Why futuristic Japan is falling behind in digital tech

Still, Japan aims to boost university enrolment in science and IT courses by 19,000 places by 2030.

Meanwhile, companies are hiring foreign workers. Their numbers have tripled to 91,000 in the past decade, comprising 3.1 per cent of the information and communications technology workforce.

But attracting overseas talent remains challenging. “The salaries aren’t that high compared to overseas,” said Takahashi, adding that the language barrier and workplace culture can also be deterrents.

Tamura called for an end to the seniority system and discriminatory treatment of foreigners. “We need to pay well compared to other countries and treat them well for … them (to) utilise their capabilities more freely,” he said.

Japan must also overcome its people’s resistance to change. Almost a decade has passed since the government envisioned Society 5.0, a future in which cyberspace and the physical world blend together.

But people’s “love of legacy systems isn’t changing”, lamented Nawa. “That’s why digitalisation is a big change we must make. If we can’t do that, I think it’ll stop the growth of Japan.”

Watch this episode of Insight here. The programme airs on Thursdays at 9pm.