Turkish Economist Hails 'Prosperous and Peaceful' Tokyo's Economic, Lifestyle Advantages

－What initially brought you to Tokyo?

At the start, it was just to go to a Japanese language school. I was interested in Japan because I was born in the 1980s and I was a bit of a nerdy kid. I had a Commodore 64 computer and the Famicom game console, so I grew up with Japanese content. I always thought Japan was a cool place and I wanted to visit. We had a family friend in Tokyo, so I came to visit and decided to stay for a while to go to a language school. But I liked it so much that I decided to stay.

－What keeps you here on a personal level?

There are so many things because it is such a great place. For me, the best thing is the food; it's always fresh and always good. And you can do so much here — snowboard in Hokkaido and dive in Okinawa, both of which I enjoy, or play golf. The seasons are beautiful.  And maybe it is because of the food, the environment or the lifestyle, but I think people age more slowly in Japan. There are lots of opportunities to enjoy your life here.

－What keeps you here on a professional level?

Essentially, I teach people how to invest. I try to increase people's literacy about investment and the money markets. I believe there is a huge need in Japan for this because there has been deflation for 30 years and people avoided investing, but suddenly there has been sharp inflation and those worried about their future want to learn about how to invest and grow their money.

－Why is Tokyo perfect as a world-leading financial hub?

For a long time, Hong Kong was Asia's financial hub, but now Tokyo and Singapore are emerging as the two possible candidates for this position. The advantage for Tokyo is that even though it is close to the USA, it remains neutral because it is not Western and everyone knows that their money is safe here. Another point is that the Japanese financial markets are deep, which is important because to be a hub for financial activities, there needs to be a deep pool of liquidity. The Tokyo Stock Exchange is one of the leading stock markets in the world, with around 4,000 stocks listed, so trading is easy and the system works perfectly. That kind of market structure makes Tokyo the most viable solution to take over from Hong Kong.

－The national government and the Tokyo Metropolitan Government are collaborating on "Special Zones for Financial and Asset Management" in the capital. Officially launched in early June 2024, the zones have streamlined procedures and incentives for foreign firms to start operations in Japan — but why are they important?

The authorities are trying to make doing business easy here. In the past, it might have been a little difficult to do business in Japan, so these special zones are being created to change that and promote Tokyo as a leading asset management center.

I know how important this is because I have recently set up my company. You have to find the right people to work for you, there are many official documents to complete and there are many other things to consider. The government wants to make that all easier and appeal to more foreign firms to set up shop here.

Foreign companies also want to hire people from all over the world, which will be good for Japan because it will attract a lot of qualified people. The authorities know they need to make their life easier, to make things comfortable for their families, to have international schools for their children. It is vital that they are taking these measures to make foreign families feel happy and safe — because once they arrive and realize how good life is here, they will want to stay.

－What other changes have benefited the financial sector in Tokyo?

I would say that NISA (tax-exempt Nippon Individual Savings Accounts, launched in 2014) have been a game-changer. The government is offering big tax breaks through these accounts and we are seeing a boom that all sectors are benefitting from. I also believe there has been renewed interest in investing since the COVID-19 pandemic, perhaps because people had to stay home so they had more time on their hands and they were looking for ways to invest their money.

－What is the potential for Tokyo as one of the world's leading financial hubs?

The biggest advantage that Tokyo has is that the world's economic axis has actually moved to Asia.Pacific trade is actually bigger right now than Atlantic trade and a lot of these countries are growing at a very fast pace. That means there are a lot of people who want to invest in financial assets in Asia. They want to come to Tokyo for sightseeing or to study, but when they actually visit they start wanting to work and live here. I think that is Tokyo's biggest advantage over other cities in the region. Even though Japan is experiencing some demographic problems, the region as a whole is becoming more prosperous. This is good for Tokyo and the whole Japanese economy.

－So it is safe to say that you are an optimist about Tokyo?

Absolutely yes.  I think that compared to many other cities, Tokyo is prosperous and peaceful and there is great potential for the finance sector here.

－Personally, what is your favorite part of Tokyo and why?

I'm still a bit of a nerd, so I like to go to Akihabara. I go to look for old computer games, spend time in some of the cafes there, or just wander around. That's relaxing for me.

－How long do you plan to stay in Tokyo?

I will stay forever. This is my home now.

Emin Yurumazu

Born in Istanbul, Turkey. Economist, Global Strategist. He graduated from The University of Tokyo, Engineering Faculty and worked in Nomura Securities Co., Ltd. from 2006 until 2014, involved in M&A advisory and institutional equity business. In 2016, he co-founded the equity research firm Fukugankeizai Juku Co, Ltd., and most recently, Ladybird Capital LLC in 2024. Yurumazu has authored ten books and co-authored another three books. He writes a monthly column for Nikkei Money and regularly appears on Japanese TV as a market and economy commentator.