Shifting winds turn Japan’s investors to Southeast Asia

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Hi there,

Singaporeans (myself included) have been flocking to Japan in droves ever since the country eased its Covid-19 restrictions late last year.

Sampling the delectable cuisine, viewing cherry blossoms, or hiking up Mount Fuji might be on the top of your list depending on the kind of traveler you are, but purchasing “Made in Japan” electronics is, in all likelihood, not (unless it’s a Nintendo Switch).

Once a trailblazer in tech, Japan has long fallen behind other major economies in tech prowess for reasons including pragmatism, preference for job stability, a lack of software engineers and tech talent, and a dearth of tech funding.

But it appears that a shift is happening.

Since 2021, Mitsubishi UFJ Financial Group (MUFG) and other Japanese investors have spurred a rebound in Southeast Asia’s fintech investments, my colleague Budi writes in this week’s Big Story.

MUFG’s increased investments in the region coincides with a palpable shift in how Japan views tech and entrepreneurship.

Driven by a desire for change, more young Japanese citizens are considering a career in tech at a time when startup funding in the country is gaining momentum. (Funding grew between 2021 and 2022, the same year that funding in the US and EU decreased by 30% and 16%, respectively.)

As an aging and shrinking population drives Japanese firms to seek investment opportunities abroad, Southeast Asian markets stand to benefit.

On the topic of investments, the murky economic climate coupled with rising inflation certainly hasn’t helped wealthtech firms.

In this week’s Hot Take, I dive deeper into how changing investing, saving, and spending habits are affecting wealthtech players like StashAway, which reported slower growth in 2022.

— Melissa

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THE BIG STORY

Return of the Rising Sun: MUFG fuels rebound in Japanese investments in SEA fintech

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THE HOT TAKE

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NEWS YOU SHOULD KNOW

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FYI

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