[This is a sponsored article with the Tokyo Metropolitan Government.]
When we think of Tokyo, the capital of Japan, quality and innovation are a few things that come to mind. The land of the rising sun is highly advanced in technology, specifically in electronics, robotics, and automotive manufacturing.
Yet, while you may know Tokyo for its large firms like Hitachi and SONY, its startup scene is undergoing a dynamic transformation. Thanks to government incentives like those from the Tokyo Metropolitan Government (TMG), it’s now emerging as an international startup hub.
TMG has set a goal to increase its number of startups, unicorns, and collaborative projects between governments and businesses by tenfold within five years, supported by platforms like the Tokyo Innovation Base (TIB) and events like SusHi Tech Tokyo 2025.
And they want foreign startups to be a significant part of this growth.
Here are five reasons why startups from Malaysia and Singapore should expand to Tokyo.
1. Tokyo’s strategic location lets you easily tap into APAC’s key markets
From a geographical standpoint, Tokyo is a well-positioned business hub in the Asia-Pacific (APAC) region. China is Japan‘s largest trading partner, while Japan also has good ties with countries like South Korea, New Zealand, Australia, and ASEAN states.
Tokyo’s close proximity to these markets streamlines entry and expansion, cutting down the time and expenses typically involved in international travel. Japan also has a network of free trade agreements (FTAs) with multiple countries such as the ones named above.
Fun fact: FTAs usually simplify customs procedures and make it easier for business people to travel or live in each other’s country.
As such, Malaysian and Singaporean startups will gain direct access to major economies that open more doors to new customer segments.
One example is Malaysia’s Entomal, a biotechnology firm using black soldier flies (BSF) to treat food waste. While touring around Tokyo’s innovation hubs with Selangor Information Technology and Digital Economy Corporation (Sidec), the startup managed to discuss partnerships with local Japanese and international corporations.
2. The Tokyo Innovation Base (TIB) fosters collaboration and growth for early-stage startups
Backed by TMG, the Tokyo Innovation Base (TIB) was established to foster collaboration and networking, especially for early-stage startups.
Designed for hosting regular events and conferences, TIB offers key industry players the space to connect. Whether you’re an entrepreneur, investor, or innovator, the business hub is a gateway to exchange ideas and gain insights into Japan’s market.
Besides that, TIB also provides a range of services for new startups, or entrepreneurs new to Japan, such as:
- A Tokyo Business Start-up One-Stop Center counter that provides multilingual consultations on starting a business, as well as handles administrative procedures like electronic filing and submission of application documents for company establishment.
- A Business Concierge Tokyo counter for foreign companies that provides a one-stop English support for a wide range of needs, from business to daily life.
With its open and supportive culture, TIB makes it easier for foreign startups to navigate Tokyo’s business landscape.
3. Tokyo’s government has various initiatives to support foreign startups in expanding there
Invest Tokyo, TMG’s other programme, is also available to make the process smoother and less risky for foreign startups.
To create a cycle of innovation and economic growth, Invest Tokyo offers a variety of initiatives for startups considering business expansion in Tokyo. This includes consulting services, tailored guidance on fundraising, legal frameworks, and business-matching services.
The programme even simplifies the process of setting up a business in Japan by providing subsidies, visa support, and residency programmes to foreign startups.
Together, these help foreign startups gain deeper insights into Japan’s market and give them a better chance of succeeding. So it’s highly encouraged that Malaysian and Singaporeans startups take advantage of Invest Tokyo’s resources.
4. It’s home to one of Asia’s largest startup conferences that can connect entrepreneurs with investors
If you haven’t heard, SusHi Tech Tokyo 2025 is returning in just a few months. Launched as a way to address urban and environmental challenges through technological innovation, it’s known as one of Asia’s largest startup conferences.
The event is happening from May 8 to May 10, 2025, offering international startups a chance to connect with investors and showcase innovations. Another highlight of the event is SusHi Tech Challenge, a pitch contest for both local and foreign startups where you can win a cash prize.
Last year, SusHi Tech Tokyo 2024 had over 434 startup booths (of which 60% were from outside Japan), over 200 cooperating companies, and over 3,485 business negotiations. The event attracted a total of 40,206 participants from across the globe.
This makes it an ideal platform for Malaysian and Singaporean businesses to gain exposure and secure investments. Startups can now apply to exhibit and participate in SusHi Tech Challenge, or simply attend to network and explore other opportunities.
Tickets are currently on sale, so be sure to reserve your spot.
5. There’s a ready pool of skilled talents in up-and-coming industries
Japan’s known for many things, but perhaps the lesser talked-about aspects are its skilled workforce and innovation resources. Tokyo is home to world-renowned universities and research institutions, serving as hubs that nurture university-based startups.
Within Tokyo, distinctive areas such as Marunouchi, Toranomon, Nihonbashi, Shibuya, and Hongo each make up their own ecosystem.
By expanding to Tokyo, startups would benefit from TIB’s help in connecting with these institutes. Having access to Japan’s skilled talent pool would accelerate the R&D efforts of Malaysian and Singaporean startups.
Malaysian startup Entomal is one such example, as its co-founder told us that they found a Japanese university sharing Entomal’s vision for sustainable waste solutions, and the firm is hoping to partner with them soon.
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With Tokyo ranking first in the world in gross domestic product (GDP) and first in the world in regional population, it’s an exemplary location for foreign startups to take their business further.
Its strategic location, strong government support, startup-focused platforms, and skilled workforce, are just a few of the elements that would help Malaysian and Singaporean startups succeed abroad.
Additionally, the networking opportunities available through platforms like TIB and SusHi Tech Tokyo 2025 are designed to propel startups forward.
All in all, Tokyo is ready to welcome the next generation of global startups, so don’t pass up the opportunity to grow your company in one of the most vibrant cities globally.
- Learn more about Tokyo Innovation Base here or here, Invest Tokyo here or here, and SusHi Tech Tokyo 2025 here or here.
- Read articles we’ve written about Malaysian startups here.
Featured Image Credit: Tokyo Metropolitan Government