Provisional Translation

Follow-up on the Growth Strategy

July 17, 2020

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1．Establishment of New Work Styles ............................................................ 1(1)Major progress of KPI(2)New specific measures to be takenⅰ)Improving the Environment for Second Jobs and Side Jobs
①Worker Self-Assessment System②Simple Method for Managing Working Hours③Expanding Workers' Compensation Insurance Benefitsⅱ)Improving the Freelance Environment①Formulating Effective Guidelines②Considerations of Legislative Handling③Strengthening Enforcement④Further Utilization of Workers' Compensation Insurance, etc.
ⅲ)Fostering the Creativity of Working Adults (Continuing Education)ⅳ) Promoting Teleworkⅴ) Promoting the Hiring of Mid-Career and Experienced Individualsⅵ)Developing Labor Market Infrastructure that Supports Independent Career
Developmentⅶ) Supporting Work Styles that can Maximize Productivity①Improving the Working Environment, Including Correction of Long Working
Hours②Promoting the "Visualization" of Human Capital Information③Increasing the Minimum Wageⅷ) Ensuring Employment Opportunities Until Age 70ⅸ) Reviewing Pension Systems due to Diversification of Work Styles,
Prolongation of Old Age, and Expansion of Employmentⅹ)Further Expanding Female Participation and Promoting Management
Diversityⅺ) Human Resource Development for Society 5.0 in Primary and Secondary
Educationⅻ) Fostering Human Resources at Universities for the Society 5.0 Eraxⅲ) Fostering and Utilizing Human Resources in Industry for the Society 5.0
Era
2．Review of Payment Infrastructure and Enhancement of Cashless
Payment................................................................................................ 16(1)Major progress of KPI(2)New specific measures to be takenⅰ)Review of Payment Infrastructure①Review of Payment Legislation and Establishment of Financial Services
Intermediary Legislation②Construction of Payment Infrastructure in Conjunction with Progress of theProvisional Translation
4th Industrial Revolutionⅱ)Enhancement of Cashless Payment①Review of Affiliate Store Fees
②Allocation of "Individual Number Points"③ Overseas Expansion of the Japan-Developed Unified QR Codes andUnification of User Interfaces for Touch Payments④ Handling Cashless Payments During Disasters such as Power Supply
Disruptions⑤Promotion of Cashless Payments for Municipal Utility Bills⑥Improving the Cashless Environment via Individual Number Cards, etc.
ⅲ)Review of Regulatory Restrictions on Existing Financial Institutions such as
Banks①Relaxation of Regulations on Other Businesses of Bank Groups② Examine Methods for Restricting Bank Group Investments in BusinessCompanies (5% and 15% Rules)③Maximum Utilization of Resources Held by Bank Groups④Ensure Equal Footing with Other Companies in the Same Industry for Global
Competitionⅳ) Promoting Innovations such as Commercialization of FinTech, etc.
3．Responding to the Digital Market ........................................................ 22(1)Major progress of KPI(2)New specific measures to be takenⅰ)Development of Rules for the Digital Market①Establishment of the Act on Improvement of Transparency and Fairness in
Trading on Specified Digital Platforms②Review of the Act on the Protection of Personal Information③Digital Advertising Market④Development of Rules for Other Digital Marketsⅱ)Refining Regulations Based on Social Implementations of Digital
Technologies①Mobility Field②Fintech and Finance Field③Construction Fieldⅲ)Early Nationwide Deployment of 5G, Promotion of Post-5G, and Promotionof So-Called 6G (Beyond 5G)①Early Nationwide Deployment of 5G②Promotion of Post-5G③Promotion of So-Called 6G (Beyond 5G)ⅳ) International Discussions and Development of Data Flow Rules at the WTO,

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etc. Toward Realization of DFFTⅴ) Promoting DX (Digital Transformation)ⅵ) Ensuring Cyber Security
4．Promotion of Open Innovation ................................................................. 33(1)Major progress of KPI(2)New specific measures to be takenⅰ)Investment in Start-up Companies①Open Innovation Promotion Tax System②Promotion of the Asia DX Project③Creating and Developing Startup Companies that are Active Globallyⅱ)Optimizing Contracts Between Large Companies and Startup Companiesⅲ)Promotion of Business Restructuring, Including Spin-Offsⅳ)Further Expanding Female Participation and Promoting Management
Diversity①Promoting Open Innovation through Industry, Academia, and Government②Higher Education and Research Reforms③Promoting Strategic Intellectual Property and Standards Utilizationⅴ) Next-Generation Industrial Systems①Promoting Data Coordination and Utilization in Supply Chains②Social Implementation, of Robotics Technology③Expanding the Aircraft Industryⅵ) Promoting Corporate Governance Reformsⅶ)Improving the Quality of Information Disclosures and of Accounting /Auditingⅷ) Creating an Environment and Supplying Risk Money in order to
Proactively Invest in Growthⅸ)Developing Financial and Capital Markets that Attract Investors and Lead toIncreased Corporate Valueⅹ) Establishing an International Financial City as an International Financial Hub
for Asia and the World
5. Mobility ...................................................................................................... 49(1)Major progress of KPI(2)New specific measures to be takenⅰ)Utilization of Technological Innovation in the Society 5.0 Era for Measures
Against Traffic Accidents by Elderly Drivers①Promoting the spread of vehicles equipped with collision damage reduction
brakes (automatic brakes) and equipment to inhibit sudden car starts fromstepping on the wrong pedal

Provisional Translation②Creation of a driver’s license restricted to support carsⅱ)Establish a Paid Passenger Transportation System in personal-use
automobiles in Cooperation with General Passenger Automobile
Transportation Business Operatorsⅲ)Social Implementation of Low-Speed and Compact Automatic Delivery
Robotsⅳ) Promotion of a Japanese version of MaaS
①Maintenance and revitalization of mobility in the regions②Combining mobility and logistics services③Fresh urban development and mobility④Acceleration of data linkageⅴ) Acceleration of initiatives toward the social implementation of autonomous
driving①Spreading and promoting autonomous driving②Development of base maps
③Formulation of international standards/Safety evaluation④Human resource developmentⅵ) Promotion of various forms of ground, sea, and air mobility, and logistics
reform
①Establishment of a next-generation mobility system in the air②Promotion of various forms of ground mobility, and logistics reform③Transformation of industrial structure corresponding to the digital age of theseasⅶ) Realization of safe and secure road traffic in light of recent traffic accidents
6．Initiatives in Individual Fields .................................................................. 60(1)Major progress of KPI(2)New specific measures to be takenⅰ)Energy and Environment①Establishing a robust and sustainable electricity supply system②Responding to energy issues and the state of future energy strategy③Promoting green finance④Business-led international roll-out and international cooperation⑤Initiatives in the industry and transportation sectors⑥Initiatives for community, living, the Fukushima Plan for a New Energy
Society, Climate Change and Disaster Risk Reduction, etc.
ⅱ)Oceans and Space①Oceans②Spaceⅲ) “Smart” public services

Provisional Translation①Promoting digital government②Promoting the digitalization of local governments③Realization of “the world's easiest country for companies to do business in”④Radical review of regulations and practices that require face-to-face meetings,
written documents, and the use of stamping seals⑤Promoting the “My Number” card and its active useⅳ) Next-generation infrastructure①Raising productivity in the area of infrastructure, and resolving issues indisaster prevention, transportation, logistics, and cities②Accelerating the introduction of PPP/PFI methodsⅴ) Reform across the whole agriculture, forestry and fishery industry, andrealization of a Smart agriculture, forestry and fishery industry①Accelerating agricultural reform②Promoting exports③Forestry reform④Fishery reformⅵ) Preventing diseases and the need for long-term nursing care
①Health promotion with a view to the 100-year life society, and promotion of
disease/long-term nursing care preventionⅶ) Next-generation healthcare① Securing effective, efficient medical and nursing services that harness
technological innovations②Development, commercialization, and international expansion of outstanding
pharmaceuticals and medical equipment originating from Japanⅷ) Utilization of sandbox systems①Improvement of operation and follow-up after demonstrations②Reviews on continuation and expansion of systemⅸ) Tourism, sports, culture and arts
①Realization of Japan as a tourism-oriented country②Carving out a future for the sports industry③Economic revitalization that leverages on cultural and arts resourcesⅹ)Taking in overseas growing markets①Global expansion of Society 5.0 and achieving SDGs
②Supporting overseas business expansion of Japanese companies③Measures to make use of Japan’s charmⅺ) Promoting the success of foreign professionals①Promoting the acceptance of highly skilled foreign professionals②Strengthening the foundation for residence control and developing online
procedures for status of residenceProvisional Translation

7．Maintaining Regional Infrastructure and Improving SME andSmall Business Productivity.......................................................................... 127(1)Major progress of KPI(2)New specific measures to be takenⅰ) Maintaining Regional Infrastructure①Enacting exemptions to the Act on Prohibition of Private Monopolization and
Maintenance of Fair Trade (shared buses, regional banks)②Early realization of the Super City Conceptⅱ)Improving SME and Small Business Productivity①Coexistence and mutual prosperity of large businesses and SMEs
② Optimizing individual transactions between large companies andsubcontractors③Development of an environment to promote the growth of SMEs
④ Support for digital implementation to improve SME and small businessproductivity⑤ Promoting smooth regeneration and business restructuring to improve
productivity⑥Promoting overseas expansion and strengthening the resilience of supplychains in and out of Japanⅲ) Strengthening of regional measures in the face of population decline①Regional revitalization that realizes a “new normal for everyday life”②Supply of human resources to the regionsⅳ) Promotion of National Strategic Special Zones①Early realization of the Super City concept <reposted>②Promoting regulatory reform that supports the “new normal for everyday life”③Further addition of regulatory reform items

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1.

Establishment of New Work Styles(1) Major Progress of KPIs
[KPI] 2022: 9.0% ratio of hirees who had changed jobs
⇒2018: 8.2%
[KPI] 2025:

51.6% 65-69 years-old employment rate

⇒2019: 48.4%[KPI] 2025:

70% of women continue employment after birth of first child⇒2015: 53.1%[KPI] With regards to computers for students, aim for one computing device for every
student in all grades of compulsory education by 2020.
⇒FY2018: 1 computing device for every 5.4 students[KPI] Have wireless LAN be standard in 100% of classrooms by FY2020.
⇒FY2018: 45.6%[KPI] Have new IT passport tests for exam takers reach 500,000 people by FY2023.
⇒FY2019: 103, 812 examinees[KPI] Certify 150 courses as 4th Industrial Revolution skill acquisition courses by FY2022.
⇒April 2020: 72 courses[KPI] Have the no. of adult students in universities and professional schools etc. reach 1
million people by FY2022.
⇒FY2017: Approx. 510,000 people(2) New Specific Measures to be Takeni)Improving the Environment for Second Jobs and Side Jobs
As Japan enters an era where people have 100-year lifespans, it is necessary to create anenvironment where individuals can choose, from a young age, the way in which they want to work,
and, as for work styles in the "With COVID-19" and "Post COVID-19" eras, there are highexpectations for diverse work styles such as second jobs, side jobs, and freelance jobs.
Looking at the actual situation for this issue, although there has been an increasing trend in recent
years of individuals who want to have a second job or side job, on the other hand, the number ofindividuals who actually have a second job or side job has tended to be flat, and there is an urgent
need, from the perspective of working people, to improve the environment for second jobs or sidejobs.
The reason behind this is that companies are taking a cautious attitude towards approving second
jobs because, under the Japanese labor law system and with regards to second jobs and side jobs,
companies are supposed to manage the total number of working hours from the employee's main
job and from their second job or side job, but "It is difficult to manage and understand working hours

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at second jobs or side jobs." Even in the Council on Investments for the Future's deliberations, it waspointed out that, irrespective of the decline in a company's labor from approving second jobs for
employees, doing so would, on the contrary, increase the company's required number ofmanagement hours, and as such it is important to firmly establish rules on the scope of and ways forcorporate labor management responsibilities so that companies can approve second jobs and sidejobs with peace of mind.
Therefore, with regards to methods for managing the number of working hours, the Labour Policy
Council will deliberate and develop rules in the following directions.
① Worker Self-Assessment System
・A new self-assessment system by workers will be established to understand the start of and hours
worked at second jobs and side jobs, and procedures and forms for the system will be decided. Under
this system, an employee's main place of work will not be held responsible for omitted or false
reports, even if upper limits on working hours are exceeded through overwork at a second job.1② Simple Method for Managing Working Hours
・When an employee's main employer (Company A) approves a second job, the below conditions areapplied so that Company A will not be affected by the employee's second employer (Company B)
and it will be sufficient for Company A to continue managing working hours as usual.
For employees who wish to have a second job and, given the employee's prescribed working hours2
at Company A, the employee's working hours at Company B shall be set so that they are within
the range of total legal working hours or within the regulated upper limit for working hours.3－In the above case, if it is necessary for the employee to work for longer than their prescribedworking hours at Company A, then, by contacting the employee in advance, the employee shallbe able to, as necessary (to be within the regulatory range), shorten4 their working hours at
Company B.
・In addition, as a result of this, it shall be sufficient for Company A, as usual, to pay supplemented
In France, Germany, and the United Kingdom, hours worked at second jobs and side jobs are summed up and included in theupper limit on working hours, and, as for the management method, it is common to have workers self-report the existence of
second jobs and side jobs and their working hours at second jobs and side jobs; if the workers do not self-report or if workers
make a false report then their main employer is not held responsible.
2"Prescribed working hours" are the basic hours that are decided between the employee and each company, not including
overtime, and are usually set within the range of legal working hours.
3
If Company B does not conclude agreements pursuant to Article 36 of the Labor Standards Act, then it is possible for theemployee to work a second job at Company B for the difference between the "legal working hours" and the "prescribedworking hours at Company A." If Company B has concluded agreements pursuant to Article 36 of the Labor Standards Act,
then it is possible for the employee to work a second job at Company B within the scope of the agreements in question for thedifference between the "prescribed working hours at Company A" and the "upper limit on hours stipulated by Company B's
agreements under Article 36 of the Labor Standards Act."
4
Company A shall not be held responsible for violations of the upper limits on working hours if the employee makes false
reports regarding reductions in working hours at Company B.
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wages only for the overtime5 that the employee works at Company A.
③ Expanding Workers' Compensation Insurance Benefits
・Revisions to the Industrial Accident Compensation Insurance Act were enacted 6 to expand thebenefits of workers' compensation insurance in cases of second jobs and side jobs, and there is work
to smoothly implement this revision, calculating the basic daily benefit amount based on the wages
at multiple employers and comprehensively evaluating and certifying work load.
ii)

Improving the Freelance Environment
Regarding freelance work, the Cabinet Secretariat, in cooperation with relevant ministries andagencies, conducted a survey in 2020 from February to March in order to gain a centralized
understand of the actual situation. Then, based on the results of the survey, the All-Generation Social
Security Review Committee considered policy directions and obtained the following conclusions.
It is necessary to create an environment where individuals can choose freelance work from theperspectives of expanding diverse working styles, expanding employment of the elderly throughexpansion of the gig economy, extending healthy life expectancy, and increasing supporters andworkers for social security.
Furthermore, in conjunction with the spread of COVID-19, people who work on a freelance basis
have been greatly affected, and some people have said that when orders are cancelled, etc., that theycannot prove that the job was canceled because a contract document was not issued.
Based on these circumstances, the government will work together to establish the following
protection rules in order to create an environment where people can work on a freelance basis withpeace of mind.

① Formulating Effective Guidelinesa) Basic Approach
・The Act on Prohibition of Private Monopolization and Maintenance of Fair Trade generally applies
to transactions between businesses and freelance employees because it is applied as long as the party
ordering the transaction is a business, even if the counterparty is an individual. Additionally, the Act
against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors generally applies totransactions with certain businesses and freelance employees when the party ordering the transaction
is a business with capital of more than 10 million yen because the Act is applied even if thecounterparty is an individual. As such, it is possible to widely apply the Act on Prohibition of Private
Depending on the company, the prescribed working hours may be set shorter than legal working hours; in some cases
overtime wages will not be paid if the employee's working hours are within the legal working hours, even for overtime, and in
those cases, overtime will be the portion of the employee's hours that exceeds the legal working hours.
6
Effective September 1, 2020.
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Provisional Translationb) Guideline Directions
・The following points will be considered as specific content for the joint guidelines.
(Issuance of Contract Documents)
・ Clarify that it is inappropriate under the Act on Prohibition of Private Monopolization and
Maintenance of Fair Trade (abuse of superior position) for a business that deals with freelance
employees to not issue contract documents or to issue insufficiently detailed contract documents.
・Regarding the issuance of documents for the Act against Delay in Payment of Subcontract Proceeds,
Etc. to Subcontractors, current online issuance of documents is permitted on the assumption that therecipient has consented in advance and that the recipient saves the document, and is provided an
example template for online contract documents.
(Unilateral Changes, Payment Delays, and Payment Reduction Transaction Conditions by theOrdering Business)
・Clarify that for businesses conducting transactions with freelance employees that it is an abuse of
superior position under the Act on Prohibition of Private Monopolization and Maintenance of Fair
Trade and that it is prohibited conduct under the Act against Delay in Payment of Subcontract
Proceeds, Etc. to Subcontractors for the business, with regards to freelance employees, to improperly
make unilateral changes to the transaction conditions or to delay or reduce payment of compensation.
(Application of the Act on Prohibition of Private Monopolization and Maintenance of Fair Tradeto Transactions with Intermediary Companies)
・Clarify that the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade also
applies to transactions between intermediary companies and freelance employees because there arecases of freelance intermediary companies making unilateral changes to transaction conditions.
(If Falls Under "Employment" in Current Laws)
・Even if an individual is working as a freelance employee, clarify that labor-related laws andregulations apply, in addition to the Act on Prohibition of Private Monopolization and Maintenanceof Fair Trade, regardless of the type of contract when (a) the individual is substantially working under
the direction and supervision of the business ordering the transaction, or (b) there is equivalent
compensation provided for labor performed, or (c) there is no entrepreneurialism when looked atfrom the perspective of the relationship between the amount of compensation and the burden ofmachinery and equipment, or (d) "employment" is applicable under current law whencomprehensively considering if there is exclusivity, etc.
② Considerations of Legislative Handling・Although issuance of documents specifying transaction conditions is obligatory under the Act against
Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors, there will be consideration oflegislative measures, including revisions to the Act against Delay in Payment of Subcontract

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Proceeds, Etc. to Subcontractors for issues necessary to protect freelance employees, such as orders
from businesses that have capital of less than 10 million yen.
③ Strengthening Enforcement
・In order to be able to quickly respond troubles with transactions between freelance employees andthe business ordering the transaction, enforcement based on the Act on Prohibition of Private
Monopolization and Maintenance of Fair Trade and on the Act against Delay in Payment of
Subcontract Proceeds, Etc. to Subcontractors will be strengthened by considering increases to thenumber of transaction investigators (Subcontractor G-Men) at The Small and Medium Enterpriseand to the number of staffs at the Japan Fair Trade Commission.
・In addition, ministries and agencies with jurisdiction over industries will revise subcontracting
guidelines for each industry after also reflecting guideline content into promotion standards basedon the Act on the Promotion of Subcontracting Small and Medium-sized Enterprises and will
strengthen enforcement based on these guidelines.
④ Further Utilization of Workers' Compensation Insurance, etc.
・In order to protect individuals who work as freelance employees, there will be consideration of
expanding eligibility of the special enrollment system7 to further utilize workers' compensation
insurance. In addition, mutual aid systems (small business mutual aid, etc.) that allow the enrollmentof individuals working as freelance employees will be further promoted. In conjunction with this,development of remote work environments for individuals working as freelance employees will besupported.
iii) Fostering the Creativity of Working Adults (Continuing Education)
・It is necessary to provide continuing education opportunities for working adults in their 20s and early
30s at large companies in order to refine and step-up their creativity. It has also been pointed out that
one of the reasons for the low markup rate in Japan is that Japanese manufacturing companies
position art and design relatively far from management's focus, instead paying attention to cost andquality.
・For this reason, there will be intensive and medium- to long-term support in order to develop
educational programs that connect businesses to creative ideas based on customer needs andindividual attitudes and to quickly construct a base of universities that put these programs into
practice. Specifically, it will establish an environment where the latest IT and technology necessary

A system for individuals other than workers that allows special participation in workers' compensation insurance forappropriate individuals so that they are protected by workers' compensation insurance similarly to workers when looking at theiractual duties and at the status of accidents occurring, etc.
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for the realization of ideas can be utilized and will be a small group program centered on projecttype lessons in collaboration with companies, developing educational programs in collaboration withboth domestic and overseas art universities that reflect education methods. Therefore, anenvironment in which it is easy to attend these classes will be created, such as by holding classes on
weekday evenings or on holidays and by setting inexpensive tuition fees so that working adults froma diverse array of backgrounds can learn while working.
・In the future, there will be consideration of providing opportunities (presenting results andproducts at exhibitions, etc.) to put this cultivated creativity into practice at business sites andlocations, such as by supporting activity fees and expenses for current students and graduates.
iv) Promoting Telework
・From the viewpoint of preventing the spread of COVID-19, telework introduction and support
will be strongly advanced through subsidies related to setting up and operating telework
consultation centers and to introducing telework in addition to raising awareness of guidelines forappropriate labor management when it comes to telework.
・ To expand the nationwide teleworking footprint, telework utilization from a variety ofperspectives, such as companies' business continuity measures and increasing productivity,
including contributing to preventing the spread of COVID-19 and promoting rural residences,
will be strongly advanced through maintaining telework environment such as maintenance of anarea's optical fiber networks, cultivating human resources responsible for the spread of telework,
dispatching and consulting telework experts, and building a support system for introducing
telework in regions in collaboration with professional groups and commercial / industrial groups
that support SMEs.
v)

Promoting the Hiring of Mid-Career and Experienced Individuals

・In order to expand mid-career hiring and the hiring of experienced individuals, it is necessary forcompanies to review their hiring systems and their evaluation / compensation systems. With regards
to obligatory, periodic, and public disclosure of the ratio of the number of regular employee midcareer hires to the number of regular employee hires for companies with 301 or more employees,
which is based on the Labor Policy Comprehensive Promotion Act that was revised by legislation
partially revising the Employment Insurance Act, the government will work to ensure smooth
enforcement such as by making the contents of the revision well known before it is enforced in April
2021.
・On the premise that learning environments for students have been secured and with regards toappropriate methods of job-seeking and recruiting activities for students and corporations in the
coming era, the direction of responses will be steadily considered, including a review of the "BasicWay of Thinking in Promoting Internships," based on industry-academia council recommendations

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Provisional Translationand progress on the future of recruitment and university education and survey results on the effectsof long-term internships, etc.
vi) Developing Labor Market Infrastructure that Supports Independent Career Development
・Regarding the "Japanese Version O-NET" vocational information site and the "Vocational Ability
Diagnostic Tool" and from the viewpoint of supporting the job-seeking activities of people looking
for work and the recruitment activities of corporations, the aim is to build an organic system that cansmoothly grasp vocational information and recruitment information by, in addition to collaborations
between them, linking with existing systems such as HelloWork Internet Service.
・Regarding a financial relief system for invalid dismissals, as soon as possible there will be a specialist
examination of legal and technical points, and, based on the results, the Labour Policy Council's final
conclusions will be obtained and the necessary institutional measures will be taken.
・At SMEs, support the introduction of HR technologies and disseminate usage examples, and support
productivity improvements and the participation of diverse human resources.
・For individuals at working at large companies but who can be candidates for managing startup
companies, eliminate obstacles when they are changing jobs to a promising start-up company whose
growth is hampered by lack of management personnel, and improve the environment for humanresource pools and matching systems, etc. so that effective job transfer intermediation can be carriedout.
・Consider establishment of an employment environment in which the essential workers who support
society, such as medical / nursing, cleaning, public transportation, and transportation / logistics /electricity / gas / water, etc. personnel, can work with peace of mind.
vii) Supporting Work Styles that can Maximize Productivity① Improving the Working Environment, Including Correction of Long Working Hours
・Continue striving to properly enforce overtime regulations, which have applied to large corporations
since April 2019 and to SMEs from April 2020. In conjunction with this, to apply the regulations tothe construction industry and doctors starting in April 2024, there will be work towards smoothapplication of the law, such as by encouraging and supporting efforts to reduce overtime work andto ensure workers' health, including the necessary legal arrangements, even during the application
grace period for enhancement of consultation systems and thorough dissemination of knowledge
about the systems.
・In consideration of the revised Construction Business Act which will come into effect in October
2020, promote securing leaders in the construction industry through productivity improvements byensuring proper construction periods, work style reforms that equalize construction time, digitizing
procedural applications for permissions, etc., and by a construction career improvement system toimprove the treatment of technicians.

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・Strive to smoothly implement "Equal Pay for Equal Work" (Part-time and Fixed-Term Labor Act,
Worker Dispatch Act) that has been in effect since April 2020. To apply it (Part-time and Fixed-TermLabor Act) to SMEs by April 2021, continue to provide consultation support to SMEs and small
businesses at the Work Style Reform Promotion Support Center, and strive to disseminate
information about the "Initiative Procedures Manual" for business owners and the "Inspection andExamination Manual for Eliminating Unreasonable Treatment Differences" for each industry.
・Based on revisions to the Labor Policy Comprehensive Promotion Act and the Act on Equal
Opportunity in Employment for Men and Women, etc. that have required the establishment of
employment management obligations for business owners to prevent power harassment and thathave strengthened measures to prevent sexual harassment, disseminate information, raise awareness,and support corporate efforts by experts so that SMEs can take appropriate measures.
② Promoting the "Visualization" of Human Capital Information
・Promote companies to build human resource strategies that respond to changes in the businessenvironment, and, from the perspective of improving medium- to long-term corporate value, related
ministries and agencies will work together to clarify the role that should be played by management,
boards of directors, and institutional investors, etc., while at the same time further promoting, in boththe public and private sectors, the "information visualization" regarding corporate human capital.
③ Increasing the Minimum Wage
・Wage increases are the key to realizing a virtuous cycle of growth and distribution, and there havebeen proactive efforts towards them. Amongst these efforts, the minimum wage increased by 86 yen/ hour in a nationally weighted average over the 10 years from FY2003 to FY2012, but the minimum
wage has increased by 152 yen / hour over the 7 years from FY2013 to FY2019. Additionally, there
was an increase of 27 yen / hour in the previous fiscal year, which is the largest ever increase under
the current method. Furthermore, last year, the Cabinet Secretariat decided on a policy of "Aiming
for a nationally weighted average of 1,000 yen / hour at an earlier stage, together with efforts to watch
economic and price trends and consider the disparity between regions, and based on the combinationof the fact that the target annual rate of wage growth has been raised to approx. 3%."・It is important to raise wages in order to drive a virtuous cycle in the economy, and this policy will
be maintained while optimizing SME business relationships. On the other hand, the effects of
COVID-19 on employment and on the economy are severe, and protecting employment in the public
and private sectors is now a top priority issue. For this reason, the Minimum Wage Council willconsider the difficult situation in which SMEs and small businesses are in and examine the minimum
wage for the current fiscal year.

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Provisional Translationviii) Ensuring Employment Opportunities Until Age 70
・In 2020 there were partial revisions to the Act on Stabilization of Employment of Elderly Persons,and it will be smoothly implemented (April, 2021), in consideration of the fact that companies are
obliged to take measures (introduction of any the following: discontinuance of compulsory
retirement age, extending compulsory retirement age until 70 years old, continuous employment
system until 70 years old, or measures other than employment given an agreement between laborand management (a system that continuously concludes business outsourcing contracts until 70
years old, a system that enables continuous engagement in social contribution activities until 70 yearsold)) in order to ensure employment opportunities for individuals until age 70.
ix) Reviewing Pension Systems due to Diversification of Work Styles, Prolongation of Old Age,and Expansion of Employment
・The "Act to Partially Revise the National Pension Act in order to Strengthen the Functions of thePension System" was enacted in 2020, and it will smoothly and successively implement8 expanding
applicability for employee insurance to short-time workers, raising the upper limit from 70 to 75
years old for the age when individuals can select to start receiving their pensions, expanding thescope of continuous employment old-age pension systems that do not stop payments, and increasing
the eligible ages for enrollment in private pensions (defined contribution pensions).
x)

Further Expanding Female Participation and Promoting Management Diversity

・Through revisions to the Act on the Promotion of Female Participation and Career Advancement in
the Workplace and based on the fact that there has been an expansion in the scope of eligibility forthe obligation that general business owners formulate action plans for women's participation and that
information disclosure on women's participation has been strengthened, for smooth implementation
there will be efforts to thoroughly disseminate information on the content of the revisions and support
for consultations and individual visits for companies while promoting cooperation between
prefectural labor bureaus and regional public organizations so that SMEs can steadily makeinitiatives for women's participation.
・ Promote gender investment, which considers in investment decisions factors for women's
participation in companies. Additionally, in order to secure human resources who will become
female officers and executives, promote initiatives in regionally and in the private sector, andenhance and further utilize the Female Leaders Human Resources Bank.
・In the era of 100-year human life spans and in order to build a society where people can make a

The expansion of applicability for employment insurance to short-time workers (step-by-step reduction in corporate size
requirements for businesses) will come into effect on October 1, 2022 and October 1, 2024. The upper limit for the period when
pension payments can be started will be raised, and the expansion of scope for continuous employment old-age pension systems
that do not stop payments will come into effect on April 1, 2022. The increase in enrollment ages for defined contribution
pensions will come into effect on May 1, 2022.
8

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Provisional Translation
variety of choices, there will be promotion of re-entry into the labor market for a diverse array ofwomen, including women who are in their child-raising phase and immediately after their childraising phase, through advanced initiatives such as support for the establishment and utilization of a
"Public-Private Partnership Platform" to support new employment, promotion of the developmentof models that comprehensively support career advancement, and NPOs that work closely with theneeds of women.
・Regarding the development of childcare capacity, in addition to endeavoring by the end of FY2020
to eliminate children wait-listed for childcare, develop childcare capacity for 320,000 children to beable to meet an 80% female employment rate, and continue to provide support. As for securingchildcare capacity after FY2021, to provide appropriate childcare to those who need it, provide
detailed support according to the characteristics of each local municipal body in addition toconsiderations based on the results of "Population Forecasts" for the 2nd Municipal Child andChildcare Support Project Plan.
・Based on the "New Comprehensive Plan for After School Children," there will be steady promotionof the development of further capacity in clubs for after school children. Furthermore, in order tosupport child-raising that meets the diverse needs of various child-raising families, such as whether
or not they are working, there will be further advancement of the establishment of regional childraising support bases and promotion of multi-functionalization.
・To encourage women to continue their careers after childbirth, encourage male participation inchildcare and household chores, and correct the current situation wherein the burden of childcare
and household chores is biased towards women. Specifically, there will be comprehensive
promotion of efforts such as publicity for and disseminating information about the individual
childcare leave system for workers and consideration of a framework that promotes leave in the
period immediately after a spouse gives birth.
xi) Human Resource Development for Society 5.0 in Primary and Secondary Education
・In addition to realizing world-class, high-quality education that utilizes the latest technology for all
students and to enable students to continue learning without anxiety, even in an emergency such as
temporary school closures due to a disaster or infectious disease, there will be careful consideration
amongst relevant parties regarding the development of a learning environment for a new era thatcombines hardware, software, and human resources, such as the planned development of a detailed
guidance system with a small number of people and the utilization of ICT.
・For primary and secondary education, in addition to promoting the development of high-speed andlarge-capacity network environments in schools (school LANs), aim by FY2020 provide one
computing device per student at all levels of compulsory education and work to develop an
environment wherein the computing devices can be fully utilized, including taking the devices backto a student's home. In conjunction with this, provide necessary support systems such as improving

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the quality of teachers and developing human systems for utilizing ICT.
・In additional to these environmental improvements, there will be full-scale introduction of a subjectbased teacher system in the upper grades of elementary school and promotion of an integrated review
of staff allocations, teachers' licenses, and curriculums which cover the 9 years of compulsory
education, starting with flexible handling of the standard lesson hours for each subject, reachingconclusions during the current fiscal year and realizing individually optimized learning that leaves
no diverse child behind. Additionally, for high schools as well, there will be promotion of high school
educational reforms that are compatible with Society 5.0 by fostering human resources through thecurriculum development of advanced and diverse subject contents, irrespective of their humanities /science typing.
・Advance preparations so that all local governments and schools that desire to do so can use "SINET,"
including the utilization of educational resources such as universities in primary and secondary
education and utilization in education and academic research at universities and colleges, andconduct trial implementations by the end of FY2020. Additionally, based on the "Future Learning"build-out package formulated in February 2020, build utilization models of the latest communication
technology (5G) in order to realize effective individually optimized learning and instruction without
restrictions on time or distance. In addition, examine, along with experts, methods to manage andutilize the data in consideration of continuous utilization of learning data, and lay out a direction
during FY2020.
・In light of the importance of overseas educational facilities, consider strengthening their functions
while promoting utilization of ICT and strengthening guidance systems for measures against
infectious diseases, etc.
・In conjunction with promoting development towards the realization of an environment with one
computing device for each child and student, review and verify the effects and impacts of future
methods, from the perspective of enriching learning, while promoting utilization of digital textbooks.
Specifically, commence the review for the current year, including a review of the current rules about
fewer than half of the number of lessons for each subject, and reach a conclusion during FY2021.
・With regards to the Compensation System for Public Transmission of Copyrighted Works forClassroom Purposes, consider necessary support in order to reduce the burden of compensatory
money for full scale implementation from the next fiscal year in addition to smoothly promoting
emergency and special operation of the system, which is non-compensatory for this fiscal year.
・To foster the "ability to use information," conduct surveys, etc. in order to survey and research what
contributes to improving teachers' instructional ability and to quantitatively measure their ability touse information. Additionally, based on considerations of methods, etc. for teacher education,
training, and licensing, by FY2024 aim for high schools to hire one or more individuals, including
diverse human resources in society, per school who are well acquainted with ICT. Furthermore,

12

Provisional Translationconsider the establishment of a flagship university that will take the lead in education teachers thathave high instructional abilities for Society 5.0.
・In order to improve the productivity and quality of learning, create and collect good examples so that
educational data, such as EdTech development and learning logs that realize effective learning withAI, are effectively utilized for children's and students' learning and for teachers' instructions, and aim
to deploy them nationwide.
・Regarding STEAM 9 education, which is cross-disciplinary education utilizing learning in thesubjects of Science, Technology, Engineering, Art, and Mathematics to solve problems in the realworld, by FY2020 create and collect good examples through industry-academia collaborations andregional collaborations, then build an online library of STEAM educational contents by FY2020
while presenting model plans and deploying them to schools nationwide. Additionally, in
conjunction with this, promote experiential activities that contribute to improving non-cognitive
abilities, which are important because of digital society.
xii) Fostering Human Resources at Universities for the Society 5.0 Era
・In order to continue learning at universities, etc. even during the spread of COVID-19, accelerate theconstruction of distance learning environments at universities, etc. in addition to providing necessaryfinancial support to students in preparation for the second and third COVID-19 waves and for the
future development of digitalization throughout society. Additionally, rebuild global strategies for
future higher education while focusing on international trends and in addition to supporting
exchanges of international students from the high school stage, which has been greatly impacted,
and supporting the resumption and continuation of internationalization efforts by universities, etc.
・In order to have students acquire the basic ability to apply mathematics, data science, and AI to theirown specialized fields, regardless of their training in humanities or science, develop model
curriculums for applied basic levels during FY2020 in addition to providing universities andtechnical colleges throughout Japan with teaching materials based on model curriculums for literacy
levels in math, data science, and AI. Additionally, develop a system for development at an early stageof specialized teachers in data science education and statistics. In addition, taking into account thestatus of efforts such as introducing mathematics, data science, and AI education into curriculums,
proactively support universities and technical colleges through focusing on operating expenses andprivate school grants, etc.
・For PhD human resources, the next generation of human resources will be fostered by dispatching
PhD human resources to classes in cooperation with high schools in addition to developing andimplementing, in cooperation with the industrial world and overseas universities, training programs
Cross-disciplinary education to utilize learning in the subjects of Science, Technology, Engineering, Art, and Mathematics tosolve problems in the real world.
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Provisional Translation
for acquiring skills such as advanced data science, and then deploying those training programs.
・Establish a system for universities and technical colleges to certify excellent educational programsin mathematics, data science, and AI that based on the industrial world's needs. Regarding literacy
level, in addition to beginning operations during FY2020, promote the development of collaborative
industry-academia programs centered on the fields of mathematics, data science, and AI atuniversities and technical colleges.
・Promote the active utilization of academic degree program systems that can set curriculums beyond
the boundaries of undergraduate and graduate schools. In conjunction with this, in order to realize awide range of liberal arts education across the humanities and sciences in university education, utilize
the academic degree program systems and undertake concrete efforts towards the construction
multiple new types of educational programs ("late specialization programs," etc.) that balance
breadth and depth from general, university-wide education to graduation education. Additionally, inorder to cultivate top human resources who will lead the world, undertake concrete efforts towards
building educational programs that will draw out "advanced and exceptional students" throughrealization of optimal individual learning from an early stage via advance entry for advanced andexceptional young students into high schools and universities, etc.
・Promote a shift to university education that can foster autonomous learners that survive difficult-topredict eras through promoting the visualization of learning results by collecting and publishing good
examples and by spreading and disseminating information about the "Academic Management
Guidelines" that were compiled in January 2020.
・Steadily implement a common university entrance exam that evaluates academic abilities necessary
for the Society 5.0 era, such as thinking ability, judgement ability, and expression ability. Additionally,
consider including questions about "Information Ⅰ" in the exam from FY2024, including questions
on the utilization of CBT.
xiii) Fostering and Utilizing Human Resources in Industry for the Society 5.0 Era
・AI Quest (problem-solving style human resources development AI) provides a practical learningspace centered on problem-solving style learning carried out by companies in order to discover andresolve management problems at SMEs by applying data science and AI, and will be implemented
full-scale domestically.
・In the "Unexplored IT Human Resources Discovery and Development Project," a new mechanism
to discover human resources with advanced mathematical talents and to foster human resources toinnovate in information processing technology, such as AI technology, will be started from FY2020.
・Regarding cyber security human resources, in order to promote matching between companies andhuman resources, there will be regional development of fostering core human resources who arewell acquainted with information and control systems for important infrastructure and industrial
infrastructure, in addition to clarifying the required duties / roles and necessary skills / qualifications,14

Provisional Translation
etc. In addition, there will be work on fostering security human resources in regional areas, building
a cyber exercise implementation platform that can be utilized by educational institutions, etc., andimplementing "practical cyber defense exercises" for information systems personnel ingovernmental agencies, etc.
・To create a global-scale industry in the ICT field, there will be a review of the (Inno)vation Program,and promotion for bringing disruptive challenges into the world, together with network support todiscover and support human resources who will take up the challenge of disruptive innovation.
・Regarding "regional ICT clubs," places where children, working adults, people with disabilities, andelderly people learn ICT skills like programming from each other, promote dissemination of themto various regions by collecting and sharing good examples.
・With regards to the use of ICT in order to make training content more sophisticated and to efficiently
implement training, consider steps towards introduction and quickly obtain a conclusion in addition
to providing vocational training in manufacturing fields that correspond to the 4th Industrial
Revolution.
Have core technical personnel in a wide range of industrial fields take up the challenge of worldclass technical competitions based on the evolution of technologies such as IT, AI, and digitalization.
In addition, foster moment towards holding the WorldSkills competition in Japan, promoting
initiatives such as strengthening the competitiveness of Japan's competitors so as to contribute to thedevelopment of skilled human resources and improving their position by exposing many people,
including children, to these competitions.
・Develop environments so that all people can continuously learn the ICT skills required in Society
5.0.

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Provisional Translation
2.

Review of Payment Infrastructure and Enhancement of Cashless Payment(1) Major Progress of KPIs
[KPI] By 2025, expand GDP of financial sector to 25 trillion yen.
⇒ 2018: 22.8 trillion yen[KPI] By June 2025, double the percentage of cashless transactions to about 40%.
⇒ 2019: 26.8%* The numerator is the sum of payments made by credit cards, debit cards, electronic money,
and QR codes in 2019. The denominator is the private final consumption expenditure in2019 (in nominal terms, the second preliminary estimates).
(2) New Specific Measures to be Taken
i)

Review of Payment Infrastructure① Review of Regulations on Payment Services Providers and Establishment of Regulations
on Financial Services Brokers
a)Review of Regulations on Payment Services Providers to Enable Remittances over 1 Million
Yen by Non-Banks

・The Amendment of the Payment Services Act10 which develops a new category of money transfer
service providers so that non-banks can handle remittances over1 million yen per remittance, withimposing deposit liability of funds for users was enacted. This will promote the emergence of avariety of more convenient remittance services.
・In addition, this Amendment exempts deposit liability from money transfer service providers who
handle only small amount of money not exceeding 50,000 yen. This promotes the provision of lowcost and convenient money transfer service and improve the user convenience of small amount ofmoney remittances not exceeding tens of thousands of yen used by many people.
b)

Regulations on Financial Services Brokers

・Previously, financial brokerage businesses that handles various financial services on EC sites wererequired to acquire different licenses or registrations of each financial sectors, such as banking,securities firms or insurance companies so that it was difficult to provide a wide variety of financial
services spanning multiple sectors. It had been pointed out that, to enhance utilities of consumers, a
new regulatory framework suited for such financial brokers that provide a wide variety of financial
services on a one-stop basis should be created.
・Based on these opinions, Regulations on Financial Service Brokers (Act on Provision of Financial
Services11) which allows brokerage businesses to handle financial services spanning all financial
This Amendment shall come into effect on a date designated by Cabinet Order within one year after the date of promulgation(promulgated in June 12, 2020).
11This Act shall come into effect on a date designated by Cabinet Order within one year and a half after the date of10

16

Provisional Translation
sectors (banking, securities firms, or insurance companies) with a single registration was enacted.
Users can select the best financial product matching their needs from a variety of financial products,
for example, by comparing interest or fees of them on their smartphones.
② Construction of Payment Infrastructure associated with the Progress of the 4th Industrial
Revolution
Japan's payment systems have a long history and have robust structure, but they have difficultyin adaption to new forms of payment systems. In addition, it has been pointed out that, with a moveto the further progress of cashless payments accelerated by the spread of COVID-19, there are sovarious new comers in cashless payments businesses that there should be more improvement inpayment infrastructure. Based on this recognition, the government will take the following measures.
a)

Review of Bank Transfer Fees

・In the midst of expansion of cashless payments in our daily life with the progress of the 4th Industrial
Revolution, people make payments more frequently and in smaller amounts. On the other hand,bank transfer fees becomes an obstacle to the spread of cashless payments because stores introducing
cashless payments receive their sales from payment service providers through bank transfer.
・For this reason, inter-bank fees, which account for a considerable portion of the costs behind banktransfer fees and having not changed for more than 40 years, should be reviewed. For the review,
from the perspective of securing stable and efficient operation of nationwide payment network
infrastructure, inter-bank fees should be integrated to the system mandated by the Japanese Banks'
Payment Clearing Network (Zengin-Net)12 and and should be lowered to a reasonable level thatproperly reflect costs, while visualizing cost structures.
・To improve the efficiency of the Zengin System, consider measures to improve governance andtransparency (visualizing cost structures, etc.) of Zengin-Net.
・Moreover, to lower bank transfers fees, encourage regional financial institutions to improve cost
structures of their IT systems through its standardization .
b)

Improve Convenience of Frequent, Small Amount Payments

・To improve convenience for users make remittances more frequently and in smaller amounts,
promote the diversification of the fee system that is now mechanically charging fees per remittanceregardless of the total amount of remittance, such as introducing a new fee system charging fixed fee
regardless of frequency of remittances.
・In addition, construction of new settlement system focusing on frequent, small amount payments
will be discussed.
promulgation (promulgated in June 12, 2020).
12
Association that operating the Zengin system.

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Provisional Translation
・Furthermore, with regards to small amount payment services flooded with many participants in themarket, promote interoperability among payment services, such as securing interoperability between
smartphone payment services by banks.
c)Participation of Blue-Chip Non-Banks

・Currently, non-bank payment service providers (non-banks) are not qualified to participate in the
Zengin system, so that they cannot help but to connect to banks when they withdraw funds fromusers and deposit to affiliate stores.
・Therefore, qualifying mark of the Zengin system will be reconsidered to allow the participation of
blue-chip non-banks so that they can reduce remittance costs on their own efforts.
ii)

Enhancement of Cashless Payment① Review of Merchant Fees
・A Guideline requiring disclosure of merchant fees and cycle of deposit to small and medium-sized
affiliate stores has been established, considering that high merchant fees affiliate stores (businesses)
have to pay to payment service providers become obstacles of introducing cashless payments. By
continually utilizing this guideline, the government will encourage further reductions of merchantfees even after the completion of point refund program.
・Regarding communication fees between merchant stores and credit card companies, request areview of the fee system which now charge same fee on each payment transaction regardless of
its amount, so that it can be suitable for frequent, small amount payments.
② Grant "Mainapoint"
・From September of 2020, to promote consumption, the program granting “Mainapoint”13 to
Individual Number Cards holders will start.
③ Overseas Expansion of the Japanese Original Standardized QR Code and Unification ofUser Interfaces for Touch-Type Payments
・Standardization and interoperability of QR Codes should be promoted not only for enhancing userconvenience, but also for securing the global competitiveness of Japanese payment systems.
・From this perspective, though Japan is now flooded with many and different of payment services,
the government will promote overseas expansion of the Japanese original standardized QR code
(JPQR) by securing mutual linking of QR code standards among Asian nations.
・To promote JPQR in Japan, hold hundreds of nationwide briefing sessions for affiliate stores
across the country.
・Additionally, even though Japan's touch-type payments have their own original standards, from13

5,000 points will be granted to users of cashless payment service if they deposit 20,000 yen to the service provider.

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Provisional Translation
the perspective of accommodating inbound demands, we will promote introduction of touch typepayment terminals that can handle multiple standards which differing country-by-country, so as
to meet the touch-type payment standards of both Western countries and Japan,④ Sustain Cashless Payments in Disasters (Power Supply Disruptions etc.)
・In times of disasters, power supply and communications networks can be suspended, so cashless
payment system that consumers and stores can continually handle cashless payment in times ofdisasters should be developed.
・Specifically, we will develop uniformed policy for credit card industry, so that affiliated stores canprocess payments by manually recording numbers on credit cards etc., under condition ofverifying measures for ensuring security of consumer information handled by affiliated stores.
⑤ Promotion of Cashless Payments of Public Utility Charges to Local Governments
・It has been pointed out that local governments have difficulty in introducing cashless payment ofpublic utility charges, so that the government will back up introduction of cashless payments by
local governments through promoting the "Cashless Payments Introduction Manual" for local
governments formulated in April 2020.
⑥ Enhancement of Cashless Payment by Individual Number Cards, etc.
・To sophisticate means of paying benefits from the government and simplify identification and otherrelated procedures at financial institutions, consider linking Individual Number Cards, etc. withbank accounts and benefits for individuals by utilizing the foundation of Individual Number Points.
・Consider the possibility of CBDC in coordination with foreign countries, such as conducting
demonstrative test from technical aspects by the Bank of Japan.
iii) Review of Regulatory Restrictions on Traditional Financial Institutions such as BanksWith the progress of digitalization, review regulations on traditional financial institutions so thatthey can cope with the situation that most of the new entrants develop businesses combining
financial and non-financial services.
① Ease the Regulations on Other Businesses of Bank Groups
・Review regulations drastically during FY2020 so that bank groups can actively engage in sociallysignificant businesses. In the review, with regards to the advanced banking service company system,
consider shifting from the authorization system to the notification system on the condition that they
adopt the fellow subsidiary form that excels in shutting out the risks from the advanced banking
service company and to review requirements to enable active engagement in businesses such as
digitalization, regional revitalization, and SDGs (Sustainable Development Goals), etc.

19

Provisional Translation② Examine the Investment Restriction in Business Companies by Bank Groups (5% and 15%
Rules)
・Regarding investments in business companies by bank groups, while the risk of unlimited liabilities,
the abuse of dominant bargaining positions, and the problem of industrial control by bank groups
should be taken into account, there are great merits, such as increasing bank group’s profits from
dividends and supporting loan customers, so examine what it should be in the future, based onchanges in the society, such as the prolonged low-interest rate and the increasing need for business
revitalization, business succession, and venture companies support, and reach to the conclusion
during FY2020.
・In addition, from the point of ensuring equal footing between bank groups and non-financial
company groups, consider what banks owned by non-financial companies should be in the future
while taking into account the impact on existing non-financial company groups holding banks.
③ Maximum Utilization of Resources Held by Bank Groups
・In order to maximize the utilization of resources held by bank groups, such as human resources, data,and systems, review related regulations regarding incidental business and dependent business so thatthey can operate businesses on advertisements and IT systems during FY 2020.
④ Ensure Equal Footing with Companies in the Same Industry for Global Competition
・Consider the following measures so that Japanese financial institutions can compete with foreigncompanies in the same industry on the same conditions and make Japanese financial and capital
markets more attractive: (a) Ease the regulation on the scope of permissible activities of overseas
subsidiaries of banks and insurance companies, and (b) Exclude the information on overseas
corporate customers from firewall regulations between banks and securities company. In addition,
reconsider the necessity of firewall regulations, including for domestic customers, while paying
attention to securing a fair environment for competition.
iv) Promoting Innovations such as the Commercialization of FinTech, etc.
・Regarding coordination between banks and electronic payment providers, follow up on the transition
from scraping to API that has a higher level of security.
・During FY2020, work on the development of financial services and administrative operations byutilizing innovations, such as setting up a consortium working on finding solutions for issues on data
coordination between FinTech businesses and financial institutions, such as improving security, and,such as holding hackathons to promote compliance with RegTech / SupTech.14

14

RegTech means that financial institutions comply with financial regulations efficiently by practical use of IT, and SupTech

20

Provisional Translation
・Lead international discussions through positive contribution to the Blockchain Governance Initiative
Network (BGIN) to achieve the objects of financial regulations, such as financial system stability,
user protection, and AML/CFT, etc., in the decentralized financial system based on blockchain
technology, where there are no subjects (intermediaries) applying regulations.
・Advise on interpretations of regulations, IT governance, and risk management to make backbone
systems of financial institutions more efficient and sophisticated through the "Backbone System
Front Runner Support Hub" that was newly established in March 2020.
・From the point of facilitating the supply of funds to businesses, promote the digitalization of financial
administration, such as enabling financial institutions under jurisdiction to submit all applications
and notifications to the government in electronic form during FY2021.

means that regulators and law enforcement agencies conduct inspection and supervision efficiently by practical use of IT.

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Provisional Translation
3.

Responding to the Digital Market(1) Major Progress of KPIs
[KPI] Create 50 unlisted venture companies (unicorn) or listed venture companies withmore than $1 billion in corporate value or market capitalization by 2025.
⇒16 companies (as of December 31, 2019)(2) New Specific Measures to be Taken
In addition to improving citizen's convenience and quality of life towards the transition to Society
5.0, it is necessary to accelerate the DX of the economy and society as a whole from the viewpointof citizens as people living their lives in order to promote social change that handles the spread of
the current COVID-19 infection. As such, it is essential to take measures (the digital minimum) toprevent DX disparity so that regional SMEs and elderly people can enjoy the merits of Society 5.0.
Additionally, promoting the DX of the economy and society will create diffusion flows from
centralized cities to regional areas as well as promoting the nationwide development of new digital
infrastructure such as 5G, and it is expected that this will realize "digital rural city states" that enhance
regional vitality and sustainability.
i)

Development of Rules for the Digital Market① Establishment of the Act on Improvement of Transparency and Fairness in Trading on
Specified Digital Platforms
・The Act on Improvement of Transparency and Fairness in Trading on Specified Digital Platforms
was enacted in a way that does not impede innovation while supporting transparency oftransactional relationships. Enforcement15 of this law will make the transactional relationshipbetween digital platform operators and users more transparent for large-scale online malls16 andapp stores.17② Review of the Act on the Protection of Personal Information
・The Amendment Act of the Act on the Protection of Personal Information was enacted from theperspectives of raised awareness with regards to the handling of personal information, the need tobalance utilization and protection of personal information, and ensuring equal footing for foreignand domestic business operators. To facilitate smooth implementation of the amended Act (within 2
years from the promulgation18), in addition to formulation of detailed rules (on processing level) forWill come into effect on a date, within 1 year from the date of promulgation (June 3, 2020), that is specified by a Cabinet
Order.
15

16

A website that aggregates products, etc. from multiple stores into a single website and then sells them.

A website that aggregates software into a single website and then sells it in a download format.
The amended Act will come into effect on a date, within 2 years from the date of promulgation (June 12, 2020), that will be
specified by a Cabinet Order..
17
18

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Provisional Translation
the system of pseudonymously processed information19 created to promote data utilization withincompanies as intermediate forms of information between personal information and anonymously
processed information, clarifications will be made on cases20 where cease of utilization or deletionof retained personal data can be demanded, promoting utilization of the system of pseudonymously
processed information and demand for cease of utilization or deletion.
・Promote examining methods for the unification of personal information protection systems in theprivate sector, national governmental agencies, and independent administrative entities, etc., andsubmit the necessary bill for the ordinary Diet session in 2021. In addition, with regards to thepersonal information protection systems of regional public organizations as well, conduct concrete
examinations, in line with the aforementioned unification of personal information protection systems
and based on adjusting practical issues related to regulations, including unification of ordinances,after sufficiently coordinating with the regional side. As such, from the perspective of comprehensive
and integrated promotion of personal information protection while taking into consideration the
movement for international institutional harmonization, necessary consideration will also be given
to the role of the state when it comes to handling personal information from regional publicorganizations, including increasing the effectiveness of uniformity and coordination by the state
regarding rules and operating interpretations for protecting personal information.
・Regarding "Personal Data Trust Bank" that provide personal data to third parties, during FY2020
there will be a review on handling sensitive information and clarification of selection criteria for third
parties that are provided with information, and, based on the review's results, guideline on
certification of personal data trust bank will be revised by the end of FY2021. Additionally, by
FY2021 put together of data collaboration measures such as standard APIs, models for data
provision contracts between personal data trust banks and other data providers to realize data
portability, and establish of rules for information collaboration and authentication collaboration
between personal data trust banks when individuals use multiple personal data trust banks.
Furthermore, promote international standardization of personal data trust banks business models andcertification schemes.
・In order to promote the utilization of viewership data and establish new business models forbroadcasting, promote field trials towards building a system to collect, analyze, and jointly utilize
viewership data while taking into account the division of roles between the public and private sectors,
and, based on the results, establish guidelines, until the revised Act on the Protection of Personal

The system that allows utilization of personal data without the consent of the principal in question if the data is "processed",such as by deleting the principal's name, on the condition that utilization of the data is limited to internal analyses within thecompany, from the viewpoint of promoting innovation. Note that it is prohibited to provide such processed data to third parties,
except in cases required by laws, because the system of pseudonymously processed information enables to identify specificindividuals through collating the data with other information.
20
Formerly, the right to demand for cease of utilization or deletion of retained personal data was limited to cases of violations of
the law, such as illegal acquisition of data, but this amendment also adds cases wherein individual rights or legitimate interests
may be harmed.
19

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Provisional Translation
Information comes into effect, for personal information protection and the proper handling ofviewership data.
③ Digital Advertising Market
Digital advertising costs have grown to account for 30% of Japan's total advertising costs, but, on
the other hand, a variety of issues in the digital advertising market have been pointed out amidst
increasing domination by platform businesses, such as sudden changes in systems or rules, opacity
in the content of transactions, and dissatisfaction with measures to increase the number of views.
In order to achieve sound and healthy development of the digital advertising market it is necessary
to secure the "possibility of choice" for market participants, including for general consumers, byensuring the fairness of and increasing the transparency of the content of transactions. It is necessary
to return to the users' point of view and request reliable and fair data management from platforms
operators.
Given that the market is rapidly changing, it is necessary to respond from a cross-perspective(competitive policy perspective and privacy protection perspective) approach and to establish aframework that will not excessively obstruct innovation and that will promote solving problems
through innovation.
As for platform operations, there will be a consideration of the pros and cons of adding applicable
entities to the Act on Improvement of Transparency and Fairness in Trading on Specified Digital
Platforms and the establishment of rules seeking the below points will be advanced.
(a) Improve Service Transparency
Encourage competition for the "quality" of services by requesting easy-to-understand information
disclosure regarding the actual state of a service's "quality," such as measures to increase the numberof views, and by requiring third-party measurements of the number of times advertisements are
displayed.
(b) Promote Fair Competition around Data
As for platform operators with an overwhelming competitive advantage due to the wealth of dataobtained through their own search engine, encourage fair competition for data by making it possible
for consumers to easily choose default search engine settings and by asking platform operators toprovide advertising clients with reaction data.
(c) Address Concerns about Vertical Integration
In consideration of concerns that platform operators will preferentially select their own video sites,
etc. over the sites of other companies on advertising mediation services, ensure fairness andtransparency by requiring disclose of measures such as internal rules and system-level allowances.
(d) Ensure Procedural Fairness
In consideration of the fact that system and rule changes by platform operators may be conductedwithout sufficient advance explanation, require prior notice of the time of change and disclosure of24

Provisional Translation
reasons for changes. In addition, require disclosure of key search engine parameters that affect the
number of customers. Procedural fairness will be ensured through these measures.
(e) Respond to Concerns Regarding the Acquisition and Use of Personal Data
With regards to the acquisition and use of personal data, there are questions as to whether
explanations to individuals and consent based on these explanations are effectively functioning, so,in consideration of this problem, require disclosure of information regarding the state of internalmanagement of personal data, etc. and disclosure of a clear and easy-to-understand privacy policy.
④ Development of Rules for Other Digital Markets
・In order to further strengthen the enforcement of the Japan Fair Trade Commission against
antitrust violations by digital platform operators, actively develop and hire officials with specialized
knowledge in digital fields in addition to strengthening departments in charge of investigating
antitrust violations and reviewing mergers and acquisitions cases. In addition, further strengthen
cooperation with competition authorities.
・Regarding consumer transactions mediated by digital platform operators, within 2020 examine
developing rules, including a review of the Act on Specified Commercial Transactions and theConsumer Contract Act, from the perspective of securing consumer benefits, such as preventing
inappropriate transactions and promoting safer transactions, while being careful not to hinder
innovation, and, based on the results of the examination, develop an environment, such as with thenecessary legal frameworks, to promote voluntary efforts by businesses.
・Based on the " Report on Medium-Term Vision on Competition in the Digital Market," aim to realizea "Trusted Web" where individuals and corporations can control data in a decentralized manner andmanage value so as to rebuild the foundation of trust in utilizing data. Launch a public-primate
promotion system in 2020, and, in addition to designing technical blueprints and processes, verify
the practical application of technologies that can be considered as constituent elements of the Trusted
Web, such as "distributed ID," which individuals and corporations can issue themselves but whichis also the core of data management.
ii)

Refining Regulations Based on Social Implementations of Digital Technologies
Previously, a company's business model was regulated by uniform regulations such as the various
Business Acts, but it has been pointed out that, going forward, AI utilization will enable companies
to significantly improve the functions of products and services that they provide and that the businessmodels of companies that make good use of technology will have a competitive edge, and that suchfactors will lead to customer-oriented services. On the assumption that digital technology will
progress and that the accuracy of situational understanding from data will increase, it is necessary toconcretely consider the appropriate form of regulatory systems for the new era while being aware

25

Provisional Translationof the "soft law" approach.
For this reason, demonstration projects will be carried out, from a medium- to long-term
perspective, with a focus on the three fields of mobility, fintech and finance, and construction. In
addition to identifying problem points and issues related to the form of future regulations, there will
be efforts to inquire deeply and expand into other fields.
① Mobility Field
・With regards to all processes of the inspection for checking the conformity to each approvedtype(hereinafter referred to as complete inspection), regulations premised on complete inspection
personnel will be reviewed if it can be confirmed that the level of inspections using AI, etc. are equal
to or higher than inspections performed by conventional complete inspection personnel. In
conjunction with this, the system of audit by Japanese approval authority will be reviewed if it ispossible to build a system that continuously confirms and analyzes remote inspection data.
② Fintech and Finance Field
・To refine the regulations for professional investors, if the factors relevant to the competence as aprofessional investor can be identified through analysis of investor’s transaction history data etc.,
regulations for professional will be reviewed so as to consider identified factors.
・In addition, to refine regulations for sales of financial instruments to elderly customers, if the factors
relevant to the capability as an individual investor can be identified through analysis of elderly
people's transaction history data etc., regulations for financial instruments to elderly people will bealso reviewed so as to consider the identified factors.
・Furthermore, to refine the AML/CFT Regulations, study the possibility of more efficient ML/FT
risks assessments etc. through the utilization of AI, which are carried out manually by each financial
institutions. Based on the results of the study above, AML/CFT regulations will be reviewed so as
to conform to the utilization of AI.
③ Construction Field
・There will be a review of regulations so that inspections of a building's outer walls, based on the
Building Standards Act, can be carried out through the use of drones if it can be confirmed that
drones equipped with infrared devices can detect problem areas with an accuracy equal to or better
than compared to a 1st-Class Kenchikushi architect using a test hammer to perform strike tests.
・Additionally, there will be a review of regulations so that inspections of elevator rope deterioration,
based on the Building Standards Act, can be carried out through the use of sensors if it can be
confirmed that permanently installed sensors for inspections can detect problem areas with anaccuracy equal to or better than compared to a 1st-Class Kenchikushi architect using the visualconfirmation method for deterioration (once a year).

26

Provisional Translation

Furthermore, dig deeper into the aforementioned three fields and aim to develop into other fields,
including smart security.
・For boilers that are subject to the Industrial Safety and Health Act, during FY2020 the open inspection
cycle will be extended to a maximum of 12 years, and, aiming for 2021, a policy regarding regulatory
review will be formulated in addition to identifying issues that arise from methods to manage theinspection cycle according to the equipment's condition (CBM) or from introducing voluntary
inspections by businesses.
・Additionally, during FY2020 clarify the determining criteria for eligible danger areas under the
Industrial Safety and Health Act for anti-explosion regulations concerning the use of electronic
devices, etc., and, aiming for 2021, develop a basic policy for regulatory review in addition to
identifying issues related to the future state of anti-explosion regulations.
iii) Early Nationwide Deployment of 5G, Promotion of Post-5G, and Promotion of So-Called
6G (Beyond 5G)① Early Nationwide Deployment of 5G・In addition to starting 5G service in all prefectures by the end of FY2020, the 5G development plan
to FY2024 will be accelerated in order to develop the nationwide 5G networks and promote its
utilization.
・Based on the recently enacted the Act of Promotion of the Development, Supply, and Introductionof Specified Advanced Information and Communications Technology Utilization System,21 thiswill be achieved by the tax incentive on (a)advance deployment of advanced transceivers/receivers
and so on by nationwide carriers, and (b)5G(local 5G) infrastructure including transceivers/receivers
installed by local businesses and so on while ensuring cyber security. Through this, Japan willquickly and intensively develop a safe and secure 5G information and communication infrastructure
while fostering trustworthy vendors and expanding their overseas activities through international
cooperation.
・In order to steadily promote nationwide development of ICT infrastructure such as 5G and the fiber
optics that support it, substantial support will be provided while considering the division of roles
between the private and public sectors, such as promoting area development projects to implement
mobile phone coverage in regions with unfavorable conditions and establishing a one-stop window
for the development of base stations that utilize public facilities.
・Additionally, from the perspective of wiring schools for ICT and supporting work-from-home, homebased learning, and home-based medical treatment, etc., promote the development of fiber optics
that utilize the Project to Promote Advanced Wireless Environment, and work to promote a shift
Will come into effect on a date, within 3 months from the date of promulgation (June 3, 2020), that is specified by a Cabinet
Order.
21

27

Provisional Translationfrom "public" to "private" for broadband infrastructure players in order to improve efficiency in lightof Japan's declining population, etc..
・For the utilization of 5G by various actors, promote the construction of a local 5G utilization model
for resolving regional issues in addition to establishing a system in 2020 for expanding local 5G
bandwidth, and provide comprehensive support such as disseminating results, strengthening
matching between users and vendor companies, and support for plan introduction.
・Regarding 5G networks, in FY2020 build the test bed necessary for technical verification to ensureinteroperability between different vendors, and realize the construction of highly flexible andscalable 5G networks by supporting market expansions in fields where Japanese vendors havestrengths.
② Promotion of Post-5G
・In the future, 5G enhanced with even more simultaneous connections and ultra-low latency functions(referred to as 'post-5G' in this instance) is expected to expand to industrial applications.
As such, information and communication systems compatible with post-5G and related
technologies, such as semiconductors used in the systems, will be developed so that post-5G can be
the pillar of competitiveness for Japan's core industries, such as industrial machinery andautomobiles. In addition, there will be efforts to develop manufacturing technology in order tosecure technology that can, in the future, domestically manufacture the state-of-the-art
semiconductors required for post-5G.
③ Promotion of So-Called 6G (Beyond 5G)・Around 2030 it is expected that so-called 6G (Beyond 5G) will be introduced as the next generation
mobile communication system. Beyond 5G is critical infrastructure in the Society 5.0 era, offeringfeatures that exceed 5G and post-5G, such as ultra fast and large capacity, ultra low latency, ultra
numerous connectivity, ultra low power consumption, and ultra security and resiliency. Beyond 5G,
in addition to being utilized by each and every organization and industry as a basic foundation
supporting citizen's lives and economic activities, is also deeply involved in Japan's security.
Other countries are already advancing the strategy of seamlessly transitioning to Beyond 5G, andit will be a competition to implement a new future that fuses human wisdom and technology in all
fields. In Japan as well it is necessary from now on to make upfront investments in Beyond 5G and
aim to secure a share.
Specifically, Japan will accelerate research and development of state-of-the-art technologies suchas all-photonics networks, 22 low power consumption semiconductors, and quantum

A communication technology that transmits and exchanges information from end to end on a communications network using
optical signals as they are, without converting them to electricity.
22

28

Provisional Translation
cryptography,23 which are the keys to realizing Beyond 5G.
In addition, joint international research from the initial research and development stage will bepromoted and efforts to have international standards reflect technology of Japanese companies will
be advanced. In order to do that, a system for global public-private partnerships will be established.
In addition, joint international research from the initial research and development stage will bepromoted and efforts to have international standards reflect technology of Japanese companies will
be advanced. In order to that, a system for global public-private partnerships will be established.
・Regarding the research and development of advanced core technologies, the state will provide thenecessary support, and, for a limited period of time, strongly and intensively promote it. Additionally,in order to realize the world's highest level of research and develop environments, in addition toestablishing a base function that enables government, industry, and academia to collaborate
internationally to promote research and development, prompt review of mitigating licenseprocedures for experimental use of radio stations provided certain conditions are satisfied, andmeasures will be taken in order from what is possible.
・Regarding international standardization and the acquisition of intellectual property, a base function
will be established that allows major players from government, industry, and academia tostrategically work on standardization and acquisition of intellectual property, and these activities will
be strongly supported. Morevoer, in addition to promoting international collaboration from theresearch and development stage of core technologies, the government will promote thestandardization and implementation of desirable standards for Japan under international
collaborationby

opening,

todomestic

andforeignprivatecompanies,

theinterconnected/interoperable test beds between different vendor devices and the radio wave
emulators.
・For early realization of an "Environment in which 5G is fully utilized," which is the prerequisite forearly and smooth implementation of Beyond 5G, build cloud-based systems where 5G solutions canbe used easily and inexpensively. In order to do so, implement domestic and overseas demonstration
projects, deploy the results of them via cloud, and build an environment to operate regionally
distributed data centers as a virtual, massive, and unified cloud. In doing so, in cooperattion withsmart cities and super cities, an environment is created in which bold demonstrations may be carriedout freely and flexibly conducted, such as using a whole town as a living test bed. Additionally,
research and development related to ensuring security, instant recovery in the event of a disaster anddemonstration projects to advance cloud utilization amongst regional businesses and SMEs is also
promoted.
・A verification environment for users is developed ahead of schedule and the usage policies of the

A next-generation encryption technology in which information such as the "key" used for encryption and decryption is senton so-called "quantum" particles, such as photons. The state of these particles changes if an unauthorized party attempts to readthe particles, and eavesdropping or information leakage can be prevented by detecting these changes in state.
23

29

Provisional Translation
Japanese version of Colosseum are verified by the end of FY2021 in addition to developing andmaintaining radio wave emulator by FY2023 that is expected to verify new, radio wave systems
in cyberspace on a large scale and with high precision, accelerate free and agile development via
remote use from regional universities, and contribute to creating innovation (Japanese version of
Colosseum).
iv) International Discussions and Development of Data Flow Rules at the WTO, etc. Toward
Realization of DFFT
・Accelerate international rule-making on the digital economy, especially data flow and trade-related
aspects of electronic commerce, based on the concept of “Data Free Flow with Trust (DFFT)”, withmulti-stakeholders participation including industries through various international fora andorganizations such as the WTO and the OECD, under the Osaka Track which was launched at thetime of the G20 Osaka Summit.
・Support the Global Technology Governance Summit (GTGS) that the World Economic Forum andthe World Economic Forum Centre for the 4th Industrial Revolution will hold in Japan in April 2021,
and, in addition, there will be programs led by private-sector mainly on healthcare, smart cities andmobility, and efforts to realize governance innovation based on DFFT, utilize the GTGS todisseminate the results of Japanese policies that support various programs.
・To maintain and establish trusted international frameworks for personal data flows, the framework
between Japan and the EU will be reviewed toward the beginning of 2021. Furthermore, thegovernment will lead tripartite dialogue amongst Japan, the US, and the EU to further promotepersonal data flows utilizing the existing frameworks and promote discussions on establishing a newinteroperable corporate certification system. Additionally, the government will lead international
discussions regarding a review of OECD Privacy Guidelines in light of the new risks surrounding
personal data protection, such as Data Localization and Unlimited Government Access.
v)

Promoting DX (Digital Transformation)

・In order to encourage voluntary corporate efforts related to DX, during FY2020 prepare a digital
governance code for the actions required of management, such as the establishment and publicationof a management vision that is based on social transformation by digital technology, and aim todisseminate the digital governance code in cooperation with various industry groups. Additionally,
establish a system for the state to certify companies that comply with the basic items of the digital
governance code, and, starting from FY2021, aim to link the two, such as by utilizing them as apremise for the selection of "DX Stock" implemented by the Tokyo Stock Exchange and theMinistry of Economy, Trade and Industry.
・From FY2020 begin formulating indexes by industry that are effective at promoting evaluation bystakeholders such as shareholders of the status of DX initiatives by individual companies so as to30

Provisional Translation
develop responsiveness in industries considered to be greatly affected by the digital transformationof industrial structures, such as manufacturing.
・In order to promote appropriate DX even for unlisted companies and SMEs, promotion of the digital
governance code and selection of outstanding companies will begin during FY2020.
・Supporting water supply utilities nationwide in introducing the system of utilizing water supply
information is implemented, and it is aimed to be expanded to other infrastructure companies, as an
example of a common system in non-competitive areas considering the results of surveys related toembedded software. From FY2020, the scope of sharing information will be organized and data
formats will be standardized.
・Amidst the progress of cyber / physical integration in FY2020, the "Digital Architecture Design
Center," will start leading-role projects in the three fields of (a) regulatory, (b) governmental andpublic procurement, and (c) industrial foundation, to formulate ("digital architecture") that will be
the basis for promoting cooperation and utilization of data amongst multiple operations.
・To promote the distribution and utilization of content in the digital era, the related policies, including
a copyright system that corresponds to reality, in regards to easier access to content that is not being
distributed in the market, rights handling and profit sharing in regard to copyrighted works, andcreating new businesses, will be examined. In doing so, sufficient consideration should be given to
the views of stakeholders and the interests of appropriate rights holders. During 2020 these specificissues and examination directions will be collected, primarily by an examining body establishedunder the Intellectual Property Strategy Promotion Secretariat. Afterwards, the relevant ministries
and agencies will promptly consider and take necessary measures.
・Regarding usage methods for ICT devices and services and for the creation of digital utilization
support personnel that will allow elderly people to consult and learn in familiar places, advanceexaminations of the necessary systems development and work to build a basic framework during
FY2020 for support personnel activities and implementations systems, etc. Implement it in earnest
from FY2021 while taking into account the division of roles between public and private services.
・Promote the spread and establishment of the sharing economy in society while improving safety andreliability. To that end, start a training and certification system from FY2020 to expand the base ofshare workers, improve skills, and improve service quality in addition to putting out the basic items
that service providers must comply with. In addition, during FY2020 create a handbook formunicipal governments to promote utilization of the sharing economy to solve regional issues.
・For smooth provision of public services through co-creation and mutual assistance in times of
emergency, a model cooperation agreement to promote cooperation between sharing businesses andlocal governments, including in disaster prevention fields, and a handbook for businesses will becreated during FY2021 in collaboration with the Sharing City Council.
vi) Ensuring Cyber Security

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Provisional Translation
・In order to handle the expanding risks associated with the increasing complexity of cybercrime /cyber-attacks and the growth of teleworking and distance education due to the impacts of COVID19, the government established an annual plan for cyber security, "Cybersecurity 2020 (provisional
title)," will ensure the cybersecurity of the Tokyo 2020 Olympic and Paralympic Games held in 2021
(hereinafter "the Tokyo Olympics and Paralympic Games" with a view to the future, will enhanceand strengthen the operations of the National center of Incident readiness and Strategy for
Cybersecurity, will establish a technical verification system for supply chain risks, and will steadily
implement necessary efforts, such as promoting the integration of DX and cyber security.
・In order to promote security measures across the entire supply chain, including SMEs, launch the
Supply Chain Cyber Security Consortium (provisional name) during FY2020 in collaboration withindustry, and encourage participating companies to comply with the basic action guidelines forstrengthening risk management. In conjunction with this, visualize SMEs that utilize security
services fulfilling certain criteria, and promote transactions between SMEs working on appropriate
security measures and large companies / industry groups that are participating in the Consortium.
・With regards to mechanisms (trust services) to prevent data falsification and sender spoofing, in order
to secure the authenticity and reliability of data and to ensure international interoperability:－"Time stamp" proves that electronic data existed at a certain time and that it has not been
tampered with after that time. The national certification system on Time stamp will be establishedand started in FY2020/21, and necessary efforts will be made so that it becomes a public effectivemeans for sending and receiving electronic documents.
－By using "e-seal," instead of a company's official square seal that has been used on paper
documents until now, an organization that issued electronic data such as invoices can be easily
confirmed, which is expected to improve the efficiency of intra and/or inter-company
businesses/transactions.. In order to establish a private certification system based on certain
standards, a wide range of use cases will be examined and technical requirements will be sorted
out in FY2020.
－"Remote signature," in which the signer's signature key is managed on a cloud server and thesigner remotely makes an electronic signature, will be examined based on trends in technology
and operations, and its legal position under the Act on Electronic Signatures and Certification
Business.
・In order to break up the situation wherein technology and information related to cyber security areoverly dependent on foreign countries, build a system platform for collecting, generating, andproviding Japan original cyber security information by FY2021. In addition, promote domestic
cyber security product development and human resource development by establishing the productverification and training environments that utilize information from the system platform and opening
up to the industry and academia.
・Promote efforts to increase the sophistication of information sharing platforms for sharing and32

Provisional Translation
utilizing threat information and vulnerability information so as to contribute to the construction ofan active defense system in industries such as the information and communications fields.
・In order to ensure the security of smart cities, which involve a variety of actors, requirements andmatters to be confirmed for the operating structures and systems of smart cities will be clarified
within FY2020, and the implementation of necessary security measures will be promoted.
・In order to respond to the rapid expansion of factory automation, during FY2020 develop guidelines
related to IoT device security measures, and summarize the basic direction with regards to security
for control systems, etc.
4.

Promotion of Open Innovation(1) Major Progress of KPIs
[KPI] By 2025 triple corporate investment in universities and national research institutesetc.
⇒143.1 billion yen (FY2018 actual results)[KPI] Create 50 unlisted venture companies (unicorn) or listed venture companies withmore than $1 billion in corporate value or market capitalization by 2025. (Repeat)⇒16 companies (as of December 31, 2019)[KPI] In the next 10 years (ending in 2023), the time required for the acquisition of rights
will be halved to an average of 14 months.
⇒FY2018 actual average: 14.1 months[KPI] Improve labor productivity in the manufacturing industry to more than 2%
annually⇒1.1% (2016~2018)[KPI] By 2025 visualize the operating status of individual machines and increase thepercentage of companies that are working on process improvements or plan to makethem to 40% or more.
⇒32.1% (2019)[KPI] Improve ROA of large Japanese companies (TOPIX500) to the level which iscomparable to those of US and Europe by 2025. (Reference: Average ROA for the
US and Europe in FY2019 was 4.8%)⇒ Japan (TOPIX500): 3.3%
America (S&P500): 5.7％
Europe (BE500): 3.9％
(for FY2019)33

Provisional Translation(2) New Specific Measures to be Takeni)

Investment in Start-up Companies① Open Innovation Promotion Tax System
For domestic companies or CVCs investing 100 million yen or more in startup companies thatwere founded less than 10 years and stillunlisted, as well as small and medium-size enterprises
which drive local economies and invest 10 million yen or more in aforementioned startup companies,
the Open Innovation Promotion Tax System was introduced to provide 25% tax deduction. In order
not to weaken investments in startup companies due to the impact of COVID-19, supply of new
funds to start-up companies that play a leading role in innovation will be promoted, which leads totheir growth.
② Promotion of the Asia DX ProjectAs an opportunity to change the corporate culture of Japanese companies, the government is
promoting the creation of new businesses in collaboration with companies in emerging countries as
the "Asia DX Project." A digital transformation promotion team was established in the Japan
External Trade Organization (JETRO) in December 2019, and JETRO and Japanese overseas
diplomatic missions will work together to promote cooperation between companies in emerging
countries and Japanese companies, such as uncovering promising companies in emerging countries
and coordinating with local governments.
Through these efforts and in collaboration with the Ministry of Economy, Trade and Industry andrelated ministries, the first several pioneering companies will be highlighted, creating a leading
model that causes the "Peer Effect."③ Creating and Developing Startup Companies that are Active Globally・Amidst concerns about a decrease in startup investment, public funds will support the supply of
growth capital and the formation of venture capital funds.
・Based on the "Support Package for Startup Ecosystem Formation" that was compiled in July 2020,
support startup companies that drive growth and social change under the "new normal," including
startup companies working on digitalization, remote-ization, and implementing robots.
・For each startup ecosystem base city, support their autonomous formation such as implement support
programs for global accelerators in FY2020.
・Strengthen support for the J-Startup program by starting support for overseas expansion via matchingwith domestic and overseas accelerators, etc. in FY2020.
・Focus on holding domestic and overseas startup company related events in FY2021 as the "Global
Venture Summits (provisional name)."・In preparation for the new Japanese version of the SBIR system, based on the revised Act on
Vitalizing Science and Technology and Innovation Creation (comes into force in April, 2021),

34

Provisional Translation
beginning operation from FY2021, there will be consideration of methods to set annual expendituretargets for startup companies in the research and development budgets of various ministries, anddevelopment of uniform rules for designated projects with regards to the startups of various
ministries such as presentations of research and development issues based on policy issues andpublic procurement needs in public offerings.
・To create a managerial human resources market for startup companies, from FY2020 there will be
development of requirements for human resources, such as expertise and background, andinformation will be sent to candidate managerial human resources.
・To facilitate the financing of startup companies, there will be a review of issues related to capital
policy, such as trading opportunities for unlisted stocks and limited financing via borrowing fromfinancial institutions, a promptly improvement of the financing environment during FY2020. .
・Guidelines will be developed in FY2020 in order to establish a system for local public institutions toregister and certify startups that are working on regional revitalization SDGs.
ii)

Optimizing Contracts Between Large Companies and Startup Companies
It is critical to further improve Japan's competitiveness through cooperation between large
companies and startup companies by fostering and utilizing human resources that take on new
challenges.
On the other hand, a situation of imbalanced contracts has been pointed out by some startups,
where, in collaborations between large companies and startup companies, the large companies will
monopolize patent rights when the startup company performs joint research with a large company,
and the surrounding or auxiliary patents will be walled off by the large companies.
When the Japan Fair Trade Commission conducted a fact-finding survey of startup companies(unlisted companies founded less than 10 years ago) and whether they had accommodated
unsatisfactory conduct in transactions and contracts in collaborations with other companies (large
companies, etc.), it came to light that 75% of the responding startup companies replied in theaffirmative to the question "Do you have experience accommodating unsatisfactory behavior fromother companies?"
Additionally, the fact-finding survey also revealed the following types of situations as concrete
details of the unsatisfactory conduct.
(a) Nondisclosure Agreements (NDA)
There were unilaterally advantageous provisions for the large companies, such as short nondisclosure periods and only the startup companies having to disclose secret information.
(b) Proof of Concept Agreements (PoC Agreements24)

24

Proof of Concept agreements are conducted to quickly and easily determine the feasibility of joint research before entering

35

Provisional Translation
Despite being asked to carry out additional work beyond the scope of what was originally agreed
to, no contract documents were presented for the additional work and ultimately no equivalent
compensation was paid.
(c) Joint Research Agreements
Conditions that rights to a new invention belong to the large corporation even if the invention was
newly created primarily by the startup company's know-how.
(d) License Agreements
Requests to provide non-compensatory licensing.
Based on the results of this kind of fact-finding survey, a standard Model Contract (Ver. 1.0) was
first created and published so that startup companies with weak legal departments are able toappropriately respond to these problems.
Going forward, the Japan Fair Trade Commission and the Ministry of Economy, Trade andIndustry, after conducting further fact-finding surveys of startup companies, will jointly draft a
guideline summarizing problem cases in various agreements, specific directions for improvement,
and guidelines that established the approach 25 behind the Act on Prohibition of Private
Monopolization and Maintenance of Fair Trade by the end of the year and start public comment
procedures.
iii) Promotion of Business Restructuring, Including Spin-Offs
・In order for existing companies to successfully innovate, it has been pointed out that it is necessary
to have an "ambidextrous organization" (O’Reilly & Tushman (2016)) that can simultaneously (a)experiment with and act on new businesses, and (b) streamline existing businesses and perform
gradual improvements (deepen knowledge).
・To make it easier for existing companies, including large companies, to engage in "ambidextrous
management," it is necessary to (a) promote collaboration through M&A of startup companies, and(b) improve the environment for business restructuring, including spin-offs.26
・The spread of COVID-19 should be considered as accompanying major changes in industrial
structure, and companies will need to review their business portfolios, cut out non-core businesses,
and further promote ambidextrous management. It is important, particularly for large companies, toproactively carry out business restructuring in order to improve corporate value.
・For this reason administrative guidelines will be formulated to facilitate business restructuring,
including spin-offs, and there will be consideration of legislative measures to facilitate business
into full-scale joint research.
For example, summarizing cases that may be subject to abuse of superior position or transactions with binding clauses(transactions with conditions or clauses that unreasonably restrain the business activities of the counterparty).
26
A method of splitting a company by transferring the shares of a subsidiary to shareholders.
25

36

Provisional Translation
restructuring and to promote businesses to address it.
・With regard to M&A in exchange for shares, from the point of securing global equal footing, consider
measures to promote the use of the "share deliver system" established in 2019, with the prospect of
implementation in FY2021.
iv) Building an Autonomous Innovation Ecosystem
The spread of COVID-19 has had a widespread impact on the innovation ecosystem. The
economic impact on startup companies will become noticeable, and there are fears that the open
innovation of industry, academia, and government, which is a source of new startup companies, mayalso stagnate. Furthermore, there is concern about the suspension or delay of research anddevelopment by universities and private companies, especially of joint international research.
On the other hand, it is important to quickly solve emerging social issues through innovation andimplementation as social systems and lifestyles rapidly change due to the spread of the infection.
Under these circumstances, measures will be taken with a sense of speed to maintain Japan'sinnovation ecosystem, transform it into energy for advancing social transformations brought about
by the spread of infection, and mobilize the power of industry, academia, and government to realize
growth under a "new normal."① Promoting Open Innovation through Industry, Academia, and Governmenta)Promoting Corporate Open Innovation

・From FY2020 strengthen the supply of risk money by the Development Bank of Japan (DBJ) toareas where it is difficult to supply private capital, such as investment in open innovation by large
companies and startups, large-scale investment in startups, and initial regional investment seeds.
Additionally, provide capital funds through the DBJ's " Novel Corona Revival Growth Foundation
Enhancement Fund " to support the rapid and steady recovery and growth of companies.
・Establish an environment for the utilization of on-site factory data, etc. in order to promote researchand development and implementation of software by private companies.
・Establish a new branding system for companies that take up the challenge of management innovation.
Create selection criteria, etc. during FY2020 and promptly select brand companies.
b)Strengthening the Innovation Ecosystem through Industry-Academia-Government
Fusion・Review regulations concerning research and development corporations in the Act on Activating
Science and Technology and Innovation Creation (comes into effect in April 2021) in order to enable
investment in foreign corporations that conduct joint research utilizing the research results ofuniversities and research and development corporations, and revise the system in FY2020 fornational universities. Additionally, consider reviewing related surveys from FY2020 in order to37

Provisional Translation
analyze the effects of the system revisions.
・Simplify the application forms for establishing the Collaborative Innovation Partnership (CIP) andclarify the approval examination procedures and business operation contents through revising theguidelines for establishment and operation of CIP so as to promote external collaborations utilizing
CIP in addition to further reviewing the system, including legal measures, during FY2020.
・In order to build graduate school education that meets social needs, grasp, analyze, and laterally
expand university and industry cases at the "PEAKS University Support Forum," aiming to start in
FY2020. Additionally, consider concrete measures around during FY2021 based on the proposals
related to the finance and accounting methods compiled by PEAKS for the 4th medium term target
period for national universities.
・Promote joint industry, academia, and government research and development aimed at forming
innovation ecosystems related to regional revitalization and at solving social issues after COVID19's spread and resolution, including research and development and implementation of blockchain
technology, enabling safe and efficient exchange of important data such as financial and medical
data, and of robots and sensors, which are required for shifting to remote and unmanned technologies.
・Enhance training and support for project leaders from FY2021 in order to strengthen the coordinator
function of the "Program to Create Industry-University Fusion Leading Model Bases."・ Full-scale implementation from FY2021 for accompaniment support related to international
expansion and business creation for selected organizations in the "Regional Open Innovation Base
Selection System."・The National Institute of Advanced Industrial Science and Technology (AIST) will establish a test
environment for smart factories during FY2020 and support converting SMEs to IoT.
・Strengthen the functions of the "Public / Private Young Researcher Discovery Support Project" inaddition to establishing a forum for dialogue between industry and academia in 2021, and strengthen
human resources development by compiling methods of recurrent education in fields where theindustrial world has high needs.
・Reinforce the "Basic Framework for the Cross-Appointment System and Points to Note" (formulated
on December 26, 2014) in FY2020, review salary levels through blended salaries utilizing externalfunds, disseminate information on incorporating good examples of work load reduction, andpromote utilization of the system.
② Higher Education and Research Reformsa)Using University Reforms to Strengthen the Function of Universities as a Base forAccumulating Knowledge and Human Resources
Sources of added value will shift to "knowledge" with the Fourth Industrial Revolution. Human
resources that generate "knowledge" and places that create added value by giving rise to"knowledge" interactions are critically important. The functions of educational research institutions

38

Provisional Translationsuch as universities will be expanded, and there will be efforts on various policies from theperspective of universities functioning as places to create added value.
・Promote the training of advanced medical personnel in university hospitals in order to strengthen thefunctions of university hospitals for overcoming COVID-19.
・Based on opinions from external experts' meetings regarding the "National University Governance
Code," which was formulated at the end of FY2019, confirm the status of conformity to the code asannounced by each national university during FY2020.
・Institutionalize the "University Cooperation Promotion Corporation (provisional name)" around thesummer of FY2020, and promote cooperation and division of functions among universities
regardless of the categories national, public, and private.
・Formulate guidelines around the summer of FY2020 in order to build a "Regional Cooperation
Platform (provisional name)" as a constant system for regional universities to discuss the future
regional image together with local governments and industry.
・In consideration of the importance of fostering human resources that take into account regional
characteristics and needs, formulate a reform package within this year for realizing attractive regional
universities by, for example, increasing the admission capacity, of regional national universities that
conduct STEAM education and education and research on combining fields and then implement theoutputs in the society.
・Review27 operating expense grant methods for the 4th medium term target period for national
universities, and reach a conclusion during FY2021.
・In order to strategically manage the realization of function expansion for national universities, review
governance systems, evaluations, capacity management, and diversification of financial resources
for transitioning the check method of autonomous contractual relationships between national
universities and Japan from pre-regulation to post-check, and reach a conclusion during 2020.
b)

Improving Research Capabilities

In cooperation with industry, academia, and government, and based on the "Comprehensive Package
for Strengthening Research Capabilities and Supporting Young Researchers" (January 23, 2020
decision by the Council for Science, Technology and Innovation), advance reforms for (a) drastically
improving the research environment for young researchers, (b) ensuring sufficient time for researchand educational activities, (c) ensuring diverse career paths for research personnel, and (d) creating
attractive doctoral programs for students.
・In order to promote the development of young human resources and the establishment of joint usage
facilities and data coordination platform for universities, that conduct world-class, research anddevelopment a world-class fund will be established through collaboration among universities basedon thea result of a reviewing acceleration of university reform, adjustments of existing efforts, and27

Review of mechanisms, etc. allowing universities to undertake reforms based on consistent evaluation indicators.

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Provisional Translation
collaboration with the private sector. The fund will realize a mechanism for building a world-classresearch foundation by utilizing the operating profits.28
・Call for research ideas centered on young researchers, implement an emergent research support
project that continuously provides research capital for a maximum of 10 years in order to provide
stable support for a long time period, and secure an environment in which researchers can freely
concentrate on challenging research.
・Foster high-level knowledge professionals in the WISE Program who are globally active in joint
overseas research and in industry-academia collaborations, with the viewpoint of contributing todiversity of knowledge in the world.
・With regards to competitive research funds, a review for priority support to young researchers andfor ongoing support to researchers (from when they are young until when they are senior, and frombasic research to application) will be conducted and concluded around during FY2020.
・ Promote participation in the international research community by further promoting joint
international research programs such as in infectious disease research, deepening international andinterdisciplinary brain circulation through the World Premier International Research Center Initiative(WPI), and through horizontal development of WPI results. Additionally, promote research thatutilizes knowledge in the fields of humanities and social sciences.
・By FY2021 guidelines for sharing research facilities and equipment will be developed to, promoterelevant universities to establish and announce their policies on sharing their research facilities andequipment. Additionally, to build efficient research systems, the digitization and remote-ization ofshared research facilities and equipment will be promoted by, introducing experimental equipmentthat can be operated remotely, etc. Alsothe development and sharing of research equipment(enhancing core facilities) through centralization, etc. will be promoted. Furthermore, a development
plan will be formulated during FY2020 for facilities such as national universities that can flexibly
respond to research needs in addition to strategically utilizing cutting-edge and large-scale researchfacilities, equipment, and devices.
・Take advantage of policy analysis databases (e-CSTI) that link data such as public research funds,
papers, and university finances, during FY2020 compile an analysis of effective funding allocation,and utilize it in formulating the next "Science and Technology Basic Plan." Additionally, maintainand strengthen the innovation ecosystem by strengthening research and analysis capabilities andpromoting EBPM.29
c)Promoting Strategic Research and Development

The major university funds in the world are Harvard (approx. 4.5 trillion yen), Yale University (approx. 3.3 trillion yen), andStanford University (approx. 3.1 trillion yen), etc., with university funds in the US totaling approx. 65 trillion yen. As for otherfunds: Cambridge University (approx. 1.0 trillion yen) and Oxford University (approx. 820 billion yen)
※2019 figures for each university, and 2017 figure for the US university total (all latest)
29
Evidence-based Policy Making
28

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Provisional Translation
・Apply the common architecture formulated in the SIP in FY2020 to realize smart cities and promoteinter-city cooperation, and utilize various types of model projects, etc.
・・Based on the "Directions for Science and Technology and Innovation To Realize 'Safety andSecurity'" (January 21, 2020 decision by the Integrated Innovation Strategy Promotion Council),while promoting efforts to prioritize allocation of budgets and human resources to important
technical fields and to take preventative measures againsttechnology outflow, consideration to createa system that matches seeds and technological needs will be advanced, and implement matching on
specific cases will be implemented by the end of FY2020. Additionally, relevant ministries andagencies will collect and share information on technology outflow to foreign countries via various
routes such as theft of information in cyberspace, corporate acquisitions, and the international
movements of students and researchers due to the internationalization of research activities andcorporate activities. Coordinated measures will be promoted while paying attention to foreign
policies on sensitive technology management, etc. At the same time, considering the viewpoint of
securing and maintaining Japan's technological superiority, examination and construction offrameworks and systems of disclosure / non-disclosure of research results, publication of patentapplications and publication of patents, acceptance of research funds from foreign countries,
acceptance of international students and foreign researchers, and the form of qualifications forindividuals who handle important technical information will be promoted. In advancing these efforts,
to prevent researchers restraining themselves excessively, close attention will be paid to making theefforts predictable and aligning them with the concept of open science promoting the disseminationof research results and with the policies promoting science and technology by promoting joint
research with foreign countries.
・ Consider the following efforts to strengthen "material innovation power" and formulate agovernmental strategy.
－From 2020, establish common guidelines for handling material data, formulate a common
format for data from measurement and analysis devices, and create a database of patent
information for AI learning.
－From FY2020, promote consideration of establishing core bases for data storage, developmentof shared facilities and equipment that can obtain high-quality data, and research anddevelopment projects that drive the use and creation of data, and then implement them
promptly.
－Present policies to build innovation ecosystems for important technology, application areas,
and materials, and promote research and development and base formation in order to achievethem.
－Lead international standardization related to material measurement methods.
・Based on the "Bio Strategy 2020 (Basic Measures)" (June 26, 2020 decision by the Integrated
Innovation Strategy Promotion Council), in FY2021 begin certification of bio-innovation cities in41

Provisional Translation
addition to promoting research and development that should immediately be undertaken as
countermeasures to COVID-19, and strengthen ESG investment inducements in certified cities andstrengthen the establishment of bio-manufacturing demonstration functions for vaccines, etc.
Additionally, develop guidelines for cooperation and utilization of biodata, and develop the resultsof the "Tohoku Medical Megabank Project," which is genomic data infrastructure. Furthermore, bywinter 2020 formulate the "Bio Strategy 2020 (final market area policy version)" that incorporates
further efforts related to COVID-19 countermeasures, market size targets for 2030 that reflectchanges in economic conditions, and a roadmap of measures.
・Based on the "AI Strategy 2019"(Integrated Innovation Strategy Promotion Council Decision on
June 11, 2019) and its follow-up, promote research and development and social implementations offoundational AI technologies, and start a certification system for mathematics, data science, and AI
education programs in FY 2020.
・Based on the "Quantum Technology Innovation Strategy" (January 21, 2020 decision by the
Integrated Innovation Strategy Promotion Council), from FY2021 begin research and developmentof test machines for quantum cryptographic satellites while also promoting priority support for
research and development in areas such as quantum-hybrid innovations and for formation of aquantum technology innovation base (international hub), etc.
・Based on the "Industrial Technology Vision 2020 (May 2020)," which compiled research anddevelopment directions for important technology groups in which Japan should concentrate
resources for 2050, during FY2020 formulate individual technology strategies for key technology
groups that will be the basis of Society 5.0, and focus on promoting their research and development.
・By FY2021 begin sharing the "Fugaku" supercomputer, and promote utilization for simulation
research in order to solve social issues, such as giving precedence to utilization for COVID-19
research.
・Steadily promote development of a next-generation synchrotron radiation facility in line with thedivision of roles in the public-private partnership.
・Enhance the communication environment of the Science Information NETwork (SINET) andexpand its upper-layer, such as data management, publication, and discovery. Additionally, facilitatecompanies to utilize high-performance computing environments equipped with real-time datacollection and analysis functions.
・Actively utilize SINET as the foundation of a data circulation society to build an inclusive societythat utilizes universities, and promote utilization of data, such as cooperation with the GIGA School
concept and analysis of medical receipt data. Additionally, aim for integrated data analysis in orderto implement evidence-based measures against infectious diseases.
③ Promoting Strategic Intellectual Property and Standards Utilization・Based on the Intellectual Property Strategic Plan, promote measures to realize a value design society,42

Provisional Translationsuch as encouraging the use of intellectual property and standards from the research anddevelopment concept stage.
・In addition to expanding the use of management design sheets and promoting the organization of
those responsible for their spread, establish and publish during FY2020 basic guidelines fordisseminating "value design management" which design management.
・In order to promote intellectual property creation education that fosters the creativity of children andstudents in primary and secondary education, review requirements during FY2020 for schools thatcan be promotion bases, in addition to holding demonstration classes nationwide and develop
selection methods.
・Regarding pirated editions of intellectual property on the Internet, implement comprehensive
measures based on the October 2019 "Menu of Comprehensive Measures" and on the process chart,such as promoting the distribution of official versions and strengthening international cooperationand international enforcement.
・Provide hands-on support, based on the Regional Intellectual Property Activation Action Plan thatwas revised in July 2020, in order to build an intellectual property strategy that contributes to thegrowth of regional SMEs.
・Aiming for within FY2020, Consider the form of a patent system suitable for the AI / IoT area,
including strengthening dispute resolution functions.
・In order to strategically utilize standards for the social implementation of technologies and resolvingsocial problems, establish a system for external consultation and coordination of cross-disciplinary
themes at the Standardization Promotion Center that was established at AIST in July 2020. From
FY2020 establish a system at New Energy and Industrial Technology Development Organization(NEDO) to examine the necessity of standardization for individual projects. In cooperation withthese organizations, compile an action policy during FY2020, including strengthening the support
system across ministries.
・As for original standardization activities by SMEs that do not go through industry groups, fromFY2020 implement support for strengthening business strategy perspective so as to achieve a highbusiness expansion effect.
v)

Next-Generation Industrial Systems① Promoting Data Coordination and Utilization in Supply Chains・Conduct verification of mechanisms, established in 2019, to circulate data beyond a company's
boundaries in order to maximize utilization of valuable data at manufacturing locations, and thenstart actual operation in FY2021.
・Work on digitizing automobile design and development in order to increase the sophistication
throughout the supply chain of Japan's "suriawase" method for adjusting and reconciling. For thisreason, work to create a highly accurate standard model that can simulate the fuel efficiency and43

Provisional Translation
driving performance of next-generation vehicles so as to spread and popularize development
utilizing simulations (model-based development (MBD)), including to suppliers.
・ Formulate guidelines during FY2020 for cooperation between manufacturing processes via
digitalization and for strengthening design capabilities in order to strengthen corporatetransformation capabilities (dynamic capability) to respond to unexpected situations such as
occurrences of supply chain disruption risk. Additionally, work towards technological development
and creation of precedents for full-scale utilization of information and communication technology,
such as 5G, at manufacturing locations.
・In order to promote efforts (smart safety) to improve safety and efficiency in industrial security
through utilization of new technologies such as IoT and AI, in FY2020 launch the "Public-Private
Council on Smart Industrial Safety," and formulate an action plan to flexibly and effectively review
safety regulations while promoting companies' advanced efforts.
② Social Implementation, of Robotics Technology
・Promote standardization and normalization related to user-oriented robot development, data linkages,
communications, and facility design, etc. to realize a change to remote operations, labor savings, andautomation in service fields such as facility management, retail, food and drink, and food products,
etc.
・Promote the creation of future robot and IoT technology bases in Japan, including regional robot
contests that contribute to robot-related learning and education for high-school students, vocational
school students, and university students.
・In order to promote the introduction of robots for SMEs, compile a list of companies that work on
supporting productivity improvements for SMEs, such as consultants, robot system integrators, andfinancial institutions, and hold matching events between these businesses and SMEs.
・Consider on-location training and educational curriculum for teachers at students at robot makers,
educational institutions, and vocational skills development institutions that participate in the "TheConsortium of Human Education for Future Robot System Integration" (established in June 2020).
・Understand and examine issues related to introducing competitive occupations that use "industrial
robots" to that National Skills Competition by FY2022.
・The "World Robot Summit," an award-based competition using robots, will be held at Aichi
International Convention & Exhibition Center and at Fukushima Robot Test Field in FY2021.
③ Expanding the Aircraft Industry
・Expand the risk money supply through the DBJ, etc., in addition to providing research anddevelopment support for technologies such as electrification, composite, and automation that
contribute to future aircraft development, and promote the entry of Japanese companies into theaircraft market. In addition, with regards to critical parts materials, for which Japan is highly

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Provisional Translation
dependent on foreign countries, promote domestic locations, based on a survey of domestic supply
systems that will be conducted in FY2020, through collaborations between customers and materials
producers, and promotion of research and development and capital investment.
・For future completed-aircraft businesses, including for Mitsubishi SpaceJet, establish a system, bwhich supports sales after development and which maintains safe operation of mass production
aircraft by the time those aircraft enter into service, while conducting appropriate safety reviews..
vi) Promoting Reforms of Corporate Governance・To realize further increase in corporate value in the mid/long term, revise Japan’s "Corporate
Governance Code" in FY2021 after examining issues such as further promotion of management
in consideration of capitals costs such as implementing business portfolio strategies (and consider
coordination with the guidelines for promoting business restructuring, as stated in section iii above),enhancement of group governance including the improvement of the governance of listed
subsidiaries, ensuring the credibility of audit, consideration of sustainability in the mid/long term,
and improving the quality of outside directors.
・Besides, companies aiming to be listed on the Prime Market (provisional name), which consists ofcompanies with larger market capitalization, higher liquidity, and more sophisticated governancecommitting to increase corporate value in the mid/long term through constructive dialogue withinvestors, should reach to the governance standard appropriate for the investment targets
representing Japanese market by requiring a higher level of governance compared to the othermarkets through the revises of "Japan’s Corporate Governance Code," . So, heading toward theimplementation of the new equity market structure in April 2022, require a higher level ofgovernance in "Japan’s Corporate Governance Code" scheduled to be revised in FY2021.
・To substantiate the functions of independent directors, which are essential for the monitoring theboard of directors, formulate "Practical Guidelines for Independent Directors", which demonstrates
best practice of independent directors, such as the accurate understanding of their roles and expectedroles in the board of directors by summer 2020, and work on dissemination of the guideline.
・Promote dissemination of "Japan’s Stewardship Code" that was revised in March 2020, and during
FY2020 announce the number of institutional investors, etc. who respond to the revised code.
Additionally, support the promotion of stewardship activities by corporate pension funds.
・In addition to promoting the spread of Hybrid Virtual Shareholder Meetings, whose guidelines werereleased in February 2020, consider what shareholder meetings should be, such as further utilizationof electronic means in the process of holding shareholder meetings including Virtual-Only
Shareholder Meetings and policies for the improvement of disclosures, and reach to certain
conclusions during FY2020.

45

Provisional Translationvii) Improving the Quality of non-financial Information Disclosures and of Accounting /Audit, etc.
・Taking into account the improvement of narrative information, such as business strategy and risk
information, in the Annual Securities Reports from FY ending in March 2020, collect good practices
on the application for dialogue between companies and investors and publicate during FY 2020 byincorporating them into "Reference Casebook of Good Practices on the Disclosure of Narrative
Information". In addition, publicate good practices on the disclosure of ESG including climatechange by incorporating them into the Reference Casebook and promote practical use of them.
・Work on facilitating the transition of Japanese companies to the International Financial ReportingStandards (IFRS), including making more efforts to reflect Japanese approach in IFRS, and promote
the expansion of the optional application of IFRS in Japan.
・Review the state of oligopoly of the audit market and the status of non-audit services from theperspective of ensuring the reliability of accounting audits. Besides, consider the promotion of
making better use of IT at audit firms to improve the quality of audit during FY2020.
viii) Improvement of Environment for Positive Investmen for economic growth and Supply of
Risk Money
・To promote open innovation (including M&A) between existing companies and start-up companies,
formulate practical guidelines of valuation, including evaluation of intangible assets, in acquisitionsof start-up companies by existing companies in FY2020. Besides, promote growth investment inexisting companies by making use of the evaluation methods in the guidelines for the evaluation of
new businesses in the existing companies.
・DBJ will conduct joint investment with regional financial institutions, coordinate with pension funds,
invest in private funds by making use of Specified Investment Activities, etc. and then contribute to
the enhancement of corporate governance as a responsible investor. Besides, DBJ will also promote
the construction of the ecosystem of the growth investment market by enhancing the supply of riskmoney and the development of human resources in the private investment sector.
ix) Developing Financial and Capital Markets that Attract Investors and Lead to Corporate
Value Increase
・With regard to the reform of Tokyo Stock Exchange's equity market structure, begin the proceduresfor selecting market segments and start up new markets based on the new market sections in April
2022, after showing the higher level of governance for the companies who select the Prime Market(provisional name) in "Japan’s Corporate Governance Code" which will be revised in 2021. And
consider the promoting measures for entry of institutional investors in the Growth Market(provisional name) from a wide viewpoint.
・In parallel with this reform, delink the composition of Tokyo Stock Price Index (TOPIX) , which is46

Provisional Translation
now automatically comprised of all companies listed on the 1st Section, from Tokyo Stock
Exchange’s market structure and select comprising companies with more emphasis on governancelevel and market liquidity. The new index will be published and in use until the launch of newmarkets based on the new market sections in April 2022.
・Work on the development of the environment toward realizing a Comprehensive Exchange in July
2020 to improve investor’s convenience, expand the derivatives trading market, and enhanceinternational competitiveness.
・From the points of facilitating funds raising by companies and making securities trading more diverseand sophisticated, consider the improvement of crowdfunding systems and unlisted securities
trading while paying great care to investor protection.
・ Review the "Principles for Customer-Oriented Business Conduct" for its establishment anddissemination, and reach to the conclusion during FY2020. Besides, promote further improvementof business conduct by deepening dialogue with financial institutions on the results of their efforts
and the problems they found while making use of good practices based on the Principles atcompanies selling investment trusts, etc.
・ To promote stable asset formation of households, work on the establishment of long-term,
installment-type diversified investment, and enhancement of financial literacy through thepromotion of financial education by making use of ICT, the popularization of Tsumitate NISA, andthe announcement of new NISA that will be introduced in 2024. Besides, to promote thepopularization of private pensions such as iDeCo (individual-type Defined Contribution pensionplan), simplify the enrollment procedures of iDeCo, such as by introducing online procedure.
x)

Establishing an Global Financial City as an International Financial Hub in Asia and theWorld・Work on the following measures; summarize the issues and facilitate dialogue with asset manager
through drawing up a report on the progress of sophistication in asset management, sophisticate asset
management by asset owner, take measures on cash flow of independent and new asset managers,
prepare the ground for urgent acceptance of foreign asset managers, etc., enhance corporate
governance and promote stewardship activity still more, review custom practices of industry forenhancing market efficiencies based on opinions of asset managers.
・Promote the acceptance of highly-skilled foreign professionals, such as human resources in asset
management and in finance through the development of the living environment, and promotesmooth acceptance of human resources, including support staff like those who work in the middle
office and back office.
・Streamline the registration process of Investment Management Businesses by drastically bolstering
the support desks for setting up business bases, disseminate and revise the guidebook for registration
procedure, and provide new entrants with financial administrative services, including self-regulation

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activities, not only in Japanese but also in English. Besides, drastically strengthen the publicity workof the government.

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5．Mobility(1) Major progress in achieving KPI[KPI] Introduce automated transportation services that are controlled remotely, forabandoned railway tracks and other areas, by FY2022.
[KPI] Attain Level 4 in autonomous driving on highways by 2025.
[KPI] Expand regionally-limited, unmanned automated transportation services to more than
100 locations across Japan by 2030.
[KPI] Realize the widespread installation of safe driving support devices/systems as standard
feature in all new vehicles sold domestically, to virtually all vehicles on a stock basisby 2030.
⇒ Installation rate for new vehicles sold domestically: 77.6％ (2018)
Installation rate for domestic vehicles: 19.0％ (2018)[KPI] Bring about the realization of services, such as package delivery services by drones
through “beyond visual line of sight” flights in populated areas, by FY2022.
[KPI] Launch the “flying car(eVTOL)” project by 2023.

(2) New specific measures to be taken
As the population decline picks up speed and the shortage of drivers becomes an increasingly
severe problem, securing mobility and logistics in rural areas, and in particular, providing support
for the elderly, are becoming pressing concerns. Furthermore, the spread of the novel coronavirus
disease (COVID-19) is having widespread impact on regional transportation. There is a need toaddress structural changes in the movement of people and goods, brought about by the short-term
fall in demand as well as the “new normal” for everyday life.
To cope efficiently with the individual transportation needs of local resident and traveler, it isnecessary to fuse new transportation services (Mobility as a Services, or MaaS) that allow
individuals to combine various means of transportation in an optimal manner through the use of AI
or other technology, with new technologies such as autonomous driving, with a view to maintaining
and revitalizing local public transportation. Particularly in areas with a declining population, it ispossible to also resolve regional issues by combining transportation services with other services suchas logistics, medical care and health, and shopping.
Furthermore, advance the social implementation of new technologies that can support suchchanges. Specifically, work on reforming various systems related to mobility, such as autonomous
driving and small Unmanned System (drones) and on strengthening data linkages. At the same time,
vigorously promote safety measures in relation to traffic accidents involving the elderly.

49

Provisional Translationi) Utilization of technological innovation in the Society 5.0 era for measures against traffic
accidents by elderly drivers
Countermeasures for traffic accidents by elderly drivers are a major social issue, and a prompt
response is necessary when considering the increase in the number of elderly people in the future.
On the other hand, transportation is limited in rural areas, so it is important to secure transportationmeans for the elderly and to balance road safety. Taking advantage of technological innovations in
the Society 5.0 era, the following measures will be taken.
1.

Promote the Spread of Vehicles Equipped with Advanced Emergency Braking System(AEBS) and Pedal Misapplication Prevention Device

・A safe driving support car ("Safety Support Car") subsidy30 was started in March 2020 to support
purchases by elderly people aged 65 and older of support cars outfitted with certified equipment,such as brakes to avoid or mitigate the severity of an impact with a pedestrian and devices to limits
sudden forward movement or sudden acceleration due to a accelerator-pedal error. The subsidy
supports the aim of introducing of 1 million support cars by the end of FY2020.
2. Creation of a driver’s license restricted to support cars
・In order to reduce traffic accidents caused by elderly drivers, a revision to the Road Traffic Act wasenacted so that individuals aged 75 and older and who have a certain history of traffic violations will
be subject to a mandatory driving skills test when renewing their driver's license, in addition to theusual cognitive test. The revision also makes it so that even elderly drivers31 not subject to thedriving skills test will receive in-vehicle instruction32 and have their driving abilities evaluated.
・Furthermore, based on the same law, starting around 202233 there will be a system to grant, throughapplication by the driver themselves, a conditional driver's license(driver's license limited to supportcars), that is limited to safe driving support vehicles, etc.
ii) Establish a Paid Passenger Transportation System in personal-use automobiles in
Cooperation with General Passenger Automobile Transportation Business Operatores
・AA revision to the Act on Revitalization and Rehabilitation of Local Public Transportation Systems
was enacted, establishing a paid passenger transportation system in personal-use automobiles inGeneric name for the "Subsidy for the Project to Advance the Spread of Safe Driving Support Cars" (Ministry of Economy,
Trade and Industry) that targets private vehicles and for the "Subsidy for Traffic Accident Prevention Measures Related to theProject to Advance the Spread of Safety Support Cars" (Ministry of Land, Infrastructure, Transport and Tourism) that targets
commercial vehicles..
31
Individuals between 70 and under-75 years of age and individuals aged 75 or older who do not have a certain history of
traffic violations.
32
Together with the course instructor, evaluating actual driving situations and providing guidance by driving through a course
based on certain tasks, such as passing through intersections with traffic lights and making a momentary stop before turning leftor right at intersections.
33
Date specified by a government ordinance, not more than 2 years from the date of promulgation (June 10, 2020).
30

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which general passenger automobile transportation business operators34 participate in the systemand take on operational duties, including operations management by receiving a consignment, with
operations beginning later this year.35
iii) Social implementation of low-speed and compact automatic delivery robots
・Demand for home delivery has rapidly increased in conjunction with the spread of COVID-19, and,amidst increasing need for contactless delivery without human intervention, it is expected that newdelivery services utilizing unmanned, low-speed, and compact automated delivery robots will be
realized. For example, it is expected that such a service will be used for delivery to nearby consumers'
homes from supermarkets, restaurants, and package delivery bases, and for periodic collection andtransport of packages.
・While there are examples from overseas of delivery robots actually driving on public roads fordeliveries, under the Japanese system (Road Transport Vehicle Act, Road Traffic Act), low-speed(driving on sidewalks at speeds of 6 km/h or less), compact, and unmanned delivery robots are notpositioned under the system and have not been tested on public roads. However, a framework was
finally established in April 2020 so that delivery robots, limited to "nearby monitoring / operation"
types in which the monitor or operator follows and watches the robot from a close distance, canconduct demonstrations on public roads, including on sidewalks.
・In Japan as well, in addition to confirming social acceptance of delivery robots, demonstration drives
on public roads by "remote monitoring / operation" type delivery robots will be realized as soon as
possible within the year, and, based on the collected data, continuous services can be provided.
・Basic policy for designing a system will be decided at an early stage, based on the results, for thesocial implementation of low-speed and compact automatic delivery robots.
iv) Promotion of a Japanese version of MaaS
1. Maintenance and revitalization of mobility in the regions
・With regard to transportation businesses, which are essential services supporting the “new normal,”the government will promote the securing of operations corresponding to the risk of infections, suchas by promoting initiatives including cashless payments and provision of congestion information.
・Based on the regional public transportation plans drawn up by the local governments, support will
be provided for initiatives such as service improvements, which include the operation of passenger
buses at regular intervals and flat-rate fares for unlimited rides, the securing of substitute services for
fixed-route buses that are difficult to maintain, and the introduction of services that consolidate
freight and passengers. In addition, the smooth implementation of paid passenger transportatio

Operators that, in response to demand from others, use automobiles to transport passengers for a fee, specifically referring totransportation business operators such as route buses, chartered buses, and taxis, etc.
35
Date specified by a government ordinance, not more than six months from the date of promulgation (June 3, 2020).
34

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system in personal-use automobiles in cooperationwith general passenger automobile transportaiton
business operators will be realized.
・To promote the maintenance and revitalization of public transportation, improved convenience for
consumers, and creation of opportunities for increasing mobility for the elderly, the government will
promote greater use of the new mobility service known as “Mobility as a Service” (MaaS). This
combines multiple public transportation services with other means of transportation to cope with theindividual transportation needs of local residents and travelers. It can be achieved through (a) A
system that streamlines procedures for the submission of fares to the government for so-called “freepasses,” which can be used across the board for multiple transportation services such as rail andbuses, as well as sightseeing facilities; (b) Promoting the use of council systems that a wide range ofstakeholders, such as multiple transportation businesses, participate in within each municipality.
2. Combining mobility and logistics services
・With regard to the approach to MaaS with a view to resolving local issues such as logistics andshopping, systems will be developed with a view to commercializing new mobility services at an
early stage in areas with a declining population, through new ways of using mobility. Specifically,in relation to the revised Food Sanitation Act (enforced on June 1, 2021), one-stop electronic services
will be established for procedures such as notification of mobile sales businesses that straddle
different municipalities. At the same time, for food and beverage businesses that are conducted on
mobile vehicles, the government will promote the standardization of facility standards for businesslicenses that are prescribed separately by each municipality. Furthermore, in consideration of theprinciple that private vehicles are used for paid passenger transportation system in personal-use
automobiles, the government will provide greater clarity in FY2020 on the treatment of cases wheremotor truck transportation business operators, working on consignment from the responsibleorganization based on the needs of the local community, bring their own freight transportation
vehicles to transport passengers alongside with freight cargo.
・In FY2020, validation work of MaaS will be carried out in collaboration with the tourism, retail,medical, and other sectors. Based on the results of this work, the issues and best practices will besorted and disseminated through the Council for Promoting the Smart Mobility Challenge Project,which has been established through public-private partnership.
・The government will validate the effectiveness of special measure that allows permitted taxi operators
to transport food, etc. at a charge, and the results will be used to determine if the transport should becontinued.
3. Fresh urban development and mobility
・The government will compile a roadmap for the growth of the automotive industry as a mobility
industry in FY2020, based on the structural change of stronger linkages with various community

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infrastructure brought about by the evolution of services and technologies such as CASE36 andMaaS.
・With regard to bicycle sharing, the government will present a business model in FY2020 aimed atenhancing business efficiency and user convenience, such as the development of a one-stop service
for registration for use.
4. Acceleration of data linkage
・The “Guidelines for MaaS-related Data linkage,” formulated in March 2020, will be disseminatedto business operators, local governments, and other organizations through courses and other means.
At the same time, the government will promote the regional validation of app and data linkage, as
well as API standardization, based on the guidelines. To advance linkage with fields other thantransportation, the government will conduct reviews in FY2020 with regard to updating the
Guidelines.
ⅴ) Acceleration of initiatives toward the social implementation of autonomous driving
1. Spreading and promoting autonomous driving
・Driverless automated driving transport services in specified areas on public roads will be introduced
in multiple locations in 2020, and coverage will be increased to more than 100 locations across Japanby 2030.
・With the aim of launching automated driving transport services that are monitored remotely inabandoned railway tracks and other areas in FY2022, technological development will be carried out
and reviews conducted to develop the necessary environment.
・To accelerate the social implementation of these services, the government will establish a businessmodel that clarifies the systems and procedures for the implementation of businesses corresponding
to the operating style of Driverless automated driving transport services ((a) Boarding andmonitoring by in-vehicle security driver; (b) Monitoring by remote driver).
・With regard to private vehicles, the government will advance cooperation with the private sector,
with the aim of achieving Level 4 automated driving on highways by 2025.
・For trucks traveling in platoons, the government aims to start the commercialization of manned
platooning systems for following vehicles from FY2021. At the same time, successor models withmore advanced fleet maintenance functions will be developed, with the aim of achieving
commercialization from 2023. In addition, the government will put in place measures with the aimof achieving Level 4 for self-driving trucks on highways from FY2025, and reviews will be
conducted on the operation and management systems of high-performance trucks.
・With regard to ground support work at airports, alongside with the expansion of airports where Level
CASE is the acronym for “Connected” (connecting vehicles), “Automated” (autonomous driving), “Shared & Service”(sharing services), and “Electrified” (electrification).
36

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3 autonomous driving is to be introduced in 2020, infrastructure and operational rules will beestablished after validation work has been carried out toward the introduction of Level 4, and Level
4 unmanned autonomous driving will be introduced within restricted zones by 2025.
・In FY2020, the government will establish an experts’ network that offers consultation services andadvice to local governments and business operators, etc., and set up a nationwide forum to shareknowledge on demonstration experiments conducted in Japan and abroad, with a view to realizing
regional mobility integrated with unmanned automated transportation services. On top of that, thegovernment will promote the establishment of demonstration experiments by utilizing the patterned
reference model for setting the driving environment conditions, with a view to introducing
autonomous driving for regional mobility services (“2020 Model”), cooperation with local residents
corresponding to the type of driving environment, links with infrastructure, and the design of the
optimal operating pattern.
2. Development of base maps
・With regard to the three-dimensional data that also serves as a foundation for autonomous driving,effort will be made to advance data acquisition on general roads and develop high-precision, threedimensional maps for approximately 23,000km of arterial roads in FY2021. At the same time, thegovernment will promote international standardization originating from Japan.
・By FY2021, the government aims to implement a system that makes real-time corrections todiscrepancies in positions between maps and the real space caused by crustal movements , as thiswill make it possible to accurately capture the location of a self-driving car on the map. In doing so,
validation work will be carried out to establish the methods for utilizing GNSS stations, etc. in theprivate sector, so as to enhance the precision of correction in areas where less public GNSS stations
are available.
3. Formulation of international regulations/Safety evaluation
・Alongside with measures to promote the development of automated driving technology for buses
and other vehicles, as well as the development of connected vehicles that can be utilized to provide
information to drivers during disasters and to collect information on disaster damage, thegovernment will take the lead in formulating international regulations for automated driving at theUnited Nations’ World Forum for Harmonization of Vehicle Regulations (WP29), based on Japan’s
technological prowess.
・With regard to the safety evaluation for self-driving vehicles, the government will commence workon the establishment of evaluation methods and systems from FY2020. This will allow automotive
manufacturers and service providers to select the simulation methods and test courses corresponding
to hypothetical scenarios37, and enable the implementation of appropriate driving tests. The aim is to37

For example, hypothetical cases of dangerous driving such as collision or sudden cutting in of a vehicle.

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Provisional Translationreflect these in international rules by FY2023.
4. Human resource development
・To nurture human resources who can take on both the jobs of automotive engineering and software
engineering, university courses in the field of autonomous driving will be introduced in FY2020,
with the aim of establishing full courses from next fiscal year based on verification of the needs andissues. Furthermore, in order to secure global human resources, support will be provided for
initiatives such as exhibiting at job fairs in ASEAN and other regions, and the establishment ofendowed courses at universities overseas.
vi) Promotion of various forms of ground, sea, and air mobility, and logistics reform
1. Establishment of a next-generation mobility system in the air
・In order to overcome various challenges faced by Japan, such as declining birthrate and ageing society,rural depopulation, and labor shortage, the government aims to realize “beyond visual line of sight”
flights (Level 4) by drones in populated areas by FY2022, so as to enable the effective use of drones
for a wide range of applications, including logistics, agriculture, forestry and fishery industries,
maintenance and management of infrastructure, and disaster response. To that end, based on thebasic policy for system design formulated in March 2020, the necessary institutional environment
will be developed by FY2021 with a focus on the following three points. In doing so, attention will
be given to the streamlining of procedures, such as the move to online applications and the omissionof individual inspection for each flight, including flight manuals. At the same time, systems will beestablished by FY2022 in areas such as aircraft certification and the management of information
pertaining to pilot licenses, so as to support the attainment of Level 4.
(Establishment of aircraft certification system)
・Currently, the government inspects the performance of the aircraft for each flight application.
However, for “beyond visual line of sight” flights in populated areas, there is a need for a high levelof safety measures in order to prevent personal injury or fatality due to accidental aircraft breakdowns.
In light of this, the government, etc. will introduce in advance systems for inspecting and certifying
the performance of an aircraft (aircraft certification system), similar to the systems used for cars andairplanes.
(Establishment of a pilot license system)
・Currently, the government verifies the skills of the pilot for each flight application. Going forward,
the government, etc. will introduce in advance systems for reviewing and certifying the skills of thepilot (pilot license system), similar to the systems used for cars and airplanes.
(Establishment of rules for operation control)・With regard to Level 4 flights, it will be mandatory to acquire the aforementioned aircraft certificationand pilot license, based on the need to establish a stringent flight management system. In addition,

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with regard to safety measures such as flight management, a system will be introduced in which thegovernment inspects each flight and verifies that its operation is appropriate in light of the actual
flight operating environment.38
・In addition to the establishment of the aforementioned system, with regard to flight management
systems for drones, flight management conditions corresponding to the flight area and methods will
be clarified alongside with the advancement of technological development and validation, while
details such as the scope for the introduction of the system as well as the operating system will becoordinated, with a view to achieving this by FY2021.
・Alongside with advancing technological development for safe and secure drones, efforts will bemade to promote their utilization by governments and private companies, with a view to achieving
these by FY2021.
・Drone demonstrations and an examination of precedent cases will be carried out, and the issues andsolutions for each purpose and form of use will be compiled as a set of guidelines in FY2020. In
particular, with regard to drone logistics in depopulated areas, the government will implement
support for the practical application of drones based on the characteristics of the region and makeadjustments to realize a sustainable business structure. Furthermore, pertaining to the verification ofsites in the depths of mountains and forests, the government will disseminate information on
advanced cases and conduct field tests, such as surveying, from FY2020, with a view to streamlining
the work of obtaining information on forest conditions.
・To achieve safe and reliable “beyond visual line of sight” flights in locations with inadequate
communications infrastructure, the government aims to develop, by FY2021, multiple connection
technology and frequency sharing technology in order to control drones from airplanes, etc. flying
at high altitude.
・The government aims to launch the “flying car(eVTOL)” project from 2023. To that end, in FY2020,
it will begin to conduct reviews on the development of systems in areas such as safety standards foraircraft and flight operation, as well as competence certification standards for pilots, based on theroadmap for the realization of the project. Based on this progress, the roadmap will be revised in
FY2021. At the same time, the government will also advance efforts to develop
automated/autonomous flight technology and flight management technology for multiple aircraft, inorder to use “flying cars(eVTOL)” as a means of transportation at the Expo 2025 Osaka, Kansai.
・Based on revisions to the Fukushima Innovation Coast Framework made in May 2020, thegovernment will support development toward new applications, carried out along Hamadori inFukushima. At the same time, it will also establish it as a base for promoting initiatives related to the
Fukushima Robot Test Field, including the establishment of an environment for development,
demonstration, and test flights for drones and “flying cars(eVTOL),” and the development of38

Penal provisions are in place to punish violations of the matters to be observed.

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technical standards and operating guidelines.
2. Promotion of various forms of ground mobility, and logistics reform
・The government will conduct reviews into the approach to road spaces that meet diverse needs, suchas supporting new forms of mobility like single-seater electric vehicles, and compile in FY2020 new
standards for road structures and direction for systems.
・With a view to the standardization of logistics within and across industries, the government will
promote initiatives for the action plan to standardize logistics in the processed food sector as well as
the expansion of the action plan to other industries. Furthermore, with the aim of building a logistics
and distribution database across the whole of the supply chain, the government will promote theestablishment of a business model toward social implementation in FY2020, and at the same time,
promote the introduction of logistics facilities and equipment that help to reduce manpower throughthe use of IoT and AI.
・Based on the government’s Action Plan for the Realization of Work Style Reform in the Road
Transportation Business, the government will ensure the penetration of quintessential fares acrossthe market, and based on the revised Motor Truck Transportation Business Act, it will promote thestreamlining of logistics and rationalization of the trading environment, such as the promotion of the“White Logistics Movement,”
・In cooperation with private sector businesses, such as commercial vehicle manufacturers and logistics
companies, the government will collect truck data from multiple commercial vehicle manufacturers
and commence demonstrations on operational management from FY2020 and achieve
standardization of vehicle data formats and API based on the results of these demonstrations, withthe aim of realizing joint transportation, mixed cargo deliveries, and optimization of transportationand delivery routes.
3. Transformation of industrial structure corresponding to the digital age of the seas・With a view toward creating an environment in which the shipping industry and shipbuilding industry
can grow together, the government will compile the necessary measures for promoting investment
and collaboration between companies, including institutional reforms, in FY2020, and implement
these measures swiftly.
・To ensure stable coastal shipping, the government will compile a basic policy in 2020 on increasing
productivity through the application of new technologies and other means, improving the businessenvironment, and reforming the work styles of ship crews. It will also swiftly implement institutional
reforms and other measures.
・To bring about the practical application of autonomous ships by 2025, the government will advancethe digitalization of ships, and at the same time, aim to formulate guidelines on equipping ships withautonomous operation functions ahead of the world by mid-FY2020, as well as review the relevant

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laws and regulations.
・With regard to ferries and roll-on/roll-off (RORO) transportation networks, which contribute toresolving the problem of driver shortage, the government will conduct field surveys from FY2020
towards enhancing the transportation efficiency through information and communication
technology and automation technology.
・As for the three major bays and the main coastal routes connecting these bays, in order to prevent
dragging anchor 39 accidents when a typhoon hits, and to enhance the efficiency of maritime
transportation, the government will compile policies in FY2020 on providing real-time information
related to the vessel traffic conditions and the recovery conditions of harbor. Then it aims to establish
the relevant systems by FY2022.
・With regard to next-generation mobility for the sea such as autonomous surface vehicles (ASV),
autonomous underwater vehicles (AUV) that are expected to serve as the so-called “drones of thesea,” and remotely operated underwater vehicles (ROV), the government will establish a council
through industry-academia-government cooperation, with the aim of compiling the basic direction
for initiatives to promote utilization by mid-FY2020.
ⅶ) Realization of safe and secure road traffic in light of recent traffic accidents
・To prevent accidents caused by speeding, the government will promote the development of new,
cutting-edge safety technologies by automotive manufacturers based on the Guidelines on theTechnical Requirements for Intelligent Speed Assistance (ISA) formulated in December 2019,
which summarizes the matters that should be noted in the design process. Furthermore, it will
advance safety measures on highways while taking advantage of the current low interest rateenvironment. An example of such a safety measure is to convert temporary two-lane roads, which
can easily cause serious accidents such as frontal collisions, into four-lane roads. As for measuresagainst reverse driving, the government will promote the development of vehicle-highway
cooperative technologies that utilize image recognition and other technologies.
・The government will secure the safety of routes that children commute through every day, with afocus on preschoolers.
－Based on the results of emergency inspections conducted, the government will strengthen efforts
to develop traffic safety facilities, including area-wide measures such as improvements to Zone
30. At the same time, the government will develop safe and secure pedestrian spaces, such as bysegregating spaces used by pedestrians, automobiles, and bicycles, expanding pedestriansidewalks, and installing protective fences. In addition, the government will promote effective
speed control measures in community road areas through the use of data such as ETC 2.0, as wellas the differentiation of functions between community roads and arterial roads through measures
Refers to a situation where the anchor slips onto the seabed when the external force acting on a ship, such as wind, is larger
than the force of the anchor holding the ship stationary in place.
39

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to improve intersections, etc. on arterial roads.
－To secure safe and smooth traffic on railway crossings, the government, in cooperation with therelevant entities such as road and railway operators, will conduct reviews into the diversificationof railway crossing measures, operating method during disasters, and systems for providing
information on the closure of railway crossings to road users, with a view to submitting a reformbill for the Act on Promotion of Railway Crossings to the ordinary Diet session in 2021.
－With the aim of securing safe and comfortable traffic spaces, the government will utilize low-cost,
single underground cable format in addition to the conventional common cable duct format basedon the plan to promote the removal of utility poles, with the aim of promoting the removal of
approximately 1,400 km of utility poles by FY2020. At the same time, restrictions will also be
imposed on the exclusive use of existing utility poles.

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6. Initiatives in Individual Fields(1) Major progress in achieving KPI[KPI] Aim to achieve 50-70% next-generation vehicles out of all new passenger vehicles sold by
2030.
⇒ The percentage of next-generation vehicles out of all new vehicles sold is 38.4% (FY2017).
[KPI] Establish commercial hydrogen stations in about 160 locations by FY2020, and about 320
locations by FY2025.
⇒ Commercial hydrogen stations have been opened in 130 locations (end of May 2020)[KPI] By FY2025, create 50 unlisted venture companies (“unicorns”) or listed venture companies
with enterprise value or aggregate market value or US$1 billion or above <Reposted>⇒16 companies (end of FY2019)[KPI] Double the scale of Japan’s space industry (approximately 1.2 trillion yen), including thespace utilization industry, by the early part of the 2030s.
[KPI] By 2030, Japan ranks first among the G20 for the World Bank’s ranking of businessenvironment.
⇒Japan ranked eighth among the G20 at the time of the announcement of the ranking in
October 2019 (one position higher than in the previous year)[KPI] Aim to improve productivity at construction sites by 20% by FY2025.
[KPI] Increase PPP/PFI project scale to 21 trillion yen in 10 years (FY2013 – FY2022). Of this, set
a target of 7 trillion yen for PFI projects that utilize the operating rights system for public
facilities.
⇒ Project scale from FY2013 - FY2018
・PPP/PFI projects: Approximately 19.1 trillion yen
・PFI projects that utilize the public facilities concession system: Approximately 8.8 trillion
yen[KPI] Increase the number of local governments, etc. that have utilized PFS methods in the threepriority areas to 100 or more by the end of FY2022.
[KPI] In the agricultural sector, almost all the business farmers utilizing data in their workflow
by 2025.
*Progress will be ascertained based on the Census of Agriculture and Forestry, etc., withexpanded survey items.

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Provisional Translation[KPI]Use 80% of total agricultural land area by business farmers over the next 10 years (up to2023) (end of FY2013: 48.7%).
⇒End of FY2019: 57.1％[KPI] Aim to increase the value of exports for agricultural, forestry and fishery products as well as
food products to 2 trillion yen by 2025, and 5 trillion yen by 2030. (2012: 449.7 billion yen)
⇒ 2019: 912.1 billion yen[KPI] Double the added value of the forestry and woodindustries originating from privately-owned
plamtedforests from the 2015 value by 2028 (2015: 250 billion yen).
⇒2018: 320 billion yen[KPI] Aim to extend the healthy life expectancy of both men and women by 3 years or more to 75
years or longer by 2040.
⇒As of 2016: Men 72.14 years, women 74.79 years[KPI] Aim to improve the service provision per unit time for the medical and welfare sectors by
5% or more (7% for doctors) by 2040.
[KPI] Aim to increase the number of foreign visitors to Japan to 40 million by 2020 and 60 million
by 2030.
⇒As of 2019: 318.8 million (2012: 83.6 million)[KPI] Aim to increase the value of travel consumption by foreign visitors to Japan to 8 trillion yen
by 2020, and 15 trillion yen by 2030.
⇒As of 2019: 4,813.5 billion yen (As of 2012: 1,084.6 billion yen)
[KPI] Aim to expand the scale of the sports market to 10 trillion yen by 2020, and 15 trillion yen by2025.40⇒As of 2017: 8.4 trillion yen (Provisional estimated value for contribution of sports to GDP)
[KPI] With regard to stadiums and arenas across Japan, establish 20 hubs from 2017 to 2025 ascenters of exchange where a wide range of generations can gather.
⇒ There are more than 80 stadiums and arenas across Japan at the conceptualization andplanning stage. There are plans to start the selection of the target facilities from FY2020.
[KPI] Aim to expand contribution of culture to GDP to 18 trillion yen (approximately 3% of GDP)A method for estimating the scale of the sports market in a continuous way that facilitates international comparison is anevaluation based on sports GDP, developed by DBJ and other organizations. At the same time, reviews are ongoing to further
refine estimation methods.
40

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by 2025.
⇒ As of 2016: 8.9 trillion yen (As of 2015: 8.8 trillion yen)
[KPI] Aim to promptly conclude RCEP negotiations, upon which, the FTA ratio will exceed 70%.
⇒As of the end of FY2019: 52.4％4142[KPI] Increase the number of broadcasting contents sold overseas to 5,000 works by FY2025.43⇒As of the end of FY2018: 3,703 works[KPI] Aim to certify 40,000 highly skilled foreign professionals by the end of 2022.
⇒ From the introduction of the point system (May 2012) till December 2019, 21,347 foreign
nationals were certified as highly skilled foreign professionals.
(2) New specific measures to be takenⅰ) Energy and environment
With regard to resuming socio-economic activities from the novel coronavirus infectious disease,rather than returning to the previous economic society, it is important to strongly promote thefollowing elements in the area of energy and environment, from the perspective of striking a balance
between coping with the coronavirus crisis and addressing the climate crisis: (a) Transition to a
decarbonized society; (b) Achievement of the Sustainable Development Goals (SDGs); (c)Expansion of environment, social, and governance (ESG) investment. It is also important totransform the “post-corona” economic and social structure to one that is more sustainable andresilient.
With abnormal weather conditions, believed to be partly attributable to climate change, occurring
throughout the world, the international community shares a need to strengthen climate change
measures, while Japan has begun introducing policies from the perspective of “climate change x
disaster prevention.” In addition, corporations around the world are beginning to position the
Sustainable Development Goals (SDGs) and ESG at the core of their business management. Against
this backdrop, and based on The Long-term Strategy under the Paris Agreement (Cabinet decision,
June 11, 2019), the government will strengthen efforts within and out of Japan, with a view toaccelerating the virtuous cycle of environment and growth through business-led disruptive
innovation in the “post-corona” society, creating employment in the environmental business sector,
and making the transition to a decarbonized society, circular economy, and decentralized society.44
The ratio of the amount of trade with countries with which EPAs & FTAs are in effect and signed as of the end of FY 2019 inproportion to Japan's total amount of trade (based on the amount of trade in 2019)42
The FTA ratio reaches 79.0% (baded on the amount of trade in 2019) when the current RCEP under negotiation is signed.
43
New KPI established this time. The Ministry of Internal Affairs and Communications Overseas Expansion Action Plan 2020,
announced on May 1, sets out the aim of increasing the number of broadcasting contents sold overseas (4,500 works by
FY2022).
44
Initiatives in the energy and environment sectors to promote the transition to a decentralized society include initiatives that41

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1. Establishing a robust and sustainable electricity supply system
・With regards to the electrical power network, through enacting revisions to the Electricity
Business Act45, the Organization for Cross-regional Coordination of Transmission Operators has
formulated a master plan for nationwide power grid development, and, in conjunction withmaking improvements based on future power source potential, will work to make the electrical
power network more robust by allowing a portion of power grid development costs to be added
to electric bills. Alongside with that, under the Electricity Business Act, based on the condition
that the Minister of Economy, Trade and Industry approves "revenue caps" and that they arewithin those limits, power transmission and distribution businesses are encouraged to strengthentransmission and distribution grids, to steadily carry out necessary transmission and distribution
investments such as planned renewal of steel towers, and to increase cost efficiency by
establishing a system that allows flexible changes in transmission charges.
・As for power sources, businesses that bundle distributed power sources and provide them as
supply capacity (aggregators) will take advantage of their legal position to promote energy
systems with true local production and local consumption of energy through further spread andexpansion of distributed power sources.
・Additionally, with regards to renewable energy, which is the largest pillar in domestic energy
production for fulfilling international responsibilities for decarbonization, a system in which
certain premiums are added and issued to the market price (Feed in Premium (FIP) system) wasestablished in addition to the fixed price purchase system (FIT system) through enacting revisions
to the Act on Special Measures 46 Concerning Promotion of Renewable Energy Electricity.
Operation of both systems will promote maximizing the introduction of renewable energy while
limiting the burden on citizens.
・Additionally, for nuclear power, the restarting of nuclear power plants will be promoted while
gaining the understanding and cooperation of the relevant individuals and local governments, etc.,
and if the Nuclear Regulation Authority finds that the nuclear power plant in question meets thestrictest regulatory standards in the world. Furthermore, the government will start to strengthen
human resources, technology, and the industrial base, and will promote research and development
for the future, such as pursuing reactors with excellent safety, etc.
・In doing so, the government will advance international cooperation, human resource development,
and technological development aimed at resolving backend issues including thepromote the sustainable use of local resources, such as the introduction of renewable energy in the region and promoting
coexistence of nature and human beings.
45
The master plan for the development of power grid by wide-area power organizations will be enforced from the datestipulated by government ordinance, not exceeding one year and six months from June 12, 2020. Power distribution
business/aggregator, etc. will be enforced from April 1, 2022, and revenue cap will be enforced on the date stipulated bygovernment ordinance, not exceeding 3 years and six months from June 12, 2020.
46
Effective April 1, 2022

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decommissioning of reactors. At the same time, it will also approach initiatives based on aconsideration of initiatives by other countries, including the utilization of research and test
reactors such as experimental breeder reactors and high-temperature gas-cooled reactors, thedevelopment of nuclear fusion technology, and further, the development of innovative nuclear
reactors such as small modular reactors.
・Furthermore, the government will strive to restore social trust through efforts to enhance disasterprevention measures and improve voluntary safety control.
・The government aims to establish a capacity market by mid-FY2020, and a supply and demand
regulated market by mid-FY2021.
・Alongside with the aim to designate base ports, which are indispensable for offshore wind power
generation, within FY2020, the government will also formulate safety guidelines by FY2021.
2. Responding to energy issues and the state of future energy strategy
・Japan's energy issues include (a) responding to stagnating electric power investment anddeteriorating facilities, (b) responding to global climate change problems, and (c) responding tochanges in the situation regarding nuclear power generation.
・With regards to the major directions of future energy strategies, including long-term and global
energy issues (natural disaster risk, geopolitical risk, burden to citizens, outlook for technologicaldevelopment47, and the status of energy investment, etc.) and recent energy-related issues facing
Japan (handling of energy sources such as fossil fuels and renewable energy, maintenance of
networks and distributed systems, fuel procurement, and improvements to the investment
environment, etc.), a new forum for discussions will be established at the Council on Investments
for the Future and bold visions from a broad perspective will be considered while taking into
account the balance between climate change, stable energy supply, and cost.
・Based on the Environment Innovation Strategy (decided by the Council for Integrated Innovation
Strategy on January 21, 2020), the government aims to establish, by 2050, innovative technologythat makes it possible to realize a carbon-neutral world, and further, to reduce CO2 emissions
based on past carbon stock (“beyond zero”), and to develop low-cost next-generation batteries,
energy control systems through digital technology, hydrogen reduction steelmaking technology,
plastic production technology using artificial photosynthesis, concrete and bio jet fuel/synthetic
fuel with CO2 as the raw material, technology for the absorption/fixation of CO2 by agriculturalland, forests, and oceans, and products utilizing highly functional materials such as cellulose
nanofiber. The government will also promote international collaborative research through the
Global Zero Emission Research Center of the National Institute of Advanced Industrial Scienceand Technology (AIST) and the Green Innovation Summit, strengthen international cooperation,
Renewable energy, hydrogen, CCUS and carbon recycling (separation and utilization of CO2), nuclear power, AI utilization,
etc.
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and advance the materialization of large-scale demonstration projects for low-carbon technology
at Tokyo Bay.
・The government will advance initiatives to strengthen the competitiveness of the renewableenergy industry. These include the development of innovative technologies such as flexible,
lightweight and high-efficiency solar power generation, supercritical geothermal power
generation, and floating offshore wind power generation, the advancement of offshore wind
power components, and demonstrations on the optimization of the use of forests for energy
applications.
・Towards the realization of a hydrogen society, the government will advance efforts to build adiverse model for social implementation in the future. These include, for example, technologicaldevelopment and international cooperation aimed at creating demand and reducing costs, such as
the realization of one-tenth of the production cost of CO2-free hydrogen, the establishment of aninternational supply-chain, and the utilization of hydrogen derived from renewable energy by
local communities and actualization of environmental value.
・To achieve the realization of a decarbonized society through integrated domestic and external
efforts, the government will work on phasing out inefficient coal-fired thermal power, and provide
support for the export of coal-fired thermal power based on new policies established under theoutline of the new strategy for infrastructure export (decision by the Management Council for
Infrastructure Export Strategy on July 9, 2020). At the same time, with regard to CCUS andcarbon recycling, the government will establish a demonstration and research facility on
Osakikamijima in Hiroshima Prefecture by FY2022, and advance demonstrations on the CCUS
process, as well as demonstrations on capture and utilization from emissions gases generated
through biomass/waste matter, at Tomakomai in Hokkaido.
・Based on the New International Resource Strategy, the government will strengthen initiatives
related to resource diplomacy, the securing of interests, and global warming measures, as well as
promote the development of domestic resources such as methane hydrate, submarinehydrothermal polymetallic ore, and rare-earth mud.
3. Promoting green finance・In FY2020, the government will conduct reviews on the issues and response measures, etc. related
to the dissemination and spread of ESG regional finance, formulate a strategy/vision in relation
to that, and revise the ESG Regional Finance Practical Guide.
・The government will add industries, increase the number of case studies, and carry out other workon the Task Force on Climate-related Financial Disclosures (TCFD) Guidance, and publish it bysummer 2020. It will also move forward on popularizing the Green Investment Guidance, as wellas on enhancing the scenario analysis guide and utilizing the environmental information
disclosure platform during FY2020 and disseminate it to the world at the next TCFD Summit.

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・The government will build a framework, by autumn 2020, to encourage companies that areachieving significant CO2 emissions reduction, and which are engaged in innovation, to supply
private funds (Zero Emissions Challenge).
・The government will review the approach to finance for high-emission industries to move toward
low-carbon and decarbonization, and reach a conclusion as well as create an environment in
FY2020.
4. Business-led international roll-out and international cooperation
・With the aim of establishing and launching projects that integrate decarbonization technology andthe development of the relevant systems under the public-private initiative, Cleaner Energy
Future Initiative for ASEAN (CEFIA), led by Japan, the necessary data and test facilities, etc. will
be provide to the government of the partner country.
・Through the utilization of the bilateral credit system based on the Paris Agreement (JCM), support
for the establishment of systems in the partner country, and other initiatives, the government will
promote the international expansion of environmental infrastructure in areas such as
decarbonization, waste disposal, recycling, and domestic wastewater treatment.
・Toward the realization of the Osaka Blue Ocean Vision, in addition to international roll-out
through means such as the utilization of global data aggregation that Japan is pushing forwardwith a view to 2023, the government will also develop policies for reducing marine plastic litterby local governments as well as models for local businesses.
・By promoting the development and practical application of low-carbon and decarbonization
technologies for marine vessels, as well as the establishment of an international system to promote
the replacement of vessels with new vessels by 2023, the government will bring about therealization of the commercial operation of vessels that emit zero greenhouse gases by 2028.
・With regard to reducing CO2 emissions in the international aviation sector under the International
Civil Aviation Organization (ICAO), Japan will take the initiative and lead all countries to review
long-term goals that can strike a balance with sustainable development by 2022.
5. Initiatives in the industry and transportation sectors
・The government will promote the formulation of targets and implementation plans with the aimof realizing, within FY2020, the participation of 100 companies in the Science Based Targets
initiative (SBTi) that is aligned with the Paris Agreement.
・The government will conduct demonstrations on the fusion of mobility and energy infrastructure
through the utilization of electricity storage and supply functions of electric vehicles, and othermeans, and promote the development of infrastructure and its smooth utilization during a disaster.
・With a view to the popularization of next-generation automobiles and the achievement of targets
by 2030, the government will engage in the development of alternative technologies and66

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technologies to reduce the amount of rare metals used. This contributes to overcoming resource
constraints related to the production of rare-earth magnets, which are indispensable for theelectrification of automobiles.
・In order to achieve low-carbonization for port logistics and waterfront industries, alongside withthe utilization of onshore power supply facilities for ships, the government also aims to establish,
by FY2023, methods for measuring the reserves of carbon accumulated by marine ecosystems
such as seaweed beds and shoals (blue carbon), and to reflect these in the United Nations
Framework Convention on Climate Change and other conventions.
6. Initiatives for community, living, the Fukushima Plan for a New Energy Society, Climate
Change and Disaster Risk Reduction, etc.
・Alongside with the materialization of a regional circular and ecological sphere (CES), as well as
the realization, by summer, of a population of 65 million under local governments that havedeclared zero CO2 emissions by 2050 (Zero Carbon Cities), the government will advanceinitiatives that include environmental improvement, such as the visualization of areas that are
optimized for the introduction of renewable energy in the regions and the facilitation ofconsensus-building, the promotion of the utilization of renewable energy by corporations andpublic organizations, the enhancement of measures based on implementation plans by local
public organizations, and the social implementation of the “nudge” policy.
・The government will conduct reviews aimed at compiling the final concrete plan for thematerialization of the Resource Circulation Policy for Plastics within FY2020, and provide
support for the social implementation of innovative technology such as next-generation recycling
as well as the creation of circulation businesses that utilize digital technology. The government
aims to formulate guidance to promote financing for a circular economy within the year.
・The government will provide support for power interchanging between buildings through DC
power supply, and promote the popularization of ZEH/ZEB 48 , the insulation retrofitting ofexisting houses and buildings, the replacement of high-efficiency equipment, and the introductionof storage batteries.
・The government will consider the digitization of procedures for the J-Credit Scheme and thecreation of a market that utilizes blockchain and other technologies, with the aim of launching
operation from FY2022 at the earliest.
・The government will promote the renovation and optimization of sewage treatment. This includes
the wide-area management of sewage treatment plants through the use of ICT and AI, thestandardization of the sewerage ledger system by FY2022, the conversion of single septic tanks
in response to changes in the law, and the development of a septic tank ledger system.
・Field validation will be carried out for initiatives to promote renewable energy, such as the felling
48

ZEH refers to Net Zero Energy House, while ZEB refers to Net Zero Energy Building.

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Provisional Translationof trees in river channels and using them as fuel for biomass power generation, and a conclusion
produced in mid-FY2023.
・Taking the opportunity of the 15th meeting of the Conference of the Parties (COP 15) to theConvention on Biological Diversity (CBD), the government will promote the SATOYAMA
Initiative, which aims to conserve land, mountains, and seas from a landscape approach. Effort willthen be made to formulate the National Biodiversity Strategy, based on this Initiative, in many
developing countries by the mid-2020s.
・To achieve Fukushima Prefecture’s goal of producing renewable energy at a level that is 100% ofenergy demand within the prefecture by 204, the government will accelerate initiatives toward
the realization of a future society based on renewable energy as well as the creation of renewableenergy industries and research and development centers. Furthermore, the government will
promote the development of models for a hydrogen society, and the development of decarbonized,
future-oriented urban areas.
・From the perspective of climate change and disaster risk reduction, the government will promotedisaster risk reduction and mitigation utilizing the natural ecosystem, such as wetlands withretarding effect, the maintenance and utilization of climate change risk information related todisasters, etc., heat stroke measures, and the strengthening of resilience during disasters throughthe effective utilization of energy generated by waste disposal facilities.
ii) Oceans and space
1. Oceans
1. Oceans
・The security situation surrounding Japan's territorial sea and the surrounding seas, including Japan's
exclusive economic zone, has become even harsher, and Japan's maritime interests are exposed tomore serious threats and risks than ever before. Additionally, issues such as climate change andmarine litter containing microplastics have become apparent in recent years despite rising
expectations for the development of marine resources and development of marine energy, and there
is growing interest in conserving marine environments, both domestically and abroad.
・ Against this backdrop, Japan will strengthen its ability of Maritime Domain Awareness(strengthening abilities to collect marine information and strengthening systems for aggregating andsharing this information) from the perspectives of economic security and the growth of marinerelated industries. Specifically, efforts related to Arctic research vessel will be promoted, in addition
to the utilization of oceanic data such as sea temperature, ocean currents, and ship traffic, and thesharing of such information with the public and private sectors, so as to optimize maritime routesettings and improve accuracy when searching for fishing areas. Development of marine resources
will be promoted through these efforts.
・With regard to deepening marine industry cooperation with other countries, efforts will be made to68

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strategically promote cooperation related to the development and operation at major ports from theviewpoint of strengthening relationships with countries along the sea lines of communication. In
addition, initiatives will be further promoted to strengthen the international competitiveness ofJapan’s international shipping and shipbuilding industries, with the aim of securing stableinternational maritime transportation.
・To contribute to maritime security and the revitalization of the ocean industries, the government will
work to build capacity on the collection of the aforementioned marine information and to strengthen
aggregation and sharing systems, as well as promote international collaboration and cooperation andenhance the capacityfor MDA.
・With regard to oceanic data, in addition to enhancing the user-friendliness of the MDA Situational
Indication Linkages (MSIL) system, the government will advance the following initiatives integrally
so as to create an environment to facilitate the steady progress of cooperation on oceanic data by
FY2022, with a view to promoting the sharing and utilization of data between ocean stakeholders(national and local governments, and private-sector entities (business operators) in sectors such as
maritime transportation, fishery, and resource development).
―Incorporate, into the MSIL system and during FY2020, functions for accepting data requests fromoceanic data users such as private-sector businesses in the maritime transportation, fishery, andresource development sectors, and enhance real-time information such as seawater temperatureand ocean currents.
― Formulate rules related to API collaboration on oceanic data and the standardization of data andencourage the relevant stakeholders to utilize the data.
―In addition to the above, launch initiatives such as the building of networks with private-sector
organizations and local governments with oceanic data and needs, the convention of forums thatinvolve the participation of stakeholders from both the public and private sectors, promotion of
the registration of data on the MSIL system, and the publication of MSIL’s API.
・In addition to the steady promotion of the aforementioned initiatives related to Arctic research
vessel, the government will also engage in the Arctic Challenge for Sustainability II (ArCS II)
project and international cooperation, among other initiatives.
2. Space
Based on the Basic Plan on Space Policy that was decided by the Cabinet in June 2020, spacedevelopment and utilization will be expanded through the following measures.
a) Contribute to the International Space Exploration Program (Artemis Program) proposed by
the United States
・The United States has proposed international space exploration aiming for continuous lunar surface
exploration through sending astronauts to the surface of moon again, and in October 2019 Japan alsodecided to participate. Japan will contribute with technology for crewed stays in space, such as the69

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environmental controls and life support technology, and with logistics cargo, -that are one of Japan's
strengths. At the same time, Japan aims to secure opportunities for Japanese astronauts to play activeroles and to develop resources on the lunar surface in the future and is promoting development of
the basic technologies (technologies for landing on and mobile exploration of celestial bodies, water
exploration technology, etc.) necessary for sustainable exploration activities.
b) Promote expanded use of satellite data
・Satellite data from space has the possibility of serving as the infrastructure to support the Fourth
Industrial Revolution. For example, in the field of agriculture, efforts have already started to predict
optimal rice harvesting dates from satellite data, to color-code harvesting times, and to support
production. While the use of satellite data is expected to expand in autonomous driving and indisaster response, the use of highly public data from government satellites will be expanded byproviding the data in free of charge in a format that is easy to process and analyze, while also paying
attention to avoid disrupting satellite data sales conducted by private businesses. In addition, there
will be steady promotion of the Advanced Geospatial Information Utilization Society (G-Spatial
Society) Project, including by building integrated geospatial disaster prevention and mitigation
systems.
・With regard to the government’s satellite data platform “Tellus,” efforts will be made to also
maximize the application of knowhow from the private sector, and to expand data and analytical
tools from FY2020.
・With a view to streamlining and improving the work of government ministries and agencies, thegovernment will expand the use of satellite data by promoting the proactive use of satellite data by
each ministry and agency, as well as strengthen cooperation with local governments and promote
the use of satellite data in the regions.
・As for quasi-zenith satellite systems, the government will establish a seven-satellite system while
also enhancing functions and performance, with a view to launching operation in FY2023. It will
also steadily develop and maintain the corresponding ground facilities as well as strengthen security,
while working on improving efficiency. Furthermore, in addition to the steady operation of GNSS
Earth Observation Network System (GEONET), the government will advance demonstration
projects in a wide range of fields such as agriculture, transportation and logistics, and construction,
and accelerate the social implementation of these projects.
c) Improve an institutional environment for new space businesses
・As for sub-orbital flights49, which are expected to enable space travel and the airborne launch of small
49

The Space Activities Act only regulates the launch of satellites to altitudes of 100 km or higher and is not applicable to suborbital flights (flights to an altitude of approximately 100 km). On the other hand, the Civil Aeronautics Act does not apply to
sub-orbital flights as it does not envision aircraft flying at altitudes of approximately 100km, so it is necessary to develop a
new system for sub-orbital flight.

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satellites, the improvement of an institutional environment to develop new space businesses will bepromoted, taking into consideration the activities of private companies aiming for commercializationof space in the first half of the 2020s.
・The government will review the establishment of the necessary systems for resource exploration anddevelopment in outer space, including on the surface of the moon, by private-sector businesses.
・ With regard to space debris measures, the government, in cooperation with private-sector
corporations, will take the lead in establishing international rules from FY2020, as well as engage in
research and development toward the validation of debris removal technologies. It will also work on
developing systems that can provide information on the orbit of space objects appropriately toprivate-sector corporations and other organizations.
d) Promote the development of innovative technology toward the expansion of spacedevelopment and utilization
・With a view to satellite development based on an analysis of the future needs of users, thegovernment will build development and demonstration systems in FY2020 through crossministerial collaboration and industry-academia-government partnership, and engage in thedevelopment of core technologies such as quantum cryptographic communication as well as agile
development through microsatellites.
・The government aims to complete the complete the launch vehicle H3 during FY2021, and will also
engage in research and development on future space transportation systems that can realize
significant cost-cutting.
・In addition to strengthening the development of cutting-edge technology for space security and spacescience/exploration, the government will also apply the results of development to the industrial sector
while promoting the development of specialists and experts who can drive the creation of new
industries.
e) Promote the expansion of procurement from venture companies
・The government will expand the scope of the space industry by expanding procurement from privatesector corporations, including venture companies, in projects implemented by the government orother entities (such as removal of space debris). For this reason, it will advance reviews on
procurement and contracting methods of government organizations in areas such as the utilizationof a new Japanese version of the SBIR system, and the introduction of a flexible contract format
such as the milestone payment system.
ⅲ) “Smart” public services
Toward the realization of “smart” public services, the government aims to provide a simple,
intuitive, easy-to-understand and user-friendly user interface. At the same time, it will also bring71

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about greater convenience by further enhancing the automatic processing of administrative
procedures and data linkages, and by providing administrative procedures and services in a way thatis linked with transactions and services in the private sector so as to reduce the burden on users.
Based on these and in line with the three principles for the digitalization of administrative
services—Digital First, Once Only, Connected One-stop, efforts will be made to further accelerate
digitalization in this area, including in the regions, and the promotion of the active use of digitaltechnology in the private sector. In order to achieve administrative services that meet the needs ofevery individual citizen by 2030, the government will promote shared use and the transition to a
cloud-based system for government information systems, as well as procurement throughinteractive technology that contributes to the development of flexible, efficient, and effective
systems. At the same time, it will undertake reviews of regulations and practices that require faceto-face meetings, written documentation, and the use of stamping seals. These measures,
implemented as a part of Japan’s rapid social reform, will provide the foundation to support
administration in the digital era.
Furthermore, the government will put in place initiatives to make Japan “the world's easiest
country for companies to do business in,” based on the Initiatives for Improving the Business
Environment (revised in 2020) (decided on April 20, 2020, by the Liaison Conference of theRelevant Ministries for Improving the Business Environment).
1. Promoting digital government
・Based on the Digital Government Execution Plan (Cabinet decision in December 2019), thegovernment will implement measures such as strengthening the centralized project management ofgovernment information systems, including consolidated requests for budgets related to themaintenance and operation of digital infrastructure as well as the full-scale use of cloud services, andthe promotion of one-stop services. The necessary reviews will also be conducted within the year,
and efforts made to accelerate the realization of the respective measures.
The government will also advance the development of a teleworking environment for national
civil servants and the rebuilding of a network environment in administration, which will benecessary in order for the government to execute administrative functions appropriately during timesof emergency, such as during an outbreak of an infectious disease or when disasters such as
earthquakes and typhoons strike, in the same way as they function during normal times.
・With regard to the “the non-stop child rearing service” that aims to digitalize procedures related tochild-rearing in collaboration with app developers in the private sector, reduce the burden on
households with children, and streamline the work of local governments, the government will work
toward nationwide roll-out from FY2023, beginning with the parenting status notification for childallowance and periodic vaccinations, based on the roadmap announced in March 2020. At the sametime, the government will conduct reviews on other reviews such as childcare and health72

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examination for infants and young children and bring about the realization of an environment thatprovides seamless support at the optimal timing, from pregnancy to preschool.
－As for the further simplification of the parenting status notification for child allowance, thegovernment aims to conduct reviews in FY2020, and based on the results of the reviews, establish
the necessary systems. It will also conduct reviews on data standardization, standardizationarchitecture, and other matters related to the digitalization of the status notification, with a view
to launching trial operations in FY2021.
－With regard to periodic vaccination, a review will be conducted based on feedback frommunicipal governments and medical institutions, with the aim of launching trial operations in
FY2020. While taking the needs and requests from the review into consideration, further reviews
will be conducted toward the realization of concrete frameworks and systems.
・To enable both the public and private sectors to use cloud-based systems in a sustained manner withgreater safety and peace of mind, a security evaluation system for government information systems
will be established in FY2020 to clearly set out the unified security requirements, and all government
agencies will be encouraged to make use of this system. Furthermore, the approach to sharing thecost burden for this system among all government agencies will be concluded by FY2020.
・The public safety LTE system is a communications system that can be used jointly by the relevant
ministries, agencies, and organizations such as the police, fire and emergency departments, MLIT,
defense, and disaster prevention. In order to bring about the realization of this system, a review
framework comprising the service providers and users will be established, and a comprehensive
validation carried out from both the viewpoints of operation and technology. At the same time, areview will be conducted on the issues and direction of concrete measures, and based on the resultsof the review, the government aims to put in place advance services for some agencies from FY2021.
2. Promoting the digitalization of local governments
・With regard to the information systems of local governments, effort will be made to promote thetransition to cloud-based systems for even wider areas, while further advancing the use of cloudbased systems by local governments. In doing so, it is important to ensure that lines and data are
secure and available to enable local government officials to shift securely to a wide-area cloud-based
system, and to secure a competitive environment that does not cause vendor lock-in. Therefore, thegovernment will install safe, high-capacity lines that are able to cope with wide-area cloud-based
systems for LGWAN, which will serve as the foundation for this digitalization process. Furthermore,to build the systems that will be used by local governments, the Ministry of Internal Affairs andCommunications will present a specific direction by this summer to enable the active involvementof local governments with regard to aspects such as lines and security.
・In order to move the information systems of local governments toward a more wide-area cloud-based
system, it is important to abolish the customization of information systems by the respective local

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governments. Alongside with the steady implementation of standardization measures led by thecentral government, the relevant ministries and agencies will work in cooperation to consider acomprehensive response for the standardization of information systems, including security standards,
and reach a conclusion as soon as possible. This review will be conducted based on therecommendation by the Local Government System Research Council that standards based on laws
and regulations should be established for the functional requirements of systems and other aspects.
・The necessary reviews will be conducted on the “three-tier measures” that have been implemented
to date, from the perspective of striking a balance between enhancing efficiency and convenience
for local governments, and protecting security. Specifically:－For administrative processes that use “My Number” to deal with residents’ information, follow
the principle of separating such work from other areas, and at the same time enable the direct
import of electronic application data into the system via the Internet under the eLTAX and “Pittari”
service systems.
－Put in place adequate personnel security measures, and review new models for migrating businessterminals, finance and accounting, human resource and payroll, as well as other systems, tosystems connected to the Internet, within the scope of administrative procedures that do nothandle particularly important information (such as residents’ information). After that, revise the
Guidelines for Information Security Policy in Local Governments (formulated on March 30,2001) in 2020.
As for the security requirements for connecting to public cloud systems from the internal
environments of local governments, further reviews will be conducted based on the implementationof security evaluation systems for the central government’s information systems, and a definite
direction will be decided on in FY2020.
Furthermore, in order to advance remote access and move administrative procedures online for
local governments, the government will provide the necessary support with regard to theintroduction of teleworking and the establishment of universal electronic application systems,
including financial support for new measures that are being implemented from FY2020.
・In order for local governments to engage in sustainable administrative operations while responding
to diversifying residents’ needs, effort will be put into wide-ranging horizontal expansion of results,
such as the formulation of standard specifications and introduction procedures, through means suchas the development and demonstration of cloud-based AI services in a wide range of administrative
sectors. An environment that enables the shared use of AI by multiple organizations will be createdby FY2022.
・The Digital Service Square was developed as a beta-version of the “marketplace” to consolidate,within a single place, useful digital services and applications for government and citizens that havebeen developed by venture businesses and NPOs. From FY2020, the full-scale operation of thisservice will be launched, and support will be provided for the efficient introduction of digital services

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and applications in local governments.
3. Realization of “the world's easiest country for companies to do business in”a) Realization of one-stop services for corporations
・The government will move to an online, one-stop system for incorporation procedures so as to createa world-class entrepreneurial environment, and implement the following initiatives. At the same time,
it will periodically verify the status of progress of these initiatives, conduct a review around FY2021,
and put in place the necessary measures.
－Aim to launch a one-stop service for all procedures including the certification of articles ofincorporation and registration of incorporation, as well as to make it optional to submit aregistration of seal impression alongside with the registration of incorporation (including theonline submission of the registration of seal impression), around February 2021.
－Enable the simultaneous issuance of the gBizID as a part of the one-stop service for incorporation
procedures, and make it possible for users to request for online issuance as a measure forenhancing convenience with regard to the electronic certificate for commercial registration. In
addition, consider measures for reviewing fees, including the suitability of making the electronic
certificate for commercial registration free of charge for a certain period of time, as well as
measures for expanding the opportunities for use.
－Consider an approach to the commercial registration system that makes it possible to ascertain
the beneficial owner of the corporation after its establishment, and reach a conclusion in 2020.
・ The government will establish a digital foundation for improving the convenience ofadministrative procedures for corporations, such as the gBizID, by the end of FY2020, andgradually expand use of the system from FY2021.
b) Electronification and automation of taxation and social insurance procedures・With regard to matters such as the automated input of various application forms through data
linkages that make use of Mynaportal, an online portal for procedures related to year-end
adjustments and final returns for income tax, the government will formulate a roadmap in
FY2020 with the aim of realizing the electronification of documents related to deductions andincome, such as deductions certificates for social insurance and the hometown tax.
・As for tax and social insurance procedures, the government will enable the seamless completionof the series of procedures from tax returns (applications and notifications) to tax payments(submission of payments), in order to further promote the use of electronic filing and electronic
payment services. Furthermore, the government will review needs and issues related to the fullscale roll-out of the cross-cutting “Once Only” system in FY2020.
・Concerning the move to cashless tax and public funds systems and the electronic payment
methods for corporations, the government will review the challenges in moving direct debit75

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applications completely online, including direct payments, as well as the approach to electronicdelivery systems for notices of disciplinary actions from administrative agencies, such as thenotice of the amount for special tax collection and pension-related documents.
・As a part of efforts to expand the target tax items for the common tax payment system for local
taxes, from October 2021, the government will computerize tax filing and payment proceduresfor financial institutions and other parties subjected to special tax collection, such as withheld tax,
levy on dividends, and levy on income from transfer of stock or other assets for individual
inhabitant tax. Taking into consideration the status of reviews by local governments andeconomic organizations, the government will also continue to undertake reviews on expanding
the tax items, which many taxpayers have called for, and come up with a future direction for
promoting use of the system.
c) Promoting the adoption of IT for court proceedings, etc.
・The following initiatives will be implemented while ensuring respect for the autonomous judgementby the judicial branch.
－Revisions will be made to the Code of Civil Procedure and other laws during 2022, in order torealize online petition, digitization of case records, service of complaint by electronic means,electronic payment for fees, etc., and appointed court dates for non-face-to-face hearing on which
neither party appears.
－Based on the summarization by the Liaison Council of the Relevant Ministries and Agencies
concerning the Promotion of Civil Justice System Reform, and in consideration of the IT
situation, the government will gradually consolidate the means of filing documents such ascomplaints into online filing, while taking care to secure the people’s access to justice. In thisprocess, mandatory online filing only for professionals, such as lawyers and Shiho-Shoshi(judicial scriveners), will be considered. With regard to lawsuits undertaken without legal
representative (“pro se litigations”), contents of supports by the Japan Legal Support Center,
including IT support such as assistance in the digitization of documents as well as legal advice,
will be considered from FY2020. In addition, it is also expected that other organizations, such as
the Japan Federation of Bar Associations and Japan Federation of Shiho-Shoshi's Associations,will consider such supports. Furthermore, measures to promote the use of online filing, such aspreferential treatments (including the collection of digitization fees when documents are
submitted in paper form), will be considered.
－The government will put in place the necessary measures with the expectations that the judicial
branch will conduct the following things: (a) The operation of non-face-to-face consultations
through web conferences, which are already available under the existing Code of Civil Procedure,
will be launched in FY2020 at the main offices of district courts all over Japan, and successively
launched at branches of district courts from FY2021. Successive expansion to the high courts etc.

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will be considered based on an assessment of the situation; (b) Based on the premise ofamendment to the Code of Civil Procedure and other laws in 2022, 1) expansion of the operationof non-face-to-face proceedings for arranging issues, and launch of operation of appointed court
dates for non-face-to-face settlement etc., could be conducted in FY2022 at the earliest, and 2)
operation of appointed court dates for non-face-to-face oral arguments could be launched in
FY2023 at the earliest; c) Operation of filing briefs through electronic data processing systems
under the existing Code of Civil Procedure will be aimed to achieve promptly in some courts
during FY2021, and widespread use of electronic filing will be promoted thereafter; (d)Regarding the full-scale implementation of online filings based on the premise of amendment of
the Code of Civil Procedure and other laws, system development and amendment of regulations
will be implemented in parallel with studies and deliberation by the Legislative Council of the
Ministry of Justice, overall plan for the adoption of IT will be formulated, and the full-scale useof electronic filing etc. will be aimed to achieve in FY2025 , while considering its partial use inadvance; (e) IT support at courts for pro se litigations will be considered, and case management
systems will be established as easy to use from the user’s perspective; (f) Improvements tooperation in order to realize planned, fair and speedy trials will be considered.
－Reviews will be conducted on the propriety of creating special court proceedings, including thesetting of a maximum trial period. While also taking into account the consideration of the
adoption of IT for civil procedure in the Legislative Council, reviews will be conducted on theschedule for the adoption of IT in FY2020, such as proceedings for domestic relations cases, civil
provisional remedies, civil execution, and bankruptcy proceedings.
－With a view toward adopting open-data and big data for civil judgement data, reviews will beadvanced toward the appropriate utilization of civil judgement data, including consideration ofprivacy and trade secrets as well as measures toward the structuring and standardization of data.
The aim is to set out a path for the future in FY2020.
－With the aim of enhancing efficiency and realizing non-face-to-face, remote proceedings incriminal procedure as far as possible, reviews will commence in FY2020 on measures for the
adoption of IT in investigations and trials, such as the online receipt and delivery of documents
including warrant requests and issuance, electronification of data for criminal documents, andtrials conducted online.
・To promote online dispute resolution (ODR), the following reviews will be conducted in FY2020:
reviews that include consideration of the need to reexamine certification systems such as the making
settlement agreement in dispute resolution procedures related to alternative dispute resolution (ADR)
in the private sector enforceable, and the strengthening of the duty of confidentiality for certified
dispute resolution business operators; reviews on the implementation of non-face-to-face/remoteconsultations and proceedings carried out online in cases such as administrative ADR including
designated dispute resolution organizations under the financial ADR system, consultation centers for77

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subcontractors, as well as the Japan Consumer Information Center, agreement and securing thefulfilment of obligations with regard to child support and visitation and other contacts after divorce;
reviews on promoting the introduction of ODR by platform operators, relating to consumertransactions conducted via platform-based e-commerce.
・To cope with the increase in cross-border consumer disputes, the Cross-border Consumer Center
Japan of the National Consumer Affairs Center of Japan will strengthen its stance and functions,such as by strengthening the personnel system and supported languages, and reviewing theprocessing of consultations through the use of IT.
d) Improve trade procedures, port logistics, etc.
・In addition to establishing ”Port Data Collaboration Platform (tentative)” within 2020 to facilitate
port logistics, including trade procedures between private-sector businesses from different industries,
reviews will also be conducted on data linkages with other systems, and a conclusion will be reachedin FY2020.
・The full-scale operation of CONPAS50 at Yokohama Port will be launched in FY2020, alongsidewith other measures, toward the realization of “AI terminals that assist harbor workers.”e) Digitalization of real-estate information and services
・From the perspective of abolishing the practices of acquiring and submitting certificates of fixed asset
valuation, reviews will be conducted in FY2020 on measures such as promoting the expansion of
online provision of asset valuation notification to the Legal Affairs Bureau by municipal
governments, which commenced in January 2020, and the utilization of the statement of fixed asset
tax in company registration procedures.
・Based on the premise of ensuring security for real-estate transactions, and taking into account theresults of social experiments that are currently being conducted as well as other information, thenecessary systems will be established with a view to the full-scale operation of the explanation ofimportant matters through the use of IT in sales transactions. At the same time, capturing theopportunity of recent legal amendments, revisions will be made to the relevant provisions of the Real
Estate Brokerage Act to enable, for example, the issuance of documents on important matters in realestate transactions through electromagnetic devices.
4. Radical review of regulations and practices that require face-to-face meetings, written
documents, and the use of stamping seals
・The following initiatives will be implemented to promote the digitalization of economic activities,
etc. in the private sector, including teleworking.
－The government, in cooperation with the business community, will conduct a review of systems
50

Abbreviation for “Container Fast Pass,” the new port information system.

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Provisional Translationand practices such as the use of stamping seals and submission of written documents. In particular,
with regard to various procedures in financial institutions, the government will review practices
across the whole of the financial sector and promote electronification alongside with the abolitionof face-to-face meetings, written documents, and use of stamping seals.
－As for commercial transactions in the private sector, in addition to presenting a point of view inresponse to concerns over the abolition of the use of stamping seals or the significance ofprovisions in laws related to stamping seals, the government will also clarify the interpretation ofelectronic signatures in the Act on Electronic Signatures and Certification Business and promotewidespread awareness.
－ In principle, the necessary reviews on all administrative procedures that require written
documents, the use of stamping seals, and face-to-face meetings will be conducted in 2020.
－At the same time, the transition to online, one-stop, and “once only” systems for administrative
procedures will be advanced radically. In principle, initiatives such as the abolition of face-to-facemeetings and the use of stamping seals, reduced use of application forms as far as possible, andinformation sharing through a corporate data linkage platform (gBizConnect), will be accelerated.
－With regard to the internal procedures of administrative agencies and other organizations,alongside with the swift abolition of the use of stamped seals and document submissions, etc. that
do not require institutional response, reviews will also be conducted in 2020 on practices that
require institutional responses, as a part of an overarching work review that covers all work
processes across the public and private sectors. In particular, with regard to accounting processes,
effort will be made to reduce the burden on the partner to a contract, such as by abolishing the useof stamping seals, except on the contract itself, and by promoting the active utilization ofelectronic means for contracts.
5. Promoting the “My Number” card and its active use
・With the aim of building a safe, secure, and highly convenient digital society as well as a fair andefficient administration founded on the “My Number” card, and based on the policy for promoting
the “My Number” card and the active utilization of the “My Number” system (decision by the
Ministerial Meeting on Digital Government, on June 4, 2019) and the Digital Government Execution
Plan, the government will advance the necessary measures such as measures to stimulate
consumption through the use of “Myna Points,” use of the “My Number” card as a health insurance
certificate, and the digitalization of various cards through the use of the “My Number” card.
・With regard to the “My Number” system, which forms the basis for a digital government, radical
measures will be taken to make it more convenient and user-friendly for the citizens based on
the fundamental principle of completing administrative procedures online.

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・In order to expand PHR51, alongside with efforts to implement the necessary legal measures in
2021 for using the “My Number” card to provide lifelong health data, from birth to work, as acomprehensive list through the use of the “My Number” card by 2022, a review will also be
conducted on the approach for the application of such data to medical and nursing research.
Digital support will also be promoted to make it unnecessary to present one’s disability certificate
in order to use a disability discount, but to replace it with the use of the “My Number” card as
the official personal identification certificate. Moreover, with regard to areas such as e-Tax, effort
will be made to successively expand the scope of information that can be input automatically(such as medical expenses, bank account for the transfer of public funds), and to enhance theuser-friendliness of the “My Number” card.
・Reviews on integrating the residence card with the “My Number” card will be advanced, and aconclusion reached in 2021.
・A review will be launched on matters related to driver’s licenses, including the approach toissuance procedures and system linkages, while taking into consideration case studies of othercountries.
・At the same time, a review will also be commenced on vehicle inspection certificates and vehicle
inspection registration procedures, with a view to promoting the further digitalization ofprocedures through the use of the “My Number” card.
・In addition, a review will be conducted on the utilization of the “My Number” system in areas
such as various licenses and national qualifications, as well as education. Common functions
will be built on a cloud where necessary. Effort will be made to enhance the user-friendliness of
the Myna Portal through more proactive use of technology from the private sector.
・Together with these efforts, the schedule for promoting the effective acquisition of the “My
Number” card will be accelerated 52 as far as possible, through the radical expansion ofenvironments that facilitate “My Number” card procedures, such as the implementation of
measures to stimulate consumption through the use of “Myna Points” and resending of card
application forms with QR codes.
・The Myna Portal and other means will be actively utilized, and effort made to create anenvironment for setting up bank accounts for the transfer of public funds, with a view tosimplifying and accelerating the procedures for receiving public funds, such as national tax
refunds, pension benefits payout, various other payouts (such as cash benefits for citizens),
emergency small loans, support grants for reconstructing livelihoods of disaster victims, andPersonal Health Record. This is a system that enables individuals and their families to have an accurate grasp of theirpersonal health throughout their lifetimes, from birth to school and work. It takes the form of electronic records that utilize the
Myna Portal and other systems.
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The overall schedule (provisional) and other documents related to the issuance of the "My Number" card, presented by the
Ministerial Meeting on Digital Government in September 2019, assumes that most residents will have the "My Number" card
in FY2022, based on the measures to stimulate consumption through the use of "Myna Points," implemented from September
2020, and the use of the card as health insurance certificate, which is scheduled to commence from March 2021.
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various scholarships. In addition to establishing systems for reaping the benefits of digitalization
during times of emergency, such as when disasters strike or during succession, a review will be
conducted on the approach to assigning “My Number” to savings accounts, including the settingof accounts for the transfer of public funds, in order to bring about the realization of a fair social
security system that is oriented to all generations. A conclusion will be reached on this review in2020.
・Toward the establishment of a digital foundation across the “My Number” system and the national
and local governments, the government will realize processes within 2020 to bring about radical
improvements, including the early unification and standardization of the work systems of local
governments and move toward implementation beginning with the elements that are ready.
ⅳ) Next-generation infrastructure
1. Raising productivity in the area of infrastructure, and resolving issues in disaster prevention,transportation, logistics, and cities
In order to cope with the changes in the socioeconomic climate as a result of the infectious disease
and other factors, and to support economic growth, the government aims to strengthen the functionsof industrial infrastructure through the early development and utilization of infrastructure including
high-speed transportation networks, such as high-standard arterial highways, projected Shinkansen
lines, and the Linear Chuo Shinkansen Line, as well as international hub airports, International
Container Hubs and strategic international bulk ports. Furthermore, as the government has a heavy
responsibility of protecting the lives and livelihoods of the people from increasingly severe andfrequent flood disasters, imminent large-scale earthquake53 disasters, volcanic disasters that canoccur at any time, we should strongly promote initiatives that integrate the structural and nonstructural disaster prevention/mitigation measures and the strengthening of national resilience,
through the united and collective efforts of all stakeholders such as the national and local
governments, while at the same time moving toward digitalization and the development of smart
infrastructure. In addition, it will also take advantage of new technologies in the fourth industrial
revolution to advance initiatives in areas such as “invest wisely, use wisely” strategic infrastructure
management and the Compact Plus Network, and advance efforts to maximize the stock effect of
infrastructure, such as improvements in productivity and convenience, and stimulation of private
investment.
a) Development, maintenance, and management of infrastructure
・ In order to raise productivity in the construction sector while securing human resources based on
improvement to working conditions and work style reforms, the government will promote
Massive earthquakes such as the Nankai Trough earthquake, a Tokyo near-field earthquake, and an earthquake along theJapan Trench and Chishima Trench (including the tsunamis caused by these earthquakes).
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initiatives such as ensuring appropriate construction period and the electronification of applications
for procedures including approvals. At the same time, it aims to work together with the private
sector to realize the full implementation of the Construction Career Up System (CCUS) fromFY2023, streamline application procedures through linkages with the “My Number” card andMyna Portal, and to bring about the integration of qualification certificates. Information will also beshared between this system and the Foreign Workers Centralized Management System for theefficient management of foreign construction workers.
・ Taking into consideration structural changes such as decline in population, effort will be made topromote digitalization and the manifestation of economies of scale in the regions as well, with aview to raising the productivity of the construction sector. At the same time, wide-area cooperationin the construction sector will be promoted with the aim of realizing efficient and sustainable
maintenance and management of social capital in the regions.
・ The government will accelerate the i-Construction initiative through the introduction of coretechnologies such as AI, and from FY2020, commence the demonstration of unmanned
construction technology as well as trials on remote inspection and supervision technology that uses
audio and video. It will also promote the DX of infrastructure, such as the transition to remote andnon-contact working at construction sites, as well as engage in industry-academia-government
collaboration on the review of standards such as inspection and supervision standards. Furthermore,in order to expand the scope to small- and medium-sized enterprises and local governments,
initiatives such as the following will be implemented: expanding the application of ICT tomaintenance and repairs; introducing simple construction projects that utilize ICT, which makepartial use of three-dimensional data in the construction process, and; the development of humanresources who are equipped to offer advice on the adoption of ICT.
・ To raise productivity at construction sites, the government will put in place performance criteria andother means to enable the active use of GNSS stations in public works, etc. by private-sector entities
and others, in areas where less public GNSS stations are available. The system will enter full-scale
operation from FY2021.
・ BIM/CIM will be utilized in all public projects with the exception of small-scale projects, by
FY2023. To that end, in addition to establishing domestic standards based on IFC5, the international
standard for three-dimensional data, reviews of certification systems for qualifications will be
accelerated with a view to making the best use of BIM/CIM engineers. BIM will be introduced ona trial basis into construction design and works ordered by both the public and private sectors, andreviews advanced on measures toward the spread of BIM, including the verification of effects andextraction of operational issues. In addition, toward popularizing the submission of application for
confirmation of construction through BIM, support will be provided to support the electronificationof applications for confirmation by designated confirmation and inspection bodies, and reviews will
be advanced toward support for electronification by the deisignated administrative agencies.

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・ In order to raise productivity in the infrastructure sector through digital twin, a comprehensive data
platform for national land and transportation will be built by FY2022. This will link data on
infrastructure such as buildings and foundations, with various other forms of data includingtransportation and logistics, and information on weather and disasters. To that end, the Land andTransport Data Council will be utilized to improve the functions of the prototype of the Land andTransport Data Platform 1.0 (published in April 2020), expand its linkage with data held by therespective ministries and agencies as well as the private sector, and develop elemental technology.
・ Existing stock will be optimized in order to enhance the efficiency of infrastructure maintenance.
At the same time, guidelines will be formulated on the use of drones, AI and other forms oftechnology in the monitoring of Aids to Navigation, while guidelines on advanced maintenance andmanagement methods for floating offshore wind turbines will be developed by FY2021. With
regard to road facilities, alongside with promoting the adoption of new technology based on thepolicy for promoting the introduction of new technology, the approaches to selecting the optimal
inspection method that utilizes new technology for each facility will be organized, and reviews on
the establishment of a qualification system for inspection engineers will be launched from FY2020.
b) Disaster prevention and disaster response
・ The government will develop and demonstrate IoT, AI, and other forms of technology for
determining the inundated areasin real-time when rivers flood in FY2020. It will also prepare
elevation data and other information that will be utilized as the basis for understanding inundation
depth. Furthermore, in order to realize river patrols that utilize drone and image analysis
technologies, demonstrations will be conducted in FY2020 on technology that replaces orcomplements patrols carried out by humans.
・ To carry out effective flood control using existing dams, a system that can predict dam inflow
amount for the whole of the river system at a high precision will be developed in FY2020, while
initiatives aimed at enhancing the sustained accuracy of weather forecasts will be advanced.
Research and development will also be carried out to predict rainfall and amount of dam inflow
more efficiently and effectively through using AI. To apply water use capacity also in Class B river
systems for the purpose of flood control, flood control agreements will be concluded successively
between river administrator, dam administratorentities, and the related water users.
・ The technology that analyzes images of surveillance camera in river basins using AI, and which
captures the rising risk of occurrence of sediment disasters, will be developed in FY2020, anddemonstrations carried out by FY2021.
・ To promote truly effective and efficient disaster prevention and mitigation, the government
promotestransition to “Integrated Flood Management,” which implements structural and nonstructural measures including revision of river-related laws integrally, cooperated with all
stakeholders around a river basin.

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Provisional Translationc) Resolve transportation and logistics issues
・ Alongside with the realization of AI terminals by FY2023, such as the commencement ofdemonstrations on the automation of container trailers in FY2020, the government will promote theestablishment and use of “Port Data Collaboration Platform (provisional)” and expand its scope toinclude information on port-related administrative procedures as well as the maintenance,
management, and usage status of port facilities. It will also achieve world’s highest level ofproductivity in port logistics, and create a remote, non-contact, and safe work environment.
・To promote universal design and enable all pedestrians, including disabled persons and baby stroller
users, to use roads safely, guidelines will be formulated in FY2020. This includes guidelines on
methods for the collection of data on pedestrian spaces. Childcare support facilities will be set up at
highway service areas and “Michi-no-eki” roadside stations.
・In addition to promoting the exclusive use of ETC for toll roads, which also contributes to thetransition of fee collection work on toll roads to non-contact format, the government will also utilize
ETC2.0 to promote operation that does not restrict temporary exit destinations from highways, so as
to enhance the convenience of roads, as well as promote enhanced productivity for truck
transportation through the use of ETC2.0 data through public-private partnership. It also aims to
distribute data to private-sector corporations by FY2020. In addition, the government will instantly
provide a map, created using actual traffic data of vehicles fitted with ETC2.0, to organizations
including private-sector businesses, in order to support the transportation of emergency relief
supplies immediately after a disaster occurs.
・To accelerate the easing of main areas of congestion, ICT and AI will be actively adopted fortransportation surveys such as the National Road and Street Traffic Situation Survey (Road Traffic
Census), traffic congestion measures that utilize the acquired road and traffic data will be
implemented. In addition, a car park reservation system will be adopted to ease congestion causedby people waiting to enter car parks at sightseeing spots.
・On top of efforts to rationalize traffic conditions for special vehicles, the government will establish
specifications, in FY2020, for in-vehicle load measuring devices with a view to monitoringoverloading through the use of ICT.
・With a view to realizing speedy and smooth logistics as well as the government’s goals forautonomous driving on highways, initiatives will be put in place to strengthen high-standard road
networks, including promoting the development of the three major metropolitan ring roads andstrengthening access to airports and ports.
・With a view to realizing truck platoons on highways, the government will enhance the stability andefficiency of double networks that connect the three major metropolitan areas by extending the ShinTomei Expressway and Shin-Meishin Expressway to six lanes. It will also create an environment forthe demonstration of safety measures for merging sections on the main trunk route, and of thewidening of existing SA and PA, with a focus on the Shin-Tomei Expressway (Shizuoka section).

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・ By taking advantage of the current low-interest rate situation, the government will work to develop,
as soon as possible, high-speed transportation networks such as high-standard arterial roads and theLinear Chuo Shinkansen Line, as well as the logistics facilities and major urban rail networks thatprovide access to international hub airports and ports.
d) Enhance competitiveness of cities
・ To accelerate the nationwide expansion of “Smart Cities” and inter-city cooperation of “Smart
Cities”, guidelines will be formulated in FY2020. Furthermore, models will be developed with theaim of enhancing data-driven urban development methods and improving city management, based
upon world-class 3D city models, while information will be disseminated and support provided tocompanies expanding overseas.
・ In order to promote the systematic repair and improvement of urban infrastructure in residential
advancement district in sitting optimization plan, with a view to accelerating Compact Plus
Network initiatives, urban development procedural guidelines will be revised in FY2020. Support
will also be provided for excellent urban development initiatives by the private sector, such as thedevelopment of complexes, and methods for rebuilding spaces around stations will be introduced,
among other initiatives, in order to strengthen competitiveness of cities even beyond the Tokyo
Olympics. At the same time, effort will be made to create town areas that are walkable.
・ To attract stable medium- to long-term investments from within and outside Japan, the government
will visualize investment-oriented real estate transactions by corporations, and conduct reviews
aimed at announcing in FY2021 a corporate transaction volume index (provisional name) that willcontribute to revitalizing the real estate market and enhancing its transparency. To promote ESG
investment, a guidance related to the Task Force on Climate-related Financial Disclosures (TCFD)
will be formulated in FY2020. In addition, a new system for the rental housing management
industry will be implemented from FY2020.
・ With a view to promoting the circulation of existing quality housing and revitalizing the homereform market, a review will be conducted in 2020 on measures to promote the acquisition ofcertification such as the rationalization of criteria for the certification of excellent long-term housing,and the necessary institutional measures will be implemented from 2021.
・ Based on the Basic Policy for the Promotion of Measures for Land with Unknown Owners(decision by the relevent Ministerial Committee for the promotion of measures for land withunknown owners on July 3, 2020), the government will implement measures for lands withunknown owners, measures for inadequately managed land, such as support for advanced initiatives
by a land bank as well as work on facilitating and speeding up cadastral investigations through theintroduction of efficient methods such as the use of remote sensing technology. At the same time, itwill further promote the improvement of maps provided by registry offices through means such as
applications for parcel boundary demarcation by local governments and the utilization of results of85

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block boundary surveys. It will also review survey methods for the public announcement of land
prices so as to respond to the individualization and multi-polarization of land prices.
・ To attract private investment and bring about the realization of bustling road spaces, the Road
Structure Ordinance will be revised in FY2020 and guidelines formulated for digital signage
advertisements and other matters. In addition, a road system that enhances convenience forpedestrians by building pedestrian-centered road spaces, will be utilized by local governments inmore than five locations across Japan.
・ Reviews on use cases that make use of the 5G communications environment at road spaces and“Michi-no-eki” roadside stations with disaster prevention functions, will be conducted in FY2020.
Based on upon the implementation of demonstration tests with cooperation between public andprivate stakeholders, and taking into consideration the results of the reviews, the necessary
institutional measures will be implemented.
・ To stimulate the formation of the super-mega-regions and achieve the wide-area expansion of theireffects, the government aims to formulate a roadmap by FY2022 for advanced initiatives, based
upon the implementation of feasibility studies for each of the eight Regional Plan Districts acrossJapan.
2. Accelerating the introduction of PPP/PFI methods
Initiatives will be promoted toward achieving the numerical targets for the priority areas forconcession projects (airports, waterworks and sewerage, roads, educational facilities, public housing,passenger terminals for cruise ships, MICE facilities, public hydropower generators, and industrial
waterworks) set out in the PPP/PFI Promotion Action Plan (2020 revision) (decision by the Council
for the Promotion of Private Finance Initiatives on July 17, 2020). The utilization of the timber
harvesting right system will also be promoted. Furthermore, private sector knowhow will be utilized
while suppressing the financial costs of the public sector, and the utilization and popularization of
the “Pay for Success” (PFS) methods, which is a outcome-based private consignment contracting
methods that resolves social issues and enhances the efficiency of the public sector, will be promoted.
With regard to the availability payment method for infrastructure that does not generate usage
fees, the government will formulate guidelines that set out the definitions and means of utilization
for this method, such as putting long-term maintenance and management together with renovations
and updates, and also contracting based on results and performance. Furthermore, the government
will recruit national agencies and local governments that are considering the utilization of thismethod, implement feasibility studies for 10 cases or more by FY2022, and move forward on project
formation.
a) Promote initiatives on priority areas for concession projects and the timber harvesting rights
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・The Act on Promotion of Private Finance Initiative states clearly that in addition to the maintenanceand operation of a facility, concession business operators (operation of public facilities, etc.) can also
carry out construction, manufacturing, and rehabilitation that is closely related to the said project, inorder to facilitate more efficient operation of the project. For this reason, the reform bill will be
submitted at the ordinary Diet session in 2021.
・With regard to benchmarking mechanisms that compare the business conditions, service levels, andsustainability of each waterworks and sewerage project side by side, the government will study thesystems of foreign countries and review the feasibility of introducing such systems in Japan.
・As for the establishment and renovation of stadiums and arena facilities that have been planned acrossJapan, the government aims to bring about the realization of projects by considering methods forutilizing a system of the operating rights system for public facilities as well as methods of support
by the government.
・With regard to the timber harvesting rights system, a review will be conducted on the duration oftimber harvesting rights and the supply amount from state-owned forests, based on market sounding.
This is necessary for ensuring a stable supply of 100,000m3 of raw timber through the region, whichis the volume of raw timber required by large-scale sawmills.
・The creative efforts that are unique to the private sector, generated through projects in which thesystem of the right to operate public facility is applied, will be organized and provided to local
governments that are interested in the application of the system.
b) Promote the Pay for Success methods
・The government, together with private-sector practitioners, will conduct a follow-up in order tomonitor efforts for the promoting of PFS methods by the relevant ministries and the status ofcompliance with the Action Plan on Promoting the Pay for Success methods (decision by the
Ministerial Meeting on Promoting the Pay for Success methods on March 27, 2020)
・Besides priority areas(medical care and health, welfare, prevention of recidivism) ,the government
will promote popularization of PFS methods in other areas such as urban development andemployment support through support for project development and the horizontal expansion of goodpractices.
ⅴ) Reform across the whole agriculture, forestry and fishery industry, and realization of a
Smart agriculture, forestry and fishery industry
Amidst the decline of agriculture, forestry and fishery operators in Japan, in order to respond to
the sudden shortage of labor and new international environment brought about by the novel
coronavirus pandemic, it is vital to utilize cutting-edge technology such as ICT, as well as to develop
human resources and integrate and consolidate farming land, so as to maintain and develop the
productivity of the agriculture, forestry and fishery industries.

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In addition, it is also necessary to actively create an environment that supports agriculture, forestry
and fishery by advancing reforms in the value-chain and promoting exports, among other measures.
By strongly promoting reforms to that end, the government will strive to enhance thecompetitiveness of the agriculture, forestry and fishery industry as well as to strengthen food security,
while also bringing about the realization of a strong agriculture, forestry and fishery industry evenunder the circumstances of a population decline.
1. Accelerating agricultural reforma) Strengthen production sites(Raising productivity, human resource development, etc.)
・In cooperative partnership with farmers, the government will promote the nationwide roll-out ofpioneering examples of new production entities that apply creative efforts to farming work agencies,
instruction on Good Agricultural Practice (GAP), utilization of ICT, processing and storage, andother agricultural activities, by FY2022.
・Based on excellent examples of councils under municipal governments or agriculture cooperatives
that provide support to new agricultural workers, the government will develop a manual in FY2020
and promote its firm establishment among new agricultural workers nationwide.
・Efforts will be made to enhance the agricultural education environment across Japan, such as bylobbying agriculture cooperatives and agricultural management entities in FY2020 to provide theircooperation on practical training in agricultural high schools, using the latest agricultural machinery.
・To make it easier for women to work in the agriculture industry, the government will formulate amanual for establishing regional childcare support networks, including advanced case studies, in
FY2020, and disseminate it nationwide.
・With regard to agriculture and welfare partnerships, the government will promote matching of theneeds of both the agriculture and the welfare parties, nurturing of professionals, and the establishingof one-stop centers in all prefectures. At the same time, it will also promote such partnerships
nationwide, such as by launching an award for excellent initiatives in 2020.
・With regard to the reform of agricultural cooperatives, initiatives will continue to be promoted basedon the progress of reforms carried out independently by the cooperatives, reviews will be conductedbased on the revised Agricultural Co-operatives Act, and the necessary measures implemented.
(Accumulating consolidating farmland)・Based on the revised Act on Promotion of the Cropland Intermediary Management Program,stakeholders in the region will work as one to intensively promote the realization of“the Farmers

and Farmland Plan” in FY2020, and successively advance the materialization of the accumulationand consolidation of farmland to farmers with the realized plan at the core of the measures.
・ In collaboration with the abovementioned measures, the government will accelerate the88Provisional Translation
establishment of corporate management entities through measures such as dispatching experts fromagricultural management consultation offices, and producing a collection of excellent cases in
FY2020.
・With regard to the Japanese agricultural direct payments system, the government will intensively
promote, by FY2022, the formulation of a village strategy covering areas such as the maintenanceof farmlands in hilly and mountainous areas in the future. At the same time, it will promote diverse
initiatives to preserve terraced rice fields and harness the features of the hilly and mountainous areas.
・As for land improvement projects, effort is being made to strengthen agricultural competitiveness,through enlargement of farmland plots and multi-purpose use of paddy fields, while working on
reducing costs. Alongside with that, it will urgently implement measures to strengthen the resilienceof reservoirs agricultural and irrigation facilities and develop implementation systems nationwide
through the formulation of basic guidelines and promotion plans in FY2020, based on the Act on
Special Measures for Reservoir Construction 54.
・Farming-photovoltaics will be expanded across Japan through the production of a manual for
agricultural businesses that use the electricity for private consumption by FY2022, and othermeasures.
・With a view to strengthening the international competitiveness of the livestock industry, thegovernment will conduct a review of special laws that exclude certain livestock barns and otherrelevant structures from the Building Standards Act, and prepare the necessary legislative bills, in
FY2020.
・Effort will be made to promote urban agriculture, such as by producing, in FY2020, a collection of
excellent cases of matching initiatives carried out by agricultural cooperatives and others, in which
the law on leasing farmland in cities is applied.
(Reform of rice-related policies)
・To enable the selection of agricultural produce based on the management decisions of the farmers
themselves, effort will be made to establish the reform of rice-related policies, such as by creating
500 highly profitable crop producing areas by FY2025 through support for the provision of detailed
information and the full utilization of paddy fields.
・The government aims to reduce production costs of rice by means of the establishment of cultivation
techniques in each region with high-yielding rice varieties, incorporating differentiation of cropping
seasons by FY2022.
・The government will create by FY2023, across all parts of Japan, model production areas that carryout continuous cover and integrated cultivation of rice, wheat, and soybeans.

Enforced from the date stipulated by government ordinance, within a range that does not exceed six months from the date ofpromulgation (June 19, 2020).
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Provisional Translationb) Promote reforms in the value-chain・Based on the Act on the Support for Strengthening Agricultural Competitiveness, initiatives such as
the reorganization of the materials and distribution industries, including wholesale and retailbusinesses for agricultural materials that were targeted in April 2020, will be promoted.
・In the value-chain for agricultural, fishery, and other products, AI and robotic technology will beutilized to achieve automation for product sorting, transportation, and data input in logistics bases
including wholesale markets in order to reduce cost by FY2022.
・To promote sixth industrialization, the government will promote primary processing throughcooperation between agricultural, forestry, and fishery businesses and other industries, and establish
systems by FY2022 to match the relevant businesses in each prefecture.
・Based on the Act on Promotion of Food Loss and Waste Reduction, the government will call for therelaxation of delivery deadlines toward the “National Day for the Simultaneous Revision ofCommercial Practices” on October 30, 2020, build systems to match food-related businesses andwelfare organizations through food banks, and promote the reduction of food loss and waste
nationwide.
・For the purpose of the drastic strengthening of countermeasures against damage caused by wildlife,
the securing of a safe and secure supply system of wild game, and the expanding the use of wild
game including doubling the amount of consumption in FY2025 compared to FY2019,thegovernment will establish rules for the sharing of information pertaining to production areas for users,
such as information on animal species and inventory volume. These rules will be established in
FY2020 through validations, and rolled out nationwide.
・With a view to increasing the income of farmers, the government will reach conclusion by the firsthalf of FY2021 on overhaul and optimization of the Agricultural Product Inspection Standards andcommercial practices, and enactment of the new Japanese Agricultural Standards (JAS).
・The “Go To Eat” campaign will be implemented while assessing the situation of the novel
coronavirus infectious diseases. In the implementation of this campaign, thorough measures toprevent the spread of infection will be put in place, and points that can be used at eateries will beawarded to consumers who make reservations and visit the eateries during the campaign period, via
online dining reservation sites. In addition, meal vouchers with bonuses, and which can be used atregistered eateries, will be issued to stimulate demand for dining out. At the same time, support will
be provided toward the implementation of new business operating styles, including home deliveries
and takeaways.
c) Promotion of smart agriculture(Promotion of smart agriculture)
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development, demonstrations and popularization, and creation of environment, including thefollowing initiatives, in order to develop an environment for the steady and full-scale on-site
implementation of “smart” agriculture.
・In addition to producing educational materials for “smart” agriculture in FY2020 toward thedevelopment of a “smart” agriculture curriculum at all agricultural college, conduct a review on theimplementation of a “smart” agricultural technology idea contest for students during the same fiscal
year, so as to foster interest in “smart” agriculture among young people.
・To actively utilize agricultural data and prevent the leakage of agricultural production knowhow,
disseminate the guidelines on contracts related to AI and data in the agricultural sector, formulated
in March 2020, through means such as the distribution of leaflets and the training of extension
officers, consultants for comprehensive support offices for intellectual property, patent attorneys, andother personnel.
・By FY2022, develop methods for producing and utilizing maps for autonomous agriculturalequipment and the automatic operation of drones, based on coordinate data acquired with the use of
ICT in the construction process of the agriculture and rural area development.
・Update data on farmland lots (“Fude Polygon” system) for the whole of Japan in FY2020, andconduct demonstrations utilizing automatic navigation guide data for drones and other devices in
FY2021.
(Development and popularization of agriculture support services)
In order to support the development of the agricultural industry as a growth industry amidst the
decline in number and ageing of farmers, the government will implement the following initiatives
integrally, so as to develop by FY2021 an environment for developing and popularizing agriculture
support services that make use of advanced technology such as harvesting robots and drones thatspray pesticides.
・Review the establishment of systems for providing the funds needed by agriculture support service
providers to develop advanced technology, and the enhancement of insurance systems.
・Establish in FY2020 a portal site that introduces agriculture support service providers to students ofagricultural college, and based on this, launch the provision of internship and employment
information to support the securing of human resources.
・In FY2020, conduct surveys on the needs of farmers and the contents of services provided byagriculture support service providers, formulate guidelines on the standardization of information to
be disseminated about the services offered by agriculture support service providers, and provide
services to match them with farmers. Promote the participation of agriculture support service
providers through the announcement of viable business models by FY2021.
・To enable the selection of agriculture support services that are suitable for agricultural management
and allow farmers to visualize their work processes, share examples of initiatives that improve work

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processes through the use of the GAP method and promote guidance and instruction by extension
officers and other relevant instructors.
・To promote the establishment and improve the operation of regional development organizations thatprovide regional services, including agriculture support services, a training curriculum for nurturing
coordinators and collection of excellent cases will be produced in FY2020.
・The creation of matching opportunities, analysis of issues, and review of the creation of anenvironment, and other measures will be implemented on a platform that private-sector corporations
and research institutions will participate in, with a view to creating agriculture support services.
(Establishment of a new framework)・In order to promote, in an integral manner, initiatives for the development of “smart” technology toraise the productivity of the agricultural, forestry, and fishery industries, development of food techtechnologies to create new demand, and on-site implementation of the technologies, a newframework to provide multifaceted support for initiatives by the relevant businesses will be reviewed
in FY2020 and the necessary measures implemented.
・To mitigate the damage caused by pests to agricultural product, measures will be implemented tocollect information on pest incidence through the use of drones, and to develop technology toforecast pest incidence through the use of AI, in order to build the new Pest Forecasting Program by
FY2025.
・Toward realizing agricultural production that takes a view to climate conditions in the future, thegovernment will work on developing big data for climate, items, technology, yield, and otherelements across Japan, and on predicting yield through the utilization of AI, and strive toward
presenting an optimal production model for the regions by FY2025.
2. Promoting exports
・Based on Act on Facilitating the Export of Agricultural, Forestry and Fishery Products and Food ,the relevant agencies will work closely promote consultations with importing countries and regions
toward relaxing or lifting the import restrictions on Japanese food, to accelerate the certification of
establishments that conform to the requirements ofimporting countries and regions, and topromote other initiatives.
・With regard to the one-stop online application and issuance system export certificates, which hascommenced operation in April 2020, the government will improve the system in order to apply for
all types of export certificates by FY2021.
・ The government will commence the dissemination of excellent cases under the Global
Farmers/Fishermen/Foreser/Food Manufacturers Project (GFP), which conducts “export
diagnostics” , will commence in FY2020, alongside with other initiatives such as the developmentof global production areas, the establishmen of cold chains through the projects that link production

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areas with ports, compliance with overseas regulations for processed foods, and thorough market
research through the Japan Food Product Overseas Promotion Center (JFOODO).
・The Japanese Agricultural Standards (JAS) for freshness evaluation methods for fresh fish andshellfish will be established in FY2021 , with a view to expanding our exports by such international
standardization..
・An export strategy for rice will be formulated in 2020, and initiatives implemented to develop sales
and production areas with a clear target demographic. The government will also promote initiatives
to carve out new demand in Japan and abroad.
・To promote the export of Japanese liquor, the government will work on branding for overseas markets
and building model cases for sake brewery tourism in FY2020. At the same time, it will start researchwith a view to registering Japanese sake as a UNESCO intangible cultural heritage.
・To promote the creation of diverse business models that contribute to the expansion of the foodindustry overseas as well as the expansion of exports, the government will conduct studies on
corporate needs and business feasibility, form corporate consortiums, and engage in bilateral policy
dialogues in FY2020, among other initiatives.
3. Forestry reforma) Develop the forestry and timber industries as growth industries
・To support scaling up sawmills and promote exports, the government will establish a diversified
framework for methods of cooperation between forestry cooperatives in FY2021, including
incorporation-type company split.
・Based on the revised Act Concerning Utilization of National Forest Land, pilot settings for timber
harvesting rights will commence in FY2020 to meet new demand, and effort made to secure a stablebusiness volume for forestry business operators. Alongside with that, market sounding will be
carried out and a review conducted toward the setting of timber harvesting rights, including for largescale projects.
・While gaining the cooperation of the business circles and others, the government will work toward
increasing the use of wood, including cross-laminated timber (CLT) in non-residential buildings andmedium- to high-rise buildings, with a focus on urban areas. And the government will work on
standardization aimed at the utilization of building information modeling (BIM) for woodenarchitecture—which carries out the centralized management of 3D design information—among
stakeholders by FY2024 in order to enhance the efficiency of design and procurement processes.
・With a view to the creation of a “forest service industry,” which aims to utilize forest spaces for health,tourism, education, and other purposes and improve the income for forestry business operators, thegovernment will launch a platform involving public and private stakeholders in FY2020 andestablish new frameworks and systems.

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Provisional Translationb) Promote smart forestry, etc. (forestry innovation)
By FY2024, the government will advance the following initiatives integrally, in order to create
an environment for the steady and full-scale implementation of smart forestry and other initiatives
on-site.
・Develop equipment and machinery that carry out forestry work such as tree felling and transportation,
as well as afforestation, remotely and automatically. At the same time, establish safety guidelines fortheir practical application, and together with various forestry business operators including selfharvesting forestry businesses, transform the forestry into an attractive industry for youth and women.
・Select fast-growing trees and develop seed orchards/scion orchards, so as to establish a nationwide
supply system for fast-growing trees and the seeds and seedlings of the “elite tree” to enable thecompletion of processes from afforestation to felling within one generation of forestry business
operator.
・Establish, by 2021, forest cloud systems that enable the sharing of information pertaining to forests
among local governments and private-sector businesses. Draw up standard specifications for ICT
production management systems that enable data linkages with the forest cloud systems and promote
their adoption by private-sector businesses. At the same time, accelerate initiatives to enable thesharing of data, such as data for demand and supply in the supply-chain, through the system.
・Produce case study collections on smart forestry, etc. and conduct training for faculty, with the aimof development a curriculum for smart forestry in all forestry universities.
・With a view to expanding opportunities for forestry business managers to learn about smart forestry
technologies, engage in initiatives such as organizing briefing sessions and matching meetings at
various places.
・Toward the model introduction of “smart” forestry across Japan, analyze and provide practicalexamples and present technical models, while also utilizing the fields of state-owned forests.
・Conduct training for forestry extension agents and facilitate the acquisition of knowledge andexperience, with the aim of supporting consultation on “smart” forestry and relevant matters in all
prefectures.
4. Fishery reforma) Promote fishery policy reform, etc.
・Based on the revised Fishery Act, the government will expand the target species of fish for total
allowable catches (TAC) to 80% around 2023, on the basis of catch volume and with the basic
principle of management targeted at the realization of maximum sustainable yield (MSY) by 2021.
・To promote the transition to an aquaculture industry that incorporates the needs of the market into
the product, the government will advance the resolution of technical issues through demonstrations

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Provisional Translationand loan facilitation through business feasibility assessments, with the aim of creating a model
management body for each type of aquaculture management body by FY2022.
・To speed up measures against fish diseases in the aquaculture industry, the government will put inplace initiatives in FY2020 to build a “regular veterinarian” system, announce numerical targets forincreasing the number of veterinarians who are knowledgeable about fish diseases and formulate
guidelines for online medical consultations.
・To conserve the water environment of the Seto Inland Sea and nurture rich fishery resources, thegovernment will introduce frameworks for nutrient salt management by 2021 based on new findings
and consensus-building in the regions, advance efforts on elucidating the relationship between
nutrient salts and fishery resources, and by FY2023, begin proposing, to coastal councils and otherentities, management measures for the supply of nutrient salts.
b) Promote smart fishery, etc.
By FY2023, the government will advance the following initiatives integrally, in order to create
an environment for the steady and full-scale implementation of smart fishery on-site.
・With the aim of expanding the target fish species for the evaluation of fishery resources to all usefulfish species (about 200 species) by FY2023, as well as improving the precision of resource
evaluation, make use of ICT to develop systems for collecting information on operations and fishinggrounds environment from fishing and research vessels, collecting catch information from markets
in the production areas, and preparing electronic catch reports on minister-controlled fisheries.
・Develop and demonstrate systems for predicting fishing and oceanographic conditions, with the aimof providing such information in real-time and to a high degree of precision to fishery operators in
offshore and coastal areas.
・Expand the target seas for information predicting the occurrence of red tides, based on satellite data
and buoy information, to enable the application of this information to aquaculture businesses in sea
areas with a high incidence of red tide occurrence.
・Engage in the development and demonstration of technology toward the automation and lavor savingof fishery work.
・With regard to smart fisheries, organize briefing sessions and forums for fishery and aquaculture
operators, and conduct courses for almost all fishery-related educational institutions.
・Provide knowledge and knowhow to staff of fisheries experimental stations, with a view tosupporting consultations on smart fishery at all fisheries experimental stations.
・Create model cases that make use of smart fishery, toward the model adoption of smart fishery acrossJapan.
・Utilize advanced technology such as ICT, and in cooperation with all stakeholders from production
to distribution, processing, and sales, build excellent cases of fishery value-chains that automate

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work, lavor saving, and provide added value to products.
・By 2020, build and operate a Fishery Data Coordination Platform (provisional name) that supports
the fishery and aquaculture industries as well as the creation of new businesses, based on theevaluation and management of fishery resources and data, and realize collaboration with other data
platforms.
ⅵ）Preventing diseases and the need for long-term nursing care
The citizens are increasingly recognizing the importance of health, which is the foundation for
the establishment of a 100-year life society. In order to advance reforms toward the establishmentof a social security system oriented to all generations, the government will promote initiatives on
evidence-based prevention and health promotion.
1. Health promotion with a view to the 100-year life society, and promotion of disease/long-term
nursing care preventiona) Further strengthen incentives for disease prevention and health promotion
・With regard to a support system for insurers’ efforts targeted at those covered by National Health
Insurance, an impact analysis on the strengthening of incentives will be conducted in FY2020. At
the same time, with regard to the respective evaluation indices and allocation of scores after FY2021,
a review will be conducted on the expansion of performance indicators and the strengthening of
allocation criteria modulation. The scores obtained by each insurer will also be published.
・As for the system that adds or subtracts support funding for latter-stage elderly corresponding to thestatus of prevention/health projects undertaken by health insurance societies and other organizations,an impact analysis on the effects of health businesses and incentive measures strengthened by amaximum of ±10% will be conducted in FY2020. On top of that, a review will be conducted on the
expansion of performance indicators and the strengthening of allocation criteria modulation withregard to the target scope in adding or subtracting, the respective evaluation indices, and allocationof scores after FY2021. As for the adding or subtraction rate for latter-stage elderly support funding
for the respective health insurance societies and other organizations in FY2020, a fresh review will
also be conducted on the societies targeted for addition.
・With regard to the incentive measures for insurance premium rates for each prefectural branch,corresponding to the status of prevention/health projects in the Japan Health Insurance Association,a review will be conducted on the expansion of performance indicators and the strengthening of
allocation criteria modulation, and a definite conclusion reached in FY2021.
・The government will strengthen initiatives for prevention and health projects under the Extended
Associations of Medical Care System for the Latter-stage Elderly People. As for the special
adjustment subsidies (incentive measure for insurers) that are allocated based on the status of
prevention and health projects, measures to strengthen incentives will be considered, such as the96

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prioritizing and review of evaluation indicators based on the status of integrated implementation ofhealth projects for the elderly and long-term nursing care prevention initiatives. A definite conclusion
will be reached in FY2020.
・In reviewing the respective evaluation indices and allocation of scores, the appropriate indicators(such as the strengthening of allocation score modulation) are reviewed through the thoroughfunctioning of the PDCA cycle, in order to ensure that prevention and health promotion initiatives
are further strengthened with consideration given to the characteristics of insured parties under therespective medical insurance.
b) Strengthening initiatives that connect changes in individual behavior toward prevention andhealth promotion
・With a view to promoting the creation of a food environment that helps people to become healthy
naturally, including those who are not interested in health, effort will be made to establish acooperative system with various entities around autumn 2020, such as industry-academiagovernment partnerships and their communities. At the same time, a review will be advanced oncomprehensive measures, including evidence-building for areas such as effective approaches toreducing salt intake, taking into consideration the possibilities of making it a commitment for the
Nutrition for Growth Summit, and of international expansion to Asia and other regions.
c) Strengthening toward early detection of diseases
・To establish a framework for the early detection and treatment of cancer, and to achieve dramatic
improvement in the 5-year survival rate, the government will promote the development of simple,
minimally-invasive screening methods for intractable cancers, such as liquid biopsy and othermethods based on blood or saliva, as well as the development of treatment methods. In addition, it
will conduct an impact analysis on initiatives toward improving screening rate, such as through theapplication of the nudge theory. As for risk-based screening, based on conclusions obtained in
FY2019, the government will promote the accumulation of scientific evidence that contributes to its
realization.
・From the perspective of detecting cancers early, screening technologies that can easily, precisely, andquickly detect cancers with high incidence, such as breast cancer, esophageal cancer, and colorectal
cancer, will be established urgently, and demonstration tests commenced in FY2020.
・To strengthen measures for dental diseases that are also related to overall health, such as periodontal
disease, a review will be conducted on expanding the opportunities for dental checkups (screening)that are currently held every 10 years, based on the results of verification through projects forpromoting dental health checkups. A conclusion will then be reached on the direction of reviews on
the implementation methods for dental checkups (screening) by FY2021. Furthermore, while raising
the consultation rate for dental checkups (screening), the government will put in place effective

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initiatives to encourage people to undergo the necessary consultations based on the results of theirhealth checkups (screening), further build evidence related to oral health and overall health andpromote medical and dental collaboration.
d) Health promotion through cooperation between insurers and corporations, and promoting
health management and health investment
・With regard to the health scoring report, in order to strengthen the approach to health insurance
societies and business operators, reporting will be carried out in the business operator unit for healthinsurance societies and the Federation of National Public Service Personnel Mutual Aid Associations,in addition to the existing insurer unit, from FY2021.
・With a view to realizing the appropriate visualization and evaluation of the health management
initiatives and results of corporations and other entities by internal and external parties, thegovernment aims to compile, during FY2020, matters related to the approach to the disclosure ofhealth management information that can be utilized in capital markets, based on the Guidelines for
Administrative Accounting of Investment in Health and Productivity Management drawn up in June
2020 (decision by the Review Committee on Approaches to Making Investment in Health andProductivity Management Visible on June 12, 2020) and in anticipation of the introduction of
incentive measures to further promote health investment by corporations, etc.
・With regard to “beyond2020 My Best Program,” an initiative triggered by the Tokyo Olympic andParalympic Games (decision by the liaison/joint meetings of the relevant ministries and agencies on
measures to create momentum through culture toward the Tokyo 2020 Olympic and Paralympic
Games on December 21, 2018), the government will announce the results promptly after theconclusion of the games and promote health promotion among the citizens with a view to creating
legacy.
e) Validation of the effects of prevention/health promotion through the use of data, etc., andpromoting private-sector prevention and health services
・To bring about utilization in preventive health projects of insurers, local governments, and otherentities, large-scale demonstrations will be launched successively from around summer 2020, in
order to verify and build up evidence related to the health enhancement effects of prevention andhealth promotion through the use of data. Based on those results, the government will promote
initiatives for appropriate prevention and health promotion by insurers and others.
・To advance the development of an environment that aims to build a distribution structure for healthcare services, while securing a certain level of quality, the government will support the establishmentof voluntary guidelines within and across industries and realize use by 1,000
corporations/organizations by FY2025.

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Provisional Translationf) Further strengthening of incentives for the prevention of long-term nursing care
・As for the nursing care incentive subsidy for nursing insurance insurers and municipal governments(subsidy to promote the strengthening of insurers’ functions, and subsidy to support the efforts ofnursing insurance insurers), an impact analysis on the strengthening of incentives will be conductedin FY2020, while consideration will be given to a review on the expansion of the adoption of
performance indicators and the strengthening of allocation criteria modulation, for the respective
evaluation indices and allocation of scores, in FY2021.
・In reviewing the respective evaluation indices and allocation of scores, the government willthoroughly put the PDCA cycle into motion, such as by increasing places where the elderly caninteract with others, boosting support for the elderly to take up employment or volunteer in nursing
homes as “nursing assistants,” utilizing points as incentives for individuals, and continuing withfocused reviews on the integral implementation of nursing care prevention and health services fromperspectives such as exercise, oral health, nutrition, and social participation. At the same time, thegovernment will engage in the lateral roll-out of advanced, outstanding practices, and promote theutilization of private-sector services among other initiatives.
・With regard to health services for the elderly aged 75 and above, the government will apply insurers’
incentive measures for medical treatment for the latter-stage elderly, and enhance close support
including measures for the frail.
・With regard to the addition of nursing care remuneration for the maintenance or improvement ofusers’ average daily life activities, the government will conduct a verification of effects based onevidence and put in place the necessary measures for the next revision of nursing care remuneration
in FY2020, with a view to realizing support for independence and preventing the deterioration of
independence.
g) Strengthening of comprehensive measures for dementia
・Based on the Framework for Promoting Dementia Care (decision by the Ministerial Council on the
Promotion of Dementia Care Policies on June 18, 2019), the government will promotecomprehensive dementia measures based on the pillars of “coexistence” and “prevention,” and at
the same time advance initiatives to realize a barrier-free approach to dementia in cooperation with
the Japan Dementia Public-Private Council. With a view toward the establishment of dementia
prevention methods, research and development efforts will be strengthened, such as theestablishment of a system that can enable immediate response to drug trials by FY2021. The
government also aims to establish, by FY2022, evaluation indicators and methods for prevention
through public-private partnership in the field of dementia, and from FY2020, conduct
demonstrations on products and services that are easy for dementia patients to use.

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Provisional Translationⅶ）Next-generation healthcare
The spread of the novel coronavirus disease has brought about renewed recognition of theimportance of making testing and treatment widely available to those who need it, and of collecting
and analyzing data quickly. Hence, the government will promote, with a greater sense of urgency
and in the most optimal manner, individual policies in the fields of medical care and nursing care.
This will be achieved by harnessing technological innovation and ensuring a high level of costeffectiveness, so as to promote health among the citizens, enhance the quality of medical care andnursing care as well as raise productivity, and bring about work style reforms on the ground.
1. Securing effective, efficient medical and nursing services that harness technologicalinnovationsa) Promoting the active utilization of data that will serve as the foundation for the provision ofhealth, medical, and nursing services(Online verification of eligibility, etc.)
・The system for the online verification of eligibility will commence full-scale operation from March
2021. This system enables the personalization of the insurance identification number for medical
insurance and makes it possible to use the “My Number” card as the health insurance certificate. For
that reason, the government aims to steadily advance system development for medical institutions
and pharmacies from August 2020 through the utilization of the Medical Informatization Support
Fund and realize the adoption of the system by virtually all medical institutions and pharmacies by
the end of March 2023.
・To improve the precision of the consolidation of medical and nursing care information on databases
such as the National Database of Health Insurance Claims and Specific Health Checkups of Japan(NDB) and the Comprehensive Nursing Care Insurance Database (Nursing Care DB), thegovernment aims to implement the necessary measures toward the enforcement of the Act on Partial
Amendment of the Social Welfare Act and other laws55, toward the realization of a regional cohesivesociety that incorporates contents to enable the utilization of the records of insurance identification
numbers, such as the Social Insurance Medical Fee Payment Fund, as the foundation for the system
for the online verification of eligibility, alongside with the provision of the information required for
accurate consolidation while ensuring security. The government aims to commence operation fromFY2021.
(Coordination and utilization of health and medical information in medical institutions, etc.)
・With regard to frameworks that enable medical institutions nationwide to verify patients’ health andAmendments to enable the utilization of the records of insurance identification numbers, such as the Social Insurance
Medical Fee Payment Fund, alongside with the provision of the information required for accurate consolidation while ensuring
security, will be enforced on a date stipulated by government ordinance, not exceeding 2 years from the date of promulgation(June 12, 2020).
55

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medical information based on receipts, such as information on medicines and specific healthcheckup information, it will be possible to verify specific health checkup information from March
2021 and information on medicines from October 2021. Furthermore, the government will expand
the scope of information, such as information pertaining surgeries, and make it possible to verify
such data around the summer of 2022.
・Through the utilization of the Medical Informatization Support Fund and other sources, thegovernment will reach a conclusion on concrete measures for promoting the standardization ofelectronic medical records based on the technological trends, as well as the introduction of electronic
medical records including small- and medium-scale medical institutions, in FY2020.
・With regard to the electronification of prescriptions, alongside with disseminating the contents ofguidelines revised in April 2020, the government will also begin work on creating the necessary
environment for electronification in FY2020, and implement electronification from FY2022 basedon the environment established.
(Coordination and utilization of medical and nursing care information)
・To promote coordination between medical care and nursing care through the use of ICT, thegovernment will advance the production of standard specifications for sharing patients’ medical andnursing care information upon their admission into and discharge from hospitals, between medical
institutions and nursing homes. At the same time, it will review and reach a conclusion in FY2020
on the need for other coordination between medical and nursing care, as well as the potential for theuse of ICT.
(Promotion of PHR)
・The government will continue to promote Personal Health Records (PHR). These enable individuals
and their families to obtain, from a central source, their personal health checkup and prescription
records, as well as facilitate improvements in their everyday life, medical consultation and treatment
where necessary, and accurate communication in medical settings.
・With regard to the provision of personal data through the Myna Portal and other sources, thegovernment will launch the provision of information related to health checkups for infants andtoddlers, and other data, from June 2020. It also aims to commence providing information on specifichealth checkups from March 2021 and prescription information from October 2021. As for other
health checkup and screening information, it aims to create an environment toward the realization of
support for local governments, etc. and the establishment of the necessary laws based on the work
schedule formulated in the summer of 2020, and to begin providing information in standardized,
electronic formats around 2022.
・With regard to the utilization of PHR data by private-sector operators and other organizations, thegovernment will come up with an approach on API coordination with Myna Portal and other systems,
and on the establishment of the necessary rules for private-sector operators, with the aim of rolling101

Provisional Translationout the service around FY2020.
(Utilization of health, medical, and nursing care information as Big Data)
・The analysis of coordination between the NDB and Nursing DB will enter full-scale operation from
October 2020, and will be available for utilization by administrative agencies, researchers, andprivate-sector operators.
・Based on the Healthcare and Medical Strategy (Cabinet decision on March 27, 2020) and under the
Next Generation Medical Infrastructure Act, the government will promote understanding among
citizens through publicity and awareness-raising programs, as well as promote the application of
medical information, made anonymous, to research and development in the medical field by a wide
range of entities.
b) Promotion of the use of technology, such as ICT, robots, and AI in medical and nursing caresettings(Promotion of telemedicine)・In cooperation with the relevant academic societies and business operators, etc., the government will
promote efforts to collect data related to the safety and effectiveness of online medical consultations,and to understand the situation in case studies. It will also verify temporary measures based on the
spread of the novel coronavirus infectious disease, and based on the results, periodically review
guidelines for the appropriate implementation of telemedicine.
・Toward the next revision of medical treatment fees, the government will survey and verify how
widespread telemedicine is, and consider the addition of diseases for which safety and effectivenesshave been verified to the scope of coverage by telemedicine systems. It will also verify temporary
measures based on the spread of the novel coronavirus infectious disease, and based on the results,
consider a review of online medical treatment fees. Furthermore, with regard to the methods for the
implementation of telemedicine and the requirements for implementation systems, the government
will conduct the necessary reviews toward the appropriate spread and promotion of telemedicine,
based on the results of verification of temporary measures based on the spread of the novel
coronavirus infectious disease.
・For telemedicine including online medical consultations, the government will conduct technologicaldemonstrations based on the advancement of ICT as well as demonstrations with a view to theestablishment of new models, and work to promote safe and effective telemedicine. It will promote
the development and spread of a system that enables the verification of the health status ofindividuals over time, remotely and without face-to-face contact, as a system that supports
telemedicine. Furthermore, to support difficult surgeries that can only be performed by doctors who
are available remotely, the government will promote the development of high-performing, highprecision equipment, as well as the creation of a high-capacity, ultra-low-latency communications

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environment based on the premise of using such equipment.
・With regard to online drug administration guidance, the government will conduct reviews, where
necessary on the implementation status of online drug administration guidance under the
Pharmaceutical and Medical Device Act enforced in September 2020, and on the status for
temporary, special measures based on the recent spread of the novel coronavirus infectious disease.
At the same time, it will also verify newly-established evaluation of online drug administration
guidance based on the revision of medical treatment fees in FY2020.
(Realization of scientific nursing care)・To bring about the realization of nursing care with scientifically-backed effectiveness of self-reliancesupport, the government will implement a full-scale analysis using information from databases thatcollect and analyze data, such as the status and contents of care of elderly persons, which commenced
operation from FY2020. It will then advance its application to discussions on the next revision ofnursing care fees and beyond, as well as the evaluation of nursing care services with proveneffectiveness. With regard to the data acquired, initiatives will be promoted to contribute to theprovision of such data to nursing homes, and to enhancing the quality of care such as through theformulation of best practices for nursing care services. Furthermore, a review will be conducted on
the evaluation of outcomes for incentives—which promote measures such as support for the
independence of the elderly and the prevention of the deterioration of independence—to work.
(Development and introduction of robots, sensors, etc.)
・In anticipation of the medium- to long-term vision that takes a view to 2040 and the realization of asociety where people can enjoy healthy, worry-free lives until they are 100 years old, the government
has decided on the targets for the Moonshot Research and Development program for the healthcare
and medical fields early in FY2020, and will promote challenging research and development, as wellas accelerate the prompt implementation of advanced technology in society. The government will
also promote the development of evaluation methods to allow citizens to obtain information about
the status of their own health.
・Toward the promotion of effective technology aimed at enhancing work efficiency in the nursing
care sector, the government will build a platform for the development, demonstration, andpopularization of nursing care robots in FY2020, and carry out the following: (a) Develop a modelfor the provision of care at trial demonstration facilities; (b) Conduct demonstrations in nursing caresettings that are care provision models; (c) Promote and spread, nationwide, care provision models
with verified effectiveness.
・Alongside with promoting nursing care robots through the utilization of the Fund for Medical andLong-Term Care as well as support for the adoption of ICT, the government will accumulate andanalyze evidence data obtained through large-scale demonstrations in nursing care settings anddemonstrations on the effectiveness of the introduction of nursing care robots, and apply this data to103

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the evaluation of the next nursing care fees revision. At the same time, it will also promote initiatives
on the introduction of nursing care robots and ICT in the field of welfare for people with disabilities,
based on the situation in the nursing care sector.
(Utilization of technology such as AI, etc.)
・To reduce the burden of medical practitioners and improve the quality of medical services, thegovernment will build a platform for promoting the development and utilization of AI. Uponreaching a conclusion in FY2020 on reviews relating to the framework for the collection andutilization of independent data in initiatives to develop AI for supporting diagnostic imaging, fromFY2021, the government will strengthen the development of early detection and diagnostic
technologies that utilize AI, in cooperation with medical practitioners. Furthermore, with a view toresolving issues identified in the development of AI, the government aims to put in place initiatives
based on the work schedule formulated in June 2020, and in partnership with medical institutions in
Asia and other regions, expand AI technology developed in Japan overseas.
(Promotion of genomic medicine)・The government will make use of all genomic information, etc. and continue to promote genomic
medicine for cancers, intractable diseases, etc. From the perspective of significantly enhancing the
precision of treatment for each individual and providing new treatment methods to patients for whom
no treatment methods are available, the government will first advance precedence analysis based on
the action plan for whole genomic analysis formulated in December last year. In the precedence
analysis, the government will utilize the main biobank specimens and new specimens that will be
provided in the future to conduct whole genomic analysis based upon a close examination of
specimens that can be utilized for research, with close to a maximum of 100,000 cases of cancer andintractable diseases as the subject for analysis, by FY2023. For cancer, the scope covers cancers andintractable diseases with a high morbidity rate, rare cancers, hereditary cancers, and for intractablediseases, the scope covers single gene disorders, multifactorial diseases, and diseases that are difficult
to diagnose.
・The government will organize interim points based on the progress status of precedence analysis,
identify issues such as the direction of full-scale analysis, the stance on system development and costburden, and ethical, legal and social issues, as well as establish systems that can execute full-scale
analysis smoothly. At the same time, the government will build up whole genome information
obtained from whole genomic analysis, etc. with clinical information, and establish systems thatenable industry and academia stakeholders to apply a wide range of discovered drugs and treatment
methods to analysis and utilization.
c) Organizational reform for medical and nursing care settings, and realizing large-scale,collaborative management

104Provisional Translation(Reducing paperwork, streamlining work processes, and utilizing diverse human resources)
・To promote work style reform for doctors and other medical practitioners, the government will
promote management reform for medical institutions through means including promoting thoroughlabor management and task-shifting, and the lateral expansion of measures for utilizing ICT, which
contributes to streamlining work processes in ways such as reducing working hours for doctors. In
addition, the government will undertake a radical review of the medical information network thatallows users to search for medical institutions, disseminate and raise awareness on the consultation
hotline for emergencies, and strengthen initiatives that contribute to individual behavioral changes,
such as the lateral expansion of advanced, outstanding practices.
・To reduce the burden on nursing care staff and provide high-quality nursing care services, thegovernment will provide support for the promotion and informatization of nursing care robots by
utilizing the Fund for Medical and Long-Term Care. When doing so, it will apply the Guidelines forraising productivity and disseminate them effectively to nursing care settings, with a view to realizing
the integral promotion of initiatives to enhance the efficiency and productivity of nursing caresettings.
－From the perspective of maintaining and improving the quality of nursing care services, thegovernment will promote the lateral expansion of pilot projects implemented in FY2019 as wellas the convention of a prefectural version of the Conference on the Innovation of Nursing Care
Settings, and build models for enhancing the efficiency of nursing care settings that are adapted
to individual regions. It will also reflect the knowhow that has been accumulated into guidelines
related to raising productivity, and strongly promote the lateral expansion of good practices.
－From the perspective of work style reforms for nursing care settings, in order to implement
efficient work management functions that enable diverse work styles, the government willstrongly promote the development of Wi-Fi environments in nursing homes as well as theintroduction of tablet devices in nursing care settings from FY2020. With a view toward thealignment and standardization of items related to efficient work management functions, thegovernment will advance reviews by experts and reach a definite conclusion by FY2020.
・As for initiatives to reduce paperwork, in the nursing care sector, the government will consider the
direction of reviews toward the establishment of more simplified, standardized formats for
documents, as well as the utilization of ICT and other tools, in FY2020, based on initiatives
implemented in FY2019. It will also put in place the necessary measures quickly in response to theconclusions on the respective initiatives. In the medical and welfare sectors as well, it will
successively advance the reduction of the volume of paperwork and standardization, while taking
into consideration the characteristics of each sector.
・By utilizing the Fund for Medical and Long-Term Care and providing support for the utilization ofdiverse human resources such as nursing care assistants, the government will put comprehensive

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effort into securing nursing care personnel.
(Realizing large-scale management for social welfare corporations)・To enable social welfare corporations with the desire to do so, to smoothly implement measures forincreasing their scale and strengthening collaboration, the Guidelines for the Business Expansion ofSocial Welfare Corporations (provisional title) was formulated in FY2020, based on which effort
will be made to raise awareness and disseminate good practices.
2. Development, commercialization, and international expansion of outstanding pharmaceuticals
and medical equipment originating from Japana) Development and commercialization of outstanding pharmaceuticals and medical equipment
originating from Japan・Based on the Healthcare and Medical Strategy and other policies, the government will promoteconsistent research and development from groundwork to practical application, under “Integrated
Projects” that are focused on themes such as modality that enables flexible and swift response to awide range of diseases.
・Based on the Medical Engineering Collaboration Innovation Promotion Project established in
FY2020 and other initiatives, the government will strengthen collaboration with academic
associations, support for benefactors of young researchers, and support for venture businesses, aswell as promote new entry into the medical equipment and healthcare service sectors. Furthermore,through the Healthcare Innovation Hub (InnoHub), the government will establish in FY2021
industry-academia-government networks within and outside Japan in the field of life sciences.
b) International expansion, etc.
・Under the Asia Health and Human Well-Being Initiative and Africa Health and Wellbeing Initiative,
the government will promote the international expansion of Japan’s healthcare-related industries
with a view to contributing to the achievement of Universal Health Coverage (UHC). In particular,
in order to realize “smart healthcare” through the utilization of ICT in ways that are related toJapanese corporations, the government will engage in the development of soft infrastructure
including measures against infectious diseases. In addition, alongside with the promotion of thepharmaceuticals and medical equipment industries, the government will further promote theharmonization of regulations for pharmaceuticals and medical equipment in Asia based on theimplementation strategy for the Grand Design for Asian Pharmaceutical and Medical Device
Regulatory Harmonization (decision by the Health and Medical Strategy Promotion on July 14,2020), as well as the establishment of an international clinical trial system within and outside Japan
toward the enhancement of a clinical development system.
・The government will integrally promote the international expansion of medical care centered around106

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Medical Excellence Japan (MEJ) and JETRO, inbound medical tourism through the Japan
International Hospitals (JIH) system, and the provision of medical services in line with theComprehensive Measures for Securing Appropriate Medical Care for Foreign Visitors to Japan, so
as to enhance the international support capability of Japan’s medical system.
・With regard to measures for infectious diseases, which pose an international threat, the government
will strongly and urgently promote efforts to strengthen testing and treatment systems for the novel
coronavirus infectious disease, development and dissemination of therapeutic drugs and vaccines,
and strategic, international joint research. At the same time, it will also promote measures such as thestrengthening of research capability and functions, including human resource development, throughthe creation of research hubs centered on Nagasaki University and the establishment of researchbases in areas that are experiencing the outbreak of infectious diseases, as well as the strengtheningof outbreak trend surveys, testing systems, and medical care systems in light of the approaching
Tokyo Olympic and Paralympic Games.
・In anticipation of the “post-corona” era, the government will promote the international expansion of
medical and healthcare products and services that will see high demand in various countries in the
future. It will also implement measures such as the popularization of health management including
initiatives for prevention and health promotion, the building of a foundation for a healthcare
innovation network, and the establishment of a cooperative system with each country.
・Through international conferences and other means, the government aims to promote UHC and raise
Japan’s international standing in responding to an international infectious disease crisis, as well as
strengthen cooperation with other countries through bilateral support and support to international
health organizations such as the World Health Organization (WHO), the Global Fund, the Global
Alliance for Vaccines and Immunization (GAVI), as well as the Global Health Innovative
Technology Fund (GHIT Fund) and CEPO. In addition, from the perspective of infectious diseasemeasures including zoonotic diseases, the government will consider the establishment of a global
hub for attracting global human and financial technology through industry-academia-government
collaboration, and review systems that can cope with emergency situations in the future. It will also
promote AMR measures. Furthermore, the government will strengthen the development of humanresources who can respond to international infectious diseases, as well as the dispatch humanresources to international organizations.
ⅷ) Utilization of sandbox systems
The demonstration system for new technologies, etc. based on the Act on Special Measures for
Productivity Improvement (sandbox system for regulations) restricts the duration and participants
for the demonstration of innovative technologies and business models such as AI, IoT, Big Data,and blockchain, and gains the consent of participants. By doing so, it permits the implementation ofdemonstrations without the application of existing regulations, utilizes information obtained through107

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the demonstrations, and realizes regulatory reforms and swift social implementation of newtechnologies.
From June 2018 to May 2020, 133 parties have been certified for 15 projects in fields such as
Fintech, healthcare, mobility, IoT, and real estate.
(Certified demonstration plans)・Demonstration of household equipment that carries out communications through high-speed PLC(power lines such as power sockets)
・Demonstration on recommendations to undergo online medical consultation for influenza, with the
combined use of a diagnostic kit and videoconferencing
・Demonstration of a system that simultaneously fulfills the exchange of virtual currency and legal
tender・Demonstration on preventing the unauthorized opening of online accounts through identity theft
・Demonstration of a resource recycling system that captures waste deposition status through IoT
sensors and carries out wide-area collection efficiently
・Demonstration of the monitoring of clinical data using blockchain technology
・Demonstration for the confirmation, through biometrics authentication, of pre-registered consent for
emergency medical procedures
・Demonstration of P2P insurance, in which the policyholder shares the burden of paying for insurance
premiums after an accident has occurred・Demonstration on the electronification of document submission during the signing of real estate lease
contracts
・Demonstration on the loan of camping cars as accommodation spaces instead of vehicles
・Demonstration of projects on the sharing of electric-powered kickboards (two projects)
・Demonstration on the driving of electric motorbikes that can be switched to manual mode in bicycle
lanes
・Demonstration on P2P insurance that makes provision for individuals against small-sum risks withfriends and others (implemented after the establishment of special measures for the Order for
Enforcement of the Insurance Business Act)・Demonstration of self-blood collection screening system to measure the degree of muscle fatigue,
etc. of rugby players, etc.
1. Improvement of operation and follow-up after demonstrations
・Many of the demonstrations are carried out by venture companies that are less than 10 years old, andthe certification of demonstration plans can also contribute to the realization of partnerships withlarge corporations or the procurement of large-scale funding. On the other hand, there are concernsof inadequate knowledge with regard to the legal aspects as well as the advisability of certification.

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As a result, there are many business operators that do not even reach the stage of applying for thecertification of demonstration plans. For this reason, the government will review and implement
measures such as recruiting business operators to conduct demonstrations, upon sorting out matterssuch as the legal issues for conducting demonstrations in advance in fields with confirmed needs forthe review of regulations and the implementation of demonstrations based on prior consultations.
・To date, 10 demonstration plans have been completed, and there are examples of cases where projects
were commercialized based on the confirmation of compliance with existing regulations throughthe demonstration, as well as examples of cases where the competent minister reviewed regulations
based on the results of the demonstration. As for other demonstrations, based on the provisions of
the Act on Special Measures for Productivity Improvement, the competent ministers receive reportson the status and results of the demonstration, review the status of regulations on new technologies,
etc., and implement legal measures to abolish or ease the necessary regulations based on the resultsof the review. Where necessary, the Innovative Business Activity Evaluation Committee requests
for a report from the demonstration implementing entity and the competent minister, and follow-up
on the demonstration project.
(Main demonstrations that consider the direction of regulations in the future)・With regard to electric-powered kickboards, which are currently classified as motorized bicycles, a
new project will be implemented to demonstrate its travelling areas and vehicle safety standards as
a new means of mobility for the future, while paying full attention to ensuring the safety and comfort
of various traffic entities including pedestrians. The demonstration will take into considerationinternational trends as well as demonstration tests based on the sandbox system for regulations
implemented in FY2019. Furthermore, based on the results of the new project, a review will be
conducted on matters such as the requirements for drivers, measures to ensure safety, and traffic rules
in zones marked out for cars. It will also include consideration of the need for a review of the system.
In particular, a conclusion will be reached in the first half of 2021 on special measures forrequirements for drivers, based on the National Strategic Special Zone Act.
・The clarification of interpretation and other necessary measures will be implemented to clarify,
beforehand, with clinical trial sponsors and others, that source document verification (SDV) is not
required on-site to verify consistency when utilizing blockchain technology to ensure consistency
between clinical trial data and the source data.
2. Reviews on continuation and expansion of system
・The Act on Special Measures for Productivity Improvement aims to promote innovative businessactivities, etc. and raise productivity over the short-term in the three-year period until the end of
FY2020, which has been designated as the period for productivity revolution and intensive
investment. It will be abolished within 3 years from the date of enforcement (June 6, 2018). Going

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forward, a review will be conducted on matters including the continuation and expansion of thesystem based on the track record for the utilization of the sandbox system for regulations, issues, andneed for review of regulations, and the necessary measures will be implemented based on the resultsof the review.
ⅸ) Tourism, sports, culture and arts
1. Realization of Japan as a tourism-oriented country
Due to the impact of the novel coronavirus infectious disease, tourism demand has fallen
significantly and seriously affected not only the travel and accommodations industries, but also awide range of industries across Japan including local transportation, food and beverage, andmerchandise sales.
Such tourism-related industries are an important foundation for Japan to subsist as a tourismoriented country. To ensure that tourism infrastructure such as accommodation facilities are notdamaged, the maintenance of employment and continuation of businesses will first be addressed as
the top priorities. To that end, the government will implement support measures such as the Subsidy
Program for Sustaining Businesses, effectively interest-free and unsecured loans, and the
Employment Adjustment Subsidy. Furthermore, in addition to encouraging core accommodation
facilities with the motivation to attract domestic and foreign tourists, to renovate their facilities andreview the contents of their management, the necessary measures will also be put in place to secure
diverse funding.
As a part of these efforts, while carefully assessing the situation of infections, the government will
work to restore domestic tourism while strongly stimulating tourism demand and levelling demand,
through means such as launching the Go to Travel program, providing discounts on travel products,
and issuing coupons that can be used at travel destinations widely across regions.
Taking this opportunity, the government will also encourage to spread new travels styles that aresafer and more comfortable, and which are compatible with work style reform such as “workation,”“bleisure,” and the use of satellite offices.
Since the inauguration of the Abe administration, foreign tourists to Japan have been contributing
to the local economy, with their numbers increasing by about four times to 32 million and the valueof their spending reaching about 5 trillion yen. Inbound tourism continues to hold great potential in
the future, and the target of 60 million inbound tourists by 2030 is a fully achievable one. For thatreason, based on the Tourism Vision to Support the Future of Japan (formulated by the Council for
the Development of a Tourism Vision to Support the Future of Japan on March 30, 2016) and theTourism Vision Realization Program 2020 (decision by the Council on the Promotion of Japan as a
Tourism-Oriented Country on July 14, 2020), the public and private sectors will work as one toadvance initiatives for achieving the target of 60 million foreign tourists to Japan by 2030, and to110

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realize the vision of becoming a tourism-oriented country.
To date, Japan has been advancing initiatives including the improvement of entry points at airports
and CIQ, improving the reception environment, such as multilingual signages and announcements,
so that foreign tourists can enjoy stress-free sightseeing, and the development of new contents forforeign tourists, including snow resorts, cultural facilities, National Parks, countrysidestays, andcruises. By making use of the time until movement of people from foreign countries are resumed,
these measures will strategically be advanced in each region. To that end, in addition to promoting
initiatives to improve theexperience at destinations, such as by enhancing foreigner hosting
capability and enriching hands-on activities, the government will also advance support for inboundtourism all at once, such as by utilizing interpreter-guides and effectively maintaining multilingual
notation and signboards. Furthermore, the government will also strategically promote thedevelopment of facilities and creation of contents to support travelers seeking quality service.
a) Recovery of domestic tourism demand, and strengthening of the constitution of tourismrelated industries
・The government will establish a foundation for shifting from a “defensive” stance to an “offensive”
one in order to restore tourism demand. First, the government will promote the thoroughimplementation of guidelines to prevent the spread of infections, drawn up by tourism-related
business operators such as accommodations and travel operators, chartered bus operators, etc., tobring about the realization of safe and secure travel. At the same time, it will ensure the disseminationof tips that travelers themselves should take note of in order to prevent infection.
・To maintain and enhance the earning power of accommodation facilities as a response to the “newnormal for everyday life,” the government will utilize a wide range of policy tools for motivatedaccommodation facilities, such as the deployment of advisers and investment or loans fromgovernment-affiliated agencies and implement initiatives in an integral manner to increase the added
value and raise productivity corresponding to the unique circumstances of each accommodation
facility. These initiatives include measures to prevent the spread of infections, development of new
businesses, enhancing efficiency of management, utilization of foreign human resources, andrenovations. In addition, it will also dispatch lecturers to strengthen the ability to support inboundtourism.
・With a view to realizing the complete regeneration of all sightseeing spots, the government willseparate ownership and management and attract investment, so as to eliminate obstacles to fresh
investment caused by factors such as the deterioration of accommodation facilities. In addition, thegovernment will review frameworks for entrusting management to motivated managers, with theaim of reaching a conclusion in the early part of FY2020.
・In addition to supporting initiatives for improving the reception environment for foreign tourists atsightseeing sports and in public transport, the government will also promote infectious disease111

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counter measures in tourist facilities.
・While assessing the status of novel coronavirus infections, the government will implement the “Goto Travel” campaign. In implementing the campaign, the government will put in place thoroughmeasures to prevent the spread of infections while providing discounts for accommodations and day
trip travel products. In addition, to strongly stimulate tourism demand, it will issue coupons that thatcan be used widely across various regions, at local souvenir shops, restaurants, tourist facilities, andtransportation. In such cases, in addition to small- and medium-sized travel companies in the local
regions, local hotels and inns will also be eligible for support when selling products directly.
・Taking into consideration that some schools have reduced the duration of summer vacation in
FY2020, taking leave during off-season by the people will be promoted in order to avoid aconcentration of tourism demand.
・Taking the novel coronavirus pandemic as an opportunity to move away from the conventional travel
style of concentrated travel at specific locations in specific periods of the year, effort will be made to
spread new travel styles that are safer and more comfortable, as well as compatible with work stylereform such as “workation,” “bleisure,” and the use of satellite offices. These will be reflected inpolicy papers such as the Tourism Nation Promotion Basic Plan, which is scheduled to be revised
within this fiscal year.
・Through support for the creation and commercialization of tourism contents at destinations incooperation with external corporations and experts, as a part of efforts to refine local tourism
resources into highly attractive products, and the creation of contents based on the Japan Cultural
Expo, as well as the refining and utilization of various cultural and natural tourism resources thateach region takes pride in, and the promotion of “workations” at National Parks and other such spots,
the government aims to increase the added value of sightseeing spots and promote the diversificationof the tourist base, so as to promote domestic travel.
・While fully assessing the situation of novel coronavirus infections in each country and region, thegovernment will successively start promoting travel to Japan in countries in which it is appropriate
to do so.
b) Measures for the continued promotion of inbound tourism
Alongside with continued, strategic efforts to improve existing reception environment andcreation of new contents, following measures will be implemented.
・The government will strategically advance the development of facilities and creation of contents fortourists seeking high-quality service. Toward the establishment of about 50 world-classaccommodation facilities, the government will engage in human resource development and otherinitiatives, and provide financial support triggered by fiscal investment and loans where necessary.
・Alongside with advancing cooperation with regional stakeholders under the form of destination
marketing/management organizations, starting from FY2020, the government will match such112

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regions with diverse venture businesses that have knowledge of the development of products andservices that can meet the needs of foreigners, and of market development, and implement initiatives
from FY2020 to secure sales channels overseas.
・The government will commence support from FY2020 for the creation of an environment to utilize
airports, railway stations, and “Michi-no-Eki” roadside stations as sales bases for travel products,
with a view to promoting the purchase of travel products during the course of a journey.
・The government will commence support from FY2020 for the creation of an environment to utilize
airports, railway stations, and “Michi-no-eki” roadside stations as sales bases for travel products,
with a view to promoting the purchase of travel products during the course of a journey.
・To realize the highest standards of adventure tourism in Asia, effort will be made to raise the service
standards for tour products and to promote the nurturing of tour guides. To that end, in FY2020, thegovernment will provide support for tour product development initiatives in cooperation withdestination marketing/management organizations.
・To transform National Parks etc. into the main sightseeing destination, the government will put
particular effort in FY2020 into strengthening landscape improvements and attracting private
investment through the creation of contents contents leveraged by charm of nature and the removalof abandoned buildings, as well as promote efforts to attract visitors.
・The government will encourage the investment in snow resorts through support to improve the arrival
environment, such as the creation of contents for après-ski, and to foster a sense of unity among theregions through the issuance of lift tickets commonly used in a certain region as well as financial
support from government-affiliated financial institutions that will stimulate investment and loans. It
will also establish internationally competitive snow resorts in 10 to 15 locations nationwide. .
・To promote the development of contents that combine local culture with sports, such as budo (martialarts) tourism, the government will implement model initiatives in six regions nationwide in FY2020.
・The government will work to create an environment that allows tourists to once again enjoy cruises
with peace of mind, including by formulating guidelines for securing the safety of cruise ships andthe host port, in FY2020.
・The government will support initiatives toward creating a showcase of tourism nation in the cities ofKushiro, Kanazawa, and Nagasaki. It will also horizontally expand the expertise of each city to other
cities by FY2021, while promoting their voluntary initiatives through the dialogue with local tourism
stakeholders.
・In order to attract inbound tourists, the government will promote mutual exchanges between the Host
Towns of all over the country including those of a Harmonious and Inclusive Society, and theirpartner countries, and work on sharing the charms of Japanese regional areas with the world.
・In order to attract visitors from a wide range of regions, the government will expand its focusedpromotion into wider markets, and roll out global campaign methods used in Europe, America, andAustralia to Asia.

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2. Carving out a future for the sports industry
Due to the impact of the novel coronavirus pandemic, sporting activities have had no choice but
to scale down drastically. Taking into account the gradual improvement in the pandemic situation
going forward, the government will gradually allow the resumption and full-scale implementationof sporting activities, while putting its best efforts into preventing infections. At the same time, itwill steadily promote fundamental initiatives such as the strengthening of management capability ofsporting organizations as well as various initiatives at the regional level, such as sports tourism. In
particular, it will engage in the effective and efficient implementation of a wide range of relevantmeasures while strengthening Japan’s ability to compete in international games, in view of theapproaching Tokyo Olympic and Paralympic Games.
a) Establishment of foundation for developing sports as a growth industry
・Based on the Governance Code for National Sport Federation Members formulated in FY2019, thenecessary advice is given to umbrella organizations based on reports on the results of conformity
assessments conducted by umbrella organizations (Japan Sport Association, Japanese Olympic
Committee, and Japanese Para-sports Association) starting from FY2020. In addition to providing
continued support for the medium- to long-term popularization of National Sports Federations andformulation of marketing strategies, as well as the provision of the necessary advice based upon anunderstanding of the issues related to formulation and implementation, support will also be provided
for the formulation and implementation of project plans, including the achievement targets for model
initiatives in the next 4 years. On top of creating checklists to encourage National Sports Federations
to put in place improvements voluntarily, reviews and analysis will also commence in FY2020 on
issues related to the integration and streamlining of common work processes between the NationalSports Federations.
・To nurture sports managers, the government will promote initiatives such as the development ofpractical curriculum that take a view to the introduction of MBA courses. To promote the inflow andretention of external human resources into sporting organizations, the government will carry out
matching activities as well as provide advice based on an analysis of the issues.
・With regard to the Sports Open Innovation Platform (SOIP), which aims to create new projects
through the merging of the sporting sector with other industries, in addition to promoting personnel
exchanges within and outside Japan, the government will also host conferences to disseminate
information on initiatives to address social issues and the latest SOIP trends, as well as implement
acceleration programs to support the development of projects. Furthermore, the government will
also host the Sports Open Innovation Contest (provisional title) to promote the further developmentof projects through the dissemination of advanced practices and utilization of external resources.

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Provisional Translationb) Regional revitalization centered around sports
・For projects selected as “stadiums/arenas that serves as exchange hubs for diverse generations togather,” focused support is provided by the relevant ministries and agencies. The government will
also promote development of regional SOIP to encourage regional professional sporting teams andcorporations, universities, etc. to cooperate and work on urban development and the creation of highvalue-added services.
・The government will advance, in collaboration with the relevant stakeholders including local
governments, the development of an “Index on the Ease of Doing Sports” (provisional title) in
FY2020 and awareness-raising aimed at raising the implementation rate of sports across Japanthrough the application of this index, as well as the securing and enrichment of regional sports
environments by promoting the effective use of school physical education facilities through publicprivate partnership. In addition, the government will advance visualization aimed at centralizing
information on regional sports resources through ICT, as well as utilization through matching withusers.
・Taking the opportunity of events such as the Tokyo Olympic and Paralympic Games, support will
be provided toward initiatives to develop lateral public-private partnership organizations that are
engaged in Host Town initiatives, establish consultation systems to provide close support for thedevelopment of sports- and health-oriented towns by local governments and promote theestablishment of a collaborative system between sports administration and medical care to encourage
residents, including the disabled, to engage in exercise and sports habitually.
・While strengthening cooperation with the relevant ministries and agencies, the government will
steadily promote sports tourism initiatives, such as the convention of regional sports consortiums,
through efforts such as the lateral dissemination of issues and cases to date. With regard to “budo(martial arts) tourism,” the government will work on initiatives such as the development of networks
that involve private-sector organizations, with a focus on the national organization that will belaunched in FY2020.
3. Economic revitalization that leverages on cultural and arts resourcesa) Promotion of the Basic Plan on the Promotion of Culture and the Arts, and the Cultural
Economy Strategy
・While respecting the unique significance of culture and arts, the government will accelerate buildingof positive economic cycles through culture and arts.
・By supporting initiatives to nurture artists and other human resources in the field, secure opportunities
for performances, strengthen foundations for sustained activities, and gain viewers through the useof ICT, the government will establish the foundations necessary for the continued creation,
development, and succession of culture and arts, as well as the recovery of the sector as things
gradually return to their normal situation, so as to keep culture alive and give hope to the people even115

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with the spread of the novel coronavirus infection.
・While assessing the situation of the novel coronavirus pandemic, the government will implement the“Go to Event” (events and entertainment) project. In implementing this campaign, the government
will put in place thorough measures to prevent the spread of infection, while strongly stimulating
event demand by providing coupons and ticket discounts via ticketing agents, to consumers whopurchase event and entertainment tickets during the campaign period. In doing so, the government
will promote support for the implementation of new business methods, including the distribution oflive events carried out without an audience.
・While putting in place thorough measures to prevent the spread of infection, the government will
promote the convention of large-scale events including the use of convention halls and other venues.
・The government will advance the implementation of the Japan Cultural Expo, which is a large-scale
program embodying the beauty of Japan, and other initiatives based on the Basic Plan for the
Promotion of the Implementation of International Cultural Exchange Festivals (Cabinet decision on
March 29, 2009), to establish a national brand.
・Through the collaborative meeting that provides a space for dialogue between the arts and culture
sector, the business circles, and the government, effort will be made to promote the reform ofcorporate culture through the use of arts and cultural resources and the relevant technologies, as wellas the creation of innovation. At the same time, the government will invest in arts and culture, andbuild a virtuous cycle for economic growth, such as by conducting a review in FY2020 toward theestablishment of a framework for promoting the effective use of artworks held by corporations andother entities.
・At national museums such as the Tokyo National Museum, the government will disseminate theappeal of Japanese culture that harnesses advanced technology and promote the utilization of
museum collections, work on improving the qualifications of museum curators, and at the same time,review frameworks for the lateral roll-out of the results of these initiatives. At the same time, it will
also steadily advance initiatives to promote understanding of the Ainu culture at the National Ainu
Museum that opened in 2020. With regard to the Japan Arts Council, alongside with advancing
reviews in FY2020 toward strengthening the Arts Council’s functions for supporting cultural andarts organizations, the government will also strengthen its functions as a national center by advancing
reviews on the re-restructuring of the National Theater of Japan and other matters.
・To promote the creation and dissemination of Japan’s outstanding media arts, such as manga, anime,
and games, the government will convene media art festivals, support the creative activities of young
creators, and spread such arts overseas in cooperation with global festivals. It will also establish
information hubs to archive works.

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Provisional Translationb) Regional revitalization centered on cultural and arts resources
・Alongside with the nationwide expansion of cultural programs such as the Japan Cultural Expo andbeyond2020 Program, the government will also strengthen the dissemination of Japanese culture
through cultural and arts programs and international cultural exchange, including initiatives toenhance the brand power of diverse Japanese food and food culture, and to disseminate informationin Japan and abroad in cooperation with the relevant ministries and agencies as well as the Japan
National Tourism Organization (JNTO).
・Through the application of laws related to the promotion of international exchange that utilizes thelegacy of the International Council of Museums (ICOM) Kyoto 2019, which set out the relationshipbetween museums and the Sustainable Development Goals (SDGs), and the promotion of regional
cultural tourism centered on cultural tourism hub facilities (enforced on May 2, 2020), thegovernment will enhance the appeal of cultural resources, enhance the functions of cultural facilities,
and promote cultural tourism through the united efforts of regions.
・With regard to regional cultural resources, the government will enhance the appeal of Japaneseheritage as cultural tourism resources, and promote the creation of a strategic preservation andutilization cycle for cultural assets that have a core presence in the region. Furthermore, in order toensure the reliable succession of cultural assets to the next generation, the government will
implement initiatives such as understanding the management situation, carrying out repairs at
appropriate intervals, putting in place disaster prevention and crime prevention measures such assystematic fire protection, securing repair materials, strengthening the dissemination of traditional
skills, and the succession of regional cultural heritage such as traditional events.
・In addition to promoting arts education in schools and local communities, the government will further
enrich appreciation classes conducted by cultural and arts organizations that have been impacted by
the novel coronavirus pandemic, as well as hands-on cultural and arts activities for children. In
addition, based on the Basic Plan for the Promotion of Cultural and Arts Activities for Disabled
Persons (decision on March 29, 2019), the government will promote the creation of an environment
to support cultural and arts activities for the disabled and to enable them to get to know about culture
and arts continuously, by FY2022.
ⅹ) Taking in Overseas Growing Markets
To ensure the sustainable growth of the Japanese economy even with the global impact of thenovel coronavirus pandemic, there is a need for the government to capture overseas demand
continuously once again after the situation has improved, and to put in place initiatives toward thegradual resumption of the flow of people with other countries, beginning with business persons andincluding the handling of persons re-entering Japan. In anticipation of harsh international
competition in the “post-corona” era and amidst the reorganization and diversification of the supply-117

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chain, the government will provide support for the development of overseas markets and theimprovement of business environments, as well as the overseas expansion of Japanese corporations
including small- and medium-sized enterprises. The government will also build a resilient Japanese
economy and social structure from the perspective of economic security.
Global moves toward the achievement of the Sustainable Development Goals (SDGs) alsopresent new business opportunities. With the launch of the “Decade of Action,” the government willride on the momentum of events such as the Asia-Pacific Water Summit, the Tokyo Nutrition for
Growth Summit, and the Tokyo Olympic and Paralympic Games, which are all scheduled to be heldin 2021, and share as well as expand Society 5.0 and Japan’s SDGs Model with the international
community.
Even as the global economy is being subject to the severe impact of the novel coronavirus
pandemic, by engaging in economic partnership negotiations and other initiatives to avoid
succumbing to protectionism, the government aims to continue building a free and fair economicorder based on rules and bring about the sustainable growth of the global economy.
1. Global expansion of Society 5.0 and achieving SDGsa) Support for implementation by multiple stakeholders
・The government will provide support for the Global Technology Governance Summit (GTGS),
which will be convened in Japan in April 2021 by the World Economic Forum and the World
Economic Forum’s Centre for the Fourth Industrial Revolution, in which programs focusing on
healthcare, smart cities and mobility led by the private sector, DFFT, and initiatives toward therealization of governance innovation based on these programs will be implemented. The government
will also apply the opportunity to disseminate the results of Japan’s measures to support therespective programs.
・To execute the “Decade of Action,” which was agreed upon at the UN SDGs Summit last year,
initiatives will be promoted through public-private partnership, including efforts to encourage
Japanese corporations to collaborate with international organizations based on TICAD7 andMekong-Japan Initiative for SDGs as models, in key SDGs agendas in which Japan has strengths,
such as health and nutrition, marine plastic debris, climate change, and disaster risk reduction.
b) Accelerating “STI for SDGs”
・To promote the Science, Technology and Innovation (STI) for implementing the SDGs (STI for
SDGs), the government will gather information on current social issues and implement otherinitiatives in cooperation with international organizations such as the World Bank and UN
Development Programme (UNDP). In particular, Japan will provide support for the formulation andexecution of the STI for SDGs Roadmaps of India and Kenya.
・With regard to platforms for project creation as well as matching of seeds and needs for resolving

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issues, the government will conduct trials toward the resolution of individual SDGs issues indeveloping countries, and further improve the said platforms in cooperation with stakeholders whilebearing in mind the autonomous operation of the platforms by private sector entities in the future.
2. Supporting overseas business expansion of Japanese companiesa) Expansion of exporting infrastructure systems
Alongside with promoting, through public-private partnership, the priority measures set out in the
Infrastructure System Export Strategy (FY2020 revision) (decided by the Management Council for
Infrastructure Strategy on July 9, 2020), the government will decide on a new strategy within 2020
aimed at strengthening the capacity to respond to rapidly changing business models, in anticipationof medium- to long-term overseas expansion of infrastructure in the future, while also taking into
consideration response to diplomatic initiatives such as the “Free and Open Indo-Pacific”, as wellas the potential for social change in the aftermath of the spread of novel coronavirus infections.
(Promotion and implementation of the “quality infrastructure”)
・To promote and put into practice the “G20 Principles for Quality Infrastructure Investment”, which
include openness, transparency, economic efficiency, and debt sustainability, the government will
establish quality projects through public financial institutions and multilateral development banks,develop debt management capacity, promote evaluation index for life cycle costs, and advanceinitiatives that place the emphasis on transparency and sustainability in aspects such as governance.
・In addition to the utilization of top-down sales and foreign diplomatic missions, the government will
also take advantage of visits to Japan by leading figures to promote understanding of “quality
infrastructure” by partner countries.
(Strengthening competitiveness and response capacity in new business models)・In anticipation of the rapid progress of “smart” developments that harness cutting-edge technology
such as digital technologies, the government will promote the overseas expansion of “smart cities”,
apply Japan’s problem-solving ability in fields such as mobility, public safety, energy, environment,
disaster risk reduction, and medicine and healthcare, attract ESG investment, and contribute to theachievement of the SDGs, by utilizing the outcomes of Society 5.0 and demonstrations and studies
in Japan and abroad.
・With regard to 5G technology, which is the basis for the use of digital technology, and the opticalsubmarine cables that support 5G technology, the public and private sectors will work together toexpand overseas the result of domestic application, while giving consideration to safety and security.
・With regard to PPP, through surveys on the systems and issues of the partner country and applicationof knowledge in Japan, Japan will proactively propose the establishment of local systems andsupport for ordering, risk reduction, business schemes that contribute to securing profitability, andfinancial support, and promote the entry of Japanese corporations.

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・ By strengthening cooperation between the relevant ministries and agencies, institutions, andcorporations, including the task force for each sector, the government will promote the establishmentof cross-sectoral projects and enhance proposal capacity.
・To promote cooperation between Japanese corporations and local partners, as well as the smooth
operation of joint projects, Japan will strengthen the support by using public financing, public-private
funds, and M&A through the utilization of tax systems to promote open innovation, in addition tohuman resource development efforts. In order to expand opportunities for involvement in businesses,
including start-up companies, the government will promote the utilization of independentadministrative institutions, etc. as well as partnerships with public organizations of the partnercountry and multilateral development banks.
・From the perspective of further mobilizing private funds, the government will review support for
public financing and public-private funds, including swift decisions for support, greater flexibility inrisk-taking, reviews and improvement of operations toward the establishment of prompt screening
processes that are transparent and predictable, and expanded targets for support as well as
strengthening of organizational systems. Furthermore, in order to promote the creation of projects
corresponding to local needs and continuous involvement, the government will move to “package”
together technology transfer with human resource development.
・The government will strategically promote the establishment of legal systems and regulations inpartner countries, as well as the international standardization of fields that Japan has an edge in andfields with future potential, such as disaster risk reduction and digital technology.
b) Establishment of a rule-based, free and fair economic order(Reform of the World Trade Organization (WTO))・In response to the spread of novel coronavirus infections, the government will work in cooperation
with other concerned countries on WTO reforms, including the establishment of rules in new fields
that contribute to the revitalization of international trade and investment, such as e-commerce andinvestment facilitation, reform of dispute settlement procedures, and reform of the WTO including
strengthening of reporting and enhancement of transparency. The aim of these efforts is to build arisk-resilient international economic structure, such as the strengthening of resilience of the global
supply-chain, and to ensure proactive and stable overseas expansion by Japanese corporations.
(Economic partnership negotiations)・With the aim of signing the Regional Comprehensive Economic Partnership (RCEP) agreement,
which is currently being negotiated, within the year and realizing its early entering into force, thegovernment will work quickly to build a Japan-UK economic partnership. It will promote,strategically and with a sense of urgency, other economic partnership negotiations including theJapan-Turkey EPA and Japan-China-Republic of Korea FTA. In addition, it will also advance120

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discussions on increasing the number of countries and areas participating in the TPP11. It will also
promote the utilization of EPA in Japan.
(Investment-related agreements)
・While aiming for the early conclusion of quality agreement on investment-related agreements thatare under negotiation, the government will continue to actively advance negotiations on investmentrelated agreements with countries that are not yet parties to such agreements with Japan, such as
Central Asia, Latin America, and Africa, while at the same time responding to concrete needs ofbusiness circles and conditions in the partner countries.
c) Support of the overseas business expansion of medium-sized enterprises and SMEs
While continuing with measures on the overseas business expansion of medium-sized enterprises
and SMEs, the government will advance reviews on new KPI at an early stage and reach aconclusion in FY2020.
(Market development support, human resources and financial support)
・The government will strengthen support from the formulation of plans to the completion of businessnegotiations and commercialization, with a focus on the “Consortium for New Export Nations” and“Support Platform for Overseas Expansion by SMEs”. It will strive to strengthen corporate support
capacity through mutual understanding of supporting organizations of the consortium across Japan,
uncover micro, small and medium-sized enterprises in the regions, and implement effective andefficient support to such companies.
・Through the “Japan Mall” at major EC sites overseas setting up by JETRO, the government hascommenced cooperation with EC sites that handle BtoB products. It will also promote the utilizationof private-sector services such as overseas crowdfunding and EC sites, and experts who are familiar
with the local conditions of the target regions for overseas business expansion.
・The government aims to recruit as well as support new business model demonstration projects byprivate-sector business operators that aim to expand exports autonomously by micro, small andmedium-sized enterprises in the regions, and which support such initiatives.
・With the aim of establishing, nationwide, relearning frameworks that enable SME managers tosystematically acquire the requisite management skills and approaches and knowhow forinternationalization, the government will engage in reviews with experts with a view to establishingconcrete systems by FY2021.
(Support for overseas expansion)・Based on discussions conducted in the Japan Business Council for Africa (JBCA) (launched in June2019), and in close cooperation with JICA, JETRO, and private corporations, the government will
strengthen overseas expansion to regions including Africa, while also utilizing ODA.
・By expanding the subjects for reinsurance underwriting for NEXI based on the revised Act for the
Enforcement of the Trade Insurance and Investment Act, the government will encourage insurance121Provisional Translationcompanies from the private sector to enter new insurance service sectors related to overseas
investment, as well as promote overseas expansion by micro, small and medium-sized enterprises
across Japan.
・Toward the revitalization of international arbitration, the government will actively utilize exclusive
arbitration facilities, while striving to disseminate externally the revised Act on Special Measuresconcerning the Handling of Legal Services by Foreign Lawyers56. At the same time, it will accelerate
the review of revisions to arbitration-related legal systems.
3. Measures to make use of Japan’s charma) Promotion of Foreign Direct Investment
・In addition to deciding on the policies for formulating the Medium and Long-term Strategy for
Promoting Foreign Direct Investment in Japan 2021, the government will formulate the strategy
including KPIs for the next term, by the start of FY2021.
・The government will build the Open Innovation Platform in FY2020 and attract overseas start-up
companies in the digital sector and other fields. Furthermore, it will promote the matching of regional
micro, small and medium-sized enterprises with foreign companies to bring about third-party
succession and partnerships, as well as M&A.
・With regard to Regional Business Conference, the government will specify priority areas that
correspond with the potential of each region, and convene tour-based conferences that visit multiple
local governments based on the respective themes.
・With a view to the domestic expansion of business by Asian DX corporations, the government will
promote cooperation between Japanese corporations and such corporations, establish the DX
Platform (DXPF), and provide support for matching. It will also compile, in FY2020, best practices
for outward investment methods by Japanese corporations.
・The government aims to convene the Japan Business Conference in FY2021.
・The government will work to speed up the translation of laws and regulations into foreign languages(including the utilization of machine translation), and strengthen the functions of websites for the
publication of translated laws and regulations.
b) Cool Japan・Through the steady implementation of economic policies, the government will put effort into
ensuring the continued survival of “Cool Japan” sectors (“Cool Japan” will be referred to as “CJ”

The establishment of provisions for representation regarding procedures in international arbitration cases and international
mediation cases, and the easing of requirements for professional experience, will be enforced on a date three months from thedate of promulgation (May 29, 2020). The establishment of joint corporation systems for lawyers and foreign lawyers registeredin Japan will be enforced on a date stipulated by government ordinance, not exceeding 2 years and six months from the date ofpromulgation.
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hereafter) that have been severely impacted by the novel coronavirus pandemic, such as restaurant
business, tourism, culture and arts, and event and entertainment. At the same time, it will survey andanalyze the impact of the novel coronavirus pandemic on aspects of society and human behavior andrebuild the CJ Strategy.
・In promoting the CJ Strategy (decided by the Intellectual Property Strategy Headquarters on
September 3, 2019), the relevant ministries and agencies will cooperate through the CJ Strategy
Council and effectively utilize existing measures, while paying attention to ensuring flexibility,
global perspectives, securing sustainability, and strengthening publicity, to create and promote bestpractices in specific areas such as food, culture, national parks, nishikigoi (colored carp), and shinise(long-established businesses)..
・To apply Japan’s appeal to promoting exports and inbound tourism, the government will utilize theoverseas bases of organizations such as foreign diplomatic missions, Japan House, the JapanFoundation, and JETRO, projects such as the Japan Cultural Expo, and funds provided by the CJ
Fund.
・Toward the expansion of export of liquors produced in Japan, the government will promote branding
including the evaluation of cultural value and the application of the geographical indication (GI)system, provide support for market development, carry out international promotions, and provide
technological support for the development of new products. In addition, it will also promote brewery
tourism with a view to realizing synergistic effect with inbound tourism. Surveys will be launched
in FY2020 toward the registration of Japanese sake as a UNESCO Intangible Cultural Heritage.
・To enhance the value of corporate brands of small and medium-sized enterprises, the government
will promote publicity initiatives that make use of films with a narrative, and create new content
distribution markets. In addition, from the perspectives of developing overseas markets such as
content-related industries, as well as strengthening the communicative potential of regional contents
to trigger market development for local industries and expand inbound tourism, the government will
provide support for the convention of international trade fairs and the overseas expansion ofbroadcasting contents. Furthermore, in order to help content-related industries make the shift towarda sustainable industry structure, the government will consider building an autonomous frameworkin the industry with a view to optimizing transactions related to production and enhancing theemployment environment.
・The government will formulate guidelines for location shoots and filming summarizing licensing
and other necessary information, and put effort into disseminating these guidelines to the relevant
stakeholders. Effort will also be made to share knowhow with a focus on film commissions that havea proven track record. Furthermore, based on the systems of each country the government will
advance reviews of measures to attract location shoots, including the mobilization of funds, so as tocontribute to the promotion of the film industry through human resource development, regional

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revitalization, and increase in inbound tourism.
・The government will establish the necessary environment to realize the sound and multifaceted
development of e-sports, which has gained increasing attention for its market growth and social
significance in areas of regional revitalization and social welfare.
・With regard to the CJ Public-Private Partnership Platform, the government will further revitalize itthrough means such as networking the relevant stakeholders and strengthening publicity through the
CJ Ambassadors. It will also accelerate preparations toward the establishment of the necessaryorganizations to that end.
c) Preparation for the 2025 World Exposision (EXPO 2025 Osaka, Kansai, Japan)
・Based on the theme of “Designing Future Society for Our Lives,” the government will approacheach country directly to call for participation in the Expo upon approval of the Expo plans by the
Bureau International des Expositions (BIE). Furthermore, in order to realize Society 5.0 based on
the concept of “People’s Living Lab” (PLL), the government will work toward the realization ofprojects recruited from private-sector corporations and other entities.
ⅺ) Promotion of active participation by foreign nationals
1. Promotion to accept highly-skilled foreign professionalsa) Cross-Government approaches to promote employment of foreign students etc. in Japan, andpromote their continued activity after employment
・The government will enhance the dissemination of a wide range of information for the recruitment
and success of highly-skilled foreign professionals, in cooperation with the relevant ministries andagencies under the platform for promotion of active participation by highly-skilled foreign
professionals. In addition to increasing the number of experts to provide accompanying support tomicro, small and medium-sized enterprises in the regions, the government will also formulate in
FY2020 teaching materials to promote continued activity after employment as well as guidance
curriculum for supporting agencies.
・For economic organizations, corporations, and universities, based on “the Handbook for the
Employment of International Students and Empowerment after Hiring”, the government willencourage recruitment and selection tests corresponding to the wide range of Japanese proficiency
levels and expertise required for the respective jobs, and actively promote the dissemination of
information. In addition, it will also implement, in FY2020, surveys to promote effective
communication between Japanese employees and foreign professionals.
・To provide consistent support to foreign students for employment in Japan, from the early stages of
their studies in Japan, the government will strengthen cooperation through the conclusion ofcooperative agreements between universities and Employment Security Bureau (Hello Work) in124

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FY2020.
・ To effectively and efficiently implement measures related to promoting the employment ofinternational students and the acceptance of highly skilled foreign professionals, the government will
provide consultation services for foreign nationals and provide information related to internships andother matters, through the Foreign Residents Support Center (opened in July 2020), which integrates
the relevant departments of the relevant administrative agencies and other organizations.
b) Enhancement of educational programs
・With the aim of promoting employment of foreign students in Japan, the government will launch, an
educational program for foreign students, accredited by MEXT and formulated by universities incooperation with corporations and other organizations in FY2020. This system will also be expanded
nationwide.
・Based on the basic policy for the comprehensive and effective promotion of measures on the
promotion of Japanese language education (Cabinet decision on June 23, 2020), the government will
promote measures for securing opportunities for Japanese language education and raising its quality.
Reviews and preparations will be advanced in FY2020 on the establishment of new qualifications
to certify the skills of Japanese language teachers, with a view to submitting a bill at the next ordinary
session of the Diet.
・While enhancing the contents of support for Japanese language instruction to children of foreign
professionals, the government will formulate guidelines to promote school attendance in FY2020. A
review will also be conducted in FY2020 on the strengthening of cooperative systems withcorporations and other organizations in vocational schools, and on enhancing the educational system
for foreingn students.
・The government will validate 300,000 Foreign Students Plan, and based on the results, conduct a
review of the future measures for accepting foreign students and reach a conclusion in FY2020.
c) Review and awareness-raising of immigration and residence control systems
・ In addition to publicizing and raising awareness of “the Project for Encouraging Foreign
Entrepreneurs to Start Business by foreign nationals”, foreign nationals who have graduated fromJapanese universities, etc. and who fulfill certain criteria are targeted to receive information on the“Designated Activities” visa (measures will be set out in FY2020) that allows them to reside inJapan for up to 2 years to engage in start-up activities.
・With regard to civil disputes in Japan in which foreign nationals are concerned parties, in order toenable foreign nationals to make appropriate use of judicial services, the government will advanceinitiatives such as the adoption of IT equipment to provide multilingual support in legal consultations
at the Japan Legal Support Center in FY2020.
・In light of the impact of the spread of novel coronavirus infections, the government will flexibly

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permit the renewal of residence period for foreign nationals, including international students, who
are unable to return to their home countries, and the change of status of residence.
2. Strengthening of the residence management infrastructure and developing online proceduresfor status of residence
・To accurately and continuously capture information on the status of acceptance of foreign nationals,
the government will commence the development of a database system of host organizations in 2020,
which will realize the management of information pertaining to foreign students and workers, basedon their host organizations.
・With regard to procedures for application for status of residence, in order to expand and promote
procedures that can be completed without contact or in-person meetings from the perspective offurther enhancing convenience and preventing the spread of novel coronavirus infection, thegovernment will swiftly and successively expand the scope of online applications that are currently
only accepted through designated organizations.

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7. Maintaining Regional Instructure and Improving SME and Small Business Productivity(1) Major progress in achieving KPI[KPI] Improve added value per employee of SMEs by 5% in the next 5 years (by 2025)[KPI] Aim to increase the number of companies growing from SME to medium-sizedenterprise to more than 400 companies per year.
[KPI] Raise the total factors in productivity of SMEs by 5% in the next 5 years (by 2025).
[KPI] Aim to bring the percentage of start-ups to the level of U.S./UK (about 10%).
⇒FY2018: Start-up rate of 4.4% (FY2017: 5.6%)[KPI] Increase the ratio of SMEs’ direct export or direct investment to overseas by 10% in
the next 5 years (by 2025).
[KPI] By 2030, Japan ranks first among the G20 in the World Bank’s ranking for businessenvironment.
⇒Japan ranked eighth among the G20 at the time of the announcement of the ranking in
October 2019 (one position higher than in the previous year)(2) New specific measures to be takenⅰ) Maintaining regional infrastructure
1. Enacting exemptions to the Act on Prohibition of Private Monopolization and Maintenance ofFair Trade (shared buses, regional banks)
Amidst a declining population, exemptions to the Act on Prohibition of Private Monopolizationand Maintenance of Fair Trade will be enacted in order to maintain services of specified regional
infrastructure (shared bus operators and regional banks) into the future. There are also some who
argue that this is positioned as a strategic review of competition policy in order to truly improve
convenience for residents. In consideration of these points, these exceptions should be operated inclose cooperation with relevant ministries and according to the purposes of the exemptions.
・In addition to enacting governmental ministerial ordinances and guidelines for enforcing these
exemptions, greater predictability for stakeholders will be ensured through the cooperation of related
ministries and agencies in response to prior consultations from specified regional infrastructurecompanies regarding application of the law.
・Regional banks in particular will be strongly urged to strengthen their management capability
intensively and at an early date within 10 years, which is the deadline for the special exemptions inquestion, so as to improve efficiency, productivity, and service quality, including those related tomergers.
2. Early realization of the Super City Concept
・Japan will work towards early realization of the "Super City" concept, aiming for a "Future City in127

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Whole" that utilizes AI and big data to lead the world and be a front-runner in realizing a life of the
future, and will hold an open call for super city applicants, based on the revised National StrategicSpecial Zones Act, and super cities will be designated during 2020 at the latest. After designating
cities, the National Strategic Special Zones Committee will promptly propose a basic concept,
including cutting-edge services and regulatory reform across multiple fields such as telemedicine,
education, and autonomous driving, etc. The various ministries will also focus on early realizationof the concepts, such as by promoting concentrated investment in businesses. Through this process,measures against COVID-19, such as non-face-to-face meetings and automation, will be promoted.
・Toward the early establishment of a foundation for data linkages in cities selected under the Super
City concept, the government will quickly implement the survey and design of core elements of thefoundation, develop systems, and provide support for smooth operation.
ⅱ) Improving SME and small business productivity
1. Coexistence and mutual prosperity of large businesses and SMEs
・There is a need to rebuild the coexistence and mutual prosperity relationship between large
companies and SMEs, moving from having large companies unilaterally forcing subcontractors to
reduce costs to having large companies work together with SMEs to create new value, such as
through digitization.
・The Promotion Standards based on the Act on the Promotion of Subcontracting Small and Mediumsized Enterprises clearly state that parents companies should cooperate with subcontractors whomake efforts to increase productivity, etc., but the main focus is on cooperation with directtransactional partners (primary subcontractors) and there is little encouragement for secondary
subcontractors and below. In addition, referring to the Promotion Standards, action plans for
optimizing transactions have been formulated on an industry group basis, but the efforts of individualcompanies are buried through just such industry specific efforts, and there may also be challenges
that are spread out across all industries.
・Based on these efforts, and aiming to build relationships where large companies and SMEs can growtogether and where individual companies comply with each item (For example, cooperate inincreasing productivity of business partners and consider the effect of increased labor costs onequivalent costs in transactions) specified in the Promotion Standards, a "Partnership Construction
Declaration" mechanism was introduced which states that the added value of the entire supply chain
will be increased, starting with digitalization, not just stopping at the primary subcontractor but also
including secondary subcontractors and below. A mechanism will be introduced to create lists of thedeclaration status of each company, and this will encourage many companies to create declarations.
・The government will strengthen the functions of subcontracting agents through means such as theappointment of professionals specializing in intellectual property, for example, in order to better128

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capture the actual situation of transactions.
・Strict measures will be taken based on the Act on Prohibition of Private Monopolization and
Maintenance of Fair Trade and the Act against Delay in Payment of Subcontract Proceeds, Etc. to
Subcontractors, to prevent parent companies from unfairly shifting the burden from the impact of
the novel coronavirus pandemic to subcontractors.
・The protection of intellectual property rights and knowhow pertaining to subcontract transactions, aswell as the prevention of the shifting on of losses accompanying work style reform, are positioned
as priority issues, and effort will be made to further strengthen initiatives toward optimizing
transactions through the creation and dissemination of contract templates, including the
aforementioned.
2. Optimizing individual transactions between large companies and subcontractors
・The Promotion Standards stipulate that equivalent costs in a transaction "shall be decided by thesubcontractor and the contracting organization after sufficient consultation," but there are somesubcontractors who have been unable to request consultation with their contracting organization. The
relevant ministries and agencies, in order to optimize individual transactions between large
companies and subcontractors, will cooperate to rectify transaction and business practices via
Promotion Standards based guidance and advice provided by ministers with jurisdiction.
3. Development of an environment to promote the growth of SMEs
・The government will encourage SMEs to expand their scale of business, raise productivity, and growto medium-sized or larger enterprises, in order to facilitate support corresponding to the stages of
their growth. In addition, the government will coordinate the target scope of policies for SMEs in
FY2020 and review the necessary measures.
・In addition to encouraging companies that drive the future of the regions to set regional targets in
FY2020, the government will also provide focused support for initiatives toward the attainment of
the targets. It will also promote growth and future offering of stock to the public based on theprovisions for “deemed SMEs,” newly incorporated into the Act on the Promotion of the Growth of
SMEs57. Furthermore, support will be provided for the establishment of methods for SMEs within
and outside the regions to cooperate and develop sustainable business models for resolving social
issues that are common to multiple regions.
・With regard to public procurement, initiatives will be advanced to increase opportunities for SMEs
and small businesses to receive orders under fair conditions.

With the exception of some provisions, enforced on a date stipulated by government ordinance, not exceeding six months
from June 19, 2020.
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4. Support for digital implementation to improve SME and small business productivity
・Frameworks will be built for the continuous implementation, over several years, of support for capital
investment to develop innovative products and services in FY2020 through the full utilization of the
SME Productivity Reform Promotion Project, support for market development focused on small
businesses, and support for the adoption of IT tools, and for enhancing productivity.
・The basic policy for the Small and Medium-sized Enterprises Business Enhancement Act will berevised, and contents related to the utilization of IT for raising SME productivity will be enhanced.
In addition, the revision of the policy for each sector will also be considered in FY2020, based on
the implementation status and other factors.
・A total of 600 human resources, capable of solving problems such as the management issues of SMEs
by using AI, will be nurtured in FY2020 through the problem-solving AI human resource
development program.
・Guidelines on the adoption of AI, which sets out the methods for adoption of AI by SMEs in an easyto-understand manner, will be compiled in FY2020.
・Alongside with promoting the development of user-friendly and low-cost cloud services for SMEs,
the government will also promote the utilization of grants for the adoption of IT with cloud services
as an element for additional points, through the organization and presentation of examples ofimproved productivity, as well as the utilization of the “digitization support team project,” throughwhich IT experts follow and support SMEs.
・Projects will be launched by the summer of 2020 to promote all-round improvements in productivity.
These include the project to promote advanced collaboration between manufacturing, commerce,and services, which promotes the creation of private-sector services that support the grouping ofmultiple SMEs to formulate digital transformation plans, as well as projects that create new added
value through the sharing of data by multiple SMEs.
・Based on the revised Promotion Standards of the Act on the Promotion of Subcontracting Small andMedium-sized Enterprises, the competent ministry will encourage parent companies, which benefit
most from the electronification of transactions between companies, to provide support for companies
across the whole of the supply-chain, including the second-tier subcontractor and below, to improve
productivity through the electronification of transactions in ways such as electronic data interchange(EDI) common to SMEs and utilization of ZEDI, which is also promoted by the financial circles.
・Based on the adoption of the “invox” system in 2023 and the conclusion of the ISDN digitalcommunications mode in 2024, urgent steps will be taken to introduce systems for the issuance of
eligible invoices by SMEs through the utilization of grants for the adoption of IT and other subsidies,and to review exclusive EDI in individual industrial groupings, so as to overhaul the utilization ofcompany-wide data by SMEs.
・With regard to ensuring cybersecurity, the government will designate the focused targets forprotection in the supply-chain in FY2020, and create systems to visualize SMEs that are130

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implementing the necessary measures.
・In light of the impact of the novel coronavirus pandemic, effort will be made to support the
introduction of telecommunications equipment related to teleworking, and to enhance consultation
systems, so as to contribute to raising productivity and creating an environment where all SMEs witha desire to introduce teleworking can put it into practice.
5. Promoting smooth regeneration and business restructuring to improve productivity
・To promote business mergers and restructuring for improving SME and small business productivity,
the government will present comprehensive support measures in FY2020, including budgets andtax systems.
・ Cooperation between “business succession support centers” and M&A intermediaries andplatformers from the private sector will be strengthened to revitalize the M&A market for SMEs. In
FY2020, the number of registered organizations for such centers will be increased by about 100 fromthe current 496.
・Through complete compliance by the relevant industries with the M&A Guidelines for SMEs,
published in March 2020, the government will promote the creation of an optimal competition
environment among M&A intermediaries, appropriate response to conflict of interest that may arise
during intermediary transactions, and the optimization of intermediary fees.
・To boost the growth of SMEs and small businesses after business restructuring, support measures tofacilitate the acceptance of external management personnel will be strengthened in FY2021.
・The government will promote the utilization of business succession tax systems that promote
regeneration, including the alternation of generations, while boosting smooth business succession
and maintaining the business. In addition, the government will support new initiatives such as
venture businesses through business succession subsidies. Furthermore, based on theComprehensive Package for Supporting Third-Party Succession, the government will provide strong
support for third-party succession among SMEs and small businesses with no successors.
・The government will integrate the functions of the business succession support centers, which
support third-party succession, and the business succession networks, which support succession
within family, in FY2021, and establish a one-stop system to support third-party succession andsuccession within family.
・With support from the Organization for Small & Medium Enterprises and Regional Innovation, thegovernment will promote the establishment of a public-private partnership fund, and theregeneration and business restructuring of core SMEs and small businesses in the region. A decision
will also be made on about five projects in FY2020.
・Responses and measures by business succession support centers to ensure that valuable management
resources, such as the technology and employment of SMEs and small businesses that areconsidering closing their businesses, will be passed on to the next generation, will be enhanced in131Provisional Translation
FY2020.
・The government will promote the application of the special provisions for the guidelines on guarantee
by business operators, which place the focus on business succession, and which began operation in
April 2020. Experts will verify the management status in line with the requirements of theseguidelines, such as new credit guarantee systems that do not require guarantee by business operators
under specific conditions during business succession, and the separation of the assets and accountsof the corporation and the business operator with a view to cancelling the business operator’sguarantee during business succession, and provide support to improve management. Through such
systems, the government promotes loans that are not dependent upon the business operator’sguarantee during business succession. Furthermore, the rate of guarantee requested for duringbusiness succession in government affiliated or private-sector financial institutions, will be publishedin a list form, categorized by the respective financial institutions. Its effectiveness is enhanced
through the analysis and utilization of information obtained through the expert support system,
among others.
・The government will strengthen support for entrepreneurship, such as by promoting cooperation withprivate-sector corporations that support business creation, and supplying risk money by promoting
the use of crowdfunding, “angel tax systems” that provide seamless support for the procurement of
the funds necessary for expansion from the point of the launch of the business, and tax systems topromote open innovation.
・ The government will enhance effectiveness of entrepreneurship support offered by local
governments and financial institutions, by carrying out reviews that take into account the actual
situation in the regions. It will also promote entrepreneur education, such as briefings delivered byexperienced entrepreneurs at educational institutions.
・To promote entrepreneurship in the regions, the government will conduct a review on frameworks
that enable diverse personnel with strong motivation to contribute to the local community, to gain a
new venue for their activities at SMEs and venture companies and realize them in FY2020.
・By contributing to the creation of value of regional SMEs and small businesses, and to improving
their productivity, the government will promote the utilization of the advanced human resource
matching program by regional financial institutions, so as to facilitate the creation of sustainablevalues and development of business models by regional financial institutions together with client
corporations. It will also share excellent case studies at the Re:ing/SUM (Regional Banking Summit)that will be newly convened in 2020.
・By drawing up lists of human resources with specialized experience in major banks, etc., and having
the lists managed by the Regional Economy Vitalization Corporation of Japan, as well as theimplementation of matching activities, the government will realize smooth movement ofmanagement personnel as well as side businesses and side jobs, while at the same time, support thestrengthening of SMEs’ management capacity through funds and loans, in a way that meets the needs

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Provisional Translationof SMEs in the regions.
・To strengthen support from regional financial institutions to improve the productivity of SMEs, thegovernment will promote the transfer of knowhow as well as the further utilization of the Regional
Economy Vitalization Corporation of Japan. The Regional Economy Vitalization Corporation ofJapan will also provide support through the utilization of business restructuring frameworks aimed
at improving the management of main micro, small, and medium-sized enterprises in the regions
whose financial bases have temporarily deteriorated from the impact of the novel coronavirus
pandemic, and supply capital funds through funding procured in cooperation with regional financial
institutions.
・To promote the growth of micro, small and medium-sized enterprises in the regions, the government
will share knowhow and engage in human resource development, through joint investment with
regional financial institutions and the utilization of DBJ’s specified investment work. It will also
nurture those who can take up the responsibility of supply risk money, which creates new businesses
and markets in the regions.
・The government will revise the guidelines on debt consolidation due to natural disasters, so as toprovide support for debt consolidation among sole proprietors that have been impacted by the novel
coronavirus pandemic.
・The government will conduct a review on the target indicators for policies related to the service
industry, including SMEs, based on the relationship of various factors that contribute to improving
productivity with industry policy, characteristics of each industry, and the impact that the novel
coronavirus pandemic, and reach a conclusion in FY2020.
・While assessing the situation of the novel coronavirus pandemic, the government will implement the“Go To Shotengai” campaign. In this campaign, the government will implement initiatives aimed atbringing back the bustle of shopping districts across Japan, including event campaigns, promotions,and development of tourism products, while at the same time putting in place thorough measures toprevent the spread of infection.
6. Promoting overseas expansion and strengthening the resilience of supply-chains in and out of
Japan・The government will employ new tools, such as cross-border electronic transactions and overseas
crowdfunding, to strengthen support to SMEs engaged in overseas expansion through thedevelopment of prototypes and brands optimized for foreign markets.
・ A review will be conducted on relearning measures that will enable business operators tosystematically acquire the skills and knowhow necessary for overseas expansion of their businesses,
and will be realized in FY2021, to draw out SMEs across Japan that can tackle the challenge ofoverseas markets.
・Due to the impact of the novel coronavirus pandemic, the government will promote efforts to133

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strengthen the resilience of supply-chains in and out of Japan, such as by establishing new production
bases or expanding existing ones through domestic investment promotion projects for medical
supplies industries with inadequate domestic supplies and parts industries facing supply issues, andby supporting the introduction of facilities. The government will also provide support for the review
and creation of business models for regional corporations.
ⅲ) Strengthening of regional measures in the face of population decline
1. Regional revitalization that realizes a “new normal for everyday life”
・Due to the spread of the infectious disease, there is growing recognition that it is possible to engage
in work without being constrained by the physical location, through means such as telework. Suchmoves expand the activity spaces for diverse human resources and contribute to improving added
value and productivity. At the same time, they also expand the potential for relocating to the regions.
To promote regional revitalization that realizes a “new normal for everyday life,” the government
will capture the opportunity of growing interest in the Tokyo Metropolitan region for relocating to
the regions, to dramatically change the trend of concentration in Tokyo, with its high risk of being
struck by disaster, through means such as the promotion of “smart cities.” At the same time, thegovernment will also build resilient and autonomous regional economies by maximizing the use ofresources that the regions take pride in, in areas such as tourism and agriculture, forestry and fishery.
2. Supply of human resources to the regions
・To secure the specialized human resources who are needed for resolving management issues ofbusiness entities that support the regions, the government will provide support for about 1,000“advanced human resource matching projects” in FY2020. In these projects, implemented incooperation with employment agencies, regional financial institutions and other entities conduct
surveys and analyze the human resource needs of regional corporations. In addition, the government
will also encourage regional financial institutions, etc. to exert their comprehensive consulting
functions.
3. Revitalization of regions facing drastic population decline・With regard to the Cooperative for the Specific Region Development Program, established based on
the Act on the Promotion of Specific Region Development for Regions with Drastic Population
Decline, enforced in June 2020, the government will provide support for smooth establishment andmanagement in cooperation with regional business organizations, through means such as funding
measures and the convention of briefing sessions for local governments. The aim is to develop
regions for the stable employment and dispatch of human resources working for multiple business
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employment year-round by the business unit and enable such regions to function as base camps forhuman resources.
ⅳ) Promotion of National Strategic Special Zones
With regard to the National Strategic Special Zone system, the government will continue to work
intensively on the reform of “bedrock” regulations, With regard to the results for special zones witha high degree of economic effects, no particular ill effects, and for which a certain period of time has
passed since the application of special measures, the government will accelerate nationwide roll-out,such as the focused advancement of reviews toward nationwide roll-out.
Based upon the foundation of the National Strategic Special Zone system, the government willbring about the early realization of the “Super City” vision, which aims to utilize AI and Big Datawith the aim of creating a whole future city that realizes future living ahead of the rest of the world,
as well as the early application of the region-limited sandbox system.
1. Early realization of the Super City concept <reposted>
・Japan will work towards early realization of the "Super City" concept, aiming for a "Future City in
Whole" that utilizes AI and big data to lead the world and be a front-runner in realizing a life of the
future, and will hold an open call for super city applicants, based on the revised National StrategicSpecial Zones Act, and super cities will be designated during 2020 at the latest. After designating
cities, the National Strategic Special Zones Committee will promptly propose a basic concept,
including cutting-edge services and regulatory reform across multiple fields such as telemedicine,
education, and autonomous driving, etc. The various ministries will also focus on early realizationof the concepts, such as by promoting concentrated investment in businesses. Through this process,measures against COVID-19, such as non-face-to-face meetings and automation, will be promoted.
・Toward the early establishment of a foundation for data linkages in cities selected under the Super
City concept, the government will quickly implement the survey and design of core elements of thefoundation, develop systems, and provide support for smooth operation.
2. Promoting regulatory reform that supports the “new normal for everyday life”a) Continuous implementation of temporary special measures related to telemedicine
・In light of the concrete needs and issues that were thrown up in the process of establishing the “newnormal for everyday life,” based on the assumption of the novel coronavirus pandemic, thegovernment will conduct a review, with 2020 as the initial target schedule, on the required measuresthat should be established in medical settings, among the handling of administrative communication
by MHLW on April 10, 2020, including response from the initial diagnosis of seasonal influenza,
which becomes an issue every winter.

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Provisional Translationb) Response to remote education
・Firstly, the government will work intensively on creating environments where remote education canbe conducted. At the same time, while assessing the actual situation on site, including the status ofchildren and students, the government will put in place the necessary measures through MEXT.
c) Lifting of ban on wage payment using digital money (payment to fund transfer specialists)
・With regard to payment of wages to accounts of fund transfer specialists, alongside with establishing
schemes such as systems that guarantee payment of an adequate amount to workers quickly in theevent of the collapse of the fund transfer specialist, so as to protect workers and ensure that theyreceive payments, the government will also establish institutionalize systems as soon as possible in
FY2020 upon consultation with employer and worker organizations. At the same time, thegovernment will also monitor risks such as money laundering, while referring to the examples ofother countries.
d) Other necessary regulatory reforms for the “new normal for everyday life”
・Toward the review of administrative procedures to avoid the “three Cs,” including bringing various
procedures online, the needs of local governments will be carefully examined, and the National
Strategic Special Zones Advisory Council will conduct an intensive review in coordination with theRegulatory Reform Promotion Council.
3. Further addition of regulatory reform itemsa) Exceptions for acquisition of farmland by corporations
・With regard to the corporate farmland acquisition program that is being utilized in Yabu City,
Hyogo Prefecture, the government will conduct a review on the treatment of exceptions to ensurethat it can meet the deadline for exceptions in August 2021, based on the actual results during theperiod.
b) Review of regulations for small mobility devices that fulfill diverse mobility needs
・Of the mobility devices that are small and highly flexible, and which support human mobility,with regard to electric-powered kickboards, the government will urgently commence projects todemonstrate travel zones and vehicle safety standards, while fully ensuring the safety and comfort
of various traffic entities including pedestrians.
・In addition, with regard to all small mobility devices as a whole, based on factors such as
demonstration tests, international trends, and the needs of users, the government will urgently
commence reviews, including the need to revise systems, on the approach to traffic rules such as
driver requirements, safety measures, and vehicle classification, in addition to travel zones and136

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vehicle safety standards, while fully ensuring the safety and comfort of various traffic entities
including pedestrians. In particular, a conclusion will be reached in the first half of 2021 on special
measures for driver requirements, based on the Act on National Strategic Special Zones.
c) Utilization of mounted mobility support robots on roads in relation to infrastructure
inspections
・To enhance the efficiency of infrastructure inspections, the government will consider the safety
put in place by operators, contents of the operation, and vehicle safety standards, so as to enable
the use of mounted mobility support robots on roads with permission to use the roads in gasrelated operations, while ensuring traffic safety for pedestrians and other road users. A conclusion
will be reached as soon as possible in FY2020.
d) Review of the scope of treatment of cleaning services using lockers
・To make it easier for users and operators to interact via lockers, with regard to the cleaning ofitems that require sterilization (designated laundry items), a review will be conducted, andconclusion reached in FY2020 on reviewing the treatment of lockers for designated laundry items,
based on the condition that local governments confirm that the appropriate measures are put inplace to manage locker hygiene, protect consumers and prevent the spread of infection.
e) Promoting the acquisition of childcare leave by men
・To ensure proper employment during childcare leave, the government will organize cases related
to temporary employment during childcare leave period and the objectives of childcare leave, anddisseminate this information in 2020.
f) Review of the approach to status of residence for same-sex partners of foreign nationals,
toward promoting the acceptance of highly skilled professionals
・From the perspective of accelerating the entry of foreign financial companies, etc. into Japan, thegovernment will continue to review the approach to the status of residence for same-sex partners
of foreign nationals.

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