Greetings from Tokyo. I took last week off during the Obon holiday in Japan, thinking it would be a quiet period in the news. However, it was full of big news. I was totally surprised when Prime Minister Fumio Kishida announced that he will step down at the end of September.
The race for the LDP presidential election is already heating up. More than 10 ruling party lawmakers have run for the LDP presidential election so far. Candidates need the recommendation of 20 party members, so it may be difficult for all of them to run. Still, the number of candidates competing for the presidential election is expected to be the highest ever. A veteran journalist I know described the presidential election as “more important to participate in than to win.”
Kishida is scheduled to make his final visit to the United States as prime minister next month, departing from Haneda Airport on an Air Self-Defense Force government plane. This arrangement has remained unchanged since the days when Narita was designated an international airport and Haneda was designated a domestic hub airport. Since 2010, however, many general international flights have been using Haneda due to its easy access to the city center.
This week's big story also covers air travel hubs, specifically the trend in Asian countries to revitalize airports with improved access to city centers in the face of rising global demand. In countries like Japan, which have well-developed rail networks such as the Shinkansen, rail may be more convenient, especially for domestic travel, when airports have poor access to city centers. A survey ranked Haneda Airport third in Japan for accessibility to city centers, followed by Fukuoka Airport, which is just a five-minute subway ride from the city center.
Japan was not the only country to be hit with the shock news of a prime minister stepping down. On the same day that Kishida announced his resignation, Thailand's Constitutional Court dismissed Prime Minister Surendra Thavisin.
Unlike Japan, which is likely to take time to select a new leader, Thailand has swiftly selected former Prime Minister Thaksin Shinawatra's daughter and Pheu Thai Party leader to replace Suretta. Asia Insight explains the implications of this rapid leadership change and the challenges she faces in navigating Thailand's complex political and economic landscape.
The race to the top is fierce, not just in politics, but in every field. But in the AI chip market, Nvidia still holds the lead. Will a strong rival emerge? In this week's Business Spotlight, Asian startups are emerging as potential challengers, using innovative designs and targeting specific niche markets where Nvidia's bulky, power-hungry GPUs may not be the best tool for the job.
Another big news item during the Obon holiday in Japan was the first-ever Independence Day celebrations in Indonesia's new capital, Nusantara. President Joko Widodo's legacy projects reached a major milestone. But this construction boom could have a major impact on Indonesia's Maratua Island, known for its natural beauty off the east coast of Borneo. According to our magazine article on the island, now may be the perfect time to visit the island's idyllic landscape.
Have a great weekend!
Makoto Nakayama
Editor in Chief of Nikkei Asia
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