For thirty years, Japan remained on the sidelines of global finance. After the crisis of the 1990s, the Japanese economy faced stagnation, deflation, and debt. Top global investors chose to work in Hong Kong and Singapore, as Tokyo was difficult for foreign companies due to language, tax, and administrative barriers.
Now, however, the situation is changing. Hong Kong is losing ground due to political and economic difficulties, while the Japanese government has declared Tokyo a special economic zone for financial companies, simplified licensing, and reduced taxes. These new reforms are aimed at attracting international capital and significantly expanding the country's financial sector.
Western and Asian financial corporations have started reopening offices in Japan. However, major obstacles remain: a shortage of qualified personnel, high taxes, and language barriers. Only 12,000 foreigners work in Japan's financial sector, far less than in Singapore. Complex corporate culture is also an issue.
Nevertheless, the Japanese market is attracting investors with many undervalued companies and a stable legal system. If the country overcomes these challenges and draws international specialists, Tokyo may once again become Asia's leading financial center.
