Japan

Intelligence for Better Decision Making

Apple’s Strategic AI Spending Reshapes Market Leadership and Investor Sentiment
Dec. 11, 2025 | Competitiveness

In 2025, investors have closely watched how leading technology companies allocate resources to artificial intelligence.

**Apple’s shares fell 18 percent in the first half of the year amid criticism of its unclear AI strategy.**
However, a 35 percent rally in the second half outpaced AI-focused peers such as Meta, Microsoft and Nvidia, lifting Apple’s market capitalization to about $4.1 trillion and making it the S&P 500’s second-largest constituent—overtaking Microsoft and closing in on Nvidia.

**Amid widespread concern over runaway AI spending, Apple has kept tight control of its investments and steered clear of the high-cost arms race.**
Investors see that restraint as a defensive stance that could reward shareholders once AI technology reaches mass adoption.

**Yet despite its strong late-year performance, Apple now trades at roughly 33 times projected earnings for the coming year—well above its 15-year average valuation of under 19 times.**
Analysts warn that this premium may be excessive and question whether investors are overpaying for perceived defensiveness in an uncertain AI landscape.

**Apple’s enduring consumer brand and the potential for AI to enhance its devices and high-margin services underpin its appeal.**
In a market where heavy AI budgets face scrutiny, the company’s measured approach offers a lower-risk path for investors seeking exposure to AI without the costs associated with aggressive spending.
Japan Moves Forward with Maiden Name Usage Reforms for Married Couples
Dec. 11, 2025 | Governance & Law

Japan’s government is advancing proposals to allow married individuals to retain and use their maiden names in both social and official settings.

**Prime Minister Sanae Takaichi plans to submit a bill in the 2026 ordinary Diet session that would let spouses continue using their former surnames, while preserving the requirement for married couples to share a legal surname.**
Under her proposal, individuals could use their maiden names as “common names” in everyday life, and those names would appear in parentheses on official documents such as passports.

**This initiative stems from the coalition agreement between the Liberal Democratic Party (LDP) and Nippon Ishin no Kai.**
Despite that partnership, some LDP members—who favor an optional separate-surname system—are expected to challenge the plan, and opposition parties continue to push for a more comprehensive framework that fully legalizes separate surnames. Takaichi, holding to a traditional view of family unity, has consistently resisted proposals that would grant married couples full surname autonomy.

**In May, Nippon Ishin no Kai introduced its own legislation to allow former surnames to be recorded either alone or alongside current surnames on public records.**
Government and ruling-party officials are still negotiating how those entries would function across administrative databases, official registries and various legal forms.

**Critics argue that merely permitting maiden names in parentheses fails to address deeper concerns about personal identity and social recognition.**
Business groups such as Keidanren continue to lobby for an optional separate-surname system, citing gains in international competitiveness and workplace efficiency. Amidst this pressure, internal resistance within the LDP suggests it will be difficult to reach a broad consensus on the scope and mechanisms of surname reform before the 2026 session.

**Takaichi has vowed to coordinate closely with coalition partners and relevant ministries as they conduct technical reviews and draft the legislation.**
On December 9, 2025, during a House of Representatives Budget Committee session, she drew on her experience as Minister of Internal Affairs and Communications to stress the importance of removing the disadvantages spouses face when mandatory surname changes follow marriage.

Monitored Intelligence for Japan - Dec. 12, 2025


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Japan to add economic security to scope of designated secrets

Japan Times | English | News | Dec. 12, 2025 | Regulation

Japan’s government plans to expand the scope of information classified as specially designated secrets to include data critical to economic security. This change is part of a draft revision to the operational standards of the law on the protection of specially designated secrets, approved by the ruling Liberal Democratic Party's policy division and expected to be adopted by the Cabinet by the end of 2025.

The revision represents the second update to the operational standards, which are reviewed every five years. It aims to strengthen information security by integrating the specially designated secrets system with the security clearance program introduced earlier in 2025. This program certifies individuals for access to critical information.

Initially implemented in 2014, the law on specially designated secrets covers four areas: defense, diplomacy, espionage prevention, and terrorism prevention. It seeks to prevent leaks by imposing stricter penalties. The new draft calls for more rigorous assessments of individuals seeking security clearance, including continuous monitoring of their social life and swift reassessment if security risks emerge.

高市首相指示で「風前のともしび」 来春の労基法改正、論点と思惑

Prime Minister Takashi's Directive Puts Labor Standards Law Revision Next Spring on the Brink: Issues and Expectations

Mainichi Shimbun | Local Language | News | Dec. 12, 2025 | Regulation

Prime Minister Sanae Takaichi's directive in October 2025 has put the planned revisions to Japan's Labor Standards Act under significant uncertainty. Originally, the Ministry of Health, Labour and Welfare aimed to submit a bill for amendments in the ordinary Diet session next spring following a five-year review of Work Style Reform laws. However, Takaichi's instruction to consider loosening regulations on working hours has forced a restart of the ongoing discussions at the Labor Policy Council.

Since January 2025, the council, composed of representatives of workers, employers, and experts, had been debating key issues such as banning consecutive work periods longer than 14 days, revising premium pay calculations for side or multiple jobs, and strengthening interval-between-shifts rules. The overtime work cap was not a major point of contention as employers did not seek its relaxation. Takaichi’s sudden directive to ease working hours regulations, reportedly reflecting business and Liberal Democratic Party requests, lacks detail on what changes are intended.

This ambiguity has fueled widespread concern, especially about potentially relaxing the current overtime limits, which are set at 45 hours per month and 360 hours per year, with stricter thresholds to prevent overwork-related deaths. Following the directive, strong opposition emerged from groups including families of karoshi victims, worried about increased risks of overwork as industries facing labor shortages push for more flexible limits. The Ministry of Health, Labour and Welfare has received no further clarification from the prime minister on the directive’s specifics.

「OTC類似薬」、自維に隔たり 保険適用維持か、原則除外か

OTC-like Drugs Face Discrepancies in Self-Maintenance: Will Insurance Coverage Be Maintained or Principally Excluded

Tokyo Shimbun | Local Language | News | Dec. 12, 2025 | Regulation

The Liberal Democratic Party (LDP) and the Japan Innovation Party (Ishin) held discussions on social security reform focused on the insurance coverage for "OTC-like drugs," which have ingredients and effects similar to over-the-counter drugs. The Japan Innovation Party proposed removing these drugs from public health insurance coverage to reduce medical expenses, advocating that patients bear the full cost. In contrast, the LDP recommended maintaining insurance coverage but increasing out-of-pocket payments to avoid a sudden burden shift on the public. A gap remains between the parties on the approach to managing patient costs.

Both parties agreed to gradually implement changes beginning with the next fiscal year, reflecting a phased review process over several years. Details on the specific patient burden amounts will be debated within the parties, with the goal of reaching a consensus during future LDP–Ishin talks. This review is intended to alleviate insurance premium pressures on the working population.

The article also references reactions from opposition parties, including the Constitutional Democratic Party (CDP), which expressed concern about potential increases in patient costs and called for patient input before excluding OTC-like drugs from insurance coverage. Other political topics mentioned include disputes over seat reduction bills and tax donation caps, but these are separate from the main discussion on OTC-like drug insurance reform.

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