PROVISIONAL
Outline of the Action Plan to Implement the Growth Strategy
October 1, 2013
Decision of the Headquarters for Japan’s Economic Revitalization
In order to ensure that people’s expectations for the end of deflation and a positive movetowards economic recovery, triggered by the first and second policy arrows of Abenomics,
will lead to a stable growth path, the government of Japan will endeavor to encourage businessowners and the public to transform their expectations into actual actions, thereby creating evenmore positive expectations towards the future of Japan’s economy and facilitating stronger
corporate capital investment and steady consumption.
For this purpose, the government will accelerate and strengthen the Japan Revitalization
Strategy (Cabinet decision on June 14, 2013), the third arrow of Abenomics, launched tochange people’s expectations into actions. Through the discussions held after the formulationof strategy, details and directions of the structural reforms regarding the following major
related measures, such as the submission of bills at the next extraordinary Diet session, havebeen embodied or these measures have been decided to be implemented ahead of schedule.
The government will firstly press on with these measures in an integrated manner.
[Related Bills to be Submitted to the Next Extraordinary Diet Session]Bills for the Industrial Competitiveness Enhancement Act, related Acts on National
Strategic Special Zones, the Act to Revise the Companies Act, the Act to Revise thePharmaceutical Affairs Act, etc., the Act to Ensure the Safety of Regenerative Medicine,etc., the Act to Revise the Electricity Business Act, related Acts for the Development ofFarmland Intermediary Management Institutions (provisional title), and the Act for thePromotion of Renewable Energy in Rural Areas
1. Infrastructure Development for Regulatory and Institutional Reforms
In order to force through regulatory and institutional reform in fields where private-sector
power has not been exercised sufficiently, the government will submit bills for related Acts on
National Strategic Special Zones and the Industrial Competitiveness Enhancement Act at thenext extraordinary Diet session, and will endeavor to develop an institutional structure topromote structural reforms with the three-area approach: on a region-wide basis, on a
corporation basis, and on a nation-wide basis.
1PROVISIONAL○ Regulatory and institutional reforms on a region-wide basis through the creation ofNational Strategic Special Zones
・ From the perspectives of creating competitive international cities with comfortable livingenvironments, and of developing international innovation hubs in medicine and otherfields, as a breakthrough to force through bold regulatory and institutional reforms todrastically change Japan’s economic society, the government will materialize the conceptof National Strategic Special Zones by combining and implementing exceptional
measures, with the goal of creating the most business-friendly environment in the world toignite the growth of Japan.
Specifically, the matters as follows will be discussed and materialized: the review ofregulations on land use, such as floor-area ratios and usage; opening of the operation of
public schools to the private sector; approval of new construction and increase of beds ininternational medical centers through exceptional measures on regulations on the numberof beds; facilitating the combination use of both services covered by public healthinsurance and advanced healthcare services not covered by the insurance; exclusion oftraditional buildings used as lodging facilities from application of the Inns and Hotels Act;
special measures to enhance competitiveness of agriculture. Through such deliberations,the government will take necessary measures, such as the submission of bills relevant to
National Strategic Special Zones at the next extraordinary Diet session.
○ Regulatory reform on a corporation basis through the establishment of the Special
System for Corporate Field Tests (popular name)
・ The Special System for Corporate Field Tests (popular name) will be established tosupport business operators’ business expansion to new fields by offering special regulatory
measures on a corporation basis with the premise that alternative measures to ensure safety
are taken (in relation to a bill for the Industrial Competitiveness Enhancement Act).
○ Confirmation of new business legality through the establishment of the System toEliminate Regulatory Gray Zones (popular name)
・ The System to Eliminate Regulatory Gray Zones (popular name) will be established toenable business operators to check legality of new business in advance based on a businessplan, so that they can expand their business at ease even in new fields where the coverageof existing regulations is unclear (in relation to a bill for the Industrial CompetitivenessEnhancement Act).

2PROVISIONAL○ Regulatory and institutional reform on a nationwide basis through collaboration
between the Council for Industrial Competitiveness and the Council for Regulatory
Reform・ Taking into consideration the effects of special schemes to be newly established, and inline with the purport of the Japan Revitalization Strategy, the Council for Industrial
Competitiveness and the Council for Regulatory Reform will collaborate with each otherto discuss means to further regulatory and institutional reform and accelerate structuralreforms, especially in the fields of employment (building of a personnel managementsystem to promote flexible and diversified working styles, etc.), medical care and nursing
care (establishment of a system to efficiently provide high quality services, etc.), andagriculture (measures to facilitate entry of corporations, etc.).
2. Promotion of Private Investment and Industrial Metabolism
In order to encourage companies to invest their management resources for the future(private investment of 70 trillion yen over the next three years), the government will endeavor
to develop a favorable business environment mainly by way of making bills for the Industrial
Competitiveness Enhancement Act and the Act to Revise the Companies Act, while generally
mobilizing all other measures, including tax incentives, budgetary measures, financial
assistance and institutional reform.
○ Tax incentives for stimulating private investment
・The government will carry out tax incentives based on “the Outline of the Tax Revision for
Stimulating Private Investment” (Liberal Democratic Party and New Komeito decision on
October 1, 2013) with the aim of increasing private investment.
－Creation of a new tax incentive (immediate depreciation and tax credit) to promote
capital investment that may lead to the enhancement of productivity through acquisitionof cutting-edge equipment; expansion of a tax incentive favorable to SMEs to promote
their investment; and expansion of a tax incentive on research and development topromote companies’ R&D investment－Creation of a new tax incentive (reserve for loss) to promote strategic and drastic
business reorganization for significantly enhancing profitability and of a new tax
incentive (reserve for loss) to promote companies’ investment in venture funds－Creation of a new tax incentive to promote quake-resistant work as a tax system
responding to the development of an institutional and regulatory environment to3

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increase capital investment; and offering of support for the promotion of energy-saving
renovation and climate change countermeasures, as well as for the dissemination of
CFC-free products, substantially through the aforementioned tax incentive to promote
capital investment that may lead to the enhancement of productivity.
○ Support utilizing the method of operating lease transactions
・With regard to cutting-edge equipments, such as advanced medical equipment and 3D
printers, which require high initial cost with uncertainty as to when they can actually be put
to use, the government will promote support utilizing the method of operating leasetransactions (in relation to a bill for the Industrial Competitiveness Enhancement Act).
○ Strengthening of corporate governance・The government will submit a bill for the Act to Revise the Companies Act at the next
extraordinary Diet session, which aims to promote the introduction of highly independent
outside board members, with the goal of ensuring at least one outside board member foreach company.
○Reviewing the portfolio and governance of public and quasi-public funds
・In view of Japan’s departure from deflation, the government will hold discussions on thepromotion of portfolio diversification, including diversification of the types of assets toinvest in, and strengthening of governance such as risk management structure, bearing in
mind the sizes and characteristics of the respective funds. The results of the discussions will
be compiled by the end of November 2013.
○ Vitalization of financial and capital markets
・The government will compile, by the end of this year, measures to enhance the attractivenessof Japanese financial and capital markets such as measures to divert individuals’ financial
assets as financing for growth, and measures to realize and take in the potentialities of Asianeconomies.

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3. Employment System Reform and Enhancement of Human Capital
The government will accelerate initiatives for enhancing human capital and reforming theemployment system, by speeding up the utilization of private-sector human resource
businesses and implementing “the zero child-care waiting list project”, and will also endeavor
to compile a national university reform plan around the end of October 2013 to reform thepayroll system and other systems for national universities.
○ Speeding up of the utilization of private-sector human resource businesses
・While reviewing means to publicize information on job offers and applications held by
public job-placement offices (Hello Work), the government will review the requirements
for the eligibility for the Trial Employment Incentive Pays within this year, in order to moveup the schedule for the utilization of private-sector human resource businesses and theexpansion of the coverage of the aforementioned grants targeting those hiring NEETs(young people Not in Education, Employment or Training) and part-time jobbers.
○ Countermeasures against the falling birth rate and development of an environment
where both men and women can balance work and child-rearing, etc.
・While ensuring necessary funds, the government will swiftly implement “the zero child-care
waiting list project”. Furthermore, discussions will be held at the Labour Policy Council andother meetings, with regard to the improvement of financial assistance during childcare
leave and the extension of the Act on Advancement of Measures to Support Raising
Next-Generation Children, with the aim of submitting bills for revising the Employment
Insurance Act and the Act on Advancement of Measures to Support Raising
Next-Generation Children at the next ordinary Diet session.
○ Promotion of the utilization of Highly Skilled Foreign Professionals
・The government will advance an institutional reform to commence the new Points-based
Preferential Immigration Treatment for Highly Skilled Foreign Professionals within thisyear and will submit a bill for revising the Immigration Control and Refugee Recognition
Act at the next ordinary Diet session, to take measures required for shortening the periods ofstay for permitting permanent residence for Highly Skilled Foreign Professionals.
○ Strengthening of functions of universities to create innovations and promotion ofuniversity reform・In order to strengthen the functions of national universities to create innovations, the5

PROVISIONAL
government will take measures to allow national universities to invest in funds, such as
those that support university-launched ventures, ahead of schedule (in relation to a bill for
the Industrial Competitiveness Enhancement Act).
・The government will immediately commence reform of the payroll system for the purposeof enhancing the education and research functions and will establish a national university
reform plan by around the end of October 2013 with the goal of completing the reform byfiscal 2015.
4. Creation of Strategic Markets through Structural Reforms, etc.
While opening up markets that have been dominated by the public sector through the use of
PPP and PFI and regulatory and institutional reforms, the government will create new strategic
markets in such fields as healthcare and medicine, energy and agriculture that will boost
Japan’s economic growth, by attracting funds, technologies, and know-how from the private
sector.
○ Promotion of the development and management of social infrastructure by utilizing
private funds, etc. (PPP/PFI)・In order to promote the introduction of private funds and foster the infrastructure investment
market at an early stage, the Private Finance Initiative Promotion Organization(Public-Private Infrastructure Fund), will be established in early October 2013.
・The government will decide the basic policy on the introduction of the concession system tonational airports, etc. by the end of November 2013. Furthermore, the government will start
discussions specifically in October 2013 for further enhancing the functions of Haneda
Airport and Narita Airport after their achieving the total annual capacity of 0.75 million
flights.
・In order to make progress in the renewal of the Metropolitan Expressways in tandem withthe urban redevelopment, discussions will be commenced ahead of schedule concerning theTsukijigawa River section and other sections as model cases to compile institutional
problems and countermeasures within this year.
○ Creation of Cross-ministerial Strategic Innovation Promotion Program and Impulsing
PAradigm Change through disruptive Technologies
・Discussions will be held for the creation of Cross-ministerial Strategic Innovation Promotion
Program and Impulsing PAradigm Change through disruptive Technologies that enables
flexible operation under a program manager, and the government, on the basis of the results
6PROVISIONAL
thereof, will take necessary measures, including the submission of a bill for revising the Act
for Establishment of the Cabinet Office at the next ordinary Cabinet session.
○ Reform of healthcare and medical markets
・With the aim of accelerating the development of medical products and equipment and thecommercialization of regenerative medicine, the government will endeavor to enact bills for
the Act to Revise the Pharmaceutical Affairs Act, etc. and the Act to Ensure the Safety ofRegenerative Medicine, etc. at the next extraordinary Diet session.
・In order to establish an incorporated administrative agency (Japan Medical Research andDevelopment Agency (provisional)) as a new governmental institution managing
research and development in the medical field, the government will submit necessary billsat the next ordinary Diet session.
・The government, noting intensifying international competition, will speed up initiatives forregulatory and institutional reform, research and development, and support for companies’
overseas development.
○ Strengthening of competitiveness in agriculture through consolidation of farmland andproduction rationalization
・In order to develop Farmland Intermediary Management Institutions (provisional title) thatwill facilitate consolidation and aggregation of farmland to motivated entities (corporations,large-scale family farmers, companies, newcomers, etc.), the government will submit
related bills at the next extraordinary Diet session.
○Pushing through the Electricity System Reform and promotion of the introduction ofrenewable energy
・For the purpose of proceeding Electricity System Reform to realize full liberalization of entry
to electricity retail business and legal unbundling of the transmission and distribution sectors,
the government will submit a bill to amend the Electricity Business Act at the next
extraordinary Diet session.
・In order to revitalize rural areas by promoting power generation harnessing renewable energy
in a way harmonious with sound development of the agriculture, forestry and fisheries
industry, the government will submit a bill for a new Act, the Act on the Promotion ofRenewable Energy in Rural Areas at the next extraordinary Diet session.

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PROVISIONAL○ Promotion of the initiative for improving service life of infrastructure
・The government will compile a basic plan for extending service life of infrastructure (basicpolicies) by the end of November 2013 and clarify goals and a roadmap for enhancing
safety and reducing lifecycle costs.
5. Implementation of Growth Strategy at Region Level and Innovation of SMEs and small
businesses
The government will implement the growth strategy by the united efforts of the central
government and local governments so that the effects of the Japan Revitalization Strategy will
spread to local economies as well as SMEs and small businesses, and will lead to an economic
recovery in Japan as a whole. At the same time, the government will promote innovation ofSMEs and small businesses.
○Implementation of growth strategy at regional level
・The Council on Regional Industrial Competitiveness will be set up sequentially in eachregion in around October 2013 to promote full-scale local efforts involving the industry,academia, the public sector, financial institutions, and others, by the united efforts of thecentral government and local governments to reflect opinions of local communities in theimplementation of the Japan Revitalization Strategy.
○ Promotion of business startups, etc. in local areas
・The government will support municipal initiatives to build a support system in collaboration
with private start-up support businesses, with the aim of promoting business startups inlocal areas and of strengthening support for recovery of SMEs and small businesses (inrelation to a bill for the Industrial Competitiveness Enhancement Act).
○ Development of a framework for the promotion of small businesses
・In order to provide effective support to small businesses, which have been serving as a basisof Japan’s manufacturing and other industries, the government will submit a basic bill forthe promotion of small businesses at the next ordinary Diet session.

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