Asia Intelligence Brief — Sunday, August 23, 2026

Japan executed Sunao Takami on August 21st for setting fire to a pachinko parlour in Osaka in 2009, killing five people and injuring ten. This marked the first execution under Prime Minister Sanae Takaichi and the first in over a year. Japan's capital punishment retains broad public support.

Meanwhile, the Cool Japan Fund, which promoted Japanese animation, food culture, and related industries abroad, is being dropped from the budget due to its cumulative losses reaching ¥54 billion (approximately US$340 million). An expert panel is still deciding whether to dissolve the fund or fold it into other institutions. The fund's closure is notable, as governments usually struggle to close established institutions they created.

The post office is also under review, with fewer post boxes, less frequent delivery, and higher postage being considered. Letter volumes have declined for years, and the business has lost money for four years. The expert panel will not report until around summer 2027, and the law requires a post office in every municipality and the preservation of some 180,000 mailboxes.

Japan is also moving forward with high-speed rail projects for Shikoku and eastern Kyushu, with journey times from Osaka potentially falling to around ninety minutes. This is the first movement in fifty-three years, but starting a study does not mean approval to build.

International tourism records show a record 3.44 million foreign visitors in July, but only an increase of 0.1% from the previous year. However, arrivals from mainland China fell by 56.1%, marking the eighth consecutive monthly drop after Beijing advised its citizens against traveling to Japan. Record-breaking visitor numbers were set by South Korea, the United States, and Indonesia.

Japan and India agreed to fast-track UNICORN, an integrated radio-antenna mast for Indian warships, as their first joint defence co-development project. This follows Japan's April revision of its equipment transfer principles, which lifted restrictions on lethal arms exports.

The Cool Japan story highlights that development agencies can build vehicles to promote national culture and food abroad, but the state cannot pick taste. While Japanese animation and food succeeded internationally through commercial channels, the fund created to promote them lost money. However, Japan is not withdrawing but expanding its IP360 grant programme, backing with ¥35 billion (approximately US$220 million) and aiming for ¥20 trillion in overseas content sales by 2033.

The state is not leaving, and the willingness to put things up for review is a real disposition worth noting.