Initiatives for the Tokyo Global Financial Center A proposal by the Tokyo Global Financial Center Task Force July 11, 2014
The significance of aiming to become a global financial center Home to the regulatory authorities, the central bank, and major financial institutions, Tokyo has been driving Japan s economy as the center of Japan s financial sector. Tokyo has been selected to host the 2020 Olympic and Paralympic Games. This presents an excellent opportunity to draw the attention of the world to Tokyo. Using this opportunity and turning Tokyo into a global center for finance, an area termed the lifeblood of economy, will boost not only Tokyo s economy, but that of Japan and the rest of Asia as well. The London Changes in the top 10 cities in Global Power City Index (The Mori Memorial Foundation) 2012 Olympics and 2008 2009 2010 2011 Paralympics 2012 2013 1st New York New York New York New York London London 2nd London London London London New York New York 3rd Paris Paris Paris Paris Paris Paris 4th Tokyo Tokyo Tokyo Tokyo Tokyo Tokyo 5th Vienna Singapore Singapore Singapore Singapore Singapore 6th Berlin Berlin Berlin Berlin Seoul Seoul 7th Amsterdam Vienna Amsterdam Seoul Amsterdam Amsterdam 8th Boston Amsterdam Seoul Hong Kong Berlin Berlin 9th Los Angeles Zurich Hong Kong Amsterdam Hong Kong Vienna 10th Toronto Hong Kong Sydney Frankfurt Vienna Frankfurt * Announced by Institute for Urban Strategies, The Mori Memorial Foundation 1
Concentration of finance-related entities 500M 2
Image of the Tokyo Global Financial Center The Tokyo Global Financial Center will attract capital, human resources, and information from around the world, and be a center procuring capital for necessary fields in Japan and abroad. A center with an environment facilitating business activities of financial professionals in Japan and abroad A center where domestic and foreign capital is invested and financed to domestic and foreign growth areas, by matching up domestic and foreign financial assets and demands for capital A major transit point for international capital flows that can attract domestic and foreign capital 3
Establishment of the Tokyo Global Financial Center Task Force With the aim to realize the Tokyo Global Financial Center, the Tokyo Metropolitan Government (TMG) has established the Tokyo Global Financial Center Task Force, chaired by the Vice Governor. The task force holds open meetings with parties from the financial sector First meeting: Thursday, May 29, 2014 Governor and CEO of Japan Bank for International Cooperation Secretary General of International Bankers Association of Japan Senior Executive Managing Director of Daiwa Institute of Research (Japan Center for Economic Research, Mizuho Research Institute) Deputy President and Representative Executive Officer of Nomura Securities Managing Director of the Bank of Tokyo-Mitsubishi UFJ Second meeting: Tuesday, June 10, 2014 Director and Secretary General of the Life Insurance Association of Japan President and CEO of Tokio Marine Asset Management President and CEO of the Tokyo Commodity Exchange Managing Director of the General Insurance Association of Japan Director & Representative Executive Officer, Group CEO of Japan Exchange Group 4
Proposals for the Tokyo Global Financial Center Main proposals by private-sector businesses, etc. at the open meetings Build an international business environment (multiple currency settlement, more convenient administrative procedures, etc.) Build a comfortable living environment for foreigners (Housing, health care, education, support services, etc. tailored to foreigners) Administer corporate tax and income tax incentives, etc. Host international financial conferences Diversify domestic asset management methods (REIT, PPP, pension investment instruments) Have listed companies adopt corporate governance and stewardship codes Develop financial instruments for senior citizens, individuals and others (NISA, 401K improvement) Cultivate human resources for the financial sector (English language education, financial education, specialized education and research organizations, specialized master s and doctorate programs) Hold liaison meetings between the national government, the private sector, and the TMG 5
Four challenges to address to realize the Tokyo Global Financial Center [Challenge 1] Creating an environment that facilitates the business activities of foreign companies and people in Tokyo [Challenge 2] Creating mechanisms to attract domestic and foreign capital to anticipated growth areas in Japan [Challenge 3] Creating mechanisms and developing new financial instruments to broaden investment of domestic financial assets from savings-centered methods to other financial instruments [Challenge 4] Cultivating human resources who can play an active role in the global financial center The TMG, national government, and the private sector will work together to overcome these challenges and set the course toward the realization of the Tokyo Global Financial Center. 6
Twenty initiatives to overcome challenges and a proposal to establish a promotion council [Challenge 1] Creating an environment that facilitates the business activities of foreign companies and people in Tokyo 1. Creating a city where highly skilled financial professionals can play an active role (1) Building a comfortable living environment (English signage, convenience in transportation, health care, schools, etc.) [TMG, national government] (2) Promoting acceptance of highly skilled financial professionals (Points-based System for Highly Skilled Foreign Professionals) [national government] 2. Developing systems making international business possible (3) Providing finance-related acts and rules in English, expanding English-language one-stop administrative procedure offices [national government] (4) Amending the tax system to turn Tokyo into an international business city [national government] (5) Tokyo Stock Exchange s efforts to expand the investor base [private sector] 3. Building platforms for international business exchange (6) Hosting and attracting international financial conferences [collaborative efforts] (7) Vitalizing centers for interaction between companies and investors [collaborative efforts] [Challenge 2] Creating mechanisms to attract domestic and foreign capital to anticipated growth areas in Japan 4. Invigorating the economy by leveraging TMG assets and skills (8) Expanding opportunities for PPP business using TMG-owned land, etc. [TMG] (9) Promoting public-private partnership funds that contribute to TMG policies [collaborative efforts] (10) Cross-listing of Tokyo foreign bonds on the TOKYO PRO-BOND market [TMG] (11) Expanding a business model in which the TMG s technologies and expertise are provided to other Asian countries [TMG, national government] (12) Providing assistance for business startups (cultivating startup companies) [TMG] 5. Promoting financing from overseas through private sector initiatives (13) Strengthening corporate governance [private sector] (14) Developing infrastructure needed for transactions and settlement in foreign currencies and bonds, etc. [private sector] [Challenge 3] Creating mechanisms and developing new financial instruments to broaden investment of domestic financial assets from saving-centered methods to other financial instruments 6. Promoting mid- and long-term asset building by individuals (15) Expanding NISA [national government] (16) Revising metropolitan bonds for individuals [TMG] (17) Developing, popularizing, and educating consumers on investment instruments that reflect the aging society (reverse mortgages, health care REIT, etc.) [private sector] [Challenge 4] Cultivating human resources who can play an active role in the global financial center 7. Cultivating global talent (18) Cultivating financial specialists, etc. [TMG, private sector] (19) Cultivating global talent (bolstering English education) [TMG] (20) Promoting financial education at the elementary, junior high and high school levels [TMG] [Proposal for the establishment of a promotion council] Establishment of a promotion council made up of the national government, the private sector, and the TMG is proposed for the purpose of strengthening collaboration for the smooth implementation of initiatives that will overcome the four challenges and conducting discussions aimed at finding solutions. In this report, the initiatives are classified into the four divisions below. Ⅰ Initiatives to be taken through Tokyo s own measures [TMG] Ⅱ Initiatives to be taken by the national government [national government] Ⅲ Initiatives to be taken by the private sector [private sector] Ⅳ Initiatives to be taken through the collaborative efforts of the TMG, the national government, and the private sector [collaborative efforts] 7