The Indian-born head of one of Japan's most famous snack brands has warned that the country must change its mindset and admit more immigrants to get the economy back to the glory of its boom years.
Politicians have struggled for years to recover from the so-called lost decades as a range of differing programmes have failed to kickstart growth, including an ultra-loose monetary policy and trillions of dollars in stimulus measures.
And as the new government of Prime Minister Shigeru Ishiba eyes a fresh drive to bring back the heyday of its global tech domination Lekh Juneja, the head of rice cracker giant Kameda Seika, said he worries his adopted country has lost its edge.
"Forty years ago I came to Japan because it was close to number one in GDP... it was booming," the biotech scientist told AFP at Kameda's headquarters in Japan's rice heartland of Niigata.
But at some point "Japan thought 'we have everything now'. And I think that the hungry spirit to (have) the guts to go global started disappearing a bit".
Kameda's expansion mirrored Japan's postwar boom, increasing revenues tenfold between 1965 and 1974 and becoming synonymous with the nationally adored "senbei" crackers in the process.
But the country that gave the world the Sony Walkman, the bullet train and Super Mario is no longer setting the pace in technology, overtaken by Silicon Valley, South Korea and China.
In the late 1980s, Japanese firms dominated the world's top 10 companies by market capitalization. Today not one makes the list.
The population is aging and projected to drop by almost a third in the next 50 years, and firms are already having problems filling vacancies.
Although it has relaxed the rules in recent years, Japan has not turned in a big way to immigration as a solution.
The country "has no choice" but to allow in more immigrants, said Juneja, 72, who first came to Japan in 1984 and previously worked for a food ingredients maker and a pharmaceuticals firm.
"It's not only the numbers. It's also the mindset, the culture. We have to go global," he said.
According to a recent study, Japan needs to more than triple its number of foreign workers to 6.88 million by 2040. Currently it's on track to be almost a million short.
Since joining the firm Juneja has been trying to make Kameda more international as well as a "rice innovation company".
In the testing centre for new products the employees rolling out dough and trying out new recipes and flavors include an American and a Vietnamese.
Language "is a big barrier. You bring people to Niigata and they don't speak Japanese and it's very difficult for them", Juneja said.
"We need to change that. If we employ people who only speak and write Japanese, we have very limited resources, very limited choices," he warned.
Japan has very few foreign-born CEOs, and boardrooms are overwhelmingly male. There are 13 female CEOs in Japan's 1,600 top-listed firms, a Kyodo News survey showed in September.
"It's very rare for a foreigner)to become a CEO in a Japanese company," Juneja said. "But look at the U.S."
"There is Microsoft, there is Google, all these companies have Indian CEOs," he said. "I think Japan has to change... We are proud (in Japan) of our backgrounds. But I think flexibility and having people from overseas would be very critical for Japan."
Not all the non-Japanese CEOs have had a smooth ride. In November the German chief of Olympus resigned after allegedly buying illegal drugs.
And in 2018, Carlos Ghosn, the Franco-Lebanese-Brazilian chief of Nissan, was arrested on suspicion of financial misconduct. He then escaped, in part by hiding in an audio equipment box.
"He didn't generate a very good image for foreign CEOs here," Juneja said. "But the difference between him and me is that I have got a Japanese passport."
© 2024 AFP
43 Comments
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mist1
Yes, we've heard this many times. And?
JeffLee
Yeah, just as Canada, Sweden and several western European countries are learning the folly of mass immigration and are sharply cutting back the numbers in response.
That's because Japan has become such a safe, comfortable and affordable place with an ever improving infrastructure, environment and healthcare system, without having to resort to mass immigration. Not like population-pumping, down-the-tubes Canada, that's for sure. LOL.
I prefer it when people and their governments do have a choice on these matters. I bristle when a corporate bigwig with vested interests tells us we have "no choice."
So that the service industry is populated with millions of near-poverty workers earning 1,000 yen a hour under harsh working conditions while living in run-down dorms. Sounds like paradise.
Asiaman7
Do corporate CEOs see immigrants as anything other than cheap labor?
sakurasuki
However JGovt just want foreigners as cheap labor, like those Vietnamese labor in Japan or low pay English teacher
Jay
We don't need lectures from executives who think flooding countries with unchecked immigration is the solution to every problem. A nation's strength lies in its unique culture, social cohesion, and identity - values that uncontrolled immigration erodes. Uber Globalists like Juneja think immigration is some sort of magic fix, but it's not; it's a Trojan horse for division, crime, and the dilution of what makes this country we all moved to in the first. Stick to business Lekh.
sakurasuki
@JeffLee
Unlike those countries, low birth and low people in work force already impacted Japan workforce count, tax, pension and also GDP.
Albert
No immigrants.
Don't be like Europe or US.
Just search selective and keep all other out.
Because live will not be better.
kurisupisu
Immigration will happen.
It is a question of not if but when.
However, can Japan handle its immigration needs better than other countries?
I doubt it on the basis of how trainees are treated, foreign CEOs vilified and abused, housing discrimination and a lack of laws protecting foreigners.
Still, a weaker Japan will gradually become a de facto colony of China as its power rises and Japan’s diminishes…
Falco1
Totally agree with the CEO,but Japan has still a very inward and xenophobic mindset which is hard to eradicate in just one generation.
MarkX
I'm nor sure it many of you noticed but he also seemed to state that using the Japanese language is a barrier, so does he also want English to become the defacto language? He states that young foreigners come to Japan but communicating is difficult. Why not just throw everything out and start over, right Mr. Juneja!
FizzBit
Let me guess
The study "How to destroy a country and culture from within by fear mongering that growth equals prosperity". A study by the IMF Globalist Manifesto Group
Lorem ipsum
Wrong, it's Japan that didn't generate a very good image for foreign CEOs. Ghosn was arrested after the Nissan board lied to him to get him back to Japan, after which he got arrested for allegedly failing to report earnings which he hadn't yet received. And yet, Japanese politicians get caught red handed doing the same thing constantly and nothing happens to them.
Who in the right mind would want to be a high ranking CEO in this country?
Yotomaya
An article on Japan's (obvious) need for immigration. Sure to keep the comment section, largely composed of immigrants, sorry, expats, going!
kibousha
"We need to suppress wages so I get to take credits and paid billions for my "amazing intelligence" of bringing in profit"
There, no need to sugar coat it with "liberal" ideas and paint those that disagree as "bigoted racists".
NOMINATION
You country's government does too currently but you vote for them.
Some dude
I love it that everyone here is an expert when compared to a successful businessman who's been here 40 years.
Some dude
A nation's strength lies in its unique culture, social cohesion, and identity
Surely these are things that all change over time? I mean Japan 40 years ago (when this fellow came) isn't the same as Japan now, by a long shot.
Abe234
He probably just sees immigrants as cheap Labour, or at least a way to not give anyone a pay rise. I wonder what his record is on giving his staff a pay increase, holidays and laying staff off is.
let’s be honest, the CEO isn’t struggling, and he came from a family in India that had money enough for him to come to Japan. Yes we need immigration, but not to just be your reason for cheap labour to keep costs down. Demand and supply is what they say influences prices. Well if there is a shortage of staff “increase the base pay”. Why is inflation always seen as good when it comes to “debt”? cause they inflate debt away! Why is inflation is seen as good for house/land prices? cause people think they’re richer? Cause hopefully their salary has gone up. but salary inflation…. Terrible! Mustn’t happen, must squash those pay rises. Now for decades in Japan, UK, the US, people haven’t had a pay rise. But their debt has. CEO pay, gotta pay for the best. What a load of…..
I wanna know how much his company pays? Profits and bonuses for the staff.
dbsaiya
That mind set is called the faxoid Showa Ossan syndrome. It permeates every level of society, especially at the top of the government, that's why there's no change. And guess what? The people keep voting them back in so Japan as a whole is reluctant to change.
Abe234
he also forgot to account for the Olympus CEO who was fraudulently blamed for the company’s accounting scandal. After he blew the whistle! Japan isn’t giving itself a good reputation in regards to immigration either!
Hawk
I'm combing the article for the terms "mass" or "unchecked" immigration and I just can't find them. I can see "more immigrants" and referencing tripling its already small number of immigrants over the next 15 years. Maybe I need new glasses.
I'm as much against open borders and mass immigration as the next person, but I don't see that ever happening here. An adequate number of qualified, experienced, hard-working immigrants is what we need. Unfortunately, there needs to be an attractive and rewarding environment to get them here. I don't see that happening either.
SomeWeeb
If you're not having babies you either have to import them or move closer together. That's just math. How happy is everyone going to be when the manufacturing is all done by robots, stores are staffed by robots, restaurants are all just conveyor belts stocked by robots, and nobody can afford a home because literally all the money goes to whoever owns the robots? Because that's where the world is headed with depopulation and a lack of workers. Japan is something like number 2 or 3 on the list of fastest depopulating countries. I bet a lot of people would like to come and integrate into the local culture for a chance to succeed.
William77
The thing is that we can’t see a change in the near future.
And it is not about accepting refugees but to welcome more regular immigrants and give them the same rights as they not only help and contribute to their society but also help to pay the local elderly pension etc.
Some dude
I'm combing the article for the terms "mass" or "unchecked" immigration and I just can't find them
"Immigration" is one of those words which knocks peoples' rational thinking processes off-course. They hear "immigration" and their brain says "poor people who look different to you, coming to take your jobs and murder your family". That's why running on an anti-immigration platform is a surefire winner for any politician, because the average voter is as thick as two short planks and easier to manipulate than wet clay.
Pacificpilot
The reality is that Japanese leaders, legislators, and their bureaucratic staffs are predominantly conservative males. To this day, they kow tow to the industrialist sectors and keep minimum wages low and deny women upper mobility and equal pay for equal work. They do not have the foresight nor the political will to meaningfully take steps to save Japan’s diminishing population.
Hercolobus
Trying to change Japan?
リッチ
Sadly Japan cares more about language than skill in many aspects hiring unqualified people based on N1 N2 N3 vs the actual skill set of the job. The lack of effort to intetnationize Japanese people frankly to English has caused and will continue to cause Japan to be on the downward trend of economies as they scary the level of younger people’s skills when dealing with foreigners even in a retail setting. I’ve even heard people say “this is Japan” as their reasoning. I like many European countries where it’s assumed you have basic English skills especially in retail. I’ve even heard someone say to a foreigner he didn’t understand the words “how much” which in retail is pretty much a staple word. Sadly as the country continues to ignore the real issues nothing will change.
Patricia Yarrow
The multi-armed deva approach in the photograph is rather eye-catching.
browny1
Hawk & Some Dude - exactly.
Where is there any mention of unlimited, unchecked immigration?
The facts as stated were for an increase to 6.8 million by 2040 which would roughly equal 5-6% of the population leaving 94-95% of the population ethnically Japanese.
Hardly the fall of Rome.
Scaremongers keep pushing their tainted visions without providing any viable solutions to the huge worker shortage that looms.
NipponIchiGo
I hope Japan looks at Canada and France - both now realizing the negative impacts that immigration can have and prepare accordingly. Otherwise, we are going see more and more ghettos, police no-go zones, wide spread racial profiling, and prisons in Japan full of immigrants.
Also question the basic premise - does Japan really need 100M+ people - let that population shrink to the point Japan can feed itself!
But if you must:
Make them learn Japanese - no N3 in 3 years - deport!
Keep pathway to citizenship
Point system is deeply flawed (see Oz or Canada where this is gamed to death) - so don't do it.
Get rid of training slave labor ideas - job mobility is the key
Country quotas are great idea - limit 5000 or so per county as max.
Deport immigrant criminals freely and often - any little thing (see broken windows idea)
Enforce overstayers (deport)
and finally.... embrace dual-citizenship between Japan and other countries to support people becoming citizens here in Japan and become part of the community
Yosshh
Recently, we have observed that indian CEO Or high officials in foreign countries are trying to bring more family, friends to settle down as well as target to enlarge their business. For an example, you can find many indian curry shops are now selling their own curry paste to different japanese super markets to create more competitions among japanese SME companies. As a result, quality tend to be low at the final stage. We found that "A price" supermarket is selling one of the indian spice brand MDH and EVEREST which is banned in USA for salmonella contamination. You can find many more articles in internet. They are just making their own ground for advantages.
Finally, Canada, some African countries ( Nigeria, Uganda, DRC) is now realizing it's final outcome - house rent, inflation, destroy one's' own culture, drug violence and so on. More money flow, more inflation will rise. Immigration policy is the key holder for any countries like Japan. That's why american people choose Trump for it's deeper meaning.
VoiceOfReason
Totally agree with the CEO,but Japan has still a very inward and xenophobic mindset which is hard to eradicate in just one generation.
To this point, I have a Japanese wife and I remember moving to Tokyo because I found a new job and we needed an apartment. I remember going to the real estate agent and he showed us a layout of a place and we were super interested. He calls up the landlord and I can hear the conversation. "foreigner? Nope. I don't rent to foreigners."
All I could think of is, my wife is a Japanese national. Her parents could act as guarantors if a guarantor was needed, but nope, my race just automatically disqualifies us both from renting.
Now think about how this article says we need 1 million more immigrants.
antibotter
Adding more workers won't fix the problem.
One of the core issues with the economy is how work is done in Japan. Highly inefficient procedures and nonsensical rules, no support for taking time off or earn enough to raise a family. It's not comparable to northern European countries at all. Randomly pouring in a lot of cheap labor will just result in culture clashes as we've seen in western countries, and the safe Japan image will remain no more.
Despite being a modern country, Japan has these issues plus the national English level is not just low, it's disrespectfully low. Maybe start with flushing out the dinosaur-aged people at the leadership levels and get someone younger, smarter, who has ideas for a sustainable future.
VoiceOfReason
Any foreigner who comes here to live should study and speak the language ..Simple as !
True! However...
Japan is at a point where it must globalize. Japan imports EVERYTHING and I feel it exports very little. English is the language of the world and Japan has to get on board. We are seeing the consequences of Japan's hubris by not adopting a more global mindset every day.
260 yen for a regular sized apple? It's only going to get worse from here
Thomas Twatt
Indian food’s brilliant. Nothing beats a good curry with a few pints of lager.
Good luck to the feller. Whereabouts is his restaurant, by the way?
TT
owzer
Bring in some foreigners, sure. But don't bring in the wrong cultures.
Some dude
Bring in some foreigners, sure. But don't bring in the wrong cultures.
I reckon this is what most people are actually thinking. Yeah, it's OK if they come, but it's not OK if they come.
u_s__reamer
To thrive (and, SURVIVE).
For the first time in history the realization that ALL humans are one and the same species deserving of mutual and equal respect is transforming the relations between peoples. The racism and bigotry that divide us such as the conflict between Jews and their Arab neighbours and among the different sects of Islam are already an anachronism. The bell is tolling for the diminishing number of Japanese who very soon will have no choice but to open the gates of "Fortress Yamato" and embrace our multi-ethnic world.
tokyo_m
When I'm asked if I'm an immigrant or an expat, I always say it's up to Japan. If Japan is happy to give me Japanese citizenship (without forcing me to give up my original citizenship, just as Britain doesn't force this on people), then I'm happy to be an immigrant. If Japan doesn't want to give me citizenship (and I see zero signs that it does), then obviously I'm an expat. It's Japan's call, not mine.
kohakuebisu
It's surprising to me that someone so integrated as to become an inaka company president does not think integration through language is essential.
I believe becoming good at Japanese means taking on Japanese cultural traits, essentially assuming a different personality. You cannot sound good in Japanese by merely changing English words to Japanese ones. The result of that would be weird and grating.
Anyway since he is shacho sama,he has power and can be the change he wants to see. Somehow I doubt the other directors want him to fill the company with English only speakers. Some non-Japanese soeaking people are lovely and diligent, of course, they are way better examples of humanity than myself. However this may not come across to Japanese without meeting certain specific cultural expectations. This is a socially conservative country.
grund
He does have a point, BUT, he also mentions the language barrier, which is why Japan has difficulties in recruiting foreigners in the same way that the US or Europe can. Most foreigners don't speak enough Japanese to be able to work in a Japanese company.
Sven Asai
Get a bit acquainted with the facts and the situation, that it is already too late for all similar countries in Europe, North America and Japan too, regardless if caused by no or by too much immigration had been applied. If you like more direct words, game over in any case.
Blacklabel
All he sees is cheap labor and the opportunity to devalue the skill of foreigners speaking Japanese in Japan.
Zaphod
mist1
And it is still not true. Immigration is s short-term remedy for a shrinking population, in the long term it makes the problem worse. Especially when the immigrants are from incompatible cultures. Europe is slowly awakening to that fact, Japan sadly seems still asleep.