Asia-Pacific

Japanese Companies in Taiwan Paying More Attention to Risk of War

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By Klein Wang/Lery Hiciano

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Japanese companies in Taiwan are increasingly making risk assessments and contingency plans to keep employees and business operations safe in an emergency scenario, like a Taiwan Strait conflict.

Japan-Taiwan Business Ties

 

REPORTER:  

Just how responsible are companies for ensuring their employees are safe if war breaks out? That’s the million-dollar question for the nearly 3,000 Japanese companies with branches or offices in Taiwan, our reporter Lery Hiciano with more.

 

Japanese firms increase Taiwan office alert level

 

Anonymous Employee:  

The threat level has been at 1 for the last two years. It feels like around March or April it rose to Level 2.

 

REPORTER:  

Over the past two years, Japanese companies have increasingly begun working with risk management firms, running emergency scenario simulations, and drafting response plans. One anonymous employee at a Japanese company also revealed his firm began to give staff weekly situation reports two years ago, as part of planning for a Taiwan emergency.

 

Anonymous Employee:  

In a Level 3 situation the company would start to review whether to send an employee’s family members back to Japan. At Level 4, even employees posted in Taiwan might be relocated back to Japan. And the company will foot the bill for airfare.

 

REPORTER:  

Although slideshows detailing China’s military exercises may be a source of stress for companies or employees, they’ve presented a newfound business opportunity for this consultancy where the number of clients has grown since 2023.

 

Kuno Yoichiro (HEAD, GLOBAL RISK MANAGEMENT, NEWTON CONSULTING):  

We've served about 20 companies in the last two years. Our business has grown rapidly since 2023. Triggered by Donald Trump winning the 2024 US presidential election and the [ongoing] war in Ukraine. Some people are wondering if East Asia is next. About 60% of companies in our survey are planning for the risk of a conflict breaking out.

 

REPORTER:  

While business opportunities are only multiplying for risk management consultants, it’s no easy task to point to the exact moment an emergency rises to the level of evacuating staff, or how to provide for them afterwards.

 

With a new pro-Taiwan Japanese prime minister, rising military tensions, and an increasing desire from companies to relocate supply chains away from China — what happens next is increasingly uncertain.