Message from Ambassadors

New Opportunities in a
Global-Facing Britain
Paul Madden CMG
British Ambassador to Japan
Paul Madden CMG has been British Ambassador to Japan since January
2017. He was previously ambassador to Australia and to Singapore. He has
worked closely with business for many years, including during his time asManaging Director at UK Trade and Investment in London. He has an MA in
Economic Geography from Cambridge University and an MBA from Durham
University.

I am grateful to JOI for the opportunity to contribute tothis excellent magazine. I am delighted to be able toaddress investors in Japan, to explain some of the benefitsof investing in the UK; and to introduce some exciting
potential opportunities.
The new government that took office following the British
general election in June remains committed to open,
outward-looking, business friendly policies. The UK willremain a very attractive location for Japanese investment.
Japanese investment in the UK has been a big successstory over the last 30 years or so. Japan’s excellent andhigh quality products and technology; its skilled andmotivated workforce; and its unique corporate culture
have been an excellent match for the UK. This strong
commercial relationship has brought benefits to bothcountries:• In Automotive, Japanese companies account for astaggering 45% of all cars made in the UK. Toyota,
Honda and Nissan have led the way; Toyota recently
chose to invest a further £240 million in new plant attheir Derby factory.
• In Rail, Hitachi chose the UK as the location for theirglobal rail Headquarters, in addition to their
manufacturing plant in the North East. High-Speed 2,
the UK’s £56 billion flagship rail infrastructure project,
will create exciting opportunities across the whole railsupply chain.
• In Finance, large banks and trading houses such as
Nomura and Mizuho are already well-established in16

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the UK, and there are new business opportunities on
the horizon with FinTech as well.
• As the UK economy continues to evolve into newfields such as Artificial Intelligence, Robotics andautomisation, I think the strength of the UK’s capability
will bring more attractive opportunities in these fields
for companies of all sizes. Softbank, KDDI and Fujitsu
have already seen this potential, and made large
investments into the British Technology sector.
Japanese investors are, understandably, closely following
the UK’s progress towards Brexit, and are keen tounderstand its impact. With detailed negotiations starting
shortly after the British election, there is a two year
window before negotiations conclude by March 2019.
As Ambassador I have spent a lot of time talking toJapanese companies both here and back in the UK, toensure that we explain UK Government thinking, and that
we communicate the views of Japanese investors back toLondon. Different companies have different concerns
depending on their sector and the nature of their business.
As we move through the negotiating process it will beimportant to take into account the views of Japanesebusiness. I would encourage any Japanese companies
with very specific questions or concerns about Brexit tofeel free to contact my team in the Embassy in Tokyo or
the Consulate General in Osaka.
Our aim is to continue to ensure that companies based in
the UK have the best possible access to the Europeanmarket. We are confident that Britain will remain a very
attractive base for business. Its fundamental strengths willcontinue to be important. The UK has been the fastest
growing economy in the G7 in recent years, with over 1
million new companies established since 2010. Investors
welcome our favourable tax rates; business-friendly
culture; and strong regulatory environment. With 4 of theworlds’ top 10 Universities, the UK has an exceptional
research base, and the Department for International Tradecan help Japanese investors looking to take advantage of
this, should they chose to invest in the UK.
These are some of the reasons why Britain has attracted
more Foreign Direct Investment than any other European
country in recent times. We believe that the UK willcontinue to attract top international talent, as well as
capital investment and we are certainly keen to support
Japanese investors, as they bring their innovation toBritish shores. Japanese confidence in the UK remains
strong with recent examples of investment including:• Softbank’s recent $32 billion acquisition of UK company
Arm Holdings, immediately after the Brexit vote.
• Nissan and Toyota reaffirming their commitment tothe UK, with recent investment announcements.

There are currently a range of opportunities for businesses
looking to invest in the UK. Specific ones include: HighSpeed 2, a £56 billion rail infrastructure project that will
open up new opportunities in Birmingham and the Northof England, due to improved access. Meanwhile, thegrowing Technology, Automotive, Chemicals, Fintechand Life Sciences industries in Britain mean that investors
have many opportunities to choose from. In some sectors,
investors will benefit from the competitiveness of theBritish Pound, offering cost savings.
There is also investment potential across industry supply
chains, particularly around ‘clusters’ of businesses incertain parts of the UK. One example of this is theSunderland International Advanced Manufacturing Park,
which supports the Automobile industry, and which
Nissan is already heavily involved in. The park aims tocreate 5,200 new jobs and attract over £300 million ofprivate sector investment into the region.
I hope this gives readers a taste of the potential in theBritish economy, and the opportunities that lie ahead forsmart investors, as we move towards a truly innovative,
global Britain.

The Department of International Trade (DIT)The Department of International Trade (DIT) can assist Japanese investors as they seek toopen expand their businesses in the UK; or indeed, expand existing operations. We help in 3
stages of the investor journey:(1) Preparation and Research:• Market Research• Both macro-economic and sector-specific analysis(2) Setting up in the UK:• Finding commercial or residential properties, schools, etc.
• Tax and regulatory advice• VISA assistance(3) Helping business to grow:• Advising on regulatory issues: liaising with regional councils and government• Helping companies upskill their workforce, or source local talent• Introducing local Research & Development partners in the UK
If you are interested in investing in the UK for the first time or you are already investing in theUK we would very happy to help. Please do contact us at investinuk.jp@fco.gov.uk

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