyFront. challenges, and will help them collaborate. “Daiwa House believes that covering life sciences WHAT’S IN STORE and robotics is important [in addressing the aging The Tonomachi Project in King SkyFront comprises population]. The Tonomachi Project was a place around six buildings. One will be a hotel and the for companies with those specializations to come remainder will be devoted to research. As of February 2017, space for new tenants remains; but the buildings are already filling up quickly—one is already at 90% occupancy—and King SkyFront has attracted a range of prestigious international and Japanese companies and organizations. Such companies inevitably have high requirements when it comes to facilities, and Daiwa House has risen to the challenge, ensuring that the buildings can accommodate the requirements of their research. “This is the first time that we are dealing with research concerning cells and animals, for example,” said Takebayashi, “so we have to be sensitive about matters such as temperature, humidity, air purity— those things are very new to us.”

King SkyFront represents a renaissance and rejuvenation of this proud area Artist’s conception of King SkyFront, based on the project plan. But the Tonomachi Project in King SkyFront isn’t just “We did not put a fence or a wall between the intended to be home to large companies—instead, buildings for the Tonomachi Project,” explained Daiwa House is seeking to achieve a combination of Takebayashi. “Instead, we are planning to open it up— startups and businesses with greater capital, staff particularly to the park and the plaza—so these are numbers, and research capabilities to achieve the places for everyone to mingle.” kind of dynamic and innovative environment that has This approach also extends to the wide range of typified Kawasaki City’s recent history. amenities available in the project, which will allow for “Fifty-fifty or 60–40 would be a good ratio comfortable and informal social interactions, as well as between big companies official company events. and startups,” stated The companies working at King Key to this will be the Takebayashi. “These larger aforementioned hotel, firms will be the ‘blood’ of SkyFront have already begun to which will act as a key hub our business, and this will make advances in pressing areas. for such events. With a in turn be able to support trendy industrial design startups, because these that riffs on Kawasaki City’s smaller companies need support. And also, [as tenants] heritage, the building will naturally become a focal point those startups are more likely to change.” for life in King SkyFront—for work, rest and play. As a center for innovation, King SkyFront embodies “This is a place for when you have a day off, or when other key aspects found in technology hubs around the you are going to communicate with other people,” said world. For example, Silicon Valley’s success is heavily Takebayashi. linked to the universities and institutes that are in close “We will host farmers’ markets, barbeques, proximity. To that end, Daiwa House has invited several workshops, and other community events. There will even universities to participate in the Tonomachi Project. be workshops for young mothers and their children to But innovation isn’t just about tenants, and Daiwa learn yoga.” House has put a lot of thought into making the Other measures taken by Daiwa House are simply physical environment as conducive to interactions designed to improve the quality of life for those working and spontaneity as possible. there. A running and cycling track inside the hotel area, SPONSORED CONTENT SPONSORED

Artist’s conception of King SkyFront, based on the project plan.

for example, provides an opportunity for people to Looking further ahead, King SkyFront is well-positioned unwind and stay in shape. And, of course, happy, to take advantage of Japan’s burgeoning health tourism healthy workers are more productive, too. sector, with patients from surrounding countries such as “Daiwa House isn’t a venture capital firm, but we China and the Philippines easily within reach. While the are creating the environment for startups to thrive,” focus is very much on research and innovation for now, explained Takebayashi. health tourism is nonetheless a tantalizing prospect. “Future tenants are expected to include big health MAKING CONNECTIONS firms and hospitals, and they are thinking about health One of King SkyFront’s main advantages is its tourism,” said Takebayashi. “But this is not something proximity to Haneda Airport—hence the sky reference we have pursued yet, although there have been in the area’s name. コーポレート横some inquiries.” 組ロゴ（カラー）大和ハウス工業 April 2008 As the airport takes on more and more international For now, Daiwa House is focused on the area’s flights, King SkyFront will become ever more larger goal. connected to an international network of business, “We hope that the Tonomachi Project and Kawasaki science, and research. And Kawasaki City is working City will prosper as a global gateway to the world to make that access even easier by building a bridge by leveraging its proximity to Haneda Airport,” over the Tama River to cut travel times between the Takebayashi concluded. n airport and King SkyFront. The route will also be serviced by a shuttle bus, enabling visitors to reach King SkyFront from Haneda Airport in less than five minutes. “Because it is so close to Haneda Airport, King SkyFront will act as a showroom and flagship for the General Construction Division, Tokyo Head Branch life sciences in Japan,” said Takebayashi. “We also 13-1, Iidabashi 3-chome, Chiyoda-ku, hope that those who see this place and want to create Tokyo 102-8112 Japan something similar in their own country will call upon the experience of Daiwa House.” www.daiwahouse.co.jp/English/index.html Famously SPONSORED CONTENT Warm Welcome InterContinental Hotels & Resorts spreads its hospitality across Japan

ith more than seven decades And Hans Heijligers, CEO of IHG W of experience, it comes as no ANA Hotels Group Japan, insists that his surprise that InterContinental Hotels & teams in a growing number of properties Resorts have perfected the warmest of across the country will not rest on their welcomes and the most luxurious and laurels. The challenge, he says, is to have personalized of experiences. a program of continuous improvement, Renowned for its sumptuous service ensuring that the group constantly and facilities, InterContinental Hotels & provides better standards of service to Resorts has over 180 hotels in more than meet the needs of modern travelers. 60 countries and, in 2016, marked the “InterContinental Hotels & Resorts has 70th anniversary of the opening of its first a long tradition of serving the discerning hotel. InterContinental Hotels & Resorts luxury traveler—but high-end travelers is the most luxurious brand operated are increasingly preferring innovative by the InterContinental Hotels Group experiences over the typical extravagant properties, Heijligers said, with (IHG), a global organization with a journey,” said Heijligers. ANA InterContinental Tokyo home to broad portfolio that encompasses some “They are seeking personalized and outstanding dining establishments—not of the world’s best-known properties. authentic experiences that are delivered least the French restaurant overseen IHG also operates Kimpton Hotels seamlessly,” he added. by multiple Michelin-starred chef & Restaurants, Crowne Plaza Hotels & “And as a larger proportion of the Pierre Gagnaire. Resorts, Hotel Indigo, and Holiday Inn world’s population has access to luxury IHG hotels are also ready to meet the Hotels & Resorts. travel, we need to grow and constantly needs of business users of their facilities, In Japan, IHG operates a joint venture evolve to meet their needs.” with Heijligers confirming that properties with All Nippon Airways (ANA) as IHG “We firmly believe that international are “very active” in the meetings, ANA Hotels Group Japan, offering travel should always be alluring,” said incentives, conferences and exhibitions personalized luxury at 33 hotels. Heijligers, speaking of a focus on (MICE) sector. And looking to the future, Those include seven InterContinental personalized luxury. “We are dedicated he said, significant opportunities exist in properties—three in Tokyo, two in to those who appreciate and enjoy what the area of MICE as Japan ranked 7th in Okinawa, and one in both Yokohama InterContinental Hotels & Resorts brand the world in the number of international and Osaka—together with ANA call the ‘InterContinental Life’—the conferences that it hosted in 2015. Crowne Plaza and Holiday Inn. glamour and exhilaration of fascinating And with the number of both leisure The alliance with ANA dates back a places, mixed with our international and business travelers to Japan booming, decade, but has proved such a success know-how and cultural wisdom.” Heijligers is confident that the outlook that the initial joint venture agreement Fine dining opportunities are an here is promising. was recently extended until 2036. added attraction at InterContinental “As a destination, Japan is fabulous and anyone who has experienced this country will know that there is no end to the things to see and do.” And when new visitors do arrive, they can be assured of that famously warm welcome at our hotels, he added. n SPONSORED CONTENT n out any possible resistance to Instead,“Our Word.” let’s bite our tongue, put on our best poker face, shut up, and listen to what they have to say without riposte, evaluation, without immediate without issuing the death penalty to their idea. Let’s tell them: )—the on-site reality—to know everything 現場

( s Engaged employees are self-motivated. The self- Contact [email protected] at me So, when we hear hesitation, see doubt, or sense sense or doubt, see hesitation, hear we when So, Listening to others is a new skill for most bosses. The haveWe built up a reputation of not listening, of Here is where we run into trouble ofour own making. Like Katanozaka, sometimes we don’t have full ’ opinions at our disposal. motivated are inspired. Inspired staff grow your business—but are you inspiring them? teach We leaders and organizations how to inspire their people. Want to know how we do it? our ladder higher and higher up against the wrong wall. reluctance, let’s not launch a preemptive strike to wipe “Thank you. This is an important consideration and I want to take sufficient time to mull it over.” key is to slow down, to give 100 percent concentration to the person in front of us, to really listen to them, to switch off all the white noise in our mind. need We to hear this person if we want to hear from the others. Everyone is watching like a hawk to see what happens. being the bulldozer, of pushing through regardless, and of being oblivious to dissenting opinion. This will not get turned around in a day; this is the work of months of effort. This must become the new behavior change we install if we want to draw on the full power of all the We haveWe browbeaten the troops reporting to us to genuflect when the genius boss is speaking, to doff their caps to our cleverness, to tug their forelocks in submission superiority. our to facts enough or situation about the the of command gemba needed to make the best decision. If the people around us don’t feel they can speak up, without being decimated by our forceful personalities, then we will keep on building We need people who can who can people need We we are not considering all all not considering are we the negative ramifications. the negative speak back and tell us that speak back and tell THE LEADERSHIP JAPAN SERIES The Boss The Ideas Genius President, Dale Carnegie Training Japan Training Carnegie Dale President, By Dr. Greg Story Greg By Dr. came up with a genius idea: Allow passengers hinya Katanozaka, president of ANA Holdings Inc., This sounds simple. However, if you have built a career becomeYou a powerful advocate for your own So, the odds are stacked against anyone reporting Is this you? As leaders in Japan, one of The point here is not aboutbeing willing and unafraid When you have dynamic leaders, you often get the with the best of them to get your Hasn’t way. that been your formula for massive success so far? Why change what is working? and tell us that we are not considering all the negative decision. genius our of ramifications on getting things done—despite everyone telling you it can’t be done—your ego gets pretty puffed up. opinion, you are ace at debate, and you canwrangle blame evaporates and never settles on any one person. one settles any on never and evaporates blame potentially bad news to a powerful boss. In a Japanese context, it is much better to be a yes-man and blend in with the office shrubbery as much as possible. As the boss, though, we need people who can speak back our biggest fears is ignorance. The age, stage, and power hierarchy ensures that no one wants to stand out by “speaking truth Subordinates to power.” learn quickly that taking personal responsibility for anything is a risky business; better to make it a group decision, so that their personality package. They are mentally strong, persuasive, disciplined, hard-working, weakness, of intolerant tough, masterful, and basically a handful them. everyone around for The plan was soon scrapped. soon was plan The to try new things. That courage and motivation is exemplary. The point is that no one inside ANA told the boss that the emperor has no clothes. “success at all costs” dynamism that comes as part of to order breakfast, lunch, or dinner whenever they they whenever dinner breakfast, or order lunch, to please. Passenger surveys showed that clients were in full agreement. What he had not anticipated was that upon immediately meals the order passengers would takeoff, making it impossible to deliver on the promise. S BUSINESS INDEX | FEBRUARY 2017 Real Estate and Legal Business Index—a monthly printed and digital industry company listing— can help with your property and legal needs, and much more! SPONSORED CONTENT journal.accj.or.jp/businessindex

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38 THE JOURNAL n FEBRUARY 2017 SPONSORED CONTENT SPONSORED Inheritance/ Gift Tax Reforms Japan makes drastic changes for expats

By Eiji Miura

n December 2016, Japan’s ruling coalition Does the individual possess a residency status other than announced its tax reform plan for fiscal 2017 I Permanent Resident or Spouse or Child of a Japanese National? (April 2017–March 2018). With this reform, the Government of Japan plans to drastically YES NO revise the rules relating to inheritance and gift tax obligations for non-Japanese. Has the individual lived in Japan for fewer than 10 years within the 15 years prior to the inheritance/gift? The current inheritance tax law treats all

residents of Japan equally, regardless of : Temporarily domiciled YES NO 1 their nationality. For a resident of Japan, all assets either received or bequeathed Japan inheritance/gift tax applies Refer to chart below for scope CHART only to property located in Japan. of inheritance/gift tax. are subject to inheritance tax in Japan regardless of the location of the asset. This No domicile in Japan can affect foreign individuals on temporary SUCCESSOR / DONEE work assignment in Japan whose parents Japanese national Domicile No pass away during the assignment, and in Japan Domiciled in No domicile in Japanese creates Japanese inheritance tax obligations DECEDENT / Japan within the Japan within the nationality DONOR for their heirs should the individual pass past 10 years past 10 years

away in Japan during the assignment. In Domicile in Japan Japan, the gift tax rules supplement inheritance tax law. Domiciled in All assets taxable In addition to inheritance tax, non- Japan within the regardless of location past 10 years

Japanese who work in Japan and temporarily tax of Inheritance/Gift : Scope 2

transfer assets to their offspring—or receive No domicile in Assets located in

assets from their parents—are subject to CHART Japan within the Japan taxable gift tax in Japan regardless of the property’s past 10 years No domicile in Japan location. Additionally, Japan has the highest tax burden in the world for transfers of wealth, such as inheritance and gifts. (excluding those with permanent residency from overseas, and that the revision was Under the tax reform plan, the or family visas of Japanese nationals). needed. The changes, which will take effect Japanese government intends to revise the If the temporary domicile criteria are in April 2017, will bring Japan’s inheritance inheritance/gift tax obligations for foreigners met, the scope of Japan’s inheritance and and gift tax laws in line with those of several to attract more highly-skilled professionals gift tax will narrow, applying only to assets European countries and the United States, to the country. The revisions will apply to located in Japan rather than worldwide. which do not levy inheritance/estate tax residents who have a “temporarily domicile” In other words, temporarily domiciled on expats on temporary assignments who in Japan and have a visa status listed in foreigners who only hold offshore assets have offshore assets. Appendix Table 1 of the Immigration will fall out of the scope of Japan’s Finally, the National Tax Authority is Control and Refugee Recognition Act. inheritance and gift tax legislation. continuing its focus on high-net-worth Those with Permanent Resident status or a Recently, almost all major Japanese individuals. Those with Permanent Spouse or Child of Japanese National visa corporations have sought to hire senior Resident status or Spouse or Child of are excluded from this reform. executives from abroad. Some businesses Japanese National visas, and are thus “Temporarily domicile” is defined as a pointed out that the current inheritance excluded from this relaxation of the rules, stay in Japan of fewer than 10 years within rules were proving a difficult obstacle should pay careful attention to their Japan the 15 years prior to the inheritance/gift to recruiting highly-skilled professionals inheritance/gift tax obligations. n

Eiji Miura is a partner at Grant Thornton Japan specializing in succession planning and international inheritance/gift taxation for high-net-worth individuals.

For more information, please contact your Grant Thornton representative at +81 (0)3 5770 8829 or email us at [email protected] www.grantthornton.jp/en THE ENTENTE_EDIT.pdf 1 10/25/16 2:57 PM

RELAXATION & COMFORT

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www.MaedaRealEstate.com/en www.facebook.com/MaedaRealEstate www.the-entente.jp CONTENTS VOL. 54, ISSUE 2

43 FROM THE BOARD Realizing Potential Making the most of a growing membership Ray Proper

45 EVENTS ACCJ in pictures

46 ACCJ EVENT Ringing in 2017 The ACCJ Shinnenkai

47 ACCJ EVENT Trends in Infrastructure Finance Industry leader speaks about global investment 49 Maxine Cheyney

49 ACCJ EVENT Entrepreneurialism, Leadership, and Trust Jim Weisser offers inspiration to those starting or growing a business C Bryan Jones

51 KANSAI Boosting Tourism Creating a world-class Integrated Resort in Kansai Anthony Fensom, Akio “Arthur” Matsumoto, and Kansai External Affairs committee members

47 53 ACCJ LEADER Transparency and the Rule of Law Eric Sedlak 1 Former Japanese Ambassador to the United States Ichiro Fujisaki and ACCJ President Christopher J. LaFleur raise a toast at the 2017 ACCJ Shinnenkai in the Imperial Hotel on January 17.

2 Jim Weisser, general manager of BroadSoft Japan, speaks about entrepreneurship on January 19 in the ACCJ Boardroom.

3 Alternative Investment Subcommittee Co-Chair Frank Packard presents a Certificate of Appreciation to Peter D. Raymond, global leader, Capital Projects and Infrastructure at PwC at Tokyo American Club on January 17.

facebook.com/The.ACCJ twitter.com/AmChamJapan youtube.com/user/AmChamJapan linkedin.com/company/ american-chamber-of-commerce-in-japan

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hen I first joined the American we should concentrate more on most active and experienced members Chamber of Commerce in integrating members into our to welcome the 66 percent of attendees W Japan (ACCJ), the Chubu community and improving the value who were basically new faces and chapter had fewer than half the they get from their membership. potential future leaders. We are excited members that it has now. The Encouraging participation at events by these initial successes and look increase is great, but it isn’t common and on committees, and focusing forward to seeing what the YPF will knowledge and that is unfortunate. on membership value, will ensure accomplish in 2017. For one, it denies Chubu’s leaders that the members and our chapter An ongoing engagement challenge the credit they deserve for that can fully capture all the value from is that of our Japanese membership. achievement, but it also highlights these memberships, which will aid While there are certainly individual that this growth hasn’t resulted in in retention and recruiting. Happy exceptions, Japanese members tend substantial increases in engagement members are unbeatable marketing. to be less involved in events and rates among its members. One way we are already working committees than foreign members. There are certainly exceptions, but to increase engagement is the new This hurts us not only because we in general there is no corresponding Young Professionals Forum (YPF), lose their energy and experience, but increase in attendance at events and an idea recently adapted from Tokyo’s because we forgo opportunities and participation in committees despite excellent program. The YPF provides relevancy in the local community having more members. From the opportunities for younger members when those most fully situated in that ground level, it isn’t obvious that to thrive inside and outside of the community are not entirely engaged. the membership has changed so ACCJ by hosting events focused on I believe that focusing the attention significantly. This lack of engagement the needs and interests of workers and of our chapter’s leadership on the is a nice problem to have, but is still entrepreneurs under the age of 35. basic ideas of increasing engagement a problem. Our inaugural YPF networking event and improving membership value We enjoyed a generously long at the Hilton Nagoya and the following would be an excellent use of our period of growth in the chapter, YPF event were both tremendous time, and the right approach but to capitalize on that growth successes, bringing out many of our for 2017. n

THIS MONTH’S FEATURED VIDEO:

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With an all-new website, unprecedented advocacy efforts, and record-high membership levels, 2016 was a historic year for the ACCJ. We thank our members and supporters for an outstanding year, and share a visual tour of the journey in this video.

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CM_Holiday_FULL_American.indd 1 12/13/16 2:20 PM 1 Sarah Casanova, president and CEO of McDonald’s EVENTS Holdings Company (Japan), Ltd., with ACCJ Young Professionals Forum Co-Chair Adam Baylis at a Mentor Session on December 12.

2 Networking at the first-ever Young Professionals Forum Joint Chamber Year-End Gathering, an event co-hosted with the British Chamber of Commerce in Japan at Magritte with DaDa event space in Kita- Aoyama on December 15.

3 Young professionals from the British Chamber of Commerce in Japan joined ACCJ young professionals at the Joint Chamber Year-End Gathering at Magritte with DaDa on December 15. 1 4 Thomas Mayrhofer, co-chair of the ACCJ–Kansai Business Programs Committee, presents a Certificate of Appreciation to Jesper Koll, CEO of WisdomTree Japan, for his presentation ”Does Japan Have What It Takes to Be a Global Economic Powerhouse and Leader?” on December 5 at Eli Lilly Japan K.K. in Sannomiya, Kobe.

5 For its great success in producing the 2016 Kansai Women in Business Summit, the ACCJ–Kansai Women in Business Committee received the Outstanding Committee Award at the ACCJ– Kansai 5th Annual Award Ceremony on December 9 2 at the Hyatt Regency Osaka. (PHOTO: LIFE 14)

6 ACCJ Governor–Chubu Britt Creamer becomes Santa Claus, giving gifts to children who the Walkathon supports, at the Charity Christmas Luncheon at Shooters Sports Bar and Grill on December 10.

7 Getting the pinata ready at the Living in Chubu Committee's annual Meximas at Shooters Sports Bar and Grill on December 2.

3 4

UPCOMING EVENTS

Please visit www.accj.or.jp for a complete list of upcoming ACCJ events or check our weekly e-newsletter, The ACCJ Insider.

• FEBRUARY 14

An Evening with David Bowie: 5 Passion Investing in Fine Photographs

• FEBRUARY 23 Women in Business Committee Winter Mixer

facebook.com/The.ACCJ

twitter.com/AmChamJapan

youtube.com/user/AmChamJapan

linkedin.com/company/ american-chamber-of-commerce-in-japan 6 7 THE JOURNAL n FEBRUARY 2017 45 ACCJ EVENT

Ringing in 2017 The ACCJ Shinnenkai

he past 12 months have been an extraordinary period Ichiro Fujisaki, former Japanese Ambassador to the for the American Chamber of Commerce in Japan United States and current president of The America-Japan T (ACCJ), and the coming year looks to be even better. Society, Inc., shared an encouraging message. To usher in 2017, members of the ACCJ gathered at the Following the kagami-biraki—the ceremonial cracking Imperial Hotel on January 17 for the annual Shinnenkai. open of a sake barrel—an extensive buffet and free-flowing ACCJ–Tokyo Vice President Jonathan Kushner kicked wine set the stage for a wonderful evening of conversation off things with opening remarks; President Christopher and networking, the start of what promises to be another J. LaFleur shared a look back at 2016, and special guest remarkable year for the Chamber. n PHOTOS: RIEKO WHITFIELD

46 THE JOURNAL n FEBRUARY 2017 ACCJ EVENT

Trends in Infrastructure Finance Industry leader speaks about global investment

By Maxine Cheyney

he investment landscape is He highlighted the desire of the being continuously transformed administration of US President T by global developments Donald Trump to refocus investment and economic change. The back into the US, instead of investment topic was addressed by Peter D. capital and interest leaving the Raymond, global leader, Capital country. The way this will be done Projects and Infrastructure at is through tax incentives, public– PricewaterhouseCoopers (PwC), who private partnerships, and streamlining spoke to members of the American the regulatory process, which is Chamber of Commerce in Japan notoriously long and complex. (ACCJ) on January 17 at Tokyo American Club as part of a series of FUTURE INVESTMENT events hosted by the ACCJ Alternative Raymond also spoke on some of the Investments Subcommittee. Of the move away from brown- more prominent trends shaping the In his presentation, “Trends in field, he explained that green-field global economy and infrastructure Infrastructure Finance,” Raymond investment projects involve investment, such as social changes and discussed infrastructure capital, development risk and construction demographic shifts, which impact the investment opportunities, investors, risks. However, many are moving into kinds of infrastructure being built. and the priorities of policymakers. green-field investments. He noted an economic power shift, In particular, he sought to explain He highlighted a transaction in referring to Asia as “the rising star in themes that PwC has identified as which an infrastructure fund, which terms of economic power around the guiding infrastructure trends globally. had limited places to invest its capital, world, and this is particularly the case decided to buy laundromats and for infrastructure,” and also spoke CLEAR DIRECTION classify this as an infrastructure asset. about how the younger generation’s “The returns on investment in “It just shows you how creative people preference for a more urban infrastructure as an asset class have are getting as they seek to place their environment is driving infrastructure been higher than normal returns on capital to get the returns they are spending in these spaces. many other asset classes in the market,” looking for,” Raymond laughed. The Internet of Things was cited he said, and investors are increasing as a new source of disruption as their allocations to infrastructure CHANGING POLITICAL AIMS technology creates “a significant as a result. This is leading to higher While governments struggle to find increase in efficiency and effectiveness.” valuations and a divergence from ways to stimulate their economies— However, this means models that have traditional passive investment and are running out of monetary tools worked for the past 50 or 60 years no approaches for institutional investors. to do so—they are beginning to turn to longer operate in the same way, he said He named Australia and Canada as the new fiscal stimulus measures. Governments are looking at two countries that are leading the way It is hoped, Raymond said, that there “how to optimize their portfolio of and “getting invested in ways that are will be a move towards a combination limited capital to achieve the highest pretty innovative in the marketplace.” of infrastructure investment programs returns—both economic and social. Raymond highlighted a strong driven by governments, combined with Ultimately there has to be a move move away from the Organisation the available capital in the marketplace. from austerity measures to stimulate for Economic Co-operation and “There are a number of sectors the economy, and companies and Development community and brown- that need significant investment countries are starting to look towards field investments—where projects in the United States,” Raymond infrastructure. n with clear revenue streams that are explained, listing transportation already built can be bought into or infrastructure, clean water, energy, just updated—as ways investors are telecommunications, and security Maxine Cheyney is a staff writer diversifying. infrastructure. at The Journal.

THE JOURNAL n FEBRUARY 2017 47

ACCJ EVENT

Entrepreneurialism, Leadership, and Trust Jim Weisser offers inspiration to those starting or growing a business

By C Bryan Jones PHOTO: TOHRU OKAMURA im Weisser has a long history led to the genesis of PBXL KK, with the American Chamber which was originally a business unit Jof Commerce in Japan (ACCJ). within Weisser Consulting YK. And on January 19, at the ACCJ Weisser saw an opportunity after Speaker Event “Entrepreneurialism, visiting a client who had just installed Leadership, and Trust” in the ACCJ a private branch exchange (PBX) Boardroom, he told the story of how enterprise telephone system for he went from teaching English at ¥25 million. He thought, “This should Aeon to becoming general manager of be a Cloud service.” So, in 2006, PBXL BroadCloud Japan. was launched to meet this need. The event was inspirational for Growth was good through 2008, those considering starting their own and Weisser was elected to the ACCJ business in a country that can be Board of Governors and helped daunting for the non-native. do something and you feel like you establish the Internet Economy Task A third-generation chemical can do more than a 20-person team, Force. The following year, however, engineer, Weisser arrived in Japan either you’re crazy—always possible— was described by Weisser as “the worst in 1993 to chart a course that would or you’re in the wrong company. I was year we had ever been through.” He take him outside the family line. probably both.” had to fire people he personally liked After getting his feet wet teaching When the Enron Corporation went and mortgage his house to put money English, he started working in bankrupt in 2001, Weisser found into the company. 1996 at corporate Internet service himself unemployed and made the Weathering the storm paid off. In provider PSINet. decision to start his own company. 2012, the Cloud finally caught on in At roughly the same time, he joined “I can’t get a job. I’d better make one.” Japan, and PBXL was raising external the ACCJ, co-founded a committee on In 2003, Weisser Consulting YK money for growth when in 2015 it was e-commerce, and began to grow his was founded to do contingency-based acquired by BroadSoft. business acumen. telecom expense management. This The event closed with a moment of As he continued his journey, he is the moment that many of us reach reflection on Weisser’s two decades worked part time for three different as entrepreneurs, and the challenge of work with the ACCJ, where he startups in e-commerce, Internet is taking what we know, learning has served as a committee leader, incubation, and consulting. His most what we don’t, and finding the right governor, and vice president interesting title was Chief Technical path to grow. (2011–2014). “The exposure and Rainmaker. “The way that I ran the business the opportunity to meet other On a personal level, Weisser was was that I looked at each contract in businesspeople in a professional learning what he liked and didn’t like, rent volume—oh, that’s a ten-rent environment—that were not in my but wasn’t quite sure of the right fit. deal, that’s a five-rent deal—because company—was incredibly useful. He was looking for innovative, fast- rent was my biggest expense,” Weisser “It’s good to have feedback that’s not moving environments, a chance to explained. “That meant, probably, in your reporting line,” he continued. work with great people, and, in part that I underbid myself on a number “There are going to be people who because it was easier to explain to his of things. If someone is in Roppongi have more experience than you. I’ve father-in-law, stability. “So, I went to Hills and you’re going in based on your personally found probably all the Enron,” he said with a laugh. house rent, they’re like ‘Are you sure people I have considered mentors At Enron, he ran the broadband you’re okay with this number?’ But it through the ACCJ, though we trading business at the Japan office. worked out.” never had a formal mentor-mentee Going in, he was sure that he could be But, because Weisser was personally relationship or program. For me, being a hero, as he was the only one who had the bulk of the billing, the business involved and being active made me worked in telecom and the Internet in wasn’t scalable. To grow, he would the leader I am today and gave me an Japan. This led to another realization: have to hire a large number of people opportunity to see how different styles “If you’re hired into a company to go at significant risk. This realization of leadership can be effective.”n

THE JOURNAL n FEBRUARY 2017 49 Untitled-1 1 1/26/17 10:27 AM KANSAI

Boosting Tourism Creating a world-class Integrated Resort in Kansai

By Anthony Fensom, Akio “Arthur” Matsumoto, and Kansai External Affairs committee members

saka has emerged as an early favorite to host one of Japan’s IRs must compete with existing IR destinations Japan’s first Integrated Resorts (IRs) following recent such as Singapore and Macau. A favorable legal and O passage by the Diet of what lawmakers call the “IR Bill.” regulatory framework must be created in the upcoming While supporting this development, the American Chamber regulatory implementation stage which will allow for the of Commerce in Japan (ACCJ) urges the establishment creation of world-class IRs to be built in Japan. of the necessary frameworks to ensure IRs become a To maximize the economic benefits and manage vibrant contributor to the Japanese economy, that the the social impacts, the ACCJ has made a number of implementation of these laws will allow the creation of recommendations concerning the legal framework for world-class IRs in Japan, while managing issues such as IRs, some of which are: organized crime prevention and problem gambling. In Japan, IR has become the term used to describe not • Regulatory oversight of Japan’s casino industry should only a casino but a resort development comprising hotels, be placed in a Casino Regulatory Board, with day-to-day entertainment, shopping, gourmet restaurants, cultural operations managed by a Casino Regulatory Committee elements, and other tourist attractions. • All companies involved in Japanese gaming and major According to estimates by the Kansai Association of suppliers should be properly and thoroughly investigated Corporate Executives, an IR in the Kansai region will before any licenses are granted result in investments of up to ¥800 billion, generate annual • The qualification process should include focus on the revenues of up to ¥600 billion and create nearly 100,000 jobs. applicant’s ability to meet national objectives such as Research conducted by Oxford Economics, one of the world’s attracting tourists and generating tax revenue foremost independent global advisory firms, for the ACCJ highlighted potential GDP benefits amounting to ¥950 billion In view of the passage of the IR Bill and the upcoming (0.19 percent of national GDP) from an IR in Osaka. implementation stage, the ACCJ is now in the process of Osaka’s Yumeshima District is being eyed as a possible updating its viewpoint for IR in Japan. location for an IR, given the area has more than 80 hectares By implementing the appropriate framework, it will be (about 80,000 square meters) of municipal land available. possible to ensure the successful creation of a new gaming There are other location candidates with smaller land areas industry for Japan, which will further boost the rapidly elsewhere in Osaka and Wakayama Prefecture. growing tourism industry. The development of an IR will require numerous Osaka had more than 9.4 million foreign tourists in 2016, facilitating changes, such as 24-hour operation of airports, an increase of 31 percent over 2015, and triple the number buses, and railways—similar to the gambling mecca of for 2013. For Osaka, hosting the nation’s first IR will give the Las Vegas, Nev. Such investment will also benefit other entire Kansai region’s tourism industry a major injection of businesses and parts of the Kansai region, triggering investment and international visitors in line with the national an increase in meetings, incentives, conferences, and drive toward 40 million annual inbound tourists by 2020. exhibitions—or MICE—tourism. With foreign visitors increasingly venturing into areas of Kansai outside Kyoto and Osaka, and a world-class IR resort in Osaka becoming reality, the ACCJ–Kansai External Affairs IMAGE SUPPLIED BY KANSAI ASSOCIATION OF CORPORATE EXECUTIVES. RELEASED JANUARY 2015. Committee has been engaged with the Union of Kansai Governments for the creation of a destination marketing organization (DMO) to establish and market the Kansai brand overseas. n

Anthony Fensom is a communications consultant and writer with experience in Australian and Asian financial and media industries, including six years in Tokyo. Akio “Arthur” Matsumoto is chair of the ACCJ–Kansai External Affairs Committee, and president and CEO of LS7 Corporation.

THE JOURNAL n FEBRUARY 2017 51 The finest-quality Kobe beef, coming to Roppongi March 1, 2017!

Kobe Beef Steak Beef Steak Kawamura, Roppongi Come and experience the melt-in-your-mouth B1F Urban Style Roppongi tenderness and sweet flavor that is unique to Kobe beef. Mikawadai, 4-2-35 Roppongi, Minato-ku, Tokyo Popular teppanyaki restaurant Beef Steak Kawamura will soon be opening in Roppongi. The main restaurant in Kobe was awarded Tel: 03-5775-6633 “Highly Rated” and “Outstanding” for its Kobe beef. This is the Open: Monday to Sunday second store to open in Tokyo, after Ginza. (11:30–14:00 / 17:00–22:00) Access: Exit 4B of Roppongi Treat someone special or celebrate a special Station on the Tokyo Metro occasion with our private dining option. Hibiya Line. ACCJ LEADER

Transparency and the Rule of Law

onsistent application of principles International Airport. The US and of transparency are central to the Japanese governments hope that their C success of American Chamber of engineering firms and equipment Commerce in Japan (ACCJ) member manufacturers will work together on companies in Japan and elsewhere in infrastructure projects outside Japan. the region. Taking into account the standards Transparency is a key element By Eric Sedlak of Jones Day, of its two largest shareholders, in late of the rule of law. Transparency co-chair of the ACCJ External Affairs 2016, the Asian Development Bank distinguishes rule of law from rule Advisory Council (ADB) published a User’s Guide to by law. When I worked in Southeast the Procurement of Goods, together Asia, some businesspeople joked that Putting this into the ACCJ context, with two types of Standard Bidding they violated three laws an hour—and the ACCJ has long advocated for Documents, in order to regularize didn’t even know what two of them full access to Japanese government- the bidding procedures for goods and were. That is ruleby law. Someone in sponsored shingikai and other types of services procured by project sponsors the government makes the rules and— study groups where important policy borrowing from the ADB. Requiring when an economic actor inadvertently positions are formed and legal and that borrowers follow the procedures steps out of line—another official lets regulatory changes are developed by will reduce the likelihood that the you know about the rule, sometimes all interested stakeholders, including procurement process will be affected offering a non-compliant way out. foreign-invested member companies. by favoritism or unlawful payments. In a transparent system, the The ACCJ has also advocated that Similarly, the Trans-Pacific government conducts business so that Japan consistently follow international Partnership (TPP) agreement would individuals and companies have access best practices in its public comment require that its members adhere to to clear information about rules, process. In a transparent process, high standards of transparency, and data, and process, with safeguards relevant stakeholders—including adopt criminal laws that prohibit for privacy and security. It is easy for foreign invested companies in and sanction both the payment to companies to understand how the Japan—have access to the policy and and receipt by officials of an “undue system works and to compete fairly. regulatory formulation process on the advantage” in the course of exercising Transparency includes fair process same basis as Japanese companies, their discretionary functions. or due process, equal access to and regulators must consider and take TPP would also limit the ability information and decision makers, account of their views and interests. of governmental entities to favor equal opportunity for similarly Japan has an uneven history in wholly locally owned entities over situated people and companies, and an bidding and procurement, but the foreign-invested entities in relation to absence of corruption. trend is positive. Transparency government procurement. Corruption includes not only what and antitrust enforcement have While US ratification of the TPP is Americans think of as violations of led to procurement systems that on hold, Asia–Pacific governments are the Foreign Corrupt Practices Act provide access on a level playing committing to ever higher standards (e.g. an under-the-table payment to field in areas such as healthcare, of transparency in their bilateral and an official deciding which project while in infrastructure, 2016 saw multilateral trade and investment sponsors are prequalified), but also an experienced foreign operator agreements. The rule of law will political favoritism or mutual back- team with a Japanese company improve the competitiveness of scratching. It may be that no money in the privatization of the Kansai compliant market participants. n changes hands, at least as a quid pro quo, but corruption can be evident when no foreign company ever wins, Eric Sedlak is ACCJ special advisor and co-chair of the External Affairs Advisory or when it seems several competitors Council, and a cross-border financial and corporate transactions lawyer with more than take turns winning bids for similar 20 years of experience practicing in Japan. The views and opinions set forth herein are RFPs to the exclusion of other the personal views or opinions of the author; they do not necessarily reflect views or credible companies. opinions of the law firm with which he is associated.

THE JOURNAL n FEBRUARY 2017 53 The ACCJ thanks its PRESIDENT Christopher J. LaFleur Corporate Sustaining McLarty Associates Member companies CHAIRMAN Jay Ponazecki Their extensive participation provides a cornerstone in the chamber’s efforts to promote a better business climate in Japan. TREASURER Nancy Ngou Ernst & Young Advisory Co., Ltd. Abbott Laboratories/ IMS Japan Abbott Japan Co., Ltd. VICE PRESIDENTS Johnson & Johnson Adobe Systems Co., Ltd. Family of Companies Andrew J. Conrad Aflac International, Inc. Amy Jackson Aflac KPMG Pharmaceutical Research and Manufacturers of America (PhRMA) AIG Companies in Japan Kreab Peter M. Jennings Dow Chemical Japan Ltd. Marie Kissel Abbott Amazon Japan G.K. Lenovo Japan Jonathan Kushner Kreab Amway Japan G.K. Lockheed Martin Ray Proper (Chubu) H&R Group K.K. Asia Strategy: Business Intelligence, MasterCard Japan K.K. Dr. Stephen A.Zurcher (Kansai) Kansai Gaidai University Public Policy, Advocacy McDonald's Company (Japan), Ltd. ACCJ GOVERNORS Bayer Yakuhin, Ltd. McKinsey & Company, Inc. Japan Eriko Asai GE Japan Becton Dickinson Japan Alison Sayre Birch J.P. Morgan Securities Japan Co., Ltd. Merrill Lynch Japan Securities Co., Ltd. Bloomberg L.P. Tim Brett Coca-Cola (Japan) Co., Ltd. MetLife Brett C. Gerry Boeing Japan K.K. Boeing Japan K.K. Microsoft Japan Co., Ltd. Rebecca K. Green ERM Japan Ltd. Broadsoft Japan A. Barry Hirschfeld, Jr. AIP Healthcare Japan GK Mizuho Financial Group Tad Johnson Pratt & Whitney Aftermarket Japan KK Catalyst Mondelez Japan Ltd. Patrik Jonsson (Kansai) Eli Lilly Japan K.K. Caterpillar Junichi Maruyama Citigroup Japan Holdings G.K. Monex Group, Inc. CenturyLink Japan Ltd. Arthur M. Mitchell White & Case LLP Morgan Lewis Sachin N. Shah MetLife Insurance K.K. Chevron International Gas Inc. Japan Branch Morgan Stanley Japan Ryann Thomas PwC Tax Japan Holdings Co., Ltd. Megumi Tsukamoto Caterpillar Japan Ltd. Cisco Systems G.K. Michel Weenick (Chubu) Hilton Worldwide Morrison & Foerster, Ito & Mitomi Citigroup MSD K.K. PRESIDENTS EMERITI Coca-Cola (Japan) Co., Ltd. Nanzan Gakuen Debbie Howard (2004–2005) Colliers International (Nanzan School Corporation) Charles D. Lake II (2006–2007)

Cummins Japan Ltd. Northrop Grumman Japan Allan D. Smith (2008) Thomas W. Whitson (2009–2010) Deloitte Touche Tohmatsu LLC NYU SPS Tokyo Center Michael J. Alfant (2011–2012) Delta Air Lines, Inc. Oak Lawn Marketing, Inc. Jay Ponazecki (2014–2015)

Designit Tokyo K.K. Procter & Gamble Japan K.K. CHAIRMAN EMERITUS Deutsche Bank Group Prudential Financial, Inc. Kumi Sato Dow Chemical Japan Ltd. PwC Japan Cosmo PR

Eli Lilly Japan K.K. QUALCOMM JAPAN Inc. SPECIAL ADVISOR en world Japan Randstad K.K. Eric Sedlak Jones Day EY Japan Robert Walters Japan K.K.

Federal Express Corporation Squire Patton Boggs ACCJ EXECUTIVE STAFF Laura Younger Executive Director Freshfields Bruckhaus State Street Deringer Tokyo Teijin Limited GE Japan Inc. Teva Pharmaceutical Gilead Sciences K.K. Industries Ltd. Information as of January 23, 2017

Goldman Sachs Japan Co., Ltd. Thermo Fisher Scientific Google G.K. Thomson Reuters The American Chamber of Commerce in Japan Markets K.K. GR Japan K.K. Masonic 39 MT Bldg. 10F, 2-4-5 Azabudai Toys”R”Us, Japan H&R Consultants K.K. Minato-ku, Tokyo, Japan 106-0041 United Airlines, Inc. Tel: 03-3433-5381 n Fax: 03-3433-8454 Heidrick & Struggles Japan Godo Kaisha Visa Worldwide (Japan) Co., Ltd. www.accj.or.jp

Hilton Worldwide The Walt Disney Company (Japan) Ltd. The ACCJ is an independent membership organization not affiliated with any government The Howard Hughes Corporation White & Case LLP or other chamber of commerce. The ACCJ is a member of the Asia-Pacific Council of American Chambers and values its relationships with Japanese, American and other IBM Japan, Ltd. Zimmer Biomet G.K. nations’ business organizations.

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