On July 16th, Taro Kono, Japan's digital transformation minister, reveals how advanced technologies like artificial intelligence and drones can mitigate the country's labor shortages.
In an exclusive interview with Shery Ahn on "Bloomberg: The Asia Trade" in Tokyo, Kono discusses his future political ambitions, the yen's current challenges, and the potential impact of another Donald Trump presidency.
Labor productivity and wage levels have a very direct impact on property prices and rents in the real estate realm.
Understanding Japan's approach to policy creation for boosting per capita GDP, despite its advanced aging population, provides valuable insights for property owners about the potential direction of the property market.
Watch the full interview below. Key points are outlined below the video frame.
Digital Transformation in Japan
Floppy disks removed from government agencies.
Fax machines next on the list for elimination.
Despite issuing new banknotes, focus remains on cashless transactions.
Technological Advancements and Labor in Japan
Promotion of drones and self-driving cars to replace manual labor.
AI viewed positively due to cultural influences from manga and anime.
AI essential to supplement the declining workforce.
Promoting Digital Startups in Japan
Encourage startups to target the global market initially.
Success in the global market should precede focus on the domestic market.
Japan Tourism and Economy
Increased tourism due to the weaker yen and foreign interest.
Aim to attract wealthy tourists for higher spending.
Focus on unique experiences and better services, starting from hotels.
Kono’s Political Ambitions
Interest in becoming Prime Minister to implement desired policies.
Popularity among the public could help support for the LDP.
Economic shift from deflation to inflation noted.
US-Japan Relations and Global Competitiveness
Continuous monitoring of US elections and preparation for any outcome.
Currency discussion emphasizes the need for a stronger yen.
Bank of Japan’s Role
Advocates for increased interest rates to strengthen the yen.
Lower interest rates lead to a weaker yen, impacting prices and pensioners.
China’s Technological Ambitions
Concerns over China's adherence to international rules.
Necessity for close collaboration among G7 and G20 countries.
Energy and AI Infrastructure in Japan
Restarting safe nuclear power plants.
Increasing renewable energy sources to reduce reliance on fossil fuels.
Nuclear and renewable energy are crucial for supporting AI infrastructure.
