The UK and Japan have forged a significant investment partnership aimed at driving economic growth and increasing UK investment into Japan, supporting Prime Minister Ishiba's ambitious foreign investment targets.
In a move set to deepen their economic relationship, the United Kingdom and Japan formally signed a Memorandum of Cooperation (MoC) yesterday, paving the way for increased UK investment into the East Asian nation. The agreement, signed at the British Embassy in Tokyo, marks a strategic step towards bolstering mutual prosperity and growth.
Key growth sectors identified for increased UK investment include clean energy, digital transformation, biotechnology, and healthcare. Enabling sectors like legal, professional, and financial services are also highlighted as crucial for facilitating this growth. This aligns seamlessly with the UK’s new Industrial Strategy, which outlines plans to transform these vital sectors over the next decade, providing businesses with the stability needed for long-term investment decisions.
The MoC builds upon the strong foundation of the enhanced global strategic partnership established by the Hiroshima Accord in May 2023. It also complements existing agreements such as the UK-Japan Comprehensive Economic Partnership Agreement (CEPA) and both nations’ membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
To mark this significant occasion, the British Embassy in Tokyo has launched "Expand in Japan," an initiative designed to champion and support UK investors seeking opportunities in the Japanese market. Companies can register their interest through the initiative.
The MoC was signed by Baroness Poppy Gustafsson of Chesterton CBE, the UK Minister for Investment, and Seto Takakazu, Japan's State Minister of the Cabinet Office. Takakazu played a key role in developing the recently unveiled 'Program for Promotion of Foreign Direct Investment in Japan 2025,' underscoring the timely and collaborative nature of this new partnership.
This strategic alliance establishes a formal framework to accelerate UK investment into Japan, directly contributing to Prime Minister Ishiba’s ambitious goal of more than doubling Japan’s foreign direct investment stocks to JPY120 trillion (approximately £600 billion) by 2030.
"The UK and Japan share a deep and enduring partnership that is committed to mutual prosperity and growth," stated Minister for Investment Baroness Poppy Gustafsson CBE. "That’s why I’m delighted to sign this new partnership with Japan – capitalising on the major opportunities for UK businesses to bring their innovative offers to Japan and grow in the Japanese economy."
With nearly 1,000 Japanese companies already operating in the UK and an investment stock of £87 billion, this new agreement is expected to strengthen reciprocal investment flows, supporting the economic growth and security objectives of both nations.
