On behalf of the Japan Association of New Economy (JANE), I would like to extend my heartfelt greetings for the New Year.

2025 was a year in which Japan demonstrated a clear presence on the global stage and offered reason for optimism as it moved toward a new phase for the future. Particularly notable was the awarding of the Nobel Prize to two Japanese scientists: Mr. Shimon Sakaguchi (Physiology or Medicine) and Mr. Susumu Kitagawa (Chemistry). This double win in the natural sciences, the first in a decade, reaffirmed Japan’s outstanding scientific and technological capabilities and demonstrated that long-term fundamental research can still lead the world. Other developments that inspired optimism included the hosting of the World Expo 2025 Osaka, Kansai, which drew global attention, and the historic inauguration of Japan’s first female Prime Minister.

Last year also marked the 13th year since JANE’s founding. Over this period, we pursued our mission more vigorously than ever before, focusing on the two key pillars of policy advocacy and fostering collaboration among our member companies. A highlight was our anniversary event, “JX Live! 2025,” held in October, which conveyed the vision of “JX (Japan Transformation)” and welcomed over 550 enthusiastic participants—the largest attendance in its three-year history. In January, we launched the DE&I Community, providing member companies with a platform to discuss the strategic utilization of diverse talent, including women and foreign professionals. These initiatives aim to nurture next-generation leaders across various fields and backgrounds.

While these positive developments were encouraging, Japan’s long-standing economic challenges remain serious. In the short term, it is true that the Nikkei Stock Average reached a record high in October, marking a significant milestone for the market. However, examining the long-term trends in the real economy highlights a serious decline in Japan’s international competitiveness. For instance, Japan has been the only G7 country to record negative nominal GDP growth in US dollar terms over the past 20 years. Without decisive action, there is a risk that Japan will gradually lose its relative position in the global economy.

Overcoming these challenges requires the full strength of the private sector, including entrepreneurs. To break the negative cycle and chart a new growth trajectory, we need a fundamental transformation of the economy itself, which we call “JX”. In 2026, we must accelerate this momentum so that Japan can succeed in global competition and become a country where “people, knowledge and capital” gather from all over the world.

To achieve this transformation, we continue to advocate for the following issues as “policies for reversal”. First, revising regulations and tax systems is essential to create an environment that maximizes Japan’s resources and drive tangible results. Complex and excessive regulations remain the greatest barrier to implementing new technologies such as digitalization, AI, and blockchain, and it is therefore necessary to promptly review existing rules that impede new business creation. At the same time, lowering the top rates of income tax, corporate tax and inheritance tax is necessary to create a “virtuous cycle of taxation and growth”. Current high rates, however, continue to drive the outflow of capital and talent both domestically and internationally.

Addressing the worsening labor shortage caused by the declining birthrate and aging population is also indispensable. We therefore, advocate the strategic use of global talent, supported by strict residence management and mechanisms that enable smooth integration into Japanese society. Similarly, we must shift from the traditional “Work Style Reform”, focused on managing working hours, to a “Work Motivation Reform”, which emphasizes workers’ intrinsic motivation and seeks to expand their autonomy and choices. Productivity gains should also be pursued by advancing efficiency through AI utilization.

Recognizing the urgent need for fundamental reform, JANE will continue to actively engage in dialogue with the government. In 2026, we will move forward together with all of you driving Japan’s transformation and sincerely ask for your continued support and encouragement.

January 1, 2026 
Japan Association of New Economy
Representative Director Mickey Mikitani