LEADING JAPAN'S ECONOMIC SECURITY IMPERATIVE

As geopolitical tensions rise, consulting firm Kitamura Economic Security is helping businesses fortify their defenses and seize opportunities.

AT THE END OF 2022, JAPAN MADE A SEISMIC announcement: The country would be adopting a more assertive national security posture. The move, aimed at countering rising threats from authoritarian adversaries, precipitated a significant increase in military expenditure and a shift away from its post-World War II pacifism. In December 2023, Japan's cabinet approved a record 7.95 trillion yen [about $50.3 billion] defense budget-a 16.5% increase from the previous year. But the focus of the country's revamped defensive strategy goes beyond military applications. Economic security has an equally important role to play.

A multifaceted concept that involves safeguarding financial interests, protecting advanced technologies, and maintaining an open international business environment, economic security has surged to the top of Japan's national agenda. For businesses at home and abroad, this development has substantial implications.

"The intensifying confrontation between democratic nations and hegemonic states has led to what some call the 'New Cold War," says Shigeru Kitamura, president and CEO of Kitamura Economic Security [KES). "In this challenging business environment, companies must build robust supply chains, maintain critical infrastructure, and confront the weaponization of economic measures."

KES is at the forefront of helping enterprises navigate this complex geopolitical landscape. Built on four pillars-economic security, cybersecurity, compliance, and research and analysis-the company offers a suite of services designed to strengthen its customers' resilience and competitiveness.