Follow-up on the Growth Strategy

June 21, 2019

Provisional Translation
I. Realization of Society 5.0• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 1
1. Development of Rules for the Digital Market• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 1(1) Major progress of KPI(2) New specific measures to be takenⅰ) Definition of rules for the digital market(ⅰ) Response to digital platform companies(ⅱ) Regulatory review of the digital ageⅱ) Promotion of data distribution(ⅰ) Establishment of a fundamental approach in data distribution(ⅱ) Development of the distribution and utilization environment(ⅲ) Ensuring of cybersecurity
2. Fintech/Finance• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •12(1) Major progress of KPI(2) New specific measures to be takenⅰ) Review of the legal systems based on the advancement of innovationⅱ) Accelerating initiatives to realize a cashless societyⅲ) Promotion of innovations such as commercialization of FinTechⅳ) Infrastructure development for finance and commercial distribution collaboration
3. Mobility• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 15(1) Major progress of KPI(2) New specific measures to be takenⅰ) Promotion of the Japanese version of Mobility-as-a-Service (MaaS)ⅱ) Acceleration of efforts for the social implementation of automated drivingⅲ) Promotion of various mobility on land, sea, and air, and logistics reform(ⅰ) Construction of the next generation air mobility system(ⅱ) Promotion of various land mobility and logistics reform(ⅲ) Development of a new maritime systemⅳ) Realization of safe and secure road traffic based on the recent traffic accidents
4. Corporate Governance• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •25(1) Major progress of KPI(2) New specific measures to be takenⅰ) Corporate governance reformⅱ) Improving the quality of information disclosure and the quality of accounting and audit forProvisional Translation
constructive dialoguesⅲ) Promotion of smooth financing through the realization of vibrant financial and capital
markets
5. Smart Public Services• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •30(1) Major progress of KPI(2) New specific measures to be takenⅰ) Procedure automation by individuals and corporations(ⅰ) Procedure automation by individuals(ⅱ) Realization of one-stop service for corporation(ⅲ) Digitization and automation of tax and social insurance procedures(ⅳ) Strengthening of the centralized project management of information system related
budget(ⅴ) Promotion of the spread and use of my number cardⅱ) Promotion of digital transformation (DX) at administrative bodies(ⅰ) Realization of digital first(ⅱ) Further utilization of advanced technology at governmental organizations and agencies(ⅲ) Further utilization of advanced technology at local governmental organizations andagenciesⅲ) Realization of the world’s best country for companies to engage in their business(ⅰ) Promotion of applying IT to court proceedings, etc.
(ⅱ) Improvement of trade procedures and port logistics(ⅲ) Digitization of real estate related information and services(ⅳ) Development of a legal framework of movable collateral and registration system
6. Next Generation Infrastructure• • • • • • • • • • • • • • • • • • • • • • • • • • •• • • • • •• • • • • 42(1) Major progress of KPI(2) New specific measures to be takenⅰ) Improvement of productivity in the infrastructure field, and resolving of issues related todisaster prevention, transportation, logistics and cities(ⅰ) Development and maintenance of infrastructure(ⅱ) Disaster prevention and disaster response(ⅲ) Resolving transportation issues(ⅳ) Resolving logistics issues(ⅴ) Enhancing the competitiveness of citiesⅱ) Accelerating the introduction of PPP/PFI approaches

Provisional Translation(ⅰ) Promotion of efforts in the PPP/PFI priority areas(ⅱ) Promotion of the spread of results-based private-sector consignment contract format
7. Aiming for realization of a carbon-free society• • • • • • • • • • • • • • • • • • • • • • • • • • • • •51(1) Major progress of KPI(2) New specific measures to be takenⅰ) Promotion of innovationⅱ) Promotion of green financeⅲ) Business-led global expansion and international cooperationⅳ) Efforts in the energy fieldⅴ) Efforts in the industry and transportation fieldsⅵ) Efforts in regions, life areas, and other environmental protection(ⅰ) Creation of regional circulation, symbiotic area, and lifestyle conversion(ⅱ) Material circulation in regions, etc.
(ⅲ) Promotion of “The Fukushima Plan for a New Energy Society”(ⅳ) Promotion of adaptation to climate change
8. Construction of Innovation Ecosystem for Realizing Society• • • • • • • • • • • • • • • • • • 59(1) Major progress of KPI(2) New specific measures to be takenⅰ) Construction of an autonomous innovation ecosystem(ⅰ) Promotion of open innovation through the cooperation among industry, academia, andgovernment(ⅱ) Higher education and research reform(ⅲ) Intellectual property and standardization strategyⅱ) Next generation industrial system(ⅰ) Promotion of data linkage in the supply chain(ⅱ) Social implementation of robotic technology.
(ⅲ) Expansion of the space business(ⅳ) Expansion of the aircraft industry
9. Human Resources Development for the Society 5.0 era • • • • • • • • • • • • • • • • • • • • 70(1) Major progress of KPI(2) New specific measures to be takenⅰ) Human resources development at universities, etc.
ⅱ) Human resources development at the primary and secondary education stages

Provisional Translationⅲ) Human resources development and utilization in the industrial world
10. Taking in Overseas Growing Markets• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 74(1) Major progress of KPI(2) New specific measures to be takenⅰ) Global expansion of Society 5.0 and achieving SDGs(ⅰ) Support for implementation by private companies(ⅱ) Accelerating STI for SDGs(ⅲ) International standardization of Society 5.0ⅱ) Supporting overseas business expansion of Japanese companyies(ⅰ) Expansion of exporting infrastructure systems(ⅱ) Establishment of a rule-based, free and fair economic order(ⅲ) Support of the overseas business expansion of medium-sized enterprise and SMEsⅲ) Measures to make use of Japan’s charm(ⅰ) Promotion of inward direct investment(ⅱ) Cool Japan(ⅲ) Preparation for the the 2025 World Exposition
11. Promotion of active participation by highly-skilled foreign professionals• •• • • • 82(1) Major progress of KPI(2) New specific measures to be takenⅰ) Promotion of accepting highly-skilled foreign professionals(ⅰ) Cross-governmental efforts for promoting the employment of foreign students andothers in Japan(ⅱ) Improvement of Japanese language education programs for business purposes andenhancement of the quality of Japanese language education(ⅲ) Improvement of the immigration and residency management systems, etc. to facilitate
the acceptance of highly-skilled foreign professionalsⅱ) Strengthening of residency management foundation for the facilitation and acceleration of
the procedure for resident status(ⅰ) Facilitation and acceleration of the procedure for resident status(ⅱ) Strengthening of residency management foundation
II. Reforms to Social Security Systems for All Generations• • • • • • • • • • • • • • • • • • • • • 85
1. Securing employment opportunities up to the age of 70• • • • • • • • • • • • • • • • • • • • • • 85(1) Major progress of KPIProvisional Translation(2) New specific measures to be takenⅰ) Securing employment opportunities up to the age of 70ⅱ) Review of the pension system due to the diversification of work style and the prolonged
elderly period and employment expansion
2. Promotion of mid-career hiring and hiring of people with experience• • • • • • • • • • • • •88(1) Major progress of KPI(2) New specific measures to be takenⅰ) Promotion of mid-career hiring and hiring of people with experience, etc.
ⅱ) Infrastructure development to support proactive career formation
3. Expansion of diverse and flexible work style• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 90(1) Major progress of KPI(2) New specific measures to be takenⅰ) Expansion of diverse and flexible work style(ⅰ) Promotion of side jobs and multiple jobs(ⅱ) Development of an environment for the work style not depending on employment
relationship (e.g. freelance).
(ⅲ) Promotion of telework(ⅳ) Support for the balance between treatment and workⅱ) Support for realizing the work style that enables the maximum productivity(ⅰ) Improvement of the work environment by correcting long working hours and otherconditions(ⅱ) Promotion of the “visualization” of human resources investment information(ⅲ) Raising the minimum wageⅲ) Further expansion of women’s active participation and promotion of diversity management
4. Prevention of Disease and Nursing Care • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •95(1) Major progress of KPI(2) New specific measures to be takenⅰ) Promotion of health with anticipation of the 100-year life(ⅰ) Drastic reinforcement of incentive measures for disease prevention and health promotion(ⅱ) Strengthening of efforts leading to individual’s behavioral change aiming for prevention
and health promotion(ⅲ) Strengthening of initiatives for the early detection of diseases( ⅳ ) Promotion of health development, health management, and health investment of

Provisional Translation
incorporated insurers and companies(ⅴ) Verification of effects for prevention and health promotion utilizing data etc., andpromotion of private prevention and health services(ⅵ) Drastic reinforcement of incentive measures for nursing care prevention, etc.
(ⅶ) Strengthening of comprehensive measures for dementia
5. Next-Generation Health Care• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 100(1) Major progress of KPI(2) New specific measures to be takenⅰ) Ensuring effective and efficient medical and welfare services utilizing technical innovation,etc.
(ⅰ) Promotion of the utilization of data that serves as a basis to provide health, medical andnursing care services(ⅱ) Promotion of technology utilization at medical and nursing care sites involving ICT,
robots, and AI(ⅲ) Organizational reform of medical and nursing care sites, and larger scale managementwith more collaborationⅱ) Development, operationalization, and global expansion of superior pharmaceuticals andmedical equipment from Japan(ⅰ) Development and operationalization of superior pharmaceuticals and medical equipmentfrom Japan(ⅱ) Global expansion, etc.
III. Reinforcement of Regional Measures under Population Decline • • • • • • • • • • • • • • 109
1. Maintenance of Community Infrastructure and Competition Policy• • • • • • • • • • • • 109(1) Major progress of KPI(2) New specific measures to be taken(ⅰ) Bus services (and local public transportation competing with bus services)(ⅱ) Regional banks(ⅲ) Limitations on the scope of exception(ⅳ) Other
2. Supplying Human Resources to Regions• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 113(1) Major progress of KPI(2) New specific measures to be taken

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3. Revitalization of Communities with Rapidly Declining Populations• • • • • • • • • • • • • 114(1) Major progress of KPI(2) New specific measures to be taken
4. National Strategic Special Zones• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •115
(1) Major progress of KPI(2) New specific measures to be takenⅰ) Early realization of the “Super City” initiativeⅱ) Addition of further regulatory reform matters(ⅰ) Implementation of the remote medication guidance system in urban areas(ⅱ) Horizontal rolling out of the remote medication guidance system by designating virtual
special zones in depopulated areas, etc.
(ⅲ) Consideration for the review of online consultation requirements(ⅳ) Early realization of lifting the ban on wage payment using digital money (payment tofund transfer business operators)(ⅴ) Establishment of the region-based sandbox system(ⅵ) Review of personal mobility related regulations(ⅶ) Relaxation of manufacturing permission for large unmanned aerial vehicles (drones)(ⅷ) Speeding up of the procedure to issue permit for drug transfer in joint research anddevelopment of new drugs(ⅸ) Relaxation of requirements for clinical practice provision for foreign doctors to
conduct clinical trials(ⅹ) Addition of investment business within the scope of business of incorporated
administrative agencies (experiment and research institution type)(ⅺ) Promotion of the employment of foreign students in the area of cool Japan(ⅻ) Expansion of the start-up visa system to promote the acceptance of foreign
entrepreneurs(xiii) Relaxation of employment requirements for foreign diving instructors(xiv) Handling of the special measures for establishing home-visit rehabilitation offices by
non-medical institutions
5. Utilization of a “sandbox system”• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 120(1) Major progress of KPI(2) New specific measures to be taken
6. Increase Productivity of SMEs and micro businesses• • • • • • • • • • • • • • • • • • • • • • • 122

Provisional Translation(1) Major progress of KPI(2) New specific measures to be takenⅰ) Support for digital implementation of SMEs and micro businesses(ⅰ) Support for introducing universal IT(ⅱ) Disseminate and expand practical digital servicesⅱ) Promotion of business metabolismⅲ) Promotion of overseas expansion and fair transactionⅳ) Strengthening of function of assistance agency for SMEsⅴ) Support for regional core companies
7. Realization of reform across the entire agriculture, forestry and fishery industries• •129(1) Major progress of KPI(2) New specific measures to be takenⅰ) Acceleration of agricultural reform(ⅰ) Enhancement of production sites(ⅱ) Promotion of the reform in the value chain(ⅲ) Promotion of smart agricultureⅱ) Promotion of exportⅲ) Forestry industry reform(ⅰ) Accumulation and expansion of row wood production(ⅱ) Promotion of the smart forestry industry (forestry innovation)(ⅲ) Promotion of the use of woodⅳ) Fishery industry reform(ⅰ) Promotion of the fishery policy reform(ⅱ) Promotion of the smart fishery industry
8. Tourism, Sports, and Culture and the Arts• • • • • • • • • • • • • • • • • • • • • • • • • • • • • 138(1) Major progress of KPI(2) New specific measures to be takenⅰ) Realization of a tourism-based country(ⅰ) Development of environment where international visitors
can truly enjoy sightseeing(ⅱ) Development of new regional sightseeing contents(ⅲ) Appropriate division of roles and strengthening of cooperation between the Japan
National Tourism Organization and regions (local governments and DMO)

Provisional Translation(ⅳ) Other major measures contributing to attracting visitors to regions and increasing
consumptionⅱ) Future development of the sports industry(ⅰ) Forming the foundation to make sports into a growth industry(ⅱ) Regional vitalization withsportsⅲ) Economic vitalization through culture and arts.
(ⅰ) Creating a virtuous cycle through arts and culture based on the 'Basic Plan on the
Promotion of Culture and the Arts' and the 'Strategic Plan on Culture and Economy'(ⅱ) Regional vitalization centered on cultural and artistic resources

I. Realization of Society 5.0
1. Development of Rules for the Digital Market(1) Major progress of KPI[KPI] Create 20 unlisted venture companies (unicorn) or listed venture companies
with more than $1 billion in corporate value or market capitalization by 2023.
[Reference value]• Unlisted venture companies: 2 (JAPAN STARTUP FINANCE REPORT 2018) (asof February 2019)• Listed venture companies: 5 (data by Cabinet Office) (as of April 2019)[KPI] (New) Launch 5G services in all prefectures by the end of FY2020.
[KPI] Create 30 projects for cross-industrial/operators data sharing by FY 2020.
⇒ 25 cases (March 2019)(2) New specific measures to be takeni) Development of rules for the digital market
The data, which is also referred to as new petroleum on the Internet or a new currency
in the digital world, is attracting attention. Digital platform companies utilize this in a
sophisticated way to provide beneficial services and access to global markets to users andservice providers, and has become indispensable in the digital era.
Meanwhile, digital platform companies have the characteristics to progress inmonopolization or oligopolization. Therefore, it is required to promote fair and freecompetitions for securing transparency and fairness in the transaction environment. Efforts
for development of the transaction environment related to digital platform companies isbeing advanced internationally. Japan intends to show its standpoint as soon as possible towork on the development of rules for the digital market, while also providing support for
the growth of next generation digital platform companies as the driving force for thecountry. In doing so, it is important to promote the revision of outdated existing rules andregulations to make them more rational to suite the digital era.
(i) Response to digital platform companies• The government plans to establish an expert organization on domestic and overseas data
and digital markets (Digital Market Competition Headquarters (provisional name))comprised of experts with diverse and high-level knowledge across ministries and agencies
in order to conduct evaluations of market competition in the global and radically changing
digital market. This organization will be given authority to promote innovation throughresponses to a variety of issues related to certain data usage, including data portability and
API disclosure, authority to obtain survey results and other reports based on the Act on

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Provisional Translation
Prohibition of Private Monopolization and Maintenance of Fair Trade (Antimonopoly Act),and other related laws and regulations from the standpoint of overviewing and assessing
the digital market where global digital platform companies compete and promotecompetition and innovation, authority to plan and handle overall coordination of
fundamental policies on the digital market, and authority to cooperate and collaborate withcompetition authorities of other countries.
Specific tasks include (a) assessing the competition situation in digital markets, (b)preparing rules for a variety of platform businesses, and conducting surveys and making
recommendations on issues related to the Antimonopoly Act, protection of personal
information, and other matters, (c) Issuing recommendation on stimulation of the digitalmarket, including SMEs and venture companies, and (d) participating in rule formation
related to competition assessment in the digital market handled by the G7, G20, and otherinternational frameworks.
The expert organization will bring together specialists from law, economics, informationengineering, systems theory, and other fields. The secretariat will broadly recruit
knowledgeable administrative officials from the Japan Fair Trade Commission General
Secretariat, the Ministry of Economy, Trade and Industry, the Ministry of International
Affairs and Communications, and other ministries in charge of digital-related policies.
The Digital Market Competition Headquarters (provisional name) will build a strategic
framework for a data-driven society through close collaboration with the IT Strategic
Headquarters, the Cybersecurity Strategic Headquarters, and various ministries andagencies.
• In light of the possibility of data accumulation in the digital market posing a threat ofhindering competition, even if a company’s sales only hold a small share of the market, thegovernment will review the ideas of business combination assessment related to assessment
points, considering data accumulation in the digital market, revise the said assessment
criteria within FY2019, and consider the ideal form of notification criteria based on sales
within FY 2019 in order to prevent competitive inhibition caused by data accumulation bycorporate acquisition.
• Digital platform companies dramatically improve potential access to global and othermarkets for SMEs, venture companies, and freelancers (Gig Economy). However,transactions between digital platform companies and users also face potential problems,such as: (a) one-sided application of contract terms and rules, (b) service additions andsuccess cost burden, and (c) excessive restrictions on access to data.
The government hence needs to prepare legislation and guidelines to ensure transparency
and fairness of transaction practices and other unique relationships formed in the digitalmarket, and aims to submit a bill to the National Diet’s 2020 Ordinary Session (Act on

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Improving Transparency of Digital Platformer Transactions (provisional name)).
Meanwhile, review will be given in preparing rules that respect autonomy with a “comply
or explain” approach (comply or explain the reasons for not complying), initially for the
purpose of avoiding interference with digital innovation for the Fourth Industrial
Revolution.
Specifically, items to be considered will be clarification and disclosure of contract terms
and transaction rejection reasons, clarification of rankings (order of presentation for productsearch results), disclosure in cases of digital platform companies giving preference to theirown products and services, disclosure of requests for most-favored-treatment clauses (suchas clauses requesting the best terms among business partners), and an obligation to arrange
a complaint processing system.
• Regarding the Act on the Protection of Personal Information, the government aims to takepreventative measures of inappropriate use of personal information, including the adoptionof a framework that lets individuals request companies and others to stop the usage of theirdata, and measures of applying no discrimination policy to domestic and foreign companies,
while considering to adjust the framework to promote more utilization of anonymized
information not sufficiently employed up to now and submitting a revisions bill to the
National Diet’s 2020 Ordinary Session.
• Issues for realizing data portability with which users and user companies can transfer
themselves from digital platform companies anytime and API disclosure that can beconnected openly will be addressed within FY 2019. In addition, with respect to individual
fields such as medicine, finance, and cloud, the government will also advance considerationby the addressing the above issues, while paying careful attention to issues unique to eachfield.
• The government will address the approach for applying the regulation on abusing thedominant bargaining position of the Act on Prohibition of Private Monopolization and
Maintenance of Fair Trade (Antimonopoly Act) to business-to-consumer transactions bydigital platform companies before the summer of 2019 and develop an enforceable system.
• Along with this, the development and enhancement of the structure of the Japan Fair Trade
Commission and its infrastructure improvement will be addressed to appropriately respondto the age of digital capitalism, enhance international cooperation, and realize a fair andtransparent competition environment.
• Furthermore, from the viewpoint of ensuring the transparency and fairness in the relationshipbetween digital platform companies and consumers, the government will start considering
ways to address applying laws and regulations related to consumer protection, ensure thetransparency and fairness of the terms of use, and determine the state of disciplines related
to eternal application to overseas operators and other consumer protection within FY2019,3

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taking necessary measures.
• In order to ensure appropriate handling of user information, the government intends toarrange the ways of applying the provision to protect communication secrets of theTelecommunication Business Act within FY 2019, in the case of both domestic and foreign
digital platform companies providing communication services to the users in Japan, with aview to submit a bill to the next National Diet’s Ordinary Session.
• With regard to the ways of external application of the Travel Agency Act to overseas business
operators in cases where foreign digital platform companies provide travel services to theusers in Japan, the government will address the issue from the viewpoint of consumer
protection within FY2019 and receive the conclusion concerning effective measures.
(ⅱ) Regulatory review of the digital age• For accelerating the sharing of awareness and formation of consensus among the involved
party in the realization of “Society 5.0,” the structure for designing and reviewing“architecture,” which serves as a reference for the industrial world to ensure interoperability
and reliability between different systems to determine the standard of the data linkage
format, etc., will be constructed within FY 2019. With this structure at the core, and incollaboration with the Cross-ministerial Strategic Innovation Promotion (SIP) program andinitiatives conducted by each ministry, designing “architecture” will commence in FY2019
for the areas of mobility, drones, and plant security.
• While the cyber space and physical space merge together at a high degree due to datacollaboration, by utilizing digital technology such as AI, IoT, and big data (permanentmonitoring data), the Growth Strategy Council – Investing for the Future and the Council
for Regulatory Reform will, in cooperation, start a government wide review of regulatory
reforms that promote companies’ rational responses using joint regulation and other various
methods, without compromising interests protected by law such as security guaranteed byexisting regulations. In doing so, use of architecture will be reviewed from the perspectiveof realizing regulations suitable for the digital era, and a review of regulations utilizing
digital technology and data will be considered within FY2019 in the fields of consumer
protection and ensuring security regarding credit, etc.
• The government will advance the systematization of major legal procedure concerningindustrial security and product safety. While utilizing data from such a move, it will also
demonstrate the use of AI in the extraction of effective information and initiatives forenhancing safety, horizontal development, and prevention of accidents from FY2020, andwill conduct reviews to realize efficient regulations based on the data.

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Provisional Translationii) Promotion of data distribution
Further promotion of initiatives utilizing data is necessary for further economic
development through sophisticated collaboration between cyber space and physical space
and the realization of resolving social issues that Society 5.0 aims for. To achieve this, abasic approach to international and domestic distribution of data should be established assoon as possible to promote safe and secure data distribution and utilization.
The government is also required to promote the digital transformation of companies tobeat the global competition and strongly advance the securing of the world’s most advanced
infrastructure, which supports the society as a whole in the era of 5G. Moreover,
improvement of security levels in both cyber and physical spaces will be further improved
to realize a safe and secure data-driven society.
(i) Establishment of a fundamental approach in data distributiona) International data distribution• It is necessary to seek promotion of free data flow internationally, which facilitate unfetteredflow of data, that is beneficial to resolving business and social issues without national
border concerns, while ensuring reliability related to privacy, security, and intellectual
property rights. To this end, Japan aims to lead international discussions utilizing the G20
and other opportunities based on the “Data Free Flow Trust (DFFT)” concept.
Furthermore, Japan intends to promote formation of an international consensus fordevelopment of high-level rules with as many member countries as possible in negotiations
on rules related to electronic commerce transactions at the WTO, including data free flow.
• From the standpoint of having promoted the framework of mutual transfer of personal data
between Japan and the EU, and the APEC’s Cross Boarder Privacy Rules (CBPR), Japan
will lead discussions related to frameworks at country and company levels using theinternational conference and bilateral frameworks to ensure the international distribution of
personal data be safe and smooth, as well as improving interoperationability of personal
information protection rules among any relevant countries.
b) Smooth distribution of personal data
• Regarding the Act on the Protection of Personal Information, the government aims to takepreventative measures of inappropriate use of personal information, including adoption ofa framework that lets individuals request companies and others to stop the usage of theirdata and measures of applying no discrimination policy to domestic and foreign companies.
While considering to adjust the framework to promote more utilization of anonymized
information not sufficiently employed up to now and submitting a revisions bill to the
National Diet’s 2020 Ordinary Session. (Repeat)• To realize smooth distribution of personal data, the government aims to prepare thearchitecture of functions to be implemented by each player (data holders, individuals, data5

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users, etc.) in the data distribution market through demonstration experiments and othermethods. In particular, a review of accredition rules concerning “information bank,” which
provides personal data to the third party, an anticipation of its diversification is plannedin the summer 2019. The government aims to accelerate accreditation based on this review,
while also considering the construction of the platform for realizing collaboration between
information banks and prepare the results within FY2019.
• Amidst further integration of communication and broadcasting, the government intends topromote creation and development of new service businesses utilizing broadcasting datasuch as a viewing history, and aims to accumulate cases (actual practices) of using
broadcasting data and the development of rules regarding the third-party provision by
FY2020.
c) Creation of new businesses through data collaboration and distribution• For the realization of the “Connected Industries,” that aims for creating added value andresolving social issues utilizing real data, the government aims to share the industrial datain the cooperation area and expand collaborative cases, while advancing the certification of
the specified innovative use of data for industrial activities based on the the Act on Special
Measures for Productivity Improvement. At the same time, in an anticipation of full-fledged
operation of mainly the five priority areas (autonomous driving and mobility services,manufacturing and robotics, bio and materials, plant and infrastructure security, and smartlife) from FY2020, the government intends to provide support for the development of thestandard architecture, and a platform to share data as well as the development of an AI
system that creates services on the basis of the said shared data from FY2019.
• For the strengthening of regional capacity in the era of Society 5.0, in the areas familiar in
our lives such as health promotion, education, agriculture, and disaster prevention, thegovernment will provide support for formulating an implementation plan of regional IoT,
the implementation project of models with established introduction effects, and implement
promotion for developing towns, which are cross-disciplinary and based on utilizing data,in cooperation with ministries and agencies relevant to the area of city OS construction for
local governments aiming to resolve regional issues. Relevant initiatives using IoT will becreated at 800 local governments by the end of 2020.
• To encourage the use of ICT by the elders and disabled people, regarding ICT equipment
and services, the government will realize as soon as possible the construction of a sharedplatform for disability-related data, which promotes development through the participationof people with disabilities themselves, and the introduction of self-diagnosis and disclosure
schemes for ensuring accessibility. Along with this, it will also work on the development of
mechanisms concerning digital use support staff, such as specific details of the activities of
support staff and an ideal way of providing support for the support staff (e.g. division of6

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roles among the national government, local government, and NPO organizations).
• For the efficient use of an enormous amount of information increased due to the advent ofdata society, some technology developments will be established – computing technology
regarding innovative AI aimed by 2022 and the next generation computing technology(quantum computer, brain-like computer, etc.), which achieves both high speed and low
power consumption due to new principles, by 2027. In addition, towards social
implementatiton of these technological developments, the government will also work on
human resources development, focusing on young people through the implementation ofcompetitions related to software development that operate on AI chips and cultivation ofuse cases for the next generation computing technology.
(Promotion of sharing economy)• Dissemination and promotion of sharing economy will be carried out from the viewpoint ofpromoting the creation of innovation and new businesses, while protecting the safety of
consumers and others.
• For further safety and reliability of sharing economy, the government, in cooperation withindustry groups, will review a mechanism to certify share workers who have acquired acertain level of skills. Work to crystalize the system within FY2019, and implement it fromFY2020.
• In light of the revised model guideline, the share worker certification system, and model
initiatives aiming to resolve regional issues conducted by local governments, a sharing
economy model with the advantages of mutual assistance and value co-creation from Japan
will be constructed and unified. Public-private social implementation will be promoted.
Japan will take a leading role in establishing international rules at the International
Organization for Standardization (ISO) and promote international standardization with themarket creation in mind.
(Dissemination and promotion of open data)• To accelerate the process of disclosing open data in line with private needs, the government
will focus on advancing the open architecture in the areas of “health, medical care, nursing
care, and parenting” and “education” through holding public-private round table, while
conducting follow-ups on the initiatives by each ministry and agency, and promote
disclosure of concrete data. Furthermore, ministries and agencies will proactively hold open
data public-private round table to promote further data disclosure.
• Training, through which participants can acquire knowledge and skills necessary for solving
regional issues and contributing to economic revitalization, will be implemented about 40
times within FY2020 in order to achieve 100% of open data engagement rate at local
governments, and expansion of the recommended data set will be promoted.
• In order to contribute to resolving social issues utilizing data based on the centralized

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provision of open data, the integration of the government’s data catalogue website with eGov (the official web portal of the Government of Japan) will be realized.
(Smooth distribution of contents)• The government will carry out demonstrations in FY2019 regarding the distribution ofcontents utilizing blockchain technologies, etc. And based on the results of thedemonstrations, conduct a review of ways to handle rights and share profit concerning new
business creation and copyrighted work, putting together the outcome within FY2020. In
addition, to advance the dissemination and rolling out of simultaneous internet distribution
service of broadcasting contents, mechanisms for more smooth and efficient rights handlingusing the rights information database and blockchain technologies in the area of music will
be developed by FY2021.
• The government will promote the realization of contents platform, which enables creationof new services and an environment in which over 50 broadcasters and production
companies nationwide, including local broadcasters, to efficiently and steadily distributediverse and quality contents online.

(ⅱ) Development of distribution and utilization environmenta) Aggressive system reform• The government will consider the formulation of the criteria (digital governance code) for
objectively evaluating digital transformation (DX) and digital governance at companies,
and the establishment of the DX rating system conducted based on the results of the saidevaluation including legal measures, and based on the conclusion reached during the
FY2019 and institutionalize them in order. In addition, to ensure the progress of systemdevelopment in a smooth cooperation relationship between IT vendor operators and user
operators, ways to have an ideal contract between the two parties will be reviewed and acontract model will be formulated during FY2019.
• For the use of data in social infrastructure, reduction of the renovation cost of legacy systems,
and improved business cost efficiency, the government intends to promote a common
systematization in the non-competitive area including the embedded software field.
Specifically, system construction of a common platform for business management and thedata distribution in water supply businesses will be conducted within FY2019, and it will
start operation from FY2020. The obtained results will be considered in terms of their
expansion to other social infrastructure.
b) Promotion of further enhancement and advancement of network• As part of efforts for realizing Society 5.0, the government will provide necessary support
for the deployment of 5G base stations, optical fiber, and other information and8

Provisional Translation
communications infrastructure by telecom carriers and others nationwide, and accelerate
the 5G development plan by the end of FY2024 and promote cable television networks toadapt optical fiber. In addition, it is aimed that the condition of tunnel sections of the
Shinkansen with no mobile phone connection will be resolved by 2020. Regarding otherexisting train lines, the government will consider measures to promote the development ofan environment where mobile phones can be used regarding tunnels in the route sections,which occupy 90% of transit, by FY2022, based on the business situations of private
business operators, and will reach a conclusion by summer 2019.
• As a response to the expansion of radio use needs going forward, the government intends topromote a test environment that reproduces element technologies of Beyond 5G and radio
wave propagation in the real world as a simulation required for their smooth and quick
introduction, and the research and development of a communication system utilizing HAPS(High-Altitude Platform Station). It will also carry out the construction of a system forenabling dynamic frequency sharing with existing systems by the end of FY2020.
• To promote smooth introduction of wireless communication for the purpose of enhanced
productivity at automobile assembly plants, three-dimensional automobile warehouse, andother similar locations, technologies for optimal control of wireless communication in theplants and technologies for improved reliability of wireless communication in the plants
will be established by FY2020 and 2021 respectively, while also realizing the international
standardization of each technology.
c) Establishment of Use Case based on new technologies• The government will steadily promote the nationwide development of 5G services bylaunching the services in all prefectures before the end of FY2020. At the same time, it will
also implement demonstrative experiments of verification of the technology and system
relating to the resolution of reginal issues utilizing ICT such as 5G in cooperation with
relevant ministries and agencies, local governments, local residents and groups. In addition,
part of the necessary system development for local 5G to deal with resolving issues closely
linked to each region will be launched in advance in autumn 2019 and will be in fulloperation by 2020.
• For more advancement of 4K and 8K broadcasting in cooperation with communication
technologies and nationwide dissemination of advanced video distribution services,
verification of technical issues and formulation of technical specification will be conductedby FY2021 to realize further dissemination of 4K and 8K and the creation of new services.
In addition to the 4K and 8K broadcasting and video distribution, the government willdevelop systems that will enable the use of endoscopes utilizing 8K technology intelemedicine by FY2021 and will establish the cross industrial foundation by making useof medicine in a wide range of fields.

9

Provisional Translationd) Disaster response using ICT• For traffic congestion mitigation and risk aversion in the event of a large-scale disaster inurban areas, the government will collect and understand actual traffic conditions withcooperation from relevant business operators and disclose objective data. It will also forma council involving relevant parties from broad business areas such as telecommunications
carriers and content providers, etc. within 2019 and advance the transition to regionally
distributed network composition utilizing region IX 1 and CDN 2.
• To enable public organizations to use multilingual translation cloud services during FY2019,any necessary environmental development such as the formulation of the security privacy
guideline for introducing the multilingual translation cloud will be carried out. Efficient
provision of evacuation information for foreigners visiting Japan and new foreign humanresources in multi-languages will be realized.
• For smooth transmission of disaster related information by L-Alert and further expansion of
the use, the government will build a system to confirm and amend information distributedby L-Alert to improve the promptness and accuracy of L-Alert information.
(iii) Ensuring cybersecurity• In accordance with the Cyber Security Strategy (Cabinet decision on July 27, 2018), which
serves as the basic plan for three years from 2018, the government will steadily promote
initiatives based on the new annual plan while understanding actual situations of damage
related to cyberattacks. Following this, to ensure the cyber security in an anticipation of theTokyo 2020 Olympic and Paralympic Games and the period afterwards, the government
will promote active measures for the following areas: advanced collaboration in prevention
and detection at the government organizations by introducing and utilizing newtechnologies; construction of information sharing systems beyond existing frameworks;
development of a technology verification system to deal with supply chain risks; promotionof research and technology development; development of handling arrangement; awarenessreform at the management level; securing and developing human resources; vulnerable IoT
equipment.
• Aiming to activate the approach of incorporating market needs into Japanese security
products and verification businesses in Japan, the government will advance theestablishment of evaluation mechanisms, preparation of relevant guidelines, and theconstruction of verification foundation from FY2019, in order to realize the “Proven in
Japan,” a framework comprehensively used in conducting performance evaluation,
reliability evaluation security products, and verification of real attack by white hacker.

1
2

IX (Internet eXchange): Traffic exchange base on the Internet.
CDN (Content Delivery Network): Distributed information distribution system to deliver contents to users efficiently.

10

Provisional Translation• The government will advance the technical development and verification to efficiently detectfraudulent functions incorporated into systems containing 5G and vulnerability roughly by
FY2020 to deal with supply chain risks, and will work to disseminate countermeasures
based on the results of this to critical infrastructure business operators. It will also develop
an environment in which procurement can be carried out from supply chains with secured
trust, mainly for semiconductor responsible for data management and processing.
• For ensuring the security of the entire society in the age of Society 5.0 and reliability, thegovernment will promote the implementation and embodiment of the Cyber/Physical
Security Framework (CPSF), which is a framework based on a compiled risk sources facedby the entire supply chain including business partners and response policies, not security
measures by each company. To that end, guidelines by the industrial field based on various
characteristics of industrial structure and business practices in the smart home field andother industrial fields will be formulated in order from FY2019.
In addition, in order to organize ideas regarding security measures for data and IoT
equipment and software management measures that require cross-sectoral, consideration
will be conducted in FY2019 and preparation for guidelines, etc. will be advanced by
FY2020.
• Aiming for the creation of simple and inexpensive cybersecurity insurance andaccompanying services available for SMEs during FY2020, demonstration concerning a
consultation desk for the security at SMEs and the mechanism for providing support suchas post-consultation support will be conducted in every region nationwide from FY2019.
• As a foundation to support free, safe, and secure data distribution in cyberspace, thegovernment aims to reach a conclusion during 2019 and realize swift institutionalization of
the way for the mechanism to prevent (trust service) falsification of data and spoofing ofsources, in light of the perspective of international interoperability.

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2. Fintech/Finance(1) Major progress of KPI[KPI] Implement open APIs at least in 80 banks (by June 2020).
⇒As of March 2019, 130 out of all of 138 Japanese banks (excluding Japanesebranches of foreign banks) have announced plans to implement open APIs. 124 outof the 130 banks haveannounced plans to implement open APIs by June 2020.
[KPI] Double the percentage of cashless transactions to about 40 %.
⇒In 2018: 24.1%* The numerator is the sum of payments made by credit cards, debit cards, andelectronic money in 2018. The denominator is the private final consumption
expenditure in 2018 (in nominal terms, second preliminary figure).
(2) New specific measures to be takeni) Review of the legal systems based on the advancement of innovation• The government plans to revise the relevant legal framework divided by business categories
and to pursue realization of a function-based, cross-sectoral framework that applies the same
rules to the same functions and risks. In particular, the government plans to adopt a crosssectoral and flexible structural framework in the field of payments, that has been cited as anarea in which the vertical structure by business segment under current laws interferes withfree selection of business models and services by service providers. In order to realize
flexible, highly convenient cashless payment methods through this initiative, the government
plans to submit necessary bills for these changes to the 2020 ordinary session of the National
Diet.
• The government intends to review measures for realization of cross-sectoral financial services,brokering legal framework that will enable provision of a highly convenient one-stop channel,
which meets the needs of individual users utilizing smartphones and other devices, and aims
to prepare its fundamental approach for this initiative during 2019.
• The government intends to review implementation support for an innovative identity
confirmation system by private business operators and utilization of the identity confirmation
between other specific business operators including credit card companies, thereby
promoting the sophistication and speeding-up of identity confirmation.
• The government plans to deal with the issues related to crypto-assets (virtual currency)
exchange service providers and the emergence of new transactions using crypto-assets bysteadily implementing the partial revision of the Payment Services Act and the Financial
Instruments and Exchange Act, ensuring user protection, and promoting necessary
environmental development such as clarification of relevant rules.
ii) Accelerating initiatives to realize a cashless society• In the Point Reward Project for Consumers using Cashless Payment implemented in October
2019, the government intends to provide various supports including payment terminal
installment assistance and service fees reduction measures to prepare an environment thatwill make it easier for SMEs and small businesses to introduce cashless payment in their

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businesses. At the same time, the government will also provide support for the point reward
project for consumers who will choose a cashless payment at an SME or small business shop
in order to create an opportunity for consumers to experience convenience of cashless
payment.
• The Cashless Payments Association of Japan where all relevant people of the industry,
government and academia gather will consider how to handle business operators to realize
cashless payments based on the guideline of unified QR code payment which was publishedin March 2019. The government also intends to promote cashless payment through the entire
communities by utilizing the Point Reward Project for Consumers using Cashless Payment
to support initiatives for introducing cashless payment in every shopping district andcommunity to cover a multi-spectrum.
iii) Promotion of innovations such as commercialization of FinTech• The number of banks implementing open APIs and the connection status and condition
between the banks and electronic payment agencies will be followed and disclosed asnecessary, while excellent examples of the services using APIs are also shared. With regard
to the conditions of connection through APIs, the API collaboration will be promoted in lightof the fact that it is a contract between private companies, while encouraging that it will
generate a Win-Win relationship for both the banks and FinTech companies.
• In addition to those measures taken with banks, the government will promote information
provision and collaboration using electronic methods that can more easily make use of
FinTech with securities companies and insurance companies, and actively work on thedevelopment of the conditions in which Japanese citizens can engage in economic activities
and asset formation such as asset management and maintenance under more rational choices.
• As part of the initiative to disseminate blockchain technology in the area of finance, thegovernment will sort out the issues related to the conversion of the procedures in trade financeinto electronic forms using the blockchain technology and consider measures to resolve theissues.
• Initiatives for facilitating responses to effective and efficient regulation and supervision incollaboration with the public and private sectors (RegTech, etc.) will be promoted byconducting reviews concerning sharing of the risk management system of anti-money
laundering and counter-financing of terrorism and utilization of the information provided bypublic organizations and agencies in customer management at a study group in the Japanese
Bankers Association. In addition, development of market monitoring systems to extract cases
where unfair trading in the market is suspected utilizing AI will be promoted.
iv) Infrastructure development for finance and commercial distribution collaboration• Aiming at steadily realize the full shift to using XML formats in remittance telegram by 2020,
the finance and industrial groups such as the Japanese Bankers Association and the Japan13

Provisional Translation
Chamber of Commerce and Industry and relevant ministries and agencies will, in cooperation,
promote activities to widely disseminate this matter, sharing of good examples of utilizing
the Zengin EDI system (ZEDI), and other initiatives.
• Concerning the digitization of bill and check functions, the finance and industrial groups,
relevant ministries and agencies will cooperatively advance the initiatives to enhance
productivity as a whole society, with a view to realizing full digitization and setting an interim
target to make approximately 60% of the number of bills exchanged nationwide in electronic
methods in five years, while paying due attention to variety of users.
• The following initiatives will be implemented concerning the cashless payment of tax andpublic fund.
-With respect to the promotion of electronic filing of local taxes, the common electronic
local tax payment system for local corporate income taxes and other taxes will start operationfrom October 2019. At the same time, paying attention to advancing the system while gaining
an understanding of the local government, issues and countermeasures regarding further
utilization of the system, including its expansion to tax items with many requests from
taxpayers will be considered to draw a road map for its implementation.
-Regarding tax, government funds receipt and payment, at the “Workshop on Streaming
Payments of Taxes and Public Charges”, which is jointly supported by financial institutions,related ministries and agencies, local governments, and others, we will examine the issuesof improving convenience and efficiency using IT, and draw conclusions during FY 2019.
• As for wage payment, to consider to make a system to enable wage payment to an accountof a worker in fund transfer business operators, in condition that a system of insurance
etc. to secure sufficient amount to be paid promptly to the workers in case fund transfer
business operator goes bankrupt to secure worker protection such as secure payment ofwages and to consider the request for realization of payees’ needs and to realize a cashlesssociety, as soon as possible in FY2019 in consultation with labor unions and business
management organizations. Simultaneously, to implement risk-based monitoring of
relevant risks such as that of money laundering while referencing cases in foreigncountries.
• To promote data lending loans to SMEs and small businesses such as short-term andsmall-lot loan utilizing transaction data, operation methods of relevant credit guarantee
systems will be reviewed to reach a conclusion within FY2019.

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3. Mobility(1) Major progress of KPI[KPI] The launch of unmanned automated driving transport services on the publicroads in limited areas is planned for 2020.
[KPI] Unmanned automated driving transport services in limited areas will be
implemented in 100 locations nationwide by 2030.
[KPI] By 2020, over 90% of new passenger vehicles sold in Japan will be fitted with
automatic braking system.
⇒ Installation rate for new passenger vehicles sold in Japan: 77.8% (2017)[KPI] By 2020, safe driving support equipment and system will be installed in 20% of
domestic vehicles (stock based), which will account for 30% of the global
market.
⇒ Installation rate for domestic vehicles: 14.1% (2017)
Substitution rate for gaining the global market: 16.2% (2016)[KPI] By 2030, safe driving support equipment and system will be installed in all of
the new domestic vehicles sold in Japan, also covering almost all of the vehicles
even on a stock basis.
⇒ Installation rate for new passenger vehicles sold in Japan: 68.7% (2017)
Installation rate for domestic vehicles: 14.1% (2017)(2) New specific measures to be taken
Amid the declining birthrate and an aging population, securing means of transportationin regional areas and alleviating traffic congestion in urban areas are social issues. In
particular, securing means of transportation for the elderly has become an urgent issue tobe addressed. With the increasing inbound individual travelers to Japan, securing smoothtransportation for tourists, in addition to local residents, also needs to be addressed. Japanis facing an issue of a lack of drivers not only for the flow of people but also for the
distribution of goods.
Meanwhile, in the global context, a new service called Mobility-as-a-Service (MaaS),
which instantly connects various transportation facilities using data, enables the use oflimited transportation facilities in the most optimal way, and can be arranged and settled
easily by using a smartphone. It is expected that the social issues mentioned earlier will be
resolved by making MaaS more sophisticated through integrating the automated driving
technology, which shows a remarkable progress, and a wide variety of new mobility. In themedium term, these approaches will change the form of urban spaces and lead to thecreation of a smart city in which a city itself will function as a highly sophisticated service.

15

Provisional Translation
Japan intends to promote various types of mobility including necessary institutional
reforms, realization of data collaboration, and automated driving in order to resolve social
issues through these new transportation services.
In light of the recent situation regarding traffic accidents caused by elderly drivers, thegovernment will promote relevant safety measures.
i) Promotion of the Japanese version of Mobility-as-a-Service (MaaS)• For securing the transportation of the elderly in regions, the government, under an agreement
between each region, will conduct the following reviews from the perspective to improvethe usability of paid passenger transportation, which is mainly run by municipalities as atransport entity and approved by the Road Transportation Act, in so-called the “traffic blankarea,”-Transportation business operators (taxi business operators, etc.) should cooperate withpaid passenger transportation in a personal-use vehicle through their own know-how.
Specifically, the government will develop laws and regulations covering the case wheretransportation business operators receive a commission or they participate in theimplementing body. Since this case is based on the premise that the business operators
will participate, it is aimed to simplify the procedure for forming consensus at theregional level, thereby promoting the provision of secure and safe transportation
services and reducing the burden of the implementing body. Any necessary bills are
aimed to be submitted to the National Diet’s 2020 Ordinary Session.
-Attracting inbound travelers to Japan is an important viewpoint vital for regional
vitalization. This also applies to paid passenger transportation in a personal-use vehicle,
which is required to address tourism needs. Therefore, it should be specified in the lawthat paid passenger transportation in a personal-use vehicle covers not only local
residents but also visitors, as with the case of bus and taxi.
-In the current situation, approaches to the paid passenger transportation in personal-use
vehicles in targeted regions vary. Thus, local governments are required to specify theapproach to be referenced when local governments consider introducing the system.
Based on the actual condition of life, the government intends to investigate and analyze
existing cases of introducing the system, indicate a certain standard, and formulate
guidelines for the framework of judgment to simplify the consensus formation at theregional level.
-The government needs to simplify procedures for cases of adopting paid passenger
transportation in a personal-use vehicle in the Regional Public Transport Network Plan
(prepared autonomously or jointly by prefectures and municipalities based on the Act
on Revitalization and Rehabilitation of Local Public Transportation Systems), its

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procedure will be simplified.
• In order to enable as many people as possible to move inexpensively using limited
transportation, introduction of shared ride of taxi will be implemented generally without
setting any regional or conditional limitations. Specifically, the government aims to
improve the circumstance of notifications, etc. under the Road Transportation Act during
FY2019.
• To realize flexible fare systems, the government intends to approve pre-determined taxi fareby the end of FY2019. In addition, for the subscription service (flat rate service) anddynamic pricing service (price fluctuation system) to dig up potential demands, flat rate taxi
fare and taxi’s picking up fee will be considered.
• Regarding regional transportation, various entities will cooperate and collaborate, consider
approaches to planning and supporting systems to promote regional efforts based on the
progress of new technologies, such as AI, and services, and discuss the review of the Act
on Revitalization and Rehabilitation of Local Public Transportation Systems aiming for the
National Diet’s 2020 Ordinary Session.
• During FY2019, review meetings between the public and private sector will formulate
guidelines concerning compiling open data in the cooperation area and API, which can belinked to the system to have various transportations in the regions to link with each otherusing smartphones and realize new mobility services for achieving efficient and smoothtransport. Simultaneously, reviews to realize shared data platform, which makes data
linkage with transport business operators easier and various service operators will beadvanced.
• For the promotion of open data in the field of public transportation, with a view to its use inindoor navigation and other systems, the government aims to promote new open data
initiatives concerning positioning information at major stations by private business
operators during FY2019.
• With regard to MaaS in which travel to tourist areas of the region is considered as one service
and which provides integral services for searching, booking, and settling relating to railway
and bus using a smartphone, the government will promote the implementation of multilanguage services, subscription services (flat rate service) and other useful services fromthe perspective of foreigners, aim to promote online booking and settlement at tourist
facilities, and intend to realize tourism-type MaaS provided in the way of being integrated
with transportation services.
• In FY2019, the Ministry of Land, Infrastructure, Transport and Tourism and the Ministry of
Economy, Trade and Industry, in cooperation, are starting a comprehensive support forregions working hard to introduce new mobility services (Smart Mobility Challenge
Project). Furthermore, the Ministry of Land, Infrastructure, Transport and Tourism will

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Provisional Translation
establish models to match the characteristics of each region including the introduction of
new transportation services and develop rules to resolve issues that might become obstacles.
Through these activities, the initiatives concerning new mobility services will be expanded
nationwide.
• While working on the introduction of transportation IC card, which are mutually usable inall of the prefectures, by FY2020, the government will support the effort for cashless
payment services such as boarding confirmation by using cloud and QR code that regionaltransportation operators can adopted at a low cost.
• The government will support service efforts offered through MaaS by operators, which
comprehensively provide various transportation services with flexible fees, and work on
the ease of relevant systems and operation, as required. Furthermore, it will also makeefforts with a view to creating new mechanisms for necessary environmental improvement• The government intends to strategically launch the “Busta Project” nationwide to develop
integrated transport terminals such as Busta (Bus Terminal) Shinjuku, Shinagawa, and Kobe
Sannomiya. In doing so, it is ensured that the facilities are capable of supporting new
mobility services including MaaS. At the same time, an expert committee will consider
systems for making the most of private sector’s technology and vitality concerning
maintenance and operation management, and report the results during FY2019.
• To rebuild road space from the vehicle centered to people centered space including theutilization of new mobility, the government intends to examine the necessity of the revisionof laws and regulations during FY2019 and create a roadmap.
ii) Acceleration of efforts for the social implementation of automated driving• For the realization of the unmanned automated driving transport services by FY2020, thegovernment intends to conduct national public road demonstration experiments focusing
on the areas with high possibility in relation to the services and implement long-term
demonstrations, while also supporting initiatives for revitalizing regional transportation
services incorporating automated driving.
• With regard to high-precision 3D maps, which will serve as the foundation of automateddriving, the government will start working on the mapping of general roads with a focus
on prioritized areas, following the completion of expressways mapping, while working
to advance the international standardization of the service in collaboration with North
America.
• Development of systems based on the Outline of the development of systems concerning
automated driving will be steadily promoted, and the studies for system development
toward Level 4 will be commenced.

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Provisional Translation• Concerning truck platooning, while advancing the development of manned truck
platooning which can reduce the burden of following truck drivers

for market launchand data verification, Japanese government intends to conduct demonstrations of truck
platooning without driver (unmanned) in follower trucks

on expressways in FY2020.

Additionally, in anticipation of realizing truck platooning on an expressway, stability andefficiency of the double network connecting the major three metropolitan areas will befurther enhanced by upgrading the number of lanes at the Shin-Tomei Expressway andthe Shin-Meishin Expressway to six, and practical measures for the use of highway
infrastructure such as installing rest facilities and disconnection base mainly at the ShinTomei Expressway will be considered.
• For strengthening the international competitiveness of the automotive industry, Japan willtake a leading role in the discussion toward formulating international standards forautomated driving technologies based on Japanese technologies at the World Forum for
Harmonization of Vehicle Regulations (WP29).
• Taking the Tokyo 2020 Olympic and Paralympic Games as the opportunity to disseminate
the most advanced technologies, the government will implement the development oftraffic infrastructure through which traffic signal information and junction section
support information on highways are sent to vehicles, and demonstrations of automateddriving technology will be commenced by private business operators at the Tokyo
waterfront area from October 2019.
• The government will consider the infrastructure necessary for automated driving such as
exclusive spaces for automated driving vehicles, and road-vehicle collaboration
technology for electromagnetic induction wire to be laid on roads, and examine thepositioning, and development and management methods of them under the Road Act,and compile the results during FY2019.
• In order to deal with the expansion of aviation demand and the shortage of providers, andfor the implementation of labor saving technology by 2020, the government will
significantly expand the targete of automated driving vehicles for which demonstration
has started within the restricted areas of the airport, while installing necessary equipment
for charging and location estimation as well as conducting necessary revisions ofbusiness guidelines within the airport.
• Anticipating human resources shortage in the future, to reduce the cost of regional railway
facing particularly severe management conditions, the government will consider
introducing new technologies that contribute to the enhancement of productivity such as
automated driving system at general railway routes with railroad crossing and. thelocation detection system with high accuracy using the Quasi-Zenith Satellite System,and prepare the results within FY2019.

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Provisional Translationiii) Promotion of various mobility on land, sea, and air , and logistics reform(i) Construction of the next generation air mobility system• The government plans to promote operation management system and technology
development of collision avoidance utilizing Fukushima Robot Test Field in order to allow
drones to conduct flights beyond the visual line of sight in populated areas to provide
businesses providing cargo transportation services aiming for FY2022. It will also decide
the basic policy of designing the system for securing the security of aircraft such as acertification system, system for securing the skills of pilots and operation managers, systemfor operation management of multiple drones, registration system for aircraft and owner’s
information, and systems including the ideal ways of victim relief during FY2019.
• By FY2021, the government will establish drone technology capable for social
implementation to enable flights beyond the visual line of sight in populated areas.
Furthermore, based on the basic policy of the said system design, necessary system
upgrading will be advanced towards FY2021. The government must also pay attention to
the promotion of new service creation and simplification of procedures of various system.
• To promote the use of drones in various fields such as logistics, agriculture, forestry andfishery, infrastructure maintenance management and disaster response, the government
intends to advance efforts such as technology development and demonstration experiments
corresponding to the use in each field, and formulation and dissemination of guidelines,
based on individual field sections in the roadmap formulated by the public-private council
for improving the environmental concerning drones.
• The government aims to implement the introduction of automated inspection using dronesin the maintenance management of erosion management facilities located in a steep
mountainous area and requiring high-place work, and in disaster responses such as landslide
in FY2020 by revising inspection procedures according to demonstration experiments.
• Concerning the expansion of radio wave use by drones, their flight will be made possible byapplying online to mobile phone operators through their website during 2020 at the latest.
Until the date above, with respect to the Development Test Station license, the government
intends to construct a new mechanism that enables drones for agricultural use and otherdrones to conduct low flights utilize mobile phone radio wave through simple procedures,and determine that the period from application to approval including procedures by mobile
phone operators be within one month in principle.
• Particularly in the fields of agriculture, forestry and fishery, drones are planned to be actively
used for crop spraying and fertilizer distribution, sawing seeds, pollination, harvest
transportation, sensing, maintenance and management of farmland and agriculture water
use facilities, and measures against wildlife damage. For that purpose, based on the20

Provisional Translation
popularization plan of drones for agricultural use and through the public-private council for
expanded utilization of drones for agricultural use, the government will conduct technology
development and demonstration including initiatives for expanding flights beyond thevisual line of sight, while advancing dissemination of advanced cases and a review of rules.
• Based on the “Roadmap toward Air Mobility Revolution” for the realization of “flying
vehicles,” with the goal of starting business in 2023, necessary technology development by
the targeted year and the improvement of systems such as aircraft’s safety standards will beadvanced.
(ⅱ) Promotion of various land mobility and logistics reform• The government will implement demonstrations dealing with regional issues in relation togreen slow mobility is law speed electric mobility that supports last one mile transportation,
and aims to implement green slow mobility in 50 areas by FY2020 while conducting
demonstration experiments according to local issues.
• Aiming for. The social implementation of automated driving robot, which is expected to be
used for delivery and other services, the government will construct a framework fordemonstration by formulating the standard of handling application for road use permission
during FY2019 and conduct the demonstration of an automated driving robot on publicroads. In addition, the government will establish a public-private council for full-scalesocial implementation during FY2019 and start an examination of necessary measures forthe formulation of roadmap and improvement of social acceptance, the ways that necessary
rules should be, and required safety also in light of discussions by the council.
• With regard to depopulated areas where freight transportation can be carried out using taxi
vehicles by obtaining permission for the general motor truck transportation business, basedon the policy dealing with proposals from local regions in 2017 (Cabinet decision on
December 26, 2017), the government will conduct demonstration of implementation
situations in the said area from the perspective of ensuring transportation safety andprotecting users’ interest. At the same time, in light of the opinions of involved parties suchas local governments and motor truck transportation business operators, expansion of thescope of targeted depopulated areas will be considered, a conclusion will be reached during
2019, and based on the conclusion necessary measures will be taken.
• A council will be formed during FY2019 with the aim to standardize slips, exterior packages,
and data specification to promote joint logistics beyond the boundary of each company inresponse to labor shortage at logistics business operators, while an action plan will be
formulated and demonstration experiments for sharing logistics and commercial
distribution data with the entire supply chain will be started during 2019.
• Aiming to reduce the re-delivery rate to approximately 13% during FY2020 (15% in

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Provisional Translation
FY2018), relevant issues will be reviewed and measures will be considered regarding thedelivery method to a place designated by users to allow further diversification of receiving
methods, and a conclusion will be reached during 2019.
• Based on the Action Plan for the Realization of Work Style Reform for Automobile Carriers､
the government intends to strongly promote the improvement of labor productivity andoptimization of trade environment such as the development of “white logistics” promotion
movement for improved efficiency of logistics, and the reduction of loading time andimproved cargo handling work.
(ⅲ) Development of new maritime system• Toward the practical use of Maritime Autonomous Surface Ship (MASS) by 2025, thegovernment aims to reach an international agreement during FY2023. To that end, whileadvancing technical development (e.g. system integration) and demonstrations by coastal
shipping, the government will formulate safety design guidelines of MASS during FY2019,ahead of the world, and prepare types of information and specification draft during FY2019
to enhance the productivity in the supply chains through sharing information related to thedesigning of ships and marine equipment.
• Responding to the increasingly serious issue of insufficient truck drivers and strengthening
the transportation capability of ferries and RORO ships 3, the government aims to prepare
the following comprehensive measures during FY2019 and promote them: measures formaking intermodal transport smart by 2030, sharing chassis using ICT and advancing
management, introducing cashless payment for toll collection, and introducing automatic
docking/undocking mechanism and the automatic temperature management system.
iv) Ensuring road traffic safe responding to the recent traffic accidents
In response to the recent accidents caused by elderly drivers and traffic accidents involving
little children as victims occurred in succession, the government aims to realize a society
with no traffic accidents by aspiring to develop measures to prevent accidents caused by
the elderly, ensure safety of the daily group walking routes mainly for pre-school children,and take other necessary measures.
• While actively adopting the advancement of new technology for the measures to support
safe driving among the elderly, mainly the following measures will be strongly promoted.
At the same time, the above mentioned i) and ii) as well as initiatives for maintaining andrevitalizing regional public transport network will be implemented to promote measures for
ensuring the means of transportation for the elderly.
3

An operation form in which trucks and trailers loaded with cargo can get on and off themselves and shift to landtransportation seamlessly. RORO=Roll On/Roll Off

22

Provisional Translation-In response to the international standard of Advanced Emergency Braking System (AEBS),
which is expected to enter into force in January 2020, the domestic standard of AEBS will
be formulated. Aiming for the period before the end of 2019, the government intends toreach a conclusion regarding the mandatory AEBS for new vehicles. In addition to AEBS,
a conclusion will also be reached within 2019 for the introduction of a performancecertification system for the acceleration control device involving accelerator and brake
pedal misapplication.
-On the premise of automobile with safe driving support function, relevant ministries andagencies will, in cooperation, discuss ideal ways of the system to be operated, the scope andrequirements of safe driving support function necessary for automobiles appropriate for the
license system, that allows the elderly to drive safety and of confirming compatibility, andmeasures to popularize the said automobile for the establishment of that license system, anddetermine the direction during FY2019.
-Development of safe driving support equipment to be installed to already sold vehicles will
be promoted, while the establishment of the performance certification system of theequipment and its implementation from FY2020 will also be considered.
-Development of new advanced safety technology will be promoted. In particular, guidelines
for technical requirement concerning Intelligent Speed Assistance (ISA) will be formulated.
-Consultation for driving aptitude will be further enhanced during FY2019 by placing more
specialist officials and improving the environment for consultation.
-To deal with driving in the wrong direction on highway, new technologies concerning thewrong-way-driving measures, which were publicly sought and selected from privatecompanies in FY2018, will be actively implemented.
• To protect precious lives of children who are responsible for the next generation in the wholesociety, the government will work to ensure safety of the routes that mainly pre-school
children use in a group on a daily basis as soon as possible.
-Under the cooperation of relevant ministries and agencies, the government will implement
emergency inspections of “roads that children (at kindergarten or nurseries) use in a groupon a daily basis,” and compile the results aiming for autumn.
-Based on the results of emergency inspections, the government will reinforce the traffic safety
facility maintenance including the establishment of the Zone 30 (areas with 30km/h speed
limit) and other measures focusing on the whole area, while promoting the establishmentof safe and secure walking space by implementing separation of space used by pedestrians,
automobiles, and bicycles, expansion of side walk, elimination of electric poles, measures
for railroad crossing, and installing guard fences. In addition, effective speed control
measures within the area of community road using data from ETC2.0, and functional
differentiation of residential and arterial roads based on arterial road measures such as

23

Provisional Translationintersection improvement will be promoted.
- Promotion of establishing a school zone, and measures for establishing a kids zone
(provisional name) and will be developed with details as soon as possible.

24

Provisional Translation
4. Corporate Governance(1) Major progress of KPI[KPI] Improve ROA of large Japanese companies (TOPIX500) to the level which iscomparable to those of US and Europe by 2025.
⇒ Japan (TOPIX500): 4.0%
U.S. (S&P500): 6.2%
EU (BE500): 4.2%
*These numbers are calculated in late May 2019 based on yearly financial resultsof the companies between April 2018 and March 2019.

(2) New specific measures to be takeni) Corporate governance reform
Based on the revision of the Corporate Governance Code in June 2018, the government
aims to promote initiatives for enhancing the quality of dialogues between investors andcompanies, from the perspective of further advancing the responses to some issues such as
business management conscious of capital cost by companies, cross-shareholdings,
exercising functions of the board of directors. On the other hand, further enforcement ofcorporate governance is required in accordance with the global standard in order to
upgrading the competitiveness and reliability of Japanese companies. Responding to thesesituations, the government intends to advance the following initiatives to progress Japan’s
corporate governance reform for realizing medium- and long-term improvement ofcorporate value in expert meetings of relevant ministries and agencies such as follow-up
meetings of the Stewardship Code and the Corporate Governance Code.
• The government intends to formulate rules on governance at listed subsidiaries, requiring
parent companies to explain the significance of having listed subsidiaries in reorganizationof business portfolios and clarifying an appropriate governance format to boost utilizationin the practice at listed subsidiaries.
〇The government plans to newly formulate “Practical guidelines on the group governancesystem” that present a listed-subsidiary governance format and encourage complianceby companies.
[Requirements for listed subsidiaries]-Support a core role for independent outside directors in protection of generalshareholders and ensuring autonomous decisions-Given the importance of independence from the controlling shareholders to ensure theefficacy of governance at the listed subsidiary, at least include not selecting a personwith ties to the controlling shareholder (person who worked at the controlling25

Provisional Translation
shareholder over the past decade) in criteria for determining the autonomy ofindependent outside directors.
-Aim to increase the percentage of independent outside directors on the board of thelisted subsidiary (at least one-third or a majority).
-In specific cases of transactions with conflicts of interests, investigate and review fromthe standpoint of protecting the interests of general shareholders via a committee
comprised of only or a majority of independent outside directors (or independent
outside auditors) and built a board framework that respects investigation results.
-Disclose information to investors, etc. on the type of governance framework built by
the listed subsidiary to ensure the interests of general shareholders[Requirements for parent company response]-The parent company should provide a good reason for maintaining the subsidiary as alisted entity from the standpoint of maximizing group enterprise value. It should also
exercise rights to select and remove directors of the listed subsidiary as the controllingshareholder in a manner that protects the efficacy of subsidiary governance and fulfill
an obligation to explain the suitability of actions to investors, etc. through disclosureof information.
〇 The Tokyo Stock Exchange should take additional measures to enhance theindependence of listed subsidiaries from the controlling shareholder, such as revising its
autonomy standards in accordance with the direction of the guidelines in order to raise
the efficacy of “Practical guidelines on the group governance system.”• The government aims to formulate “Practical guidelines on the group governance system,”
which shows an ideal form of optimizing business portfolio and effective subsidiarymanagement in group management, and nomination of the subsidiary management teamand decision on their pay to enhance the corporate value for the entire company group,
widely disseminate the guidelines, and promote and steadily implement practices in linewith the guidelines.
• For the improvement of the effectiveness of corporate governance reform throughsubstantiating a dialogue between investors and companies, the government aims to
conduct discussions for promoting constructive dialogues and carry out further revision of
the Stewardship Code in FY2020.
• Aiming to enhance the reliability of the capital market in Japan and promote M&A that
contributes to improving corporate value, in the summer of 2019 the government will newly
formulate “Guidelines on approaches to fair M&A,” which present fair procedures to secure
general shareholders’ profit in Management Buyout (MBO) in which the issue of structural
conflict of interest exists and acquisition of a listed subsidiary by its parent company(becoming a wholly-owned subsidiary), widely disseminate the guideline, and promote and26

Provisional Translation
steadily implement practices in line with the guidelines.
• The government will encourage the use of special measures concerning the tax system andthe Companies Act established based on the Revised Act on Strengthening Industrial
Competitiveness (enacted in July 2018) to promote M&A in consideration for company’s
own share, and consider further institutional response to promote its use, in light of thefollowing proposed revision of the Companies Act and the situation of the systemdevelopment overseas.
• Based on the report by the Legislative Council of the Ministry of Justice, the government
aims to realize early establishment of the proposed revision of the Companies Act, which
includes mandatory appointment of outside directors, establishment of the share delivery
system to enhance and expand the methods of M&A in consideration for company’s own
share, and the establishment of the system of electronic provision of materials related toshareholder meetings.
• Aiming to develop the most ideal dialogue environment from the global point of view, thegovernment intends to compile the results of discussions on the new ways to use electronicmeans on the day of shareholders meetings by the autumn 2019, while continuing to review
the situations of the ways in which dialogues are conducted through the year in foreigncountries.
ⅱ) Improving the quality of information disclosure and the quality of accounting and audit
for constructive dialogues
Based on the perspective of sustainable improvement of corporate value, the government
intends to develop the environment in which companies and auditors mutually cooperate
to deepen their understanding of the management environment and risks surrounding thecompanies and information for enabling investors to make appropriate judgment. To thisend, relevant ministries and agencies will promoted the following initiatives.
• Initiatives for improving descriptive information such as business strategy and risk
information that appropriately reflect the management’s idea will continue to be conductedin order to facilitate constructive dialogues between companies and investors for the
improvement of medium- and long-term corporate value.
• Based on the described examples in the report “In support of initiatives for integrated
disclosure of business report and securities report” (formulated on December 28, 2018, by
the Cabinet Office, the Financial Services Agency, the Ministry of Justice, and the Ministryof Economy, Trade and Industry, relevant ministries and agencies will support initiatives
and collaboration by the companies that intend to make an integrated disclosure.
• By advancing further initiatives to facilitate the shift to International Financial ReportingStandards (IFRS), in collaboration with relevant organizations and agencies, the27

Provisional Translation
government will promote the expansion of voluntary application of IFRS to companies.
Meanwhile, the government also intends to advance initiatives to make measures forenhancing information provision concerning accounting audit including improved
transparency of audit report effective from the viewpoint of ensuring the credibility ofaccounting audits, while also conducting survey research on the forms of the audit market
including overseas trends.
iii) Promotion of smooth financing through the realization of vibrant financial and capital
markets
Entering the age of 100-year life, it is important that financial assets are transferred to abalanced portfolio depending on the risk preference, while improving the financial literacyof the citizens in order for them to realize asset formation required for their own life plan
and lead it to economic growth.
In this situation, for each entity involved in the investment chain, which starts from thehousehold economy which is the source of funds to domestic and foreign fund demanders
via financial and capital markets, to be able to bring more appropriate return, and forstrengthening such functions, the following initiatives will be promoted comprehensively.
• For each citizen to realize stable asset formation, the government intends to promote efforts
to improve financial literacy, in cooperation with relevant parties including teachers andschools, and also conduct discussions on the spread of NISA system and for its
improvement. Since the reserve-style NISA, in particular, contributes to the improvementof financial literacy through the stabilization of long-term, funded, and diversified
investment, as well as investment experiences, its dissemination will be actively promoted.
Meanwhile, in relation to the prolonged period of securing income in old age, thegovernment intends to consider simplifying procedures regarding the raising of possible
enrollment age in private pension such as iDeCo (Individual-type Defined Contribution
pension plan), and based on the discussion in the social security council, the government
will consider a review of the system. Additionally, in the context of promoting further
spread of the private pension system, a review will be conducted toward the iDeCo’s online
enrollment procedures and the simplification of procedures. Regarding various tax systems
that support asset formation in preparation of life after retirement including the private tax
system such as the NISA system and iDeCo, the government intends to advance
comprehensive reviews based on the perspective of building a fair system to ensure that noadvantage or disadvantage occurs depending on different working styles.
• For the establishment and building of Fiduciary Duties, further improvement in the effort offinancial institutions will be promoted by utilizing excellent examples at sales companies
of investment trusts, etc., results of analyzing customer awareness surveys, and shared KPI

28

Provisional Translation
announced by companies in the dialogues with financial institutions.
• Based on the basic agreement concluded in March 2019 between Japan Exchange Group andthe Tokyo Stock Exchange, the government aims to actively work on the development ofnecessary environment in order to realize comprehensive exchange with high levels ofinternational competitiveness. In addition, the government intends to continue actively
working on the opening of an electricity futures market.
• The government intends to discuss the form of the Tokyo Stock Exchange’s market structurefrom the perspective to develop an environment where various investors both in and outsideof Japan can invest easily and to promote attractiveness of listed companies themselves asinvestment target.
• From the perspective of reinforcing the function of Japan’s financial market, the government,in cooperation with the Tokyo Metropolitan Government, intends to promote further
accumulation of financial business operators in Japan through invitation activities foroverseas asset management operators, preparation of a guidebook to support registration
application for the financial industry, and utilization of the Financial Market Entry
Consultation Desk. At the same time, innovation in the financial industry will be promoted
by using FinTech Support Desk and FinTech PoC (Proof-of-Concept) Hub.
• As the host country, Japan will support the Secretariat of the International Forum of
Independent Audit Regulators (IFIAR) in running smooth operation and expanding themember countries.
• To promote risk money supply by the private sector for strengthening growth potential,
further utilization of the investment function of the Development Bank of Japan and others
will be planned by using government investment (industrial investment). Along with this,the government will implement efficient and effective utilization of public-private fund,and intends to steadily advance specific initiatives in accordance with formulated
improvement goals and plans, based on the New Economic and FY Revitalization Plan
Reform Roadmap 2018.

29

Provisional Translation
5. Smart Public Services(1) Major progress of KPI[KPI] (New) The government aims to lower system upgrading-related expenses out of
the government information system operating expenses and maintenanceexpenses by 30% by FY2025.
[KPI] To be within the top 3 developed countries of the World Bank's business environment
ranking by 2020.
⇒ Ranked 25th as of the announcement in October 2018 (ranked 24th in 2017)[KPI] Reduce the administrative costs in priority areas * by 20% or more by March
2020.
(*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%.).
(2) New specific measures to be taken
The paradigm of public services is undergoing a shift from the legacy system by operations
or organization to the mechanism in which various services on the cloud that are open basedon loose coupling design philosophy are connected via APIs and processed through mutual
data collaboration, and then they are automated by AI. In addition, one of the emerging global
trends is seen as Civic Tech that the government work together with the private sector todevelop applications using the cloud, rather than the government providing services alone.
Meanwhile, digital transformation in the public administration covers more than simple
digitization of paper-based procedures or improved efficiency through sharing data within theadministrative bodies. Having users as a starting point, it is necessary that the public andprivate sectors, in cooperation, advance digital transformation in which the public
administration and private services mutually connect their data so that the public
administration procedures and the private transactions are linked seamlessly to makecomplicated processes themselves unnecessary. New quality services will be generated
through data cooperation.
Based on these concepts, the government intends to address in sequence the redesigning of
the public administration services linked to private digital services, offered in back offices andother various fields on the cloud, in the fields of child rearing and cooperate proceedings. In
addition, as a foundation of these efforts, it also intends to work on the utilization of AI and
RPA as well as the use of the public cloud at the national and local governments, and make30

Provisional Translation
efforts in the environmental development for data cooperation.
i) Procedure automation by individuals and corporations(ⅰ) Procedure automation by individuals• Reducing the burden of the household with young children is an urgent issue to beaddressed in Japan. As some examples with respect to child rearing – for the alleviationof the burden and the enhancement of convenience involved in the procedures of various
services – it is required to realize that users are informed at the most appropriate timingof various public and private services provided for the period from pregnancy until before
the first school year, such as vaccination, child allowance, insurance, and houseworkservices, which can be applied with the push of a single button. To this end, thegovernment aims to design the service architecture needed for system and informationcooperation, such as services by the private sector, local government’s system, andMynaportal, and review individual administrative procedures and formulate a roadmap
during FY2019. In light of this situation, some local governments will begin providing
specific services in FY2020, and the national government intends to deploy this service
nationwide from FY 2023.
• The government will implement the following to promote a one-stop services for theadministrative procedures for individuals, which are deemed to have significant influenceon the lives of many Japanese citizens.
-With regard to “moving,” the government intends to prepare guidelines for promoting the
introduction of the services by local governments during FY2019. It will also start theservices for application procedures in sequence through the Moving Portal site
(procedures by local governments will be conducted via Mynaportal), while a fullfledged operation will be implemented in FY2020 by further expanding the adoption of
the services by many local governments and private companies and procedures by theprivate sector.
-With regard to “death and inheritance,” local governments plan to prepare guidelines for
introducing a general counter to deal with death-related procedures taken by bereaved
families during FY2019, and aims to start providing the services at the local government
level. In addition, from FY2019, the government intends to undertake a review ofadministrative procedures conducted by bereaved families and a mechanism toelectronically inherit information during decedent’s lifetime, and aims to realize thesystem, which can complete all the necessary procedures online after FY2021.
-With regard to “nursing care,” in FY2018 the government started to provide the service
for reducing burdens related to application procedures carried out by people who are inneed of nursing care or their agent. After FY2019, the government aims to promote the31

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services at many local governments by making effort to realize improved efficiency inthe municipal services related to electronic applications, while also discussing further
initiatives to contribute to the alleviation of the burden by local governments andbusiness operators, such as presenting an application format in electronic application for
local governments during FY2019, and implementing them in sequence.
-With regard to “automobile,” the government intends to develop measures during FY2019
to further expand one-stop services for the procedure related to owning mini vehicles
launched in May 2019, and realize an early implementation of them. It also plans toreview the form of collaboration with the one-stop moving services and other services
and the private use of free space in a vehicle inspection certificate in the form of an IC
card, in order to draw a certain direction to proceed during FY2019.
(ⅱ) Realization of one-stop service for corporation• The government intends to proceed with the online one-stop service for the procedure ofcorporation establishment to realize the business environment at the world’s highest
standard. It will also regularly verify the status of efforts, conduct a review by the end of
FY2021, and take necessary measures, while also working on the following matters.
-One-stop service for the procedure after registration will commence by January 2020,
while the following services will be started by February 2021: one-stop services forall of the procedures including articles of incorporation certificate and corporation
establishment registration, voluntary registration of seal for corporation establishment
registration, an initiative for completing corporation establishment registration within
24 hours covering simultaneous online application of articles of incorporation
certificate nationwide and corporation establishment registration under certain
conditions, and.Launch an online complete service that eliminates the need for
attached documents.At the same time, online registration of the seal will beconsidered.
-The government intends to work on revising the Commercial Registration Act during
FY2019 to realize voluntary seal registration, while also considering the issues andpolicies for generalizing the acquisition and retaining of the future corporate
commercial registration electronic certificate, and reach a conclusion during FY2019.
• As a system response for implementing online and one-stop services for registration,social insurance, and tax filing procedures in cases of changes in corporate addresses
and changes in executive officers, the use of one-stop service through Mynaportal API
is planned to start during FY2020.
• The government will conduct the following initiatives to alleviate the burden of SMEs.
-Regarding the procedures of social insurances at the time of recruitment and retirement,

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Provisional Translation
the government works to realize early collaboration with Mynaportal API and aims
to introduce the ID and password method using a Corporate Authentification Systemfrom April 2020.
-The government intends to start operating a subsidy request system with the ID andpassword method using a common authentication infrastructure for companies during
FY2019 using subsidies for major SMEs, and aims to introduce subsidies associatedwith ministries and agencies and voluntary local governments from April 2020.
• For social insurance and tax filing procedures accompanying the life events of employees,
online one-stop services using Mynaportal API will be started roughly from November
2020 and subjected procedures will be gradually expanded. In addition, procedures
requiring Labor and Social Security Attorney’s

electronic signature will also be

included in the service during FY2020 so that the procedure can be carried out throughMynaportal.
(ⅲ) Digitization and automation of tax and social insurance procedure• From the year-end tax adjustment and income tax return filed in 2020, batch acquisitionof life insurance premium reduction certificate,etc and input and attachment to various
kinds of tax returns will be automated through data linkage using Mynaportal. With
regard to the said certificate issued by insurance companies,etc, it will be electronicallyissued, in principle, depending on the relevant system response situations.
• Concerning the automation of tax and social insurance procedures, the government
intends to start using the system for a new method of submitting information regarding
the submission of legal documents pertaining to financial institutions held by companies
using cloud computing after FY2021 to reduce the burden of office work at business
operators. For other procedures that are expected to receive a reduction of burden by
Japanese citizens and business operators, it also plans to consider the expansion of theitems covered after FY2022 and reach a conclusion during FY2020. Furthermore, thegovernment will also discuss issues and measures such as those related to pensionrelated documents etc for the digitization of the notice of decision from administrative
bodies to business operators, and aim to address them in order after FY2021 whileconsidering the expansion of use.
• With regard to the notification of the Special Levy Amount(for tax payers), while giving
attention to obtaining the understanding of local governments and special collection
agents in the process to consider, the government intends to conduct a review for therealization of electronic notification in all municipalities and promptly reach aconclusion.
• The government plans to conduct the following initiatives regarding cashless payment of33

Provisional Translation
taxes and public funds.
-With respect to the promotion of electronic filing of local taxes, the common

local

tax payment system for corporate inhabitans taxes and other taxes will start operationfrom October 2019. At the same time, while giving attention to obtaining theunderstanding of local government, issues and countermeasures regarding further
utilization of the system, including its expansion to tax items with many requests from
taxpayers, will be considered to conclude a road map for its implementation. (Repeat)-Regarding tax, government funds receipt, and payment,at the"Workshop on
Streamlining Payments of Taxes and Public Charges",which is jointly supported byfinancial institutions, related ministries and agencies, local governments, and others,
we will examine the issues of improving convenience and efficiency using IT,anddraw conclusions during FY 2019. (Repeat)• For the realization of making back-office operations more efficient by digitizing andautomating accounting and tax filing procedures of business operators, the government
plans to further advance online electronic storage of billing, payment, receipt andrelevant documents, as well as electronic tax return and tax payment, including thepromotion of SME’s use of online banking and electronic invoice, and receipts. It will
also discuss issues and measures for promoting SMEs shift to become a smart businessand reach a conclusion during FY2019.
(ⅳ) Strengthening of the centralized project management of information system related
budget• The government intends to partially start the project management, which is conscious ofBusiness Process Re-engineering (BPR) with the perspective of services throughout theyear concerning the government information system under the Cabinet Secretariat from
FY2019, and expand it in sequence. From FY2020, it will also utilize cloud services andother services, and sequentially start a centralized request and accounting of budget related
to the development and operation of digital infrastructure in order to advance the building
and utilization of systems, foundations and functions (digital infrastructure) for the shared
government-wide use.
• In the procurement of the government information system, in FY2020 the government
plans to start a trial of procurement and contract methods, which will enable a technicaldialogue with multiple business operators regarding proposed contents prior to concluding
a contract to make contributions to the dynamic, efficient, and effective systemdevelopment.
(ⅴ) Promotion of the spread and use of my number card34

Provisional Translation• The government aims to build a cashless payment foundation for joint use byadministrative services and private-sector services, and enhance cloud services utilizing
the individual authentication function of My Number cards from the standpoint ofextending the use of My Number cards, while rigorously protecting personal
information, as a shared national platform for Society 5.0.
Specifically, it hopes to utilize the platform for My Key that contains a user 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 cashlesspurchases, and plans to consider exchanges with private-sector points in the future.
Through these initiatives, the government will allow use of local public entity points inlocal mobility assistance, shopping assistance, care support, and other applications andfacilitate policies that contribute to stimulation of local shopping districts.
Furthermore, the government aims to achieve effective policy execution by enabling
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 future vision of supplying child-rearing assistance and othercash benefits implemented by the national government and local public entities via
points.
The government plans to review a detailed approach to consumption standardization
measures for the consumption tax hike in light of progress with measures, such asformation of a task force of public- and private-sector members, aimed at achieving afoundation 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 is targeting the full-fledged usage of the My Number card
as a health insurance card in March 2021 with the aim of boosting efficiency of medical
insurance administration and enhancing patient convenience through definite
confirmation of personal identity and insurance qualifications when giving treatment. It
intends to provide sufficient assistance for prompt deployment of reading terminals andsystems 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. It also intends to formulate
specific My Number card acquisition promotion measures by insurance recipients forthe respective insurance providers and promote the acquisition of the My Number cardby national and regional civil servants during FY2019.
• The government envisions almost all residents having My Number cards during FY2022

35

Provisional Translationfrom the perspective of realizing a digital society that is safe, reliable, and highly convenient,
as quickly as possible, and plans to strongly promote the proliferation of My Number cards
by promoting the formulation of My Number card transfer facilitation plans at eachmunicipality, periodically following-up and giving necessary assistance. It also aims to
improve the My Number card convenience and further promote expansion of usage scenes.
The underlying goal is increased utilization of My Number to realize fairness in social
guarantees and enhance the convenience of public administration and operating efficiency.
• Furthermore, the government intends to execute the following measures utilizing My
Number and Mynaportal in sequence to promote the enhancement of the convenience ofthe card and expand its usage scenes: (i) Promotion of online application for the Education
and Training Benefit System by HelloWork Internet Service, simplification of required
documents for application; (ii) Promotion of digitization at universities through Digital
Campus concept, use of My Number card for teacher’s license management; (iii)
Digitization of tax payment procedure (batch acquisition of data required for year-end
adjustment and tax return procedures, automated input and attachment to various
application forms, etc.); (iv) Cooperation with the Construction CareerUp System.
• The government intends to examine technical issues in light of market and technology trends
concerning methods that enable as many residents as possible to use the public personal
identification service inexpensively using a smartphone, including loading of electronic
certificate for user identification on smartphones, by the end of FY2019, and based on the
results it will swiftly take necessary legal and operational measures. Furthermore,installment of My Number functions into smartphones will also be discussed based onnecessary security measures.
ii) Promotion of digital transformation (DX) at administrative bodies(i) Realization of digital first• The government intends to conduct the following initiatives to realize digital first, after
reviewing from the perspective of the regulatory and administrative reforms.
-The government intends to formulate information system development plans (including
online public administration procedures, matters subject to elimination of attacheddocuments and its implementation period) under the Act of Digital Procedures, and a
Cabinet Order and Ministerial Ordinance of the Act within this year.
-In doing so, the government intends to review the issues and promotion measures
regarding the utilization of information and communication technology in public
administrative procedures and private sector procedures related to the national andlocal governments for the full digitization of the administrative services, and set goals
for the alleviation of users’ burden, improved efficiency of the administrative36

Provisional Translation
operation, and the usage rate of online procedures by administrative procedural units.
-Meanwhile, in FY2020, development of the corporate data exchange platform will beadvanced to enable the attachment to financial statements unnecessary.
-Development of information system must follow the guideline group, which serves as
the basis for promoting the digitization of the public administration such as the“guidelines for digital government promotion standard,” and the situation will beannounced at the end of each FY. In particular, it is decided that the government
should develop an environment that enables improved public administrative
procedures, using the services provided by private business operators. For that, when
conducting system collaboration and data collaboration, in principle, API based on
the “API introduction and practice guidebook” and other appropriate guidelines must
be introduced.
-With regard to the certificate of employment to be submitted when applying to a nursery,
the government plans to expand the spreading rate of the standard form, aiming toachieve the target of 70% spreading rate (for the FY2020 entrance) by introducing aform for large cities with high competition rate to complete the preparation of digitalprocedures. It will also consider and prepare a standard format draft for theapplication form for competitive bidding participation qualification , based on thereport by a study group of the Ministry of Internal Affairs and Communications, andreflect it to the electronic application system at local governments by FY2019.
(ⅱ) Further utilization of advanced technology at governmental organizations andagencies• For the improved quality of public administrative services and efficiency of the operations,the national administrative bodies will implement Business Process Re-engineering (BPR)
mainly in the areas with significant influence on the citizens and companies, and thenpromote the introduction of AI and RPA on a preferential basis in the works with whichsuch an introduction is expected to bring more effects such as examinations, research, andenquiry responses.
• The government intends to revise the “Digital Government Execution Plan” during 2019 andarrange basic approaches in the promotion of using AI and RPA based on BPR at thenational administrative bodies, while also clarifying tasks that should be addressed withpriority. In addition, based on the revision of this plan, each ministry and agency will revise
its “Digital Government Medium to Long-Term Plan of Individual Ministries” and clarify
specific procedures of the operations to be prioritized.
• The government plans to advance system improvement from the viewpoint of humanresource support to promote BPR at the ministries and agencies and the use of AI and RPA,

37

Provisional Translationand compile the know-how and issues involved in the accumulation and development ofgood examples as well as the introduction and operation of them.
• The government plans to review the “Basic policy on the use of cloud services in government
information systems” (decided by the liaison conference of Chief Information Officer (CIO)of each ministry on June 7, 2018) in order to ensure consistency with safety evaluation
systems for cloud services, which is scheduled to start operation in autumn 2020. iIn
introducing an information system, the principle of cloud by default at each ministry andagency, which considers the use of public cloud services as the first choice must be clarified
and established.
• For both the public and private sectors to employ cloud services more securely and safely
and to use them continuously, the government intends to conduct demonstrations of asafety evaluation system for cloud services during FY2019 and establish evaluation
criteria, and a system aiming for the start of use at all government organizations andagencies in autumn 2020.
(ⅲ) Further utilization of advanced technology at local governmental organizations andagencies• For the promotion of the secure use of the public cloud by the local governments, technicalrequirements according to operations will be arranged and disseminated promptly. In
addition, based on the national principle of cloud by default and the review results of thesafety evaluation system for cloud services, contents will be added concerning the said
requirements as required.
• The government intends to advance the standardization of municipal information systems,
such as the resident record system and the construction of a standardized model through thecomparison of operations between municipalities from FY2019 for further improving the
local government’s operation and the shared use of ICT systems AI and RPA. At the sametime, the government intends to strongly promote the standardization of AI and assist in the
introduction of RPA, and aims to realize the provision of the standard systems and AI and
RPA services in each administrative area nationwide in the 2020s at the latest, as well as
implementing electronic and paper-free approaches for all procedures at local governments.
• With the participation of a wide range of parties involved, such as local governments,
business operators, and relevant organizations, the government intends to prepare a review
policy of expansion and enhancement of data items that should be collaborated between thecore operation systems concerning standard specifications for regional information
platforms that determine the data collaboration standard of the municipal operation systems
during FY2019, and implement a radical review based on the said policy from FY2020.
• For maximizing the effectiveness of data utilization and providing support for resolving

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regional issues, the government aims to expand the quality, quantity, and regions of regional
informatization advisors during FY2019 by newly commissioning AI and RPA experts andlocal human resources, while also reviewing and improving “local government CIO training”
to become an opportunity for practical learning of AI and RPA.
• For enabling local governments to effectively and efficiently make use of the information
systems utilizing the advanced technology, the government plans to implement a “public
pitch,” which proposes specific systems with a premise of shared use from 2019, based on
the needs of local governments, through the dialogues between multiple local governments
and developers conducted all the way from the designing stage.
• The government plans to start adjusting a marketplace with useful digital services andapplications for the government and citizens centralized in one place, developed by startup
companies and NPOs, from FY2019, and advance its full-fledged introduction after
FY2020, enabling efficient horizontal development of best practices by the local
government.
iii) Realization of the world’s best country for companies to engage their business(ⅰ) Promotion of applying ICT to court proceedings, etc.
• While respecting the autonomous judgment by the judicial branch and considering thediscussions at the Liaison Conference for Relevant Ministries and Agencies on the
promotion of the civil justice system reform, the government tries to implement thefollowing initiatives in stages with the aim to realize full digitization of court
proceedings on civil litigation.
-Under the current law, the government expects the judicial branch to swiftly start new
operations to arrange issues and evidence actively using ICT tools, such as web
conferencing at some large-scale courts nationwide and expand courts exercising thesaid new operations nationwide sequentially after FY2020.
-The government will make efforts with a view to consulting the Legislative Council ofthe Ministry of Justice during FY2019 and revising the Code of Civil Procedure
during 2022, with the aim to realize online filing, digitization of the record oflitigation,
electronic payment of fees etc., and online conference without appearance at courts.
The government will consider comprehensive measures with the cooperation of the
judicial branch to ensure the right of access to the courts, particularly by those whoare not familiar with ICT, so they are not harmed due to the digitization of the court
proceedings. Accordingly, the judicial branch will be expected to conduct swift
initiatives aiming for the realization of new systems, while the executive branch willtake necessary measures.
-New operations and systems utilizing ICT will be adopted swiftly in stages based on

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discussions and initiatives for the improvement of the environment of the judicial
branch, while initiatives requiring legal revisions will be adopted sequentially fromaround 2023. The government plans to consider the schedule for adopting new
systems during FY2019.
• As Japan’s business environment develops, which addresses diversification of conflicts,
the government intends to review the utilization expansion and functional enhancementof Alternative Dispute Resolution (ADR) and other civil dispute resolutions using IT andAI, such as Online Dispute Resolution (ODR), and draw a conclusion on the basic policy
during FY2019.
(ⅱ) Digitalization of port logistics• The government establish a “Port Data Collaboration Platform” by 2020. This Platform
digitize paper-based transactions related to port logistics among private companies andadministrative agencies. The information of port facilities is also digitized. Throughfacilitating the use of electronic information, the produntivity of port logistics should be
improved.
(ⅲ) Digitization of real estate related information and servicesa) Elimination of attached documents (certificate of registered seal of the seller) at thetime of registration• During FY2019, attachment of corporate certificate of registered seal between different
Legal Affairs Bureaus will be made unnecessary for the real property registration
procedure.
b) Promotion of online real estate transaction• Ensuring the security of real estate transaction as the major premise, for the promotion of
online transaction of real estate transaction, the government intends to flexibly advancesystem infrastructure development compatible with new technology, while considering toincorporate demonstration experiment processes, adopt explanation of important mattersusing IT in selling and buying, and digitize explanatory documentation of important mattersin leasing, and will reach a conclusion during FY2019.
c) Open information related to real estate• For the promotion of further utilization of information separately possessed by the public
and private sectors, the government intends to carry out discussions on the transaction
prices and usage conditions of buildings and open information concerning the regional
security and infrastructure, and reach a conclusion during FY2019.
d) Realization of information infrastructure regarding land
• The government intends to discuss advanced cooperation between real property registry,40

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family register book, fixed asset tax ledger, Croplandledger, and forest land ledger torealize information infrastructure regarding land, and reach a conclusion about thedirection going forward during FY2019.
(ⅳ) Development of a legal framework of movable collateral and its registration system• Based on the needs of companies and financial institutions, the government intends toreview the development of a legal framework of movable collateral and its registration
system, taking future legal amendments into consideration, while also continuing surveys
on the needs in practical operations and discussions concerning relevant legal issues started
in March 2019. The intermediate review of discussions will be carried out during FY2019.

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6. Next Generation Infrastructure(1) Major progress of KPI[KPI] Goal of 20% improvement in construction site productivity by FY 2025
[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 acertain level of technological capability, to reach 20% by around 2020 & 100%by 2030.
[KPI] By 2020, Tokyo to come within the top 3 in city comprehensive strength rankings.
⇒ 2018: 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
business that utilize the concession-method.
⇒ FY 2013-FY 2017 business scale• PPP/PFI business: About 13.8 trillion yen• PFI business using the concession-method: About 5.7 trillion yen(2) New specific measures to be takenⅰ ) Improvement of productivity in the infrastructure field, and resolving of issues
related to disaster prevention, transportation, logistics and cities
In order to strengthen Japan's international competitiveness and promote economic
growth, Japan will strengthen industrial infrastructure functions through the prompt
deployment and utilization of high-speed traffic networks such as high-standard trunk
highways, projected Shinkansen lines and Linear Chuo Shinkansen, international hub
airports and international container/bulk strategic ports, as well as develop a robust
infrastructure that is resilient to disasters so that the industrial supply chain will not beinterrupted. In addition, Japan will advance "smart investment and smart use" strategic
infrastructure management and compact plus network efforts by utilizing new technologies
from the Fourth Industrial Revolution, such as AI, IoT, robots, big data and autonomous
driving. It will also promote efforts to maximize infrastructure stock effects, such as byimproving productivity, increasing convenience and encouraging private sector investment.
(i) Development and maintenance of infrastructure• 10 i-Construction model offices around the country will intensively utilize newtechnologies such as 3-dimensional data and ICT to handle tasks ranging from surveying

42

Provisional Translation& inspections to maintenance management, so as to to put into effect i-Construction todrive forward the full utilization of ICT in the construction process. In addition, during
2019 the introduction of ICT to ground improvement engineering and ancillary structure
installation engineering will be expanded and "ICT-Full use construction" using ICT will
be implemented at 53 i-Construction support offices across the country for the majority
of construction work. Also, ICT will be disseminated to and expanded among local
public entities and local companies.
• A roadmap will be created during FY 2019 to link together infrastructure and data
platforms that consolidate and share structure data and ground data obtained in the entire
construction production process from surveying & inspection to design, construction
and maintenance with data platforms for traffic & distribution, weather and disaster
information. The aim is to establish an integrated data platform for land and traffic thatwill facilitate cyberspace simulations by FY 2022.
• Prompt support for computerization of certification application by designatedcertification inspection organizations handling most of the certification applications will
be supported to encourage the dissemination of BIM building certification applications.
Also, computerization at local public entities that serve as designated administrative
agencies will be studied. In order to strategically promote the introduction of BIM,
during FY 2019 sites will be established for consultation with a wide range ofstakeholders such as national and local public entities, builders, designers and building
owners, and the policies and roles shared between the public and private sectors given
challenging issues, timetables and further actions will be organized.
• An ICT database system that works in conjunction with tablets and other devices tocentrally manage data, such as inspections and maintenance repair data, and that will
upgrade and streamline the infrastructure maintenance management work of local public
entities, will be introduced nationwide utilizing local financial measures. In addition,
Japan will standardize data items at each ministry responsible for infrastructure andfacilitate an environment for shared use, such as by using cloud computing.
• In order to steadily advance the maintenance cycle, Japan will accelerate the field
implementation of new technologies, such as in regard to bridge inspections, through aframework of having companies that place orders approve the use of new technologies,
such as the drones proposed by the inspection service contractors. This will be based on
the inspection procedures for bridges and other infrastructure that were revised in
February 2019 and a performance catalog that organizes new technologies identified inprevious field demonstrations. Similarly, in other infrastructure fields, Japan is quickly
proceeding to, for example, revise procedures that incorporate the results of field tests.
• Also, Japan will undertake horizontal development of efforts and implementation cases

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using local financial measures when local public entities introduce new technologies
recommended by ministries responsible for infrastructure, as well as enhance target
infrastructure fields and new technologies, such as by establishing procedures in each
infrastructure ministry.
• For sewerage facilities such as pipelines buried underground, Japan will implement
cloud storage of operational information gathered from sensors installed in manholes,
detection of abnormal locations by AI, failure prediction and remote-control
demonstration projects from FY 2019 and formulate guidelines by FY 2021.
• For local public entities that have a shortage of technical staff, a system will be studied
that can proactively recruit mid-career personnel capable of becoming have an
immediate effect in infrastructure management that includes the introduction of newtechnologies and data utilization, and a conclusion will be reached in FY 2019. A prompt
examination will also be made of the qualification system for engineers performing
inspections and the certification system for new technologies.
• Japan will study the reasons why the use of PPP/PFI is not progressing with respect toinfrastructure that has difficulty generating cash flow along with effective dissemination
measures. Also, the introduction of private sector technology and know-how through useof multi-year and wide-area package contracts will be encouraged.
(ⅱ) Disaster prevention, disaster response• Based on the experience of heavy rain in July 2018, low-cost crisis management-typewater indicators and simple river surveillance cameras will be promptly deployednationwide to enable residents to choose their own action to save lives and information
content will be enhanced to convey in an easy-to-understand manner the impending
situation using real-time water level indicators and live images. Also, effective
information dissemination and transmission efforts in which government administration
offices and various media cooperate will proceed, such as through the use of SNS andsmartphone applications.
• Detailed flood, storm surge and high wave forecast information utilizing crisis
management-type water level indicators will be provided by FY 2020. In addition, wherelabor shortages and the safety of observers are problems, equipment development andon-site demonstrationd will be implemented in FY 2019 in order to fully automate by
FY 2021 through innovative river technology projects for flow rate monitoring.
• Meso-ensemble weather forecasting announcements and AI will be used from 2019 tocope with increased flooding risk due to more powerful typhoons. Also, evaluations of
the applicability of predicted rainfall to dam operations at test dams will begin in FY
2020 in order to implement technologies to maximize the flood control capability of44

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dams through integrated management of multiple existing dams by FY 2023.
• The government aims to implement the introduction of automated inspection using
drones in the maintenance management of erosion management facilities located in asteep mountainous area and requiring high-place work, and in disaster responses such as
landslide in FY2020 by revising inspection procedures according to demonstration
experiments. (Repeat)• In order to make possible recovery from landslides and other disasters through theremote operation of construction machinery from locations far from the afflicted area
using 5G, a demonstration test will be started in FY 2019, with a goal of implementing
5G communications in coverage areas from around the summer of 2020.
• A system developed by a strategic innovation creation program will be used in FY 2019
to facilitate creation of a database of reservoirs nationwide, sharing maintenancemanagement information and water level data and providing crisis management
information to local governments and reservoir managers.
(ⅲ) Resolving transportation issues
In addition to promoting the Japanese version of MaaS by implementing open data andsmart mobility challenges, utilizing new mobility and autonomous driving technologies
and examining necessary systems, there will be other initiatives as described below.
• The government will implement demonstrations dealing with regional issues in relation
to green slow mobility is law speed electric mobility that supports last one miletransportation, and aims to implement green slow mobility in 50 areas by FY2020 while
conducting demonstration experiments according to local issues. (Repeat)• To rebuild road space from the vehicle centered to people centered space including theutilization of new mobility, the government intends to examine the necessity of therevision of laws and regulations during FY2019 and create a roadmap. (Repeat)• A demonstration test will be launched in summer 2019 to efficiently collect walking spacedata using sensing technology for the purpose of eliminating step height differentials
along walkways that prove troublesome for users of baby strollers near nursery schools,
train stations and other locations, and guidelines will be formulated by FY 2020.
• In FY 2019 around 20 demonstration test projects will be implemented in order to promote
the creation of new services that combine traffic data, such as vehicle speed and route
data from ETC 2.0 systems, and private data.
• Concerning truck platooning, while advancing the development of following vehicle
manned platooning for market launch and data verification, he government intends to
conduct demonstrations of following vehicle manned platooning on a highway by theend of FY2020. Additionally, in anticipation of realizing truck platooning on a highway,45

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stability and efficiency of the double network connecting the major three metropolitan
areas will be further enhanced by upgrading the number of lanes at the Shin-Tomei
Expressway and the Shin-Meishin Expressway to six, and practical measures for the useof highway infrastructure such as installing rest facilities and disconnection base mainly
at the Shin-Tomei Expressway will be considered. (Repeat)• Maintenance will be performed on the three major metropolitan area ring roads, including
the Three Ring Expressways of the Tokyo capitol region, in order to maximize the stock
effect of the road network, to achieve quick and smooth distribution and reduce traffic
congestion. In central western Japan, a new toll system will be introduced by the end of
FY 2020 in conjuction with the opening of all lanes of the Mei-Nikan Expressway.
• In order to deal with the expansion of aviation demand and shortage of providers, and forthe implementation of labor saving technology by 2020, the government will
significantly expand the targeted automated driving vehicles for which demonstration
has started within the restricted areas of the airport, while installing necessary equipment
for charging and location estimation as well as conducting necessary revisions ofbusiness guidelines within the airport. (Repeat)• In addition to high-speed transportation networks such as high-standard trunk highways
and the Linear Chuo Shinkansen, the current low-interest rate conditions will be utilized
to facilitate prompt development of major urban railway networks and distribution
facilities that access international airports, smaller airports and other key hubs. The
necessary groundwork for accomplishing this will be considered by the end of FY 2019.
(ⅳ) Resolving logistics issues• A council will be formed during FY2019 with the aim to standardize slips, exterior
packages, and data specification to promote joint logistics beyond the boundary of eachcompany in response to labor shortage at logistics business operators, while an action
plan will be formulated and demonstration experiments for sharing logistics andcommercial distribution data with the entire supply chain will be started during 2019.
(Repeat)• Aiming to reduce the re-delivery rate to approximately 13% during FY2020 (15% in
FY2018), relevant issues will be reviewed and measures will be considered regarding
the delivery method to a place designated by users to allow further diversification ofreceiving methods, and a conclusion will be reached during 2019. (Repeat)• In order to reduce the average number of examination days for special vehicle permits
from the current period of around one month to around ten days by 2020, thecomputerization of road structure utilizing sensing technology etc. will be accelerated in
FY 2019 and zones will be designated where applications for permission is unnecessary46

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for international marine containers (40 feet tall) operating along important distribution
routes.
• To strengthen the international competitiveness of the maritime industry, which serves tosupport regional employment and economies, safety design guidelines for "autonomous
shipping vessels" will be formulated during FY 2019 to help realize autonomous vessel
operations by 2025.
• In order to realize an AI terminal with the world's highest level of productivity, ademonstration test project related to the automation of container damage checking using
AI and operational support for cargo handling equipment will begin in FY 2019, andneeded systems will be created by 2022.
• Efforts will be made to establish LNG bunkering facilities at two locations in Japan andachieve international standardization of safety standards necessary for bunkering incooperation with Singapore and other countries by FY 2020.
(ⅴ) Enhancing the competitiveness of cities• Efforts will be accelerated to position smart cities that use new technology and data suchas AI and IoT as the basic concept of urban development for the purpose of achieving
Society 5.0, a strong fusion of cyberspace and physical space. From FY 2019, a base willbe established, supported by know-how and human resources, for cross-cutting efforts
in areas such as traffic, disaster prevention, environment and tourism throughcooperation between local governments, the private sector, universities and otherinstitutions, and successful smart city models will be created and horizontally deployedthrough hosting model projects, creating public-private partnership platforms andformulating guidelines.
• In remote islands with limited area and such problems as insufficient/inconvenient public
transportation, lifeline support, education, medical treatment and underutilized tourism
resources, solutions to common problems in less favored locations will be obtained andresults-based horizontal development undertaken by making pioneering efforts toward
the realization of smart islands that introduce advanced technologies such as analysis ofhuman flow data, drone distribution and high-resolution image transmission.
• To accelerate Compact Plus Network activities, measures such as promoting the locationof facilities providing convenient living in residence guidance zones under urban facility
location plans and restricting the location of houses in hazardous districts will be
investigated and necessary system measures will be taken in 2020.
• To create comfortable walking areas that encourage encounters and exchanges that
stimulate new businesses and innovations, new mechanisms for restoring and utilizing
valuable urban space will be introduced by FY 2020, public-private councils in unit areas47

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will be instituted and urban development will be intensively promoted.
• In order to promote green infrastructure efforts to encourage creation of urban spaces thatutilize greenery and water and attract new investment and human resources, a publicprivate partnership platform will be built and leading projects will be supported insummer 2019, and land-use measures will be amended as necessary during FY 2019.
• In order to promote appropriate real estate investment, including the perspective of ESG,
system reforms for securing greater governance in real estate specified joint enterprises
will be considered and necessary systematic measures will be taken in FY 2020. Also, asurvey of the real estate management business for rental housing will be conducted byabout summer 2019 and its applicability will be studied.
• Ideal ways of handling public-private data linkages of real estate information will be
examined and in FY 2020 the number of real estate market indicators will be expanded,such as the volume of existing home transactions. Also, investment in local areas will be
encouraged by, for example, enhancing dissemination of regional land value information.
• To make effective use of condomium stock and condominus building sites, mechanisms
to promote appropriate maintenance and management by management associations andmechanisms to facilitate renewal by rebuilding and sales will be considered, the direction
to take will be coordinated in 2019 and necessary measures will be instituted.
• A new legal system will be smoothly implemented based on, for example, the "Basic
policy on promotion of measures such as the properties of unknown owners" (a June 14,
2019 decision made at a Japanese ministerial conference for the purpose of promoting
land-use measures, such as collecting information on properties of unknown owners),
which is intended to eliminate the properties of unknown owners and promote effective
land utilization basic policy. Also, system revisions will be enacted by 2020 in regard tomeasures for smoothly and rapidly proceeding with securing appropriate land use &management and clarifying property ownership, mechanisms for preventing occurrencesof unknown land ownership and mechanisms for smoothly and appropriately using theproperites of unknown owners, and to set deadlines for policy promotion. In addition,
new utilization measures for Japan's property parcel boundary demarcation system will
be considered, such as allowing local governments and local organizations that conduct
land ownership surveys to apply for parcel boundary demarcations, in order to proceedwith the smooth operation of inheritance documents record-keeping systems andsupporting the maintenance of property registry maps.
• High-demand information, such as forecasts of meteorological phenomena and global
warming, will be made available in cloud computing services during 2019, so thatanalysis based on AI utilization of meteorological data can be easily performed for urban
management and industrial activities. Also, mechanisms for training and securing48

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weather engineers who will make recommendations or advise on data utilization will beconsidered with support from the Weather Business Consortium and final conclusions
will be reached during FY 2019.
ⅱ) Accelerating the introduction of PPP/PFI approaches
Achieving numerical goals will be promoted in regard to the "PPP/PFI Promotion Action
Plan (2019 revised version)" (decided by the Office of the Cabinent's Public Private
Partnership/Private Finance Initiative Promotion Office on June 21, 2019) concession-stylepriority projects for airports, water supplies, sewerage, roads, educational facilities, public
housing, terminal facilities for passenger ships, MICE facilities, public hydroelectric power
and industrial waterworks.
Results-based private-sector consignment contracts methods, which are mechanisms forachieving solutions to social problems and improving the efficiency of government
administration by utilizing private sector know-how and other knowledge sources while
containing the financial cost of government administration, will be used and expanded.
(i) Promotion of efforts in concession-style priority projects• In order to achieve continual improvement of the operating rights system, such as in regard
to public facilities, operating rights guidelines will undergo review based on the results ofinterviews with domestic and foreign companies that have operating rights in public andother kinds of facilities. Also, the latest efforts in developed countries (utilization methods,
fields of utilization, etc.) will be comprehensively gathered and documented, the differences
between global trends and efforts in Japan will be ascertained and necessary furture
measures in Japan will be organized.
• Easy-to-understand explanation materials on operating rights system for public facilities willbe created and used based on the past results of utilization of the operating rights systemfor public and other facilities in Japan and foreign country examples.
• The relevant ministries and agencies will assemble their suggestions for Japan in regard torights that are similar to public facility operating rights in other countries, based on casestudies of tax exemption measures, such as corporate taxes on the holding entity. Based on
this, the Cabinet Office will confirm the needs of private enterprise operators within 2019and determine the necessity of system development.
(ⅱ) Promotion of the spread of Pay for Success contract format• The Cabinet Office, in cooperation with relevant ministries and agencies, will make specificaction plans from 2019 through FY 2022 that focus on priority areas for advancing Pay for
Success, which are three fields in which Japan is already formulating concrete initatives:

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medical care/healthcare, long-term care and preventing crime recidivism. The relevant
government agencies will promote the diffusion of Pay for Success in the three key areas
based on the action plan. The results will be further expanded horizontally outside the threepriority areas.
• Based on input from local government officials, private business operators, evaluation
experts and others engaged in leading practices, the action plan will establish concrete
procedures for preparing guidelines related to results indicators, evaluation methods,
payment terms etc. and formats for how to construct evidence to serve as the basis forresults-based evaluations.
• The Cabinet Office will examine and collect leading examples in Japan and overseas during
FY 2019. Based on these efforts, it will build a website to disseminate and provide education
about Pay for Success.
• The Cabinet Office will conduct surveys to support the introduction of Pay for Success andcollect examples, so as to boost creation of further examples by local governments in across-cutting manner.
• The Ministry of Health, Labor and Welfare will consider the introduction of Pay for Successin existing institutional frameworks, such as in regard to grants and subsidies in the fieldsof medical care/health care and nursing care. At the same time, the Ministry will consider
measures to promote the conclusion of consignment contracts that cover multiple fiscal
years.
• The Cabinet Office will examine subsidy mechanisms for Pay for Success during FY 2019
after studying overseas cases such as UK/US outcome funds.

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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 anddistribution sectors, which is the final stage of power system reforms.
⇒ An organization for cross-regional coordination of transmission operators wascreated 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 next-generation
vehicles by 2030.
⇒ Next-generation vehicles account for 36.7% of new car sales (FY 2017)[KPI] Have about 160 commercial hydrogen stations by FY 2020, 320 stations by 2025.
⇒103 stations are already operating (end March 2019)(2) New specific measures to be taken
Proclaim a decarbonized society as an ultimate goal based on "The Long-term
Strategy under the Paris Agreement (Cabinet decision on June 11, 2019)" that wasformulated to take advantage of Japan's presidency of the 2019 G20 summit, Japan aims
to accomplish this goal ambitiously as early as possible in the second half of this century.
Also, Japan will boldly work to reduce GHGs emissions by 80% by 2050, realize avirtuous cycle of environment and growth through business-led disruptive innovation,
generate a paradigm shift in global environmental policy and promote domestic andinternational initiatives. Investment in energy and the environment will be expanded andthe results of innovation will be used to promote the advancement of energy andenvironmental measures and related industries.
ⅰ) Promotion of innovation•Formulate a Progressive Environment Innovation Strategy during 2019 that includes a
specific detailed road map for reducing hydrogen production costs to less than one-tenthof the current level by 2050 and commercialization of CCU technology, for effective useof utilize carbon dioxide such as, artificial photosynthesis.
• In autumn 2019 Japan will host RD20 (Research and Development 20 for clean energy
technologies), in collaboration with ICEF (Innovation for Cool Earth Forum), to bring
together leaders from G20 member country research institutes in order to apply global
wisdom to accelerating innovation in the clean energy field.
• In order to realize the hydrogen society, establish mass production technology and executecomprehensive regulatory reform in order to significantly reduce costs for the full-scale51

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implementation period starting from 2025, in accordance with the strategic road map forhydrogen and fuel cells and other guiding measures.
• Make good use of the Greenhouse gases Observing SATellite-2 (GOSAT-2) to estimate
greenhouse gas emissions from human activities, and contribute to enhancing thetransparency of climate change countermeasures introduced in each country.
• Promote decarbonization of information and communication field through development
and demonstrations of data server power supplies etc. that minimize power loss byemploying gallium nitride (GaN) based semiconductors.
• Promote R&D and test demonstrations of new materials, such as cellulose nanofibers, inorder to facilitate lighter weight automobiles and improve the heat insulation
performance of building materials.
• Promote R&D and international collaboration on Carbon Recycling that can reduce
emissions to the atmosphere in an economically rational manner, by treating CO2 as aresource and using it as a fuel and raw material.
• Encourage the dissemination of energy management using digital technology and, in linewith establishing innovative energy management systems (Reform 2020 projects),
expand useable energy resources, hold demonstration tests of advances in control
technology and promote system maintenance for the purpose of commercializing avirtual power plant in FY 2021.
ⅱ) Promotion of green finance• To promote constructive dialogue through the disclosure of corporate information andtransparency of the methods of investors and evaluation institutions, further encourage
the spread, penetration and utilization of Guidance for Integrated Corporate Disclosure
and Company-Investor Dialogue for Collaborative Value Creation in Japan and overseas
through international information dissemination.
• Actively boost the efforts of companies. Seeing SDGs as opportunities and exploring
economic rationality and link those efforts to investment. Based on this viewpoint, in
addition to promoting the incorporation of SDGs into company business strategiesthe
Guide for SDGs Business Management guides, which summarize the perspectives andmessages of companies doing advanced work on SDGs, will be disseminated andcommunicated widely in Japan and internationally via outreach to the G20 and otheropportunities.
• Promote the spread of ESG regional finance through such support measures as loans basedon business evaluations that take into account ESG factors at regional financial
institutions. Also, improve ESG financial literacy by training ESG financial experts andmaintain and generate momentum for ESG finance by financial institutions etc. through52

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ESG Finance High-Level Panel.
• In order to disclose information on corporate climate change related risks andopportunities and to promote dialogue between operating companies, financial
institutions and other busineses, the TCFD Consortium inaugurated in May 2019 in
response to a report by Task Force on Climate-related Financial Disclosures (TCFD), an
organization established by the Financial Stability Board (FSB), will formulate guidanceon green investment for financial institutions and revise TCFD guidance (guidance on
climate-related financial information disclosures). The full-scale operation ofenvironmental information disclosure services is set for FY 2021. Also, support will be
expanded for companies responding to scenario analysis in line with TCFD
recommendations and a guide will be created in FY 2019 to help companies formulate
decarbonization management strategies using knowledge gained from providing support.
In addition, in order to move toward a virtuous circle of the environment and growth,
information will be disseminated internationally at the TCFD summit scheduled forautumn 2019.
• Promote green bond issuance and establish a green finance website to facilitiate changes
in corporate behavior and business through ESG finance. In addition, support theconstruction and commercialization of project schemes that incorporate environmental
considerations into decisions on investments decisions and loans.
ⅲ) Business-led global expansion and international cooperation• Create new businesses by leveraging Japan's strengths in technology, promoteinternational development of technologies and products with high levels ofenvironmental performance and have Japan lead the world as much as possible incontributing to the reduction of global emissions.
• Working with partner countries, contribute to the realization of a global-scaledecarbonized society by creating markets for decarbonized products, services andtechnologies suited to those partner countries and spurring innovation (co-innovation).
• Japan will take the lead in setting up a framework in which ASEAN countries cooperatewith the public and private sectors in order to spread the results of innovation to theworld through business environment improvements and market creation.
• Based on the experience of the Joint Crediting Mechanism (JCM), take the initiative indeveloping international rules and create an appropriate framework for utilizing marketbased mechanisms.
• Develop a road map during FY 2019 for achieving sustainable development ofinternational maritime transport and zero greenhouse gas emissions and begin
implementing it at an early stage, as well as establish a new international system to53

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promote switching to energy-saving vessels within five years.
• Structure world leading low-GWP and non-fluorocarbon refrigerant technologies to be
used instead of HFCs and reliable fluorocarbons recovery schemes, and promote theirinternational application.
• Support export of environmental infrastructure in such fields as waste treatment, recycling
and domestic wastewater treatment and support system construction and technology
introduction in the accepting countries.
ⅳ) Efforts in the energy field• While utilizing market mechanisms such as development & activation of non-fossil fuelpricing transactions including post-FIT energy sources from FY 2019 and creating
capacity markets and supply & demand adjustment markets possibily by FY 2021,
design and build a system for the technology development of and investment in energy
conversion and decarbonization.
• In order to make make renewable energy the main energy source as well as strengthen
cost competitiveness & industrial competitiveness and integrate renewal energy into theenergy market as a self-supporting energy source, proceed with a fundamental review ofthe fixed-price purchase system. Also, promote investment environment improvements,
such as creation of a new system for the base ports that are essential for offshore windpower generation, and create technology development and safety guidelines forovercoming location restrictions. Encourage innovative technology developments so as
to support Japanese companies that have a technological edge in the renewable energy
field or other energy fields. In addition, in order to overcome general system constraints,
at first make full use of existing systems.
• Strengthen local revitalization and resilience through genuine local energy production for
local consumption in cooperation with local governments and through the introductionof renewable energy in ways that synergize with areas that have specific local renewableenergy sources such as offshore wind power generation or geothermal power generation.
• In order to both toughen the power grid to make it responsive to large-scale disasters andintroduce a large volume of renewable energy, as well as to respond to new technologies
such as IoT and AI, promote power network reforms, including upgrading interregional
interconnection lines and system improvements, and establish a mechanism for securing
power generation investment together with the development of necessary supply
capacity and coordination capabilities. In addition, promote high-performance/low-coststorage technologies, such as storage batteries and hydrogen, and the development andtesting of next-generation power control technology.
• In order to expand and revitalize the movement toward hydrogen use in the world,

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strengthen international cooperation on hydrogen through actions at such venues as The
Hydrogen Ministerial Meetings.
• Promote efficient use of energyby businesses through cooperation among multiple
operators,supporting the efficient operation of facilities via use of IoT and AI, andestablishment of a system that links regulation and support measures while setting goals
based on international and other standards regardingthe energy consumption per unit of
GDP in each industry.
.
•

Disseminate self-consumption-type ZEHs by 2030 to achieve equivalence to ZEH/ZEB
on average for new houses and buildings.At the same time, new ZEH and ZEB models
based on community cooperation will be studied.

• In the case of nuclear power, promote safety as the first priority. While working to reestablish social trust through measures to improve disaster-prevention measures andvoluntary safety upgrades, start strengthening human resources, technology and theindustrial base, advocate for nuclear power plants with excellent levels of safety, develop
technology that resolves backend problems including decommissioning and support
human resource development and international collaboration. In addition, promote
future R&D, such as using experimental breeder reactors, high-temperature gas reactors
and other test research reactors.
• Realize and grow a highly flexible and transparent LNG market centered on Asia,
streamline and strengthen financial support for LNG-related projects and formulate
systems & plans as well as develop human resources.
• Start projects for commercialization led by private company sortiums by 2027 andpromote technological development related to methane hydrates etc.
• Strengthen efforts in regard to resource diplomacy and acquiring resource interests inorder to secure a steady and stable supply of mineral resources and energy resources
necessary for manufacturing battery materials.
• Aim to acquire the world's most advanced resource exploration capabilities by utilizing
new geophysical survey vessels and promote the application of IoT and AI technologies
at development sites.
• Strengthen the competitiveness of petroleum refineries so as to upgrade the fuel supply
infrastructure and transition to next-generation solutions, expand overseas to establish a
global fuel supply network, improve productivity by digitizing SS and create new fuelsupply systems.
ⅴ) Efforts in the industry and transportation fields• Promote the establishment of goals consistent with the Paris Agreement that includes

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small and medium-sized enterprises and facilitate wide acceptance in the society toincorporate decarbonization into corporate management.
• Establish a platform to realize the international valuation of Japan's low-carbon products
and to attract investment to companies through visualization of the size of thecontribution to reduction of greenhouse gases through product and other kinds of global
value chains.
• In order to meet the challenge of realizing zero carbon steel through utilizing CO2-freehydrogen as a part of a long-term process, research and development, such as the
COURSE 50 project, will be conducted as the first step.
• In regard to CCUS, host commercial-scale demonstration projects, develop technology,
promote carbon cycle utilization businesses and accelerate efforts toward early social
implementation in line with the "Basic Energy Plan (Cabinet decision on July 3, 2018)"
and the "Basic Environment Plan (Cabinet decision on April 17, 2018)."• Promote R&D and demonstration tests of practical uses of fuel production technology
based on microalgae etc.
• Organize the "Council for Electrified Vehicle Society"by the summer of 2019, proceedwith test demonstrations of the integration of electrifiedvehicles and energy systems andinfrastructure development, and create an automobile & energy integrated society thatutilizes electrified vehicle electricity storage & power supply functions.
• To promote energy saving in the transportation sector, proliferate next-generation vehicles,
create new fuel-efficiency standards, utilize electrified vehicles as commercial vehicles,
promote test demonstrations of new mobility services linked to public transportation anddevelop & commercialize more efficient vehicle storage batteries.
ⅵ) Efforts in regions, life areas, and other environmental protection(i) Creation of regional circulation, symbiotic area, and lifestyle conversion• Support efforts to create Circulating and Ecological Economy that aims to form a selfreliant and decentralized society through use of regional resources in a sustainable
manner, while complementing and supporting each other among regions, in order todevelop energy and environmental industries that revitalize local economies, build
decentralized energy systems using regional renewable energy sources, and continue topromote the Satoyama Initiative internationally.
• Study innovative uses of energy by new forms of business and social systems that utilize
IoT, AI, sharing and digitalization, taking into account a review of energy - efficiency
related systems.
• By integrating behavioral insights (nudge, boost etc.) and advanced technologies such as
IoT, AI etc. (BI-Tech), expand the market for products, services and lifestyle services

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Provisional Translationthat encourage behavioral changes, such as greater environmental awareness, throughwork that aligns with personal values.
• Promote the practical application and commercialization of advanced technologies bybuilding a platform for trading CO2 reduction values derived from the self-consumptionof renewable energy and demonstrate it using blockchain technology.
(ⅱ) Material circulation in regions, etc.
• Based on the "Fundamental Plan for Establishing a Sound Material-Cycle Society(Cabinet decision on June 19, 2018)", efforts will be made to create and disseminate
innovative resource circulation businesses utilizing IoT, AI and other digitaltechnologies, reduce food loss and demonstrate and diffuse unused circulative resources.
• Promote the Circular Economy Challenge Project, which promotes the activities ofcompanies with ambitious goals related to the circular economy, based on theinternationally advocated concept of the circular economy (CE).
• Improve and disseminate the “urban mining” system, by developing advanced recycling
technology such as automatic selection systems utilizingusing AI and robots, and by
utilizing the legacies of the “Tokyo 2020 Medal Project” such as intensified recovery
routes.
• Promote renovation of sewage treatment by planning wide-area and joint treatment use,
utilization of sewage heat, conversion of old-type Johkasou (decentralized domestic
wastewater treatment system handling black water only) and construction ofmunicipality-based Johkasou database system.
• Based on the National Action Plan for Marine Plastic Litter formulated in May 2019 as
well as the Resource Circulation Strategy for Plastics and the "Basic Policy based on the
Act on Promoting the Treatment of Marine Debris (Cabinet decision on May 31, 2019),"
Japan will aim to achieve a world without additional pollution through intensive
collection and appropriate treatment of plastic waste, the 3Rs, innovative developmentof alternative materials such as marine biodegradable plastics, capacity building ofdeveloping countries, and understanding of actual conditions and accumulation ofscientific knowledge.
• Promote the utilization of digital technologies to realize a virtuous circle of promoting
tourism and conserving nature environment in the national parks and World Natural
Heritage Sites.
(ⅲ) Promotion of “The Fukushima Plan for a New Energy Society”• Based on the Fukushima new energy society concept, promote various measures suchas reinforcement of power transmission lines for the purpose of introducing and57

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expanding renewable energy.
• Use CO2 free hydrogen derived from renewable energy (Reform 2020 projects) to
produce hydrogen on a large scale from renewable energy in Fukushima Prefecture, anduse it at the Tokyo 2020 Olympic and Paralympic Games. In preparation for the start ofdemonstration tests from July 2020, promote the steady construction and trial operationof demonstration equipment.
(ⅳ) Promotion of adaptation to climate change• Under the "National Adaptation Plan (Cabinet decision on November 27, 2018)" that isbased on Climate Change Adaptation Act, enhance the information infrastructure
related to adaptation and work with stakeholders to promote adaptation measures related
to agriculture, forestry and fisheries, disaster prevention and heat illness. Also,
adaptation efforts will lead to resilient regions and the development of adaptation
businesses.

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8. Construction of Innovation Ecosystem for Realizing Society(1) Major progress of KPI[KPI] By 2025 triple corporate investment in universities and national research
institutes etc.
⇒ 136.1 billion yen (FY 2017 actual results)[KPI] By FY 2020, combined public-private R&D investment that is 4% or more ofGDP⇒ 3.48% (FY 2017 actual results)[KPI] Create 20 unlisted venture companies (unicorn) or listed venture companies
with more than $1 billion in corporate value or market capitalization by 2023.
(Repeat)[KPI] In the next ten years (ending in 2023), the time required for the acquisition ofright will be halved to an average of 14 months.
⇒ FY 2017 actual average: 14.1 months[KPI] Improveme labor productivity in the manufacturing industry to more than 2%
annually⇒ 2017: 1.9% (2016: 1.8%)[KPI] More than 2% annual improvement in the labor productivity of the
manufacturing industry⇒ 2017: 1.9% (2016: 1.8%)[KPI] By 2020, achieving 80% of companies to collect data at their factories, and 40%of them to link their collected data to solving specific management issues.
⇒ 2018: Each was 58% & 26% (2017: Each was 68% & 22%)
[KPI] In 2020, achieving the size of the domestic robot production in the manufacturing
area to 1.2 trillion yen and in the non-manufacturing areas such as services to
1.2 trillion yen.
⇒ 2017: Manufacturing sector: approx. 900 billiion yen, non-manufacturing: approx.
180 billion yen(2016: Manufacturing sector: approx. 720 billion yen, non-manufacturing: approx.
140 billion yen)

(2) New specific measures to be takenⅰ) Construction of an autonomous innovation ecosystem
With the paradigm shift to Society 5.0 rapidly advancing, creating innovation that cancompete with the world requires mobilizing the power of "production" (namely, large
companies and start-ups), "science" and "government" to focus on open innovation. In

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Japan, the reform of its universities is underway, but industry-academia-government
collaboration remains small and entrepreneurial activity is weak compared to othercountries. In addition, large companies have a management system & organization suited
to the efficient operation of their existing businesses and face the challenge of falling into
self-sufficiency traps and losing flexibility.
Under these circumstances, universities and national research and development
institutions (national research institutes), which are the sources of innovation, will workon innovation creation together with industry based on setting challenges that envision
the future. As for the startups that promote industry revitalization and structural change
and drive the implementation of Society 5.0, the public and private sectors will work as
one to mobilize policies that create and nurture globally active start-ups. In addition, theintroduction of different organizational forms and culture in the form of business
operations that are independent from the main company, and "bilateral management" that
promotes new businesses with new management methods together with existing
businesses will accelerate new management challenges at large companies.
(i) Promotion of open innovation through the cooperation among industry, academia, andgovernmenta) Efforts to integrate industry, academia and government• In 2019, examine a system to effectively carry out large-scale joint research anddevelopment by companies, universities and national research institutes in order topromote social implementation of the research results coming from universities andnational research institutes and to further diversify financial resources.
• The “Leader’s Forum on Promoting the Evolution of Academia for Knowledge Society(PEAKS)" established in FY 2019 brings together university personnel andrepresentatives from industry and government to concretely discuss university
management issues and solutions and share and analyze good cases that lead to thecreation of innovation. In addition, study policies in FY 2019 to make the "Guideline forEnhancing Industry-Academia-Government Collaboration Activities" (Industryacademia-government dialogue on promotion of innovation on November 30, 2016)
more effective.
• Develop a new system by FY 2020 to allow the public and private sectors to work
together to find promising research seed projects and foster young researchers to workon these projects.
• By FY 2020 study creating new industry-academia fusion models and strengthening the
National Institute of Advanced Industrial Science and Technology (AIST) frameworkfor providing support based on the specific technology needs of regions in collaboration

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with public research institutes.
b) Creation and fostering of startups that are active worldwide• Provide intensive support for the formation of urban bases in order to establish a startup ecosystem. Also, strengthen entrepreneurial education with a focus on universities,
world-ranked acceleration functions, support for research and development in fundallocation institutions and the building of networks related to start-up support. In
addition, promote start-up participation in public procurement and the mobility of R&D
personnel. Also, utilize gap funds.
• The J-Startup program will make additional selections until the summer of 2019 in order
to discover local promising startups and startups aiming to tap overseas markets fromthe time they are established (born global), while promoting open innovation with large
companies. Selected companies will see promotion of overseas development incollaboration with government ministries and stronger centralized support, such as
public relations assistance for start-ups with limited management resources. In addition,
in FY 2020 create an environment that aims to hold internationally acclaimed start-up
conferences and domestic start-up related events, known as "Global Venture Summits(provisional name)," as part of the effort to create an eco-system.
• In regard to support for R&D-type start-ups that receive venture capital (VC) or otherfunding commmitments, focus on & strengthen support fields and stages through review
of accredited VC and verification of the cost-effectiveness of previous efforts. Also, aim
in FY 2020 to consider effective support for start-ups that solve social issues or aremarket game changers in advanced technology fields, such as AI, where they can be
expected to be active globally. In addition, work through the Japan Open Innovation
Council (JOIC) to strengthen promotion of open innovation between ventures and large
companies, universities and others, such as holding pitch events focused on universityled ventures.
• In order to promote innovation by SMEs and venture companies so as to be able toconsistently and efficiently support moving from feasibility studies to R&D andcommercialization, evaluate & verify the existing SME technology innovation system(Japanese SBIR system) via the relevant government ministries and reach conclusions
on changes in the direction of this system in 2019. Thereafter, quickly take necessary
measures.
c) Promotion of innovation at large companies• Formulate guidelines for promoting innovation management around the summer of
2019, taking into consideration the movement toward the international standardizationof innovation management systems. Based on these guidelines, encourage information
disclosure at large companies. Also, in cooperation with economic organizations and61

Provisional Translation
market participants, in FY 2019 consider a framework, such as a public offering of stock,in order for large companies that meet the challenge of innovation management to beevaluated by capital markets, and aim for near-future realization.
• In FY 2019, implement a joint survey of business resource utilization based on the
Industrial Competitiveness Enhancement Act. Using the results of the survey and under
the concept of "emphasizing intrinsic motivation and accepting new values," establish
an environment at large companies that brings together business resources that goesbeyond the framework of organizations and fields, such as accepting the use ofmanagement resources, etc. at start-up companies. To accomplish the foregoing, study
the best way of managing company personnel, intellectual property and investments,and formulate necessary measures.
• Support utilization of technology research associations to promote open innovation,such as joint research by large companies and universities, by gathering examples ofrealizing newly created companies using technology research associations along withsuccessful examples of collaboration between companies and universities by the fall of
2019. Also, formulate, disseminate and disseminate guidance that outlines the essentials
of creation and utilization.
• In order to promote investment by private financial institutions, encourage efforts fromFY 2019 to utilize funding practices related to supplying risk money based on theinvestment business of the Development Bank of Japan (DBJ). In addition, to promote
investment in open innovation between large companies and venture companies fromFY 2020, explore financing that uses industrial investment tied to bottlenecks at thestages of growth.
(ⅱ) Higher education and research reforma) Strengthen the university's function as a hub of knowledge and human resources
through university reform• Based on the Fourth Industrial Revolution, the source of added value shifts to"knowledge." The human resources who create "knowledge" and the places that create
added value through exchanges of "knowledge" are of vital importance. Work should bedone on measures to expand the functions of universities and other educational research
institutes, from the viewpoint of having places that create added value functioning asorganizations.
• During FY 2019 formulate a national university governance code for improving theuniversity management environment and explore creating a University Promotion
Corporation (provisional name) system to promote collaboration and sharing offunctions among universities etc. that reaches beyond the framework of national, local

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Provisional Translationand private institutions.
• In regard to the annual allocation of national university operating expense subsidies,
gradually increase the target amount of allocations and range of variation based on
results-specific actual conditions from the FY 2020 budget. Also, by the summer of 2019,
examine objective & common indicators and evaluators that reflect the character of eachfield of academic study and education & research and apply the results of theexamination in FY 2020 or later.
• Regarding national university corporations and national research institutes, examine
necessary measures for correctly evaluating the value of intangible "knowledge,"
reducing the dependency on operating expense subsidies by increasing the proportionof external funding, such as acquiring funds through promotion of large-scale joint
research and expanded donations, and strengthening the financial base. At the same time,
consider the establishment of a mechanism for joint operation of surplus funds atnational universities and the deregulation of tuition fees etc. for foreign students.
b) Enhancement of research capacity• Expand reforms of research "human resources", "funds" and the "environment", under
the auspices of industry-university-government cooperation, in tandem with university
reforms and implement " reforms for the enhancement of research capacity 2019."-Promote well-known examples of graduate-level education as part of industry-academia
collaborations and doctoral program for world-leading innovative and smart.In
addition, review the research funding system such as by exploring extending theappointments of young researchers, alleviating full-time project duties and making it
possible to spend the research representative's personnel expenses from direct expenses,
and make changes from FY 2020 onward.
-Promote the internationalization of universities that includes the horizontal
development of advanced efforts inside and outside the organization toward
establishing global hubs, expand international joint research programs and use
domestic research funds for international joint research. In addition, during FY 2019
examine the strengthening of international and interdisciplinary research systems forthe sustainable development of global research centers.
Focus on and strengthen the support for young researchers and research that
contributes to the cultivation of emerging and convergence field through researchfunding programs such as Grants-in-Aid for Scientific Research and Strategic Basic
Research Programs. Also, strengthen joint usage/ research systems throughglobalization and networking and enhance diverse, challenging and outstanding
research with dual support for fundamental funds and competitive funding.

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Provisional Translation-Strategic utilization of advanced large-scale research facilities, equipment andresearch equipment, creating smart laboratories through utilization of AI and robot
technology, aggressively promote strategic renovation of research facilities and carryout "laboratory reforms" aimed at a research environment appropriate to the era ofSociety 5.0.
• In order to comprehensively and fundamentally strengthen Japan's research capabilities,
formulate a "Stronger R&D & young researchers support comprehensive package”(tenative name) by the end of 2019.
• To promote the use of cross-appointment systems based on professional fields,
proactively disseminate guidance and good practices and encourage various career paths.
In addition, along with other measures to improve the mobility of researchers, undertakea study of the ideal ways of dealing with cross-appointment systems by FY 2020.
• Provide training for women researchers who will be leaders in industry-academia
collaborations in order to ensure diversity at research centers and stimulate innovation
during 2019 and start new efforts to promote activities in society. Also, based on surveys
and analysis of overseas cases, study appropriate work environment improvements andsupport measures by FY 2020 and incorporate study results in new measures.
• Based on the Cross-Ministerial Research and Development Management System (eRad), which manages R&D work data through a competitive funding system, strengthen
the functions of the public funds offering process and expand the scope of managed data
for all public research funding, etc., in order to visualize the relationship between
national research expenses and the output of research papers and patents. Use thisinformation to examine policy, such as more effective ways of distributing funding.
c) Promotion of strategic research and development• Start creating architecture in 2019 that contributes to data linkages across fields andbusinesses for the purpose of realizing smart cities and super cities that serve as places
to demonstrate Society 5.0. Also, study and demonstrate urban OS, standard API anddata structures etc. through intensive government ministry investment in existing
businesses. Further, in anticipation of international standardization, advocate a Global
Smart Cities Alliance at the G20 to promote a common understanding that contributes
to mutual learning between smart cities and sharing and utilization of successful cases.
• Promote challenging R&Dwith the aim of creating disruptive innovation. The Moonshot
R&D system will be launched in the near future under a promotional arrangement thatbrings together all relevant government agencies.
•Promote human resource development, research and development and activities forsocial implementation based on “AI Strategy 2019” (decided by the Integrated
Innovation Strategy Promotion Council on June 11, 2019).

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Provisional Translation• Based on “Bio Strategy 2019” (decided by the Integrated Innovation Strategy Promotion
Council on June 11, 2011), create industry promotion data bases, form internationalbases, host regional demonstration and research projects and encourage visualization of
the value and safety of bio products, along with promoting the realization of new
functional food labeling based on scientific knowledge and the development of aninvestment environment for bio-ventures.
In particular, create important large-scale integrated cohorts 4 & bio banks as personalized
healthcare infrastructure.
Steadily promote the Tohoku Medical Mega bank Project etc. for the cohort of healthy
individualsand seek to build a human data integrated platform while verifying the scalesufficient to support international competitiveness. Also, in regard to the cohort of those
who are ill, incorporate entire genome analysis and strengthen & accelerate related efforts
so that comparative analysis with the cohort of healthy individuals can be performed.
• Focus on and strengthen funding in the main technology areas related to quantum
science and the efforts of national and other research institutes taking into consideration
the study of the “quantum technology innovation strategy” formulated at the end of 2019,
promote international research and development bases and encourage the developmentof quantum technology-related native human resources that includes upgrades to scienceand mathematics education.
• Start early access of the supercomputer"Fugaku" (post "K-computer") from FY 2020 inorder to achieve the creation of results in the near future and promote applications
related to AI and data science. Also, create a flexible use environment for the Science
Information NETwork (SINET) and combine data science and computational sciencebased on a high-performance computing environment to collect, analyze and provide
various real world and real time data utilizing SINET. In addition, open this data tocompanies and promote accelerated industry-academia joint use in anticipation ofSociety 5.0.
• Promote comprehensively those which efforts toward sustainable use of theNorthern Sea Route, R&D addressing global issues such as consideration on a next
research project of Arctic Challenge for Sustainability (ArCS) project and efforts
related to Arctic research vessel, and international cooperation including holding
Arctic Science Ministerial in Japan in 2020.• Promote next-generation synchrotron
radiation facilities through public-private regional partnerships that share the financial
burden.
• FY 2020 fully promote the development & sharing of smart research environments andcutting-edge research infrastructure in order to advance and streamline new materials
4Long-term follow-up studies of health & disease conditions in certain populations.

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development through industry-academia-government collaborations.
• In order to integrate standardization activities from the early stages of R&D, including
in areas of cross-industry fields such as IoT, consider enhancing standard experts'
supports for researchers at the National Institute of Advanced Industrial Science andTechnology (AIST) and strengthening a function of providing consultations to requests
from outside the organization that relates to its research areas by the end of FY 2020.
In addition, share methods and examples of standardization activities, such as the“Standardized Management Guidelines” developed by the New Energy and Industrial
Technology Development Organization (NEDO), among national research institutes incollaboration with relevant government ministries and agencies.
(ⅲ) Intellectual property and standardization strategy• Promote measures to realize a value design society based on an intellectual property
promotion plan.
• In order to accelerate

design for business management and open-innovation creatingsocial impact, promote utilization of "business management design sheet" and the use ofdiagnostic items lists to elucidate the frame of mind required for managers and individuals
engaging in open innovetion.
• In order to promote intellectual property creativity education that fosters the creativity ofchildren and students in primary and secondary education, this year the collection andcreation of teaching materials for newly targeted high schools and other schools will begin
and demonstration lessons utilizing those materials will be held around the country.
• In order to promote the use of trademark rights to strengthen local branding power,
strengthen efforts starting in FY 2019to use regional collective trademarks and at SMEs,
etc. and take measures to shorten the trademark examination period, which tends to be
prolonged as the number of applications increases.
• Study specific measures for strengthening the functions of the intellectual property
litigation system so that intellectual property rights cannot be “profitable for infringers”.
• Regarding the import of counterfeit goods for the purpose of personal use, which has been
seeing a remarkable increase, study the direction to be taken of specific responses andimmediately reach a conclusion, taking into account the damage to right holders etc. andthe operating conditions, including how the system is maintained, in foreign countries.
• To establish a system to prevent the outflow of technology and other important
information in overseas locations, implement development support for trade secretmanagement systems for Japanese companies overseas, such as in Asian countries.
• In regard to pirated editions distributed over the Internet, take comprehensive measures
such as promoting the distribution of legitimate versions, strengthening international

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collaboration & international implementation and studying needed systems.
• In fields such as autonomous driving, sharing economy, smart cities, data exchange
markets, AI and IoT technologies, actively make proposals at the international
standardization organizations in regard to the data architecture that embodies the conceptof Society 5.0.
ⅱ) Next generation industrial system(i) Promotion of data linkage in the supply chain• In order to make the most of the valuable data generated from manufacturing floors, thesystem to distribute data across company boundaries will be established in FY 2019,
cooperating with domestic organizations, companies, and other countries.
• In order to upgrade Japan's “Coordination” throughout the supply chain, EV-related
virtual simulation models will be built in FY 2019 aiming for improved development
efficiency through digitalization of automobile design and development, in addition to thefuel efficiency, heat and movement performance models built by FY 2018.
(ⅱ) Social implementation of robotic technology.
• In order to carry out robot development and introduction in the service field based on theuser's point of view,

forums for robot users and manufacturers to meet will be held in

the fields of facility management, nursing care, and food & drink.

In the forums, issues

with introducing robots will be reviewed, and the best new business models to standardize
business processes, data linkages and communication will be organized in FY 2019.
• In order to broadly train robot developers and robot system integrators,a system ofacademia-industry collaboration to encourage the development of teaching materials, thedispatch of lecturers in cooperation with industry and on-site training will be establishedby the summer of 2020, with a view toward introducing robot education programs inindustrial high schools and technical colleges.
• The government examines the state of national qualification system (skills certification
system) that evaluates the skills of robot system integrators in 2019. Also, in order to raisesocial interest and encourage young people to become robot system integrators or otherrobotics-related professionals, we review the introduction of competitive events using“industrial robots” at World Skills

International in FY 2019.

• In preparation for the World Robot Summit's 2020 event (held at Aichi Sky Expo and the
Fukushima Robot Test Field), an awards competition promoting social implementation
and R&D that brings together the world's robot technology, the rules of the competition
will be published and the recruitment of competition participants will start in the summerof 2019. Also, based on the Fukushima Innovation Coast concept which has the
Fukushima Robot Test Field as one base, the government plans industrial clusters and67

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promote environmental improvements to achieve self-supporting and sustainableindustrial development in cooperation with companies that have advanced overseas andlocal companies.
• In addition to "smart manufacturing support teams" promoting the introduction of IoT
and robots through specialist training and the dispatch of experts, we create "suppliersupport teams" that support autonomous driving technology and new technologies suchas motorization. The government expands support bases for small and medium-sized
manufacturing companies in combination with these teams to about 40 locations
nationwide in FY 2019.
(ⅲ) Expansion of the space business• In connection with the navigation services provided by the quasi-zenith satellite "Michibiki,"make steady progress while also improving efficiency in establishing & improving thefunctions and performance of seven aircraft systems along with developing and maintaining
corresponding ground facilities by around FY 2023. Also, expand use in various fields by,for example, supporting demonstration projects and the proliferation of compatible receivers
and make efforts to expand overseas. In addition, promote the G space project that facilitiates
social implementation of advanced technologies using G space information, centering on the
G space information center. Furthermore, in order to achieve sequential social
implementation of the common infrastructure that can be positioned to a high degree of
accuracy from FY 2020, clarify the specifications for 3D maps consistent with positioningby electronic reference points etc. in the same fiscal year.
• Launch two H3 rockets in FY 2020 and 2021, and launch advanced optical and radar
satellites in FY 2020. Increase the number of information gathering satellites, strengthenfunctional guarantees and develop technical test satellites.
• Undertake full-scale development and improvement of Tellus to provide satellite data inconjuction with data from local public entities. Also, use satellite data in various fields, suchas in regard to expanding the S-Booster business contest to the Asian region.
• With regard to space ventures, expand the supply of risk money, using for example theDevelopment Bank of Japan (DBJ), and enhance overseas investment. Also, full-scale
operation of a specialized human resources platform will start in FY 2019.
• Promote business creation through collaboration between the Japan Aerospace Exploration
Agency (JAXA) and the private sector. In addition, in regard to parts and components forcompetitive small satellites & small rockets, start support for in-orbit demonstrations by FY
2020 based on, for example, using domestic civilian rockets.
• With regard to reducing space debris, rapidly encourage R&D that utilizes the vitality of theprivate sector, and based on the "Future Efforts on Space Debris" (May 31, 2019 agreement

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Provisional Translationof ministers on the Task Force involving relevant ministries related to space debris) compiledin May 2019, study specific efforts along a time axis and participate in discussions of aninternational framework.
• With respect to international space exploration, study a policy on participation in the Lunar
Orbital Platform–Gateway that the United States envisions and make a decision in 2019 incooperation with private operators, from the viewpoint of utilizing Japan's technology
strengths. Also, promote space exploration projects such as to the moon and Mars.
(ⅳ) Expansion of the aircraft industry• To capture growing global demand for aircraft, expand the supply of risk money throughDBJ and other financial institutions and support R&D that promotes the development of
next- generation aircraft that utilize cutting-edge technologies, such as motorization,
composite materials and automation.
• In regard to the future of the space jets business and other completed aircraft, establish asales support system after development completion and a system for maintaining the safe
operation of mass production aircraft by the time space jets enter into service, while
conducting appropriate safety reviews.
• From the viewpoint of fostering internationally competitive aircraft parts companies andclusters, promote capital investment that contributes to productivity improvements andsupport collaboration and new entries for the purpose of expanding business through thenational aircraft cluster network.
• In order to strengthen the aircraft supply chain in the fast-growing Asia market, make use ofsuch opportunities as domestic and international exhibitions and conventions and promotecollaboration between the public and private sectors of relevant parties in Japan and the restof Asia.

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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.
⇒FY 2017: 38.3%[KPI] Have computers for student learners in 1 of every 3 classes by FY 2020.
⇒FY 2017: 1 for every 5.6 child students[KPI] Have new IT passports tests for exam takers reach 500,000 people by FY 2023.
⇒Plan new tests (to start in FY 2019)[KPI] Certiify 100 courses as Fourth Industrial Revolution skill acquisition coursesby
FY 2020⇒April 2019: 54 courses[KPI] Have the no. of adult students in universities and professional schools etc. reach1 million people by FY 2022.
⇒FY 2016: Approx. 500,000 people(2) New specific measures to be takenⅰ) Human resource development in universities, etc.
• In creating added value through data & AI,there is a need for human resources who haveboth expertise in each field, data science, and AI literacy to understand the meaning ofdata and can make use of it. To this end, universities will develop standard curricula andteaching materials for beginners in mathematics, data science and AI in FY 2019 andproliferate this to universities and higher vocational schools across the country. Also, inorder to acquire the basic ability to apply mathematics, data science and AI to one's special
field in both the humanities and science, develop standard curricula and teaching materials
at the applied basic level by FY 2020. In addition, actively and intensively support
universities that introduce mathematics, data science and AI education into their curricula.
Further, develop a training program for doctoral student and doctoral degree holder toacquire advanced data science and other skills in collaboration with industry, overseas
universities and other institutions, and build and expand a national network in FY 2019.
• To establish a system to certify high-quality educational programs in mathematics, data
science and AI at universities and technical colleges based on the needs of industry, study
policies for using certification standards and industry hiring and compensation practices
and start certification in FY 2020.
• Promote active use of a degree program system that can set curriculums beyond theframework of faculty and department schools. Also, by constructing multiple new typesof educational programs (such as the “Late Specialization Program”) that balance the70

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breadth and depth of universal common education to graduate school education utilizing
this system, achieve a broad realization of liberal arts education across the humanities andscience in university education. Also, in order to foster top human resources who can leadthe world, construct a program to identify "nails that stick out" that can be nurtured froman early stage through early admissions etc.
• Establish guidelines for the management of academics by 2019 and promote thevisualization of academic results at universities through the guidelines. Also, in FY 2019
create good examples of methods for utilizing learning achivements and history incompany recruitment activities & further learning and expand the approach to universities
around the country.
• Make preparations for steadily carrying out a common university entrance examination
to assess academic ability such as thinking ability, judgment ability and expressive ability
needed in the Society 5.0 era in FY 2020. Also, make a study that includes using CBT ofinserting "Information I" from FY 2024 in this examination. Further, provide support forradically expanding the number of universities that will adopt Information I in theentrance examination irrespective of the undergraduate field.
• Develop industry-academia collaboration programs centered on mathematics and data
science fields at universities, specialized vocational schools, etc., and expand theutilization of MOOCS and the Open University of Japan. Also, to foster careerpractitioners in universities, develop training programs from FY 2019 and deploy themnationally. In addition, establish a system for introducing human resources that matches
practitioners, and construct a portal site to provide course information for lifelong
education.
ⅱ) Human resource development at the primary and secondary education stages• To realize the world's most advanced high-quality education using the latest technology for
all students, introduce the use of digital technologies in all elementary, middle and highschools as soon as possible within 5 years and implement comprehensive measures tomaximize the educational impact. As for having needed ICT environments in elementary
schools, junior high schools and high schools, eventually achieve an environment in which
each student has his/her own computer and can fully utilize it by setting goals and developinga roadmap in FY 2019. At the same time, examine the use of BYOD (Bring Your Own
Device) and demonstrate specific kinds of usage. Also, in order to be able to procure an ICT
environment as quickly as at the lowest possible cost, show examples of ICT equipment
standard specifications by summer 2019. Further, revise the "Guidelines Concerning
Education Information Security Policy" by the summer of 2019 in regard to using cloudservices.

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Provisional Translation• On the assumption that clouds are used in schools, make public policies for the efficient andeffective introduction of cloud services. Also, in regard to connection methods that will allow
schools to easily introduce clouds from a cost aspect, model and exemplify various options
such as public clouds via public networks and "SINET". In addition, make preparations sothat all local governments and schools that want to can use SINET utilizing educational
resources such as universities in primary and secondary education as well as leveraging the
educational and academic research of universities etc., and conduct trial implementations in
FY 2020.
• Because digital textbooks are new teaching materials that have great potential to enhance
student learning and reduce the level of learning difficulties due to disabilities, promote theireffective use in educational settings. In addition, while verifying the benefits and effects ofdigital textbooks, consider an optimum system for their use taking into account international
competitiveness, and take necessary measures.
• To provide programming education with the introduction of elementary school programming
education from FY 2020, provide opportunities for experiential learning and training toenable all teachers. Also, augument available programming learning information such as byproviding teaching examples at websites. Develop educational materials etc. that contributeto training junior high school and high school teachers in FY 2019. Further, based on a studyof the status of teacher education, training and licensing, employ at least one person withknowledge of ICT in high schools by FY 2024, taking into account diverse human resourcesin society.
• Create teaching materials to achieve a solid understanding of such subjects as probability,
statistics and linear algebra at the high school level bearing in mind the connections tomathematics and data science education at universities and other education institutions, andprovide guidance mainly to those who wish to enter university from FY 2020.
• To improve the productivity and quality of learning, develop EdTech to realize effective AI
learning. And in order for the learning portfolios of accumulated educational logs to be used
for student learning and teacher guidance, promote practices related to the standardization
and utilization of collected data and create and collect good examples for development
throughout the country. Also, organize basic ideas concerning the use of advanced
technology that will enable teachers to use advanced technology and ICT, including EdTech.
Further, enhance training through the creation of "guidelines on computerization of
education" (provisional name) and the dissemination & development of teaching examples.
• Regarding distance education, in order that schools can obtain matching connections,guidance and technical advice, organize various related organizations that have a desire tocooperate in FY 2019 and start presentations. Also, create and develop examples that include
flexible implementation in junior high schools and create an environment in which distance72

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education can be implemented in all schools that desire such programs by FY 2023.
• In regard to STEAM education, which is cross-disciplinary education to apply learning in
multiple subject areas to solving actual social problems, create and collect good examples ofindustry-academia collaboration and local collaboration by FY 2020, present model plansand develop these plans for schools nationwide. Also, create a STEAM online library ofeducational content by FY 2020.
ⅲ) Human resource development and utilization in the industrial world• In order to identify and solve management problems at SMEs by applying data science &AI, AI Quest (Problem Solving AI Human Resources Development), which provides
opportunities for companies etc. to engage in practical learning centered on problemsolving learning, will conduct demonstrations from FY 2019 and develop results for Japanand overseas. Also, study creating an accreditation system for companies that will engage
in AI Quest and implement it from FY 2020.
• In the "unexplored IT human resource discovery and development business," identify
individuals with high mathematical ability and in FY 2019 begin studying new methods fordeveloping individuals who create information processing technology including AI
technology and carry out implementation from FY 2020.
• Review the "INNO-vation program," find challenges that lead to disruptive innovation andsupport those challenges. Also, disseminate this internationally, including the results ofprevious efforts, and provide new support for business development such as development
and matching with companies.
• Create guidelines for the operation of "local ICT clubs," which become local places ofactivity where children, working people, disabled people, elderly people etc. learn such ICT
skills as programming from each other, and implement them nationwide.
• In order to promote matching between companies and cyber security human resources,
coordinate duties and roles with skills and qualifications, commonize languages and more.
Also, undertake local development of core human resources in regard to important
infrastructure and industrial infrastructure who are familiar with information systems andcontrol systems. Further, build bases for training security personnel autonomously in areas
such as Okinawa and implement “Practical Cyber Defense Exercises” intended forgovernment agency etc. information system personnel.

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10. Taking in Overseas Growing Markets(1) Major progress of KPI[KPI] Aim to promptly conclude RCEP negotiations, upon which the FTA ratio will
exceed 70%.
⇒As of end FY 2018: the FTA ratio 51.6%*The ratio of the amount of trade with countries with which EPAs & FTAs are in effectand signed as of the end of FY 2018 in proportion to Japan's total amount of trade(based on the amount of trade in 2018)*The KPI was reassessed based on the status of implementation of economic partnershipnegotiations.
*The FTA ratio reaches 78.7% (based on the amount of trade in 2018) when the current
RCEP under negotiation is signed[KPI] Double the inward foreign direct investment (FDI) stocks to 35 trillion yen by 2020.
⇒As of end 2018: 30.7 trillion yen[KPI] Double the value of export and overseas subsidiary sales by SMEs by 2020
comperared with the level of 2010.
⇒FY 2016: 20.6 trillion yen (FY 2010: 12.8 trillion yen)
[KPI] Achieve infrastructure system orders of approx. 30 trillion yen in 2020 (2010:
approx. 10 trillion yen).
⇒2017: Approx. 23 trillion yen*KPI includes "the amount of income from business investment, etc."[KPI] Increase overseas sales of broadcast contents to 50 billion yen by FY 2020
⇒FY 2017: 44.45 billion yen(2) New specific measures to be taken
In order to achieve sustainable growth of the Japanese economy, global demands need to
be incorporated by taking a broad look at the international market. Also, further efforts need
to be taken to encourage Japanese companies including SMEs to expand overseas businesses.
he global movement towards achieving Sustainable Development Goals (SDGs) brings
new business opportunities. Together with expanding Society 5.0 internationally, by taking
advantage of opportunities such as the G20, the Seventh Tokyo International Conference on
African Development (TICAD7) in Japan and the SDGs Summit, the “SDGs Model of Japan”
will be shared and promoted with and across the international community, with Africa andSoutheast Asia as key regions.
Also, while there are conflicts in the world over trade, such efforts are to be undertaken
through working on economic partnership negotiations, to promote the establishment of a74

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rules-based free and fair economic order, and to lead to the sustainable growth of the world
economy.
ⅰ) Global expansion of Society 5.0 and achieving SDGs(ⅰ) Support for implementation by private companies• To realize Society 5.0 abroad led by the private sector, the Government strongly promotes
healthcare, smart cities and mobility programs, by utilizing the network of the Center for
the Fourth Industrial Revolution Japan / the World Economic Forum and throughinvolvement of various actors in advanced efforts, and supports these programs by therelevant measures of government agencies.
(ⅱ) Accelerating STI for SDGs
In order to promote "Science, Technology and Innovation for Sustainable Development
Goals (STI for SDGs)," the Government formulates the “Guiding Principles for theDevelopment of STI for SDGs Roadmaps" proposed by Japan at G20 and supports theformulation of roadmaps for each country.
• In FY 2019, the Government will research ideal roles of the platform which matches theseeds and needs for solving issues and creates new businesses, and conduct trial operationsof prototypes. Furthermore, through disseminating information at international conferencessuch as G20 and TICAD, the Government will promote collaboration and cooperation
among various actors in Japan and abroad, and promote the creation of innovations forachieving SDGs, including measures against climate change and marine plastic litter.
(ⅲ) International standardization of Society 5.0 (Repeat)• The Government promotes international standardization by actively making proposals tointernational standard organizations, in those fields such as data architecture that embodies
the concept of Society 5.0, along with the fields of autonomous driving technology, sharing,smart cities, data exchange market, AI and IoT, etc.
ⅱ) Supporting overseas business expansion of Japanese companies(ⅰ) Expansion of exporting infrastructure systems• The public and private sectors implement the priority measures of the “Infrastructure
System Export Strategy (Revised Edition in FY 2019)” (approved by the Ministrial
Meeting on Strategy relating Infrastructure Export and Economic Cooperation on June 3,2019).
a) Promotion of the "quality infrastructure"• To ensure "openness", "transparency", "economic viability", "debt sustainability of75

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borrowing countries", etc., in accordance with the G20's principles of high-quality
infrastructure investment and the APEC Guidebook, etc., the Government leads thedevelopment of infrastructure internationally and contribute to sustainable economic andsocial development.
• Building upon problem-solving capabilities that utilize advanced new technology such as
IoT and AI and high-quality distribution services, the Government enhances Japan'scontribution to the achievement of SDGs. At the same time, in order to promote overseas
expansion in the business fields in which Japan has an advantage, the Government
promotes the formation of cross-sectoral packaged projects such as smart cities, bydeveloping regulations and rules in partner countries, proliferating international standards
originating in Japan and strengthening coordination among related ministries and agencies
through field-specific task forces.
b) Strengthening competitiveness through public-private approach and strategic
efforts to win orders• Consistent with foreign policy, such as the "Free and Open Indo-Pacific" vision, theGovernment reduces business risk and strengthens access to markets including in Africa
and island countries by working together with the relevant countries, to promote
expansion of business opportunities. Also, the Government promotes to utilize materials
and human resources, including from local regions and third countries, to improve pricecompetitiveness, and studies structural reforms of domestic-related industries tostrengthen their export base.
• The Government constructs new trade insurance schemes in collaboration with relevantorganizations to address issues such as further utilization of institutional investors’ funds
and development of the African market.
• The Government improves its involvements in project formation from "upstream" to"downstream," and enhances public finance for package projects, public-private funds
and efforts in overseas operations of independent administrative corporations, to enble
Japanese companies to further enter into overseas infrastructure markets.
• The Government enhances public support to promote continuous involvement of Japanesecompanies, including utility companies, through participation in management and O&M,
instead of simply selling equipment,.
To support Japanese companies with technological superiority in the field of renewableenergy such as offshore wind power generation, the Government supports with publicfinance those businesses and commercialization of new initiatives that use advanced
technology, and promotes innovation and new business investment by Japanesecompanies.

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Provisional Translation• The Government implements steadily software infrastructure support, such as humanresource training and legal system development.
(ⅱ) Establishment of a rule-based, free and fair economic ordera) Economic partnership negotiations• Japan, as flag-bearer of free trade, aims to take the lead in establishing comprehensive,
balanced and high-level global rules through the conclusion and expansion of highquality EPAs.
• The Government aims for early signing and entry into force of RCEP currently undernegotiation, and promotes strategically and expeditiously other economic partnershipnegotiations, including the Japan-Turkey EPA and the Japan-China-Republic of Korea
FTA. Also, the Government proceeds with discussions on strengthening economic
partnerships, including expansion of member countries/regions of TPP11, which enteredinto force in 2018, and the conclusion of EPAs with new countries/regions.
• The Government works on reviewing and holding discussions on the EPAs signed thus
far, in order to make them even better and in line with the current economic situation.
• In order to let more businesses including SMEs make effective use of EPAs, theGovernment strengthens support, including providing information, and works on further
promotion of their use.
b) Investment related agreements• The number investment related agreements is expected to cover 94 countries/regions in
total, if those that are currently under negotiation are counted, and therefore theGovernment seeks early conclusion to the ongoing negotiations. In addition, theGovernment aims to sign and put into effect investment-related agreements for 100
countries/regions by 2020 while identifying new countries for negotiations based on
the demands from business community, and to start negotiations as early as possible.
c) Tax treaties• The Government promotes the qualitative and quantitative expansion of tax treaty
networks necessary to support sound overseas business expansion of Japanesecompanies through concluding new tax treaties or revising existing treaties withcountries/regions where development of relations through investment

with Japan is

expected and amending existing treaties.

(ⅲ) Support of the overseas business expansion of medium-sized enterprise and SMEsa) Market development support, human resources and financial support77

Provisional Translation• Based on the opportunities created by entry into force of the EU-Japan EPA and TPP11,
the Government deploys in Japan and overseas those specialists familiar with overseas
markets, such as of the EU, to strengthen hands-on support from planning to theconclusion of business negotiations, with the "Consortium for New Export Nation" atthe core of the efforts. In doing so, the Government focuses on supporting companies
with high spillover effects,especially those frontrunning companies for the regional
future.
• To encourage the use of rapidly expanding EC in the world, the Government promotes
matching with platformers and let the Japan External Trade Organization (JETRO) set
up a "Japan Mall" at major EC sites overseas to expand and implement efforts to
support sales of Japanese products to the United States, Europe, the Middle East andother regions, in addition to those efforts already made in Asia.
• In order to promote measures to provide one-stop support for market development,
logistics, branding, procedures, etc. to enable SMEs to export autonomously, theGovernment considers methods during FY 2019.
• The Government, based on the information about needs from local buyers, trading
companies and government agencies, builds mechanisms to match with domestic
companies that can meet the needs and to strengthens in Japan and overseas locallyoriented product and service development and support for market development. Also,
the Government promotes efforts to develop overseas sales channels that unite
Japanese food with its food culture and related products.
• The Government strengthens the training and securing of global human resources who
can be immediate workforce for the companies both in Japan and overseas.
b) Support for overseas expansion• The government provides high priority support for overseas expansion and businessexpansion after moving overseas, such as local subsidiary establishment, navigating
local standards/ regulations and securing local agents and sales destinations. Also,
based on TICAD 7, the Japan International Cooperation Agency (JICA) and JETRO
will work closely together to strengthen overseas expansion, including into Africa,
while utilizing ODA.
• The Government promotes the overseas expansion of SMEs by revising the Trade
Insurance Law enforcement provisions to enable NEXI to underwrite reinsurance ofprivate investment insurance.
• The Government develops dispute settlement infrastructure, including promptly
revising Foreign Lawyers Law for revitalizing international arbitration, so as to support
overseas expansion of Japanese companies.

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Provisional Translation• The government enhances Japanese language learning and special support education
systems in overseas education facilities and strengthens educational functions, such as
facilitating admission into schools when families return to Japan.
ⅲ) Measures to make use of Japan's charm(ⅰ) Promotion of inward direct investment• Based on the "Program to Intensively Attract Foreign Direct Investment in Regional
Japan" (adopted by the Council for Promotion of Doreign Investment in Japan on April
16, 2019), the Government enhances support for activities to attract foreign companies
by local governments who have clear strategies, consolidates the support system of
JETRO and strengthens cooperation with inbound tourism needs and export promotionof agriculture, forestry and fishery products. Also, the Government promotes efforts tofoster collaboration and cooperation with foreign companies by disseminating
successful examples of attracting companies to local regions and to further improve thebusiness environment in Japan.
• The Government attract actively foreign companies that are creators of innovation byforming a close network of overseas innovation – ecosystems, etc., at JETRO's major
overseas bases.
• In FY 2019 the Government holds the Regional Business Conference, which started in
FY 2018, in the regions that are actively attracting foreign companies. Also, in
preparation for the Japan Business Conference in FY 2020, the Government proceedswith preparation to create implementation system, etc.
(ⅱ) Cool Japan• Based on the "Intellectual Property Promotion Plan 2019" (decided by Intellectual
Property Strategy Headquarters on June 21, 2019), the Government formulates an
updated Cool Japan Strategy by the summer of 2019 taking into account the effects ofprevious efforts. Based on the new strategy, the Government carries out related
measures, such as utilizing overseas diplomatic missions of Japan, the Japan House,
the Japan Foundation and JETRO,

information dissemination by the Japan Food

Product Overseas Promotion Center (JFOODO), and the funding by Cool Japan Fund
Inc. In so doing, based on the idea of market-in, the Government promotes preference
analysis by country / attributes, cross-sectoral approaches / story making, use of
influencers and events such as exhibitions, while considering the creation of a virtuous
cycle of inbound and outbound tourism.
• The Government strengthens the foundation for promoting collaboration among

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various stakeholders through the Cool Japan Public-Private Cooperation Platform. As
part of that, the Government works continuously using digital technology on foreigners
who like Japan and promotes the expansion of the fans of Japan and their long-term
stay by taking advantage of the Tokyo 2020 Olympic and Paralympic Games and theJapan Expo.
• The Government promotes the esatablishment of the institutional framework fordeveloping professional personnel, highly-skilled design personnel and high-lebel
management personnel, and for accepting foreign personnel, mutual exchange projects
that include regional culture dissemination, spreading Japanese language learning
overseas, and creation of infrastructure that allows local organaizers to play active roles,
etc.
• In anticipation of advancing into overseas markets expanding with the development of
information and communication technologies, in regard to competitive Japanese video
contents in overseas markets, the Government promotes productivity

at theproduction sites by introducing the digital and other technologies. Also, by holding
international trade fairs and supporting overseas development of broadcast contents,
the Government carries out the development of overseas markets for contents-relatedindustries and local industries and the expansion of inbound to regions.
• Regarding e-sports, which are attracting attention as a new growth area, theGovernment makes efforts to improve awareness in society and conducts fact-finding
surveys related to, for example, the governance of competitions in FY 2019, so as toprepare the environment needed for sound development.
• In FY 2019, the Government promotes sharing of licensing information among relatedparties through updating national location databases and trial settings of area managers,
and also improves the shooting environment for domestic and international video
productions by conducting an exploratory survey on attracting foreign video projects.
While contributing to the creation of new Japanese films that will be appreciatedaround the world through developing young filmmakers, film production support andinternational exchanges, etc., the Government mobilizes interest in Japanese movies
and other genres of Japanese culture by promoting international co-productions,transmitting information to overseas film festivals and exchanging human resources.
• The Government promotes further export expansion of Japanese liquor and inboundtourism, through effective promotion and spread based on national/regional
characteristics and preferences, improvement of brand power, development of anexport environment and cooperation with fields other than liquor .

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Provisional Translation(ⅲ) Preparation for the 2025 World Exposition• Based on the Expo Special Measures Law, the Government designates the Association
for the 2025 World Exposition responsible for the preparation and operation of theExpo 2025 Osaka, Kansai, Japan and provides support measures such as government
subsidies and the dispatch of government personnel.
• After getting approval for Japan's hosting plan (registration application form) from the
Bureau of International Expositions (BIE), the Government takes advantage of suchoccasions as the 2020 Dubai World Expo to solicit the participation of as many
countries as possible. Also, at international conferences related to the theme of theExpo, the Government disseminates the attractions of and information about the Expoto the world.

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11. Promotion of active participation by highly-skilled foreign professionals(1) The main KPI progress status[KPI] Aim to recognize 10,000 highly-skilled foreign professionals

by the end of 2020

and recognize 20,000 highly-skilled foreign professionals by the end of 2022.
⇒ A total of 15,386 foreign nationals have been recognized as highly-skilled foreign
professionals since the introduction of the Point-based System (May 2012) until
December 2018.
[KPI] The number of foreign students’ acceptance will be doubled from 140,000 to
300,000 by 2020 (implementation of “300,000 Foreign Students Plan”).
⇒ The number of foreign students at higher educational institutions such asuniversities / graduate schools, etc. in Japan is 208,901 (as of May 2018)* If 78,658 foreign students enrolled in Japanese language schools for learning
Japanese are added, the number of foreign students comes to 298,980 (as of May
2018)(2) Specific measures to be newly taken
With tightening worldwide competition for highly-skilled human resources, Japan's
living & working environment and entry & residency management systems should become
more attractive to foreign individuals with advanced knowledge and skills. In order forthese foreign individuals to be able to play an active role in Japan, we will promote thefollowing initiatives across the government, based on the " Comprehensive Measures for
Acceptance and Coexistence of Foreign nationals " (decided by the Ministerial Council on
Acceptance and Coexistenceof Foreign nationals on December 25, 2018) and "Enhancement of Comprehensive Measures for Acceptance and Coexistence of Foreign
nationals " (decided by the Ministerial Council on Acceptance and Coexistence of Foreign
nationals on June 18, 2019).
ⅰ) Promotion to accept highly-skilled foreign professionals(ⅰ) Cross-Government approaches to promote the employment of foreign students etc.
in Japan• In response to the establishment of the " JETRO’s platform for promotion of active
participation by highly-skilled foreign professionals" at JETRO, provide information
on relevant measures such as immigration control systems held by relevant
government ministries and various employment promotion measures such as seminars
on highly skilled foreign personnel implemented by relevant government ministries.
Also, provide information on university enrollment of foreign students wishing to82

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work in Japan and regularly updated, new information on companies interested in
hiring highly skilled foreign personnel including foreign students.
• For SME companies that are interested in hiring foreign talent including foreign students,
use the platform to encourage the hiring of highly skilled foreign professionals, including
foreign students, by having experts provide meticulous, 1-to-1 sustained support fromrecruitment to retention.｡• Some companies require advanced Japanese language skills (for example, the Japanese
Language Proficiency Test N1 level or higher) when recruiting foreign students, but thelevel of Japanese language skills required for work varies from company to company. In
light of the diversity of Japanese language skill levels required at the time of employment,
promote diversified recruitment process and post-hiring treatment packages that respond to
this diversity of Japanese language skills. Therefore, relevant ministries, industries, job
support companies, universities, etc. should cooperate on establishing and promulgating
best post-hiring practices in regard to various types of human resource development, job
packages etc. In addition, in order to promote information dissemination from companies
and universities that are making efforts to obtain talented advanced international students,
make sure that the relevant government ministries and agencies are well informed.
(ⅱ) Improvement of Japanese language education programs for business purposes andenhancement of the quality of Japanese language education• Universities cooperate with companies and others in formulating an educational program tohelp foreign students learn "business Japanese," which is a necessary skill for finding a job
in Japan, have the program accredited by the Ministry of Education, Culture, Sports,
Science and Technology and develop a nationwide system that will lead to foreign students
gaining employment at Japanese domestic companies. At accredited universities, request
the setting of achievement goals tied to the employment of foreign students while alsoprioritizing the allocation of scholarships etc.
• Identify excellent foreign students and support efforts at vocational schools to build acomprehensive acceptance model that involves Japanese language teaching, matching todomestic companies etc. Publicize and widely share information on educational programs
developed through these efforts.
• Provide comprehensive support such as the schooling of foreign children, improvement ofJapanese language instruction and career education for high school students. Also,
disseminate training programs for Japanese language teachers who are teaching working
people and make efforts that are based on examinations of new qualifications that certify
the ability of Japanese language teachers. To maintain a Japanese language education
environment for foreigners, create learning systems such as at local public entities and83

Provisional Translation
promote the use of ICT teaching materials.
(ⅲ) Improvement of the immigration and residency management systems, etc. to facilitate
the acceptance of highly-skilled foreign professionals• Strengthen public relations for local public entities through the sharing of best practices so
as to spread the use of " Project for Encouraging Foreign Entrepreneurs to Strat Business"
including foreign entrepreneur management and support.
• To facilitate the start of businesses in Japan by foreign students, review the systems andoperations related to entry and residency management, including the expansion of systems
and operations related to " Project for Encouraging Foreign Entrepreneurs to Strat Business" and " National Strategic Special Zone Program to Promote the Reception of Foreign
Entrepreneurs" and reach conclusions in FY 2019.
• In advancing the Fourth Industrial Revolution, such as AI, IoT and cloud technology,
undertake studies that include a review of current systems and operations that lead toward
the smooth acceptance of outstanding human resources in fields that need innovation
technology, and reach concusions in FY 2019.
ⅱ) Strengthening of residency management foundation for the facilitation and accelerationof the procedure for resident status(ⅰ) Facilitation and acceleration of the procedure for resident status• For affiliated institutions that meet certain requirements, such as proper employment offoreigners and giving notice of foreign employment status etc., we will start accepting
online applications for residency on behalf of foreigners in July 2019. In the future, we will
expand the scope of online application procedures, in order to further improve convenience.
(ⅱ) Strengthening of residency management foundation• Promote the development of an information system to enable a continuous understanding of
information related to the status of acceptance of foreigners, and to enable the management
and interception of information at the level of individual organizations hosting foreigners,
and digitize the residency management.

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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] (New) 2025: 65-69 years-old employment rate: 51.6%⇒ 2018: 46.6%(2) New specific measures to be takenⅰ) Securing employment opportunities up to the age of 70• It is necessary to create opportunities for elderly people who are willing to work can fully
demonstrate their ability in this 100-year life era. Therefore, we will review the current
system that continues employment until the age of 65 so that work opportunities can be
secured until age 70.
• In regard to securing work opportunities for people age 65 to 70, which is different fromconditions up to age 65, it is necessary to expand the options available for hiring according
to the characteristics of each elderly person. For this reason, mechanisms that allows choices
to be made will have to be considered, with various legal options prepared, choices prepared
for those companies that hire senior citizens, mechanisms arranged for discussions between
labor and management, the kinds of choices that are appropriate to an individual andcompany consultations with individuals.
• The options to be arranged under the legal system are assumed to be "the abolition ofretirement," "extending retirement up to age 70" and "the introduction of a continued
employment system (including continued employment at subsidiaries and affiliates)," which
relate to system choices up to age 65. In addition, there is "realzing re-employment at anothercompany (a company other than a subsidiary or affiliate company)," "providing funding forfreelance contracts with individuals," "supporting individual entrepreneurship" and "funding
to participate in the social contribution activities of individuals." Companies will hold talks
with labor and management about particular companies choosing these options. Whenmaking specific examinations of each choice, careful future consideration will be made ofthe exact nature of the involvement of companies, such as the degree of responsibility
enterprises bear for each option.
• Also, in order to smoothly secure job opportunities up to age 70, the legal reform will be
divided into two stages, starting appropriately with a first stage. The direction of the firststage of the legal system will consider the following.
a) The legal system, after clearly specifying the above options, stipulates efforts to secure
work opportunities up to 70 years of age.

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Provisional Translationb) If it is deemed necessary, the Minister of Health, Labor and Welfare will require employers
to formulate individual company labor and management plans, and seek to secure theimplementation of plans.
In addition, based on the progress of actual first-stage conditions, as a second stage, we willconsider legal amendments for guarantees based on the disclosure of corporate names (socalled obligatory) as under the current law, for any of a variety of options. In this case, as in
the previous legal examples, when labor and management agree that health is not good andattendance rate is low etc., establishing exemptions will be considered.
• In addition, we will not consider revisions to the existing legal system up to the age of 65 toprevent confusion. In order to realize such a mechanism, following deliberations by the
Labor Policy Council the 2020 ordinary Diet session will propose first-stage legislation.
• Study promoting employment centering on local public entities and cooperation with local
companies so that elderly people who are willing to work can fully demonstrate their abilities
and can play an active role according to the individual circumstances of working people.
Also, consider strengthening the functions of the Silver Human Resources Center andstrengthening matching functions that are based on the needs of companies and theexperience and willingness of senior citizens to work.
• Develop programs to support the redesign of career plans for old age and the introduction ofa system for workers to receive regular career counseling within companies, support careerformation through providing services nationwide and promote recurrent education that
includes senior citizens. Also, provide support for companies taking measures to secure work
opportunities up to age 70 and companies working on ensuring the safety, health, etc. ofelderly people, such as prevention of work accidents among older workers. In addition, create
an environment for senior citizens to demonstrate their abilities, such as supporting
construction of evaluation and compensation systems that emphasize abilities and results andthat take into account the motivation and satisfaction of senior citizens, and that enables
senior citizens to play an active role while feeling at ease. Further, provide employment
support for middle-age and elderly women, such as strengthening the functions of the Silver
Human Resources Center that includes expanding female membership.
ⅱ ) Review of the pension system due to the diversification of work style and theprolonged elderly period and employment expansion• From the perspective of “the 100-year life era, “ promote institutional reform of both public
and private pensions, with a view to submitting a bill to an ordinary session of the Diet in
2020, in order to be able to improve the economic basis for longer periods of elderly living.
This will be based on the financial verification of public pensions in 2019 and in recognition

86Provisional Translationof the changes happening in a society where more people are working longer in various
modes.
• Due to the flexibility of the pension deferment system (currently, a 1-year deferment results
in an 8.4% yearly increase, a 5-year deferment results in a 42% yearly increase), expand theoptions for old-age employment and the start of collecting a pension, to make it possible toimprove the economic basis of those living to an older age by extending the period of
employment. Also, while keeping fairness in mind, in order that future generations to which
the macroeconomic slide adjustment will apply will not be hindered from securing working
pension levels for as long as possible, we will review the adjustment of wages and pensions
for those still employed (the old-age pension system for those still working), while also
gaging the future abolition of the system. In regard to this, we will review the systempromptly after deliberations are held at the Social Security Council.
• In regard to expanding the provision of employee insurance to short-term workers, based on
the aim of realizing a social insurance system for all workers, promptly carry out a review ofthe system via deliberations at the Social Security Council from the viewpoint of increasing
pension levels and other benefits for short-term workers• In regard to raising the age at which private pensions can be activated, promptly carry out areview of the system via deliberations at the Social Security Council, taking into
consideration the extension of age and the expansion and diversification of employment, anddispersing & expanding corporate pension schemes to SMEs.

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2. Promotion of mid-career hiring and hiring of people with experience(1) Major progress of KPI[KPI] 2020: A ratio of hirees who had changed jobs of 9.0%
⇒2017: 8.6%

(2) New specific measures to be takenⅰ) Promotion of mid-career hiring and hiring of people with experience, etc.
• To ensure that workers who are willing to work can fully demonstrate their abilities in the
100-year life era, it is necessary to undertake reform of the employment system. In particular,
it is necessary to expand mid-career recruitment & recruitment of experienced persons 5

fora full-year of hiring, while at the same time undertaking a needed review of the hiring systemthat is centered around the all-at-once hiring of new college graduates, which has
traditionally been the province of large companies. The government will respond by asking
large companies to disclose information on their rates of mid-career and experienced worker
recruitment.
• Develop a campaign to change employment practices by, for example, horizontally
expanding the good practices of mid-career & experienced person recruitment councils thatbring together leading companies, especially listed companies that actively engage in midcareer recruitment and the recruitment of experienced people, and venture companies andSMEs. Also, encourage companies to review their evaluation and compensation systems
through publicizing good practices. When this is done by SMEs that have limited
management reform capabilities, provide support for reviewing their systems by using midcareer recruitment support subsidies.
• Based on the premise of assuring a learning environment for students, and also taking into
account actual conditions of employment and hiring practices, we will undertake a study in
FY 2019 in regard to the direction of employment and recruitment of students and companies
suited to the future, centered for example on long-term internships.
ⅱ) Infrastructure development to support proactive career formation• By promoting the development and operation of the occupation information website"Japanese version O-NET" (provisional name), which aims to start operating in 2020, and"professional abilities diagnosis tools," which may become available in 2022 or later, alongwith a view of linking them to each other and to existing systems, such as the Hello Work
5 Among companies that are actively involved in mid-career hiring, there are cases that are referred to as "career
hiring."88

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Internet Service and comprehensive workplace information websites, we will strive tocreate an organic system that allows job seekers and company personnel departments tosmoothly comprehend job information and search job offer information.
• Support the introduction of HR technology in SMEs and publicize examaples of usage, andsupport an active role for and increased productivity of diverse human resources in SMEs
by introducing and utilizing this same technology.
• As quickly as possible, conduct a special examination of the legal and technical issues
regarding the financial remedies available at the time of invalidation of dismissal and, basedon the results, obtain a final conclusion from the Labor Policy Council and take thenecessary institutional measures.

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3. Expansion of diverse and flexible work style(1) Major progress of KPI[KPI] 2020: 3-fold rise vs. FY 2012 in companies adopting telework⇒ 2018: 19.1% (2012: 11.5%)[KPI] 2020: 10% of corporate officers at listed companies are women⇒ 2018: 4.1%
[KPI] 2020: 15% of section chiefs or equivalent in private sector are women⇒ 2018: 11.2%[KPI] 2020: 55% of women continue employment after birth of first child⇒ 2015: 53.1%(2) New specific measures to be takenⅰ) Expansion of diverse and flexible work style(i) Promotion of side jobs and multiple jobs
• Promote side jobs and multiple jobs while paying heed to restricting long working hours andensuring the health of workers. Publicize guidelines and revised model rules for employment.
Also, we will accelerate discussions via a study commission on how to secure worker healthand manage working hours effectively and draw conclusions in 2019. This will be followed
by deliberations at the Labor Policy Council and drawing conclusions as soon as possible.
• Regarding workers' accident compensation schemes in the case of side jobs and multiple
jobs, currently the Labor Policy Council is in the process of undertaking a review, but wewill continue to identify issues and reach conclusions as soon as possible.
• Through setting up forums where local financial institutions and Yorozu support centers andprivate company/other kinds of human resource support organizations can work together tosecure core human resources who can solve management issues at SMEs, we will continue
to work on the creation and horizontal development of efforts to secure core human resources
through local financial institutions and universities. In this regard, from FY 2019 we will
focus on achieving securing human resources in collaboration with human resource support
agencies so that SMEs can hire core human resources, including people engaged in side jobs
and multiple jobs, through business support organizations, including Yorozu support centers.
• In regard to government officials engaging in multiple jobs, we will further publicize clearlystated multiple employment permission criteria to enable people who wish to work multiple
jobs related to the public interest/other activities to use the system smoothly.
(ⅱ) Development of an environment for the work style not depending on employment

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relationship (e.g. freelance).
In proceeding with medium and long-term consideration of various issues, including theneed for legal protections, involving working styles that do not depend on regular full-time
employment such as freelancing (and the specification of contract conditions, thedetermination and modification of contracts and the clarification of termination rules andappropriate compensation amounts), we will prepare a significant summary of issues by thesummer of 2019 via the “Study Group on identifying issues concerning style of working
similar to regular employment." At the same time, in regard to issues that should beprioritized, we will undertake a study with a sense of urgency.
(ⅲ) Promotion of telework• Promote public awareness of guidelines appropriate to labor management in telework andprovide support for introducing telework, such as subsidies for creating & operating telework
consultation centers and setting up telework operations.
• Organize and disseminate an advanced model of effective telework that contributes to thediverse use of human resources such as women, disabled people and senior citizens. In
particular, promote teleworking according to the circumstances of local regions andcompanies by having specialists such as social insurance workers and IT coordinators whoare in charge of solving problems at SMEs become promoters of expanded use of telework.
(ⅳ) Support for the balance between treatment and work
• Foster and deploy coexistence support coordinators to closely support patients to become
the core of cooperation between primary care physicians and companies. Also, strengthen
support know-how for patients at companies and medical institutions by promoting the"Guidelines for coexisting support of treatment and work in the workplace" and the"Company and medical institution cooperation manual" revised in March 2019
• Promote the establishment of a consultation support system in communities for patients withcancer and intractable diseases through the efforts of local balanced life support promotion
teams consisting of prefectural labor bureaus, labor & management units, local governments,
local medical institutions and other organizations.
ⅱ) Support for realizing the work style that enables the maximum productivity(ⅰ) Improvement of the work environment by correcting long working hours and otherconditions• From April 2019 we will strive to implement appropriate regulations, based on thoroughsupervision and guidance among other measures, in regard to overtime hours regulations that91

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include penalties applicable to large companies. At the same time, efforts will be made toapply the regulations smoothly, starting in April 2020 with SMEs and in April 2024 with theconstruction industry and medical professionals etc. These efforts include improvements tocounseling systems, familiarization with systems and application grace periods, along withencouraging and supporting efforts to reduce overtime work and ensuring the health ofworkers, and new laws if necessary.
• We will secure an appropriate construction period, equalize construction time and streamline
deployment requirements for engineers, among other measures. Also, we will promote workstyle reforms in the construction industry by improving working conditions through acapabilities assessment system for skilled workers and specialized construction companies
that utilize the construction career-up system.
• Provide counseling support for SMEs, small businesses and others at working-style reformpromotion support centers for the smooth enforcement of "equal pay for equal work" (Parttime & Fixed-term Employment Labor Law, Temporary Staffing Services Law) from 2020.
Also, conduct public education with respect to the "procedures manual for business owners"
and the "inspection and examination manual for eliminating unreasonable treatment
differences" by industry.
• Based on revisions to the Labor Measures Comprehensive Promotion Act, the Equal
Employment Opportunity Law and other laws, employers are required to create new
employment management measures to prevent power harassment and have reinforced
measures to prevent sexual harassment etc. In accordance with this, we will develop
guidelines for the appropriate and effective implementation of measures and provide
necessary support so that SMEs can take appropriate measures.
• In regard to power harassment from workers and others such as at business partners andmajor harassment from customers and others, we will clarify the desired efforts such as
consultation services and cooperate with relevant government ministries and agencies topromote public awareness.
(ⅱ) Promotion of the “visualization” of human resources investment information• Stakeholders, such as institutional investors, and relevant government ministries cooperatewith each other to take a public-private sector approach to examining ways of utilizing
human capital non-financial information for improving corporate value.
• In accordance with the revision of the Corporate Governance Code in 2018, which prescribes
explanations of human resource investment and other allocations of business resources, wewill follow up on the implementation status in the future.
• At the same time, investigate the status of disclosures of corporate human resources

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investment, collect and publicize examples of good practices and promote the enhancementof disclosure at companies.
(ⅲ) Raising the minimum wage
• Actively work on creating an environment in which SMEs and small businesses can easily
pay increased wages while raising the economic growth rate and boosting the productivityof the entire Japanese economy. For SME companies and small businesses making efforts
motivated by a desire to improve productivity, employ drastic support measures, including
the provision of sustained 1-to-1 support. Also, promote the appropriateness of business
relationships including more thorough business development promotion standards based on
the Small and Medium Subcontractor Promotion Act, and facilitate the transfer of rising laborcosts at subcontracting companies to selling prices.
• With regard to the minimum wage, aim for a national weighted average of 1,000 yen in thenear future, based on the fact that annual wages have risen at a rate of about 3% over the past
three years, and taking into consideration regional disparities and economic and priceconditions. At the same time, continue to examine the status of the minimum wage, including
an analysis 6 of why Japan's wage level remains low compared to other developed countriesⅲ ) Further expansion of women’s active participation and promotion of diversity
management• Based on the fact that the revision of the Act on Promotion of Women’s Participation andAdvancement in the Workplace will expand targets responsible for formulating generalbusiness owner action plans and strengthen information disclosure, have SMEs and othercompanies across the country work steadily on women's advancement to ensure smooth
implementation. Thorougly publicize the contents of the revision, develop counselingservices for companies and consider efficient measures & publication methods for generalbusiness owner action plans, while promoting cooperation between prefectural labor bureaus
and local public entities. At the same time, provide additional strong support for and promote
key women's advancement efforts in various local actors.
• Publicize information on the status of women executives at listed companies and theactivities of women in ESG investment from the viewpoint of the advancement of womenand diversity management promotion. Also, promote gender investment that considers theelements of women's company career activities in investment decisions. Further, we willconduct executive training for women cosponsored with local governments, universities, etc.,

6

Includes actual conditions analysis by type of business/type of industry and by type of area.

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including development in new regions, to develop the pool of women executives, andstrengthen the bank of human resources of those who have completed skills training courses.
• Promote diversity management in companies through dissemination of the "Diversity 2.0
Action Guidelines" that require information disclosure etc. to encourage active dialogue
between companies and investors and review selection criteria, such as for "Nadeshiko
Brand" companies.
• To build a society where diverse choices can be made in the 100 years of life, establish anduse a “public-private partnership platform” to support new employment utilizing grants for
local revitalization and promote model development to comprehensively support career
improvement, partly through support for advanced efforts by NPOs deeply involved inaddressing women's needs. Promote the re-entry of a diversity of women into the labormarket, including women who are raising children and the generation of women who stopped
working to raise children. Also, provide support for women-specific cancer screening
medical visits so that women can live long healthy lives.
• In regard to developing childcare programs, we will continue to support verification of thedevelopment plans of the local public entitites and the making of arrangements according to
the results, based on the childcare waiting lists situation in April 2019. Also, based on the"new after-school child comprehensive plan," we will further promote after-school club
programs for children. Further, we will further promote the establishment and expanded
functionality of local childcare support centers in order to carry out childcare support in
response to diverse regional needs.
• We will encourage men's participation in childcare and housework so that women cancontinue their careers after childbirth, and try to amend the current situation where theresponsibility for childcare and housework is biased toward women. Specifically, based on
the fact that many men cannot apply for childcare leave even though they wish to do so, wewill consider institutional improvement measures, and further promote paternity leave-taking
by men.

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4. Prevention of Disease and Nursing Care
(1) Major progress of KPI[KPI] (New) Aim to prolong healthy life expectancy by at least three years for men andwomen, increasing it to at least 75 years of age⇒2016: 72.14 years of age for men, 74.79 years of age for women(2) New specific measures to be taken
Health is the foundation for people’s sense of security in the era of the 100-year life. To
move ahead with reforms to build a social security system for all generations, preventive
health promotion initiatives will be boldly strengthened targeting all generations andcommunity members, including those indifferent to health.
i) Promotion of health with anticipation of the 100-year life(i) Drastic reinforcement of incentive measures for disease prevention and healthpromotion• Fundamental improvements will be made to incentive measure under the support system forefforts by NHI insurers in FY2020 after examining budget measures, including funding
sources, to promote initiatives for prevention and health promotion. At the same time, foreach evaluation indicator, results-based indicators will be introduced and expanded and areview will be conducted to increase variety of allocation so that progressive and bestpractices are rolled out, initiatives to change individual behavior are enhanced and the useof private-sector services is promoted.
• Regarding the late-stage senior support funds adjustment system paid out based on thepreventive health care initiatives of health insurance associations, a review will be
conducted to increase the adjustment to a maximum of plus or minus 10% by FY2020 alongwith bring greater variety to allocation standards and expand the introduction of resultsbased indicators in FY2021 regarding evaluation indicators and points allocation, based on
an analysis of health program effects and the impacts of incentive measure.
• For people with the risk of increasing severity of diabetic nephropathy, insurers must be
mindful of rolling out progressive and excellent cases, such as detailed intervention by
public health nurses, through collaboration with doctors, etc., and of increasing the uptake
rate for dental checkups and cancer screenings, etc.
• To promote voluntary individual prevention and health promotion initiatives, insurer
initiatives will be supported that incentivize individuals, such as health care points, toencourage the roll out of progressive and excellent cases.

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Provisional Translation• As to the review of indicators for incentive measure regarding medical care insurance andnursing care insurance, effective programs will be developed through a comprehensive
PDCA cycle by verifying the effects of evidence-based preventive health care programs.
( ⅱ ) Strengthening of efforts leading to individual’s behavioral change aiming forprevention and health promotion• For people with a risk of lifestyle disease onset or increasing severity, a new mechanism will
be examined that can provide programs for medical management and appropriate exercise,etc., seamlessly through collaboration with medical institutions and insurers/private-sectorbusinesses, etc., with a conclusion to be reached by around FY2019. In addition, a standard
program for exercise facilities will be compiled during FY2019 to make it easier for medical
institutions to prescribe exercise. At the same time, verification will be carried out onmechanisms where exercise and sports can be practiced safely, effectively, and enjoyably at
exercise facilities and efforts will be made to spread good practices.
• To promote prevention and health promotion including among those indifferent to health,using nudge theory, etc., information including comparison with the entire population andaverages and future predictions (using AI and big data, etc.) appearing on various healthnotifications, such as for specific health checkups, etc., will be enhanced and progressive andexcellent cases will be rolled out during FY2019.
• Following the nutrition summit to be held in 2020 in Tokyo, efforts will be made to promotea food environment where people become healthy naturally, including those indifferent tohealth. Collaboration will be sought with various private-sector actors to examine
comprehensive measures including building and increasing evidence for promoting a healthy
diet, expanding contact points with health meals, and providing effective information topeople indifferent to health in order to begin engaging in initiatives that can be implemented
immediately.
• Through early case analysis and model verification programs, starting in FY2019, launch
initiatives for promoting healthy eating, exercise and social participation daily as well as
food delivery services based on appropriate nutrition control at individual homes or placesin the community for shared eating, through collaboration with various actors in thecommunity, including initiatives to increase the intake of vegetables.
• To support health promotion during pregnancy and childhood, healthy diet guidelines thatincorporate the latest knowledge will be revised during FY2020 so as to contribute toappropriate nutrition guidance for expectant mothers, and initiatives will be carried out inorder for the promotion of research that contributes to the formation of health living habitsfrom childhood.

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Provisional Translation(ⅲ) Strengthening of initiatives for the early detection of diseases• Development of simple and less invasive exam methods, such as liquid biopsies using bloodor saliva, and treatment methods for refractory cancer will be promoted to dramatically
improve the five-year survival rate by establishing mechanisms for the early detection andearly treatment of cancer. In addition, initiatives aimed at increasing the exam uptake rateusing nudge theory, etc., and approaches to screenings based on risk for increasing uptake
rate and effectiveness will be examined during FY2019 to reach a conclusion.
• To enhance dental disease countermeasures, such as periodontal disease that affects the entire
body’s health, based on the results of examinations into expanding opportunities to receive
dental exams that are currently offered every 10 years of age and enhancing dental healthguidance, a review will begin by FY2020 to quickly reach a conclusion. At the same time,efforts will be made to increase the uptake rate of dental exams and, based on exam results,
efficient initiatives will be carried out to encourage uptake of necessary exams and promotecollaboration involving dentists in case there is a possibility requiring treatment of a systemic
disease.
• Improvements will be made to procedures for swiftly changing over from medical test
reagents to over-the-counter (OTC) test reagents, in order for an individual to understandtheir own health condition and detect disease at an early stage. Therefore, a collaboration
plan will be formulated during FY2019 and examination carried out to improve the qualityof screenings and applications through collaboration between government and relatedindustries, while referencing past cases. At the same time, self medication will be promoted
by spreading OTC pharmaceuticals.
(ⅳ) Promotion of health development, health management, and health investment ofincorporated insurers and companies• Initiatives will be deepened for prevention and health development known as collaborative
health care through ties-ups between companies and incorporated insurers. The information
appearing in the health scoring report for employers, which visualizes the health condition
and medical costs of enrollees along with initiatives for prevention and health promotion,
will be enhanced and notification methods modified, including secular change in evaluation
indicators, in order to appeal to health insurance associations and employers. Similar
initiatives will be carried out from FY2020 at all incorporated insurers by type andimplemented for each business regarding health insurance associations and the mutual-aid
association of national civil servants from FY2021.
• An environment will be developed for appropriate evaluations from capital markets on theinitiatives and outcomes of health and productivity management, while taking into account97

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various research, etc., concerning the impacts on productivity of health and productivity
management. To visualize the amount of health investment, the “Health Management
Accounting Guidelines for Companies (provisional name)” will be formulated in FY2019
and examinations will begin on necessary incentive measure for promoting further healthinvestment by companies. Also, for information disclosures, etc., related to health andproductivity management, the “Health and Productivity Management Guidebook for
Companies will be revised in FY2019 and spread thereafter. Furthermore, examinations
will be carried out on approaches to information disclosures that can be compared bymarkets.
• Regarding the importance of health and productivity management in ESG and SDGs,
dissemination of information globally will continue to be encouraged and increased by the
public and private sectors. In addition, efforts will be made to spread the Beyond 2020 My
Best Program following the Tokyo 2020 Olympic and Paralympic Games.
(ⅴ) Verification of effects for prevention and health promotion utilizing data etc., andpromotion of private prevention and health services• Verification programs will be implemented to confirm and build evidence concerning theeffects of health improvement from prevention and health promotion using data, in order toutilize preventive health programs of incorporated insurers and local governments, etc.
• To ensure statistical accuracy, the government will establish a fundamental direction on
target fields and verification methods for verification programs, and, based on the results,
encourage implementation of appropriate preventive health care programs by incorporated
insurers and others.
• Efforts will be made to establish an environment where users can user services with peaceof mind and select health care services with a certain level of quality from intermediaries,
through spreading the “Approaches to Health Care Service Guidelines” (formulated by the
Ministry of Economy, Trade and Industry on April 12, 2018) to industry groups andintermediaries as well as support for industries to formulate their own voluntary guidelines.
At the same time, consideration will begin in FY2019 for measures to support initiatives
aimed at ensuring quality of health care services and standardizing health care data led by
the private sector, as a basic infrastructure for cooperation between multiple companies andcross-functional innovation across industries.
(ⅵ) Drastic reinforcement of incentive measures for nursing care prevention, etc.
• With regard to the nursing care incentive subsidy paid out to nursing care insurers andprefectural governments (Subsidy for Promoting Increased Functions of Insurers),
fundamental improvements will be made to incentive measure in FY2020 after examining98

Provisional Translationbudget measures, including funding sources, to promote the roll out of progressive nursing
care prevention initiatives by local governments and shrink the gap in regional disparities interms of health life expectancy.
• At the same time, for each evaluation indicator and point allocation, a review will be carriedout, including expanding the introduction of performance-based indicators and improving
variety in allocation standards to expand “community gathering places” familiar to seniors
that could possibly prevent nursing care or dementia. In doing so, private-sector services will
also be utilized that lead to activation of senior’s minds and bodies through exercise, etc. In
addition, senior workers and volunteers will be encouraged at nursing care facilities,
including “nursing care helpers,” and points will be utilized as an incentive for individuals.
• Detailed assistance will be expanded, including frailty countermeasures, for health programsfor seniors age 75 and older. The insurer incentive measure for late-stage senior medical care
will be utilized. The national special adjustment grant will be used to support the deploymentof medical specialists in municipalities aimed at rolling out integrated nursing careprevention and health programs of municipalities nationwide.
• Regarding the nursing care remuneration adjustments for maintaining and improving the
average daily activities of users, evidence-based verification will be carried out by FY2020
and necessary actions will be taken for the next nursing care remuneration revision, from thestandpoint of supporting independence and preventing increasing severity, etc.
(ⅶ) Strengthening of comprehensive measures for dementia• Comprehensive dementia measures focused on “symbiosis” and “prevention” will be
implemented pursuant to the Dementia Countermeasure Promotion Outline (decided by thecabinet meeting on dementia countermeasures promotion on June 18, 2019). As for
progressive and excellent cases involving the use of “gathering places,” etc., a compilationof best practices and guidelines for implementation will be prepared by FY2020 for thesecases to be rolled out to local governments nationwide. At the same time, R&D will be
reinforced for establishing preventive methods for dementia. Work on a data compilation
will begin in FY2019 with completion of a framework for data use to be completed by
FY2021. Collaborative public-private platforms in the field of dementia will be utilized toencourage the social implementation of prevention and care, while aiming to establish
evaluation indicators and methods.

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5. Next-Generation Health Care
(1) Major progress of KPI[KPI] (New) Aim to increase service provision per hour in the medical and welfare
fields by at least 5% (7% for doctors) as of 2040

(2) New specific measures to be taken
To establish a next-generation health care system, “total optimization” with speed in mind will
be promoted so that individual measures for health, prevention, treatment and care, etc., will be
used to maintain and improve people’s health, increase the quality and productivity of medicalcare and nursing care, and realize work-style reforms in the field seamlessly integrated with theabove, while actively introducing technological innovation such as data and ICT, etc., and fully
utilizing it for a higher dimension of cost effectiveness.
ⅰ ) Ensuring effective and efficient medical and welfare services utilizing technicalinnovation, etc.
(ⅰ) Promotion of the utilization of data that serves as a basis to provide health, medical
and nursing care servicesa) Online qualification confirmation, etc.
• Individual numbers will be assigned for the insured enrolled in medical care insurance andnecessary system development will be steadily carried out aimed at the full-scale launch of“Online Certification Confirmation” from FY2020 where the My Number Card can be used
as a health insurance certificate. Using the new medical information digitalization support
fund to be established, support will be provided for system development by medical
institutions and pharmacies.
• In addition, as for identifiers (ID) in the medical care, etc., field, consideration will be given
toward a mechanism for consolidating information of the medical care, etc., field using theindividually assigned numbers of the insured using the Online Qualification Confirmation
System as the platform. Operation is slated to begin from FY2021 after considering thenecessary legal benefits.
b) Collaboration and utilization of health and medical care information at medical
institutions, etc.
• Initiatives will be advanced so that the health and medical information of patients can bechecked at medical institutions, etc., nationwide. Therefore, efforts will be made to begin
operating the mechanism that can check pharmaceutical information and specific healthcheckup information based on medical practitioners’ receipts for health insurance claims on

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or after October 2021. Furthermore, in order to promote a mechanism where other data
items can be checked at medical institutions, etc., issues will be organized based on previous
verification results concerning the health and medical information network, and thenexamination will be made on approaches to administrator actors and cost burden, while
verifying the need for information linkages and technological trends along with costeffectiveness. Based on this, a process chart will be formulated for completing the aboveby the summer of 2020. Furthermore, a review will continue to be carried out on linkages
with nursing care information as well.
• The standardization of digital medical records will be pursued based on technological trends
using the medical information digitalization fund, etc.
• As for digital prescriptions, guidelines will be formulated in FY2019 in order to facilitate
operations taking into account verifications.
c) Collaboration and utilization of nursing care information of various job types in thenursing care field• To reduce the burden of nursing care staff and provide high quality services, support will be
provided for the use of ICT in the nursing care field by utilizing the comprehensive fundfor regional medical and nursing care starting in FY2019. In addition, productivity
improvement guidelines will be utilized to effectively spread ICT to the nursing care sites
in order to implement ICT collectively with initiatives for increasing efficiency andproductivity in nursing care operations on the sites. Furthermore, a review will be conductedin FY2019 on preparation of standard specifications for medical and nursing carecollaboration using ICT to reach a conclusion.
d) Promotion of PHR• Personal Health Records (PHR) will be promoted as a mechanism for individuals and theirfamily members to check their health condition and prescription history for healthier dailyliving and health promotion. The provision of data to individuals through the My Number
Portal is slated to begin in FY2020 with the provision of data on specific health checkups,
while the provision of data on prescriptions will begin from claims made in October 2021.
• A review will be conducted for establishing a mechanism that is useful in accurate
communication with the medical sites and that can be linked to medical exams as needed,by centrally utilizing health information such as for infancy and childhood health checkups
as well as vaccinations, etc. Support will be provided for the digitalization andstandardization of health checkup data of local governments in order to begin providing
data through the My Number Portal from FY2020 for infant health checkups. In addition,
for school health checkups as well, the digitalization of health checkup data will be
encouraged and a review will be conducted on the future necessary processes in101

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collaboration with overall government discussions on PHR promotion to reach a conclusionby the summer of 2020.
• To further promote the use of PHR, discussions will be held by a panel of experts on mattersfor the digitalization of data related to health checkups and exams, with a certain conclusion
to be reached by the summer of 2020.
• Taking into account the results of the verification on PHR service models, etc., a review will
be conducted on API release and approaches to mandatory rules for private sectorbusinesses in an effort to promote the spread of these services.
e) Utilize health, medical and nursing care information as big data
• The linking analysis for the medical practitioners’ receipts for health insurance claims andspecific health checkup information database (NDB) and the comprehensive nursing careinsurance data base (nursing care DB) will begin in earnest from FY2020, enabling
utilization by a broad range of actors, including government, insurers, researchers andprivate sector businesses, etc. In FY2019 and beyond, a review will be carried out on theneed for consolidation with other related public data bases, and linking analysis will be
carried out in succession beginning with data bases for which legal and technical issues
have been resolved.
• Under the Next-Generation Medical Platform Act, following the act’s basic policy, efforts
will be made to promote people’s understanding through public relations and raisingawareness, and mechanisms will be put into operation that promote the utilization ofanonymized medical information in research and development in the medical field by abroad range of actors.
• The necessary requirements for enabling the use of data and outcomes obtained in publicresearch projects by private-sector businesses, etc. after the end of research will beorganized following the example of the research project on using IoT to change people’s
behaviors. The contract template to be used when migrating data between administrators
will be prepared in FY2019 and reviews conducted on various other issues.
(ⅱ) Promotion of technology utilization at medical and nursing care sites involving ICT,
robots, and AIa) Promote online medical care
• Efforts will be made for the quick approval of the bill proposing partial amendments to thePharmaceutical and Medical Device Act containing provision on online medication
instructions in the Diet so that the series of medical processes from exam to medication
instruction can be widely carried out seamlessly online. After the bill is approved, a review
will be conducted promptly on rules for the provision system, etc., and, taking into account102

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the above situation, consideration will be made for evaluation of payments for medical
services related to online medication instruction.
• Aimed at the appropriate promotion of online medical care, data will be compiled on thesafety and effectiveness of online medical care, while cooperating with relevant academic
societies and businesses, etc. Efforts will be made to understand the actual situation of casestudies, and, based on the results, etc., guidelines will be revised regularly aimed at theappropriate implementation of online medical care.
• Ahead of the next revisions to the payment system for medical services, the penetration of
online medical clinics will be studied and verified, and for diseases for which safety andeffectiveness is confirmed, consideration will be made to include these into the coverage of
online medical clinics. In addition, the necessary review will be conducted on the appropriate
spread and promotion of online medical care with regard to the requirements for online
medical care implementation method and implementation system, etc.
• As for remote medical care including online medical care, technical verification anddemonstrations for the establishment of new models will be made based on the progress of
ICT in an effort to promote the spread of safe and effective remote medical care.
b) Realization of science-based nursing care
• To implement nursing care that is scientifically substantiated to be effective towardsupporting independence, etc., full-scale operation of a data base for collecting and analyzing
data on the condition of seniors and details of care, etc., will begin in FY2020. The analysis
results from this data base will be utilized in discussions on the next and subsequent revisions
to the nursing care remuneration system and evaluations will be carried out on nursing careservices whose effects are substantiated. In addition, acquired data will be shared withnursing care businesses and utilized to increase the quality of care, etc.
c) Development and introduction of robots and sensors, etc.
• Initiatives will be examined based on the findings of the Future Innovation Working Group,
which examined a medium- to long-term vision up to 2040, and these initiatives will becrystallized during FY2019. The government as a whole will work to realize a social systemthat incorporates robots and AI, etc., including moon-shot-type research and development,
development of new evaluation models for prompt social implementation of advanced
technology, and reinforcement of technical intelligence functions, etc. In addition, thedevelopment of evaluation methods will be promoted for equipment and services aimed at
the realization of a society where people can understand their own health condition.
• Rules on verifying the effects of robots and sensors, etc., will be compiled by the next
revision to the nursing care remuneration system. An environment will be established for
promoting ongoing verification of effects by businesses and an innovation cycle, with the103

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evidence used in the evaluation of the next and subsequent revisions to the nursing careremuneration system.
• In regard to robots and sensors, support will be provided based on needs in the field using
monitor surveys, etc., on the nursing care sites and initiatives that connect the nursing caresites including users to developers. Development of nursing care technology using nursing
care robots and public awareness of nursing care robots will be carried out and support for
the introduction and utilization of robots on the sites of nursing care will be steadily provided.
At the same time, the same initiatives will be carried out in the field of welfare for thedisabled.
d) Utilization of AI technology, etc.
• While focusing on six key domains, the development of AI and utilization on the sites will
be promoted in the fields of health, medical care, nursing care, and welfare, in order toimprove the quality of medical care through correct diagnosis and treatment support andreducing the burden placed on medical practitioners. At the same time, the collection of highquality data required for AI development will be promoted. Furthermore, specific responses
will be launched in FY2019 for resolving issues identified during AI development, andefforts will be made to expand the reach of AI technology development in Japan to otherparts of the world through tie-ups with overseas medical institutions, including in Asia, etc.
In addition, an approval and screening system, etc., based on the characteristics of medical
institutions will be quickly developed using ICT to vitalize the medical equipment industry
in Japan.
e) Promotion of genomic medicine• Genomic medicine will be promoted for cancer and incurable diseases, etc. Aimed at therealization of complete genomic medicine for beating cancer, high quality complete genomic
information and clinical information will be gathered by the Center for Cancer Genomics
and Advanced Therapeutics (C-CAT) in Japan under the consent of patients and sufficient
information management controls, and a system will be established for relevant parties toanalyze and utilize this data broadly for the development of innovative treatment methods,
such as drug discovery, and diagnostic technologies, in an effort to promote personalized
medicine. An implementation system will be developed for genetic exams for the realizationof early diagnosis of incurable diseases, etc., and the development of treatment methods
using complete genomic information including gene therapy will be promoted. Therefore,
while referencing the UK and other countries that seek to conduct complete genomic tests of
100,000 people and 1 million people in the future, a detailed action plan that includes
numerical targets, human resource development, and system development, etc., will be
formulated during 2019 after compiling initiatives and issues to date. In addition, in

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promoting gene therapy, necessary measures will be promoted to create a society where
people are not harmed by genomic or genetic information.
• To promote basic research on the use of genome editing technology for human fertilizationof embryos, guidelines will be formulated with an eye on ethics, and legislative frameworks
including approaches to legal regulations will be examined with regard to clinicalapplications, while also paying due attention to advancements in science and technology.
( ⅲ ) Organizational reform of medical and nursing care sites, and larger scale
management with more collaborationa) Paperwork reduction, increased operational efficiencies, and use of seniors• To move forward with work-style reforms for doctors, etc., including reducing working
hours, efforts will be made toward thorough labor management, and a review will be
conducted on the promotion of task shifting, etc., along with the use of ICT for increasing
operational efficiency. Efforts will also be made to reform management of medical
institutions by rolling out effective business operations. In addition, changes will be
encouraged in how people in Japan visit doctors by making emergency consultation hotlines
known to all and carrying out fundamental reviews of medical information networks throughwhich medical institutions can be searched.
• An operational efficiency model for the sites of nursing care will be established in FY2019
by (i) analyzing and sorting operational work flow; (ii) promoting the active use of seniors
as nursing care helpers; and (iii) implementing pilot programs using robots, sensors and ICT,
etc., at nursing care facilities, based on the Nursing Care Site Innovation Plan that contains
the direction for maintaining and improving the quality of services on the sites of nursing
care, amid worker shortages. In addition, in FY2019 and beyond, gathered know-how will
be reflected in guidelines for improving productivity and powerful efforts will be made topromote the horizontal roll out of good practices.
• For initiatives in the nursing care field to reduce paperwork, a further review will be
conducted on documents required by the national and local governments and documents
prepared individually by businesses, and a review will be conducted on issues such as thediffering formats and attachments between local governments to reach a certain conclusion
during 2019 and move forward with necessary reviews, aimed at halving the amount of
paperwork by early 2020s. For the medical care and welfare fields, initiatives will be steadily
implemented for reducing and standardizing paperwork, taking into account thecharacteristics of each field.
• The active involvement of seniors and prevention of nursing care will be promoted, and fromthe standpoint of broadening the horizons of nursing care human resources, comprehensive

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efforts will be made to secure nursing care human resources using the comprehensive fundfor regional medical and nursing care, including using diverse human resources as nursing
care helpers.
b) Increase the scale, etc., of management of medical service corporations and social
welfare service corporations• Regarding the regional medical collaboration promotion company system, issues related tothe system and operations including approaches to medical collaboration promotion
operations and the lending of funds between participating companies will be identified,reviews carried out aimed at improvement, and necessary measures taken so that
contributions are made to the greater effective utilization aimed at realization of the regional
medicine concept.
• To facilitate mergers, etc., of medical service corporations, the creation of a lending system
for necessary management resources will be considered during FY2019. At the same time,
good practices involving medical service corporation mergers and business succession will
be collected and made known.
• Know-how in all aspects of rehabilitation of regional medicine and management support for
medical institutions possessed by the Regional Economy Vitalization Corporation of Japan
will be actively transferred to regional financial institutions. At the same time, thecollaboration and cooperation of the Welfare and Medical Service Agency and regional
financial institutions will be promoted for these forms of support and rehabilitation.
• A review committee of experts will be established to discuss ways of promoting the increasecooperation and scale of social welfare service corporation operations, with a conclusion to
be reached during FY2019. In addition, good practices will be collected and guidelines
formulated during FY2019, including obtaining findings from a review committee ofaccounting professionals for clarifying the accounting treatment of mergers, etc., so that
corporations interested in increasing cooperation or scale can more easily do so.
ⅱ) Development, operationalization, and global expansion of superior pharmaceuticals
and medical equipment from Japan(i) Development and operationalization of superior pharmaceuticals and medical
equipment from Japan• Under the Health and Medicine Strategy to be revised in FY2019 (Cabinet decision on July22, 2014), etc., research and development into medical technology and methods such as
regenerative medicine, cell medicine, gene therapy, and genome/data platforms, etc., will bepromoted based on uniform evidence that also covers different diseases and efforts will bemade to create new industries, so as to contribute to the prolonging of healthy life expectancy

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aimed at a society of healthy longevity.
• To develop medical equipment and health care services taking into account various needsfrom prevention to improved QOL, support for venture firms will be stepped up and policies
promoting new entrants will be examined during FY2019. Furthermore, support for
networking between venture firms and related institutions by the Health Care Innovation
Hub (InnoHub) will be commenced.
(ⅱ) Global expansion, etc.
• Under the Asia Health and Human Well-Being Initiative, the international expansion ofJapanese health care related industries will be promoted to contribute to the realization ofbroad-based health care and independent industrial development in Asia. In particular, efforts
will be made to promote both the development of pharmaceutical and medical equipment
industries in Asia with the involvement of Japanese companies and the deregulation ofpharmaceuticals and medical equipment in Asia based on the Grand Design for Asian
Pharmaceutical and Medical Device Regulatory Harmonization (decided by the
Headquarters for the Advancement of Health and Medicine Strategy on June 20, 2019).
• In Africa, a positive cycle will be created where public sector initiatives create and develop
private sector business and vitalization of the private sector supports the public sector. To
achieve broad-based health care through this, Japanese health care related industries will be
encouraged to expand into Africa pursuant to the Basic Policy for an Africa Health andHuman Well-Being Initiative (decided by the Headquarters for the Advancement of Healthand Medicine Strategy on June 20, 2019) while disseminating information at TICAD7, etc.
• Increase the international response capabilities of Japan’s medical care services bypromoting in an integrated fashion the international deployment of medical services mainly
led by Medical Excellence Japan (MEJ) and JETRO, etc. along with medical services
provision for inbound medical treatment by Japan International Hospitals (JIH) andfollowing the “Comprehensive Measures for Securing Appropriate Medical Services for
Foreigners Visiting Japan.”• Regarding countermeasures against infectious diseases that pose a threat internationally,
efforts will be made to reinforce research capacity and function, including forming a research
hub centered at Nagasaki University and developing human resources by establishingresearch infrastructure in locations with infectious diseases. At the same time, studies on
infectious disease occurrence as well as the exam system, and treatment system will bestrengthened ahead of the Tokyo 2020 Olympic and Paralympic Games, and the number of
medical institutions designated as capable of handling infectious diseases will be expanded.
• Through the G20 Osaka Summit, Health Ministers’ Meeting, Joint Session of the G20

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Finance and Health Ministers, and TICAD7, etc.,support will be provided for raising Japan’sinternational status in the promotion of universal health coverage (UHC) and international
infectious disease response, bilateral assistance, and support for international healthinstitutions such as thee World Health Organization, global funds, and Gavi Vaccine Alliance,
etc., along with the Global Health Innovative Technology (GHIT) Fund and CEPI, etc., andAMR countermeasures will be promoted. In addition, development of human resources who
can handle international infectious diseases, etc., will be pursued further as well as theirdispatch to international institutions.

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III. Reinforcement of Regional Measures under Population Decline
1. 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⇒2017: 0.18% (2016: -0.23%)[KPI] Increase the number of profitable SMEs and micro businesses from 700,000 to
1.4 million by 2020
⇒FY2016: 954,546 companies (FY2015: 923,037 companies)(2) New specific measures to be taken(i) Bus services (and local public transportation competing with bus services)
As a typical example, in the center of towns, routes with excessive frequency are operated
by multiple bus service operators and local public transportation competing with these bus
service operators.
By allowing joint managements between these operators, the number of services on thesehigh frequency routes can be rationalized, while the revenue increase from therationalization can be used to maintain a network of bus services in low demand areas
among other areas. This will ensure convenience for all residents across a broad area andthereby secure the interest of general consumers, which is the ultimate goal of competition
policy.
For bus services, stakeholder councils have been set up under the Act on Revitalization
and Rehabilitation of Local Public Transportation Systems, and local public transportation
network formation plans are formulated and implemented by the councils. However, evenunder such councils, detailed discussions among operators about fares, pricing, operation
frequency and routes were viewed as a possible breach of the Anti-Monopoly Act and thishas been pointed out as an obstacle to plan formulation and implementation. Therefore,
based on the framework of such councils, there is a need to exempt joint managements
involving the routes, service intervals, and fares of bus service operators from the AntiMonopoly Act and develop a clear framework for operators and communities. Specifically,
there is a need to: (a) permit joint management of bus operators including utilization offare pool to maintain a network of bus services including services in low demand areas; (b)require maintaining a network of bus services including services in low demand areas be a
condition of approval of joint management, and the approval of joint management be
rescinded should this condition be not maintained after the approval,; and (c) ensure thepredictability of these rules for relevant operators.

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A requirement will be the establishment of a council based on the Act on Revitalization
and Rehabilitation of Local Public Transportation Systems for communities where it ispossible to ensure core service provision as a network by carrying out coordinatedinitiatives among operators.
Operators will determine the area to be served, the plan for maintaining and improving
convenience for the entire community, and the goal of services to be ensured. A framework
will be developed, which ensures convenience for local residents based on a variety ofsituations in the regions.
The areas covered in the plan will not only be areas where rationalization of services will
be undertaken among operators, but also areas in the entire network including unprofitable
routes in mountainous regions whose operation is secured as a result. The approvalrequirements of joint management would be, for example, that it is deemed difficult tocontinue service provision and maintain the entire network including the unprofitable
routes without joint management because of unprofitability.
(ⅱ) Regional banks
Regional banks play an important role in local communities. Their services need to be
maintained in an appropriate manner even in regions with a declining population.
If the downturn in business performance of regional banks persists, the negative effects,
such as reduced lending, will extend broadly to depositors and borrowers. Banks establish
relationships of trust with borrowers and use the relationships as a basis for determining
credit and supporting management of local companies. Therefore, there are concerns that,
due to the persistent downturn, banks will no longer be able to provide sufficient financial
intermediation functions.
A bank experiencing a downturn in business performance should make operational
improvements. For this reason, as a special measure, a management integration among
regional banks, even if the resulting market share is high, will be permitted in order tofacilitate their operational improvements at an early stage of downturn. But the applicationof the measure will be limited to situations where the persistent downturn may affect smoothfinancial intermediation in the local community.
In other words:(a) Financial institutions pursuing management integration will submit an application to
the Financial Services Agency for exemption from the Anti-Monopoly Act pursuant to thelaw on special measures. When an application is submitted, the Financial Services Agency
will check whether the following requirements under the law on special measures apply.
Discussions will be held by the Japan Fair Trade Commission about the applicability of110

Provisional Translationthese requirements (if no application is submitted, merger reviews will be carried out
pursuant to the Anti-Monopoly Act).
(b)Screenings will be carried out mainly by the Financial Services Agency for i) to iv)
below and by the Japan Fair Trade Commission for v). Only when each requirement isfulfilled will an exemption be granted.
i) A local community is expected to see a continuous decline in demand for loans and feebased services for SMEs, and as a result, regional banks could find it difficult to provide
the abovementieoned services to the local community in a sustained manner into the future.
ii) The applicant bank is, on a continuous basis, unable to cover expenses to sustain the
network of the abovementioned services from the revenue generated from the services.
iii) Management integration is acknowledged to considerably improve business andmaintain functions.
iv) Capacity arising as a result of iii) above is expected to be utilized in a way which
contribute to the local economy.
v) Management integration will benefit the interests of users (general consumers) (evenif competition is reduced).
(c) If the requirements i) to iv) will be satisfied, the Financial Services Agency willconsult with the Japan Fair Trade Commission and the Financial Services Agency will
respect the opinion of the Japan Fair Trade Commission including applicability ofrequirement v).
(d) After approval, when conformity with the requirements of i) to v) is no longer
acknowledged, the Financial Services Agency will order the regional bank to takecorrective actions. In addition, the Japan Fair Trade Commission can require the Financial
Services Agency to take measures.
(ⅲ) Limitation of scope of law on special measures
The scope of the law on special measures must be restricted to fields where management
integration or joint management is expected to offer the greatest effect toward improving
business by firms providing core services in the community and where competent
government agencies can monitor and supervise actions taken after management integration
or joint management. For the time being, the law will be limited to the above two fields. thelaw will be in effect for a period of 10 years.
Additionally, the bill for the law on special measures will be submitted to the ordinary
session of the Diet in 2020.
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For the financial field, a separate review will be conducted simultaneously on other policy
means for regulatory reforms in order to promote the entry of new players, including thosefrom other industries, using new technologies, from the standpoint of user convenience andmaintaining and developing the local economy.
Reviews shall be conducted on approaches to financial administration of local financeacross prefectural borders, including the relationship with the Anti-Monopoly Act
sometime in the future.

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2. 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
(Repeat)[KPI] Increase the number of profitable SMEs and micro businesses from 700,000 to
1.4 million by 2020 (Repeat)(2) New specific measures to be taken
To increase productivity across Japan, more flexible options must be available foroccupations nationwide both regionally and by industry.
In particular, in regions facing decline, securing professional and management resources
to raise the level of company management locally bears great significance. Meanwhile, as
we have entered the era of the 100-year life, there will be a growing trend requiring places
for occupation changes or freelancing and side businesses and places for retirees to play anactive role post mandatory retirement. These two needs mutually complement one anotherand strategically matching them represents one critical task for promoting the active roleof human resources and increasing productivity in the future.
Often, however, SMEs and micro businesses in regions have yet to clarify what type ofhuman resources they lack and what functions human resources should fulfill. This
indicates that currently they cannot provide proper job offers and do not provide
appropriate compensation to talent they acquire.
As a result, the labor market in regions is immature. This is why employee placementbusinesses are reluctant to expand in regions and the inflow of human resources there islimited.
Considering the current situation, efforts will be focused and concentrated on thefollowing: (i) reinforce functions for supporting local companies to clarify their
management strategy and human resource requirements (promote involvement of local
financial institutions, etc.); (ii) fundamentally improve matching functions with humanresources in major urban centers; and (iii) build a framework for promoting the supply ofhuman resources from major urban centers to regions and immediately speed up the flowof professional and management human resources from major urban centers to regions.

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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
(Repeat)[KPI] Increase the number of profitable SMEs and micro businesses from 700,000 to
1.4 million by 2020 (Repeat)(2) New specific measures to be taken
In regions with rapidly declining populations, the shortage of bearers of local industry,
such as agricultural, forestry and fisheries and commerce, has become serious, and, giventhat difficulties are arising in maintaining local communities and economies, humanresources for community development will be secured and their active roles promoted.

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4. 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. (Repeat)⇒Ranked 39th in October 2018 (5 places lower than previous year)[KPI] Tokyo to be ranked in the top three in the Global Power City Index by 2020
(4th in 2012) (Repeat)⇒Ranked 3rd in October 2018 (the same as the previous year)(2) New specific measures to be taken
As for the National Strategic Special Zone system, efforts will continue to concentrate on
remaining bedrock regulatory reform, including the flexible implementation of remote
medication instruction and required system reforms for facilitating start-ups by foreign
entrepreneurs, etc. The outcomes of special zones with high economic effect and noparticular adverse effects will be rolled out nationwide more quickly starting with those inneed.
In addition, based on the National Strategic Special Zone System, efforts will be made torealize the “Super City” initiative that seeks to achieve “whole future cities” that are global
pioneers in future living through the use of AI and big data, and to create sandbox systemof regulations exclusive to local communities. 7i) Early realization of the “Super City” initiative• Based on the National Strategic Special Zone System, efforts will be made to quickly
establish legislation that will promote multiple unique regulatory reforms within regions
based on on the consensus of local residents simultaneously and uniformly, aimed at therealization of the Super City concept that seeks to achieve “whole future cities” that are
pioneers in the use of AI and big data. Also, the technology groundwork for “Society 5.0”
will be laid urgently.
ii) Addition of further regulatory reform matters(Expand trial implementation of remote medication instruction)(ⅰ) Implementation of the remote medication guidance system in urban areas• Remote medication instruction is currently being implemented only in depopulated areas,
7

The Bill for Partial Amendments to the National Strategic Special Zone Act and Structural Reform Special Zone
Act, which contains provisions on the realization of the “Super City” initiative and creation of “sandbox system”
exclusive to regions for facilitating the swift implementation of demonstration testing on advanced and innovative
near future technologies such as autonomous driving of cars, unmanned aerial vehicles (drones), and the use of
frequencies related to such, was decided by the Cabinet on June 7, 2019 and submitted to Diet.

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etc. There are many patients in urban areas with diseases such as lifestyle diseases that
require continuous medication and strong demand for remote medication instruction withremote medicine. As a result, the prescribed rule making will be implemented around thefirst half of this fiscal year to enable remote medication instruction in urban areas locatedinside National Strategic Special Zones in case certain conditions are met, such as being afamily doctor or regularly visited pharmacy, and a pharmacist cannot visit the patient due
to the situation of the patient, pharmacist or pharmacy.
(ⅱ) Horizontal rolling out of the remote medication guidance system by designating
virtual special zones in depopulated areas, etc.
• As for conventional remote medication instruction in depopulated areas, etc., taking into
account the expected needs for implementation outside of Yabu, Aichi and Fukuoka, thevirtual special zone system that designates multiple areas all at once covering a specifictheme will be used to horizontally roll out this initiative at an early stage by aiming to realize
remote medication instruction in the above cities at the same time.
(Rule making for realizing “anytime anywhere care”)(ⅲ) Consideration for the review of online consultation requirements• Ahead of the next revisions to the payment system for medical services, the penetration of
online medical clinics will be studied and verified, and for diseases for which safety andeffectiveness is confirmed, consideration will be made to include these into the coverage of
online medical clinics. In addition, the necessary review will be conducted on the appropriate
spread and promotion of online medical care with regard to the requirements for online
medical care implementation method and implementation system, etc.
(Vitalization of the liquidity of funds)(ⅳ) Early realization of lifting the ban on wage payment using digital money (payment
to fund transfer business operators)• Institutionalization of wage payment will be carried out as soon as possible in FY 2019 toensure worker protection such as secure payment of wages, based on the request forrealization of payees’ needs and a cashless society. This has to be conducted upon
consultation with labor-management organization about enabling the payment of wages toan account of fund transfer business operators, with a view that designing a system forsufficient amount of insurance etc., to be paid to workers early in the case of bankruptcy offund transfer business operators. Simultaneously, monitoring of money laundering and othermatters in accordance with risks will also be conducted, while referencing cases in foreigncountries. (Repeat)

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Provisional Translation(Facilitation of demonstration testing of autonomous driving and drones, etc.)(ⅴ) Establishment of the region-based sandbox system• Efforts will be made to create a ‘sandbox system’ exclusive to local communities in order tospeed up and facilitate demonstration testing on technologies of the near future, such as theautonomous driving of cars and drones, etc.
(Formation of new transportation and logistics networks using compact mobility anddrones)(ⅵ) Review of personal mobility related regulations• Regarding compact and highly flexible mobility supporting people’s movements, a
conclusion will be reached during 2019 on prescribed rules making as needed, under thecondition that safety is secured in a way that is harmonized with other transportation actors,
while taking into account actual demand for mobility methods.
( ⅶ ) Relaxation of manufacturing permission for large unmanned aerial vehicles(drones)• Regarding large unmanned aerial vehicles (drones) that are strongly expected by local
governments to play an important role in logistics in mountainous regions in the future,
consideration will be given to the abolishment, easing and rationalization of regulations andoperations to facilitate development and manufacturing in Japan, while examining trends inonsite needs and related legislation, to reach a conclusion by the end of this year.
(Acceleration of research and development in regions)(ⅷ) Speeding up of the procedure to issue permit for drug transfer in joint research anddevelopment of new drugs• Prescribed measures to clarify procedures involving the case where narcotics are transferedmultiple times in joint research for drug discovery involving multiple companies will be
implemented in the first half of this fiscal year. These procedures require second andsubsequent applications for permission to transfer will be approved promptly by the Ministryof Health, Labour and Welfare on the condition that the initial application for for transfer
contains the plan for all joint research and explain the need for transferring on each of themultiple occasions.
(ⅸ) Relaxation of requirements for clinical practice provision for foreign doctors to
conduct clinical trials• Since track records and know-how are accumulated at private-sector hospitals with regard

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to phase one trials related to research and development on pharmaceuticals, to speed up
new drug development, a review will be conducted urgently to reach a conclusion in thefirst half of this fiscal year so that designation requirements for clinical professor hospitals(hospitals where foreign national doctors can serve as clinical professors) are eased in caseforeign national doctors will conduct phase one trials at such private-sector hospitals as aclinical professor.
( ⅹ ) Addition of investment business within the scope of business of incorporated
administrative agencies (experiment and research institution type)• In terms of the addition of the investment business within the scope of business ofincorporated administrative agencies (experiment and research institution type), a review
will be conducted at an early stage, including on whether to respond using National
Strategic Special Zones or general legislation, while taking into account the needs of local
government and investment systems of public universities, and National Research andDevelopment Agency, etc., considering proposals in National Strategic Special Zones, toreach a conclusion during 2019.
(Promote the active participation of non-Japanese human resources to contribute toregional revitalization)(ⅺ) Promotion of the employment of foreign students in the area of cool Japan• To expand the work possibilities for international students who have completed specialist
training at a vocational school majoring in the fields of culinary or confectionery sciences,prescribed measures will be implemented at an early stage this fiscal year to expand theJapanese Cuisine and Food Culture Human Resource Development Program and to develop
human resources to spread not only Japanese cuisine, but other cuisines and confectionery
fields overseas.
• Aimed at utilizing the National Strategic Special Zone foreign national demand cultivation
support promotion program in the fields of culinary and confectionery sciences, relevant
ministry and agencies will work together to discuss and review matters at an early stage toreach a conclusion before the end of this year regarding the validity of substitute measuresfor landing permit criteria for persons with at least 10 years of professional experiencebased on the proposals from relevant local governments.
(ⅻ) Expansion of the start-up visa system to promote the acceptamce foreign
entrepreneurs• Prescribed measures will be put into place by the first half of this fiscal year to expand theconditions to secure a business site for the National Strategic Special Zone foreign national
start-up promotion program so that co-working spaces provided by a start-up supporting
business working with a local government also fulfill the condition.

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Provisional Translation• To promote start-ups by international students with the desire and skills, a review will be
conducted promptly on amending systems related to the National Strategic Special Zone
foreign national start-up promotion program so as to urgently realize making it possible forinternational students in school or post-graduation to switch to a start-up visa without having
to return to their home country.
(xiii) Relaxation of employment requirements for foreign diving instructors• To respond to growing in-bound tourism demand, prescribed measures will be implemented
before the end of this year to clarify the application process for persons with a diving
qualification overseas and who satisfy certain requirements to obtain a diving license
required for working as a diving instructor according to a different method than passing thediving licensing exam.
(Response to home-visit rehabilitation carried out under reconstruction special zone special
exceptions)(xiv) Handling of the special measures for establishing home-visit rehabilitation offices
by non-medical institutions• The special exception for home-visit rehabilitation offices utilized in reconstruction special
zones for the Great East Japan Earthquake will expire at the end of this fiscal year according
to the current plan (excluding in Fukushima Prefecture). Given this, a review will be
conducted on the handling of the special exception for home-visit rehabilitation offices by
non-medical institutions, while confirming needs based on the situation of providing
medical and nursing care services in reconstruction special zones and confirming thenationwide needs outside of disaster-affected areas while continuing to secure effectivenessand safety from the standpoint of users. Efforts will be made to reach a conclusion before
the end of this year taking into account the views of relevant organizations.

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5. Utilization of a “sandbox system”(1) Major progress of KPI[KPI] Create 20 unlisted venture companies (unicorns) or listed venture companies
with corporate value or market value of at least 1 billion yen by 2023
(Repeat)(2) New specific measures to be taken
The new technology verification system (“regulatory sandbox system”) was introduced
pursuant to the Act on Special Measures for Productivity Improvement in order todrastically increase productivity by commercializing innovative technologies andbusiness models including AI, IOT, big data and blockchain at an early stage andcreating innovative products and services continuously.

Thus far, six verification

projects have received approval of the competent minister in charge, including projects
covering not only FinTech, but also the use of IoT and blockchain, etc., in the fields of
medicine and the environment, etc.
This system will continue to be used and for innovative ideas, to more swiftly carryout even more verification projects, by limiting the period and participants andobtaining the consent of participants, trial basis projects will be allowed to takeplace without obtaining approval under existing regulations. In turn, theaccumulated experiences and data will be utilized to realize prompt social
implementation. As a result, the government’s cross-functional and integrated
systems for social implementation of new technologies, etc., will be enhanced.
• The Cabinet Secretariat, through the New Technology Social Implementation Promotion
Team established with the Cabinet Office, will make coordinate all aspects with relevant
ministries and agencies, including not only preliminary consultations or advice about
applications, to support businesses utilizing the “regulatory sandbox system,” Efforts will
be made to make this system known to all inside and outside of Japan through theintroduction of accredited cases, etc.
• Relevant ministries and agencies, etc., under a system centered on promotion departments
for new technology verification established outside of departments in charge of regulatory
rules, will promptly screen applications and actively utilize the “regulatory sandbox
system” in their respective fields. In addition, special exceptions will be developed
promptly based on requests from businesses when implementing special exceptions areneeded and appropriate for implementation of verification. Moreover, after the completionof verification, a review will be carried out on regulatory approaches concerning newtechnologies, etc., and based on the results, legislative measures or other measures will be

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taken in order to eliminate or relax required regulations.

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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 (Repeat)⇒2017: 0.18% (2016: -0.23%)[KPI] Aim to promote introduction of IT tools for approximately 1 million firms,
which is equivalent to about 30% of SMEs and micro businesses in the three
years until 2020
[KPI] Increase the number of SMEs and micro businesses in profit from 700,000 firms
to 1.4 million firms by 2020 (Repeat)⇒FY2016: 954,546 companies (FY2015: 923,037 companies)[KPI] Aim to achieve that start-up rate exceeds cut-off rate and to make themcomparable to the level in the US and the UK (10% range)⇒FY2017: start-up rate: 5.6% (FY2016: 5.6%; cut-off rate: 3.5% (FY2016: 3.5%)[KPI] Increase the ratio of SMEs which have overseas subsidiaries by 1.5 times
compared to that in 2015 by 2023
⇒2016: 1.03 times(2) New specific measures to be takeni) Support for digital implementation of SMEs and micro businesses(i) Support for introducing universal IT
The following fundamental measures will be taken in order to disseminate initiatives toincrease productivity utilizing digitalization.
• To increase productivity of SMEs and micro businesses, initiatives fit for the uniquecharacteristics of sectors will be promoted based on the Act on Enhancement ofManagement of Small and Medium Enterprises, and if cross-sectoral initiatives are required,a review will be carried out during FY2019 including revisions of the basic policy. And
necessary measures will be implemented promptly thereafter. Then, collaboration between
relevant ministries and agencies along with industry groups will be reinforced to generatesynergies between various policies made by them to support SMEs and micro businesses.
• To continuously promote the introduction of equipment with the Subsidy for Manufacturing
and Service of SMEs and the introduction of IT with the IT Introduction Subsidy
considering cost-effectiveness etc. of support measures so far. To conduct a review on theSubsidy for Manufacturing and Services of SMEs to expand the scope of digital tools as
scoring elements to adopt it in addition to the introduction of crowd funding which is122

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already included as a scoring element and to consider to expand the scope of subsidies
which require similar scoring elements in FY2020.
• To develop an information platform for IT tools addressing management issues by collecting
cases and data on various IT related measures, and to urge various support organizationsfor SMEs such as management innovation support organizations and certified information
processing support organizations to utilize those information. Then, support organizations
will support digitalization of SMEs utilizing this information.
• To review the support system and support contents of digitalization in the start-up stage
including application crowd accounting system for SMEs, including those of businessgroups and financial institutions (including government-affiliated financial institutions)based on the cost effectiveness of previous support measures, and to make a conclusion
about future approaches in FY2019.
(ⅱ) Disseminate and expand more practical digital services
The following measures will be implemented to promote not only digitalization at eachcompany but also open innovation in the form of tie-ups with other companies, and torealize the benefits of digitalization fit for the stages of digitalization of each company
including creation of new business opportunities utilizing data.
• To promote loans for SMEs and small businesses utilizing data lending for short-term andsmall-lot loan using transaction data, operation methods of relevant credit guarantee
systems will be reviewed and a conclusion will be reached in FY2019. (Repeat)• To verify the effectiveness of bridge financing services to use electronically recorded
receivables for allocated subsidies established in March 2019 and then to aim to expand
the number of financial institutions offering this form of financing from four institutions
current to 150 institutions over the next three years. Also, the number of eligible subsidies
will be expanded.
• To promote digitalization of business-to-business transactions such as introduction ofcommon EDI for SMEs, “Standards for Promotion” under the Subcontract SME Promotion
Act will be revised to encourage subcontracting entrepreneurs to take the lead in
subcontractors’ initiatives for digitalization. In addition, support measures for initiatives tointroduce EDI related services simultaneously by multiple companies with certaintransactional relationships, including in the supply chain, will be considered to reach aconclusion in FY2019.
ⅱ)Promotion of business metabolism• Existing business succession subsidy will be expanded and focused on second start-ups andventure business succession, in order to promote new business growth on occasion of123

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business succession. In addition, about this subsidy, measures will be considered forsupporting business succession and business creation through succession of management
resources.
• To encourage business succession and new business creation by those who wish to do so,matching for management resource succession and business cessation consulting will be
added to the operations of Business Succession Support Centers.
• The smooth business succession of SMEs and micro businesses as well as sustainable
development of local economies through it are important for financial institutions to secure
its business basis continuously. Based on this perspective, the following measures will bepromoted. Regarding personal guarantee provided by business owners that could become
an obstacle to business succession, financial institutions will be encouraged to thoroughly
implement rules limiting such to truly necessary situations only, and support will be
provided to businesses.
-New offerings will be created within the credit guarantee system that do not require apersonal guarantee provided by business owners at the time of business succession, andif assistance or confirmation is made by experts for this same offering, a company’s
guarantee fee burden will be reduced to as low as zero excluding certain required
administrative costs by the Credit Guarantee Association.
-The special provisions in the “Guidelines for Personal Guarantee Provided by Business
Owners” (formulated by the Research Committee on Guidelines for Personal Guarantee
Provided by Business Owners on December 5, 2013) focused on the time of businesssuccession will be formulated before the end of this year and put into practice quickly
thereafter. These special provisions, in principle, will ensure that financial institutions
do not demand overlapping guarantees from the previous business owner and thesuccessor. In addition, the special provisions will specify detailed points of view andresponse methods to promote flexible judgment considering also the impacts on
business succession during reviews of whether a guarantee is needed from both.
-A system will be put into place where the confirmation and support of specialists can bereceived so that SMEs and micro businesses can fulfill the requirements of the“Guidelines for Personal Guarantee Provided by Business Owners” and the special
provisions at the time of business succession.
-As a government-affiliated financial institution, the Shoko Chukin Bank will, in principle,
no longer require guarantees from 2020 from companies that satisfy certain conditions
by thoroughly implementing the “Guidelines for Personal Guarantee Provided byBusiness Owners”. Visualization will be carried out for the progress of revisions topersonal guarantee provided by business owners, including having individual financial
institutions engaged in SME lending, such as government-affiliated financial

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institutions and Credit Guarantee Associations, release batch statistics starting from
FY2018 on their requests for personal guarantee provided by business owners.
-“Percentage of guarantee requests at the time of business succession (overlapping fromboth previous business owner and successor, previous business owner only, successor
only, and not from any)” and “Percentage of loans that do not rely on business ownerguarantees to all new loans” will be set as key performance indicators (KPIs) that canobjectively evaluate the situation of financial intermediation at financial institutions.
Through releasing the situation for the second half of FY2019, the visualization of
initiatives in financial intermediation will be promoted and through the above measures,
further efforts will be made to encourage loans by private-sector financial institutions
that do not require personal guarantee provided by business owners.
• The Business Succession Guidelines (formulated by the Study Group for Revitalization ofBusiness Focusing on Business Succession in March 2015) will be revised during FY2019
to make the content more practical and add content on management resource succession.
• The business successor human resource bank will be expanded to Business Succession
Support Centers nationwide during FY2019. In addition, the number of persons wishing tostart a business registered with this bank will be greatly increased through collaboration
with start-up support institutions nationwide. At the same time, the business succession
support database will be drastically expanded, including information related to thesuccession of land, buildings, facilities, and other management resources.
• While promoting the use of the business succession tax system for corporations drastically
expanded in 2018 and the individual version of the business succession tax system createdin 2019, comprehensive support such as budget and tax will be promoted to powerfully
assist business succession, including third-party succession, for the focus period of around10 years. Support measures will be considered in case SMEs without a successor carry out
trial employment of an outside successor.
• To provide seamless support for procuring the necessary funds for founders from businesslaunch to expansion, support will be carried out in a focused manner for founders at thetime of establishment and soon thereafter, including the use of existing subsidies such as
the subsidy for sustainable business and Subsidy for Manufacturing and Service of SME.
• Initiatives that encourage regional angel investors to make investments in local SMEs
including promoting the use of existing tax systems, will be reviewed in order to promote
initiatives that create and foster local companies using local means.
• To encourage start-ups nationwide, start-up support by municipalities and financial
institutions and support for public awareness concerning new business creation will be
provided. In addition, support for entrepreneurs aiming for starting growth-oriented
businesses in regions will be enhanced.

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Provisional Translationⅲ) Promotion of overseas expansion and fair transaction• To execute matching by collecting information on needs and trends in overseas fromoverseas local buyers, trading companies and government-affiliated institution, by
providing them to domestic companies and by providing information concerning domestic
companies with an intent to produce products and services that meet those overseas needs
to overseas companies. In addition, to provide support to encourage the use of overseas
crowd funding and e-commerce by SMEs. Moreover, to provide support for thedevelopment of prototypes, opening up of sales channels, and brand development that meetthe needs of markets.
• Cost reducing pressure of dominant subcontracting entrepreneurs could have been a factor
why SMEs serving as subcontractors could not have increased their wages and capital
investments. Thus, issues related to transactions faced by SMEs in each individual industry
will be identified and competition legislation, SME legislation, and industry’s voluntaryaction plans will be fully utilized to make fined-tuned improvements. Those actions will bebased on priority investigations, including interviews, of subcontractors’ state of businessby investigators of subcontracting relationship, centered on industries with especially large
disparities between main subcontracting entrepreneur and subcontractors, after analyzing
the situation of profits and added value, labor and capital allocation for each industry, sector
and company size. Such investigations will include the actual state of subcontracting
transactions, such as unreasonable demands to lower cost price, situation of passing on cost
increases to prices, and transactional shifting associated with working style reforms. In
addition, collaboration agreements with local governments will be expanded and greater
understanding of business practices based on regional characteristics will be promoted toenhance penetration of transactional rationalization at the local level.
ⅳ) Strengthening of function of assistance agency for SMEs
• Through setting up forums where local financial institutions and Yorozu (one-stop or multitask) support centers and private company/other kinds of human resource support
organizations can work together to secure core human resources who can solve
management issues at SMEs, we will continue to work on the creation and horizontal
development of efforts to secure core human resources through local financial institutions
and universities. In this regard, from FY 2019, we will focus on achieving securing humanresources in collaboration with human resource support agencies so that SMEs can hire
core human resources, including people engaged in sideline work and multiple
employment, through business support organizations, including Yorozu support centers.
(Repeat)126

Provisional Translation• Expand the scope of visualization of expertise and results of SME support organizations,
including the website established in March 2019 to visualize the results of activities ofcertified support organizations. In addition, a database will be developed to visualize theresults of activities of the Core Manufacturing Technology and Strategic Core Technology
Advancement Program subsidies regarding public testing for SME support and universities.
• Efforts will continue to be made to establish an SME support platform with full-scale
operations set to begin from April 2020. Additionally, thereafter, the range of services will
be expanded by promoting collaboration between relevant ministries and agencies, local
governments and commerce and industry groups.
• To form a community for developing human resources of support organizations, including
financial institutions, and SME owners in regions and for sharing practical know-how for
resolving management issues, consideration will be given to set up a forum to learn andpractice business problem solving for SME owners in regions and support organizations,such as financial institutions together. In addition, a progressive service model to solve
management issues of SMEs will be created by dispatching persons with AI skills educatedin universities to utilize data from the fields. Then the best practices will be horizontallyroll out in Japan and abroad.
• Given that the ability of regional financial institutions to provide appropriate advice andfinancial services that contribute to increase productivity of regional companies and toprovide support, for securing management resources can secure their own management
base, the above initiatives will be promoted through deep dialog based on various
information such as characteristics of individual financial institution, company evaluations
by their customers, and the situations of regional finance and industry.
• To strengthen the fuction of regional financial institutions to support regional companie, theactivities of Japan Human Resources Co., Ltd. and the Regional Economy Vitalization
Corporation of Japan (REVIC), which focuses on the transfer of know-how to regional
financial instituions, will be further promoted.
• To vitalizate regional economies, regional financial institutions will play important roles, forinstance, to promote business succession and business turnarounds. Thus, a review will be
conducted on revising restrictions of the voting right ownership (the so-called 5% rule) inorder to make regional financial institutions easier to support companies’ businesssuccession and business turnarounds while paying due attention to securing soundness ofregional financial institutions.
ⅴ) Support for regional core companies• To focus support measures such as budgetary support, tax incentive, finance, and regulatory
special exemptions, including the Regional Future Investment Promotion Act to the127Provisional Translationcompanies engaging in business that will drive regional economies, such as Driving
Companies for the Regional Future Support Measures.
• Given that direct connections between regional economies and global markets is vital toregional growth, support will be provided to opening up sales channels and formulating
strategy for business expansion aimed at global markets in order to promote regional-led
innovations that utilize the seeds of regional core companies. In addition, to increase theripple effect toward regional economies, support will be given to the initiatives of regionalcore companies such as service industries creating attractive content that will draw people
to regions, while collaborating also with local governments.
• The specific investment operations of the Development Bank of Japan will be utilized for
promoting the supply of risk money to the growth of regional core companies while taking
into account previous initiatives.
• Regarding support organizations that provide support to regional core companies (industrial
promotion centers, public research organization, universities, private-sector consultants,etc.), networks will be strengthened and efforts made to horizontally roll out effective
support content such as the new use of regional core companies’ seeds and opening up ofsales channels.
• By promoting collaboration between industry, academia, financial instituions andgovernment along with finance from regional financial instituions, regional revitalization
will be promoted by compilating progressive practices in utilizing Subsidies for Businesses
that Create Circulation in Local Economy to encourage creation of new businesses utilizing
regional resources and development of existing businesses in new fields, and bydisseminating them widely to local government, regional financial institutions andentrepreneurs who are interested in new business creation.

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7. Realization of reform across the entire agriculture, forestry and fishery industries(1) Major progress of KPI[KPI]

In the agricultural sector, almost all the business farmers utilizing data intheir workflow by 2025
*Progress will be ascertained based on the Census of Agriculture and Forestry, etc.,with expanded survey items.
[KPI] Use 80% of total agricultural land area by business farmers over the next 10
years (up to 2023) (end of FY2013: 48.7%)⇒End of FY2018: 56.2%[KPI] Reduce business farmer’s production cost of rice by 40% compared to thenationwide average in 2011 over the next 10 years (up to 2023) , reflecting
industry efforts in materials and distribution, etc. (2011: 16,001 yen/60kg)⇒Farmer’s production cost of rice grown in 2017
• Individual management 8 10,995 yen/60kg (32% reduction)• Corporate management 9 11,859 yen/60kg (26% reduction)[KPI] Increase the export value of agricultural, forestry, and fisheries products andfoods to one trillion yen in 2019 (2012: 449.7 billion yen)⇒2018: 906.8 billion yen[KPI] Double the added value of forestry and wood industries derived from privately
owned planted forest by 2028 (2015: 250 billion yen)

(2) New specific measures to be taken
As the number of workers in Japan’s agriculture, forestry and fisheries industries falls andpopulation of its rural villages declines, to maintain and develop agricultural, forestry andfisheries production along with rural villages, efforts must be made to utilize cutting edge
technology such as ICT and to develop and dispatch human resources needed by ruralvillages by establishing a new agricultural structure.
In addition, reforms must be implemented in distribution and processing in the value chain
along with proactive efforts for development an environment that supports agriculture,
forestry and fisheries, including promoting exports and the protection of intellectual

8

Individually managed businesses (rice cultivation area of 15 ha or more) where the income from ricecultivation is equivalent to income from other sources.
9
Corporate entity that participates in rice cultivation in which the income is primarily from the sale rice(average area of rice fields about 22 ha

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properties, etc.
By powerfully moving ahead with this reform, the competitiveness of agriculture, forestry
and fisheries will be strengthened and strong agriculture, forestry and fisheries industries
will be realized despite declining populations.
ⅰ) Acceleration of agricultural reform(ⅰ) Enhancement of production sitesa) Building a powerful agriculture structure and development human resources despitea declining population• To carry out agricultural production in a sustainable manner despite the declining number offarmers, efforts will be made to purchase agricultural produce, increase added value by
processing agricultural produce and adjusting supply volume, etc., farm work agency
services, instructions on good agricultural practices (GAP), and the expansion of new forms
of producers using ICT creatively, etc., while cooperating with farmers without being tied
down by local affiliations.
• The Japanese agricultural direct payment’s system will be reviewed to cope with the
declining number of farmers and diverse initiatives that utilize the unique characteristics ofmountainous regions will be encouraged.
• Efforts will be made to strengthen the functions of prefectural agricultural colleges, etc., asinstitutions of recurrent education for agriculture to address the era of the 100-year life.
• A considerig will be carried out to builda mechanism connecting specialist human resourcesin various fields with rural villages so that human resources with the skills to contribute toresolving regional issues can be dispatched, etc., in FY2020.
• To realize an agricultural industry friendly to women, female farmers will be developed who
will tackle regional issues and reforms will be promoted in the mindsets of agricultural
management entities.
• Group enrollment in mutual aid horticulture facilities will be promoted so that horticultural
agriculture can be carried out in a stable manner.
• Farming-photovoltaics ,where photovoltaics equipment is installed above farmland, will be
expanded nationwide.
• As for agricultural cooperative reform, initiatives for self-reforms will continue to be
encouraged after identifying the status of such self-reforms, even after the end of the focus
period for agricultural cooperative reform.
• To reduce the construction cost of livestock barns, etc., for transforming stockraising into a
growth industry, a review will be conducted on a special law exempting livestock barns, etc.,from the safety standards of the Construction Standards Act, and the prescribed bill will be

130Provisional Translation
formulated.
• As for agriculture-welfare collaboration, nationwide efforts will be made toward matchingboth agriculture and welfare needs, developing agriculture management engaging in
agriculture-welfare collaboration, establishing an environment for the work of people withdisabilities, etc., and the development of specialist human resources, etc.
• Efforts will be made so that a mechanism is developed by FY2022 where AI, etc., is utilized
to gather supply-demand information for agriculture and livestock industries in Japan andabroad in real time, with this data then analyzed and provided.
b) Promotion of farmland consolidation and soil fertilization• Pursuant to the revised Act on Promotion of the Cropland Intermediary Management
Program, efforts will be made to speed up the consolidation of farmland among farmers by
substantiating people and farmland plans via thorough discussions through provision of
information on the actual situation in regions.
• Linked to efforts for the substantiation of farmers and farmland plans, the establishment ofcorporate management entities will be sped up through the dispatch of specialists fromagricultural management consulting offices and the sharing of practices, etc.
• To increase the fertility of farmland, soil fertilization will be promoted based on soil
diagnosis using drones, etc. Also, a data basis of soil diagnosis data including effects ofincreased yield will be developed by FY2022, and agriculture will be promoted that
contributes to increased fertility, such as organic farming, etc.
• Legal framework over fertilizers will be reviewed drastically and the bill will be drafted
promptly, in order to ensure to produce fertilizers that suit farmers’ needs, promote to ulitize
composts and other fertilizers that are derived from industrialial by-products and beneficial
to soil fertilization, and encourage fertilizer producers to be innovative for improvement of
fertilizer production like reducing producing costs, after ensuring the safety of fertilizers.
• In terms of the land improvement business, the competitiveness of agriculture will bestrengthened with the larger zoning and generalized use of farmland-----d, promoting
collaboration with other businesses, while keeping costs down, and resilience measures forreservoirs and agricultural water facilities, etc., will be implemented urgently.
• Comprehensive support measures will be taken to conserve rice terraces and promote thevitalizationof communities with rice terraces.
• Urban agriculture will be promoted by effectively utilizing urban farmland pursuant to the
Urban Farmland Lease Act.
c) Rice policy reform• Promote the introduction of highly profitable crops and make rice policy reform take root
through the provision of detailed information and support for full utilization of rice paddies

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so that farmers can choose crops based on theris own management decisions• Reduce rice production cost through the promotion of establishment of cultivation
techniques in the regions to ensure the introduction of high yielding rice varieties, as well as
through diversification of cropping seasons.
(ⅱ) Promotion of the reform in the value chaina) Distribution and processing, etc., reforms• Industry restructuring, etc., will be promoted pursuant to the Act on the Support forStrengthening Agricultural Competitiveness as well as improving efficiency in distribution
and the rationalization of distribution using ICT, etc., in order to pursue structural reforms ofthe distribution and processing of agriculture, forestry and fisheries products, etc.
• Aiming to lower prices of agricultural production materials, the target sectors under the Act
on the Support for Strengthening Agricultural Competitiveness will be revised in FY2019
and initiatives will be strengthened for the restructuring , etc. of the production materials
industry.
• To promote the business diversification of agriculture, forestry and fisheries, efforts will bemade to encourage initiatives for primary processing where agriculture, forestry and fisheriesbusinesses work with other sectors and for collaboration between processing/sales andcountryside stay, etc. In addition, appropriate responses will be carried out for the capitalneeds of agriculture, forestry and fisheries businesses, etc.
• Through review of commercial practices such as delivery deadlines and intensifying
partnerships with Food Bank activity, reduction of food loss and waste will be promoted
nationwide.
• For the purpose of increasing the capturing of harmful wildlife, establishing a safe and secure supply
system of wild game, and expanding the use of wild game including doubling the amount ofconsumption in FY2019 compared to FY2016, efforts will be made to promote smart

capturing by ICT and creating of an information network concerning place of origin for users.
b) Protection of intellectual properties, etc., and enhancement of border quarantine• A review will be carried out for enhancing the variety registration system so as to preventthe outflow of seeds and seedlings and promote the sustainable use of high quality varieties.
• A review will be carried out on appropriate distribution management and protection fromthe standpoint of preventing the inappropriate outflow of Japanese beef cattle genetic
resources overseas.
• Border quarantine will be strengthened, including the use of quarantine detecter dogs, toaddress the incursion risk of animal contagious diseases and plant pests .
(iii) Promotion of smart agriculture132

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In order to develop an environment for the steady and full-scale implementation of smart
agriculture by FY2022; e.g. developing smart agriculture technologies viable in various fields
and building a consulting system on smart agriculture for farmers etc., following initiatives
will be promoted in unison, in accordance with “the Program for Promotion of New Farming
Technology Implementation (decided by the Headquarters on Creation of Regional Vitality inAgriculture, Forestry, and Fisheries on June 7, 2019).”a) Research and development• Research and development will be carried out with an eye on implementation in the field
considering farmers needs, with priority given to research and development of blank domains
in regions and commodities, so that smart agriculture technologies in tune with various
commodities and regions including hilly and mountainous

areas can be supplied to the fieldat an acceptable price.
• The AI human resources of the National Agriculture and Food Research Organization will
be strengthened to build an agricultural version of an ICT human resources bank and highquality AI research will be pursued so that AI research in the agriculture field is expanded
nationwide and contributions are made to problem solving on the frontlines of agriculture.
b) Demonstration and Extension• Efforts will be made to gradually expand and enhance classes incorporating smart agriculture,
which will then be rolled out to agricultural high schools as well, so that smart agriculture
becomes a part of curriculum at all prefectural farmer’s academies nationwide.
• Forums and matching events, etc., will be held nationwide and efforts will be made toprovideinformation to farmers directly through the use of the online system foradministrative procedures, so as to expand opportunities for farmers to obtain the informationof smart agriculture technologies.
• Efforts will be made to verify smart agriculture technologies as an integrated system fromproduction to shipment and to build a smart agriculture technology system for individual
places of origin and commodities, with the aim of building and implementing smart
agriculture technology systems for major agriculturalcommodities of each prefecture.

• Efficient usage models such as the joint use of smart agriculture machineries and systems
and work consignment, etc., will be proposed. At the same time, an environment to encourage
the entry into the smart agriculture field by private-sector businesses from various sectors
will be developed.
• Efforts will be made for extension advisers, etc. to acquire knowledge and technology
utilization methods, aimed at providing consultations for farmers

concerningsmart

agriculture, where extension centers nationwide serve as first contact.
• Safety guidelines will be developed in conjunction with the commercialization of smart

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agriculture machineries as necessary.
c) Development of environments• Reviews and development will be carried out for the expansion of agriculture and ruralvillage development compatible with smart agriculture, such as autonomous agriculture
equipment and ICT water management, etc. Efforts will be made to develop an information
network environment.
• Efforts will be made toward the development of farms in hilly and mountainous

areas withan eye toward the realization of smart agriculture and development of an environment
compatible with the characteristics of fruit farming, etc.
• The accumulation and provision of diverse data in Agricultural Data Collaboration Platforms
will be promoted, and development will be carried out aimed at the establishment of an
expanded Smart Food Chain System, including not only agricultural production, but also
processing, distribution and consumption.
• The launch of a food distribution platform will be supported using the plan certification
system of the Food Distribution Act. In the fields of logistics, product management, andpayments, data sharing and utilization along with initiatives for reducing manpower andlabor will be promoted for the implementation of a platform for each initiative.
ⅱ) Promotion of export• To increase sales of agriculture, forestry and fisheries products and foods overseas, theGlobal Farmers / Fishermen / Foresters / Food Manufacturers Project (GFP) that diagnoses
exports for producers will be reinforced and efforts will be made to strengthen the proposal
and advisory functions for producers through the encouragement of exchanges between
export trading companies.
• Global producing areas compatible with overseas needs and regulations will be created, andprojects linking producing areas and ports will be sped up.
• In response to overseas food safety regulations, etc., domestic responses will be increased,
including speeding up certification of facilities compliant with the standards of destination
countries. A review will be conducted, including on creating legislation, and system
improved, in order for uniform government negotiations aimed at removing and relaxing
regulations.
• During FY2019, packaging material suited to overseas transport will be investigated andmade known, while a review will be carried out on the creation of standards.
• Efforts will be made for foreigners visiting Japan to experience food, travel, and history, etc.,
and to build an environment for them to continue experiencing Japanese food even after134

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returning to their home country.
• Initiatives for promoting exports will be steadily implemented pursuant to the Agriculture,
Forestry and Fisheries Export Reinforcement Strategy (compiled by the Headquarters on
Creation of Regional Vitality in Agriculture, Forestry, and Fisheries on May 19, 2016) andthe Agriculture, Forestry and Fisheries Export Infrastructure Development Program (decided
by the same headquarters on November 29, 2016).
• Taking the opportunity of the Tokyo 2020 Olympic and Paralympic Games, the strategic use
will be promoted of intellectual properties and such standards and certifications asinternational standard GAP, Japan Agricultural Standard (JAS), organics, geographicalindications (GI), and eco-labels for fisheries, etc.
• Increase demand for rice both domestically and abroad, such as expansion of rice export
including non-gluten rice flour, taking opportunity of the Olympics and the lifting of theexport ban on Niigata rice to China.
• To promote overseas business of Japanese food industry for meeting the global food demand, a plan
will be established in 2019, and effort will be made to hold bilateral policy dialogs andestablish a food value chains with joint public-private cooperation collaboration, etc.
ⅲ) Forestry industry reform(ⅰ) Accumulation and expansion of log production• In the forest management administration system, the integration and consolidation of forest
management administration will be promoted while utilizing the forest environment transfer
tax. At the same time, priority will be given to forestry road network development andintroduction of high performance forestry machines

along with increasing the scale andefficiency of saw mills, etc.
• As for forest owner’s cooperative associations, a review will be carried out for diversifying
collaboration methods between unions to address the increasing scale of saw mills, etc.
• Within certain parts of national forests, a mechanism will be created for granting long-term,
stable licenses to harvest trees to forestry business owners, etc., with the desire and capability,
while maintaining the socially beneficial functions of these forests.
(ⅱ) Promotion of the smart forestry, industry (forestry innovation)• Measurement by laser technique, drones, etc. in the collection of forest information andreforestation and development of automatic or remote-control forestry machine in harvesting,transporting, etc. will be promoted to transform forestry into an attractive industry for youth
and women together with various forest owners, including self-employed owners.
• ICT will be utilized for actions on wood production management

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and to acceralate actions

Provisional Translationfor establishment a supply chain that shares data on wood supply anddemand, etc.
• A data base where local governments and private-sector businesses can share forest, etc.,
information will be set up by 2021.
• Fast-growing trees that make reforestation to harvesting possible by a single generation offorest workers will be selected and utilized and labor-saving efforts will be made forreforestation work, etc., through low-density planting and mechanization, etc.
• Research, development and implementation, etc., of manufacturing processes and productsof wood-derived new materials including cellulose nanofibers and glycol lignin will bepromoted.
(ⅲ) Promotion of the use of wood
• Efforts will be made to increase the use of wood, including cross-laminated timber (CLT) in
non-residential buildings such as offices, etc., and middle/high-story buildings, whileobtaining cooperation of the economic world, etc.
• Efforts for the export of high value-added wood products will be promoted in collaboration
with forest owner’s cooperative associations and private-sector companies, etc.
ⅳ) Fishery industry reform(ⅰ) Promotion of the fishery policy reform• To balance appropriate management of fisheries resources and turning fisheries into a growthindustry, fisheries policy reform will be steadily implemented following the Fisheries Policy
Reform (decided by the Headquarters on Creation of Regional Vitality in Agriculture,
Forestry, and Fisheries on June 1, 2018).
• For the management stabilization of fishermen engaging in appropraiate management offishery resources, etc., measures of stabilizing income in the fishery will be led in the prosessof legislation to reinforce its function.
• To facilitate the funds procurement of aquaculture, efforts will be made to build a businessmodel that contributes to the management stabilization of aquaculture businesses, including
consignment from customers of aquaculture production and establishing financial systems
for business capital, such as feed costs, etc.
• To speed up countermeasures against fish diseases in aquaculture, a “personal veterinarian”
system where aquaculture businesses can consult on a daily basis will be established. Also
numerical targets will be announced for increasing the number of veterinarians with in-depth
knowledge of fish diseases and a mechanism will be established making online exams by aveterinarian possible.
• A review will be conducted on development of legislation related to catch certification,

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which is the starting point of traceability.
• Following the Regulatory Reform Implementation Plan (Cabinet decision on June 21, 2019),
legislative changes will be made so that medium-sized fishing boats operating in coastal
waters can be operated by one small fishing boat captain.
(ⅱ) Promotion of the smart fishery industry• Aim to expand the evaluation scope of fisheries resources to all useful fish species (around200) by FY2023 and increase the accuracy of resource evaluation. Utilize ICT to develop asystem for collecting operation and fishing ground environmental information from fishingboats and survey ships and collecting catch information of producing area markets.
• Examine and validate fishing and sea condition forecasts so that fishing and sea condition
information is provided to offshore and coastal, etc., fishermen in real time.
• Efforts will be made to establish a nationwide data base sharing marine information alongwith red tide and current information, etc., for realizing data-based, efficient and stableaquaculture.
• To address the declining number of fishermen and secure youth fishermen, efforts will bemade to develop, verify and promote fishing and aquaculture technology using cutting edge
technology such as ICT.
• Efforts will be made to build and implement a fisheries value chain producing area that
increases the high added value of products and promote automation and labor-saving work,through collaboration with stakeholders from production to distribution, processing and sales,utilizing cutting edge technology such as ICT.
• The fishery data collaboration platform (tentative name) that supports fishing andaquaculture based on fisheries resource management and data will be established and placed
into operation by 2020. A review of specific initiatives for smart fisheries will be conductedin FY2019 during industry-academia-government discussions.

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8. Tourism, Sports, and Culture and the Arts
(1) Major progress of KPI[KPI] We aim to increase the number of international visitors to Japan to 40 million
in 2020 and 60 million in 2030
⇒In 2018: 31.19 million (in 2012: 8.36 million)[KPI] We aim to increase the amout of consumption by international visitors to Japanto 8 trillion yen in 2020 and 15 trillion yen in 2030
⇒In 2018: 4.5189 trillion yen (in 2012: 1.846 trillion yen)
[KPI] Expand the sports market size to 10 trillion yen by 2020 and 15 trillion yen by2025⇒In 2015: 5.5 trillion yen*A method of estimating the size of the sports market is to be designed in a mannerthat is continuously available and internationally comparable, with the cooperationof the Development Bank of Japan, Inc . Evaluation will be conducted once thelatest numerical data is obtained.
[KPI] Build 20 stadiums and arenas around the country as places of interaction andexchange where diverse generations gather from the period of 2017 to 2025
⇒About 10 projects have newly entered the design or construction phase by March
2019. In addition, there are more than 80 other stadiums and arenas in theconcept making or planning stages nationwide.
[KPI] Expand GDP of arts and culture to 18 trillion yen (about 3% of GDP) by 2025
⇒In 2016: 8.9 trillion yen (In 2015: 8.8 trillion yen)*Consideration is underway with the United Nations Educational, Scientific andCultural Organization(UNESCO), regarding international indicators measuring
the economic value of culture.

(2) New specific measures to be takenⅰ) Realization of a tourism-based country
Tourism is the decisive factor towards achievement of regional revitalization and a pillarof the growth strategy toward a GDP level of 600 trillion yen. Based on the "Tourism Vision
to Support the Future of Japan" (adopted by the Council for a Tourism Vision to Support
the Future of Japan on March 30, 2016) and the "Tourism Vision Realization Program2019" (adopted by the Ministerial Conference on Promotion of Tourism-oriented Country
on June 14, 2019) etc., the Government will promote efforts toward realization of a worldclass tourism destination.
In doing so, the government will urgently implement efforts to develop such environment138

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to ensure that international visitors enjoy Japan in the truest sense, as multilingual signages
and announcements and free Wi-Fi, etc. In addition, the government will develop newcontents in the local areas that international visitors can enjoy, such as opening of public
facilities for night-time use, etc. Furthermore, the appropriate division of roles andreinforcement of collaboration between the Japan National Tourism Organization andregions (local governments and DMOs) will be promoted, and efforts will be made to
implement centralized promotion through the Japan National Tourism Organization and todevelop environment for international visitors in regions, etc.
( ⅰ ) Development of environment where international visitors can truly enjoysightseeinga) Tourist destinations• Drastic improvements will be made at major tourism areas (at least around 50 tourism areas
in FY2019 and 100 by FY2021), through enhancing multilingual support (English, Chineseand Korean), installation of free Wi-Fi, and offering of cashless payment options, etc.
• The introduction of a multilingual voice translation system will be promoted at restaurants
and retail stores, etc.
• Efforts will be made to promote the spread of tourism information services using cuttingedge technology such as AI chatbots 10, etc., in order to reinforce the functions of tourist
information centers for international visitors.
• To promote tourism-centered town development, efforts will be made to enhance the qualityof historical tourism resources, introduce shared bicycle services, and proceed with removalof utility poles, etc.
• Multilingual support and installation of free Wi-Fi will be promoted at Michi-no-Eki(Roadside Stations), mainly in those regions where rental car use is popular.
• By facilitating the introduction of the paid passenger transportation in personal-use vehicles
and shared ride of taxi, etc., efforts will be made to secure and enhance access (by bus, taxi,
rental car, etc.) to tourism areas in regions.
• Reforms will be promoted to raise profitability of Japanese inns and hotels by improving
productivity in the accommodation industry (establishment of systems where one person can
carry out multiple jobs, etc.) and reinforcing accommodation for international visitors byusing foreign human resources, etc. In addition, making accommodation facilities, etc., fully
barrier-free will be promoted ahead of the Tokyo 2020 Olympic and Paralympic Games.
• In addition to increasing the number of tax-free shops in regions, development of theenvironment for offering cashless payments options and digitalization of tax-free procedures
Chatbots is a term that combines the word “chat” and “robot”; it indicates a software program where acomputer that learns using artificial intelligence (AI) automatically converses with users in place of a real person.

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will be promoted.
• Initiatives under the “Immediate Measures to Secure the Safety and Peace of Mind ofForeign
Tourists during Emergencies” (decided by the Tourism Strategy Promotion Council on
September 28, 2018), such as 24-hour multilingual support at the Japan National Tourism
Organization’s call center, will be decisively implemented.
• By reinforcing information provision in preparation for disasters, such as increasing thenumber of languages available for multilingual dictionaries on disaster prevention andweather information, the Japan Meteorological Agency website, and “Safety tips”, theinformation provision app for disasters, measures for ensuring that international visitors cancontinue their trip peacefully will be enhanced and strengthened.
• Development of the environment to accept diverse international visitors, including Muslims,
will be promoted and the government will disseminate relevant information overseas.
b) Transportation• Based on the International Tourism Promotion Act, multilingual support (English, Chineseand Korean), installation of free Wi-Fi, and offering cashless payment options, etc., will be
carried out. These developments will be promoted on regional railways, etc., with drastic
improvements which are planned for at least 100 lines in FY2019 and 300 lines by 2021.
• To realize world-class transportation services, free Wi-Fi will be set up onboard nearly all
Shinkansen trains during FY2019. In addition, efforts will be made to enable reservations
for the Japan Rail Pass from overseas on the Internet as well as to develop large suitcase
storage areas onboard trains and to facilitate tourist mobility at railway stations, etc.
• By enhancing multilingual support (English, Chinese and Korean) for in-station and onboard
annoucements and websites as well as using QR code, etc., measures to provide information
to international visitors during emergencies on the Shinkansen will be implemented with
common and sufficient levels of services to be providedby each business operator.
• Infrastructure will be installed so that mobile phones can be used in Shinkansen tunnels on
all lines by 2020. As for local line tunnels, a consideration will be conducted on policy toimplement measures, with a conclusion to be reached by around the summer of 2019.
• With regard to MaaS in which travel to local tourism areas is considered as one service andwhich provides integrated services using a smartphone for searching, booking, and payment
relating to railway and bus services, the government will promote the implementation ofmulitilingual services, subscription services (flat-rate service) and other useful services fromthe perspective of international visitors, aim to promote online booking and payment attourist facilities, and intend to realize tourism-type MaaS provided in the way of being
integrated with transportation services. (Repeat)c) Cultural properties and National Parks• Multilingual commentary will be provided that conveys historical background to140

Provisional Translationinternational visitors so that they can enjoy cultural properties and National Parks in thetruest sense. By 2020, drastic improvements of multilingual commentary will be made atmore than 100 locations, including 34 National Parks and 18 UNESCO World Heritage Sites
with high value as tourism resources.
d) Farmstays• Multilingual support (English, Chinese and Korean) and free Wi-Fi will be offered based on
the needs of users at 500 farmstays nationwide by 2020.
(ⅱ) Development of new regional sightseeing contentsa) Cultural properties• Through the creation of tourism contents inspired by the Japan Cultural Expo, supports toinitiatives for “Living History”(development of new contents reenacting historical eventsand lives of the people during the specified time period at cultural properties), and theintroduction about attractiveness of Japanese culture at airports, etc., utilizing cutting-edge
technology such as VR, initiatives that contribute to international visitors’ enjoyment ofJapanese culture and increasing consumption in local areas will be implemented.
b) National Parks• Initiatives for the private-sector use at National Parks will be further promoted aimed atproviding diverse accommodation experiences, including “Glamping”.
• The Government will promote such initiatives as improving the stay environment at user
facilities (introduction of private-sector cafes, etc.), enhancing interactive contents,
improving functions for accommodating international visitors at visitor centers, creating amechanism for conservation funded by users, and increasing information dissemination
about National Parks at Shinjuku Gyoen National Garden.
c) Public facilities and infrastructure• The Government will extend the opening hours of the East Gardens of the Imperial Palace,
given the sharp increase in visitors in recent years.
• To further increase the attractiveness of public openings of the State Guest House, Akasaka
Palace and the Kyoto State Guest House, special guided tours where these facilities arereserved exclusively for the tour group will be held systematically, and around the end of
April 2020 a new facility will open, housing a cafe and other shops to stimulate tourism inthe park in front of Akasaka Palace (State Guest House).
• Efforts will be made to further increase the attractiveness of National Gardens, including the
Kokyogaien National Gardens, etc. Particularly with regard to Shinjuku Gyoen National
Garden, opening hours will be extended up to 7:00pm and efforts will be made to extend
openings of the Old Imperial Rest House as well as to introduce private-sector cafes andutilize it for night-time events, etc.
• To expand public openings of the Imperial Household’s rare artworks housed at the Museum

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Provisional Translationof the Imperial Collections, exhibitions in partnerships with regional museums and art
museums will be promoted and construction will begin on the Museum of the Imperial
Collections in order to drastically expand exhibition spaces (the entire museum is slated toopen in 2025).
• Infrastructure tourism will be promoted at the Metropolitan Area Outer Underground
Discharge Channel, etc.
d) Stays in Japanese traditional houses, castles, and temples, etc.
• Efforts will be made to promote the further use of Japanese traditional houses, etc., and todevelop experiential accommodation content for enjoyable stay experiences, such as castle
stays and temple stays, etc. In addition, good renting of private houses and rooms will bepromoted.
e) Farmstays• Efforts will be made to improve private farm accommodations and Japanese traditional
houses and to enhance contents of stays, such as farming experiences, etc., for farmstays
suited to user needs.
f) Tourism destinations and transportation• To vitalize night-time tourism, initiatives will be promoted that encourage night-time tourism
involving the entire community through collaboration between diverse actors, such as thenight-time operation of restaurants and public transportation, etc., as well as initiatives todevelop night-time contents.
• The introduction of tourism trains and restaurant buses that make mobility fun and Cycle
trains corresponding to new tourism needs will be encouraged.
• As for snow resorts, which represent effective contents towards long-term stays andincreasing consumption in regions, snow resort reforms will be promoted aimed at
reinforcing international competitiveness by offering financial assistance, etc., formultilingual support and upgrading facilities.
• To energize beach resorts, initiatives will be promoted to ease restrictions on the use ofbeaches (year-round use or extension of occupation periods, etc.) and open up disasterprevention facilities, etc., to tourists during normal times, through collaboration between
coastal administrators and various actors.
• Initiatives will be created nationwide to increase the added value of tourism resources andas a result, increase consumption in regions, by introducing cutting-edge technology such as
VR/AR and combining existing experiential contents with high quality guides, such as
guided bicycle tours, etc.,.
• With the collabolation between the Ministry of Health, Labour and Welfare and the Japan
Tourism Agency, efforts will be advanced to make improvements for accepting international
patients at medical institutions, including developing a list of medical institutions that can
accept international visitors while efforts will be made to encourage international visitors to142

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enroll in travel insurance. In addition, acceptance of international patients will be promotedusing regional health care resources or unique tourism resources in regions, such as hot
springs, etc.
• To increase satisfaction and consumption by cruise passengers, etc., efforts will be made to
develop appealing experiential programs at ports of call, including ports capable ofaccommodating international cruise ships, to guide cruise passengers to local shopping
arcades, and to build collaboration with cruise ship operators, etc.
• To attract high-income groups, efforts will be made to develop fly-and-cruise travel products,
expand capacity for super yachts, and promote tourism on remote islands .
(ⅲ) Appropriate division of roles and strengthening of cooperation between the Japan
National Tourism Organization and regions (local governments and DMO)
• Specify and make known that the role of regions (local governments and DMOs) is to workfor developing an environment for accommodating tourists, including multilingual support,
free-Wi-Fi, and enhanced transportation access to tourism areas, and for developing newcontents that international visitors will enjoy. In addition, efforts will be made for the Japan
National Tourism Organization to centrally administer information on the attractiveness ofregions and promotions for regions. Specifically, the creation of materials and tools forexternally disseminating photographs and videos on such improved environment will bepromoted and, using these tools, the overseas network of the Japan National Tourism
Organization and digital marketing technology 11 will be fully harnessed to centrally
disseminate the attractiveness of regions from the Japan National Tourism Organization.
Therefore, drastic structural reinforcement will be made to the Japan National Tourism
Organization after reviewing its entire structure.
• Considering the role of the regions as mentioned above, the involvement of various
stakeholders in the regions will be encouraged, including local accommodation providers
and activity businesses, etc.
• Through close collaboration between relevant ministries, agencies and the Japan National
Tourism Organization, the website of the Japan National Tourism Organization will be used
to centrally disseminate information about attractions such as cultural properties, nationalparks, and farmstays, etc.
• Large-scale promotions (global campaigns) offered mainly to Europe, North America andAustralia will be expanded to include East Asia (China and South Korea, etc.), andprogressive promotions that directly reach the attribution and interests of individuals will be
deployed using ICT, etc. In turn, a mechanism will be established to realize a positive cycle

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Technology for analyzing website browsing history, etc. to understand the interests and tendencies of eachcountry and field.

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for providing analyzed data on user attribution and interests, etc., to regions (local
governments and DMOs). In addition, the advanced human resources of the Japan National
Tourism Organization will be utilized, etc., to reinforce consulting services for each region
using digital marketing technologies.
• Nationwide training and the use of an information sharing system between DMOs, etc., will
utilized to enhance horizontal collaboration between regions (local governments and DMOs)
and to share and roll out good practices to address issues facing regions.
• In order to develop and secure necessary human resources at DMOs, support will be
provided for the development of core human resources and the appointment of outsidehuman resources, etc., such as making known the use of the JET Programme, etc.
• To capture demand from East Asia, which accounts for a vast majority of the inbound market,
and to develop new markets for attracting visitors from a broad range of regions, local officesof the Japan National Tourism Organization will be opened in such markets that are expected
to grow, including the Middle East and Latin America and trial promotions will be offered
there as well.
• Efforts to disseminate information to overseas media and to attract visitors to regions, etc.
will be made with fully utilizing the Rugby World Cup 2019.
• New experiential programs will be developed involving collaboration between regional
universities, etc., and DMOs, etc.
• For regional railways working on multilingual support and installation of free Wi-Fi, etc.,
the appeal of tourism trains, etc., will be disseminated overseas through the Japan National
Tourism Organization.
• Information dissemination, etc., will be increased through the promotion of host towns.
(ⅳ) Other major measures contributing to attracting visitors to regions and increasing
consumptiona) Facilitation of immigration• The physical and personnel structures required for Customs, Immigration and Quarantine(CIQ) will be developed systematically, through introducing new facial recognition
automated gates at New Chitose Airport and Naha Airport, and electronic customs proceduregates at Haneda Airport and others. In addition, FAST TRAVELwill be promoted thatsignificantly reduces the time it takes toimmigration procedure, by automating boarding
procedures and centralizing them with facial recognition, facilitating the transport ofbaggage, etc., facilitating boarding procedures at regional airports, and improving
environment for business jets, etc.
b) Strategic relaxation of visa requirements• Visa requirements will be relaxed strategically, in collaboration with development ofenvironment for receiving international visitors by entire government and promotions of the144

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Japan National Tourism Organization, etc., with an eye on international events, etc., planned
to take place in Japan. In addition, efforts will also be made to develop the physical andpersonnel structures related to visa screenings at overseas diplomatic missions.
c) Airports• The annual departure and arrival capacity of Tokyo metropolitan airports will be increased
to around one million flights, which is the world’s highest level.
• In order to increase international flights at Haneda Airport by 2020 with a focus onaddressing rising inbound demand and increasing international competitiveness, annual
departure and arrival capacity will be increased to around 40,000 flights by carrying out
careful information provision, etc., and initiatives to review flight paths, etc.
• As for Narita Airport, too, annual departure and arrival capacity will be increased to around
40,000 flights by 2020 by developing rapid exit taxiways during FY2019. In addition,
starting with the winter schedule, restrictions on night-time use of Runway A will be relaxed,
while steady progress will be made with initiatives for developing the third runway, etc., inan effort to increase annual capacity to about 160,000.
• Enhancement to the functions of hub airports, such as runways expansion at Fukuoka andNaha airports, training of pilots, etc., and reinforcement of accommodation structure forground support operations with labor-saving and automation, etc., will be carried out toaddress rising demand at airports. In addition, safety measures will be promoted with theintroduction of cutting- edge technology, etc.
• Airport concession projects will be promoted, including the integrated operation of seven
airports in Hokkaido.
• Through supports for reducing landing fees at regional airports, etc., air route networks inJapan and abroad will be enhanced and international visitors’ travel to regions will be
encouraged..
• The Government will enhance the hospitality by disseminating, etc. the attractiveness ofJapan at airports.
d) MICE and IR• Efforts will be made to increase the international competitiveness of MICE attraction andhosting by attracting MICE using VR, etc., and introducing cutting-edge technology for
MICE such as facial recognition, etc.
• Based on the the Act on Promotion of Development of Specified Complex Tourist Facilities
Areas, appealing stay-type tourism that is highly internationally competitive will be realized
by steadily establishing a casino administration committee, implementing regulations, andformulating a basic policy, and the policy effect will be brought out as soon as possible. In
addition, sufficient countermeasures will be taken to address various concerns such as
addiction, by the world’s highest-standard regulations over casino.
e) Sustainable tourism area development

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Provisional Translation• Coutnermeasures for congestion at tourism areas will be promoted through introducing asystem for checking the congestionat tourism spots with a smartphone and utilizing earlymorning hours, etc. Also, sustainable tourism indicators will be developed that contribute totourism area management considerate of local communities.
f) Utilization of Iinternational Tourist Tax• Based on the "Basic Policy etc. for the Use of the International Tourist Tax", the tax revenue
from the International Tourist Tax will be utilized to enhance and reinforce tourism
infrastructure toward the realization of a world-class tourism destination.
g) Outbound tourism and domestic tourism• Toward the further promotion of outbound tourism, initiatives for creating overseas travel
products through public-private collaboration will be further expanded. In addition,dissemination functions for overseas safety information will be reinforced, including the useof IT technology and the shared platform for overseas safety information so that travelers
can have safe and secure trips abroad.
• Renovations, etc., of old private houses will be promoted using the tourism related fund, etc.,
set up by the Regional Economy Vitalization Corporation of Japan and the Development
Bank of Japan. In addition, efforts will be made to further promote domestic tourism throughvitalization of night-time tourism and enhancement of experiential contents, etc.
• A consideration will be carried out on the spread of new travel formats combining businessand tourism, in conjunction with the requirement that all employees take at least five daysof annual paid leave based on Work Style Reform Act’s.
h) Tourism revitalization in Tohoku• In order to increase the number of overnight guests from overseas throughout 6 Tohoku
prefectures to 1.5 million by 2020 (3 times the amount in 2015), efforts will be made toenhance tourism resources, to provide focused supports for Rebuilt Tourism Hub Cities, andto support domestic tourism projects in Fukushima Prefecture.
i)Promotion of the formation of “Tourism Nation Showcase”• Relevant ministries and agencies will cooperate to offer preferential support mainly
dedicated to the priority issues identified by Kushiro, Kanazawa, and Nagasaki cities
respectively, and will attempt horizontal application of their practical cases to other areas.
j) Tourism statistics• A consideration will be conducted toward improving ways of estimating tourism statistics,
including the potential to use private-sector data, etc., in order to more accurately grasp
regional tourism traffic and consumption trends.
ⅱ) Future development of the sports industry(ⅰ) Forming the foundation to make sports into a growth industry• A governance code for sports organizations will be formulated and a mechanism for its

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implementation will be established during FY2019, in order to encourage management
reforms with both wheels of the governanceand increased profitability of National

Federation. A manual on the promotion and marketing strategy will be formulated during
FY2019 and an advanced model will be formed. Furthermore, a review will be conducted
on new support mechanisms in order to promote management reformat National Federation,
including securing a financial base.
• To develop human resources in sports management, support will be provided to develop new
curriculum on sports business for existing MBA courses, and external human resources will
be encouraged to join sports organizations through matching.
• In order to speed up the establishment of sports open innovation platforms intended to create
new businesses through the combination of sports and health care industries, a conference
will be held involving companies, universities, and sports organizations. At the same time,
verification of new businesses through tie-ups with sports groups and start-ups andcommercialization related to financing will be promoted.
• To speed up sports tourism initiatives, support will be provided for cultivating anddeveloping sports tourism contents and initiatives for disseminating information overseas
through collaboration with the Japan National Tourism Organization, focusing on the key
themes of outdoor sports and martial arts, while reinforcing collaboration with relevant
ministries and agencies. These efforts will be rolled out horizontally while gathering
information on issues and good practices. Particularly with regard to martial arts tourism, a
review will be carried out with the aim of establishing a promotion organization in 2020 withthe assistance of relevant entities.
• As for university sports, support will be provided to the activities of the Japan Association
for University Athletics and Sport and universities, aiming to achieve appropriateorganizational management, to transform university sports into a growth industry, and toencourage regional promotion.
(ⅱ) Regional vitalization withsports• Support to stadiums and arenas based on individual needs will continue to be provided
through collaboration with relevant ministries, agencies and organizations. A new evaluationand verification method for economic as well as social effects of stadiums and arenas to acommunity will be developed around FY2020.
• Through the development of a “sports accessibility indicator” (provisional name) during
FY2020 that comprehensively evaluates the number, availability, and information openness,of sports facilities in a community, efforts will be made to diversify and upgrade sports
facility usage as well as increase profitability and boost the vitality of the local economy.
• Medium- to long-term measures for increasing the sports participation rate will be

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formulated around summer of 2019. Promoting collaboration between sports sector andmedical institutions, and collaboration between welfare and education sectors and companies
in sports for the disabled as well as utilization through the visualization and sharing of
information utilizing ICT on community sports resources will be carried out. In addition,
foster momentum will be fostered for people’s participation in sports on occasion of the
Rugby World Cup 2019, Tokyo 2020 Olympic and Paralympic Games, and World Masters
Games 2021.
ⅲ) Economic vitalization through culture and arts(ⅰ) Creating a virtuous cycle through arts and culture based on the 'Basic Plan on the
Promotion of Culture and the Arts' and the 'Strategic Plan on Culture and Economy'• Initiatives will be promoted and national branding will be established, based on the Japan
Cultural Expo, a mega-project for highlighting the beautyof Japanese art, and the Basic
Policy on the Promotion of International Cultural Exchange Events (Cabinet decision on
March 2 9, 2019).
• A positive cycle of investment in culture and the arts and economic growth will beestablished by promoting mutual understanding

and clarifying the initiatives each actor

should implement at venues of dialog involving the art sector, business community, andgovernment. Specifically, a review will be conducted on policy for strengthening thefunctions of museums related to inbound tourism, creating innovation in business, using
cultural and artistic resources and related technologies, and vitalizing the art market, to bringabout initiatives to organize during FY2019. In addition, efforts will be promoted to ensure
the exterior of public buildings are in harmony with the surrounding environment and thatthey display cultural and artistic works.
• The Tokyo National Museum New Era Plan that aims to make the Tokyo National Museum
into a world class facility will be implemented steadily, and the outcomes will be rolled out
horizontally at other museums. In addition, initiatives unique to regions at regional museums
and art museums , such as exhibits of famous works tied to the region owned by the national
government will be promoted, and consideration will be given to a new framework to create
inbound tourism demand related to culture. Furthermore, the legacy of the International
Council of Museums (ICOM) Kyoto Conference 2019 will be utilized to reinforce thefunctions of local museums. Efforts will be made to create a positive cycle by thoroughly
utilizing cultural stock at cultural facilities, such as working to enhance and visualize
collections and improving the qualityof curators.
• Greater use of the films in the National Film Archive of Japan will be promoted. Regarding
cultural contents, a website will be established that includes data base, multilingualcommentary, high resolution images and videos, and access information. Conditions for the148

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digitization and secondary use of works will be developed, aiming at boosting dissemination
capabilities both domestically and abroad.
• Initiatives will be promoted that establish international festivals utilizing Japan’s excellent
media arts, including manga, anime and video games. By developing a hub of information,
increased efforts will be made to disseminate Japan’s media arts to domestic andinternational audiences.
(ⅱ) Regional vitalization centered on cultural and artistic resources• Cultural programs for the Tokyo 2020 Olympic and Paralympic Games will be rolled out
nationally through the Japan Cultural Expo and Beyond 2020 Program for regional
vitalization. In addition, dissemination of information domestically and internationallythrough collaboration with the Japan National Tourism Organization and dissemination ofJapanese culture through cultural and artistic programs and international cultural exchanges
through major sporting events will be increased.
• Efforts will be promoted to comprehensively and systematically preserve and utilize culturalproperties in regions and a model will be built for refining Japanese heritage and utilizing
new economic value of cultural resources, to create a positive cycle for cultural asset
preservation and utilization. Cultural properties will be repaired according to appropriate
intervals while taking into account securing the raw materials and tools. For preventing
dissipation, cultural properties will be purchased and utilized, while information collection
and graspunderstanding of national designations and registrations along with measures toprevent fire, disasters, and crime will be supported.
• Arts education will be promoted at schools and regions through collaboration with cultural
facilities, cultural and artistic groups, and arts education institutes in the community.
Initiatives will also be promoted that further increase opportunities for expression andappreciation by dispatch of specialists. In addition, support will be provided to the culturaland artistic activities for people with disabilities, and an environment will be developed fortheir continued enjoyment of culture and arts, based on the Basic Plan on the Promotion ofCultural and Artistic Activities by People with Disabilities.

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