F R I D A Y ,A P R I L

2 9 ,SPECIAL REPORT

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INSIDE: 11-PAGE SPONSORED SECTION IN COOPERATION WITH DISCOVERY REPORTS

JAPAN BUSINESS REPORTTOURISM REVIVALWELCOMING THE WORLD BACK IN
Tourism, a vital cog in Japan’s economy, was hit hard but as borders open up, new initiatives are beingrolled out to boost visitor numbers beyond pre-pandemic levels, writes Anna Cummins
In 2022, Japan’s famous cherry
blossoms were again forecast to
be early with the flowers inTokyo blooming three days
earlier than usual.
The sakura trees haveflowered increasingly early inrecent decades, a shift thatscientists attribute to climatechange. These fragile blossoms
have long been an important
symbol of life, death and rebirthin Japanese culture, making theirearly arrival amid a global healthemergency and heightening
environmental discord
particularly poignant.
Tourism has been steadily
growing in recent years to
become a vital pillar of Japan’s
economy, thanks to the country’s
rich culture and increasing
popularity among tourists from
East Asia – particularly frommainland China, Taiwan andSouth Korea.
The Japanese government
had set aspirational targets todouble annual overseas tourism
from 19.7 million visitors in 2015
to 40 million in 2020, focusing on
directing visitors to lesspopulous regions to harness theregenerative power of the tourist
dollar.
In 2019, 31.9 million foreign
visitors entered Japan, setting arecord for the seventh
consecutive year. Overseas
tourists spent a record US$43.6
billion in 2019, a rise of 6.5 percent from 2018.
However, entry restrictions
due to the pandemic saw thenumber of foreign visitors toJapan dropping to 245,900 in
2021, the lowest since 1964 whencomparable data became
available. This was mainly due tothe country enforcing foreign
entry bans amid the ongoingcoronavirus pandemic.
On April 10, Japan raised its
daily limit on arrivals fromoverseas to around 10,000, up
from the current 7,000 for

Japanese nationals, foreign
residents and new non-tourist
arrivals, including foreign
students. Foreign tourists are stillbarred from entry since lateNovember 2021 to limit the
inflow of the highly transmissible
Omicron variant.
Now, as Japan moves towards
opening up for tourists, asignificant part of the country’s
long-term economic recovery
hinges on rapidly bringing visitor
numbers back to pre-pandemic
levels.
For the Kyoto City Tourism
Association, attracting visitors istypically not a tough job: the city
overflows with 17 Unesco World
Heritage Sites, exquisite
restaurants and iconic temples.
However, the city had been
struggling with issues related toovertourism during the past
decade.
The chaos caused by the virus
has thrown the importance ofthe tourist dollar into sharp relief.
Between 2016 and 2019, tourist
spending in Kyoto exceeded 1
trillion yen (HK$61 billion)
annually, and there is aconcerted push from the city toregain these levels in the form of
the Kyoto Tourism Promotion
Plan 2025, which lays out a roadmap for sustainable andharmonious tourism growththrough to 2030.
Impressive hotels are lining
up to welcome domestic andoverseas visitors to Kyoto. In
2021, Hotel Tou Nishinotoin
Kyoto by Withceed, and Fauchon
Hotel Kyoto – Fauchon
Hospitality’s first property
outside France – opened theirdoors. Shangri-La Kyoto is on
track to open in 2024.
When Hotel The Mitsui Kyoto
opened in November 2020, it
became the first luxury hotel inthe city centre with a natural hot
spring. The newly built hotel,
which fuses elements oftraditional and contemporary

Japan’s celebrated cuisine is a significant tourist draw. Photo: JNTO

The early arrival of the cherry blossom season to Japan struck an optimistic chord as the country slowly reopens to foreign travellers. Photo: AP PhotoJapanese culture, was designed byan award-winning team including
Hong Kong’s acclaimed André Fu,
who created the serene interiors
for the 161 guest rooms andsuites, and lobby.
Hotel The Mitsui Kyoto’s
general manager, Manabu Kusui,explained that the city’s storied
history is reflected in the hotel’s
design.
“The restored 300-year-old
Kajiimiya Gate, which has along-standing connection to the

Mitsui family, is the entrance
which welcomes guests today
and plays an important role inthe storytelling of our hotel andits history,” said Kusui. “We arealso thankful that the design is
globally appreciated throughAndré Fu’s remarkable work, andaccordingly, the hotel has beenrecognised all over the world.”
Kyoto may be a poster childfor Japanese tourism, but thecountry is keen to encourage
visitors to look farther afield to

The Mitsui Kyoto hotel, awaiting foreign guests. Photo: Handout

enjoy the essence of authentic
Japan.
Ahead of the postponed
Tokyo 2020 Olympic andParalympic Games that finally
took place in 2021, the Japan
National Tourism Organisation(JNTO) launched its Insider
Guide to Japan, a campaign
highlighting the country’s
lesser-known traditions andnatural wonders.
The new guide splits
experiences into seven areas– including nature, outdoors,
tradition and art – to appeal to abroad range of interests.
Art lovers, for example,
will be inspired by descriptionsof the 41-acre (16.5-hectare)creatively landscaped garden at
the Adachi Museum of Art, voted
the best Japanese garden in theworld, or may be tempted tobook a stay at James Turrell’sHouse of Light in Niigata, which
is a work of art, guest houseand meditation retreat rolled
into one.
Those with a passion for foodand drink can plan an overnight
trip into the green tea heartlandsof Shizuoka Prefecture, enjoy atour of Japan’s wine country bytaxi, or explore the beautiful
tradition of ama divers along
Japan’s coasts.

Anyone keen to get out of themetropolitan areas may want tounwind with a day of shinrinyoku (“forest bathing”) in
Agematsu. And those with ataste for the finer things should
consider staying aboard one ofJapan’s fleet of luxury trains,complete with private living
quarters, bathtubs and artisanal
cuisine, which cruise throughthe country’s most scenic areas.
Following the launch of
Insider Guide in April 2021, Seino
Satoshi, president of the JNTO,
spoke of his hope that thecountry bounces back.
“Over the past five years,
Japan has become one of theworld’s leading travel
destinations, with annual
visitors growing to over 30
million before the pandemic,”
Satoshi said. “There areabundant tourism opportunities
in provincial areas that are notyet known to the world.
“Throughout this campaign,
we will showcase many
undiscovered charms of Japan,
reflecting and responding tofuture tourism trends.”
Japan is an archipelago ofsome 6,852 islands stretching
3,000km, and there isundoubtedly plenty of adventure
to be had exploring them.

Breathtaking scenery andwildlife, rich cultural heritage
and a reputation for being
remarkably safe also make Japana great place for off-the-beaten
track excursions.
And, in the wake ofheightened global interest in
hygiene, the country’s reputation
for being exceptionally clean has
come into its own. One survey
conducted by the Development
Bank of Japan and Japan Travel
Bureau Foundation in 2020
found that Japan was the mostdesirable future destination for
visitors from 12 countries andregions globally.
Indeed, Japan has a history ofresilience. The first time thenation held the Olympic Games,in 1964, it was seen as a turning
point for a country that had justemerged from the devastatingconsequences of World War II.
After Japan powered throughto host the 2020 Olympic andParalympic Games, manyobservers referenced the nation’s
collective konjo – roughly
translated as “grit” or “fighting
spirit” – in its dogged
determination to make the bestof a difficult situation.
Economically bruised but far
from beaten, Japan is waiting towelcome back the world.

earthquake. This added to thestrain that exporters were facingwith a disrupted logistics chain
and decreased competitivenessin the global market.
Hongkongers are returning
to the Japanese property
market, taking advantage of a
weakening yen.
“Inquiries for Japanese
homes from Hongkongers have

surged by up to 40 per cent thismonth,” said Anvy Cheung, chief
executive of Sakura Global, acompany that specialises inJapanese property. “In the past
two years, most of them juststayed on the sidelines, adopting
a wait-and-see approach [due tothe pandemic].”
Most homebuyers are looking
for property in Japan forinvestment or for a second
home, with typical budgets
ranging from HK$1.5 million(US$192,000) to HK$2 million,
she added.
Prime Minister Fumio
Kishida’s administration,
meanwhile, continues to defend
the Bank of Japan’s ultra-easy
policy as a necessary support toa still-fragile economic recovery.

CHANGING VALUES

Lower yen is a mixed blessing, withforeign and domestic opportunities
Lisa CamOn April 19, the Japanese yen fell
to 128.80 against the US dollar,
its lowest level since 2002. The
currency has lost 12 per centagainst the dollar since January.
A weaker yen has long been
lauded as a positive for Japan’s
economy, enabling blue-chip
exporters such as car
manufacturers, but that narrativeis increasingly in question.
This time, the yen’s recent
plunge provokes the impact ofrising commodity prices, hittingsome business and household
finances much harder than everbefore.
The significant difference thistime is the effect of the country’s
energy policy.

With most of its nuclear
power plants offline since the
Fukushima disaster of 2011,
Japan has imported about 90 per
cent of its primary energy
requirements from overseas,with nearly all fossil fuels
shipped from long distances.
The surge in global energy
prices, already in effect before
the Russian invasion of Ukraine,
has hurt the economy andrevealed the cracks in Japan’s
energy strategy.
Now the weaker currency,
coupled with surging crude andother commodity costs, has
become even more damaging
for smaller, domestic
manufacturers.
Taking comparative rates ofinflation into account, the yen
has halved in value against the
dollar since 1995, taking it backto levels not seen since the early
1970s. However, a 2022 dollar is
not the same as a 1992 dollar interms of buying power.
Consumer prices in the US
have almost doubled in the
30-year period, whereas
Japanese consumer prices haveremained more steady.
In the short term, yen
weakness leads to higher energy
prices, but at the same time it
incentivises change.
As fossil fuel prices rise, themore competitive thealternatives become.
The two obvious contenders
are nuclear power andrenewable energy such as
sunlight, wind, rain, tides, waves
and geothermal heat.
Before the disaster of 2011,
nuclear energy had accounted
for almost 30 per cent of Japan’s

total electricity production.
There were plans to increase thisto 40 per cent by 2017 and 50 per
cent by 2030. In a 180-degree
turn from its 2012 pledge toabandon nuclear power by 2030
after the Fukushima incident,
two reactors restarted in Augustand October 2015, with a further
eight having restarted since.
Sixteen reactors are currently inthe process of restart approval.
Another unintended benefit
for the lower yen is that it will nolonger have the designation as asafe haven currency, whichsounds like a positive factor but
has, in fact, led to undesiredconsequences.
In 2011, the yen-to-dollar
exchange rate spiked to around78 to the US dollar, even though
the Japanese economy had justbeen crippled by the Fukushima

The Japanese yen has fallen to its lowest value against the US dollar since 2002. Photo: iStock/Getty

Friday, April 29, 2022

JAPAN BUSINESS REPORTOPHTECS EYES SIMPLIFICATION
OF CONTACT LENS CARE WITHINNOVATIVE PRODUCTS

C

onsumers turn to contact lenses
for their ready availability, varietyof low-cost options, ease of use
and the quality-of-life
improvement they bring.
However, improper handling may negate
the benefits and pose health risks such asbacterial keratitis and corneal ulcers.
Focusing on eye health and safety,
Japanese firm Ophtecs developed
top-class contact lens care (CLC) products
to simplify wear and care for users.
Ophtecs is the company behind someof the most innovative CLC products– such as the pioneering povidone iodine
disinfecting systems it developed in 2001.

It operates a state-of-the-art research anddevelopment facility to continuously raise
the standards of eye care.
Working hand in hand with
ophthalmologists and end users, thecompany gains valuable insights that it
incorporates into product development.
“When Ophtecs was established in
1981, the goal was to provide the best
CLC solutions for the Japanese market.
Our corporate culture was to quickly
adapt and develop unique products tomeet market needs,” says CEO andpresident Joe Yoneda.
Ophtecs is the only contact lens caresolution maker to use povidone iodine forits products. Maximising the wide
antibacterial spectrum and safety profile
of povidone iodine, Ophtecs developed
cleadew, a high-end povidone-iodinebased advanced disinfecting system forcontact lenses. Users of speciality contact
lens and eye professionals choose
cleadew for its strong disinfection efficacy
against bacteria, fungi and viruses.
With functional and cosmetic contact
lens use on the rise in Asia, Ophtecs aims
to expand the reach of its products in theregion. The company is eyeing mainland
China, South Korea and Taiwan, and is
working with distributors to learn aboutmarket specifics.

Joe Yoneda, CEO and president“In the future, we want to further
broaden our reach to offer products for
speciality contact lenses. We also want to
go to more Southeast Asian countries,
identify their needs and understand how
we can address them,” Yoneda says.

ASSET MANAGEMENT ONE CREATES SUSTAINABLE
FUTURE WITH POWER OF INVESTMENT
The dream of a greener planet is getting apush from Asia’s largest asset
management company. With more than
US$500 billion in assets undermanagement, Asset Management One(AM-One) is pioneering the use ofenvironmental, social and governance(ESG) standards as criteria in certain areasof its investing chain. This commitment isreflected in its highly successful efforts,
which include its impact investing in Japan.
“The environment we live in is aprecondition for all future economic
progress. As a company that holds theassets of many people, we can dosomething to help the world,” says
Minori Komatsu, head of AssetManagement One’s corporate
sustainability office.
A merger between DIAM, Mizuho
Asset Management, Shinko AssetManagement and the asset managementarm of Mizuho Trust & Banking, AM-One
offers a broad range of investment
services to institutional and individual
investors worldwide. The company is oneof the founders of the Net Zero AssetManagers (NZAM) initiative and is the
only Asian member of NZAM’s advisorygroup responsible for steering theorganisation toward achieving net zero
greenhouse gas emissions before 2050.
AM-One’s investments comply with
Article 9 of the Sustainable Finance

Disclosure Regulation, a standard test for
the adherence of funds to sustainableobjectives in the Japanese equity field.
Meanwhile, the company’s ESG investing
utilises its own materiality map, ameasure of investee companies’
application of ESG concepts guided by
the double criteria of sustainable andfinancial materiality.
As a leading Japanese asset
management company in the ESG field,
AM-One welcomes like-mindedorganisations and government bodies inmaking a global impact on sustainability.
“Words are not enough, so we haveto take action,” Komatsu says. “In oursimple and honest way, we’re taking alevel of analysis andyears of progress to focus
verification capabilities
on technology researchfrom repeating
and development. It
simulation technology forpromotes open
reactors and mixers.
innovation, developing
SATAKEequipment in close
spearheaded the firstcontact with clients.
technology in the world“The aim is tothat utilises verticalcontinue developing
reciprocating mixing
technology and supplying
rather than conventional
products,” says Nishioka
rotating mixing, allowing
Mitsutoshi, president.
Nishioka Mitsutoshi,
animal cells to be“We want to continue
president
cultured gently. Whilecontributing to global
these mixers are used as
innovation, supporting thestandard testing equipment by advanced
environment and advancing humanJapanese research laboratories andcivilisation.”
venture companies, SATAKE plans to
Having also a large market share formarket them to biopharmaceutical,
wind tunnels used in car environment
regenerative medicine and venture
simulations in China, the company sees acompanies worldwide.
growing interest for these products. To
With sustainable development goals
keep up with demand, SATAKE has
in mind, SATAKE envisions its next 100
manufacturing and sales offices in

HYSIA BUILDS SYNERGIES AMIDBORDERLESS PUBLIC HEALTH THREATS
Growing resilience against global
pandemics requires a borderless approach
to infectious disease control, sanitationand quality management. HYSIA, Japan’s
expert in infectious control consulting andhygiene services, is pioneering an
Asia-wide network of dedicatedprofessional companies in
its field.
“Our industry tends to be domestic
not just in Japan but even in America or
Europe,” says Taro Kanazawa, managing
director.
“Because the world is much moreconnected than five years ago, we must be
more proactive and open-minded infighting borderless threats such as
infectious diseases and productcontamination.”
HYSIA has built up a network ofindustry experts in Japan, Singapore,
Taiwan and Australia, where it provides
comprehensive hygiene management
solutions, from consulting, training andaudits to specialised disinfection, microbial
cleaning and pest management services.

Taro Kanazawa,
managing director
Its international team of experts shares thebest practices from different countries andmakes sure that clients meet the global
standard in creating a hygienic
environment.
“We cover the 360 degrees of thequality management process,” Kanazawa
says. “We emphasise on-site activities– from research and analysis to training
and team building – in order to identify thecritical control points and provide tools tomanage them.” Such comprehensive
services have proven valuable in thepharmaceutical and medical devices,semiconductors, food and beverage,
hospitality, and consumer goods
industries. Considering the severity of
Covid-19, HYSIA has created afree-to-access online training programmethat gives companies and individuals theright knowledge about fighting viruses.
HYSIA is expanding its service
network across Southeast Asia, India andAustralia. Aiming to build synergies inaddressing borderless issues such as
public health, environmental health andfood safety, it welcomes investors andpartnerships with research institutes,
manufacturers and distributors of
disinfection and environmental testing
devices, and training service providers
towards shoring up local resilience toglobal threats. “We want to be the leading
environmental health solutions provider in
Asia and are always looking for strategic
partners who resonate with our vision,”
Kanazawa says.

ORYZA PLANTS PROGRESS IN
NUTRACEUTICALS, COSMECEUTICALSAND BEYOND
There is truth in the belief that nature is agreat physician.
This saying aligns with the philosophyof Oryza Oil & Fat Chemical, a Japanesecompany dedicated to providing the world
with natural products that are scientifically
proven to enhance health and beauty.
Oryza utilises the power of modern-day
technology to fully leverage the nutritional
benefits of plants and animals, creating
top-quality ingredients for functional food,cosmetics, medical products and more.
From humble beginnings as a ricebran oil business in 1939, Oryza hasdeveloped into a thriving international
B2B company. The company offers morethan 300 extracts, oils and concentrates
from rice, fruits and flowers, and has
increased its focus on cultivating exclusive
ingredients from plants natively grown inJapan, such as cherry blossoms.
“We promote sustainability andeco-friendliness, so we’re constantly
looking into plant-based products,” says

Hiromichi Murai,
president and CEO
Hiromichi Murai, president and CEO. “Wehave a screening system of two thousandassays to detect the benefits andbioavailability of various plants. We rely
heavily on science, so we make sure thatthe health and cosmetic claims of all our
products are evidence-based.”Three products take the spotlight
among the company’s extensive line-up.
Derived from rice, Oryza Ceramide
contains a high percentage of ceramide, afatty acid which keeps moisture lockedwithin the skin. While Oryza manufactures
ceramide for topical applications, it is thefirst company in the world that offers thisfatty acid in edible powder and liquid
forms.
Oryza Tocotrienol, also known assuper vitamin E, is 40 to 60 times morepotent as an antioxidant than regularvitamin E. It contains anti-ageing,
immunity-boosting and cholesteroldecreasing properties in cosmetic andfood standard options. Lastly, Gamma
Oryzanol, which also comes in food andcosmetic forms, imparts a host ofhealth-promoting benefits, including
stress relief, anti-menopausal effects,
inflammation reduction and gooddigestion.
Eager to expand into South Asia andChina, Oryza is open for co-development
partnerships with universities, research
institutes and companies within thoseregions, along with potential Japanese
partners.

Sponsored section in cooperation
with Discovery Reports

SHINX WILL EXPAND IN
ASEAN TO REPLICATEGAME-CHANGING SUCCESSAs factory automation sweeps
manufacturing industries worldwide,
Japan’s pioneer in non-ferrous metal
cutting and milling is prepared to takethe reins in Southeast Asia withhigh-precision aluminium and stainlesssteel parts that could eventually
revolutionise the semiconductor,
automotive and electrical industries
with their cost-cutting potential.
Quality and accuracy have been thehallmarks of Shinx since its founding in
1997, when material wholesalers’services were limited to stocking andcutting. “Our milling service changed
the entire manufacturing market in
Japan because its lowered machining
cost led to an overall decline in clients’
overhead production cost. This was a
big change for Japanese manufacturingindustries,” says Kei Ishizaka, presidentof Shinx since June 2020.
Unmatched when it comes toflatness accuracy, Shinx can produce
the full range of non-ferrous plates– from 5mm square to 1.5 by 3 metres– at a rate of 15,000 pieces daily.
Focused on quality control and highly
precise temperature control as dictatedby Japanese Industrial Standards andISO specifications, the company
guarantees the flatness, parallelism,
tolerance and squareness of its
products, with zero defects anddamage-proof packaging.
Through dedicated Plus Alphaservices, it resolves clients’ production
constraints in real time and can
produce prototypes for next-day
delivery.
“We aim to replicate theseachievements in Southeast Asia,”
Ishizaka says. “We would like toempower Asean with our step-by-step
techniques, not only to make a profit,
but more importantly to help themarket with our techniques. This is ourphilosophy.”
Shinx plans to open a factory in theregion within five years mainly to help
resolve quality issues amid risinglabour costs. It is keen on first-tier

Kei Ishizaka, president
manufacturers of semiconductor
components in Vietnam, Singapore,
Malaysia, the Philippines, South Korea
and Taiwan, with a goal to increase
overseas sales to 25 per centby 2025.
“We have accumulated thecustomers, sales and know-how inJapan over the past 25 years,” Ishizaka
says. “From now on, our eyes are on
the Asean countries.”

FUTABA INDUSTRIAL RAMPS UP
INTERNATIONAL GROWTH STRATEGY
Minori Komatsu, head ofcorporate sustainability officestraightforward approach to sustainability
transformation.”
This article is for informational
purposes and does not constitute an offer
or solicitation of any investment service inany jurisdiction.

SATAKE MARKS 100 YEARS AS PARTNER OF CHOICE
IN ENVIRONMENTAL TESTING AND MIXING EQUIPMENT
Behind the world’s advancing
technologies are the companies that
innovate and create them. Renowned forits premium mixing devices, refrigeration
and air conditioning testing equipment,
environmental testing equipment andother customised solutions, Satake
Chemical Equipment champions theworldwide technology development
market. In 2020, the Japanese company
celebrated a century of developing
various machinery for a wide range ofapplications.
Last year, the company changed its
name to SATAKE MultiMix Corp denoting
its multipurpose, multi-function mixing
capabilities. Holding the No 1 market shareposition in the mixer industry in Japan andair conditioning and automotive testinglaboratories in China, SATAKE has
propelled its success through its respect
for technology development. Today, thecompany possesses the world’s highest

S7mainland China, Taiwan and South
Korea, a service base in Thailand, and a
new manufacturing and sales company in
Malaysia.
Set to exhibit at the INTERPHEX trade
fair in the United States, SATAKE seeks
partnerships in Asia, Europe and North
America, especially for specialised trading
companies in the bioreactor and classifier
fields.

In the past six years – under the
stewardship of president Hiroyoshi
Yoshiki – automotive parts
manufacturer FUTABA Industrial
underwent a process of internalconsolidation and restructuring toemerge as a stronger organisation.
Towards the shift to electric vehicles, inaddition to focusing more on researchand development (R&D) and deliveringhigh-value-added products atcompetitive prices, FUTABA has
improved and reformed its
organisational structure to addresssocial issues such as sustainable
development goals and carbon
neutrality.
“We have become much morecustomer-oriented while continuing toleverage our technology leadership instamping, pipe bending and welding,”
Yoshiki says. “In this highly competitiveenvironment, we’re also set apart byour technology to work with ultra-hightensile materials with high strength.”
FUTABA primarily serves leading
automotive parts manufacturers in

Hiroyoshi Yoshiki, president
Japan and abroad through a global
supply system that spans production
facilities in North America, Europe,
Southeast Asia and China. Combining
the latest technologies and innovative
concepts, FUTABA has built a solidname for supplying sophisticatedexhaust system solutions, including
automotive mufflers, which meetengine power and environmental
performance requirements.

Allocating more resources for its
R&D efforts, FUTABA is planning toapply the prospective capabilities in thefield of exhaust system solutions to the
expansion of new business areas forbody-related products, from concept
development to assembly andproduction of medium-sized parts, andto evolve and expand the structuraldevelopment capabilities andmanufacturing technologies forbody-related products.
FUTABA takes the period of change
in the automotive industry as anopportunity to become a company thatcan grow sustainably.
“I want to focus our efforts on
digitalisation and innovation of ourmonozukuri (manufacturing). We aretrying to speed up development bypromoting digital transformation using
digitalisation and artificial intelligence,
to win orders for body parts for battery
electric vehicles by identifying andproposing changes in body structure
and performance requirements,”
Yoshiki says.