Overview of the Revision of Japan Revitalization Strategy (June 2014)
Basic Principles for the Revision
 Push forward the changes brought about by the “three arrows” in past 12 months and keep the positive cycle of the economy running.
 Therefore, enhance the “earning power” or the profitability of the country. At the same time, address the areas such as labor market,
health and agriculture, which had not been addressed enough in Japan Revitalization Strategy.
 With the economy almost exiting from the deflation, now is the last chance. Encourage company managers and individuals to takeconcrete actions.

1. Regain the Earning PowerBusinesses Changes Themselves – Enhancement of Earning
PowerChanging the Country
Pro-growth Corporate Tax Reform- aim to reduce the percentage level of the effective corporate tax
rate down to the twenties in several years.
Promotion of Innovation and the “Robot Revolution”- Establishment of a “National System” that create business frominnovative technology- Addressing social challenges by robots and new industrial revolution

Enhancement of Corporate Governance- Drafting of corporate governance code
Reform of Public and Quasi-public Funds- Revision of policy asset mix and enhancement of governance structureof GPIF
Corporate Structural Reforms, Promotion of Ventures, Provisionof Risk Money- Support in conjunction with large enterprises, preferential treatment in
the government procurement, provision of risk money such as equity

2. Reinforcing Workforce– Promotion of Women’s Participation and Working Style Reform
Promotion of Women’s Participation- Enhancement of childcare services forelementary school kids
- Tax and social security systems which areneutral to women’s participation in work

Reform of Working Styles- Measures against overwork- A new working-hour system which place value
on performances rather than the hours worked- Promotion of “diversified regular workers”- Establishment of a transparent labor dispute
resolution scheme

Utilization of Foreign Human Resources- Review of training programs for foreign workers- Acceptance of employees from overseas
subsidiaries in the manufacturing industry- Acceptance of foreign household workers in theSpecial Zones- Utilization of foreign students in nursing care services

3. New Growth Engines and Development of Industries that Play Central Roles in Local Economies
Developing Aggressive Agriculture- Integrated reform of agricultural committees, agricultural production
corporations and agricultural cooperatives- Diversification of distribution channels for dairy farmers- Connecting domestic and overseas value chains (promotion of the“sixth industry” (i.e. collaboration among primary, secondary and tertiaryindustries) and promotion of exports)

Vitalization of Health Industry and Provision of High-quality
Healthcare Services- Establishment of a new non-profit holding-company style corporation system- Introduction of incentives for health promotion and prevention- Expansion of insurance scheme for combined use of medical treatments
covered and not covered by public insurances

Regional Vitalization / Innovation of SMEs and Small Businesses- Establishing a platform to implement measures for regional vitalization as one package- Promotion of regional specialties by SMEs and small businesses and development of strategicindustries- Promotion of the “sixth industry” of agriculture as unified movements in regions, creative
efforts by dairy farmers, development of regions that attract tourists- Realization of infrastructure management utilizing PPP/PFI

Actions for the Further Growth

Structural Reform of the Regional Economies- Consolidation/accumulation and networking of thecity functions, industries and employments- Prevention of population outflow from rural areas⇒ Launching a new headquarter and developing aframework to push forward related policies in a unified
mannerstrategy that will be realized and that evolves / continuing effort for the positive economic cycle / concentrated efforts for thereform, e.g. National Strategic Special Zones