Finance Malta’s trade mission to Japan delivered more than a showcase of Malta’s financial services sector. The delegation not only advanced long-running efforts for a double taxation agreement (DTA) with Tokyo but also signed a memorandum of understanding with the Fintech Association of Japan.

Finance Malta’s trade mission in Japan.

The agreement with the Fintech Association of Japan, supported by Osaka Expo organisers JIAM, is being billed as a milestone that will create a framework for cooperation between fintech firms. Areas of collaboration include joint projects, knowledge sharing, and regulatory dialogue.

“This memorandum signals that Malta and Japan see real value in working together on fintech, from digital payments to blockchain innovation,” explains Graziella Grech, Chief Operating Officer of Finance Malta, who is leading the mission. “It gives companies confidence to invest and expand.”

She adds that the MoU will raise visibility for Maltese start-ups in Japan while helping Japanese firms use Malta’s position and resources to access the EU single market—a key strategic advantage identified in a PKF study.

Research-driven strategy

The mission builds on insights from a recent study by PKF Malta, commissioned by Finance Malta, which identifies fintech, ESG finance, and insurance as sectors where Malta and Japan can develop complementary partnerships. The report underscores that this is more than a promotional exercise, mapping regulatory, cultural, and operational considerations and offering a roadmap for firms on both sides.

Closing the tax gap

Alongside the fintech pact, the mission also seeks to advance talks on a double taxation agreement. Malta currently has treaties with all G7 countries except Japan. Without such a deal, businesses face duplicate tax burdens that discourage investment.

“Securing a double taxation agreement with Japan is a strategic priority,” Grech says. “It would remove structural barriers and foster long-term investment relationships. PKF Malta’s report highlights this as a critical enabler for sustainable growth.”

Complementary strengths

The case for closer collaboration rests on complementary strengths: Japan has one of the world’s largest financial systems, but fintech adoption still lags behind global peers. Cash remains dominant, though digital banking and mobile wallets are rising. Malta, meanwhile, has positioned itself as a nimble fintech hub, the first EU member state to legislate for blockchain and digital assets.

Insurance is another area highlighted in the PKF Malta study. Malta’s flexible “protected cell” regime attracts captives, while Japan’s mature market faces demographic and digital challenges, creating scope for collaboration.

Diplomatic momentum

The mission coincides with several milestones: Japan opened its embassy in Valletta in 2024, and business forums and cultural exchanges are expanding. PKF Malta interprets these developments as a shift from traditional trade links to deeper financial integration.

“A double taxation agreement and deepened fintech ties will yield benefits for decades to come,” says Grech. “For Malta, this mission is another opportunity to reconfirm itself as an EU gateway for fintech and sustainable finance. For Japan, it offers access to a small but strategically located partner. Reaching a double taxation agreement will be a win for both countries.”

Beyond fintech

ESG finance and insurance also present opportunities. Japan’s pension funds and institutional investors face growing pressure to increase ESG allocations, while Malta’s regulatory system already facilitates green funds and ESG-aligned investments.

“ESG finance is no longer a niche,” Grech adds. “Both Japanese and European investors demand credible, transparent products. Malta’s regulatory regime can provide that platform, while Japan brings scale and capital.”

A mission with momentum

Optimism prevails. Expo 2025 offers a high-profile platform, the PKF Malta report provides a clear roadmap, and the MoU with the Fintech Association of Japan delivers an immediate milestone.

“Beyond new business leads, this mission lays the groundwork for long-term cooperation between Malta and Japan,” Grech concludes.

Building people-to-people links

This dynamism should work both ways, with more young Japanese travelling abroad to learn about other societies. A recent development in Malta–Japan relations has been the growing number of Japanese students choosing Malta to study English. FELTOM, the Federation of English Language Teaching Organisations in Malta, recently confirmed Japan as one of its top new markets.

“Japanese students travelling to other countries are not only learning English but also building a new and much-needed bridge with other cultures,” says Mr Yamaguchi.

“These young Japanese are precious potential assets for both Japan and Malta who will lead future collaboration and cooperation in cultural and economic development for both countries.”

The value of trust

Turning to business opportunities between Malta and Japan, Mr Yamaguchi highlighted cultural differences that must be understood and respected.

“The Japanese expect the highest standards. When it comes to food, for example, umami quality and hygiene standards are extremely high. But we seek these levels in all aspects of life, and this is why we expect the same in business,” he explained.

More than anything, he stressed, the Japanese prize trust.

“We are a quiet and patient people. Things might take longer to materialise, but that is because we want to ensure the highest standards. When we see high standards, that is when you will win our trust. And once Japanese trust is won, it forms the most solid relationship any business could aspire to,” he concluded.