Provisional“Growth Strategy 2016” toward nominal GDP 600 trillion yen Implementing difficult structural reforms (reforms on bedrock regulations (energy, agriculture, medical care etc.) / initiatives through National Strategic Special Zones)
 Moving forward toward the elimination of “Six Handicaps to growth” (e.g. appreciation of yen, high corporate tax rate, delay in the conclusion of TPP)・ Employment, corporate profits at
historically high level
・ However, actions of private companies(investments, wage hikes etc.) still lack force“3 challenges”, to accelerate corporate actions, in the context of the virtuous cycle of economy in motion①Stimulate potential demand and create/expand new promising markets to raise GDP to 600 trillion yen(“10 Strategic public-private joint projects”）②Enhance drastically productivity to overcome decreasing population and workforce shortage③Enhance capabilities of individuals to facilitate transformation of the industrial structure

１．“10 STRATEGIC PUBLIC-PRIVATE JOINT PROJECTS” toward GDP 600 trillion yen
1-1：Creation of new promising markets①Realize the 4th Industrial Revolution (e.g. IoT, Big Data, A.I., Robots) 【Creation of added value: 30 trillion yen (by 2020)】
Establishment of “Control tower “ function
Establish “Public-Private Council for the 4th Industrial Revolution” as headquarters of the government（replace the function of “Public-private sector dialogue for investments in the future”）- 3 bodies placed under the newly established council, “Council for Strategy on A.I. Technology”, ”Council for Promotion of
Human Resources Development to respond to the 4th Industrial Revolution”, “Robot Revolution Realization Council”- Identify priority areas for Japan, Formulate “Strategies for each priority area”, Accelerate regulatory reforms, R&D,
provision of funds as well as human resources development etc.

New mechanism forregulatory reforms- Identify necessary regulatory
reforms, by adopting a backcasting approach, based oninterim targets set by examining
future industrial structure- Reduce regulatory andadministrative costs, from theperspectives of business
operators (new method totackle in an integrated manner
regulatory reforms,
simplification ofadministrative procedures,
utilization of IT)

Data utilization projects
Supports for SMEs

Promotion of innovation

Human resources
with challenger’s spirit- Target of tripling investments by private
₋ Introduce programming education as a
Individual healthcare No inventory stock in
Smart factorycompanies in universities and public
compulsory subject in elementary
service, Utilization of the whole supply chain,
Preventive maintenance research institutions (PRI) by 2025
nursing care robots/secondary education (from 2020),
Prompt tailor-made through sensors in the ₋ Establish at least 5 strategic research-Utilize personal data
Introduce individualized education byrelated to healthproduction line
production
using IT according to the degree ofcenters of world-level (universities and-Utilize robots, sensors
PRIs),
attracting
domesticand
foreignunderstanding of individuals, Reinforce
to nursing caretalented researches etc.
mathematical and IT education in higher
Automated driving system
FinTechDrone
education, Develop top level human₋ Establish a venture creation platform, inviting
resources skillful in IT
Establish FinTech
Automated driving onRealize Drone delivery
advisors from private sector (providing
eco-system utilizing
express way in 2020,
supports
fromthestageoffindingpromising
service in 3 years
₋ Introduce “Green card system foropen innovation
3D map information
technology seeds in regions, to the stage ofhighly skilled foreign professionals”,
fostering ventures to attack international

according to which requirement for period- Data utilizing platforms across companies and organizationsof stay to receive permanent residencymarket)- Promotion of sharing economy, reinforcement of measureswould be the shortest in the world.
₋ Create inter-ministerial headquarters for R &against cyber threats etc.
₋Create “Council for Promotion of Human
D and commercialization on A.I.
Resources Development to respond to- Supports for SMEs (reduction by 20% of introduction costs fortechnologies (Council for strategy on A.I.
the 4th Industrial Revolution”
smaller robots / support 10 thousands SMEs for use of IT)technologies)※Realize a society where people can feel affluence by producing new values and services through the 4th industrial revolution (Society 5.0)

“Growth Strategy 2016” toward nominal GDP 600 trillion yen
1-1：Creation of new promising markets

1-2 : Further promotion of Local Abenomics②Toward a world leading health care country【Market size: 16 trillion yen (2011) => 26 trillion yen (2020)】⑥Enhance productivity in service industries【Added value: 343 trillion yen (2014) => 410 trillion yen (2020)】

₋ Promote health preservation/disease prevention services, not covered by public insurance(create 4 trillion yen market)
₋ Reduce burden on nursing care, by using robots and sensors (examine institutional
measures including revision of nursing care compensation, standards of personal staffing orutilities)
₋ Support medical caret and develop innovative drugs by utilizing big data etc. (institutions incharge of safe and security-ensured management of personal medical data)
₋ Promote individualized medical care or health care services, using IoT etc. (collection,analysis and utilization of personal data on medical prescriptions / examinations)₋ Acquire global market through international development of Japanese medical services andthrough contribution to international health activities etc.

₋ Target to double the increase in productivity to 2%
₋ New legal framework to enhance productivity in 7 sectors (e.g. accommodation,
truck transport, restaurant and take-out meals, medical care, nursing care,childcare, wholesale/retail) through property tax reduction or financial supports byregional financial institutions etc.

③Overcome environment-energy constraints and expand investments【Energy related investments: 18 trillion yen (2014FY) => 28 trillion yen 2030FY)】
₋ Promote energy efficiency activities (coverage of the Energy Efficiency Benchmark Programto 70% of all industries in 3 years, supports for SMEs), Renewable energies (maximum
introduction while reducing costs by the revision of FIT)
₋ Strengthen resource security
₋ Create negawatt trading market by 2017
Realize Hydrogen-based society (FCV etc.) (related investments: 1trillion yen (2030)) etc.

④Foster sport sector to become a growing industry【Market size: 5.5 trillion yen(2015) => 15 trillion yen(2025)】
₋ Enhance attractiveness and profitability of sport facilities, Combine sports with IT, health care,
tourism, fashion etc.

⑤Revitalize markets for transaction of existing houses and reform【Market size: 11 trillion yen(2013) =>20 trillion yen(2025)】
₋ Establish an appropriate transaction and finance system for evaluating asset value etc.

⑦Innovate small, medium and intermediate-sized firms
₋ Promote the provision of risk money for growing firms, based on “local benchmark”,
not based on mortgage or personal guarantees, Promote IT utilization for small,medium and intermediate-sized firms etc.

⑧ Promote proactive agriculture and exports【Market size of vertical integrated (from production to sales)
agriculture: 4.7 trillion yen (2013FY) => 10 trillion yen (2020FY)】
₋ Consolidate farmland, Reduce agricultural material costs, Reform the distribution ofagricultural products₋ Promote smart-agriculture (remote monitoring and automated driving tractors in2020), Establish cooperation among industrial sectors and agricultural sector⑨Make tourism a key industry【consumption by foreign visitors*: 3.5 trillion (2015) => 8 trillion
yen (2020) => 15 trillion yen (2030) 】*Consumption by visitors (foreigners and Japanese): 25 trillion yen (2015) => 29 trillion yen(2020) => 37 trillion yen (2030)

₋ Reinforce tourism management in region, Develop human resources for tourism
management, Improve sightseeing excursion routes, Branding of national parks,
Utilize cultural properties, Reform paid holiday etc.

1-3 : Stimulation of domestic consumer sentiment⑩Stimulate domestic consumer sentiment through public-private sector collaboration etc.

“Growth Strategy 2016” toward nominal GDP 600 trillion yen
2. REGULATORY AND INSTITUTIONAL REFORMS TO REALIZE
4. TAKING IN GROWING MARKET OUTSIDEREVOLUTION IN PRODUCTIVITY
 Introduction of new mechanism for regulatory and institutional reforms
₋ Identify necessary regulatory and institutional reforms, by adopting a back-casting approach, basedon interim targets set by examining future industrial structure₋ Reduce regulatory and administrative costs, from the perspectives of business operators (newmethod to tackle in an integrated manner regulatory reforms, simplification of administrative
procedures, utilization of IT) etc.
 Utilization of National Strategic Special Zones to accelerate structural reforms- Implement remaining reforms, in two year time period (FY2016-FY2018) for acceleration of intensive
reforms etc.
 Further reinforcement of Corporate Governance- Improve the effectiveness of board of directors, promotion of constructive dialogues through information
disclosure- Provide risk money for growing firms, through vitalized financial and capital markets etc.
 Further utilization of private sector resources to public services / facilities (PPP/PFI etc.)【Projects volume: 2.4 trillion yen (FY2013-14)=> 21 trillion yen (FY2013-2022)】- Promote PPP/PFI methods including concession-type PFI etc.

3. PROMOTION OF INNOVATION / PROVISION OF HUMAN RESOURCES
WITH CHALLENGER’S SPIRITS Promotion of innovation and venture business₋ Target of tripling investments by private companies in universities and public research institutions (PRIs) by2025
₋ Establish at least 5 strategic research centers of world-level (universities and PRIs) , attracting domestic andforeign talented researches.
₋ Create inter-ministerial headquarters for R & D and commercialization on A.I. technologies (Council for strategyon A.I. technologies)
₋ Establish a venture creation platform, inviting advisors from private sector (providing supports from the stage offinding promising technology seeds in regions, to the stage of fostering ventures to attack international market),
Establish a venture support consortium involving governmental bodies (joint planning of policies for support,
prioritization of supports
₋ Promote investments in intangible assets, R&D etc.

 Development and securement of human resources who drive the economicgrowth₋ Introduce programming education as a compulsory subject in elementary and secondary education (from 2020),
Introduce individualized education by using IT according to the degree of understanding of individuals,
Reinforce mathematical and IT education in higher education, Develop top level human resources skillful in IT.
₋ Introduce “Green card system for highly skilled foreign professionals”, according to which requirement for periodof stay to receive permanent residency would be the shortest in the world.
₋ Create “Council for Promotion of Human Resources Development to respond to the 4th industrial
revolution“ etc.

 Creation of employment environment and promotion of social participation of women, toremove the constraints to growth₋ Reinforce initiatives to correct the practice of prolonged working hours
₋ Promotion of social participation of women(increase in additional childcare facilities, promotion of managementon diversity) and elderly persons

Support the expansion of SMEs to international markets, making themost of TPP 【13.8 trillion yen (2013FY) => 25.2 trillion yen (2020FY)】- Provide comprehensive supports to SMEs(including intermediate sized firms),including hands-on supports by experts, through “Consortium aiming at expansion ofexports” involving governments and private sector etc.

 Expansion of the exports of infrastructure systems【16 trillion yen (2013) => 30 trillion yen (2020)】- Engage in strategic human resources development, Promote Japanese “high quality
infrastructure investment” to become a global standard, Further accelerate theprocedures for international yen loans/overseas loans and investments, Enhance
corporation with international development banks etc.

Promotion of inward foreign direct investment to Japan【24.4 trillion yen (2015) => 35 trillion yen (2020)】- Support local governments’ initiatives to invite foreign investments, Promote alliances,including financial alliances, between SMEs and foreign firms, Improve drasticallybusiness and living environment to remove obstacles to invite foreign investments

Promotion of conclusion / revision of economic partnership agreements(EPAs), investment agreements and tax treaties- Promote strategically and with speed negotiations of economic partnershipagreements such as Japan-EU EPA, RCEP and Japan-China-South Korea FTA- Promote negotiations of new tax treaties and of revision of existing investments
agreements and tax treaties etc.

５．Utilization of growing momentum for reforms
Promote leading projects for year 2020
- Implement following projects, by 2020 Tokyo Olympic and Paralympic games, toshowcase Japanese cutting-edge technologies, considering that thesetechnologies could continue to be in practical use after 2020 as a legacy of Tokyo
Olympic and Paralympic games
Automated driving system, Decentralized energy system, Advanced robot
technologies etc.