During this week’s current trade mission in Japan, FinanceMalta signed a memorandum of understanding (MoU) with the Fintech Association of Japan, marking a major step in deepening financial ties between the two countries.
The agreement, signed during a meeting by a FinanceMalta delegation with the Fintech Association of Japan, sets a framework for cooperation on fintech innovation, from digital payments to blockchain, and aims to boost cross-border investment confidence.
The MoU comes as FinanceMalta also seeks a double taxation agreement (DTA) with Japan, the only G7 country without such a treaty with Malta. Without a double taxation agreement, businesses face duplicate tax burdens, discouraging investment. Officials say securing the treaty is a strategic priority to facilitate long-term trade and position Malta as a gateway to Europe.
The trade mission is informed by a study commissioned from PKF Malta, which identifies fintech, sustainable finance, and insurance as sectors where Malta and Japan can build complementary partnerships. The report also highlights regulatory, cultural, and operational hurdles, underscoring the importance of local partnerships and long-term collaboration.
“Maltese fintech firms are agile and used to EU regulations, making them ideal partners as Japan moves toward digital finance,” said Graziella Grech, FinanceMalta COO. “The PKF Malta report provides a clear roadmap for success.”
The mission coincides with 60 years of Malta-Japan diplomatic ties and Malta’s pavilion at Expo 2025 in Osaka, providing a platform to showcase Malta’s regulatory and innovation strengths. Officials hope the visit will lay the groundwork for enduring financial integration, with benefits expected to be felt for decades.
The MoU was signed by Joseph Camilleri, FinanceMalta Governor, and Takafumi Ochiai, Vice Chair of the Fintech Association of Japan.
FinanceMalta’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. Officials say this step will anchor long-term collaboration in one of the fastest-growing segments of the financial industry.
The visit comes at a moment of heightened engagement. Malta and Japan will celebrate 60 years of diplomatic ties in 2025, while Expo 2025 in Osaka is already hosting a Maltese pavilion for six months. Against this backdrop, FinanceMalta hopes to position the country as a bridge between Asia and Europe.
The delegation included representatives from Bank of Valletta, Alter Domus, Bridge Advice, Zerafa Advocates, and the MFSA.
Research-driven strategy
The mission builds on insights from a recent study by PKF Malta, commissioned by FinanceMalta, 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.
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 FinanceMalta, who is leading the mission.
“By formalising our collaboration, we can give companies on both sides the 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 the PKF study.
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 financial ties.”
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 on the rise. Malta, meanwhile, has positioned itself as a nimble fintech hub, the first EU member state to legislate for blockchain and digital assets.
“Maltese fintech firms are agile and used to operating in a highly regulated EU framework,” Grech notes. “That makes them well-placed to support Japan’s digital finance evolution, while Japanese partners gain a stepping stone into Europe.”
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 bonds and ESG-aligned funds.
“ESG finance is no longer a niche,” Grech says.
“Both Japanese and European investors demand credible, transparent products. Malta’s regulatory system can provide that platform, while Japan brings scale and capital.”
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.
Challenges remain, including Japan’s regulatory framework and the cultural expectations that demand localisation of services.
“We know the Japanese market requires trust, localisation, and patience,” Grech says. “That’s why partnerships are crucial. The PKF Malta study highlights how collaborations with established Japanese firms can create solutions that truly fit local needs.”
On Malta’s side, credibility is gaining traction. Having exited the Financial Action Task Force’s grey list in 2022, the country’s regulatory regime is demonstrating increased robustness to support cross-border activity.
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,” adds Grech.
“A double taxation agreement and deepened fintech ties will yield benefits for decades to come. 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.”
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