Provisional Translation
FY2019 Report on Priority Measures and Others for Innovative
Business Activity Action Plan

1.

About this Report

In December 2012, the “Japan Economic Recovery Headquarters” was established as a cabinet decision, chaired by thePrime Minister and composed of all the Ministers of States, under which they decided to hold the “Council for Industrial
Competitiveness” in January 2013, and to hold, in September 2016, the “Council for Future Investment” that expansively
integrated the Council for Industrial Competitiveness and the communications between the public and private sectors toward
future investments, and they have done the following so far:•

Made the cabinet decision of the “Japan Revitalization Strategy” in June 2013•

Made the cabinet decision of the “Implementation Plan regarding Reinforcement of Industrial Competitiveness” inJanuary 2014•

Made the cabinet decision of the “Revision 2014 of the ‘Japan Revitalization Strategy’ ” in June 2014•

Made the cabinet decision of and submitted to the Diet the “Report on Priority Measures for Reinforcement ofIndustrial Competitiveness of FY2015” in February 2015•

Made the cabinet decision of the “Implementation Plan regarding Reinforcement of Industrial Competitiveness (2015version)” in February 2015•

Made the cabinet decision of the “Revision 2015 of the ‘Japan Revitalization Strategy’ ” in June 2015•

Made the cabinet decision of the “Implementation Plan regarding Reinforcement of Industrial Competitiveness (2016version)” in February 2016•

Made the cabinet decision of and submitted to the Diet the “Report on Priority Measures for Reinforcement ofIndustrial Competitiveness of FY2016” in February 2016•

Made the cabinet decision of the “Japan Revitalization Strategies” in June 2016•

Made the cabinet decision of the “Implementation Plan regarding Reinforcement of Industrial Competitiveness (2017version)” in February 2017•

Made the cabinet decision of and submitted to the Diet the “Report on Priority Measures for Reinforcement ofIndustrial Competitiveness of FY2016” in February 2017•

Made the cabinet decision of the “Future Investment Strategy of FY2017” in June 2017•

Made the cabinet decision of the “New Economic Policy Package” in December 2017•

Made the cabinet decision of the “Future Investment Strategy of FY2018” and the “Implementation Plan regarding
Innovative Business Activities” in June 2018•

Made the cabinet decision of the “Implementation Plan for Growth Strategy / Follow-up on the Growth Strategy /Implementation Plan regarding Innovative Business Activities of FY2019” (hereinafter called “Implementation
Plan”) and made the cabinet decision of and submitted to the Diet the “Report on Priority Measures for
Implementation Plan for Innovative Business Activities of FY2018” in June 2019.

This Report pulls together the contents the measures, their progress and the status of implementation, etc. of the measures
1Provisional Translation
relating to innovative business activities specified in the Implementation Plan (hereinafter called “Priority Measures”).
Article 6, Section 9 of the Act on Special Measures for Productivity Improvement (2018 Law, No. 25) requires preparationof s report for every year concerning the status of the progress and implementation of the Priority Measures as well as theresult of their evaluation, and its submission to the Diet. This Report has been prepared for FY2019 pursuant to this rule.

2

Provisional Translation
2.

Status of Progress and Implementation and EffectivenessI.

Realization of Society 5.0

1.

Development of Rules for the Digital Market(1) Major progress of KPI1

《KPI》Create 30 projects for cross-industrial/operators data sharing by FY2020. 【２】⇒32 cases (February 2020)(2) Major Progress of measures
Item of Measures
Establish an expert
organization toevaluate the statusof competition in
the digital market
for the Cabinet
Secretariat

Contents of Measures and
Implementation Period
・Quickly create an organization ofexperts for domestic and foreign data
digital market comprised of experts
with diverse and advanced
knowledge across ministries andagencies (“Digital Market
Competition Headquarters”(provisional name) ). This
organization is granted the authority
for promotion of innovation throughdealing with various problems
relating to date usage including data
portability and opening of API, alongwith the authority to hear the reporton result of investigation based onrelated legislation such as the Act on
Prohibition of Private
Monopolization and Maintenance ofFair Trade (1947 Law, No. 54,
hereinafter called “AntimonopolyAct”), the authority for planning andgeneral coordination of the basic
policy regarding the digital market,
and the authority to cooperate andcollaborate with competition
authorities of other countries, from

Status of Progress and
Implementation
・ Pursuant to the “On theestablishment of the DigitalMarketCompetition
Headquarters”(cabinetdecision on September 27,2019),
establishedtheDigital Market Competition
Headquarters that takes
charge of evaluation ofdigital market and planninganddesigningofcompetition, as well as thegeneral coordination withdomestic and foreign related
agencies, with the purpose of
speedyandeffective
implementationofcompetition policy, in orderto promote competition andinnovation in digital market.
Also, established on thesame day the digital market
competition council by thedecision of the said
Headquarters
and
implemented investigation

Minister in
Charge2
Prime Minister(the minister inchargeof
economic
revitalization,
ministerappointed by thecabinet office incharge of affairs
relating to the
Fair
Trade
Commission),
MinisterofInternal Affairs
andCommunications, Minister of
Economy, Tradeand Industry

The number in parentheses at the end of KPI is the reference number in the “Regarding the Progress of KPI”
attached, shown just for reference.
2 The Prime Minister is listed here as the minister in charge of the affairs relating to the Cabinet Secretariat and the
Cabinet Office, because “Minister in charge” under Article 6, paragraph 2, in (ha) of each of (3) to (5) of the Act on
Special Measures for Productivity Improvement is said to refer to the chief minister under the Cabinet Law (1947
Law, No. 5). However, as a reference in handling the business of evaluation, etc. of the progress of the Priority
Measures and the effect of implementation based on the Act on Special Measures for Productivity Improvement,
the ministers of state who support the Prime Minister on the applicable measures as of the time of formulation of
the Implementation Plan are listed in parentheses.
31Provisional Translation
the viewpoint of overviewing andassessing the digital market where
global digital platform companies
compete with each other andpromotion of competition andinnovation.
The Digital Market Competition
Headquarters (provisional name) will
create the strategic framework for adata-driven society through close
collaboration with IT General
Strategy Headquarters, theCybersecurity Strategy Headquarters
and various ministries and agencies.
・ Also, under the Cabinet
Secretariat, the government begins
in stages the lump sum request andbloc appropriations of budgets
relating to project management of
the government’s information
system with an eye on the serviceoriented operational reform
throughout the year and the digital
infrastructure of the government.

Development ofrules for ensuringtransparency andfairness of trading
between platform
company and users(Corporate Merger)
・Improve the guideline and/or legal
system for corporate merger review
that includes evaluation of value ofdata. At that time, be careful not tointerfere with innovation.

4and discussion on important
issues relating to digitalmarket.

・ In August 2019, thegovernment designated the“Promotion of formation andutilization of the second
commongovernmental
platform, and utilization /intention of utilization ofcloud service by thegovernment” as an important
project of the government,
and the focused management
is under way by directcontrol of the government
CIO. Also, with regard to
the lump sum request andblocappropriationsofbudgets,
theCabinetSecretariat made the lump
sum request for the expenses
necessary for maintenanceand operation of 34 systems
at the budget demands for
2020, and posted the sum of
67.4 billion yen.

Prime Minister(ministerincharge of IT
policy), MinisterofInternal
AffairsandCommunications, Minister ofFinance・Based on the arrangement fordeveloping
rules
for
antimonopoly law including
the evaluation of data at the
Digital Market CompetitionCouncil on December 17,
2019, the Fair Trade
Commission on that day
revisedthe“Operation
Policy for Antimonopoly
Law relating to Corporate
MergerReview”
and“Handling Policy relating toProcedure for corporate

Prime Minister(ministerfor
special missionof Cabinet Officein charge ofaffairs relating to
the Fair Trade
Commission)

Provisional Translation
merger review”.
(Transparency/ fairness of tradepractices, etc.)
・Improve legal system and guideline
for ensuring transparency andfairness of trade practices, etc.thatarise uniquely in the digital market.
For this purpose, try to submit a bill
“Digital platformer tradingtransparency law” (tentative name) tothe 2020 Diet.

5

・ The
digitalmarketcompetition council on
December
17,
2019summarized the following
points: (1) direction of thebill“digital
platformer
trading transparency law”
(tentative name at the time),(2)
directionofreconsideration of the “Acton the Protection of Personal
Information” (2003 law, No.
57;
hereinafter
called“Personal
Information
ProtectionLaw”),(3)development of rules for the
antimonopoly law including
evaluation of data (revisionof guidelines, etc. forcorporate merger by the Fair
Trade Commission), (4)handling of abuse of superiorbargaining position by digitalplatform operator against
customers
relating
toacquisition/use of personal
information,etc.
(formulation of guideline for
consumer superiority by the
Fair Trade Commission), and(5) discussion points forevaluation of status ofcompetition in the digitaladvertisement market.
Also, at the digital market
competition council on
January28,
2020,alegislative bill regarding
improvement of transparency
and fairness of the specificdigitalplatformwassummarized, and it was
submitted to the 201st
National Diet.

Prime Minister(the minister inchargeof
economic
revitalization, theministerfor
special missionof Cabinet Officein charge ofaffairs relating to
the Fair Trade
Commission),
MinisterofInternal Affairs
andCommunications, Minister of
Economy, Tradeand Industry

Provisional Translation
Review of Personal
Information
Protection Law

・With regard to the Personal
Information Protection Law, devise
some means of preventing
undesirable usage of personal
information, including adoption of
the system to allow individuals todemand corporations, etc. to stopusing personal data of themselves,and measures applicable to domestic
and foreign corporationsindiscriminately, and also withregard to anonymized processed
information that has not been fully
utilized, consider reviewing it so as
to promote more active utilization,and strive to submit a reform bill tothe ordinary session of National
Diet’s of 2020.

・ Based on the “Personal
Information Protection Law,so-called system reformoutline subject to review
every 3 years” publicized in
December 2019, and theresult of invited suggestions
for the said outline, a reformbill 3 for the Personal
Information Protection Law,etc. was submitted to the201st National Diet, loadedwith measures necessary
from the view points of therise in awareness of own
personal
information,balance of protection basedon technological innovation
and utilization, response to
the new risk
associatedwith increased circulation
cross-border data.

Prime Minister(the minister for
special missionof Cabinet Officein charge ofaffairs relating tothePersonal
Information
Protection
Commission)

Promotion oftransfer of dataand opening

・The government considers specificsystem designs about portability and
API opening for each specific fieldsuch as financial field and medical
field. Also regarding legacy
regulations, etc., develop rules inconformity with digital society.

・ At the digital market
competition council on
December 17, 2019, “points
to be discussed in the future”
were sorted out regarding thedigital advertisement field,
which is the subject ofmarket evaluation as a
specific field. The subject
related to the access toaccumulated data was picked
up at that time, and thediscussion shall continue
toward the mid-term sortingin the spring of 2020.
・ In the summary of thelegislative bill regarding
improvement of transparency
and fairness of the specificdigital platform arranged atthedigitalmarketcompetition council on
January 28, 2020, disclosureof information regarding
access to data of transactionsof merchandise, etc. was also
included as a regulation.

Prime Minister(the minister inchargeof
economic
revitalization, theministerfor
special missionof Cabinet Officein charge ofaffairs relating to
the Fair Trade
Commission,
the minister for
special missionofCabinetOffice,theministerfor
special missionof Cabinet Office(finance),theministerfor
special missionof Cabinet Office(regulatory
reform)),MinisterofInternal Affairs

3Legislative bill to reform part of the law regarding protection of personal information
6

Provisional Translation

International
discussion forrealization of
DFFT anddevelopment ofrules for data
circulation at WTO

・It is necessary to aim at promotion ofinternationally free flow of data,
allowing data that is useful for
resolving problems of business andsociety to freely go around without
being conscious of national borders,
while maintaining the trust for7

・With respect to the financefield,
attheindustry/government council
called “FinTech/ Cashless
Trend”, the first meeting(held on October 18, 2019)
and the second meeting (heldon February, 27, 2020), an
examination was held about
opening of API to investigate
the status of connection,
conditions for connection,and the like between banks
and electronic payment
agencies,from theviewpointofpushing
forward the innovation suchas practical application of
FinTech.
・With respect to the medical
field, in November 2019, wesummarized the points to beconsidered when we examine
the handling of health , etc.at
PHR, such as effective
coordination of information
by standardization of data
format and opening of API,etc. and how to set rules
necessaryforprivatebusiness operators. Also,
based on the said points to beconsidered, we are integrally
considering the utilization ofhealth, medical and nursing
information, with the goal ofpromoting the system toallow each individual tograsp his/her own health careinformation electronicallyand the system to check it at
medicalinstitutions
nationwide.
The
time
schedule for development ofspecific system is expected tobe out by summer of 2020.
・At the G20 Osaka Summit inJune 2019, an agreement wasreached on the concept of“data free flow with trust(DFFT)” that promotes freeflow of data by securing the“trust” of consumers andandCommunications, Minister of
Economy, Tradeand Industry

Prime Minister(the minister inchargeofinformation
technology (IT)policy,theministerforProvisional Translation
privacy, security and intellectual
property right. For that goal, Japan
will have leadership of leading theinternational discussions, taking
advantage of opportunities like G20
under the concept of “data free flow
with trust (DFFT)”.

businesses regarding privacy
and security, and the “G20
Osaka Leaders’ Declaration”
was pronounced. Also, at
the opportunity of thisSummit, the leaders of 27
countries issued the “Osaka
Declarationon
DigitalEconomy” to create “Osaka
Track” that is the process fordeveloping
internationalrules for digital economy,
especially data flow andelectroniccommercial
transactions.

special missionof Cabinet Officein charge ofaffairs relating tothePersonal
Information
Protection
Commission),
MinisterofInternal Affairs
andCommunications,
Foreign
Minister,
MinisterofEconomy, Tradeand Industry

・For the negotiation of rules regarding
electronic commercial transactions at
WTO including free flow of data, thegovernment will push forward theformation of international consensus
by working with as many member
countries as possible for creating
high-level rules.

・Under the “Osaka Track” andbased on the idea of DFFT,
thegovernment
has
promoted a variety of rulemaking, from data flow andelectroniccommercial
transactions to regulation andgovernance of each country,
in various international
stages, by having theindustrial circles involved aswell. Especially with respect
to the negotiation of WTO’s
electroniccommercial
transactions, the government
conducted discussions withthe goal of making specificrules including free flow ofdata by holding five meetingsof negotiation since thesummer of 2019. Also, thegovernment
deliveredmessages at WTO publicforum or at the global forum
on OECD trading, and thelike, about the importance ofrule making at WTO, thenecessity of discussing
digital policy by the public
and private sectors.

Prime Minister(the minister inchargeofinformation
technology (IT)policy,theministerfor
special missionof Cabinet Officein charge ofaffairs relating tothePersonal
Information
Protection
Commission),
MinisterofInternal Affairs
andCommunications,
Foreign
Minister,
MinisterofEconomy, Tradeand Industry

8

Provisional Translation
For consolidationof 5G andrealization of G
space society

・Towards the realization of・ For popularization andSociety5.0, the government willdevelopment of the service,
begin the 5G service in the districtsetc., the government drew upof all prefectures by the end of thethe “ICT infrastructure local
year 2020, and will deliver thedevelopment master plan” insupport necessary for nationwide
June 2019 in order todevelopment of information
integrally
promotethecommunication infrastructure suchmeasurestosupportas 5G base stations and optical fiber
developmentofICT
by telecommunication carriers, etc.,
infrastructure as well aswith a care for ensuring security, andmeasurestofacilitate
accelerate the 5G consolidation planutilization of 5G. Based onby the year 2024. At that time, for
this,
the
government
the goal of realization of countrysidepropelled
supportforrevitalization, the support is provided
development such as 5G basewith the priority to pioneering local
stations and optical fiber for
public organizations that havethe stations, and also plans to
specific engagements to resolve theirstart the initiative from theown local problems.
year 2020 to support thecreation of a model for
resolving local problems bypioneering local publicorganizations that havespecific engagements toresolve their own local
problems by utilizing local
5G, etc. as well as local
businesses.
In
thisconnection, the 5G services
started at some localities
from the spring of 2020.

Refinement ofregulation on thebasis of societal
implementation ofdigital technology

・It is pointed out that the way to
・ The government began Prime Minister
ensure safety and security is changing
demonstration projects in (the minister inon the background of the exponential
early part of 2020 on the chargeofdevelopment of digital technology,
mid-to-long term view, with economic
and that the regulatory framework isa focus on 3 fields of revitalization, thenot catching up with the change. It ismobility, FinTech/finance ministerfornecessary to push forward regulatory
and construction, and began special mission
reform across various industries byidentifying problems and of Cabinet Office
coordinating with the Regulatory
challenges in the way of (regulatory
Reform Promotion Council.
regulation in the future by reform)),
holding the Conference for Ministerof
Thorough
Structural Economy, Trade
Reforms (the 1st meeting of and Industry“Refinement of regulation
9

MinisterofInternal Affairs
andCommunications

Provisional Translationon the basis of societal
implementation of digitaltechnology”,
heldon
February 14, 2020).

10

Provisional Translation
2.

FinTech/Finance(1) Major progress of KPI《KPI》By June 2020, introduce open APIs into over 80 banks. 【10】⇒As of March 2020, 129 out of 136 Japanese banks (excluding foreign bank branches)
have announced that they will introduce API. 124 out of 129 banks have announced
they will introduce API by June 2020.
《KPI》By June 2025, double the percentage of cashless transactions to about
40%. 【11】⇒2019: 26.8%* The numerator is the sum of payments made by credit cards, debit cards, electronicmoney, and QR codes in 2019. The denominator is the private final consumption
expenditure in 2019 (in nominal terms, the second preliminary estimates).
(2) Major Progress of measures
Item of Measures
Realization offunction-based,cross-sectoral
financial
regulations

Contents of Measures andStatus of Progress and
Implementation Period
Implementation(Fields of payment)
・The government plans to adopt a
・ Regarding money transfer
cross-segment framework in theserviceprovider,“thepayments field that has been cited as
Amendment Bill of the Act
an area in which the vertical structure
on Sales, etc. of Financial
by business segment under current
Instruments, etc. for thelaws interferes with free selection of
Purposeof
Improvingbusiness models and services by
Convenience for Users ofservice providers. This initiative aims
Financial
Servicesandto realize flexible, highly convenient
Protecting Them”, whichcashless payment methods, besides
incorporates the revises such
existing bank fund transfers andas developing a new category
conventional relatively high-sumof money transfer service
credit card payments, through market
providers that can handle
entry by newcomers and competition
remittances over the existing
among various services by ①
upper limit (1 million yen),allowing seamless payments thatwas submitted to the 201st
combine prepaid and post-pay
National Diet.
formats (note 1) and ②creating a・”The Amendment Bill of the
new fund transfer type positioned
Installment
Sales
between banks and existing fundAct” ,which incorporates thetransfer firms and thereby facilitating
revises such as developing aa wide range of fund transfers (noteregistration
systemfor2) other than just bank fund transfers.
businesses providing smallIn this process, the government also
sum post-pay in installments
intends to introduce frameworks that
service and introducing
enable smooth business deployment
specific safety guideline forby fintech companies and othercredit examination, waspayment service firms, such as
submitted to the 201st
utilization of performance provisions
National Diet.
in credit reviews under the11

Minister in
ChargePrime Minister(the ministerfor
specialmissionof
Cabinet Office(finance)),
MinisterofEconomy,TradeandIndustry

Provisional Translation
Installment Sales Act. It plans tosubmit necessary bills for thesechanges to the National Diet’s 2020
Ordinary Session.
(Cross-sectoral regulatory framework)
・The government intends to review
・“the Amendment Bill of themeasures for realization of a crossAct on Sales, etc. ofsegment financial services brokering
Financial Instruments, etc.
legal framework that allows
for the Purpose of Improving
provision across segments of services
Convenience for Users offor various functions, such as
Financial
Servicesandpayments, fund provision, asset
Protecting Them”, which
management, and risk transfer. It
incorporates the revises suchhopes that this initiative will enableas establishing a license forprovision of a highly convenient onefinancial service brokeragestop channel that meeting the needs
business which can handle
of individual users utilizing
financial services spanningsmartphones and other devices,allfinancialsectors
simplify selection of financial(banking, securities firms
services that meet personal needs by
and insurance companies)
users, and encourage competition forwith a single registration,
financial service quality. The
was submitted to the 201st
government aim to prepare its
National Diet.
fundamental approach for thisinitiative during 2019.

12

Prime Minister(the ministerfor
specialmissionof
Cabinet Office(finance))

Provisional Translation
3.

Mobility(1) Major progress of KPI《KPI》The launch of driverless automated driving transport services in specified areas
on the public roads is planned for 2020.【13】⇒The service started in 2019.
《KPI》Driverless automated driving transport services in specified areas will be
implemented in more than 100 locations nationwide by 2030.
【14】(2) Major Progress of measures
Item of Measures
Paid passenger
transportation in apersonal-use
automobiles

4

Contents of Measures andStatus of Progress and
Implementation Period
Implementation(Creation of system of paid passenger
transportation in a personal-use
automobiles in cooperation with thegeneral passenger automobiletransportation business operators)
・The government will develop laws
・With respect to future regionaland regulations for the generalpublic transportation, apassenger automobile transportation
discussion was held at thebusiness operators (taxi business“Regional
Publicoperators, etc.) to cooperate with paid
Transportation section of thepassenger transportation in a
Transportation
Policypersonal-use automobiles throughBoard”, and based on thetheir own know-how, or moreinterim report summarized
specifically, to cover the case where
on January 29, 2019, a bill4
transportation business operators
was prepared and submitted
receive a commission or they
to the 201st National Diet,
participate in the implementing body.
that is aimed to reform
Since this case is based on therelevant laws including thepremise that the business operators
Road Transportation Act
will participate, it is aimed to(1951 law, No. 183),
simplify the procedure for forming
incorporating
thereinconsensus at the regional level,
development of the system
thereby promoting the provision ofin which the transportation
secure and safe transportation
business operators (taxiservices and reducing the burden on
business operators, etc.)
the implementing body. Any
cooperatewith
paid
necessary bills are aimed to bepassenger transportation in a
submitted to the National Diet’s 2020
personal-use
automobiles
Ordinary Session.
through their own knowhow, and more specifically,
the transportation business
operators
take
upon

Minister in
ChargeMinisterofLand,
Infrastructure
and Transport

A legislative bill to revise part of the Act on Revitalization and Rehabilitation of Regional Public Transportation
Systems, etc. in order to propel the effort to ensure a provision of sustainable transportation services.
13

Provisional Translation
themselves the operation andmanagement,etc.
byreceiving a commission.
・ For shared ride of taxi,
proposed rules under theRoad Transportation Act
were prepared and publicizedin March 2020.

Adoptionof ・Implementation of ride sharing inshared ride of taxi
taxis offers usage at a lower fee forcustomers and improves the
productivity of taxi businesses. Taxi
ride- sharing service should be
generally adopted without restrictions
on regions and conditions because it
provides access to cheap mobility to
as many people as possible withlimited transportation entities. The
government plans to prepare theenvironment with a Road
Transportation Act notice and otheradjustments during FY2019.
Realization of・A convenient service (so called MaaS: ・ The Ministry of Economy,
Mobility As A
Mobility-as-a- Service), which
Trade and Industry, and theService (MaaS)
collectively manages multiple
MinisterofLand,
reservations, etc. for transportation,
Infrastructure and Transport
lodging and services using a
promotedthe“Smartsmartphone, on a cashless basis,
Mobility Challenge” thatwithout wasteful waiting time, andsupports the regions andenables smooth move, is a global
companies that challenge thetrend now. In Japan also, it isresolution of mobility issues
expected to boost potential demand
and regional vitalization
not only of residents but also of
through implementation intourists and to contribute to
the society of new mobility
revitalization of regional.
including MaaS, and, in June
The government intends to create a2019, selected 28 regions tovariety of positive examples of thesebe supported (new mobility
services and to support the efforts
service promotion projects:
being made by various local
19 regions, pilot regional
businesses and local public
analysis : 13 regions) thatorganizations so as to expand it
havepioneering
nationwide.
engagements.
・ Symposiums were held
throughout the country in
per-region basis to support
initiatives of new mobility
service in each region.
・ A bill 5 to reform laws forregional
publictransportation vitalization
andregeneration
was
submitted to the 201st
National Diet, that is aimed
to establish a certification
5

MinisterofLand,
Infrastructure
and Transport

Prime Minister(the minister inchargeofinformation
technology (IT)policy, Ministerof
Economy,TradeandIndustry,
MinisterofLand,
Infrastructure
and Transport

A legislative bill to revise part of the Act on Revitalization and Rehabilitation of Regional Public Transportation
Systems, etc. in order to propel the effort to ensure a provision of sustainable transportation services.
14

Provisional Translation

Flights of drone
beyond the visualline of sight inpopulated areas

・The target period for flights beyond
the visual line of sight in populatedareas, excluding the prohibited areas
for flight, on the premise of securing
the security of flight route, is set for
FY2022, and towards that end, thegovernment will show a specificroadmap by determining the basic
policy of designing the system within
this year.

system of new mobility
serviceproject
plan
formulated by businesses,
etc. that participate in MaaS.
・“Guidelines for MaaS-related
Data
Linkagever.1.0”(March2020)
wasformulated.
・The basic policy of designing Referthe system was determined footnote7
at the 13th public-private
sectorcouncilfor
improvementofenvironment for small
unmanned aircraft on March
31, 2020.
Preceding
this,
with
respect to the registration
system to identify theowners, that should be
conducted
promptly,areform bill 6 for the Civil
Aeronautics Law (1952 law,No. 231) and others thatgovern the implementationof this system was submitted
to the 201st National Diet.

to

A legislative bill to revise part of the Civil Aeronautics Law for prevention of occurrence of hazard by flight ofunmanned aircraft, etc. as well as the law regarding prohibition of flight of unmanned aircraft, etc. over thesurrounding area of important facilities
7 Prime Minister (Chief Cabinet Secretary, the minister in charge of information technology (IT) policy, theminister in charge of economic revitalization, the minister of state in charge of business regarding cyber security
strategic headquarters, the minister for special mission of Cabinet Office (countryside revitalization), Chairman of
National Public Safety Commission, Minister of Internal Affairs and Communications, Minister of Justice,
Minister of Foreign Affairs, Minister of Education, Culture, Sports, Science and Technology, Minister of Health,Labour and Welfare, Minister of Agriculture, Forestry and Fishery, Minister of Economy, Trade and Industry,
Minister of Land, Infrastructure and Transport, Minister of Defense, Minister for Reconstruction
15
6

Provisional Translation
4.

Corporate Governance(1) Major progress of KPI《KPI》Improve ROA of large Japanese companies (TOPIX500) to the level whichis comparable to those of US and Europe by 2025. 【18】⇒FY2019 TOPIX500: 3.3% U.S. S&P500: 5.7% EU BE500: 3.9%(2) Major Progress of measures
Item of Measures
Practical
Guideline

Response ofTokyo Stock
Exchange

Contents of Measures and
Implementation Period
・The government plans to newly
formulate “Practical guideline on thegroup governance system” that
presents a listed-subsidiary
governance format and encourage
compliance

Status of Progress and
Implementation
・ The Ministry of Economy,
Trade
and
Industry
formulated“Practicalguideline on the group
governance system” (June28, 2019).

Minister in
ChargeMinisterofEconomy,TradeandIndustry

・The Tokyo Stock Exchange should・ In February 2020, withtake additional measures to enhance
respect to the governance of
the independence of listed
listed subsidiaries, the Tokyosubsidiaries from the controlling
Stock
Exchangemadeshareholder, such as revising its
necessary
revisionsautonomy standards in accordance
concerning
increasing
with the direction of the guidelines intransparency and requiring
order to raise the efficacy ofmore information disclosure“Practical guidelines on the groupby parent company as well as
governance system.”thesubsidiaries,
andstrengthening
theindependence standards forindependent
directors/auditors,
andthereby has advanced thedevelopment of listing rules
for improving governance oflisted subsidiaries.

Prime Minister(the minister for
special missionofCabinetOffice (finance)

16

Provisional Translation
5.

Smart Public Services(1) Major progress of KPI《KPI》Reduce the administrative costs in priority areas＊ by 20% or more by
March 2020. 【19】(*Refers to the 9 priority areas indicated in the "Administrative Procedure Group Summary" (29 March,2017 Decision on Regulatory Reform Promotion Committee Administrative Procedure Subcommittee).
Certain areas may be given more time until March 2022, with the exception of national and local taxes
that have separate targets, such as increasing the usage of the online tax payment system by large
corporations to 100%.).

《KPI》To be within the top 3 developed countries of the World Bank's businessenvironment ranking by 2020. 【20】⇒Ranked 18th as of the announcement in October 2019 (moved 7 ranks upward
compared to the previous year)(2) Major Progress of measures
Item of Measures
Building of new
infrastructure forthe life of thepeople andeconomic policy
utilizing My
Number cards

Contents of Measures and
Implementation Period
・The government aims to utilize theplatform for My Key that contains auser ID obtained through strict
personal authentication and local
government point management
clouds in public and private
scenarios. It also intends to harness
private-sector dynamism to thegreatest extent possible and enable
resident use of local public entity
points in cashless purchases, andplans to consider exchanges withprivate-sector points in the future.
Through these initiatives, thegovernment will allow use of local
public entity points in local mobility
assistance, shopping assistance, care
support, and other applications andfacilitate policies that contribute tostimulation of local shopping
districts.
Furthermore, the government aims toachieve effective policy execution byenabling detailed responses that truly
address citizens’ needs, prevent
improper receipt, and lower
administrative costs through reviews
with related ministries and agencies
and local public entities and with a
17

Status of Progress and
Implementation
・ Withthegoalofimplementing consumption
activation measures utilizing
Mynapoint from September
2020, the preparation is under
way based on the study by thetask force of public- andprivate-sector
members
established in September
2019. For implementation of
the above-noted measures,the government intends tocreate the system in which
the platform for My Key isutilized as the basis andprovide management, etc. oflimit amountof
Mynapoint
usableforcashless settlement servicesof private companies.
Also at the working
group formed under theprivate-public task force, thepromotion of measures forresolving regional problems
utilizing the private-public
joint-usage style cashless
settlement basis is being

Minister in
ChargePrime Minister(the minister inchargeofinformation
technology (IT)policy,theministerfor
special missionofCabinetOffice(My
Numbersystem)),MinisterofInternal Affairs
andCommunications, Minister ofFinanceProvisional Translation
future vision of supplying childrearing assistance and other cash
benefits implemented by the national
government and local public entities
via points.
The government plans to review adetailed approach to consumption
standardization measures for the
consumption tax hike in light ofprogress with measures, such asformation of a task force of publicand private-sector members, aimed atachieving a foundation as a national
system with future expandability
after implementation, andcompatibility from the perspective
described above after progress in
preparations to issue local public
entity points utilizing the My Number
card.
・Additionally, the government istargeting the full-fledged usage of the
My Number card as a healthinsurance card in March 2021 withthe aim of boosting efficiency of
medical insurance administration andenhancing patient conveniencethrough definite confirmation of
personal identity and insurance
qualifications when giving treatment.
It intends to provide sufficientassistance for prompt deployment ofreading terminals and systems at
medical entities and related locations,with a goal of coverage at almost all
medical entities and related locations
to ensure the quickest and smoothest
response possible at medical entities
and related locations nationwide.

・The government intends to formulate
specific My Number card acquisition
promotion measures by insurance
recipients for the respective insurance
providers and promote the acquisition
18

considered.

・With the goal of starting theoperation of the online
qualification check for usageof the My Number card as ahealth insurance card fromMarch 2021, the preparation
for the system constructionis under way in cooperation
with insurers and medical
personnel, etc.
Also, thegovernment
intends
toprovide sufficient assistancefor prompt deployment ofreading
terminals
andsystems at medical entities
and related locations, byutilizingtheMedicalInformatization
SupportFund, with a goal ofcoverage at almost all
medical entities and related
locations to ensure thequickest and smoothest
response possible at medical
entities and related locations
nationwide in FY2022.
・ The digital government
cabinetmeeting
in
September 2019 presented
promotion measures foracquisition of My Number
card of insurance recipients

Prime Minister(the minister for
special missionofCabinetOffice(My
Numbersystem)),Ministerof
Health, Labourand Welfare

Prime Minister(the minister for
special missionofCabinetOffice(My
NumberProvisional Translationof the My Number card by nationaland regional civil servants.

・The government envisions almost all
residents having My Number cards
during FY2022 from the perspectiveof realizing a digital society that issafe, reliable, and highly convenient,
as quickly as possible, and plans tostrongly promote the proliferation of
My Number cards by promoting theformulation of My Number card
issuance facilitation plans at eachmunicipality, periodically followingup and giving necessary assistance.

・The government aims to improve the
My Number card convenience andfurther promote expansion of usage
scenes, and to realize fairness insocial guarantees and enhance theconvenience of public administrationand operating efficiency.

19

for the respective insurance
providers,andeachinsurance provider to use
various channels to support
publicity for card acquisition
to business operators andrecipients,
etc.
andapplication for acquisition ofcards; following up withquestionnaire survey. Also,
the government encouraged
national public service
personnel and local public
service workers, etc. toacquire My Number cardwithin 2019 from theperspective of leveling of
paperwork of issuing thecards at municipalities. It
implemented the initiatives
toencourage
promptacquisition through a varietyof conferences, etc.
・ The government requested
municipalities to prepare a
My Number card issuancefacilitation
planin
September 2019, and allmunicipalities completed thecreation of their My Number
card issuance facilitation
plan by December of thatyear. The Ministry ofInternal
AffairsandCommunications executednecessary follow-ups andassistance whenever needarose.

・ For the improvement of
convenience of My Number
card and expansion of usage
scenes, the government laid
down “Work schedule for
digitalization, etc. of various
cards utilizing My Numbercard” (decide by digital
government cabinet meetingon December 20, 2019), andit aims to further promotion
based on it.

system),MinisterofInternal Affairs
andCommunications, Minister ofFinance,
Ministerof
Health, Labourand Welfare

Prime Minister(the minister inchargeofinformation
technology (IT)policy,theministerfor
special missionofCabinetOffice(My
Numbersystem)),MinisterofInternal Affairs
andCommunications
Prime Minister(the minister for
special missionofCabinetOffice(My
Numbersystem)),MinisterofFinance,
Ministerof
Education,
Culture, Sports,

Provisional Translation

Procedureautomation byindividuals andcorporations

・With regard to the services that allow
applications for procedures related tochild rearing from pregnancy until
before the first school year, such as
vaccination and child allowance, withthe push of a single button, somelocal public organizations will begin
from next year, and the national
government intends to deploy thisservice nationwide from FY 2023.

・In addition, regarding the year-end
tax adjustment procedure from nextyear, begin automation of batch
acquisition of necessary documents,
input to various applications forms
and attachment through data linkage
using Mynaportal.

・The government intends to proceedwith the online one-stop service forthe procedure of corporation
establishment to realize the businessenvironment at the world’s highest
standard. It will also regularly verify
the status of efforts, conduct a review
by FY2021, and take necessary
measures, while working on thefollowing matters.
－One-stop service for the procedure
after registration will commence by
20

・The “Child-rearing non-stop
working-level conference”,
comprisedofexperts,
relevant business persons,relevant local governments
and relevant government
agencies, was held from
October 2019, and conductedexamination for realizationof specific services. In March
2020, at the said conference,theroadmap
towardrealization of the services
was formulated.
・ With the goal of realizing
digitization of year-end tax
adjustment procedure andautomated input of deduction
certificates, etc. from thosefor FY2020, the government
is working on developmentof linkage function with
Mynaportal and software forpreparing
deduction
application, as well as onelectronic
issuanceofdeduction certificates by
issuer of each deduction
certificate.

・Provision of the “corporation
establishment
one-stop
service” for the procedure
after registration commenced
from January 2020. Also,
corporation
establishment
registration within 24 hours
by
onlineapplicationcommenced from March
2020. Aiming to commence
the one-stop services for allprocedures including articles

ScienceandTechnology,
Ministerof
Health, Labour
andWelfare,MinisterofLand,
Infrastructure
and Transport
Prime Minister(the minister inchargeofinformation
technology (IT)policy,theministerinchargeof
economic
revitalization,
the minister for
special missionofCabinetOffice(My
Numbersystem),theministerfor
special missionofCabinetOffice(countermeasur
es to fallingbirthrate)),
Ministerof
Education,
Culture, Sports,
ScienceandTechnology,
Ministerof
Health, Labourand Welfare
Prime Minister(the minister for
special missionofCabinetOffice(My
Numbersystem),MinisterofFinance
Prime Minister(the minister inProvisional Translation
January 2020, while the following
services will be started by February
2021: one-stop services for all of theprocedures including articles ofincorporation certificate andcorporation establishment
registration, voluntary registration ofseal for corporation establishment
registration, an initiative forcompleting corporation establishment
registration within 24 hours covering
simultaneous online application ofarticles of incorporation certificate
nationwide for paperless filing undercertain conditions, and launch an
online complete service thateliminates the need for attacheddocuments for paperless filing. At thesame time, online registration of theseal will be considered.

of incorporation certificate
andcorporation
establishment registration by
February2021,
thegovernment
continues
considering the connection
specification of each relevant
system and Mynaportal, as
well as efforts for complete
online process and paperlessfiling of attached documents.

chargeofinformation
technology (IT)policy,theministerinchargeof
economic
revitalization,
the minister for
special missionofCabinetOffice(My
Numbersystem)),MinisterofInternal Affairs
andCommunications, Minister ofJustice,
MinisterofFinance,
Ministerof
Health, Labourand Welfare－For the realization of voluntary seal
・The Commercial Registration
registration, the government intends
Act was revised 8 on
to work on revising the Commercial
December 4, 2019, for theRegistration Act (1963 law, No.125)
realization of voluntary seal
during FY2019, while also
registration at incorporationconsidering the issues and policies forregistration,andthegeneralizing the acquisition andpreparation is under way forretaining of the future corporate
its enforcement with thecommercial registration electronic
target of February 2021.
certificate, and reach a conclusion
・ In order to enhance theduring FY2019.
convenience of electronic
certification of commercial
registration and further
promote and spread it, thegovernment revised thecommercial registration rules
and took such steps as
establishment of system forrequesting reissuance ofelectronic
certificate,elimination of requirement topresent seal card at theapplication for certificate byelectronic certificate, andreview by registrant of
8

The law concerning the development of relevant laws pertaining to enforcement of the law to revise part ofcorporation law (2019 law, No. 71).
21

Provisional Translation

Promotion ofdigitaltransformation(DX) atadministrative
bodiesfrequency of renewal ofelectronic certificate.
・The government plans to review the・In the “Digital Government“Basic policy on the use of cloud
Implementation
Plan”
services in government information(cabinetdecisiononsystems” (decided by the liaison
December 20, 2019), theconference of Chief Information
government
decidedto
Officer (CIO) of each ministry on Juneconsider utilizing cloud
7, 2018) during FY2019 in order toservices in principle whenensure consistency with safety
relevant agencies develop
evaluation systems for cloud services,
government
information
which is scheduled to start operation insystems upon clarifying theautumn 2020. In introducing an
administrative services andinformation system, the principle ofbusinesses
andthecloud by default at each ministry andinformation to be treated,agency, which considers the use of
based on the merits, the scale
public cloud services as the firstof development and the
choice must be clarified andexpenses,etc.
The
established.
government also plans toreview the basic policy for
usage of cloud services ingovernment
information
systems, based on the cloudservices safety evaluation
systems to be hereafter
determined.
・For both the public and private sectors ・ From July 2019, theto employ cloud services moregovernment held “study
securely and safely and to use themconference for cloud services
continuously, the government intends
safetyevaluation”
toto conduct demonstrations of a safety
consider the said systemevaluation system for cloud services
and demonstration of theduring FY2019 and establish
system, along with the saidevaluation criteria, and a systemmeetings. Based on results ofaiming for the start of use at all
the demonstration and public
government organizations andcomments, the government
agencies in autumn 2020.
published a summary of thesaid meetings in January
2020, and determined thefollowing at the 23rd Cyber
Security
Strategic
Headquarters in the samemonth: (1) basic frameworkof the system, (2) concepts ineach governmental agency
about usage of the system,and (3) jurisdiction andoperational structures of thesystem,andtherebyestablished the outline of thesystem.
Relevant
government offices are
currently designing the22

Prime Minister(the minister inchargeofinformation
technology (IT)policy)Prime Minister(the minister inchargeofinformation
technology (IT)policy,theminister of statein charge ofbusinessregarding
Cyber Security
Strategic
Headquarters) ),MinisterofInternal Affairs
andCommunications, Minister of
Economy,TradeandIndustry

Provisional Translation
details of the system.
・For the promotion of the secure use
・ The government held “studyof the public cloud by the local
conference for revision of
governments, technical requirements
guidelines on informationaccording to operations will be
security policy at the local
arranged and disseminated promptly.
governments” and in January
In addition, based on the national
2020, prepared the mid-term
principle of cloud by default and thereportabout
security
review results of the safety evaluation
requirements for making
system for cloud services, contents
connections from internal
will be added concerning the said
environment of the local
requirements as required.
governments to public cloud,and notify that to the local
governments.
The
government hereafter intends
to continue studying the ways
to utilize public cloud safely
at the said conference on thebasis of the result of
discussion about the nation’s
safety evaluation system forcloud services.
・The government intends to advance・ On the standardization of
the standardization of municipal
municipal
information
information systems, such as thesystems, the 3 parties ofresident record system and themunicipalities,business
construction of a standardized model
operators and the national
through the comparison of operations
government set up the “study
between municipalities from FY2019
conference
forfor further improving the local
standardization of municipal
government’s operation and thesystems” in August 2019 inshared use of ICT systems AI andorder to move forward on
RPA. At the same time, thestandardization of municipal
government intends to strongly
information systems, andpromote the standardization of AI and
begun
the
study
for
assist in the introduction of RPA, andstandardization of resident
aims to realize the provision of theregistration system that is thestandard systems and AI and RPA
core of the municipal system.
services in each administrative areaWith
respecttonationwide in the 2020s at the latest,
standardization of businessas well as implementing electronic
processes, 8 study groups ofand paper-free approaches for allmunicipalities identified byprocedures at local governments.
thesize
workedon
construction of standardized
model of business processes
in the basic resident registerand taxation, etc. at theMunicipal
Administration
Smart Project that started in
FY2019. Also, under the“Innovative
Big
Data
Processing
Technology
Introduction and Promotion
23

Prime Minister(the minister inchargeofinformation
technology (IT)policy),MinisterofInternal Affairs
andCommunicationsPrime Minister(the minister inchargeofinformation
technology (IT)policy),MinisterofInternal Affairs
andCommunicationsProvisional Translation

・The government plans to start
adjusting a marketplace with useful
digital services and applications forthe government and citizens
centralized in one place, developed
by startup companies and NPOs,
from FY2019, and advance its fullfledged introduction after FY2020,enabling efficient horizontal
development of best practices by the
local government.

Improvement of
ICT environmentof schools

・Fix the goal and formulate theroadmap for ICT environment
necessary in elementary, middle andhigh schools, etc. within this year.

24

Project” in FY2019, 6
municipalities (3 groups)
executed demonstration of
the development of shareduse of cloud AI, and also
assisted introduction of RPA
to 78 municipalities. The
government further decided
to provide funding tomunicipalities from FY2020
forequipping
generic
electronic application system
in order to advance the online
procedure of municipalities.
・In FY2019, the governmentorganized
theoveralldesigns, basic functions, etc.
and constructed β versionof the “Digital Service
Square” as the local
government
application
market by actively accepting
the opinions from local
government staff and IT
vendors, and conducted user
tests.

・ The“Comprehensive
Economic
Measuresto
Create Future of Security and
Growth”(cabinet
councildecision , December 5, 2019)stated to “promote thedevelopment of high-speed /large-capacity
network
environmentinschool(schoolLAN),and,especially at compulsory
education level, to aim forrealization of environment
where every one of thestudents of all grades has aterminal and fully utilize
them by FY2023, and toensure finances continuously
as the government to themunicipalities
that

Minister
Economy,Trade
IndustryofandPrime Minister,
Ministerof
Education,
Culture, Sports,
ScienceandTechnology,
MinisterofEconomy,TradeandIndustry

Provisional Translation
implement the project andprovidenecessary
assistance”, and showed theroadmap for that realization.
Realization of theworld’s best
country forcompanies toengage theirbusiness(Applying IT to litigation proceedings)
・While respecting the autonomous
judgment by the judicial branch andconsidering the discussions at the
Liaison Conference for Relevant
Ministries and Agencies on the
promotion of the civil justice system
reform, the government tries toimplement the following initiatives instages with the aim to realize full
digitization of court proceedings on
civil litigation.
－Under the current law, thegovernment expects the judicial
branch to swiftly start new operations
to arrange issues and evidence actively
using IT tools, such as web
conferencing at some large-scale
courts nationwide and expand courts
exercising the said new operations
nationwide sequentially after FY2020.

・ In February 2020, the new
operation of the procedures
to determine the points at
issues by utilizing IT tools
such as web conference
started at 8 head offices of theDistrict Courts of the regions
where
the
Intellectual
Property High Court and theHigh Courts are located, and
it is scheduled to be expended
to the head office of eachDistrict Court in Yokohama,
Saitama, Chiba, Kyoto andKobe in May of the year. The
judicial branch aims to
expend it to the head office ofDistrict Courts throughout
the country within FY2020,
with the view toward
expending to other offices
sequentially thereafter.
－The government will make efforts
・ Aiming to realize online
with a view to consulting thefiling, digitization of theLegislative Council of the Ministry ofrecordoflitigation,
Justice during FY2019 and revising
electronic payment of fees
the Code of Civil Procedure duringetc., and online conference
2022, with the aim to realize online
without need for appearance
filing, digitization of the record ofof the parties at courts, alitigation, electronic payment of fees
consultation
with
theetc., and online conference without
Legislative Council of theappearance at courts. The
Ministry of Justice was madegovernment will consider
on February 21, 2020. The
comprehensive measures with theinitiative will continue withcooperation of the judicial branch tothe view toward revision of
ensure the right of access to thethe Code of Civil Procedure
courts, particularly by those who are
during 2022.
not familiar with IT, so their right ofaccess to the courts is not harmed
due to the introduction of IT to thecourt proceedings. The judicial
branch will be expected to conduct
swift initiatives aiming for therealization of new systems, while theexecutive branch will take necessary
measures.
25

Prime Minister(the minister inchargeofinformation
technology (IT)policy,theministerfor
special missionofCabinetOffice(inchargeofconsumers andfood safety) ),MinisterofJustice,
MinisterofEconomy,TradeandIndustry

Provisional Translation
6.

Next Generation Infrastructure(1) Major progress of KPI《KPI》Goal of 20% improvement in construction site productivity by FY 2025
【26】
《KPI》For businesses engaged in inspection and diagnosis of domestic criticalinfrastructure & aging infrastructure, the proportion of facility managers
who are adopting new technologies, such as robots and sensors that
achieve a certain level of technological capability, to reach 20% by around2020 and 100% by 2030. 【27】⇒2019：
Ministry of Health, Labour and Welfare
36％
Ministry of Agriculture, Forestry and Fishery
27％
Ministry of Economy, Trade and Industry
20％
Ministry of Land, Infrastructure and Transport
35％
Ministry of the Environment
10％《KPI》By 2020, Tokyo to come within the top 3 in city comprehensive strength
rankings. 【28】⇒2019：3rd place(2012：4th place)《KPI》Expand the PPP/PFI business scale to 21 trillion yen over the next ten
years (from FY2013 to FY2022). Out of which, 7 trillion yen will come from
PFI businesses that utilize the concession-method. 【32】⇒FY2013-FY2018 business scale
・PPP/PFI business：About 19.1 trillion yen
・PFI business using the concession-method：About 8.8 trillion yen(2) Major Progress of measures
Item of Measures
Advancement andstreamlining of
infrastructure
maintenance andmanagement
work

Contents of Measures andStatus of Progress andMinister in
Implementation Period
Implementation
Charge・An ICT database system that works
・ The
governmentis Ministerof
to centrally manage data, such asproceeding with trials at Internal Affairs
inspections and maintenance repair
model sites of local public anddata, and that will upgrade andentities for introduction of Communicatio
streamline the infrastructure
database of maintenance ns, Minister ofmaintenance management work ofmanagement
information Health, Labour
local public entities, will be introduced
owned by local public andWelfare,nationwide.
entities.
Ministerof
In addition, the government will・ In conjunction with the Agriculture,accelerate the field implementation ofabove, it also aims to Forestry
andnew technologies, such as drones inpromote introduction of new Fishery,
regard to bridge inspections, etc. In
technologies through the Ministerof
conjunction with these efforts, theinitiatives of the Japanese Land,
government will use local financial
Congress for Infrastructure Infrastructure
measures for the initiatives engaged by
Management, etc.
and Transport
local public entities, limited to aperiod of 5 years.
26

Provisional Translation

Accelerating the
introduction of
PPP/PFI
approaches

・Additionally, the government willtake the lead in using BIM (Building
Information Modeling) in theconstruction works ordered bynational and local public entities, andwill lead its horizontal expansion to
private projects.

・ The government worked on
spreading of utilization of
BIM at designing andconstruction stages in thegovernmentbuildings
projects. Also, “Guidelines
for Standard Workflow of
BIM and its Utilization
Methods in Construction
Field” that summarized theworkflow, etc. standardly
anticipated in the use of BIM,
1st Edition (decided in March
2020 by Construction BIM
Promotion Council)” hasbeen
notifiedanddisseminated to relevant
parties.

・The government will make specificaction plans through FY 2022 that
focus on three priority areas (medicalcare and health, welfare, preventionof recidivism) in which Japan isalready formulating concrete
initiatives for advancing the “Pay for
Success”(PFS) methods, which is aoutcome-based private consignment
contracting methods. The relevant
ministries will promote
popularization of PFS methods in thethree priority areas based on theaction plan. The results will befurther expanded horizontally outside
the three priority areas.

・ The Action Plan on
Promoting the PFS methods(decision by the Ministerial
Meeting on Promoting the
Pay for Success methods on
March 27, 2020) was
formulated .It summarized
the undertakings of relevant
ministries
by
FY2022,treating the three priority
areas(medical care andhealth, welfare, preventionof recidivism), as the areas
for advancing PFS methods.
From FY2020 on, relevant
ministries will promote
popularizationofPFS
methods based on the action
plan, and will be further
expandedhorizontallyoutside the three priority
areas.

27

MinisterofJustice,
MinisterofFinance,
Ministerof
Education,
Culture, Sports,
ScienceandTechnology,
Ministerof
Health, Labour
andWelfare,Ministerof
Agriculture,
Forestry
andFishery,
MinisterofEconomy,TradeandIndustry,
MinisterofEconomy,TradeandIndustry,
MinisterofLand,
Infrastructure
and Transport,
Minister of theEnvironment
Prime Minister(the minister for
special missionofCabinetOffice(countermeasur
es to fallingbirthrate),
MinisterofJustice,
Ministerof
Health, Labourand WelfareProvisional Translation
7.

Aiming for realization of a decarbonized society(1) Major progress of KPI《KPI》On April 1, 2020, implement the legal separation of the power transmission
and distribution sectors, which is the final stage of power system reforms.
【39】⇒An organization for cross-regional coordination of transmission operators was created on
April 1, 2015. Full liberalization of electricity retail sales was implemented on April 1,
2016.
《KPI》Aim to have 50%-70% of new car sales of passenger cars be nextgeneration vehicles by 2030. 【53】⇒Next-generation vehicles account for 38.4% of new car sales (FY 2018)a
《KPI》Have about 160 commercial hydrogen stations by FY 2020, 320 stations by2025. 【34】⇒117 stations are already operating (end of March 2020)(2) Major Progress of measures
Item of Measures

Contents of Measures andStatus of Progress and
Implementation Period
Implementation
Formulation of・Formulate a Progressive Environment ・ “Progressive Environment“The “Long-term
Innovation Strategy within 2019.
Innovation Strategy” wasStrategy under theformulated on January 21,
Paris Agreement”
2020, by the Integrated
and promotion of
Innovation
Strategy
investments toPromotion Council.
SDGs and ESG

・In autumn 2019 Japan will host RD20
(Research and Development 20 for
Clean Energy Technologies) to bring
together leaders from G20 member
country research institutes.

28

・ The first RD20 was held byinviting leaders of top
research institutes of G20 toJapan in October 2019. Also,
Japan
held
“GreenInnovation Summit” byassemblingtherepresentatives of RD20 as
well as leaders of industrial
circles, financial circles, andresearchers of the world,
wherein, with the attendanceof the Prime Minister Abe,an exchange of opinions wasmade regarding the methods

Minister in
ChargePrime Minister(the minister for
special missionofCabinetOffice (Scienceand technology
policy)),Ministerof
Education,
Culture, Sports,
ScienceandTechnology,
MinisterofEconomy,TradeandIndustry,
Minister of theEnvironment
Ministerof
Education,
Culture, Sports,
ScienceandTechnology,
MinisterofEconomy,TradeandIndustry,
Minister of theProvisional Translation

・Revitalize a green finance bypromoting information disclosure andvisualization rather than by
conventional regulations so as todraw the ESG funds that grow aroundthe world to innovation.

29

foraccelerating
nonsequential innovations.
・To realize “virtuous cycle ofenvironment and growth,”
the government is promoting
thedisclosurebycorporations of climaterelated information based on
the idea of the Task Force on
Climate-related
Financial
Disclosures (TCFD), and thenumber of approving entities
has exceeded 250, making it
the largest in the word. In
October2019,
thegovernment sponsored theworld’s
first“TCFD
Summit” where the top
representatives
oftheworld’s industrial circles andfinancial circles assembled,and published to inside andoutside Japan the “Guidance
for the usage of climaterelated information for thepromotionofgreen
investment” that explains the
viewpoint of investors when
they evaluate information
disclosure of corporations,which was formulated by a
TCFDconsortium
established under a privatesector initiative in May
2019. Also at the TCFD
consortium, a discussion isgoing on for a revision of the“Guidance for disclosure ofclimate-related
financialinformation.” In Addition,
the government provided
assistance in FY2019 to 12
corporations on analysis of
scenarios corresponding to
TCFD, and based on thecases handled in this project,itpublished“Recommendationofdesigning business utilizing
TCFD - Practical guide foranalysis of scenarios forembracing the opportunities
ver.2.0” in March 2020.

Environment
Prime Minister(the minister for
special missionofCabinetOffice(Finance) ),MinisterofEconomy,TradeandIndustry,
Minister of theEnvironment

Provisional Translation
・Japan will take the lead in setting up
a framework in which ASEAN
countries cooperate with the public
and private sectors in order to spreadthe results of innovation to the world
through business environment
improvements and market creation.

Introduction oflarge volume ofrenewable energy
and realization of
decarbonization

・In order to make renewable energy
the main energy source, thegovernment intends to do all it can to
introduce it to the maximum capacity.
In doing so, with the aim to promotemaximum introduction while
controlling the burden on the nation,
it intends to work on reduction ofcost, overcoming of systemconstraints and reform of power
network.
For this purpose, with the goal torealize decarbonization, it encourages
innovative technology developments
so as to support Japanese companies
that have a technological edge in the
renewable energy field, and promotes
power network reforms, including
upgrading interregional
interconnection lines and system
improvements, and establish amechanism for securing power
generation investment together withthe development of necessary supply
capacity and coordination
capabilities.

30

・In September 2019, “CEFIA:
Cleaner Energy Future
Initiative for ASEAN” wascreated under the leadershipof Japan, as a private-public
sectors
platform
for
realizationofenergyconversion and low-carbon
society in ASEAN, and thefirst CEFIA public-private
joint forum was held in
November 2019.
・ The basic policy of thegovernment
regardingrenewable energy is toproceed on its maximum
introduction
while
controlling the burden on
the nation. Depending on
the characteristics of thepower source, with regard to
the competitive powersource with anticipatedgrowth, the government will
adopt new FIP (Feed in
premium) system to aim for
integration to power market,
and with regard to the powersource that can be used
locally, the government willcontinue supporting it forthe meantime by FIP systemupon setting up therequirements for local
utilization.
With regard to reductionof costs, the government sets
the mid-to-long-term pricetargetaimingforinternational standard, basedon the FIP system, and it isin the process of setting the
procurement cost towardthat target by way of toprunner format, and thebidding system to aim forcost reduction throughcompetition.
For the elimination ofsystem constraints, theMinisterofEconomy,TradeandIndustry

MinisterofEconomy,TradeandIndustry,
MinisterofLand,
Infrastructure
and TransportProvisional Translation

・In order to make up for the
responsiveness of renewable energythat has been the bottleneck to its
expansion, aim for enhancement ofhigh-performance/low-cost storage
technologies, such as storage
batteries and hydrogen, and the nextgeneration power network by
31

government
sequentiallyadopted the plan to approve
power connections to thesystem under a certain
conditions in order to makefull use of the existing
systems, and that has provento be effective to somedegree.
Also, as for the systemformation in the future, thegovernment intends tostrengthen the interregional
interconnection lines as wellas to develop push-style
network, with the potentialof power source such as
renewable energy in mind.
In order to realize thesupport as shown in theabove to renewable energy
corresponding
tothecharacteristics of the powersource and to develop thesystems, the government
submitted a bill to the 201st
National Diet to reform partof the Electricity Business
Act, etc. that aims toestablish a tough andsustainable supply system.
Incidentally, in terms oftechnological development
for
realizationofdecarbonization,
thedevelopment of coating typeand super lightweight type
(perovskite type, etc.) thatcan overcome the constraintof land, and offshore wind
power is underway.
・For dissemination of usage ofstoragebatteriesandhydrogenenergy,thegovernment is implementing
research and development
andtechnologicaldemonstration as well as
assistance
in
their

Ministerof
Education,
Culture, Sports,
ScienceandTechnology,
MinisterofEconomy,TradeandProvisional Translation
spreading the advanced energy
management using digitaltechnologies.

・In the case of nuclear power, promote
safety as the first priority more thananything else. Restart nuclear power
plants in the event that they arerecognized to conform to theregulation standard at the moststringent level of the world by the
Nuclear Regulatory Commission,
while securing the understanding andcooperation of the relevant parties ofthe municipalities where the plants
are located. Begin the efforts for the
maintenance of technologies andhuman resources for further
improvement of safety and for
dealing with smoothdecommissioning.

・Encourage and activate the non-fossil
fuel pricing transactions market
created in 2018, with an eye on postFIT energy sources, aim to enlarge
non-fossil energy by utilizing market
mechanisms.

・With respect to offshore wind power
generation, whose cost reduction is
rapidly progressing in Europe, aim to
apply the rules for using the oceanarea that are conducive to expansion
32

introduction to achieve highperformance and low cost.
Also, for the goal of nextgeneration power network,thetechnologicaldemonstration of adjustmentof power supply balance byintegral control of consumerside energy source remotely
by way of IoT technology is
being conducted.
・ Nine nuclear power plants
have been restarted so far,and further restarting is on its
way with safety as the top
priority.
And, with the budget of
FY2019, the government
carries out the support for thetechnological developmentthat helps to improve safetyof nuclear power, and humanresources development toensure the safety of nuclear
power.
In addition to these, withthe budget of FY2020, forthe reinforcement of thenuclear industry as a whole,government will begin the
support for suppliers withsuperior technology that is
top-ranked in the world.
・ The volume of business of
non-fossil certificates in
FY2019 was about 440
million kWh, which as anincrease of 12.5 times that of
FY2018. Also, for theelectricity generated from
April 2020, the object of
non-fossil certificates will be
extended to all non-fossil
power sources.
・ In April 2019, thegovernment enforced the law
on promotion of usage ofocean areas for developmentof facilities for offshore

Industry

Prime Minister(the minister for
special missionofCabinetOffice (Nuclear
Emergency
Preparedness) ),Ministerof
Education,
Culture, Sports,
ScienceandTechnology,
MinisterofEconomy,TradeandIndustry,
Minister of theEnvironment

MinisterofEconomy,TradeandIndustry

The minister for
special missionofCabinetOffice (Ocean
Policy),Provisional Translationof its introduction.

・Strengthen local revitalization andresilience through social
implementation of interspersed area
energy system, as in genuine local
energy production for local
consumption in cooperation withlocal governments and through theintroduction of renewable energy inways that synergize with areas thathave competitive local renewableenergy sources such as geothermal
power generation, which is33

renewable energy generation
(2018
law,
No.
89)
(hereinafter
called“Renewable Energy Ocean
Areas Usage Law”) as thesystem toallow
thegovernment to designate theareas to promote feasible
projects of offshore wind
power generation, to selectproject operators throughpublic offering, and to makea long-term occupancy of theareas possible.
In July 2019, based on theguideline for designation ofpromotion areas, formulated
in June of the year, thegovernment sorted out 4
areas (“offing of Mitanecho
and Oga City, Noshiro City,
Akita-ken”, “offing (north
side,
south
side)
of
Yurihonjo City, Akita-ken”,“offing of Choshi City,
Chiba-ken”, “offing of Goto
City, Nagasaki-ken”) as thepromisingareas,
andorganized a conference ineach area, and in December
2019, designated the offing
of Goto City of Nagasakiken as the first promotion
area based on the Renewable
Energy Ocean Areas Usage
Law.
・ The
systemreformsubcommittee on renewableenergy as primary powersource, the sectional meetingon basic policy of theAdvisory Committee for
Natural Resources andEnergy has considered, since
September 2019, the specificplans and operation for postFIT system review, andprepareda
mid-termsummary in February 2020.

MinisterofEconomy,TradeandIndustry,
MinisterofLand,
Infrastructure
and Transport,
Minister of theEnvironment

MinisterofInternal Affairs
andCommunications, Minister ofAgriculture,
Forestry
andFishery,
MinisterofEconomy,TradeandIndustry,
MinisterofProvisional Translation
inexpensive and stable power source,
and biomass.

34

Based on this summary, it isexpected that the powersources that can be installed
flexibly near the area of
demand (solar photoelectric
generator for residence, solar
photoelectric generator forsmall business, etc.) and thepower sources that can use
the energy source available
in the area (small-scale
geothermal
power
generation, small hydraulicpower generation, biomass
power generation, etc.) canbe utilized in the supplydemand unified-type modelso as to contribute tostrengtheningoftheresilience at the time ofdisasters as a “local use
power source”, and for the
meantime,
thebasicframework of the current FIT
system will be maintaineduponsetting
certainrequirements (local use
requirements”.
Also, in order to promote
dissemination of the supplydemand unified-type model,“Interspersed
EnergyPlatform” was held as theoccasion for various players
to get together to share thecases and discuss common
challenges. The summary
states that the subcommittee
wouldcontinue
theirconsiderationofthemeasures for spreading theinterspersed energy model,
as needed and at appropriate
occasion, as well as theconsideration of the next stepfor creating the environment
where the players would cocreate.

Land,
Infrastructure
and Transport,
Minister of theEnvironment

Provisional Translation
8.

Construction of Innovation Ecosystem for Realizing Society 5.0(1) Major progress of KPI《KPI》By 2025 triple corporate investment in universities and national research
institutes etc. 【57】⇒ 143.1 billion yen (FY 2018 actual results)《KPI》By FY 2020, combined public-private R&D investment that is 4% or more of
GDP 【55】⇒ 3.56% (FY 2018 actual results)(2) Major Progress of measures
Item of Measures
Promotion ofopen innovation
through thecooperation
among industry,
academia, andgovernment

9Contents of Measures and
Implementation Period
・In 2019, examine a system toeffectively carry out large-scale joint
research and development bycompanies, universities and national
research institutes in order to promotesocial implementation of the research
results coming from universities andnational research institutes and tofurther diversify financial resources.

Status of Progress and
Implementation
・On November 20, 2019, theExpert Panel on Basic Plan,
Issues on the System
Working Group of theCouncilfor
Science,Technology and Innovation
summarizedareport.
Based on that report, a bill9
was submitted to the 201st
National Diet to reform partof the law relating tovitalization of creation ofscientific technology andinnovation to clarify thatjoint researches, etc., can be
implemented
bythebusinesses that may receive
investments by research anddevelopment firms. For
national universities, etc.,
they are planning to handle itby way of revisions togovernmental ordinances.
・For making full use of the technical・ Based on the problems withresearch associations for promotion
the use of technical researchof open innovation of joint researches
associations extracted fromby large corporations andhearings of relevant parties,
universities, etc., by the fall of 2019,
etc., the operation ofgather examples where a newtechnical
research
corporation was established by using
partnerships
andthea technical research associations ordirection of efforts to reform
successful examples of collaboration
the system were discussed at
between business and universities,
the meeting for promoting
and prepare, disseminate andstructural reform of futureBill to revise part of the Science and Technology Basic Laws, etc.
35

Minister in
ChargePrime Minister(the minister for
special missionofCabinetOffice (Scienceand Technology
Policy)),Ministerof
Education,
Culture, Sports,
ScienceandTechnology,
MinisterofEconomy,TradeandIndustry,
MinisterofInternal Affairs
andCommunications

MinisterofEconomy,TradeandIndustry

Provisional Translation
publicize a guidance that summarizes
the gist of establishment andutilization.

36

investment conference on
November 25, 2019. Basedon the mid-term report
prepared in December of theyear, the legal systempertaining to the issue isunder consideration now,
along with simplification ofprocedure for establishment
andoperation,andclarification by formulating
guidelines. In addition, as
part
of
this
effort,“Collaborative Innovation
Partnership (CIP)” wasadopted and publicized as
the name for the “technicalresearch association”, andthe promotional activities areunderway.

Provisional Translation
9.

Human Resources Development for the Society 5.0 era(1) Major progress of KPI《KPI》Have wireless LAN be standard in 100% of classrooms by FY 2020. 【76】⇒FY 2018: 45.6%《KPI》Have computers for student learners in 1 of every 3 classes

by FY 2020.

【77】⇒FY 2018: 1 for every 5.4 child students《KPI》Certify 100 courses as Fourth Industrial Revolution skill acquisition courses
by FY 2020.

【73】⇒April 2020: 72 courses(2) Major Progress of measures
Item of Measures
Human resource
development inuniversities, etc.

Human resource
development at
the primary andsecondaryeducation stages

Contents of Measures and
Implementation Period
・Universities will develop standard
curricula and teaching materials forbeginners in mathematics, data
science and AI in FY 2019 andproliferate this to universities andhigher vocational schools across thecountry. Also, in order to acquire thebasic ability to apply mathematics,
data science and AI to one's special
field in both the humanities andscience, develop standard curricula
and teaching materials at the applied
basic level by FY 2020.
・To realize the world's most advanced
high-quality education using thelatest technology for all students,
introduce the use of digitaltechnologies in all elementary,
middle and high schools as soon as
possible within 5 years andimplement comprehensive measures
to maximize the educational impact.
As for having needed ICT
environments in elementary schools,
junior high schools and high schools,
eventually achieve an environment inwhich each student has his/her own
computer and can fully utilize it bysetting goals and developing aroadmap in FY 2019.
37

Status of Progress and
Implementation
・ At the base consortium ofeducation in mathematics,
data science and AI, the“modelcurriculaformathematics, data scienceand AI (literacy level)” andthe like were developed
within FY2019 and were
deployed in universities andhigher vocational schools
across the country.

Minister in
ChargeMinisterof
Education,
Culture, Sports,
ScienceandTechnology

The“Comprehensive
Economic Measures toCreate Future of Security
andGrowth”(cabinetcouncil decision, December
5, 2019) stated that the
government “will promote
development in schools ofthehigh-speed/large
capacity
network
environment(in-schoolLAN), and especially, aims
to realize by FY2023, in thecompulsory education level,
the environment in which
each student has his/her own
computer and can fully

MinisterofInternal Affairs
andCommunications, Minister of
Education,
Culture, Sports,
ScienceandTechnology,
MinisterofEconomy,TradeandIndustry・Provisional Translation

Human resource
development andutilization in theindustrial world

・In the “unexplored IT humanresource discovery and development
business, ” identify individuals withhigh mathematical ability and in FY
2019 begin studying new methods fordeveloping individuals who create
information processing technology
including AI technology and carryout implementation from FY 2020.
38

utilize it, and the government
will secure the funds andprovide necessary assistanceon a continuous basis to local
public bodies that implement
the project” and presented
theroadmapfor
its
realization.
The
supplementary budget of
FY2019includedtheexpenses necessary for
integral maintenance of the
one-terminal-per-person
policy in school and highspeed/large-capacity
communication network as
the “realization of GIGA
School idea.” Also, in theenvironmentinwhichterminal are installed inschools, in order to create theopportunity for as many
school children as possible tocome in touch with EdTechsoftwareservices,the“EdTechintroduction
subsidy” was incorporated in
the supplementary budget of
FY2019. Furthermore, withthe project to establish amodel of utilization of local
5G for resolving the
problems in the field of
education, the plan todemonstrate the ways forleaning and educational
guidancethattakes
advantage of the merits of
5G in underway.
・On the new methods for the“unexplored IT humanresource discovery anddevelopment business, ” theembodiment of the projectthrough hearings of experts,
etc. aiming to review it in
FY2020 is proceeding.

MinisterofEconomy,TradeandIndustry

Provisional Translation
II． Reforms to Social Security Systems for All Generations
1. Securing employment opportunities up to the age of 70(1) Major Progress of KPI《KPI》“2025: Employment rate for people aged 65-69: 51.6%” [96]⇒2019: 48.4%(2) Major Progress of measures
Item of Measures
Securing
employment
opportunities up
to the age of 70

Contents of Measures and
Implementation Period(Providing a variety of options)
・To secure employment opportunities
from the age of 65 up to the age of70, we will provide the legal systemwith a variety of options, and let
relevant companies examine
mechanisms that enable the labor andmanagement to discuss which of theoptions should be made available inthe companies, and mechanisms thatenable the companies to consult withrespective employees to decide
which option to apply to them.

(Relation between this measure and thepension system)
・Now people can start to receive
pension at any point between the agesof 60 and 70, as they choose. We will
extend the age range beyond 70. In
addition, soon after discussions at theSocial Security Council, we will revise
the pension system for elderly people
still working, paying attention to
fairness, and keeping in mind theprospect of abolishing the system in the
future to avoid discouraging theirmotivation for work.

10
11

Status of Progress and
Implementation

Minister in
Charge・In relation with the Act on Ministerof
Stabilization of Employment Health, Labourof Elderly Persons, 10 we and Welfare
submitted a bill of law
amendment 11 to the 201st
Session of the National Diet,
which included an obligationof taking new measures andmaking the best endeavor tosecureemployment
opportunities up to the age of70, which was added to theexisting obligations related
to securing employment forworkers up to the age of 65.
The bill was enacted on
March 31, 2020 (to be
enforced on April 1, 2021).

・Based on the results of the Ministerof
financial review conducted Health, Labour
in 2019, we discussed and Welfare
revision of the pension
system for elderly people
still working, expansion of
the range of optional ages forstarting receipt of pension,
etc.
at
the
review
commissiononsocialsecurity systems for all
generations
and
other
meetings, so that we could
secure and increase funds forpension by prolonging theperiod of employment. Then

The Act on Stabilization of Employment of Elderly Persons (Act No. 68 of 1971).
The bill to amend the Employment Insurance Act, etc.
39

Provisional Translation
we compiled an “interim
report of the review
commissiononsocialsecurity systems for all
generations” on December
19, 2019. Based on thisreport, we submitted a bill toamend the National Pension
Act and other regulations forstrengthening the functionsof the pension system to the201st Session of the National
Diet,
which
included
expansion of the age range
for starting receipt ofpension from the current 6070 to 60-75, and hike of thereference value of monthly
income for suspension of
payment of employees’
special old age pension forpeople aged 60 to 64 fromthe current 280,000 yen to
470,000 yen, which is equal
to the reference value forsuspension of payment of old
age pension for people aged
65 or older.
(Environment Improvements)
・We will provide an improved
environment where the elderly candemonstrate their abilities and play
active roles without any concern, by
supporting construction ofevaluation and reward systems thatplace emphasis on abilities andresults for ensuring elderly people’s
motivation and satisfaction;encouraging measures for
employment of elderly people taken
mainly by local governments;
supporting career development andpromoting recurrent education; andensuring elderly people’s safety andhealth.
We will also support employmentof women of middle and older age,for example by strengthening thefunctions of Silver Human
Resources Centers, including
promotion of participation of
female members.
40

・ We increased subsidies for Minsterofpromoting employment of Health, Labour
people over 65 and advanced and Welfare
regional cooperation projects
on encouraging never retire,in order to create anenvironment where theelderly can demonstrate theirabilities and play active roles
without any concern.
・ In order to support careerdevelopment in preparationfor older age, we are striving,from FY2020 on, to establish
career support centers, toprovide training sessions forexisting workers of middle
and older age, and to develop
and expand
training
programs for job losers of
middle and older age.
・We are giving publicity tothe“Guidelines
forEnsuring Older Workers’Provisional Translation
Safety and Health.” From
FY2020 on, with subsidies,
we will support
SMEs’
efforts to ensure older
workers’ safety and health.
・ In order to support
employment of women of
middle and older age, wehave made efforts to promote
exploration and matching of
employment opportunities inshorthanded fields, as ameasure to strengthen thefunctions of Silver Human
Resources
Centers,
including promotion ofparticipation of female
members.

41

Provisional Translation
2． Promotion of Mid-career Hiring and Hiring of People with Experience(1) Major Progress of KPI《KPI》“2020: Ratio of hirees who have changed jobs: 9.0%” [98]⇒2018: 8.2%
(2) Major Progress of measures
Item of Measures
Promotion of
mid-career hiringand hiring ofpeople withexperience

Contents of Measures andStatus of Progress andMinister in
Implementation Period
Implementation
Charge・Given 100-year-life, it is necessary to ・ In relation with the Labor Ministerof
pursue reform of the employment
Measures Comprehensive Health, Labour
system so that all workers with thePromotion Act 12 , we and Welfare
desire to work can demonstrate theirsubmitted a bill of law
abilities fully. Especially it isamendment 13 to the 201st
important to make necessary
Session of the National Diet,
revisions to large companies’
which
requires large
traditional practice of hiring newcompanies to disclose theirgraduates all at once in spring and toratio of hired mid-career
expand hiring of mid-career workers
workers and persons withand persons with experience throughexperience to all new
year-round recruitment.
employees. The bill was
To this end, companies have to revise
enacted on March 31, 2020
their employment system and their(to be enforced on April 1,
evaluation and reward system. The
2021).
government will request individual
・ We released a videolarge companies to disclose their ratio
introducing good practices ofof hired mid-career workers andemployment systems andpersons with experience to all new
evaluation
andrewardemployees.
systems of companies which
are active in hiring midcareer workers and persons
with experience.

The Act on Comprehensive Promotion of Labor Measures, Stabilization of Employment of Employees andEnrichment of Their Working Lives (Act No. 132 of 1966).
13 A bill to amend the Employment Insurance Act.
42
12

Provisional Translation
3.

Expansion of Diverse and Flexible Work Styles(1) Major Progress of KPIs

《KPI》“2020: 3-fold rise vs. FY2012 in the percentage of companies adopting
telework” [102]⇒2019: 20.2% (2012: 11.5%)《KPI》“2020: 55% of women continue employment after birth of first child” [108]⇒2015: 53.1％(2) Major Progress of measures
Item of Measures
Expansion ofdiverse andflexible work
stylesContents of Measures and
Implementation Period
・We will promote propagation of sidejobs and multiple jobs, paying
attention to restriction of long
working hours and securement ofworkers’ health. We will give
publicity to the guidelines and therevised “model work rules.” In
addition, we will accelerate
discussions at the review commission
about ways to enhance securement ofworkers’ health and effective ways tomanage working hours, and reachconclusions by the end of 2019.
Furthermore, we will start
discussions at the Labor Policy
Council to reach conclusions as soon
as possible.
・Now, compensation for work-related
accidents in case of side jobs andmultiple jobs is discussed at theLabor Policy Council. We willproceed with summarizing various
arguments to reach conclusions assoon as possible.

・At a “review commission forsummarizing issues related to
employment-like work styles,” wewill summarize, by summer of 2019,14

The bill to amend the Employment Insurance Act.
43

Status of Progress andMinister in
Implementation
Charge・We are giving publicity to the Ministerofguidelines,
through Health, Labour
distributing
pamphlets, and Welfare
holding seminars, etc.
・ We compiled a report onways to manage working
hours and to secure workers’
health at the review
commission in August of
2019, and we are furtheringarguments at the Labor
Policy Council.

・ In regard to how tocompensate for work-related
accidents, we compiled areporttitled“Workers’Compensation
Insurance
Payment to Workers with
Multiple Jobs” at the Labor
Policy Council in Decemberof 2019, and submitted a billof law amendment 14 to the201st Session of the National
Diet in February of 2020,
which was enacted on March
31, 2020 (to be enforced on
April 1, 2021).
・At the “review meeting forsummarizing issues related to
employment-likeworkstyles,” we examined how toProvisional Translationsome challenges related to work
styles free from employment
relationship, such as freelancing,including specification of contract
terms, clarification of rules for
deciding, changing and terminating
contract terms, and adequate
remuneration, so that we caninvestigate them from a medium- andlong-term perspective, including thenecessity of legal protection. The
challenges of special priority will be
examined promptly.

Support forrealizing the work
style that enables
the maximum
productivity

・With thorough supervision andguidance, we will strive to ensure
appropriate operation of theregulation with penalty on overtime
work which came into effect to large
companies as of April of 2019. In
addition, in preparation for
application of the rule to SMEs in
April of 2020 and to construction
businesses, doctors, etc. in April of2024, we will enhance the consulting
system and give the widest possible
publicity to the regulation. In thegrace period for application, we will
formulate necessary laws andencourage and help relevant
employers to take measures for
reducing overtime work and ensuring
workers’ health in order to ensuresmooth application of the regulation.

give
protection
toemployment-likeworkstyles, and made an interim
report in June of 2019.
We will continue toexamine the issue with focus
on items identified in theinterim report as challengesof special priority, including
specification of contract
terms, clarification of rules
related to deciding, changing
and terminating contract
terms,
andadequate
remuneration.
Aftergrasping
andsummarizing the present
situation in a centralizedmanner,the
CabinetSecretariat will formulate
government policies for the
future in cooperation withconcerned
government
agencies.

・We are seeking to operate the Ministerof
regulation appropriately. For Health, Labour
example,whenlarge and Welfare
companies
violatetheovertime cap, we give
guidance to them so that they
can correct their practice.
・ In preparation for its
application to SMEs in Aprilof 2020 and to some industry
types eligible for a grace
period in April of 2024, weare striving to make theregulation known to allmembers of the working
hours
counseling/support
units set up at Labor
Standards Inspection Offices
all over Japan, and of the
Work
Style
ReformPromotion Support Centersestablished in 47 prefectures.
・ Three new laws 15 were

The Act to Amend the Act for Promoting Quality Assurance in Public Works (Act No. 35 of 2019), and the Act
to Amend the Construction Business Act and the Act for Promoting Proper Tendering and Contracting for Public
Works (Act No. 30 of 2019).
44

15

Provisional Translation
enacted for reform of work
style in the constructionindustry, and they have been
enforced sequentially.
・ The revised Motor Truck
Transportation
Business
Act 16 was enacted forreform of work style in thetruck transportation industry.
While striving to operate thelaw properly, we have been
executing the government’s
action plans for realization ofwork style reform steadily,
including deployment of a“white logistics” promotion
movement aimed at fairness
in transactions and creationof an employee-friendly
working environment. In
addition, we are giving
publicity to the guidelines
formulated in November of2018 at seminars held in
various prefectures.
・At the “review commission
for promoting reform ofdoctors’ work style,” we are
discussing matters related to
doctors’ work style that
require actions to be taken in
medical jurisprudence andmedicalcare
policies,
including a change in thesystem. To reduce doctors’
overtime work, we areconsidering propagation andpromotionoftask
shifting/sharing, including
institutional measures, at the“review commission for
promotingtask
shifting/sharing for reformof doctors’ work style.” In
addition, we are discussing
management
reform(especiallychangeinawareness of managers of
medical facilities and reformof personnel management)
andimprovementof16

The Act to Amend the Motor Truck Transportation Business Act (Act No. 96 of 2018).
45

Provisional Translation
business efficiency by use of
ICT, while we are taking
budgetary steps for thosemeasures.
Further expansionof women’s
activeparticipation andpromotion ofdiversity
management

・We will correct the present situationof women overburdened withchildcare and housework byencouraging men’s participation, sothat women can continue their career
after giving birth.

To
promotemen’s Ministerofparticipation in childcare, we Health, Labour
are not only giving the and Welfare
widest possible publicity to
the Child Care and Family
Care Leave Act17and striving
to ensure its appropriate
operation, but also taking
measures, including the
Ikumen (childcare men)
Project,
toencourage
companies
tocreateworkplace culture in which itis easy for men to takepaternity leave.
Inaddition, we are providing
subsidies to employers who
havecreatedworkingenvironments where taking
paternity leave is easy.

・

The Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring forChildren and Other Family Members (Act No. 76 of 1991).
46

17

Provisional Translation
4．

Prevention of Disease and Nursing Care

(1) Major Progress of KPI《KPI》“Aim to prolong healthy life expectancy by at least three years formen and women to at least 75 years” [113](2) Major Progress of measures
Item of Measures
Promotion of
diseaseprevention

Contents of Measures and
Implementation Period(System to support insurers’ efforts(National Health Insurance))・It is necessary to enhance incentives
for insurers to prevent diseases and topromote health in order to roll out
advanced local governments’ models
horizontally. We will strengthen the
support system for insurers’ efforts
drastically in order to give a higher
position to disease prevention in the
public insurance system. At the sametime, we will evaluate initiatives
contributive to disease prevention,and increase variation in support
allotment by (a) giving higher points
to prevention of the aggravation oflifestyle diseases, introduction of
incentives to individuals and rise indental checkup rate and cancer
screening rate, and (b) giving higher
points according to results of disease
prevention and health promotion
measures to promote introduction of
excellent private services.

47

Status of Progress and
Implementation

Minister in
Charge・ In July of 2019, after Ministerofdiscussing
evaluation Health, Labour
indicators
withlocal and Welfare
governments for the FY2020
support system for insurers’
efforts,
weincreasedvariationinsupportallotment by giving higher
pointstoevaluation
indicators related to disease
prevention
andhealthpromotion (specific healthexamination and specifichealth guidance, preventionof the aggravation ofdiabetes and other lifestylediseases, introduction of
incentives to individuals, risein dental checkup rate andcancer screening rate), andmade some revisions to thesystem,includingintroduction of an outcome
indicator
relatedtoprevention
oftheaggregation of a disease (thenumber of incident dialysis
patients).
In addition, with the
FY2020budget,westrengthened the support
system for insurers’ efforts
drastically, appropriating 50
billion yen newly (200billion yen for operating
expenses and 300 billion yen
for items linked to operating
expenses),topromoteProvisional Translationdisease prevention
health improvement.
(System for addition and subtraction of
the amount of payment to the lateelderly support fund (health insurance
societies))
・We will strengthen incentives for
insurers’ (health insurance societies’)
disease prevention and healthpromotion measures by increasing
the maximum percentages of both
addition and subtraction of theamount of payment to the late-elderly
support fund to 10% on both sides in
FY2020, from 0.23% in FY2017.

Promotion of
prevention ofnursing careand・Since FY2018, we have been Ministerofincreasing the scope and Health, Labour
maximum rate of additional and Welfare
payment to the late-elderly
support fund gradually. We
set the maximum rate ofaddition for FY2020 at 10%.
As for subtraction, we madecomprehensive evaluation
with several indicators,
including specific healthexamination rate and specifichealth guidance rate as wellas cancer screening rate anddental checkup rate, and set
three
categories
ofsubtraction according to thestatus of their achievements.
We set the maximum
subtraction rate for payment
to the support fund at 10% in
FY2020.

(Nursing care incentive grants (grants
for promotion of insurers’ enhancementof their functions))
・It is necessary to improve insurers’
・To give a higher position to Ministerofand prefectures’ incentives in order tonursing care prevention in Health, Labourroll out advanced local governments’
the public insurance system, and Welfare
nursing care prevention models
we have introduced support
horizontally. We will enhance
grants for insurers’ efforts
incentive grants for nursing carerelated to long-term caredrastically to give a higher position to
insurance (20 billion yen forprevention of nursing care in the
improving the social security
public insurance system. At the same
system), in addition to thetime, we will evaluate initiatives
existing grants for promotion
contributive to prevention of nursingof insurers’ enhancement ofcare, and increase variation in grant
their functions (20 billion
allotment, based on (a) use of privateyen), and decided that theservices leading to activation of
new grants should be usedelderly persons’ mind and body, such
onlyfor
initiatives
as exercise services, expansion andcontributive to nursing care
improvement of facilities where local
prevention
andhealthold people can meet and interact withpromotion to ensure their
one another, and utilization of points,
effective utilization for thesefor prevention of nursing care, andends.
(b) the number of elderly persons
In the criteria for allotment
participating as nursing assistants andof the grants in FY2020, we
48

Provisional Translation
points given to volunteers andnursing assistants, for promotion of
employment and active roles of theelderly.

Promotion ofevidence-based
policy making

Promotion of
behavioral change
by use of nudge
theoryhave focused our assessment
on prevention of nursing careand promotion of health aswellasinitiatives
contributive to promotion of
the elderly’s employment
and active roles.
・In promoting initiatives contributive
・ The Ministry of Health,to prevention of disease and nursing
LabourandWelfarecare, it is important to reflect(MHLW) and the Ministryevidence-based evaluation in theof Economy, Trade andinitiatives. To this end, we will makeIndustry (METI) will start
verification projects to accumulate
large-scaleverification
evidence and to confirm the healthprojects for confirming thepromotion effects of disease
health promotion effects of
prevention and health promotion
disease prevention andmeasures using data.
health promotion measures
To ensure statistical accuracy, theusing data, sequentiallygovernment will make basic policies
from the summer of 2020.
for the verification, including target
・ In preparation for thefields and verification methods, andverification,
wehaveencourage insurers and others to
exchanged opinions with
implement appropriate prevention
experts of statistics toand health promotion projects based
ensure statistical accuracy.
on results of the verification.
・ As they are large-scale
projects related to disease
prevention
andhealthpromotion,
wehaveappropriated 730 million
yen of MHLW (the budget
for FY2020) and 1.5 billion
yen of METI (the sum of therevised budget for FY2019
and the budget for FY2020).
・To ensure that health examination
・ In various scenes, we areresults and health examination notices
giving publicity to thewill lead to individuals’ behavioral“Handbook on Measureschange and increase in examination
for Increasing Examination
rates, we will improve our way ofRates (the second edition)”providing information, using nudge
that uses nudge theory. In
theory, for greater ease ofaddition, we are supporting
understanding for examinees, withinsurers’
effortstouse of overall statistics, comparison
recommend
medicalwith mean values, provision of future
examinations.
predictions, etc.
・In regard to specific healthexamination, we divided thecountry into 7 blocks in
FY2019.
In
respective
blocks, we held meetings
with
local
staff,
andattempted to roll out
advanced and good practices
related to encouraging people
49

Ministerof
Health, Labour
andWelfare,and Minister of
Economy,TradeandIndustry

Ministerof
Health, Labourand WelfareProvisional Translation
to receive
horizontally.
Promotion of
diseaseprevention andhealthimprovement
services(Promotion of companies’ healthmanagement and health investment)
・We will promote cooperation
between health insurance societies
and companies by using healthscoring reports that visualize thesocieties’ efforts to prevent disease
and to promote health. By visualizing
the amount of their healthinvestments, we will ensure that thecapital market evaluates companies’
health management properly.

(Improvement of the quality of healthcare services)・ We will formulate a guideline for
improving the quality of health careservices. We will also standardize
health care data.

50

examinations

・ We started sending healthscoring reports to healthinsurance
societiesin
FY2018 (in FY2019, reports
were sent in September).
From FY2021 on, reports forrespective employers will
be prepared.
To visualize companies’
health investments, we havebeen
holding
review
commission meetings titled“Visualization of HealthInvestments”
since
September of 2019, making
discussions for visualizationof health investments andtheir effect. Based on these
discussions, we will compilea “Health Investment andManagement
Accounting
Guideline” in June of 2020,
setting up a framework forcompanies’ effective healthmanagement and dialogues
withvariousmarkets,
including the capital market.
In line with the guideline, by
the end of FY2020, we willsummarize how to disclose
information regarding healthmanagement to be used in
the capital market, in
anticipation of introductionofincentives
furtherpromoting companies’ healthinvestments.

MinisterofInternal Affairs
andCommunications, Minister ofFinance,
Ministerof
Education,
Culture, Sports,
ScienceandTechnology,
Ministerof
Health, Labour
andWelfare,and Minister of
Economy,TradeandIndustry・ In April of 2019, we
compiled a document titledthe “Principles of HealthCare Service Guidelines”.
We are encouraging allindustrial
associations
related to health care toformulatetheirown
voluntary guidelines, andassisting them in their

MinisterofEconomy,TradeandIndustry

Provisional Translation
voluntary efforts to improve
the quality of health care.
In regard to use of
information from healthexaminations, we set up a“review commission for
promoting use of PHRs
(personal health records) toimprove people’s health” at
MHLW, and based on the“Points to Consider in
Examining PHRs from the
Point of Views of the Publicand Patients” compiled at thecommission,
the private
sector utilization working
unit is examining how toprovide information in theform of PHRs, how to use
PHRs in private businesses,
rules to observe, etc. incoordination with relevant
ministries and agencies.

51

Provisional Translation
III.
1.

Reinforcement of Regional Measures under Population Decline
Maintenance of Community Infrastructure and Competition Policy(1) Major progress of KPI《KPI》Aim for a service industry labor productivity growth rate of 2.0% by
2020 [130]⇒2018: -0.03% (2017: 0.18%)《KPI》Increase the number of profitable SMEs and micro businesses from 700,000 to 1.4 million by 2020 [131]⇒FY2017: 990,983 companies (FY2016: 954,546 companies)(2) Major progress of measures
Item of Measures

Contents of Measures and
Implementation Period

Status of Progress and
Implementation

Minister in
ChargeMaintenance ofcommunity
infrastructure andcompetition
policy・The failure of “core community
businesses,” such as regional banks
and bus service operators thatprovide core services in thecommunity, would have an immense
adverse impact on the region andtheir sustenance continues to pose anational challenge.
On the other hand, the local
business of operators in these two
sectors is deteriorating rapidly todaywith the declining birthrate andpopulation decline. Management
integration and joint management aresome of the alternatives that suchbusinesses can use to strengthen their
management capabilities quickly tosustain community infrastructure
functions.
For this reason, special measureson management integration, etc.
should be implemented exclusively
for such core community businesses
to sustain the local community. In
doing so, it is essential that the"interests of general consumers,” theultimate objective of the AntiMonopoly Act, are secured to prevent
any harmful impact of management
integration from reaching consumers
and users, and to utilize the fruits ofmanagement integration for thesustenance of local community
infrastructure and economic
52

・ In order to maintain theservices provided by bus
service
operators
andregional banks, a bill on
special measures of the Act
on Prohibition of Private
Monopolization
andMaintenance of Fair Trade,which establishes special
measures of the AntiMonopoly Act for the
maintenance of the provisionof basic services related to
the general passenger motortransport
businessandbanking business in theregion, was submitted to the201st session of the Diet.

Prime Minister(MinisterinchargeofEconomic
Revitalization)

Provisional Translation
development. Close cooperation
between the Japan Fair Trade
Commission and competent
government agencies is presupposed
to ensure that the findings of both
agencies are utilized to the maximum
extent possible.
First, it is imperative to maintainbus services, which constitute animportant means of transportation for
local residents, particularly for seniorcitizens. Many people have voiced
their concerns about theunpredictable conditions in theirregions. One typical case would be toallow bus service operators to
optimize the number of frequent
services in the city center throughjoint management or other measures,
so that they can adjust their revenue
and maintain services on lowdemand routes. This should lead toenhanced convenience for local
residents. The new scheme will be
realized on the premise of
establishing a stakeholder council in
the region.
Second, regional banks support the
local economy as the main banks for
70 to 80 percent of businesses in theirrespective regions. If theirperformance were to deteriorate, thenegative effects including reduced
lending would extend to depositors
and borrowers, hindering the banks’ability to provide smooth financial
intermediation in the region. In orderto improve the business of regionalbanks at an early stage, management
integration will be approved as a
special measure, even if that meant
the banks would command a large
market share, in accordance with theextra capacity generated bymanagement integration on thepremise that efforts will be made tomaintain services in regions.
A law on special measures will beestablished for these purposes. The
measures will be in effect for aperiod of 10 years and the bill for thelaw on special measures will be
submitted to the ordinary session of53

Provisional Translation
the Diet in 2020.

54

Provisional Translation2.

Supplying Human Resources to Regions(1) Major progress of KPI《KPI》Aim for a service industry labor productivity growth rate of 2.0% by 2020[130] (Repeat)⇒2018: -0.03％ (2017: 0.18％)《KPI》Increase the number of profitable SMEs and micro businesses from 700,000
to 1.4 million by 2020 [131] (Repeat)⇒FY2017: 990,983 companies (FY2016: 954,546 companies)(2) Major progress of measures
Item of Measures
Supplying humanresources toregions

Contents of Measures and
Implementation Period
・To increase productivity acrossJapan, more flexible options must be
made available for all occupations
nationwide in all regions andindustries.
In particular, in regions that facedecline, securing professional andmanagement human resources thatwould help enhance their corporate
management levels carries hugesignificance. Meanwhile, with thearrival of the era of the 100-year life,
there will be a growing trend to seek
job changes, freelancing and sidebusinesses as well as opportunities
for retirees to play an active role post
mandatory retirement, primarily for
those in major urban centers. These
two needs mutually complement one
another and strategically matchingthem will be one of the top priorities
in promoting the active role ofhuman resources and increasing
productivity in the future.
Often, however, SMEs and microbusinesses in regions have not
identified the kind of humanresources they require and thefunctions they expect from humanresources. This often translates into
the difficulty of posting appropriate
job offers or providing appropriatecompensation to the talent they haveacquired.
Consequently, the labor market inregions remains immature. This is
why employee placement businesses
55

Status of Progress and
Implementation
・ In professional humanresourcesbusiness,theProfessional
Human
Resources Strategic Bases
established in 45 prefectures(excluding
Tokyo
and
Okinawa)areworking
togetherwithregional
financial institutions, etc. toenable regional companies tolaunch“aggressive
management” by starting
newbusinessesordeveloping
new
sales
channels while supporting
the matching of professional
human resources to support
their growth strategies. Also,
the bases collaborate withleading companies in urban
areas to execute a backflow
of human resources in
temporaryassignment,
training and other forms.
As of the end of March
2020, there were 43,867
consultations and 8,617
contracts since the project
was implemented in January
2016.

Minister in
ChargePrime Minister(MinisterofState for the
Promotion of
Overcoming
Population
DeclineandVitalizing Local
EconomyinJapan)

Provisional Translation
are reluctant to expand into regions
and the local inflow of humanresources is limited.
Considering the current situation,
efforts will be focused andconcentrated on the following: (i)reinforcing the functions forsupporting local companies at thereceiving end to clarify their
management strategy and humanresource requirements (promote theinvolvement of local financial
institutions, etc.); (ii) fundamentally
improving matching functions withhuman resources in major urban
centers; and (iii) building aframework for promoting the supplyof human resources from majorurban centers to regions andpromptly speeding up the flow ofprofessional and management humanresources from major urban centersto regions.

56

Provisional Translation
3.

Revitalization of Communities with Rapidly Declining Populations(1) Major Progress of KPI《KPI》Aim for a service industry labor productivity growth rate of 2.0% by 2020[130] (Repeat)⇒2018: -0.03% (2017: 0.18%)《KPI》Increase the number of profitable SMEs and micro businesses from 700,000
to 1.4 million by 2020 [131] (Repeat)⇒FY2017: 990,983 companies (FY2016: 954,546 companies)(2) Major progress of measures
Item of Measures
Revitalization ofcommunities with
rapidly declining
populations

Contents of Measures and
Implementation Period
・In communities with rapidly
declining populations, humanresources who shoulder
responsibilities in local industry, suchas agriculture, forestry, fisheries andcommerce, are in short supply, which
has added to the difficulty ofsustaining the local community andeconomy. For this reason, measures
will be taken to secure humanresources for community
development and encourage them toplay an active role.

Status of Progress and
Implementation
・The Act on the Promotion ofSpecific
Regional
Development Projects to
Cope with the Rapid Decline
in Regional Population (ActNo. 64 of 2019) was enacted
at the 200th session of theDiet, and will come into
effect in June 2020. To thisend, in the budget for fiscal
2020, a grant for thepromotion of the specificregional
development
project was allocated tosupportbusinesscooperatives that dispatchhuman
resourcestobusinesses in regions basedon the Act, as well as thepromulgationoftheenforcement regulations 18
and the holding of briefing
sessions in each regional
block.

Minister in
ChargePrime Minister(Minister ofState
for Regional
Revitalization),
MinisterforInternal Affairs
andCommunications

18Enforcement Regulations for the Act on the Promotion of Specific Regional Development Projects to Cope with

the Rapid Decline in Regional Population (Ordinance of the Ministry of Posts and Telecommunications No. 11)
57

Provisional Translation
4.

Tourism, Sports, and Culture and the Arts

(1) Major progress of KPI《KPI》Aim to increase the number of international visitors to Japan to 40
million in 2020 and 60 million in 2030 [146]⇒2019: 31.88 million (2012: 8.36 million)《KPI》Aim to increase the amount of consumption by international visitors
to Japan to 8 trillion yen in 2020 and 15 trillion yen in 2030 [147]⇒2019: 4.8135 trillion yen (2012: 1.0846 trillion yen)
《KPI》Expand the sports market size to 10 trillion yen by 2020 and 15 trillion
yen by 2025 [153]⇒2017: 8.4 trillion yen (provisional estimate of sports GDP)《KPI》Expand GDP of arts and culture to 18 trillion yen (about 3% of GDP)by 2025 [156]⇒2016: 8.9 trillion yen (2015: 8.8 trillion yen)

(2) Major progress of measures
Item of Measures

Contents of Measures and
Implementation Period

Realization of a
tourism-based
country・Measures to make Japan a worldclass tourism destination will be
continued as tourism is a decisive
factor in the achievement of regional
revitalization and a pillar of thegrowth strategy.

Status of Progress and
Implementation

58

Minister in
Charge・ The Government has All ministers
launched measures to makeJapan a world-class tourism
destination based on the"Tourism Vision Realization
Program 2019" (adopted by
the Ministerial Conference
on Promotion of Tourismoriented Country of June2019).
The concrete steps adopted
to develop the environment
for receiving visitors include
announcements in multiple
languages, free Wi-Fi andcash-free transactions.
Also, to develop new
attractions in regions, theGovernment has promoted
thedevelopmentofinternationally competitivesnow resorts, the use of
museums and art galleries ascultural tourism resources,
and the expansion of hands-

Provisional Translation

Futuredevelopment of
the sports
industry・Governance codes for sports
organizations will be formulated anda mechanism for theirimplementation will be establishedduring FY2019 to encourage
management reforms based on thetwo pillars of ensuring governanceand improving the profitability ofnational sports federations. A manualon the promotion and marketingstrategy will be developed during
FY2019 and an advanced model will
be formulated. Also, a review will be
conducted on new forms of support
including encouraging national sports
federations to secure their financialbase through management reform.

59

on content in national parks.
In addition, as part of its
efforts to promote theappropriate role sharing andenhancedcollaboration
between the Japan National
Tourism Organization andregions, the Government has
made clear that the regions
assumetheroleofdeveloping the environment
forreceiving
visitors.
Furthermore, measures tosophisticate
promotional
activities and consultation
services in each region havebeen stepped up so that theJapan National Tourism
Organization can effectively
disseminate the appeal ofdifferent regions.
・Governance codes for sports
organizations for both thenational sports federations
and other general sports
organizations
were
formulated (June 10 andAugust27,
2019,respectively). Starting in
FY2020, each of the national
sportsfederations
will
explain and announce theircompliance status while thegoverning body will conduct
a compliance review every
four years.
・The Government formulated
a manual on disseminationand marketing strategy inMarch 2020 and supported
two organizations towards
the formulation of anadvanced model.
・ The Government examined
new forms of support
includingencouraging
national sports federations tosecure their financial basethroughmanagement

Ministerof
Education,
Culture, Sports,
ScienceandTechnology

Provisional Translation

Economic
vitalization
through arts andculture・The “Tokyo National Museum New
Era Plan” that seeks to upgrade theTokyo National Museum into aworld-class facility will be
implemented steadily, and theoutcomes will be rolled out
horizontally at other museums. In
addition, the Government will
promote initiatives that feature therespective regions by, for instance,
showing well-known works withclose ties with the locality that are
owned by the national government atregional museums, art museums, andother facilities. As another initiative,
the Government will examine a newframework geared towards creating
culture-related inbound tourism.
Furthermore, the legacy of theInternational Council of Museums(ICOM) Kyoto Conference 2019 will
be utilized to reinforce the functionsof local museums. Efforts will bemade to create a positive cycle bythoroughly utilizing cultural stock at
cultural facilities, such as working toenhance and visualize collections andimproving the quality of curators.

60

reform. Starting in FY2020,
theGovernment
implemented
budgetmeasurestosupportoutstanding promotion andmarketing efforts by national
sports federations.
・The Tokyo National Museum
will promote multilingual
announcement and guidance
to make it more accessible toforeign visitors. The four
national museums decided toraise the fees for permanent
exhibitions (from April2020) to support the
improvement of the viewing
environment.
・To promote cultural tourism
in regions, a draft law on the
promotionofculturaltourism in regions centeredon cultural tourism facilities
was submitted to the 201st
session of the Diet.
・ With regard to thestrengthening of museum
functions, the Museum
Division of the Council for
Cultural Affairs was newly
established in November
2019 to promote ongoing
discussions on museum
policy, with a view to thediscussions
attheInternational Conference ofMuseums (ICOM) Kyoto
2019.
・To create a positive cycle bythoroughly utilizing cultural
stock at cultural facilities, theGovernment has exchanged
opinions with the art world
and industry at the “IndustryAcademia-Government
Collaboration Roundtable”
and other meetings.

Ministerof
Education,
Culture, Sports,
ScienceandTechnology

Provisional Translation
5.

National Strategic Special Zones(1) Major progress of KPI《KPI》Japan aims to be ranked within the top three among the developed
countries in the World Bank’s Ease of Doing Business ranking by 2020[20] (Repeat)⇒Ranked 18th at the time of announcement in October 2019 (7 places higher thanprevious year)《KPI》Tokyo aims to be ranked in the top three in the Global Power City Index
by 2020 [28] (Repeat)⇒Ranked 3rd in 2019 (4th in 2012)(2) Major progress of measures
Item of Measures
National StrategicSpecial Zones

Contents of Measures andStatus of Progress and
Implementation Period
Implementation
・From the perspective of creating a・ With regard to the "Super
sound competitive environment andCity" initiative, a bill 19 tobased on the National Strategic
revise the Act on National
Special Zone System, efforts will be
Strategic Special Zones wasmade to develop the technologicalsubmitted to the 201st
foundation for Society 5.0 andsession of the Diet. The bill,urgently establish a legal system that
centered around the data
simultaneously and comprehensively
collaboration
platformpromotes multiple regulatory reforms
projectsforNational
distinctive to the regions based on theStrategic Special Zones,consensus of local residents. Theiraims to promote rapid andaim is to realize the “Super City”
integrated regulatory reform
initiative that seeks to develop, as
for the implementation of
global pioneers, “whole future cities”
advanced projects based onthat materialize the future living
the consensus of local
through the use of AI and big data.
residents.
・Also, to realize this plan, theFY2020 budget incorporated
research and studies on theconstruction of a crosssectoral data collaboration
platform in the selected
cities, support for thecreationofadvancedbusiness plans by utilizing
data, and operational support
for holding council meetingsand other activities.
・In addition, efforts will be made to・With regard to the sandbox
create a ‘sandbox system’ for areasystem for area-specificspecific regulations in order to speed
regulations, a bill20 to revise

19Draft bill to partially revise the Act on National Strategic Special Zones
20Draft bill to partially revise the Act on National Strategic Special Zones

61

Minister in
ChargePrime Minister(MinisterofState
for Regional
Revitalization)

Prime Minister(Minister
of
State
for

Provisional Translation
up and facilitate the demonstration
testing of technologies of the near
future.

62

the Act on National Strategic Regional
Special Zones to create the Revitalization)
said system was submitted to
the 201st session of the Diet.

Provisional Translation
6.

Increase Productivity of SMEs and Micro Businesses(1) Major progress of KPI《KPI》Aim for 2.0% growth of labor productivity of service industry by 2020[130] (Repeat)⇒2018: -0.03% (2017: 0.18%)《KPI》Aim to promote the introduction of IT tools for approximately 1 million
firms, that are equivalent to about 30% of SMEs and micro businesses
in the three years until 2020 [132]⇒132,139 companies(as of March 2020)《KPI》Increase the number of profitable SMEs and micro businesses from
700,000 firms to 1.4 million firms by 2020 [131] (Repeat)⇒FY2017: 990,983 companies (FY2016: 954,546 companies)《KPI》Aim to raise the business entry rate above business exit rate at levels
comparable to those in the US and the UK (10% range) [133]⇒FY2018: Entry rate 4.4% (FY2017: 5.6%), exit rate 3.5%(FY2017: 3.5%)《KPI》Increase the ratio of SMEs which have overseas subsidiaries by 1.5
times compared to that in 2015 by 2023 [134]⇒2017: 1.09 times (2016: 1.03 times)(2) Major progress of measures
Item of Measures
Support for
digitalimplementation

Contents of Measures andStatus of Progress and
Implementation Period
Implementation
・In order to disseminate initiatives for ・ Some 9,531 projects were
utilizing digitalization for
adopted and supported under
productivity improvement, thethe“Manufacturing,
Government will continue to promote
Commercial and Service
support in different forms including
Productivity Improvement
the Manufacturing Promotion and IT
Promotion Subsidy”
asIntroduction Subsidy. Also, plans to
FY2018supplementary
expand the scope of subsidies thatbudget projects and 1,429
promote digitalization, including
projects (as of March 2020)
cloud accounting in the start-up stage
as FY2019 supplementary
and the use of digital tools, such as
budgetprojects(firstcrowdfunding, will be examined as
deadline). In addition, somepositive factors to be considered at
7,386 projects were adopted
the time of introduction.
and supported as "Projects to
Support the Introduction ofIT
forImproving
Productivity in Services,etc."(FY2018
supplementarybudgetprojects), and 2,464 projects(as of March 2020) as
63

Minister in
ChargeMinisterofEconomy,TradeandIndustry

Provisional Translation

・Measures to support dissemination to
be examined in addition todigitalization on a company-bycompany basis include data lending,bridge financing services based onelectronically recorded receivables
for allocated subsidies, EDI-related
services, and promotion ofdigitalization by support
organizations.

64

FY2019supplementarybudgetprojects(firstdeadline).
Also, regarding subsidies
in which the application ofdigital tools is regarded as
positive factors to beconsidered at the time of
introduction,
theirapplication was incorporated
as a positive factor in the“subsidies for the sustainable
development of small-scalebusiness
operators”
inadditiontothe“Manufacturing,
Commercial and Service
Productivity Improvement
Promotion Subsidy.”
・ Regarding the method of
operatingthecreditguarantee system involving
data lending for transaction
data-based short-term andsmall-lot loans, the parties
involved in the systemreached certain conclusions
regarding the possibilitiesforsimplifying
theprocedure.
・ The number of financial
institutions that offer bridgefinancing services based onelectronicallyrecorded
receivables for allocatedsubsidies is scheduled to be
increased to 10 (with 51
other institutions studying
the collaboration). Also, thenumber of eligible subsidies
will be expanded.
・ The“Standards
forPromotion” under the Act onthePromotionofSubcontracting Small andMedium-sized Enterprises(Act No. 145 of 1970) wererevised in January 2020 to
improve the productivity ofsmall- and medium-sizedsubcontractors. The revisedlawencourages
subcontracting entrepreneurs

MinisterofEconomy,TradeandIndustry

Provisional Translation

Promotion ofmanagement
resource
succession

・In order to promote new businessdevelopment on the occasion ofbusiness succession, the existing
business succession subsidy will be
expanded and prioritized on second
start-ups and venture businesssuccession. In addition, measures toencourage management resourcetransfer type business startups andthird-party succession, etc. will bepromoted by radically expanding thebusiness succession support databaseand business successor humanresource banks.

Personal
guarantee

・The special provisions of the“Guidelines for Personal Guarantee
Provided by Business Owners,”
which ensure that financial
institutions would in principle notdemand overlapping guarantees fromboth the previous business owner andtheir successor, will be formulated
before the end of this year to preventa situation where personal guarantee
stands in the way of businesssuccession. A system will be put into
place where businesses can receive
professional advice for confirmation
65

to take the lead in
subcontractors’ initiatives topromotedigitalization
including the introduction ofelectronic ordering system
based on common EDI for
SMEs and electronic meansof settlement. Also, the“Supply Chain Efficiency
Improvement Type” wasnewly added to the Subsidy
for Manufacturing andService of SMEs to assist themeasuresforthe
introduction of EDI-related
services.
・ An IT platform named“Kokokara
App”
wasdeveloped as an IT tool that
supports
responses
tomanagement issues (some142 tools are listed as ofMarch 2020).
・ In September 2019, thebusiness succession support
database was made available
toprivatefinancial
institutions, which led to anincrease in the number ofregisteredprojects(approximately
4,400
projects were registered asof January 2020).
・ The “business successor
human resource banks” will
be expanded into 48
Business Succession Support
Centers across Japan by theend of FY2020.
・The special provisions of the“Guidelines for Personal
Guarantee Provided byBusiness Owners,” which
ensurethat
financial
institutions
would
in
principle
notdemandoverlapping guarantees fromboth the previous businessowner and their successor,
wereformulatedon
December 24, 2019.
・ Support operations byprofessionals
aimed
at

MinisterofEconomy,TradeandIndustry

Prime Minister(Minister
of
State
for
Financial
Services),
MinisterofFinance,
MinisterofEconomy,TradeandIndustry

Provisional Translation

Promotion of
appropriate andindustry-specificbusinessrelationships

and support so that SMEs, etc. canfulfill the requirements without
personal guarantee. Also, policies
will be promoted to establish newcredit guarantee menus that do not
require personal guarantee bybusiness owners at the time ofbusiness succession and to reduce thefee burden to as low as zero at a
maximum. In addition, the Shoko
Chukin Bank will no longer require
guarantees in principle while
government-affiliated financial
institutions and Credit Guarantee
Associations will strengthen theirmeasures. Further efforts will bemade through these measures toencourage private financial
institutions to extend loans without
personal guarantee.
・The cost reduction pressure bydominant subcontracting
entrepreneurs could be a reason why
SMEs serving as subcontractors find
it difficult to raise the level of theirwages and capital investment.
Consequently, issues related totransactions experienced by SMEs ineach individual industry will beidentified and competition
legislation, SME legislation, etc. will
be fully utilized to make fine-tuned
improvements. In this process,following an analysis of theconditions of profits and added value,labor and capital allocation byindustry, industry sector andcompany size, a survey on the statusof subcontractors will be conductedby investigators of subcontracting
relationship with a focus on
industries where the disparity
between the main subcontracting
entrepreneur and subcontractor isparticularly large.
These measures should encouragelarge firms and SMEs to share theirfair share of cost increases and big
companies to cooperate with SMEs
in implementing digital technologies,
thereby improving the productivity of
SMEs across the supply chain andadding values to the economy to66

eliminating
personal
guarantee requirements atthe time of businesssuccession starts in April
2020.
・New credit guarantee menus
that do not require personal
guaranteebybusinessowners at the time ofbusiness succession will beestablished and put into
operation in April 2020. The
credit burden will be reduced
to as low as zero at a
maximum when the case isconfirmed by professionals.
・ The Shoko Chukin Bank
removed the credit guarantee
requirement in principle in
January 2020.
・A meeting by the “Eminent
Persons Group on Value
Creation Businesses” washeld to identify the issues
such as the price passthrough by SMEs based on
an analysis, etc. by industry,
industry sector and company
size. An interim reportcompiled in February 2020
confirmed the direction thatfurther efforts should bemade to promote theoptimization of individualtransactions and the spreadof the co-existence, coprosperity model based oncollaboration
among
businesses and other means.
・ Also, in this fiscal year,
investigatorsofsubcontracting relationshipvisitedsome
4,566
companies (as of the end of
March 2020) and conductedinterviews.
・(Repeat) The “Standards for
Promotion” under the Act onthePromotionofSubcontracting Small andMedium-sized Enterprises(Act No. 145 of 1970) wererevised in January 2020 toPrime Minister(Minister
of
State
for
SpecialMissions of the
Cabinet Officein charge ofaffairs
concerning the
Fair
Trade
Commission,
Chairman of the
National Public
Security
Commission),
MinisterofInternal Affairs
andCommunications, Minister ofAgriculture,
Forestry
andFisheries,
MinisterofEconomy,TradeandIndustry,
MinisterofLand,
Infrastructure
and TransportProvisional Translationbuild a relationship based on
coexistence and co-prosperity.

improve the productivity ofsmall- and medium-sizedsubcontractors. The revisedlawencourages
subcontracting entrepreneurs
to take the lead in
subcontractors’ initiatives topromotedigitalization
including the introduction ofelectronic ordering system
based on common EDI for
SMEs and electronic meansof settlement. Also, the“Supply Chain Efficiency
Improvement Type” wasnewly added to the Subsidy
for Manufacturing andService of SMEs to assist themeasuresforthe
introduction of EDI-related
services.

67

Provisional Translation
7.

Realization of reform across the entire agriculture, forestry andfishery industries and realization of smart industries(1) Major progress of KPI《KPI》In the agricultural sector, almost all the business farmers will be engaged
in data-based agriculture by 2025 [143]*Progress will be ascertained based on the Census of Agriculture and Forestry, etc.
《KPI》Increase the export value of agricultural, forestry, and fisheries products
and foods to one trillion yen in 2019 (2012: 449.7 billion yen) [136]⇒2019: 912.1 billion yen《KPI》Double the added value of forestry and wood industries derived fromprivately owned planted forest by 2028 (2015: 250 billion yen) [145]⇒2018: 320 billion yen(2) Major progress of measures
Item of Measures
Acceleration ofagriculturalreformPromotion ofexportContents of Measures andStatus of Progress andMinister in
Implementation Period
Implementation
Charge・In order to develop an environment
・Comprehensive measures to Ministeroffor the steady and full-scale fielddevelop the environment for Agriculture,
implementation of smart agriculture
thefull-scale
field Forestry
andby FY2022, comprehensive measures
implementation of smart Fisheries
for research and development,
agriculture were adopted.
demonstration and dissemination, andThey include the research
environmental development will beanddevelopmentof
promoted. They include theharvesting
robotsfordevelopment of smart agriculture
vegetables and fruit trees, thetechnologies that can be introduced indemonstration
andvarious fields and a consultation
disseminationofansystem on smart agriculture for
integrated system fromfarmers in accordance with “theproduction to shipment in 69
Program for Promotion of New
districts across the country,
Farming Technology Implementationand the formulation of the(approved by the Headquarters on"Guideon
Preparing
Creation of Regional Vitality inFarmland for Autonomous
Agriculture, Forestry, and Fisheries
Farming Machines."
on June 7, 2019).”
・In response to overseas food safety
・ Following an examination Ministerof
regulations, etc., domestic responses
aimed at strengthening the Agriculture,
will be examined and strengthened tosystem for overseas food Forestry
andexpedite the certification of facilities
safety regulations, a draft Fisheries
compliant with the standards in thelaw on the promotion ofdestination countries. The
exportofagricultural,
introduction of legislation and otherforestryandfisheries
steps will be examined to strengthen
products and foodstuffs was
the domestic system and enable thesubmitted to the 200th
government to adopt an integrated
session of the Diet session,
approach in negotiations aimed at
and was enacted on
removing and relaxing regulations.
November 20, 2019 (enacted
68

Provisional Translation

Forestry industry
reform・A review of forest owners’
cooperative associations will be
conducted for the purpose ofdiversifying collaboration methods
between cooperatives to raise thescale of lumber mills and address
other issues.

69

on April 1, 2020). The law
providesfortheestablishment
ofthe“Agricultural, Forestry and
Fishery
Products
andFoodstuff Export Division,”headed by the Minister ofAgriculture, Forestry and
Fisheries, formulation ofbasic
policiesforconsultations with export
destination countries andcreation of an environment
forexportfacilitation,measures to facilitate exports
such as the issuance ofexportcertificatesandcertification of facilities, andsupportforbusiness
operators engaged in export.
・In order to contribute to the
expansion of exports, and torespond to the needs forraising the scale of lumber
mills,
forestowners’cooperative
associations
examined ways to strengthen
the marketing system andsubmitted a bill to the 201st
session of the Diet as part of
the Forest Cooperative Act.
The bill provides for thediversificationofcollaboration
methods
betweencooperatives
through the introduction ofbusiness transfers, divisionmergers and independent
mergers.

Ministerof
Agriculture,
Forestry
andFisheries

Provisional Translation
3. Implementation of KPI review
The “Action Plan” contains 157 KPIs, which are classified into three categories, A, B, and N, based on the
progress of the respective KPI. KPIs that have progressed toward target achievement at a pace that exceeds the ratioof the transitional period to the period of target achievement period rate are categorized as A, while those that havenot progressed as quickly as A are defined as B, and those that are difficult to evaluate at this point because data
will not become available until the future (evaluation will be conducted as soon as data become available) are
included in the N category. As for the current progress of the 157 KPIs, 63 are placed in category A, 74 in category
B, and 20 in category N (see Appendix). Based on their progress, the "Innovative Business Activity Action Plan in
Fiscal Year 2019" (approved by the Cabinet on July 17, 2020) will be revised to strengthen measures to improve
productivity in a short period of time through innovative business activities.

70