Hiroya Masuda, Director and Representative Executive Officer, President and CEO, Japan Post Holdings Co., Ltd.

Revitalizing local areas with a nationwide post office network

Director and Representative Executive Officer, Japan Post Holdings Co., Ltd.　Hiroya Masuda(Masuda Hiroya)

Profile
Joined the Ministry of Construction in 1977. After serving as Governor of Iwate Prefecture in 1995 (3 terms, 12 years), he served as Minister of Internal Affairs and Communications and Minister of State for Special Missions in the Cabinet Office in 2007 in the Abe-Fukuda Cabinet. In 2009, he became an advisor to Nomura Research Institute and a visiting professor at the University of Tokyo Graduate School of Public Policy. In 2020, he became President of Japan Post Holdings Co., Ltd. He is also co-chair of the Reiwa National Council (Reiwa Provisional Council) and vice-chair of the Population Strategy Council. His hobbies include watching sports such as rugby, horseback riding, skiing, canoeing, and cycling.

President Masuda Hiroya of Japan Post Holdings Co., Ltd. has worked in central government ministries and agencies, served as the governor of Iwate Prefecture, the Minister of Internal Affairs and Communications, a visiting professor at a university, and head of a private company. He has experience in the public sector, politics, academia, and industry. The spread of email and social media has significantly impacted the postal business.ShrinkAmid this, the business transformation of the Japan Post Group, which is closely tied to local communities, has been attracting attention. With the theme of population decline, we spoke to him about the future business possibilities from both the national and corporate perspectives.

During my university days, I never thought I would work for a government ministry. Rather than attending classes seriously, I spent my student days traveling around the country and reading a lot of books. The job-hunting season was later than it is now, so I took the national civil service exam in October of my fourth year of university. I didn't have a specific dream, but I decided to follow in the footsteps of my father, a former civil servant, and join the ministry.

■ The issue of population decline became my life's work

At the Ministry of Construction, I was primarily in charge of urban development. Drafting urban plans required population estimates for each city. At the time, Japan's population was still growing overall, and many cities in Japan were commuter towns, so I had to predict the population capacity needed to maintain a comfortable living environment. It was fascinating to see how population estimates varied significantly depending on the characteristics of each city, and I naturally developed the habit of thinking about them on a daily basis. The "depopulation issue" later became my life's work when I became governor of Iwate Prefecture in 1995, where I witnessed the reality of rural areas. While Japan's overall population began to decline in 2008, Iwate Prefecture's population had already begun to decline when I became governor. This made me keenly aware of the need for "downsizing," concentrating infrastructure, transportation, and other functions that had been dispersed among smaller regional cities in urban areas. While the need for this was difficult to understand at the time, 10 years after the announcement of the disappearance of rural areas, it has become an important issue. Furthermore, during my term as Minister for Internal Affairs and Communications, the number of municipalities, which had been around 3000, merged to around 1700. While there were pros and cons, I believe that this strengthened the financial base of municipalities and enabled them to deal more efficiently with issues such as a declining birthrate and an aging population. The "depopulation issue," which I have been working on as my life's work for many years, is an issue that university students will inevitably face once they enter the workforce, no matter what kind of work they do. While the depopulation issue is currently an urgent issue that Japan Post must address, it is also an area in which the Group's strengths can be utilized.

■ Leveraging our network to support regional logistics

The Japan Post Group has a 154-year history, supporting modern Japan's postal and logistics services, primarily through its postal service. Currently, the group employs approximately 35 people and is also focusing on local co-creation initiatives, such as dispatching personnel to regional areas. The group's appeal lies in its nationwide network of approximately 24,000 post offices. While the use of mail, such as New Year's cards, has declined significantly in recent years due to the advancement of email and social media, we believe this network allows us to provide services that are more closely tied to the local community. For example, we collaborate with other companies to deliver groceries purchased at supermarkets to homes and transport locally grown crops from fields to market. Amid concerns about population decline and an aging population, how to sustain local government and lifestyles is a key issue. Today, online orders can arrive as early as the same day or the next day. However, in sparsely populated areas, a system that can better address the needs of each individual is essential. "Just need a package delivered right now?" We help with those small deliveries. For example, let's say there is a producer who wholesales the vegetables he harvests to restaurants. When the producer is busy with harvesting, we can deliver the vegetables to restaurants on their behalf, saving them the trouble. We believe that it is precisely because the Japan Post Group specializes in transportation to maintain regional logistics and has a delivery network covering a wide area that we can focus on regional revitalization.

■ Taking on the role of local government

In recent years, the Japan Post Group has also begun to see the potential for taking on a role in local government beyond logistics. This is due to the need to replace local government staff with substitutes due to a shortage of city hall staff caused by population decline. In addition to city halls, initiatives are also underway, such as merging post offices with train stations, allowing post office staff to act as station attendants, selling tickets and announcing arrivals and departures. As populations decline and lateral connections weaken, post offices and train stations are important as hubs for local residents to gather. Furthermore, in areas with few doctors, online consultations are being conducted within post offices to protect the lives and health of local residents. With advances in online consultation technology, MRI images and photographs can now be sent to doctors from any distance. Furthermore, surgeries that were previously only possible on-site can now be performed remotely. We are currently preparing post offices to serve as medical centers for these surgeries, as well as for prescription collection and delivery, and payment processing. As the population decline accelerates, we aim to establish post offices as regional hubs by taking on the work of local governments, leveraging the strengths of our physical locations while valuing a locally-based perspective.

Message to university students

In today's world, where there is a lot of talk about a declining population, the younger generation may be feeling a lot of pressure. However, I believe we are now in an age where it is easier to see the presence and individuality of each individual. I think there are more opportunities to take on new challenges than before, so I encourage you to multitask and try a variety of things to seize the chance to succeed. You will probably fail a lot, but successful people have failed many times. Cherish the lessons you can gain from failure.

Interview with Student Newspaper Online on April 3, 2025 by Sophia University fourth-year student, Himawari Shirasaka

Sophia University 4th year student Shirasaka Himawari / Josai International University 2nd year student Watanabe Yurie / N High School 3rd year student Hattori Masaaki