Governor Yuriko Koike made the case at the FinCity.Tokyo forum in New York, where she pitched Tokyo as a global financial hub. Her argument: when the yen is weak, foreign startups and investors can bring on skilled staff at a notably reduced wage.
"Tokyo has a large number of excellent, highly skilled people, both men and women," "Koike told Bloomberg in an interview in New York on Friday, as the Japanese currency hovered close to a 40-year low". "I believe the weak yen has merits in terms of securing the human resources to run a business," she said.
Koike noted that she hasn't heard any complaints about the negative effects of the weak currency. The depreciated yen does reduce the spending power of local entrepreneurs who need to pay overseas expenses.
Tokyo has been actively building a supportive environment for startups through initiatives like the Tokyo Innovation Base, which provides co-working spaces and mentorship, and the annual SusHi Tech Tokyo conference that connects founders with global investors. The city also offers subsidies for foreign entrepreneurs and streamlined procedures for setting up businesses. These measures complement the currency advantage, making Tokyo an increasingly attractive destination for new ventures.
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According to the latest ranking from Startup Genome, Tokyo came in 12th globally, lagging behind Asian competitors such as Beijing, Singapore, Seoul, and Shanghai.
Koike emphasized the need to underscore Japan's stability and openness as it vies for talent and businesses from abroad.
"What is important about Tokyo, and Japan, is first, it's a democracy. Second, it's governed by the rule of law. And third, freedom of speech. I believe those three qualities are what make Tokyo stand out compared with other countries in Asia," she said.
Tokyo has also been fostering a climate that lowers barriers for foreign professionals, such as pushing firms to supply investor relations documents in multiple languages, giving aid to people setting up enterprises, and expanding the number of international schools, she added.
Under Koike's leadership, Tokyo has rolled out programs to position itself as a global finance center and startup hub. Tokyo has stated its ambition to become "the world's most startup friendly city."
Koike traveled to New York for the FinCity.Tokyo forum and also participated in a United Nations conference.
Japan's central government recently made the criteria for business management visas more strict, raising concerns that some small business owners might have to abandon their plans to stay in Japan.
Koike expressed that the tightened rules should not be an issue for financial professionals with specialized skills. She added that Tokyo coordinates with the national government on growth initiatives and maintains communication channels to address startup hurdles.
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