Outline of the Action Plan to Implement the Growth Strategy

Provisional The government will accelerate and strengthen the implementation of the growth strategy, known as “the Japan Revitalization Strategy”, whichis the third arrow of Abenomics, launched to change people’s expectations into actions.
 Through the discussions held after the formulation of the strategy, details and directions of the structural reforms regarding the following major
related measures, such as the submission of bills at the next extraordinary Diet session, have been embodied or these measures have been decided tobe implemented ahead of schedule. The government will firstly press on such measures.
[Related Bills to be Submitted at the Next Extraordinary Diet Session]Bills for the Industrial Competitiveness Enhancement Act, related Acts on National Strategic Special Zones, the Act to Revise the Companies Act, the Act to Revise
the Pharmaceutical Affairs Act, etc., the Act to Ensure the Safety of Regenerative Medicine, etc., the Act to Amend the Electricity Business Act, related Acts for theDevelopment of Farmland Intermediary Management Institutions, and the Act on Renewable Energy in Rural Areas

1. Infrastructure Development for Regulatory and Institutional Reforms
Boldly promote structural reforms with the three-area approach: on aregion-wide basis, on a corporation basis, and on a nation-wide basis－Creation of National Strategic Special Zones as a breakthrough to change Japan’s
economic society, and bold regulatory and institutional reforms in such fields as
medicine, education, agriculture, and city-planning≪on a region-wide basis: a bill for related Acts on National Strategic Special Zones≫－Establishment of the Special System for Corporate Field Tests to support businessexpansion to new fields through special regulatory measures on a corporation basis≪on a corporation basis: a bill for the Industrial Competitiveness Enhancement Act≫
－Establishment of the System to Eliminate Regulatory Gray Zones to check legality ofnew business to facilitate business expansion in new fields≪on a nation-wide basis: a bill for the Industrial Competitiveness Reinforcement Act ≫－Further promotion of structural reforms through collaboration between the Council for
Industrial Competitiveness and the Council for Regulatory Reform

2. Promotion of Private Investment and Industrial Metabolism
Generally mobilize all measures for the development of businessenvironments, including tax incentives, etc. in order to encouragecompanies to invest their management resources for the future－New tax incentives to promote capital investment that enhances productivity－New tax incentives to promote business reorganization－New tax incentives for corporations investing in venture funds－Promotion of the introduction of highly independent outside board members[a bill for the Act to Revise the Companies Act]
－Review of the portfolio and governance of public and quasi-public fund investment,etc.

3. Employment System Reform andEnhancement of Human Capital

4. Creation of Strategic Markets through
Structural Reforms, etc.

5. Implementation of Growth Strategy at Regional
Level and Innovation of SMEs and Small Businesses

Accelerate initiatives for enhancing humancapital and reforming the employment system,and promote university reform, including
reform of the payroll system

Create new markets that will boost Japan’s
economic growth through regulatory andinstitutional reforms as well as opening up
markets that have been dominated by thepublic sector

Implement the growth strategy by the unitedefforts of the central government and local
governments and promote initiatives for theinnovation of SMEs and small businesses－Speeding up of the utilization of private-sector humanresource businesses－Swift implementation of the zero child care-waiting list
project and development of an environment where menand women can balance work and child-rearing, etc.
－Reform of the Points-based Preferential Immigration
Treatment for Highly Skilled Foreign Professionals andshortening of the periods of stay for permitting
permanent residence for those professionals [submissionof a bill for revising the Immigration Control andRefugee Recognition Act at the next ordinary Dietsession]－Strengthening of functions of universities to createinnovations and promotion of university reform [inrelation to a bill for the Industrial Competitiveness
Enhancement Act]

－Reform of healthcare and medical markets andestablishment of the Japan Medical Research andDevelopment Agency (provisional) [bills for the Act
to Revise the Pharmaceutical Affairs Act, etc. and theAct to Ensure the Safety of Regenerative Medicine,etc.]－Strengthening of agricultural competitiveness throughconsolidation of farmland, etc. [a bill for the related
Acts for the Development of Farmland Intermediary
Management Institutions (provisional)]－Reform of electricity system and promotion of theintroduction of renewable energy [bills to amend theElectricity Business Act and the Act on Renewable
Energy in Rural Areas]－Establishment of the Council on Regional IndustrialCompetitiveness sequentially at a regional level andpromotion of full-scale local efforts involving theindustry, academia, the public sector, financial
institutions, and others－Support for the promotion of business startups, etc. inlocal areas [a bill for the Industrial Competitiveness
Enhancement Act]
－Development of a framework to energize SMEs andsmall businesses [submission of a basic bill for thepromotion of small businesses at the next ordinary
Diet session]