Japan is actively enhancing its economic ties with Southeast Asia, as illustrated by recent strategic partnerships and initiatives aimed at addressing urgent labor shortages. This expansion signifies Japan's commitment to building stronger economic and workforce relations with the region.
On Monday, NH Foods, Japan's largest meatpacking company, announced a strategic partnership with Thailand's Charoen Pokphand Foods. This collaboration is part of NH Foods' broader strategy to increase its market share and sales within Southeast Asia. Both companies will work together on sourcing ingredients and developing new products, capitalizing on each other's strengths to penetrate the competitive market more effectively.
Meanwhile, Japan's Health, Labor and Welfare Ministry is also taking significant steps to cope with the increasing shortage of workers, particularly in the nursing care sector. Starting from fiscal year 2025, the ministry plans to aggressively recruit nursing care staff from Southeast Asia, primarily targeting countries like Indonesia, Vietnam, and the Philippines, which have been identified as key sources of skilled labor.
Japan's aging population, which is expected to see one in five people aged 75 or older by 2025, presents substantial challenges for the nursing care industry. With current shortages projected to reach about 250,000 workers by 2026, the ministry is planning to shoulder part of the costs incurred by Japanese nursing care providers when hiring from abroad. Such incentives are imperative as the local workforce struggles to meet the demand.
The ministry has also set up educational initiatives, including the establishment of training programs for aspiring nursing care workers. One significant program, called Kaigo, will be introduced in Indonesia to train locals on nursing care techniques. This initiative highlights Japan's multifaceted approach to solving its labor crisis; it aims not only to attract foreign talent but also to transfer skills and knowledge to the region. Experts from Japan's care insurance system will be dispatched to assist with this training.
Financial incentives will be put in place for both vocational schools and nursing homes operating under the special nursing homes for the elderly, also known as tokuyo. The government will provide up to 1 million yen (approximately $8,800) for companies participating in these recruitment initiatives. This is expected to encourage participation from around 100 businesses during the first year of implementation.
The efforts to recruit foreign nationals have gained traction, with 28,400 foreign workers already holding skilled worker visas as of late 2023, though this figure is only over 50 percent of the government’s target. "We want to encourage people to take the first step toward hiring foreign staff," said a spokesperson from the ministry’s office of policy planning for recruitment in welfare.
To create these pathways for interaction, local agencies will facilitate information sessions at Japanese language schools and recruitment agencies across Southeast Asia, informing young people about job prospects, working conditions, and the benefits of working abroad.
On the investment front, Japan's venture capital has been seeking to expand its presence throughout Southeast Asia. According to sources, the Japanese firm Global Brain is now partnering with Singapore-based SEEDS Capital to broaden its investment activities. Kasuhiko Iwasaki, the CEO of Global Brain, emphasized the importance of collaboration across borders, stating, "By leveraging local insights and expertise, we can tap new growth opportunities for innovation. This partnership signifies our strong commitment to increase investment flow within Southeast Asia."
The concerted efforts between Japan and Southeast Asia highlight how interconnected the regions have become, economically and socially. With the Japanese government prioritizing collaborations and investments, the mutual benefits of such actions will likely play out over time, with anticipation for thriving markets, job creation, and economic upliftment on both sides.
The pervasive notion shared by many experts is the necessity for improved conditions within Japan's nursing care infrastructure, urging the government to support foreign workers more effectively. Professor Noriko Tsukada from Nihon University remarked, "The government should support the cost of acquiring qualifications and strive to create workplaces..." emphasizing the need for higher wages and improved working environments to attract foreign talent.
Overall, Japan's strategic moves signal not just economic growth prospects but also highlight the importance of integrating international talent for addressing domestic needs. This engagement is expected to reinforce ties with Southeast Asian nations, laying foundations for long-term partnerships.
