UK-Japan partnership boosts economic growth

A groundbreaking bilateral initiative promises to reshape business opportunities across both the UK and Japan through comprehensive education, innovation and cultural collaboration programmes
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Alice Weil

Features Editor at The Executive Magazine

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Culture Secretary Lisa Nandy unveiled the Musubi Initiative at World Expo 2025 Osaka, establishing a pioneering framework for UK-Japan cooperation that extends far beyond traditional diplomatic channels. The programme combines private sector investment with government backing to create sustainable pathways for business development, talent cultivation and cross-cultural partnership. Named after the Japanese concept of connection, this comprehensive approach addresses the growing demand for international expertise whilst strengthening economic ties between two of the world’s most innovative economies.

“The UK’s vibrant display in Osaka demonstrates the breadth of creativity and innovation from across our four nations and our strong partnership with Japan. From BBC Planet Earth and Paddington to our world-famous musicians, the UK’s creative industries are a truly global hit, worth £125 billion to our economy and vital to our Plan for Change – it’s great to see them in the spotlight today as part of UK National Day. I am delighted that we have deepened our relationship with Japan further through this new Musubi Initiative, which will create even more opportunities for businesses in both the UK and Japan now and in the future.”

Lisa Nandy, UK Secretary of State for Culture, Media and Sport

The announcement builds upon existing collaboration frameworks including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Hiroshima Accord. With Japan currently serving as the UK’s sixth largest investor, contributing over £86 billion in Foreign Direct Investment stock and supporting 200,000 UK jobs through nearly 1,000 Japanese companies, the initiative arrives at a strategically important moment for both economies.

Education through targeted scholarship programmes

University College London has partnered with Amano Enzyme Inc. to establish the new Musubi Scholarship, drawing upon a relationship spanning over 160 years between the university and Japan. This collaboration demonstrates how established academic connections can evolve to meet contemporary business needs whilst maintaining their foundational strength.

The Youth Offshore Wind Scholarship Programme, developed with SSE Pacifico, addresses the critical skills shortage within the renewable energy sector. Participants will benefit from study opportunities in Scotland, positioning them at the forefront of offshore wind technology development. This programme directly supports both nations’ commitment to sustainable energy solutions whilst creating career pathways for the next generation of energy professionals.

Robert Walters has contributed a career development programme specifically designed for high-potential individuals, including Chevening Scholars. This structured approach to professional development ensures participants receive targeted support to maximise their potential within the global business environment.

Sports and leadership development programmes

Liverpool Football Club International Academy will deliver sports programmes that combine athletic development with leadership training. The initiative recognises that sporting excellence often translates into valuable business skills including teamwork, strategic thinking and resilience under pressure.

The UK Ekiden programme, inspired by Japan’s renowned relay race tradition, brings together university students from both countries. This cross-cultural sporting exchange creates lasting personal connections whilst promoting healthy competition and mutual respect between participants.

A dedicated Women’s Economic Empowerment event will strengthen relationships between female exporters across both nations. Co-hosted at Osaka Expo, this programme addresses the underrepresentation of women in international trade whilst creating practical business development opportunities.

Private sector engagement and cultural ambassadors

Hello Kitty, the globally recognised Japanese character from Sanrio, has been appointed as Musubi Friendship Ambassador, demonstrating the programme’s commitment to bridging popular culture with serious business objectives. This appointment acknowledges the significant economic impact of cultural exports and their role in building lasting international relationships.

Dentsu PR Consulting Inc. will provide strategic communications support, ensuring the initiative maintains professional standards whilst reaching appropriate audiences across both markets. This partnership combines Japanese market expertise with international communications capability.

Economic impact and future prospects

Bilateral trade between the UK and Japan reached £31 billion in 2024, whilst Japanese investment into the UK has doubled over the past decade. The Musubi Initiative positions both countries to capitalise on this growth trajectory through systematic talent development and business relationship building.

The programme’s alumni network will create lasting professional connections that extend beyond individual careers. These relationships form the foundation for future business partnerships, joint ventures and knowledge exchange opportunities that benefit both economies.

Exports Minister Gareth Thomas emphasised the initiative’s role within the Government’s Plan for Change, highlighting how international partnerships create domestic opportunities. The programme demonstrates how strategic cultural investment can generate measurable economic returns whilst building sustainable competitive advantages.

“The UK and Japan enjoy a dynamic and enduring trading relationship, with £86 billion in investment to the UK economy. As part of the Government’s Plan for Change, initiatives like the Musubi Initiative and Expo 2025 are helping to strengthen our ties with key economic partners, creating new opportunities for businesses and deepening people-to-people connections across the world.”

Gareth Thomas, Exports Minister

Japanese Foreign Minister Takeshi Iwaya reinforced the importance of people-to-people connections in developing societies and strengthening international exchanges. His comments reflect the programme’s fundamental premise that personal relationships remain central to successful business partnerships, even within increasingly digital commercial environments.

“It is connections between people that develop our societies and serve as a foundation for exchanges between countries. In the Japan-UK Hiroshima Accord, issued by the leaders of Japan and the UK in 2023, we also confirmed our cooperation in revitalising people-to-people exchanges, including in the key areas of tourism, studying abroad, culture, and the working holiday programme. I hope this initiative will strengthen our “Musubi (bonds)” especially among the younger generation and that our partnership, now stronger than ever, will continue to grow.”

Takeshi Iwaya, Japanese Foreign Minister

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