Industrial Competitiveness Enhancement Action Plan (January 24th, 2014, Cabinet Decision)
Summary of the “Action Plan”
 The purpose of the plan is to accelerate and deepen the implementation of priority measures related to the growth strategy, based on the Industrial Competiveness Enhancement
Act.
 The plan specifies the deadlines for and ministers in charge of regulatory and institutional reforms to be implemented over the next three years.
 Concrete actions are provided to implement the measures such as: tax reforms to promote investment in highly productive equipment, establishment of a “control tower” function
for research and development in the medical sector, full liberalization of electricity retail market, etc.

Examples of Priority Measures
Promotion of private investment and restructuring of businesses, innovation of SMEs

Employment and human resources system reform for realizing “ALL‐HANDS society”―Japan will make its economy strong and lean enough to compete in the global market bycorrecting the economy's three distortions (underinvestment, overregulation andovercompetition)―Japan will promote labor movement without creating unemployment and expand
opportunities for women and the young to play active roles in society so that people canfulfill their potential.

 Implementing schemes based on the Industrial Competiveness Enhancement Actand tax reforms including investment tax incentives.

 Drastically shifting budget from subsidies for maintaining employment withinsingle companies to subsidies for smooth labor relocation.
 Extending the period of time before limited‐term workers with advanced
expertise and relatively high income get the right to switch to unlimited‐term
employment.
 Reviewing the regulation on the period of worker dispatching.
 Reforming the “points‐based preferential immigration treatment system” to invite
more highly skilled foreign professionals.

 Passing Companies Act revision bill for promoting outside directors as early as
possible and compiling a Japanese version of stewardship code by February.
 Introducing a legal framework to promote “crowd‐funding.”* Other measures include: introducing a legislative framework to promote small businesses,
protecting regional brands, Public and quasi‐public fund investment reform in line with theroadmap, etc.

* Other measures include: review of employment insurance to promote participation in the “re‐learning” programs, extension of the Act for Measures to Support the Development of the Next
Generation, etc.

Promotion of innovation, IT utilization, and enhancement of Japan’s competitivenessto attract investment―Japan will establish itself as a “technology‐driven nation” that explores frontiers andrealize the world’s most advanced IT society. Also, Japan will achieve the world’s mostbusiness‐friendly environment by reinforcing the foundation for business activities andcities’ competitiveness.

Enhancement of competitiveness in strategic markets, promotion of global outreach―Turning social problems such as energy constraints and healthcare issues into
opportunities, Japan will win the growing world market, with its state‐of‐art technologies.

 Reviewing rice production control and halving direct payment for rice farmers fromthe production in 2014, with the aim of abolishing the payment in 2018. Also,
reforming direct payment subsidies for dry‐field crops.
 Enhancing a control‐tower function of the Council for Science and Technology
 Establishing an independent administrative agency for unified management ofPolicy.
healthcare research (the Japan Medical Research and Development Agency) .
 Designating specific regions of National Strategic Special Zones around the coming  Removing entry regulation in the electricity retail market as the second step ofMarch and approving specific regulatory measures to be applied to each zone.
Japan’s electricity system reform.
 Promoting “compact cities” while establishing public transportation network suited  Establishing a scheme to support exports of transportation infrastructure andfor the sustainable regional society and invigorating city centers.
urban development.
 Promoting personal data utilization in the “Big‐Data” age.
* Other measures include: Establishment of “Farmland bank”(intermediary redistribution scheme* Other measures include: Reconstruction of Tokyo metropolitan expressways in tandem withurban renaissance, opening up public data to promote new businesses, etc.

of farmlands) in each prefecture, Review of international trade Insurance for expanding thecoverage of risks to promote infrastructure exports.