Provisional Translation

Emergency Economic Measures to Cope with
the Novel Coronavirus (COVID-19)～Thoroughly secure people’s lives and movetoward economic revitalization～

April 20, 20201

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Table of Contents
Chapter 1 Current Conjuncture of the Economy and Basic Concept of the Economic
Measures ......................................................................................................................... 4
I. Current Conjuncture of the Economy ...........................................................4
II. Basic Concept of the Economic Measures ...................................................6
Chapter 2 Measures to Implement ................................................................................. 11
I. Measures to Prevent the Spread of the Disease, Build Medical Treatment
Structures, and Develop Pharmaceuticals ......................................................... 11
1. Secure Supply of Masks and Disinfectants .............................................13
2. Enhance Testing System and Achieve Early Detection of the Disease ......14
3. Strengthen Medical Care Supply Systems .............................................14
4. Accelerate the Development of Therapeutic and Vaccines ......................20
5. Increase Capacity to Cope with Japanese People Returning from
Abroad ........................................................................................................21
6. Strengthen Public Relations ..................................................................22
7. International Cooperation such as Contribution to Emergency Assistanceto Infected Countries....................................................................................23
8. Support Families with Children amid Tentative Closure of Schools .......23
II. Protecting Employment and Keeping Businesses Viable............................24
1. Secure Employment ..............................................................................24
2. Financial Measures ...............................................................................26
3. Support for SMEs and Small Enterprises Facing Difficulties in Continuing
Their Business .............................................................................................28
4. Support Individuals Facing Difficulties in Daily Lives ...........................30
5. Tax Measures .......................................................................................32
III. Recovery of Economic Activities through Public and Private Cooperation as
the Next Phase .................................................................................................33
1. Support Affected Sectors, such as Tourism and Transportation, Food
Service, Event and Entertainment Business ..................................................34
2. Revitalize Regional Economy ................................................................35
IV. Making Economic Structure More Resilient .............................................37
1. Enhancing the Resilience of Supply Chain.............................................38
2. Facilitate Overseas Businesses, as well as Strengthening as the Export andDomestic Production Capacities of Agriculture, Forestry and Fishery Products
and Foods ....................................................................................................40
3. 3. Accelerate Digital Transformation by Deploying Remote
Technologies ................................................................................................42
4. Accelerated Implementation of Public Investment .................................46
V. Preparing for the Future ..........................................................................46

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Chapter 1 Current Conjuncture of the Economy andBasic Concept of the Economic Measures
I. Current Conjuncture of the Economy
Development of the Novel Coronavirus Disease
Regarding the novel coronavirus disease (hereinafter referred to as “the disease”
in this chapter), the number of infected people is rapidly increasing mainly in urban areas
including Tokyo, and the number of infected people whose infection route is unknown isalso increasing. Furthermore, the number of patients and deaths have increased rapidly
worldwide, and the number of imported cases detected in Japan is also increasing.
As for the current situation, we are just holding out and if we relax even a little bit,the situation may worsen rapidly at any time. That is, we continue to remain on the “brink”.
In order to secure the lives of the people from this situation, the Government
declared a state of emergency on April 7 under the Act on Special Measures for Pandemic
Influenza and New Infectious Diseases Preparedness and Response. In addition, after
identifying seven prefectures as the areas for taking the emergency measures, on April 16th,
the emergency measures were extended to all prefectures. The central and local
governments and people including medical personnel, experts, and business operators willunite and work together for further strengthening the measures against the novel
coronavirus disease.
Current Conjuncture of the Economy
The disease has a tremendous impact on the domestic and overseas economies,
and the world economy is facing the worst crisis ever in the post WWII era.
The Japanese economy has been greatly pushed to downside by the spread of thedisease, being in a very severe condition that could be called a national crisis. Among thedomestic demand that has supported the recovery so far, private consumption, mainly on

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services, has evaporated because of the suspension of events and voluntary restraint ofouting, which lead also to the deterioration in consumer sentiment. In addition, business
investment flattened even before the spread of the disease due to the slowdown in the
Chinese economy and other factors. Amid this, deterioration of business conditions due tothe effect of the disease and huge uncertainties over the economic prospect have played amajor role in adversely affecting the willingness to invest.
Turning to overseas economies, as the disease has become a pandemic, nonpharmaceutical interventions such as lockdowns and bans on outing have been taken in
European countries and the United States. Against this background, demand has fallen
sharply and supply chain disruption has occurred, resulting in abrupt contraction of global
flow of people and goods. The world GDP growth rate is forecasted to be negative thisyear 1, much worse than in 2009 when the world economy severely deteriorate due to theaftermath of the global financial crisis. If this materializes, it is expected that Japan's overall
exports of goods and services will significantly decrease, in addition to the huge decline in
inbound tourism that has already occurred.
Furthermore, when the pandemic will come to an end is unknown, and severe
economic conditions is expected to continue for some time to come. Attention should bealso paid to further downside risks to the domestic and overseas economies. In addition,
due to the postponement of the 2020 Tokyo Olympic and Paralympic Games for one year
because of the disease, the demand expected to emerge during this year including inboundtourism would be deferred. There are concerns that it will adversely affect the sentiment ofpeople in the regions where the related events were to be held.
Regarding the employment and income environment, which has continued to
improve under Abenomics; while the wage growth declines somewhat from last year inthis spring's negotiations, many companies attempt to maintain wage hike. On the other
hand, the income of part-time workers has been pushed down due to the severe impact ofthe disease. While businesses are trying to protect employment by resorting to the1“World Economic Outlook, April 2020” by the International Monetary Fund (IMF) (published on
April 14, 2020).

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employment adjustment subsidies and other measures, we have already started witnessing
decline in job openings and cancellation of labor dispatch contracts and employment offers
mainly in the industries that are severely affected. In order to achieve a strong economic
recovery after the threat of the virus has subsided, the Government should strongly support
the continuation of business activities and secure employment and livelihoods at any cost.
In addition, output gap, which has remained positive so far, fell into negative
territory (demand shortfall) of -1.5% (about 8 trillion yen in to an annualized amount 2) asof the fourth quarter of last year before the spread of the disease, and seemed to havedeteriorated in the first quarter of this year due to the impact of the disease. Considering
the situation of the global economy, it is expected that the situation will further worsen
after April. We have to prevent the economy falling back into deflation, by taking strong
economic measures commensurate with the magnitude of the enormous impact of thedisease, and ensure revitalizing economy, thereby achieving fiscal consolidation.

II. Basic Concept of the Economic Measures
The Government has promptly taken the necessary measures responding to thesituation through the 1st3 and 2nd4 “Novel Coronavirus Disease (COVID-19) Emergency
Response Package”, “Emergency Measures for Those Who are Worried about Their Daily
Lives” 5 (hereinafter collectively referred to as the “Emergency Reponses”) with the total
size amounting to 2 trillion yen, in order to prevent the spread of the infection and containit at the earliest possible, as well as to put all efforts for protecting employment, keeping
businesses viable, and supporting daily lives of people.
In light of the above-mentioned economic perception, the Government has
2

The estimation by the Cabinet Office. The annualized amount is the output gap if a gap in a certain
quarter continues for one year.
3 Approved by Novel Coronavirus Response Headquarters on February 13, 2020.
4 Approved by Novel Coronavirus Response Headquarters on March 10, 2020.
5 Approved by Novel Coronavirus Response Headquarters on March 18, 2020.

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decided to formulate a new economic package with supplementary budget of FY2020 for
the purpose of overcoming this tremendous crisis, on top of the “Comprehensive Economic
Measures to Create a Future with Security and Growth” 6 (hereinafter referred to as the“Comprehensive Economic Measures”), which were formulated in order to address thedownward risk originating from overseas economies. Taking strong fiscal policy stance
responds to the international agreement 7 to commit to "presenting a united front" at the
G20 Summit, a variety of unprecedented policy measures including budgetary, financial
and tax measures are to be mobilized.
Two Phases to Implement this Economic Measures
The new Economic Measures broadly consists of the following two stages. The
first is the “Emergency Support Phase” until the end of the spread of the disease is in sight.
This stage is for securing employments, business, and daily lives in order to make a strong
effort to resolve the situation early as possible and to pave the way for a strong recovery
thereafter. The second phase is the “V-shaped Recovery Phase” after the threat subsides.
This stage is for stimulating demand and undertaking social structural change toward strong
recovery of economic activities. More forward looking measures will be taken in this stage
to stimulating demand in the severely affected areas such as tourism and transportation,
food service and events, while investment for the future will be promoted throughdigitalization and remote working, etc.
Five Pillars
With these two phases in mind, the Economic Measures taken under thedeclaration of a state of emergency have the following five pillars. Powerful and highly
effective measures will be rolled out with a determined resolution to protect the lives, healthand daily lives of the people.
The first pillar includes the measures to prevent the spread of the disease, build
6

Decided by the Cabinet on December 5, 2019.
March 26, 2020 Statement of G20 Leaders in G20 Leaders Video Conference on New Coronavirus(COVID-19).

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medical treatment structures and develop the pharmaceuticals. The Government willcontinue to do whatever possible to prevent the spread of the disease and contain thesituation at the earliest, thereby addressing the security of the people and restarting the
economic activities as soon as possible. Therefore, along with measures to prevent the
spread of the disease, such as fundamentally strengthening the cluster measures to breakthe chain of the disease, and the swift development of medical supplying system focusing
on medical care for critically ill people in preparation for the rapid increase in the numberof infected, the Government will accelerate developing pharmaceuticals and vaccines, etc.
through intensive research and development.
The second pillar is further strengthening of support for protecting employment
and keeping business viable. Until the end of the spread of the disease, we will protect
employment, business activities and daily lives of people and overcome the crisis, thereby
laying the foundation for a strong economic recovery thereafter. For this reason, various
steps taken under the “Emergency Responses” will be further strengthened, and theGovernment strongly support business operators in their efforts to manage cash flow andmaintain employment by rolling out schemes where they can avail concessional (interestfree) loan from private financial institutions in addition to government affiliated institutions,offering new cash payment to SMEs and small enterprises that are particularly affected,
and making exceptions in terms of deferring the payment of taxes without any late payment
penalty for businesses whose revenue has decreased significantly. For people facing
difficulties in maintaining their daily lives, the Government will take bold support
measures such as offering new cash payment and benefits.
The third pillar is the recovery of economic activities with the concerted efforts ofpublic and private sectors as the next stage. After the spread of the disease is contained, theGovernment takes forward-looking measures for realizing the V-shaped economic recovery
so that the Japanese economy could swiftly return to a solid growth trajectory. For thisreason, focusing on the tourism / transportation industry, the food service industry, and theevents / entertainment industry that have been significantly affected, the Government willroll out large-scale support measures as a campaign by involving the public and private

8sectors in a short-term intensive manner for boldly stimulating the consumption and restore
the vitality of local regions. In so doing, the Government will support the economy in lightof the postponement of demand accompanying the Tokyo Olympic and Paralympic Games.
The fourth pillar is to build a robust economic structure keeping the future in mind.
We should change this crisis caused by the spread of the disease into an opportunity, andbuild a resilient economic and social structure against the risk of new infection in the future,
thereby achieving sustainable growth in the medium to long term. For this reason, theGovernment will provide support to corporate initiatives to enhance the resilience of supply
chains through returning the production bases to Japan and/or diversifying the production
bases beyond certain economies. In addition, the Government will accelerate the efforts forremote operations and digital transformation by using ICT such as work from home (a.k.a.
teleworking), distance education, remote medical treatment and pharmaceutical guidance.
At the same time, the Government will make every effort to support the economy bymaking public investments at the earliest possible.
The fifth pillar is preparation for the future. A special contingency funds formeasures against the novel coronavirus disease will be developed in order to take necessary
measures without hesitation in light of the status of the disease and economic development.
In this way, the Government commits to overcoming the adverse impact of thedisease, moving toward the subsequent V-shaped recovery of the economy and ensuringthat the Japanese economy returns to a sustained growth trajectory, through strategically
executing each policy of the Economic Measures, i.e. rolling out appropriate policy inappropriate timing.
The Economic Measures are based on the proposals made by the ruling parties
and earnest feedback of the people received during the “Intensive interviews about the
impact on the economy of the novel coronavirus disease”. Furthermore, these measures
were formulated after seriously taking the discussions that took place at the Governmentand ruling-opposition liaison council into consideration. The Government will continue tocarefully examine the period until the situation comes under control in Japan and overseas

9and the extent of spread, impact on the economy and people's lives, and will take flexible
and decisive actions as needed without delay, considering various stakeholders’ needs.
The Bank of Japan is taking measures to enhance monetary easing with a view todoing its utmost to ensure smooth corporate financing and maintaining stability in financial
markets. With strong monetary easing measures in place, the Government will implementa powerful fiscal policy based on the Economic Measures to aim an appropriate policy mix
to cope with the economic impact of the Infections. The Government will continue toaddress this difficult situation by sharing a sense of crisis and closely working with the
Bank of Japan.

10Chapter 2 Measures to Implement
Based on the basic concept described in Chapter 1, the Economic Measures arecomprised of the following five pillars: (1) Preventing the spread of the disease, building
medical treatment structures and developing pharmaceuticals, (2) Protecting employment
and keeping business viable, (3) Recovery of the economic activities through public andprivate cooperation as the next phase, (4) Making economic structure more resilient, and(5) Preparing for the Future. Considering the time frame, the Government will strategically
implement the following measures. When implementing the measures, the Government
will closely cooperate with related parties.
Aiming for the revitalization of local society by supporting regional economy andlives of residents as well as preventing the spread of the disease, the Government will set
up “Local Revitalization Grant for the Novel Coronavirus Disease” that will enable local
governments to take necessary measures depending on their circumstances.
At the same time, the Government will disseminate precise information to
Japanese people and other countries in a simple way, not only about the economic measures
but also about the effort and the circumstance relating to the novel coronavirus disease.

I. Measures to Prevent the Spread of the Disease, Build Medical
Treatment Structures, and Develop Pharmaceuticals
It is the most important to stop the spread of the novel coronavirus disease fromthe perspective of economy. In order to protect people’s lives and health, first of all, theGovernment will invest the resources particularly in strengthening the measures to preventthe spread of the disease and remove people’s anxiety of as soon as possible.
With regard to masks, disinfectant solutions and so forth, whose demand havegreatly exceeded those in the average year due to the effect of the novel coronavirus disease,
the Government will secure their sufficient supply volumes and ensure their distribution to
medical institutions and other necessary facilities.

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As the response to the current spread of the disease, in addition to ensuring atesting system in which necessary tests are sure to be performed, while requesting
cooperation to prevent the spread of the disease such as thoroughly ensuring behaviors to
avoid the so-called “Three Cs (Closed spaces, Crowded spaces, Close contact)” 8 , theGovernment will fundamentally strengthen counter-cluster measures to break the chain of
the infection. At the same time, in preparation for a further sudden increase in the numberof infected people, the Government will promptly build medical treatment structures that
focus on medical care for patients with severe symptoms. Regarding these measures toprevent the spread of the disease and the development of medical treatment structures, theGovernment will set up the “Emergency Comprehensive Support Grant for Novel
Coronavirus Disease so that each prefecture can flexibly and dynamically implement
measures required according to the epidemiological situations in the regions.
Since no definitive treatment method exists, there is no choice but to continue
symptomatic treatment patiently if the symptoms appear. This has also caused great anxiety
in the world and the Government will accelerate research and development of therapeutic
medicines and vaccines as the highest priority issue.
By increasing the capacity to accept returnees, strengthening information
dissemination, and promoting international cooperation with infected countries, theGovernment will strive to minimize the risk of the spread of the disease.
The Government will include the budget required for these measures in the
Supplementary Budget for FY2020. Since it is difficult to predict future trends, theGovernment will quickly take the necessary measures such as increasing the abovementioned grants by using “Reserve Fund for New Coronavirus Disease,” which isprepared separately, as needed, considering the infectious situation, the development ofvaccines and so forth.

8“Closed spaces with poor ventilation” “Crowded places with many people nearby” “Close-contact
settings such as close-range conversation”.

121. Secure Supply of Masks and Disinfectants
The Government will support investments of firms that produce masks,
disinfectants and so forth in their production facilities to increase their supply, and will
ensure that the supply exceeds the normal annual demand. For instance, the Government
will secure that more than 700 million masks will be produced per month.
In addition, the Government will distribute sanitary materials such as masks tolong-term care facilities, welfare facilities for the disabled, day care centers and schools.
With regard to cloth masks, the Government will purchase them and sequentially distributethe required quantity of them to long-term care facility users and pregnant women.
Furthermore, the Government will distribute two masks per person to pupils, students, andstaff members of elementary schools, junior high schools, high schools, special needs
schools, technical colleges, etc. all over Japan from April. Moreover, the Government will
distribute two masks per household to more than 50 million households nationwide.
In schools, etc., the Government will improve the hygienic environment andreduce the risk of infectious diseases.

・ Subsidy for setting up production facilities for mask, alcohol based disinfectant
solution, etc. (Ministry of Economy, Trade and Industry (METI))・ Distribution of cloth masks to long-term care facility users and pregnant women(Ministry of Health, Labor and Welfare (MHLW))・ Support for preventing the spread of the disease such as purchasing masks at schools
and child welfare facilities (Ministry of Education, Culture, Sports, Science andTechnology (MEXT), MHLW, Cabinet Office(CAO))
・ Distribution of cloth masks to all households (MHLW)・ Support for improving the hygienic environment at schools (MEXT)
・ Strengthening measures against the novel coronavirus disease in the Self-Defense
Forces, police, and detention facilities (Ministry of Defense (MOD), National Police
Agency(NPA), Ministry of Justice (MOJ))

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Etc.

2. Enhance Testing System and Achieve Early Detection of the Disease
By supporting the introduction of test equipment for PCR 9 tests, the Government
will promote quick testing such as simple testing at testing institutions and medical
institutions enhance the testing capabilities. In addition, the Government will ensure thatpeople can undergo the required novel coronavirus disease test by continuing to pay thepatient copayment incurred on testing. Moreover, in addition to PCR tests, the Government
will develop testing methods such as antibody methods and antigen methods and ensure
the supply of materials necessary for these tests. Under the cooperation of the national andlocal governments, while promptly working on strengthening the system of public healthcenters, the Government will promote the early identification of group infection, so-called
clusters and strive for the early detection of patients and the prevention of aggravation of
the symptoms.

・ Strengthening the quarantine and inspection system by deploying PCR inspection
equipment at quarantine stations nationwide (MHLW)・ Making sure that PCR tests, etc. are conducted by having the Government pay for the
expense to be borne by the individual after applying insurance (MHLW)・ Strengthening the research base for developing and establishing new testing methods(MEXT)
・ System development project to prevent the spread of the disease by genome analysis
of novel coronavirus disease (MHLW)・ Dispatching cluster experts to infected areas (MHLW)
Etc.

3. Strengthen Medical Care Supply Systems
In preparation for a further surge in the number of infected people, theGovernment will quickly build medical treatment structures focusing on the medical
treatment for patients with severe symptoms.
9

Polymerase Chain Reaction. A technique for amplifying DNA fragments.

14

The Government will significantly strengthen medical treatment structures fromthe perspective of both human resources and facilities, including securing available beds
and medical materials such as gown, maintaining medical equipment and ensuring theavailability of specialists and nurses for respiratory diseases. Specifically, the Government
will further increase the number of available beds in designated medical institutions for
infectious diseases across the country, secure more than 50,000 beds in the event of an
emergency, and work on further improving the availability of ventilators and oxygenators
necessary for treatment of patients with severe symptoms. In addition, the Government willsecure the supply of medical masks and gowns in the country and distribute them to therequired medical institutions on the priority basis. For instance, the Government will
distribute an additional 15 million medical masks to medical institutions nationwide during
April. In addition, the Government will give special treatment that assesses measures toprevent the spread of the infection in terms of medical fees to medical institutions that
accept patients. The Government will work on accumulating and sharing the cases of severe
pneumonia.

・ Development of medical treatment structures at National Hospital Organization(NHO) and Japan Community Health care Organization (JCHO) (MHLW)・ Ensuring proper setup of medical institutions in prefectures (beds, ventilators,
oxygenators, medical workers, etc.) and making available medical treatment facilities
other than medical institutions for people with mild symptoms, etc. (Setting up“Emergency Comprehensive Support Grant for Novel Coronavirus Disease”)(MHLW)
・ Setting up “Local Revitalization Grant For Novel Coronavirus Disease” (CAO)・ Facility development and maintenance project for ventilator production (METI)・ ECMO 10 team training program (MHLW)・ Support for equipment maintenance and human resource development for advanced
medical treatment at university hospitals (MEXT)
・ Priority distribution of medical masks and gowns to medical institutions (MHLW)

10Extracorporeal Membrane Oxygenation.

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・ Government to bear the hospitalization treatment expenses for patients of novel
coronavirus disease (MHLW)
・ Development of facilities that can accept positive asymptomatic patients and patients
having mild symptoms (MHLW, NPA)
・ Project for strengthening the remote health counseling structure (METI)・ Support for expenses such as pharmaceutical delivery by the pharmacies to patients
who have been given pharmaceutical guidance by telephone or information
communication devices (MHLW)・ Construction and operation of a mechanism for efficiently tracking and sharing thestatus and like of necessary supplies of daily life related facilities and the medical
treatment structures (patient acceptance system, availability of supplies / medical
equipment, etc.) of hospitals across the country by concerned agencies (MHLW,
Cabinet Secretariat(CAS))・ Examining the possibility of using hospital ships for ensuring the availability of place
for medical treatment (CAO, MHLW, Ministry of Land, Infrastructure and Transport(MLIT), MOD)・ Improving assets for emergency activities (vehicles, equipment, etc.) in the SelfDefense Forces and increasing the equipment and the vehicles for emergency
activities in the fire departments the (Ministry of Internal Affairs andCommunications (MIC), MOD)
Etc.

Issues to be Implemented regarding Online Medical Treatment and Pharmaceutical
Guidance
In the situation where the novel coronavirus disease is spreading rapidly, in orderto prevent the spread of infection including nosocomial infection, as an emergency
response, the Government will immediately revise the present system and implement therevised one as soon as possible so that online and telephonic medical treatment andpharmaceutical guidance can be provided to the patients who wish.

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(1)

Using Online Medical Treatment and Telephonic Medical Treatment① Expansion of Online and Telephonic Medical Treatment (temporary relaxation of
the principle that the first consultation must be done face to face and reconsiderationof the medical fee payment for online and telephonic treatment)
With the spread of the novel coronavirus disease, it is becoming difficult to takemedical treatment at medical institutions. The Government will develop a system where
patients can access medical institutions by phone and other information communication
devices (hereinafter referred to as “phone etc.”) including the first consultation and canreceive appropriate treatment. Particularly, for the people and patients who need toreceive medical treatment, the Government will establish a system to provide contact
information of medical institutions themselves, windows to them and so forth that canbe accessed by phone, etc. For patients who contact these medical institutions by thephone etc. based on this information, doctors of these medical institutions receiving theinquiries will provide appropriate medical treatment by phone etc. and for patients who
have a history of past medical examination or whose information on underlying diseases
is known based on patient referral documents, regional medical networks and results ofmedical check-ups, etc., diagnosis and prescription would be made at the doctor's
judgment.
Furthermore, for those who do not have a history of past medical examination,
doctors who provide medical treatment by phone etc. of medical institutions (publishedby the MHLW via prefectures to contribute to the convenience of patients) would makediagnosis and prescription based on their judgment. In this case, in order to deal withrisks such as selling pharmaceuticals in the black market, certain restrictions would beplaced on the prescription of pharmaceuticals.
In addition, when diagnosing or prescribing by phone etc., the following points
must be sufficiently considered.

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・When providing telephonic medical treatment by, in order to enable doctors toeffectively follow up in cooperation with the regional medical institutions, itispossible to move to face-to-face medical treatment as needed and refer to othermedical institutions with their prior consent.
・All possible measures to prevent spoofing of patient and prescription based on false
declarations must be taken.

Furthermore, when the medical treatment is offered by phone etc., in order toensure that medical institutions will receive sufficient compensation and more online
medical treatment will be offered, the Government will review the limit (10% or less)of the proportion of the number of times of calculation of online medical treatment fee
per month at medical institutions offering online medical services while dealing with
the novel coronavirus disease.

② Disseminating Information to Medical Personnel, the Public, and Patients
While implementing the above matters, the Government will make sure that
medical personnel, the public, and patients are fully informed about telephonicmedical treatment. At the same time, the list of medical institutions that offer medical
treatment by phone etc. will be published on the website, etc., and updated from time
to time.

(2)

Using Online Telephonic Pharmaceutical Guidance① Expansion of Online Telephonic Pharmaceutical Guidance (temporary measure)
While dealing with the novel coronavirus disease, after taking measures toprevent unauthorized access in addition to ensuring proper use of pharmaceuticals, itwill be possible to receive pharmaceutical guidance by phone etc. in case of not only
medical treatment by phone etc., but also face-to-face medical treatment if pharmacists

18determine it is appropriate based on the patient and the pharmaceutical information.

② Providing Over-the-Counter Pharmaceuticals at the Time of Recommending
Consultation by Phone etc.
While dealing with the novel coronavirus disease, when a doctor in (1) ①
above advises home treatment by using over-the-counter pharmaceuticals to patientsby phone and so forth, pharmacies, etc. will provide them at patients’ residence as per
their request.

③ Dissemination of Information to Pharmacies, Medical Personnel, the Public, andPatients
In implementing the matters above, while clearly defining in details the methodof giving pharmaceutical guidance by phone, etc.,

delivering pharmaceuticals and soforth, the information including the fact that all pharmacies are to do things above will
be fully disseminated to pharmacies, medical personnel, and the public and patients.

(3)

Verification within the Response Period
Both (1) and (2) above are to be treated as temporary measures in light of thesituation that the infection of the novel coronavirus disease is spreading and it is
becoming difficult to receive medical treatment at medical institutions. Therefore, theperiod of these measures will ends when the disease comes under control. In principle,
every 3 months, verification will be conducted to improve measures of (1) and (2) fromthe standpoint of epidemiological situation, the feasibility and effectiveness of (1) and(2), and medical safety, etc. At that time, the respective prefectural council will evaluate
the actual performance and the status of cooperation with the local regions.

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4. Accelerate the Development of Therapeutic Medicines and Vaccines
In order to fundamentally solve the spread of the novel coronavirus disease, theGovernment will accelerate the development and dissemination of effective
pharmaceuticals and vaccines, which are the top priority issues, by gathering knowledge
and wisdom of the world. At the same time, the Government will ensure the early use ofpharmaceuticals and vaccines whose safety and effectiveness are confirmed.
Specifically, with regard to AVIGAN 11 , the Government will expand clinicalresearch in cooperation with foreign countries and start increasing production, aiming tosecure a stockpile for 2 million people within FY 2020. In addition, with regard to
FUTHAN 12, as observational research and the like, it will be administered to patients who
have given their prior consent. Furthermore, the Government will strongly support thedevelopment and supply of pharmaceuticals and vaccines by universities and privatecompanies, and in particular, the Government will contribute to the world by funding to
CEPI 13 and Gavi 14 . Also, regarding effective vaccines that have received regulatory
approval, the Government will promptly consider measures such as purchasing them asnational stockpiles from the standpoint of supporting the development of domestic
companies.

・ Facility development project for the production of AVIGAN (METI)・ Examination of the effect and safety of the existing therapeutic pharmaceuticals suchas FUTHAN (MHLW)
・ Accelerating the development of therapeutic pharmaceuticals and vaccines by funding
and subsidizing the Japan Agency for Medical Research and Development (AMED)
11

It is approved as a pharmaceutical for new influenza and it has an effect in preventing the growth ofthe virus. However, teratogenicity to the fetus has been confirmed as one of Avigan’s side effects,
and it is being supposed to administer an increased dose for the novel coronavirus disease ascompared to the case of new influenza. In light of this, it is necessary to fully inform these
indication, side effects, and precautions for use.
12 Approved as a pharmaceutical for pancreatitis, this pharmaceutical is expected to prevent thegrowth of viruses.
13 CEPI (Coalition for Epidemic Preparedness Innovations).
14 Gavi, the Vaccine Alliance.

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(CAO, MEXT, MHLW)・ Contributing to CEPI for vaccine development (MHLW)・ Contributing to Gavi to support low-income countries (Ministry of Foreign Affairs(MOFA), MHLW)・ Building a data collaboration platform that contributes to the development oftherapeutic pharmaceuticals and vaccines (CAO)
Etc.

5. Increase Capacity to Cope with Japanese People Returning from
AbroadIn order to prevent the spread of the disease in Japan, the Government will takequick border measures including that for Japanese nationals residing overseas without
hesitation. The Government will strengthen the quarantine and testing system by ensuringthat Japanese nationals who have returned from the regions included in the immigration
ban undergo PCR tests at airports. For the acceptance system of returnees, etc. who require
isolation, the Government will take sufficient measures including securing means oftransportation instead of public transportation in cooperation with related ministries andagencies.

・ Strengthening the quarantine and test system by deploying PCR test equipment atquarantine stations throughout Japan (MHLW) [Listed twice]・ Strengthening the immediate response system to protect Japanese nationals overseas
in the event of an emergency (MOFA)・ Supporting the efforts to ensure an acceptance environment for the National Institution
for Youth Education(MEXT)・ Improving facilities where returnees who need isolation can be accepted (MOD)
Etc.

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6. Strengthen Public Relations
The Government will promptly disseminate accurate and easy-to-understandinformation from people’s perspective. In addition to the appointment of a public relations
officer, the Government will consolidate information transmitted by each related ministry
and agency for the entire government and create a one-stop online platform. Moreover, theGovernment will engage in effective public relations exercise from the standpoint ofcommunicating the information people who want to know in a comprehensive and easyto-understand manner. The Government will strive to provide easy-to-understandinformation regarding the status of development of therapeutic pharmaceuticals andvaccines. The Government will create awareness that will call for not discriminating
against infected people based on misunderstandings and prejudices. At the same time, theGovernment will strengthen the international public relations to build up trust in Japan,
with an eye on the Tokyo Olympic and Paralympic Games, which have been postponed for
one year.

・ Strengthening public relations by launching a portal site (CAS)・ Strengthening communication with foreign audience regarding Japan's measuresthrough social and other media (MOFA)・ Setting up a call center to respond to people’s concerns and questions (MHLW)・ Equipping means for transmitting information on the novel coronavirus disease fromlocal governments to their residents (MIC)・ Mental care and support for the novel coronavirus disease (MHLW)・ Dissemination of information for foreigners about appropriate access to healthcare
system (MHLW)
Etc.

22

7. International Cooperation such as Contribution to Emergency
Assistance to Infected Countries
In order to prevent the further spread of the novel coronavirus disease and to block
its inflow to Japan, which is a concern in terms of its extension, the Government will
collaborate with international organizations working in countries in which the spread of thedisease is highly likely and support the improvement of medical treatment systems andpublic health there. Particularly for developing countries with vulnerable health systems,
the government will provide grant aid in the fields of medical and health care,pharmaceutical and material support and technical cooperation, and will further expand
international cooperation through international organizations such as United Nations
Children's Fund (UNICEF), United Nations Development Program (UNDP), International
Monetary Fund (IMF), World Bank Group (WBG), Asian Development Bank (ADB), etc.

・ Provision of grant aid, and medical-related equipment and infection protection
equipment to developing countries through UNICEF, UNDP, etc. (MOFA)
・ Technical cooperation by dispatching experts in the field of healthcare (MOFA)・ Support for building early diagnosis and detection capabilities for the novel
coronavirus disease through the International Atomic Energy Agency (IAEA) (MOFA)
Etc.

8. Support Families with Children amid Tentative Closure of Schools
For households with children affected by temporary school closures for preventing
the spread of the disease, the Government will provide support for ensuring children's
whereabouts, learning opportunities, mental care, etc., for additional costs associated withthe suspension or postponement of school excursions, and for parents taking care ofchildren so that they can avail paid leaves.

・ Financial support for temporary school closures in the clubs for after school activities
for children and family support center projects (MHLW, CAO)

23

・ Appointment of additional learning instructors (MEXT)・ Support for additional costs related to the suspension or postponement of school
excursions pursuant to the Government’s request for temporary school closure(MEXT)・ Creating nature experience, cultural art experience, and physical exercise
opportunities for children (MEXT)
・ The subsidy for guardians affected by school closures related to COVID-19 (MHLW)・ Corporate-led babysitter user support project due to temporary closures of
elementary schools (CAO)
・ Support for day services after-school due to temporary closures of special needs
schools (MHLW)
Etc.

II. Protecting Employment and Keeping Businesses Viable
With the rapid contraction of economic activities caused by the novel coronavirus
disease, the environment surrounding SMEs, small-sized enterprises, and sole proprietors
including freelancers is extremely severe, which has threatened the continuation ofbusiness and maintenance of employment. In order to overcome this crisis and build afoundation for the next step of a strong economic recovery, the Government will set up a
new benefit system for businesses and people all over the country who are facing
difficulties. In addition, the Government will mobilize all policy measures such as fiscal,
financial, and taxation to protect employment, businesses, people's lives, and culture andart.

1. Secure Employment
The Government will continue to make utmost efforts for protecting employment,
which is most important for the lives of the people. Therefore, regarding employment
adjustment subsidies, during the emergency response period (April 1 to June 30, 2020), the24Government will raise the subsidy rate to 4/5 for small and medium enterprises and 2/3 forlarge enterprises. In addition, if no employees are laid off, the subsidy rate will be 9/10 for
SMEs and 3/4 for large enterprises. In addition, employment adjustment subsidy will be
expanded to include non-regular workers who are not covered by employment insurance.
At the same time, for the convenience of enterprises using this scheme, the Government
will suspend overtime offsetting, strengthen the administrative processing system to speed
up payments, and simplify procedures 15.
In order to support early employment of students whose job offers have beencanceled, a special counseling desk for new graduates, etc. will be set in Hello Work for
New Graduates. In addition, the Government will strengthen the counseling support system
in Hello Work for non-regular employees and foreign workers and the like.

・ Further expansion of special measures for employment adjustment subsidies (MHLW)・ Establishing a special counseling service for new graduates in Hello Work for New
Graduates for those whose job offer has been canceled (MHLW)・ Strengthening the counseling support system, etc. in Hello Work for foreign workers,
business owners, non-regular employees, job seekers, etc. who need employment
support or housing / life support (MHLW)・ Expanding job-seeker support training for job-seekers who are not eligible forreceiving unemployment insurance benefit (expanding the number of persons covered
under this scheme) (MHLW)・ Strengthening the support system for accepting foreign nationals who are facing
difficulties due to the spread of the novel coronavirus disease (MOJ)
Etc.

In addition, the payment requirement of production indicators has been reduced from
10% or more compared to the same month of the previous year to 5% or more. Regarding
the maximum number of days to be paid, more exceptions will be made such that thepayment made during the emergency response period will not be counted in the normal
100 days per year and 150 days per three years. At the same time, measures will betaken to increase the amount added for insured persons who need to undergo educationand training.

15

25

2. Financial Measures
In order to strongly support the continuity of businesses, the Government will
make every possible effort to manage the financing of SMEs and small-sized enterprises
as well as medium-sized and large companies. With regard to offering concessional loans,which are effectively interest-free without collaterals combined with interest subsidy forsole proprietors, SMEs and small-sized enterprises whose sales revenue has dropped
sharply, and life and hygiene-related business operators, in addition to securing sufficient
funds, the Government will strive to speed up the procedures. Moreover, in order to further
reduce the interest and repayment burden on businesses, the Government will make itpossible to convert the existing loans of Japan Finance Corporation, etc. to effectively
interest-free loans without collaterals.
In order to expand the accessibility of loans, the Government will introduce theconcessional loans of effectively interest-free without collaterals that are provided via
private financial institutions, utilizing local government’s loan programs. In addition, theGovernment will reduce or exempt the guarantee fee for Safety Net Guarantee and Crisisrelated Guarantee, with securing guarantee facilities of sufficient scale. Even for the
existing loans taken from private financial institutions with credit guarantee, it will bepossible to refinance such loans with this new system. At the same time, the Government
will take all possible measures to support the financing of medical and welfare businesses,
agriculture, forestry and fisheries businesses, food service businesses, and food distribution
businesses.
Furthermore, for medium-sized and large companies, the Government will offer
financing support by using the Crisis Response Loans, etc. of the Development Bank ofJapan (DBJ) and the Shoko Chukin Bank, Ltd. In addition, the Government will defer thepayment of landing fees for the airlines and offer them the Crisis Response Loans of DBJ.
The Government will request private financial institutions to promptly andflexibly modify terms of existing loans and provide new loans. The Government, which
regards promoting these efforts at private financial institutions as its highest propriety in26

inspection and supervision, will require these institutions to report their efforts, and willencourage them to further support businesses. In addition, judgements made by private
financial institutions with regard to each individual asset assessment, such as theclassification of loan claims in the event of modification to loan repayment periods, shallbe respected and will not be individually denied in inspections by the Government.
With a view to doing its utmost to ensure smooth corporate financing, the Bank ofJapan has taken measures to enhance monetary easing including an introduction of theSpecial Funds-Supplying Operations to Facilitate Corporate Financing regarding the Novel
Coronavirus and an increase in purchases of CP and corporate bonds (the maximum amountof additional purchases of 2 trillion yen).

・ Continuing special lending by the Japan Finance Corporation, etc. and funding support
through crisis response management (including effectively interest-free loans for
SMEs and small-sized enterprises) (Ministry of Finance (MOF), MHLW, Ministry ofAgriculture, Forestry and Fisheries (MAFF, METI, CAO)
・ Providing loans for management improvement funds of small-sized enterprises(Marukei loans) on the effectively interest-free basis (METI)・ Refinancing of existing loans taken from Japan Finance Corporation, etc. andguaranteed private loans (MOF, MHLW, MAFF, METI, CAO)
・ Strengthening and expanding credit guarantee including guarantee fee reduction(METI)
・ Introducing effectively interest-free and unsecured loans provided via private financial
institutions (METI, Financial Services Agency (FSA))・ Offering interest-free loans within the range of premium payments to the subscribersof small-sized business mutual aid (METI)・ Expanding financing support to medical and welfare businesses (MHLW, CAO)
・ Expanding financing support such as effectively interest-free and unsecured loans topersons engaged in agriculture, forestry and fishery (MAFF, CAO)
・ Measures for facilitating financing to leading mid-sized food service business (MAFF)

27

・ Strengthening creditworthiness of small and medium food distributors (Debt guarantee
project) (MAFF)
・ Deferring the payment of landing fees, offering crisis response loans, etc. to airlines(MLIT, MOF)
・ When making requests to private financial institutions 16 , appropriately ascertainchanges in borrowers’ repayment abilities on a timely basis (FSA, MAFF)
・ Strengthening cooperation between government-affiliated financial institutions andprivate financial institutions (FSA, MAFF)
・ Providing FSA consultation hotline for transactions with financial institutions (FSA)・ Thoroughly disseminating information about financial support measures (FSA, MOF,
MAFF, METI)・ Request for flexible handling of credit information (FSA)・ Flexible handling of deadlines for Submission of Annual securities reports, etc. (FSA)・ Establishing the networking group by stakeholders on the corporate disclosure,financial reporting and audit of listed companies (FSA)
Etc.

3. Support for SMEs and Small Enterprises Facing Difficulties inContinuing Their BusinessIn order to build a robust safety net for leading medium-sized businesses, SMEs,
small-sized enterprises, and sole proprietors including freelancers in a wide range ofindustries and business forms that are in particularly difficult circumstances, theGovernment will support their business continuity and set up a new grant system that canserve as a source of recovery and that can be widely used for the entire business. In specificterms, as “Grant for Sustaining Businesses”, for businesses whose revenue in one monthhas dropped by 50% or more as compared to the same month of the previous year, theGovernment will pay the amount of reduction from the business revenue of the previous
year within the upper limit of 2 million yen for medium-sized companies and SMEs and
16“Cash Flow Support for Companies as Impact of COVID-19 (Novel Coronavirus) Outbreak Grows(Statement by the Minister of Finance and Minister of State for Financial Services)” (March 6, 2020).

28

the upper limit of 1 million yen for sole proprietors. At that time, the Government will
focus on making sure that the outline of the system is clearly communicated in advance tothe businesses in distress. In addition, the procedure will be made simple as much as
possible such as using an electronic application in principle considering the applicant's
administrative burden in light of the peculiarities of a wide range of business forms suchas culture and art. Moreover, the Government will shorten the period from application to
payment as much as possible.
Furthermore, in order to ensure that SMEs and small-sized enterprises can workon improving productivity, about the SME productivity revolution promotion project which
was set up in the comprehensive economic measures, in addition to making special
allocations (raise the subsidy rate, etc.), the Government will strengthen the consultation
system. Moreover, the Government will support local employment, the transfer ofmanagement resources such as technology and know-how, and business restructuring. Also,a system will be put in place to promote fair business transactions so that SMEs and smallsized enterprises are not affected by the deterioration of business environment.

・ New grant to SMEs and small-sized enterprises ( Subsidy Program for Sustaining
Businesses(Tentative Name)) (METI)・ Setting up a special fund for improvements in productivity of SME(METI)・ Strengthening business consultation system for SMEs and small-sized enterprises
affected by the novel coronavirus disease (METI)・ Project for supporting the restart of local companies(METI)・ Hands-on support for leading medium-sized companies and SMEs in Japan andoverseas (METI)・ Business resource transfer and business restructuring support project (METI)・ Establishment of a system that promotes fair transactions, etc. to prevent strain ofworsening of business environment (METI, CAO)
・ Deferring the payment of social insurance premiums for businesses whose income
has decreased (same steps as that in tax measures (described later)) (MHLW)

29

・ Notifying the owners of rental buildings requesting 17 them to take flexible measures
such as deferring the payment of rents for restaurants, etc. (MLIT)
・ Flexible operation of the Road Transportation Law, etc. that contributes to thebusiness continuity of passenger car carrier businesses (MLIT)
Etc.

4. Support Individuals Facing Difficulties in Daily Lives
Under a state of emergency based on the Act on Special Measures for Pandemic
Influenza and New Infectious Diseases Preparedness and Response, it is necessary to
refrain from going out and reduce contact between people as much as possible, except when
it is necessary to maintain life. With respect and thankfulness to the people who are engaged
in various fields throughout the country including the healthcare field, and we must
consolidate, unite, and overcome the national crisis of fighting this invisible enemy. For
this reason, while paying attention to the prevention of the spread of the disease, theGovernment will promptly and appropriately support households with a simple mechanism,
and uniformly pay out 100,000 yen per person. In addition, the Government will also
develop the application acceptance system that is based on the Social Security and Tac
Number Cards (i.e. My Number Cards). Furthermore, regarding households with children,
a temporary special benefit of additional 10,000 yen per applicable child will be paid tohouseholds receiving (regular) Child Allowance. Income tax and individual resident taxes
will be exempt for these new benefits.
Exemption from insurance premiums of national health insurance national pension
and so forth will be given to those who have lost a certain amount of income due to thedisease.
Also, the Government will allocate the necessary budget from the viewpoint ofcontinuously implementing special measures such as Emergency Small Funds for people

17“Response to Novel Coronavirus Infection (Request)” (March 31, 2020 MLIT).

30

who are facing difficulties in living due to the decline in income 18.

・ New benefits to all people nationwide (special fixed benefit (Tentative Name)) (MIC)・ Temporary special benefits for households having children (CAO)・ Financial support for municipalities that have reduced and exempted the payment of
national health insurance, nursing care insurance, etc. (MHLW)・ Exemption from national pension insurance premiums for those whose income has
declined (MHLW)・ Continuing special loans such as emergency small-amount funds for individuals(MHLW)・ Expanding support by reviewing the persons eligible for receiving housing security
benefits (MHLW)・ Support through offering scholarship loans, scholarships and reduction / exemption oftuition fees (MEXT)
・ Prompt and robust implementation of replacement payment of unpaid wages (MHLW)・ Support for securing homes by reducing the rent of safety net homes (MLIT)
・ Expanding the SNS counseling project, etc. for dealing with the increase in suicide
risk (MHLW)・ Expanding the counseling service for spousal violence victims (CAO)
・ Enhancing support by legal terraces for solving legal problems(MOJ)・ Strengthen the consultation system at consumer center (Consumer Affairs
Agency(CAA))
Etc.

18

First, the Government will loan up to 200,000 yen with emergency small funds, and if the income
continues to decline, the Government will loan up to 200,000 yen for 3 months with morecomprehensive support funds if the household has two or more persons (Total 800,000 yen). In
addition, for households exempt from resident tax, if the income continues to decline at the time of
repayment, such households may be exempted from repayment.

31

5. Tax Measures
In light of the fact that the impact of the novel coronavirus disease on Japan'ssocio-economic situation is enormous, the Government will urgently take the necessary
taxation measures for taxpayers who are in a difficult situation due to the effect of thedisease and the measures taken to prevent its spread.
Considering the fact that many businesses have experienced sharp reduction in
their revenue due to measures to prevent the spread of the novel coronavirus disease, suchas request for self-restraint for events and immigration control measures, with regard tonational taxes, local taxes and social insurance premiums for businesses whose revenue has
declined significantly, the Government will make exceptions to defer the payment by one
year without any collateral and late payment penalty. In addition, for the deficits bycompanies with capital of over 100 million yen and under 1 billion yen, it will be possible
to apply the corporate tax refund system by carrying back the deficit.
For SMEs, etc. facing severe business environment, the burden of property tax
and city planning tax on depreciable assets and business buildings will be reduced to one
half or zero for one year of the taxation period for 2021. In addition, from the perspectiveof supporting small- and medium-sized business that are making new capital investment
while being affected by the novel coronavirus disease, the Government will expand andextend special property tax measures for achieving improvements in productivity. The
reduction in revenue caused by these measures will be entirely covered by national
expenses.
In the case that the spectators, etc. do not request a refund of the entrance fee andthe like to the organizers who canceled certain cultural arts and sports events in responseto the Government's self-restraint request, the waived refund amount will be eligible fordonation deduction (income deduction or tax credit).
For ensuring that tax relief measures will be used early including extension ofdeadlines and deferment of payment based on the existing laws and regulations, theGovernment will continue to proactively publish information instead of just waiting for32inquiries and counseling requests from the public. In addition, after simplifying applicationand examination procedures as much as possible, the Government will respond swiftly andflexibly in consideration of the circumstances of the applicants.

・ Exception of deferment system of tax payment (MOF, MIC, MHLW)・ Exception of refund by carrying back deficit (MOF)
・ Reduction measures for property tax and city planning tax on depreciable assets andbusiness houses owned by SMEs (METI)・ Expansion and extension of special measures for property tax for achieving
improvements in productivity (METI)・ Capital investment tax system for SMEs for telework, etc. (METI, MIC, MHLW,
MAFF, MLIT)・ Application of donation deduction to spectators who waived their rights to request arefund from the organizers who canceled the cultural arts and sports event (MEXT)
・ Extension of temporary relief of automobile tax and light vehicle tax environmental
performance rate (METI)・ Bringing flexibility to application requirements for mortgage deductions (MLIT)
・ Bringing flexibility to application requirements of special measures for real estate
acquisition tax pertaining to the houses refurbished for making them earthquake
resistant (MLIT)
・ Special measures related to the submission of notification forms to be taxable or taxexempted on consumption tax (MOF)
・ Exemption of stamp duty on contracts related to special loans (MOF)

III. Recovery of Economic Activities through Public andPrivate Cooperation as the Next Phase
After the spread of the novel coronavirus disease is contained and the public's
anxiety has been dispelled, as a phase of the economic recovery, the Government will focus

33

on the fields that were greatly affected by this situation, and take bold and short-term
intensive support measures that will benefit the wider range of people. By launching largescale public-private campaigns, the Government will stimulate the domestic movement ofpeople and make the shopping districts lively. In addition, by significantly stimulating theconsumer demand, the Japanese economy will once again recover to a solid growthtrajectory. At the same time, through efforts to revive inbound tourism and businesssupports to the agriculture, forestry and fisheries industries, the Government will bring
momentum to revitalize the regional economy.

1. Support Affected Sectors, such as Tourism and Transportation, Food
Service, Event and Entertainment Business
Targeting tourism and transportation, food service, and event and entertainment
businesses, whose sales revenues have been severely impacted by the novel coronavirus
disease, the Government will run a public-private integrated campaign, tentatively named“Go To Campaign,” to intensively stimulate consumption for a limited period after the
spread of the novel coronavirus disease is contained. Specifically, during the campaign
period, the Government will offer discount coupons, points, other coupons and the like toconsumers who reserve and visit restaurants, and purchase travel products, meal tickets
that can be used at restaurants, and event and entertainment tickets. At that time, anintegrated executive office will be set up for the entire campaign, and companies from allover Japan will be invited to participate in this project. The Government will support theimplementation of campaigns such as organizing events to restore liveliness in shopping
districts throughout Japan. The related accessible public relations will also be conducted,
in concerted efforts with private sector, local governments, and local shopping districts.

・ Go To Campaign project (tentative name) (CAS, METI, MLIT, MAFF)・ Launching nationwide movements to stimulate tourism demand (MLIT)

34

2. Revitalize Regional Economy
Not only to prevent the spread of the disease support local economies and people's
daily lives, but also to assist local governments to implement necessary projects carefully
designed according to the local circumstances even after the spread of the infection iscontained, "Local Revitalization Grant For Novel Coronavirus disease” will be established.
With regard to the agriculture, forestry and fisheries industries, which form the core of theregional industries, the Government will support their efforts for recruiting adaptableworkers and installing machines and facilities to nurture their employees in order to deal
with the sudden shortage of manpower caused by the impact of the novel coronavirus
disease. The Government will also take the support measures to address the management
anxiety in the agriculture, forestry and fisheries industries.
In addition, the culture and art, which heal people, give hope for tomorrow, andform the foundation of society, and sports, which bring physical and mental health, dreams
and excitement, and courage to people are all very important for enriching and fulfilling
life. For generating interest and enthusiasm for cultural arts and sports activities that had
to be canceled or postponed in various places, in addition to support for business continuity,
the Government will provide sufficient support for resuming activities including measures
for the novel coronavirus disease, and will bring back the vitality of the local regions bycreating opportunities for a wide variety of cultural arts and sports experiences in eachregion.
For reviving the demand of inbound tourism that has sharply decreased due to theimpact of the novel coronavirus disease, the Government will work on improving theenvironment for accepting tourists. In addition, the public and private sectors will work
together to disseminate accurate information about regions including measures to tackle
the novel coronavirus, conduct marketing, brush up attractive contents in each area, andrun large-scale promotion campaigns for overseas markets.
Furthermore, while taking measures to support the host towns of the Tokyo
Olympic and Paralympic Games, which have been postponed by one year, the Government

35

strongly support the revitalization of regions from various aspects such attracting tourists
to national parks rich in nature and promoting Workation 19 which result in maintenance of
employment in these areas..
To revitalize these regional economies, the Government will strengthen theinvestment capacity of the DBJ 20, and provide medium-to-long term support for private
investments in cooperation with regional financial institutions, etc. In addition, theRegional Economy Vitalization Corporation of Japan (REVIC), etc. will support thebusiness foundation of leading medium-sized enterprises and SMEs in the regions.

・ Setting up “Local Revitalization Grant For Novel Coronavirus Disease (TentativeName)” (CAO) [Listed twice]・ Emergency support project for ensuring the availability of labor force in agriculture
and fisheries (MAFF)
・ Introduction and demonstration of smart agriculture to resolve labor shortage (MAFF)
・ Emergency support special measures project such as fattening cattle management(MAFF)
・ Emergency measures business for facilitating distribution of beef calves (MAFF)
・ Projects to stabilize fishery income (MAFF)
・ Projects to stabilize vegetable prices (MAFF)
・ Support for prevention of the Infection in cultural arts and sports facilities (MEXT)・ Support for the Infection prevention measures and public relations for the resumptionof sports events (MEXT)
・ Art caravans by local cultural and arts related organizations and artists including
students and amateurs (MEXT)
・ Creating nature experience, cultural art experience, and exercising opportunities forchildren (MEXT) [Listed twice]・ Application of donation deduction to spectators who waived their rights to request a
19 Workation is a word coined by combining “work” and “vacation”. At places such as tourist spotsthat are not a normal workplace, one can enjoy holidays while working through telework etc.
20
IV. It includes efforts that contribute to building a robust economic structure.

36

refund from the organizers who canceled the cultural arts and sports event (MEXT)[Listed twice]・ Promoting measures against the disease at tourist facilities and developing/improving
the environment for accepting foreign tourists including public transportation (MLIT)・ Brushing up local tourism resources into attractive contents for longer stay in order toattract visitors (MLIT)・ Large-scale promotion to recover the demand of foreign tourists visiting Japan throughthe Japan National Tourism Organization (JNTO) (MLIT)
・ Support for installation of high-performance ventilation equipment at restaurants andothers (Ministry of the Environment (MOE))
・ Information dissemination project to overseas through broadcasting contents (MIC)・ Support for developing the sales channels for local products made by SMEs by using
crowd funding and the like (JAPAN Brand Development Support Project) (METI)・ Regional revitalization support project by developing a visualization system of theregional economy (CAO)・ Host town support in light of postponement of the Tokyo Olympic and Paralympic
Games (CAS)・ Attracting customers to national parks and promoting Workation (MOE)・ Promotion of long stay tours in specified manned borders remote island areas (CAO,
MLIT)
・ Budget for specified projects on Okinawa-promotion (CAO)・ Setting up "Novel Corona Revival Growth Foundation Enhancement Fund (TentativeName)" that utilizes the investment function of DBJ (MOF)
Etc.

IV.

Making Economic Structure More Resilient
Even though the world economy is significantly affected, it is important topromote free trade and enhance the value added of domestic industries through the TPP11,37

the EU-EPA and the Japan-US trade agreement, etc. without falling into protectionism.
Regarding the supply chain disruption caused by the COVID-19 pandemic, theGovernment will provide support to corporate initiatives to enhance the resilience of supply
chains through diversification of the production base including the securement of domestic
production bases, taking into account economic security viewpoint. In addition, after thesituation has settled, in order to continue capturing external demand, the Government will
work on facilitating overseas operations of Japanese companies, as well as on maintaining
and/or strengthening the export competitiveness of agricultural, forestry and fisheryproducts and foods. In addition, the Government will boldly promote digital transformationby accelerating the efforts of remote operations such as telecommuting, distance education,
remote medical treatment/pharmaceutical guidance and so on, which have spread in thepresent situation or whose needs have become ever more apparent. The Government will
also promote the transition to a decarbonized society. Through these efforts, theGovernment will build a robust economic structure against future infection, ensure asustained growth trajectory of the economy in the medium to long term, and support theeconomy by making public investments at the earliest possible.

1. Enhancing the Resilience of Supply Chain
The Covid-19 pandemic has led to serious disruptions to global supply chains,resulting in shortages of various products including products essential for people’s
wellbeing such as masks. Based on such experience, the Government will provide support
for corporate initiatives for the purpose of diversification of their production base in orderto strengthen their supply chain resilience over several years. The Government will provide
the support the diversification of production bases regarding goods and materials with ahigh degree of concentration of production bases (maximum subsidy rate for SMEs is 2/3
and that for large enterprises is 1/2, etc.). In addition, the Government will raise the subsidy
rate for securement of domestic production bases of products essential for people’s
wellbeing such as masks, alcohol disinfectants, medical gowns, ventilators, oxygenators,
and so forth (maximum subsidy rate for SMEs is 3/4 and that for large enterprises is 2/3,38

etc.). The Government will also support the development of domestic production bases forpharmaceutical ingredients that are highly dependent on overseas market (subsidy rate is1/2). Furthermore, for goods and materials with a high degree of concentration of theinternational production bases, the Government will support the overseas diversification of
production bases especially in ASEAN countries (maximum subsidy rate for SMEs is 2/3
and that for large enterprises is 1/2, etc.).
In addition, the Government will develop technologies that contribute to thestrengthening of the supply chain, such as substitution of parts and materials that are highly
susceptible to supply disruptions, reduction of their use, quick and flexible reorganizationof the supply chain through data collaboration, etc., and secure and stockpile rare metals.

・ Program for Promote Investment in Japan to Strengthen Supply Chains (METI)・ Supporting manufacturing facilities for the development of domestic manufacturingbases for pharmaceutical ingredients, etc. (MHLW)・ Program for Strengthening Overseas Supply Chains (METI)・ Technology development and demonstrations that contribute to strengthening the
supply chain (METI)・ East Asian Economic Comprehensive Research Cooperation (Strengthening supply
chain, risk management, etc.) (METI)・ Support for conversion to a carbon free society by installing self-consumption typesolar power generation facilities that contribute to companies' RE100 21, etc. in light ofbringing back the production bases to Japan (MOE)・ Rare metals stockpiling project (METI)・ BCP (Business Continuity Plan) formulation support including measures against the
Infection for SMEs and small-sized enterprises (METI)
Etc.

21

100% renewable energy. An international initiative aiming for companies to use 100% renewableenergy for their business.

392. Facilitate Overseas Businesses, as well as Strengthening the Export
and Domestic Production Capacities of Agriculture, Forestry and
Fishery Products and Foods
There are obstacles to the overseas expansion of SMEs such as restrictions on
overseas travel due to the effect of the novel coronavirus disease. The Japan External Trade
Organization (JETRO) will strengthen the consultation system for companies with overseas
presence and the support for cross-border EC to provide detailed support for overseas
operation and market development of SMEs. In addition, the Government will support theoverseas promotion of domestic contents including entertainment and art.
Regarding agriculture, forestry and fishery products and foods, the Government
will retain export distribution channels that have been damaged by the disease, improve
facilities to deal with changes in overseas needs and destinations and support businessmeeting with foreign customers and promotions in overseas markets.

In addition, in orderto address the concerns about stable imports and new demand that have emerged as aconsequence of the disease, the Government will support the improvement of facilities forstable supply through collaboration between the producers and customers. At the same time,
the Government will also assist the efforts for expanding the use of flowering plants, whose
demand has declined sharply in public facilities. In addition, regarding meat, fruits, forest
and fishery products and so forth. whose retained stocks have increased and whose prices
have decreased due to the plummeting number of inbound tourists and others, inconsideration of future overseas business and inbound traffic, the Government will support
the efforts such as temporary storage and sales promotions to maintain the production andsupply systems.
The Government will support Japanese companies’ overseas businesses in Asiaand other regions, and contribute to the maintenance of local economic activities, throughthe following measures: (i) financing by the Japan Bank for International Cooperation(JBIC) that utilizes the Foreign Exchange Fund Special Account (hereinafter referred to as
the "Foreign Exchange Special Account"), which is an extension of the "Growth
Investment Facility" that was established under the Comprehensive Economic Measures)40

and (ii) emergency yen loans by the Japan International Cooperation Agency (JICA),・ Hands-on support for leading medium-sized enterprises and SMEs in Japan andoverseas (METI) [Listed twice]・ Enhancement of non-face-to-face and remote overseas expansion support services(promotion of cross-border EC, etc.) (METI)・ JAPAN brand development support project (METI) [Listed twice]・ Content global demand creation promotion project (METI)・ Priority support for promotion and facility improvement to maintain and strengthenmarketing potentials (MAFF)
・ Measures to strengthen supply of domestic agricultural and livestock products (MAFF)
・ Support for the next crop in response to new domestic and overseas demand (MAFF)
・ Support for expanding the use of flowering plants in public facilities (MAFF)
・ Emergency project for supporting the storage and inventory of Wagyu beef (MAFF)
・ Emergency support project for log storage(MAFF)
・ Designated fishery products product supply leveling project (MAFF)
・ Emergency measures for sales promotion of agricultural, forestry and fishery products(MAFF)
・ Promotion of overseas expansion of alcoholic beverages, domestic consumption
recovery and expansion support project (MOF)・ Establishment of the JBIC’s “Emergency Window for Overcoming the COVID-19
Crisis” ( Utilizing the Foreign Exchange Special Account) (MOF)・ Establishment of the JICA’s “COVID-19 Crisis Response Emergency Support Loan
(MOF, MOFA)・ Support for overseas expansion of Japanese companies through collaboration withinternational organizations focusing on water and sanitation fields (MOFA)
Etc.

41

3. Accelerate Digital Transformation by Deploying Remote Technologies
Due to the spread of the novel coronavirus disease, companies have ramped up
their efforts for telework, and the need for ICT-based remote services such as remoteeducation, which can be effectively used in such situation, has increased once again. In
order to accelerate the realization of Society 5.0, the Government must turn this crisis toan opportunity to speed up social transformation at all once by focusing on digital new
deals under the idea of wise-spending.
For this reason, the Government will expand support (double the maximum
amount) for the installation of telework communication equipment for SMEs, andstrengthen the consultation system to promote cybersecurity measures for SMEs and theintroduction of telework by companies and local governments. At the same time, theGovernment will promote the improvement of the telework environment for national public
servants.
With regard to remote education, the Government will strive to accelerate theschedule of accomplishing the goal of allocating one computer per pupil and student by
2023 which was set in the Comprehensive Economic Measures, support the assignment of
ICT technicians in schools, develop the communicating environment required for homeand online learning, and will build a platform that enables learning and evaluation bysolving practice problems on computers, etc. at home. In addition, the Government will
promote the introduction of EdTech into schools and the development of online contents
that would facilitate education at home. When conducting school classes online, withregard to the remuneration system for public transmission for school lessons which allows
the use of copyrighted works as teaching materials without permission of copyright owners,
the Government will give due consideration to the burden of schools and aim to start theprovisional operation in April this year. In addition, in preparation for the situation that theclosure of schools is prolonged and the implementation of the school curriculum ishindered due to the spread of the novel coronavirus disease, as a special measure, theGovernment will take measures to provide educational opportunities for pupils andstudents (see “Issues to be implemented regarding distance education”).

42

In addition, the Government will develop an environment that enables remotehealth consultations by doctors using chatting applications and so forth.
At the same time, from the perspective of promoting the provision ofadministrative services through the Social Security and Tax Number Card (i.e. My Number
Card), in addition to promoting the digitization of administrative services and SMEs
including examination of the possibility of further utilization of the My Number and the
My Number Card 22, the Government will work for the promotion and implementation of
ICT in th welfare for the disabled, construction and maritime areas.

・ Expansion of work style reform support subsidy (telework course) (MHLW)・ Expansion of consultation system by telework manager (MIC)・ Capital investment tax system for SMEs for telework, etc. (METI, MIC, MHLW,
MAFF, MLIT) [Listed twice]・ Acceleration of GIGA school concept (MEXT)・ Securing learning opportunities by accelerating the construction of distance lesson
environment at universities (MEXT)
・ Project for promoting the spread of distance learning and home-based education
including introduction and demonstration of EdTech (METI)・ Early implementation of public transmission compensation system for class purposes(MEXT)
・ Project for strengthening the remote health counseling structure (METI) [Listed twice]・ Promotion of the development of superfast optical fiber bases to support home-basedlearning, work from home, online medical treatment, etc. (MIC)・ Promoting the issuance of various certificates such as a copy of resident's certificate atconvenience stores by using the Individual Number Card (MIC)・ Development of “J Grants” (online grants application system),etc. (METI)・ SMEs digitization support project (METI)・ Introduction and demonstration of smart agriculture to resolve labor shortage (MAFF)
22

The “Q & A related to the operation of the general meeting of shareholders” (METI and MOJ,
April 2, 2020) states that it is possible to hold a general meeting of shareholders online.

43

[Listed twice]・ Significant improvement of productivity through digital transformation in the fields ofinfrastructure and logistics (Shifting to the use of BIM/CIM 23 for all public projects
excluding small-scale projects until 2023) (MLIT)
Etc.

Issues to Be Implemented Regarding Remote Education
In preparation for a situation where the closure of schools is prolonged and theimplementation of the school curriculum is hindered due to the spread of the novel
coronavirus disease, as an exceptional measures, the Government will take measures forproviding education opportunities for pupils and students through learning support at homeincluding flexible operations such as the following.

(1) Quick Development of the ICT Environment
In executing the supplementary budget to provide one computer-device to eachelementary and junior high school student, in order to enable pupils and students who
cannot go to school to take online classes using their devices at home and prevent the
spread of the novel coronavirus disease, devices, the related ministries, particularly
MEXT will discuss the specific methods and procedures, and ensure that the devices areallocated at the earliest possible and students are able to use them in environment where
the Internet is connected. At that time, it is necessary to give priority to pupils andstudents in need, taking into consideration whether there is a computer or a tablet thatcan be accessed at home.

23

BIM (Building Information Modeling) / CIM (Construction Information Modeling) introduces 3Dmodels from the measurement/survey and design stages, thereby linking and developing 3D models at
each of the subsequent stage of construction, maintenance and management, and update, making it
possible to easily share information between stakeholders throughout the entire project and improving
the efficiency and sophistication of a series of construction production and management systems.

44

(2) Review of Requirements for Remote Education
At present, remote education are classified into three types: “joint class type”,“teacher support type”, and “subject enhancement type”. However, a teacher has to beon the receiving side for these three types of distance lesson. Regarding the learning of
pupils and students at home through ICT, no teacher is on the receiving side. However,even in this case, it will be recognized that the pupils and students are participating in aformal class.
In addition, in the above remote education, it is an essential requirement that there
is "simultaneous two-way" communication. In order to create an environment in whichchildren and students can continue learning without being restricted by time or place,even when using online educational contents other than "simultaneous two-way”
communication depending on the content of the lessons, it will be recognized as
participation in a formal class.

(3) Relaxation of Restrictions on the Number of Credits That Can Be Earned in DistanceLessonIn the case of high schools, distance lessons are possible when “a high school
recognizes that it has the same educational effect as face-to-face lessons”. However,there is an upper limit (36 credits) to the number of credits for distance lessons. Even in
the case of universities, there is a limit of 60 credits out of 124 credits for distant lessons.
The calculation of the number of credits earned in the distance class will be made more
flexible.

(4) Developing Online Curriculum
Online educational contents are getting enriched (on NHK, YouTube, websites of
educational institutions, etc.), and MEXT has also introduced this on its website (*). The
Government will expand online curriculum so that pupils and students can study at home.

45

(※) The contents portal site for learning support during the temporary closure (child learning
support site): https://www.mext.go.jp/a_menu/ikusei/gakusyushien/index_00001.htm(5) Copyright Requirements for Online Learning
The amendment law of the Copyright Act, which introduces the compensation
scheme for digital material distribution without permission of copyright owners inprinciple, will come into effect within three years from the date of promulgation (May25, 2018). The Government will implement this law immediately and look into providing
necessary support for reducing the compensation burden for full-scale implementationin 2021.

4. Accelerated Implementation of Public Investment
The Government will flexibly implement public investments that contribute toproductivity improvement, restoration and reconstruction, building national resilience suchas disaster prevention and disaster reduction, and infrastructure repair and maintenance.
Through the early execution of the FY2019 supplementary budget, and the FY2020 initialbudget including temporary and special measures, after setting a contract rate target for the
first half of the year, the Government will make all efforts for supporting the economy.

V. Preparing for the Future
Considering the situation of the disease and economic trends, in order to makeadequate preparations to take necessary measures without hesitation, the Government will
set up the “Reserve Funds for Novel Coronavirus Disease (Tentative Name)” of a scalelarger than ever.

46

Appendix Table

Scale of Emergency Economic Measures(Financial(Project scale))expenditure)

I.

Comprehensive economic measures

Ⅱ．1st and 2nd round of emergency measures

Ⅲ．New addition

Total

Approx. 9.8

Approx. 19.8 trillion

trillion yen

yen

Approx. 0.5

Approx. 2.1 trillion

trillion yen

yen

Approx. 38.1

Approx. 95.2 trillion

trillion yen

yen

Approx. 48.4

Approx. 117.1

trillion yen

trillion yen(Note 1) Ⅰ．refers to matters that are expected to have an effect in future among “Comprehensive Economic
Measures to Create a Future with Security and Growth” (Approved by Cabinet on December 5,2019).
(Note 2) Ⅱ. refers to matters pertaining to the 1st round (Approved by the Novel Coronavirus Response
Headquarters on February 13, 2020) and the 2nd round (Approved by the Novel Coronavirus
Response Headquarters on March 10, 2020) of “Emergency Measures for Novel Coronavirus
Infection”.

47Appendix Table(Reference 1) Breakdown of Five Pillars(Financial
expenditure)(Project scale)

Ⅰ．Measures to prevent the spread of the disease,build medical treatment structures, anddevelop pharmaceuticals

Approx. 2.5
trillion yen

Approx. 2.5
trillion yen

Ⅱ．Protecting employment and keeping
businesses viable

Approx. 30.8
trillion yen

Approx. 88.8
trillion yen

Ⅲ ． Recovery of economic activities with theconcerted efforts of public and private sectors
as the next stage

Approx. 3.3
trillion yen

Approx. 8.5
trillion yen

Ⅳ．Building a robust economic structure

Approx. 10.2
trillion yen

Approx. 15.7
trillion yen

Ⅴ．Preparing for the future

Approx. 1.5
trillion yen

Approx. 1.5
trillion yen

Total

Approx. 48.4
trillion yen

Approx. 117.1
trillion yen

48Appendix Table(Reference 2) Breakdown of Financial Expenditure(Financial

Including

Including fiscal

expenditure)

National and local

investment andexpenditureloan program

Ⅰ．Measures to prevent the

Approx. 2.5 trillion

spread of the disease,yen

Approx. 2.5 trillion yen-

Approx. 21.1 trillion yen

Approx. 9.7 trillion yen

Approx. 2.8 trillion yen

Approx. 0.5 trillion yen

Approx. 8.0 trillion yen

Approx. 2.3 trillion yen

Approx. 1.5 trillion yen-

Approx. 35.8 trillion yen

Approx. 12.5 trillion yen(Note 1)

(Note 2)

build medical treatment
structures, and develop
pharmaceuticals
Ⅱ．Protecting employment

Approx. 30.8 trillion

and keeping businessesyenviableⅢ．Recovery of economic
activities

with

the

concertedeffortsofApprox. 3.3 trillion
yenpublic and private sectors
as the next stage
Ⅳ ． Building a robust
economic structure
Ⅴ．Preparing for the future

Approx. 10.2 trillion
yen
Approx. 1.5 trillion
yen

Total

Approx. 48.4 trillion
yen(Note 1) The national budget is 33.9 trillion yen, of which the supplementary budget for 2020 is 27.5
trillion yen (general account 25.6 trillion-yen, special account 1.9 trillion yen).
(Note 2) The additional amount in the supplemental budget for 2020 is 10.1 trillion yen.

2

Appendix Table

Major Measures That Are Expected to Be Effective in the Future among
the Comprehensive Economic Measures

II Protecting Employment and Keeping Businesses Viable
・ SMEs productivity improvement project・ Project for reconstruction of affected small-sized enterprises (subsidy program forsustaining businesses)
・ Project for supporting the reconstruction of local companies (subsidies in collaboration
with local governments)
・ Business succession / generation change intensive support project・ Support project for SMEs/small-sized enterprises for increasing minimum wages
etc.
III

Recovery of Economic Activities with the Concerted Effort of Public and Private
Sectors as the Next Stage・ Measure to support private consumption by “Individual Number Card Point”
・ Housing market stabilization measures project (housing benefits)
・ Special measures project for strengthening and improving the profitability of livestockand dairy farming
・ Local production base power-up project・ Smart agricultural technology development and demonstration project・ Regional revitalization base improvement grant・ Setting up leading human resources matching project・ Functional Enhancement of Metropolitan Airportsetc.

3

IV Building a Robust Economic Structure・ Support of Japanese companies’ overseas businesses, such as overseas M&A and global
value chain restructuring, by the JBIC
・ Groundbreaking environmental innovation strategy acceleration program
・ Project for social implementation and acceleration of deployment of parts and materials
required for making innovations that would lead the world
・ Emergency project for overseas demand creation support and export environment
development
・ Emergency project for developing global production bases
・ Enhancement of the bases for post-5G information and communication systems
・ Financial support for accelerating 5G investment
・ Realization of GIGA school concept
・ Public investment for accelerating restoration and recovery from natural disasters
・ Public investment for robust implementation of disaster prevention / mitigation andbuilding national resilienceetc.

4