Prime Minister Kishida, on the right, greets at a meeting on domestic investment strategies at the Prime Minister’s residence on the 21st afternoon.
The government held a public-private partnership meeting on the 21st to discuss investment expansion with the business community, compiling a policy package aimed at stimulating domestic investment. This package organizes over 200 initiatives drawn from November’s economic measures, the draft budget for fiscal year 2024, tax reforms, and more, including the establishment of domestic semiconductor bases and tax incentives for critical materials.
Private domestic capital investment for fiscal year 2023 is expected to reach a record high, comparable to the bubble era, at around 100 trillion yen. By further encouraging domestic investment through public-private collaboration, the goal is to increase this figure to 115 trillion yen by fiscal year 2027.
Prime Minister Fumio Kishida emphasized in the meeting that “This package demonstrates the government’s resolve to enhance predictability in strategic sectors and boost domestic investment in the long term.”
For decarbonization, measures include the creation of a tax reduction system for corporations based on the domestic production of electric vehicles (EVs), semiconductors, and other essential materials. The package also incorporates revisions to the Antitrust Law guidelines to facilitate corporate collaboration aimed at decarbonization.
Support measures for medium-sized enterprises, which significantly contribute to regional economies through employment and investment, are also included. The amendment of the Industrial Competitiveness Enhancement Act, slated for submission at next year’s ordinary session of the Diet, will focus on providing targeted support to companies with fewer than 2,000 employees, designating them as “medium-sized enterprises.”
Prime Minister Kishida declared, “Next year will be marked as the ‘Year of the Medium-Sized Enterprise,’ as we implement policies and construct a comprehensive policy system for medium-sized enterprises, united as one government.”