The rising sun in the tropical East

Japan has developed close links with North America and Europe as a result of decades of looking to the West for cultural and economic inspiration. Although this strategy produced notable results, it might have unintentionally caused Japan to ignore the enormous potential of its closer neighbours—the vibrant and quickly expanding ASEAN economies.

With the world moving towards a "Asian Century," Japan has to refocus and adopt a more mutually beneficial relationship with ASEAN. Numerous advantages come with this strategic shift, from improved security and economic revival to technology cooperation and cross-cultural interaction.

Economic synergy: Beyond the Western gaze

Closer economic links with ASEAN can greatly support Japan's efforts to reorganise its economy. The expanding middle class in ASEAN, which has a population of over 600 million, offers a profitable market for Japanese goods and services, even though trade with the West is still significant.

Furthermore, Japanese companies looking to diversify their supply chains and improve resilience can benefit greatly from ASEAN's strategic location and competitive labour prices. During his 2023 New Year's speech, Prime Minister Fumio Kishida declared, "We must build a new form of capitalism... that creates a virtuous cycle of growth and distribution." To realise this objective, a stronger economic alliance with ASEAN is essential.

Digital bridge to the future: Japan and singapore leading the way

In this endeavour, Japan can speed up financial connectivity and economic integration by utilising the digital know-how of countries such as Singapore. Japan and Singapore may establish a more smooth and effective regional market by working together on fintech technologies, cross-border payment systems, and digital trade platforms.

Trade and investment obstacles will be further decreased by coordinating digital taxonomies and encouraging interoperability among digital economies. Singapore and Japan will gain from this, but other ASEAN nations will also be able to advance into the digital era. According to the 2023 Google, Temasek, and Bain e-Conomy research, the digital economy in Southeast Asia is expected to grow to $1 trillion by 2030. In order to fulfil this promise, Japan can play a significant role.

Security cooperation: The Singapore model

Beyond the economy, tighter cooperation with ASEAN—especially with Singapore's incredibly strong defence force—can improve regional security and lessen dependency on far-off partners. According to the 2023 Military Balance report, Singapore's sophisticated military technology and strategic know-how may enhance Japan's defence capabilities and help create a more balanced Indo-Pacific security framework.

Greater neutrality in international security issues is made possible by this relationship, which reduces the dangers of rising US-China hostilities. Lee Hsien Loong, the prime minister of Singapore, underlined that "small countries must avoid becoming pawns in a bigger game." Japan's own aspiration for strategic independence is in line with this idea.

Technological leadership: A sustainable future

Given ASEAN's pressing need for sustainable development, Japan has a fantastic chance to use its technological know-how. Japan can bolster its standing as a top technological partner in the region by working together on projects related to smart cities, water management, and renewable energy.

This cooperation can take many different forms, such as cooperative R&D projects, technology transfer, and capacity building initiatives. For example, important infrastructure projects in ASEAN, like the Jakarta MRT system, are already being undertaken by Japanese businesses like Mitsubishi Heavy Industries. 

Cultural exchange: Rediscovering shared heritage

Beyond the strategic and economic aspects, Japan has the opportunity to strengthen interpersonal bonds and rediscover common cultural heritage through greater ties with ASEAN. A rich tapestry of cultural contact, ranging from historic trading routes to common artistic traditions, is just waiting to be revived. 

These ties can be further strengthened and a more dynamic and integrated Asia can be achieved through more tourism, educational exchanges, and cultural initiatives. 

The path forward: Concrete steps and mindset shift

Realizing this vision requires a multi-faceted approach with concrete actions:

Deepen trade and investment

• Expand existing trade agreements: Go beyond the Japan Comprehensive Economic Partnership (AJCEP)'s tariff reductions to incorporate improved collaboration in cutting-edge fields including digital trade and green technology, quicker customs processes, and mutual standard recognition. To promote cross-border e-commerce, Japan and Singapore, for instance, may test a mutual recognition agreement for digital certifications. 

• Promote greater Japanese investment: Focus on important ASEAN industries like technology, infrastructure, and renewable energy. For example, Indonesia's ambitious railway projects may benefit greatly from Japan's high-speed rail experience. According to statistics, Japanese foreign direct investment (FDI) into ASEAN totalled $22.5 billion in 2020, and there is a substantial chance that this amount would increase in the years to come.

Enhance security cooperation

• Conduct joint military exercises: Joint exercises with ASEAN partners should be conducted more frequently and intricately, with an emphasis on counterterrorism, maritime security, and disaster relief and humanitarian aid. A good example is the yearly bilateral exercise called "Rising Star" between Singapore and Japan.

• Share intelligence: Provide safe channels for exchanging information in real time on threats to regional security, such as cyberattacks, transnational crime, and maritime disputes. 

• Co-develop defence technologies: Work together on cooperative defence technology research and development, especially in fields like cybersecurity, unmanned systems, and marine domain awareness.

Foster technological collaboration

• Establish joint research centres: Establish collaborative research facilities devoted to climate change mitigation, renewable energy, and sustainable development. A Japan-ASEAN Centre for Clean Energy, for example, may make it easier to work together on creating and implementing renewable energy technologies.

• Facilitate technology transfer: Encourage the transfer of Japanese technology and know-how to ASEAN nations through training initiatives, licensing contracts, and joint ventures. Southeast Asia's water shortage issues may benefit greatly from Japan's cutting-edge water management technologies. 

• Support capacity building: Offer ASEAN nations training and technical support in fields including sustainable agriculture, smart city development, and renewable energy. 

Promote cultural exchange

• Encourage tourism: Increase travel between Japan and ASEAN by streamlining visa requirements, improving flight connections, and launching coordinated marketing initiatives. With more than 7 million Japanese visitors to ASEAN nations in 2019, travel between Japan and ASEAN was booming before the outbreak. 

• Student exchanges: To promote better understanding and cross-cultural interaction between Japan and ASEAN, increase the scope of scholarship programs and student exchange programs. 

• Cultural programs: To encourage cultural awareness and interpersonal relationships, support language learning initiatives, art exhibits, and cultural festivals. 

Accelerate digital integration

• Collaborate on digital trade platforms: Create interoperable digital trade platforms to lower trade barriers and promote cross-border e-commerce. This can entail working together on projects like the ASEAN Single Window, which attempts to expedite customs processes. 

• Fintech innovations: To improve financial connection and inclusion, encourage collaborative development and uptake of fintech solutions, such as digital identity verification and cross-border payment systems.   

• Taxonomy alignment: To guarantee interoperability and ease cross-border data transfers, harmonise digital taxonomies and data governance frameworks.

The role of cross-border institutions: The ASEAN-Japan Centre

Organisations such as the ASEAN-Japan Centre (AJC) play a vital role in promoting this complex partnership. Established in 1981, the AJC is essential to advancing ASEAN-Japan trade, investment, tourism, and cultural exchange. 

Here are some examples of how the AJC can contribute:

• Trade and Investment: To link ASEAN and Japanese companies, provide investment seminars, trade shows, and business matching activities. The "ASEAN-Japan Insights Series" from the AJC offers insightful market research and analysis. 

• Tourism: To increase travel between Japan and ASEAN, run tourism promotion efforts, make travel reservations easier, and set up cultural exchange initiatives. 

• Human Resource Development: Provide workshops, training courses, and financial aid to improve knowledge and abilities in fields including sustainable development, technology, and company management. AJC's "Entrepreneurship / Leadership Program" develops the next generation of leaders in the area. 

• Policy Dialogue: Encourage more understanding and collaboration on important topics by facilitating policy discussions and exchanges between ASEAN and Japanese government representatives and specialists.

Japan and ASEAN may expedite their cooperation and accomplish win-win results by utilising the knowledge and connections of organisations such as the AJC.

Importantly, this also calls for a change in Japan's perspective, away from a Western-centric outlook and towards the vibrancy and diversity of its Asian neighbours.

A resurgent Japan in a thriving Asia

Japan can unlock a future of economic success, improved security, and technology leadership by embracing a closer collaboration with ASEAN, especially through digitalisation and deeper financial integration. In addition to strengthening the yen and reviving the Japanese economy, this strategic shift made possible by organisations like the AJC will also help create a more secure and prosperous Asia. Japan has the chance to shine brighter than ever as the sun rises in the East.