The brain drain is truly troubling. I am fleeing Japan after 5 years as a tech executive. I simply cannot afford to flush my retirement down the toilet for the privilege of living in one of the world’s most expensive cities.
Despite my desperate pleas, I could not convince our Japanese business to raise wages or break their ancient hiring and promotion policies.
The other crisis, not mentioned here, is the inevitable rise in property prices as the Chinese buy up Tokyo commercial and residential assets. This will press local Japanese renters and small business owners into poverty, as has happened in many other cities such as Vancouver.
This is not an opportunity, it is a calamity, and the LDP have shown repeatedly that they do not have the talent or courage to fix anything.
In the off chance our optimism does not pan out however if one goes through the feedback loop of weaker JPY, lower wages (relative to global peers) BUT foreign employers & investors do not step in then Japan is basically headed down the route of becoming an emerging market. Probably a bit overly simplistic but a terrifying thought. After all, who will step in to buy JPY assets at 140 when it goes to 150, 160 and then who buys at 160 when it can go to 200. Even GPIF will be happy to just sit on appreciating USD assets (unless you force them, which is also not very reassuring).
This was incredibly interesting and I love the depth you went on this topic. Having majored in Japanese Language and Culture in college and currently working for a US company in a remote role, the idea of being more involved in the Japanese market, on many levels, still interests me a lot. I'm curious to see how these (possible) changes come to affect the tourism industry, especially in relation to digital nomads who travel so often. I would happily spend up to 6 months a year in Japan if that was possible!
The brain drain is truly troubling. I am fleeing Japan after 5 years as a tech executive. I simply cannot afford to flush my retirement down the toilet for the privilege of living in one of the world’s most expensive cities.
Despite my desperate pleas, I could not convince our Japanese business to raise wages or break their ancient hiring and promotion policies.
The other crisis, not mentioned here, is the inevitable rise in property prices as the Chinese buy up Tokyo commercial and residential assets. This will press local Japanese renters and small business owners into poverty, as has happened in many other cities such as Vancouver.
This is not an opportunity, it is a calamity, and the LDP have shown repeatedly that they do not have the talent or courage to fix anything.
In the off chance our optimism does not pan out however if one goes through the feedback loop of weaker JPY, lower wages (relative to global peers) BUT foreign employers & investors do not step in then Japan is basically headed down the route of becoming an emerging market. Probably a bit overly simplistic but a terrifying thought. After all, who will step in to buy JPY assets at 140 when it goes to 150, 160 and then who buys at 160 when it can go to 200. Even GPIF will be happy to just sit on appreciating USD assets (unless you force them, which is also not very reassuring).
Loved how you have brought a very key perspective into this very key topic.
Most resources, I have read on the internet have been very surface, but only given me one perspective on how this depreciation is bad.
Thanks for highlighting they key realities!
-- FYI, I am Sarthak from the PDIE event, and we spoke during the event about the ecosystem!
Always great to hear your insight Jesper!
This was incredibly interesting and I love the depth you went on this topic. Having majored in Japanese Language and Culture in college and currently working for a US company in a remote role, the idea of being more involved in the Japanese market, on many levels, still interests me a lot. I'm curious to see how these (possible) changes come to affect the tourism industry, especially in relation to digital nomads who travel so often. I would happily spend up to 6 months a year in Japan if that was possible!