(Provisional Translation)

Comprehensive Economic Measures toCreate a Future with Security and Growth

December 5, 2019

(Provisional Translation)

Table of Contents
Chapter 1 Current Conjuncture of the Economy and Basic Concept of the Economic
Measures .......................................................................................................................1
I. Current State of the Economy ....................................................................................... 1
II. Basic Stance behind the Economic Measures ............................................................... 2
Chapter 2 Measures to Implement ....................................................................................4
I. Restoration and Reconstruction from Natural Disasters and Ensuring Safety andSecurity ......................................................................................................................... 4
1. Acceleration of Restoration and Reconstruction from Natural Disasters ................. 5
2. Strong Promotion of Disaster Prevention, Mitigation and Building National
Resilience .................................................................................................................. 6
1) Steady Implementation of the Three-Year Emergency Response Plan ............. 62) Further Strengthening of National Resilience Projects Focusing on FloodControl Measures ............................................................................................... 7
3. Securing Public Safety and Security ......................................................................... 9
II. Intensive Support for Those Striving to Overcome Economic Downside Risks ........ 11
1. Developing an Environment for Enhancing Productivity of SMEs ........................ 11
1) Promotion of Business Investment and Support for Deployment of ICT and
Digital Technology........................................................................................... 122) Support for Workers at SMEs and Small Enterprises ...................................... 13
3) Further Promotion of Proper Transaction Structure ........................................ 134) Acceleration of Business Succession and Business Restructuring such as
Removal of Business Owners’ Personal Guarantees ....................................... 13
2. Facilitation of Overseas Business Operations ......................................................... 14
3. Making Agriculture, Forestry and Fisheries a Growth Industry and Accelerating
Enhancement of Exporting Capacity....................................................................... 151) Succession and Reinforcement of Production Bases and Strengthening ofInternational Competitiveness, etc. .................................................................. 152) Strategic Exploitation of Foreign Demand and Further Increase of Exports... 16
4. Further Promotion of Regional Revitalization ........................................................ 16
1) Further Utilization of Measures to Revitalize Regional Economies ............... 172) Reinforcement of Talent That Plays Important Roles in Regions ................... 17
5. Support for the “Employment Ice-Age” Generation ............................................... 18

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III.
Investing for a Future, Maintaining/Enhancing Economic Vitality Beyond the2020 Tokyo Olympics and Paralympics ..................................................................... 20
1. Promoting Innovation and Social Implementation of Technologies Toward
Realizing Society 5.0 and SDGs. ............................................................................ 20
1) Accelerating the Realization of Society 5.0 ..................................................... 202) Social Innovation toward Achieving SDGs ..................................................... 22
2. Investing in Human Capital for Those Playing Important Roles in Society 5.0 and
Creating an Environment Suitable for Child Rearing ............................................. 23
3. Infrastructure Development for the Era of 60 Million Inbound Tourists ................ 24
4. Improvement of Infrastructure to Support Productivity Enhancement ................... 25
5. Supporting Private Consumption in a Seamless Manner ........................................ 26
6. Promotion of Corporate Governance Reform, etc. ................................................. 27
Chapter 3 Size and Economic Impact of the Measures................................................28

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Comprehensive Economic Measures toCreate a Future with Security and Growth
Chapter 1 Current Conjuncture of the Economy and Basic
Concept of the Economic Measures
I.

Current State of the Economy

Through the promotion of Abenomics for nearly seven years, the Japanese
economy is no longer in a deflationary situation, and has continued recovery at a moderatepace, with GDP achieving a record-high level both in nominal and real terms. Proactive
investments compatible with the new era are being implemented, such as ICT investments
by non-manufacturers, with wage growth rate recording the highest level in this century
for six years in a row. Although the regional economy is still in a difficult situation,
proactive momentum of a virtuous cycle has been initiated, with disparity in businesssentiment between regions smaller than that in the mid-2000s’ recovery phase. As forthe global aspect, the number of inbound tourists has reached a record high level of over
30 million, and opportunities for the Japanese economy have been spreading with theentry into force of TPP11 and the Japan-EU EPA as well as the Japan-United States Trade
Agreement. Meanwhile, in regard of the consumption tax rate hike in October 2019,
last-minute demand and drop-off following the hike seem to have been not so much as
the last hike (April 2014), while sales have declined in some parts of the economy owing
partly to the influence of typhoons, due to a series of measures, including a reduced tax
rate and temporal and special measures, taken in relation to the hike. The Japanese
Government (hereinafter referred to as “the Government”) continues to be vigilant about
the impacts of the consumption tax rate hike very closely and to steadily implement themeasures.
On the other hand, on the external front, the Government has to pay the maximum
attention to the downside risks originating from overseas economies, with the existenceof numerous uncertainties, such as tensions over trade issues between the U.S. and China,
the prospects of the Chinese economy, and potential outcomes of the UK’s withdrawal
from the EU, as well as impacts of the situations in the Middle East, Hong Kong. With
the outlook of the growth rate of the world economy revised down repeatedly, exports areshowing signs of weakness, and business sentiment and other indicators also seems to be
weak especially in the manufacturers. It is the situation that comprehensive policy
actions are called for preemptively so that not only external demand but also domestic
demand including private investment and private consumption, be not subdued by thematerialization of risks originating from overseas economies. In addition, a series ofnatural disasters, such as Typhoon No. 15 (Typhoon Faxai) and No.19 (Typhoon Hagibis)of 2019, brought about tremendous damages, which exceed those of last year, resulting
in significant impacts on economic activity, such as nariwai (occupations and livelihoods
that sustain people’s daily lives) and sightseeing in the afflicted areas. Policy actions tosecure people’s livelihoods and security of life against natural disasters, which may
happen at any time in the future, are seriously called for.
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As the Japanese economy maintains a recovery trend, albeit at a moderate pace,with risks originating from overseas economies coming into sight, it is high time for theGovernment to encourage all groups of people to accelerate their efforts for the future
toward the realization of Society 5.0, rather than just reactive emergency measures.
Thereby, the Government has to build an economic structure which is robust to risks andensure the realization of strong economic growth path. With the basic concept of“Without economic revitalization, there can be no fiscal consolidation” in mind,
economic growth on a solid footing is essential for the realization of fiscal consolidation
targets and the establishment of a social security system in which everyone can feel secure.
The Government is required to advance and accelerate the outcome of Abenomics bytaking decisive action and secure a path toward the exit from deflation and economic
revitalization.

II.

Basic Stance behind the Economic Measures

Against abovementioned background, while the Bank of Japan is tenaciously
continuing powerful monetary easing, it is time for the Government to take bold fiscal
policies to ensure that the Japanese can economy overcome various downside risks andprovide people a sense of security for the future by formulating a new economic package
based on the following concepts. Simultaneously, the Government will implement
various regulatory and institutional reforms, such as rule-making in the digital market andrefinement of regulations in accordance with social implementation of digitaltechnologies which were incorporated in the Growth Strategy Action Plan 1.
First, as to the damages caused by a series of natural disasters, the Government
needs to accelerate restoration and reconstruction seamlessly, by steadily implementing
the “Policy Package Towards the Rebuilding of Lives and Nariwai in the Affected Areas 2”
by utilizing contingency funds 3. In addition, to secure people’s sense of security, theGovernment has to promote measures for prevention and mitigation of disasters andnational resilience more intensely.
Second, against the concerns that downside risks originating from overseas
economies, such as the impact of tensions over the U.S.–China trade issues, materialize
and cause adverse impacts on the domestic demand which has sustained economic
recovery so far, it is essential that the Government implements thorough measures toprepare for those concerns in advance and intensively supports SMEs and small
enterprises, agriculture, forestry and fisheries industry and regions, which take on achallenge for the future including productivity enhancement and overcome various risks.
It is also essential to strongly support overseas operations of companies, including M&A
and infrastructure exports and activities of the “employment ice-age” generation at

1

Decided by the Cabinet on June 21, 2019.
Decided by the Emergency Response Headquarters for Typhoon No. 19 of 2019 on November 7,
2019.
3 On November 8, 2019, the use of the contingency funds of the general account in FY2019, whichis 131.6 billion yen, was decided by the Cabinet.
22

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various opportunities.
Third, while concerns for business condition after the 2020 Tokyo Olympics andParalympics are pointed out, the Government has to maintain and strengthen economic
vitality by enhancing productivity through the promotion of innovation toward socialchange, such as the realization of Society 5.0 and SDGs, and of investment in leadingedge technologies and human capital, and by continuously taking inbounds in andseamlessly supporting domestic consumption as well.
Based on the new economic package, the Government takes timely and thoroughactions, under the concept of a 15-month budget, by formulating the Supplementarybudget for FY2019, appropriately combined with the Initial budget for FY2019 including
the contingency funds and temporal and special measures allocated at the FY2020 Initialbudget, etc. Also, by taking advantage of prevailing low-interest rates, the Government
actively utilizes the Fiscal Investment and Loan Program (hereinafter referred to as“FILP”). With swift and steady implementation of the economic package, theGovernment will not only boost demand in the short-term but pave the way for theprospect that economic growth can be sustained beyond the 2020 Tokyo Olympics andParalympics. Thereby, the Government aims at realizing sustainable economic growth
mainly led by private demand, through encouraging proactive actions by businesses andhouseholds, such as continuous inducement of private investment and wage hikemomentum via effective use of corporate cash reserves, 4 and accompanying increase in
private consumption.

4

The balance of cash reserves in the corporate sector was approximately 240 trillion yen at the endof FY2018.
3

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Chapter 2 Measures to Implement
Based on the basic stances mentioned in Chapter 1, the new economic package
has the characteristics of ensuring that the Japanese economy overcomes economic
downside risks and is conducive to the realization of sustained economic growth led
mainly by private demand through improving productivity and growth potential, in
addition to accelerating the restoration and reconstruction from the natural disasters.
Specifically, the new package consists of three pillars, “I. Restoration and Reconstruction
from Natural Disasters and Securing Safety and Security”, “II. Intensive Support for
Those Striving to Overcome the Economic Downside Risks” and “Investing for the
Future and Maintaining and Enhancing Economic Vitality Beyond the 2020 Tokyo
Olympics and Paralympics,” containing the measures to implement as described in thefollowing sections, based on the idea of wise spending.

I. Restoration and Reconstruction from Natural Disasters andEnsuring Safety and Security
Against the tremendous damage caused by disaster such as Typhoon No. 15(Typhoon Faxai) and No.19 (Typhoon Hagibis) of 2019, based on the “Policy Package
Towards the Rebuilding of Lives and Nariwai in the Affected Areas,” the Government
accelerates restoration/reconstruction and addressing the stagnation of economic activity
in the afflicted areas in a seamless manner, through newly formulated Supplementarybudget for FY2019 in addition to the Initial budget for FY2019 including contingency
funds 5 whose allocation has already been decided.
Under the circumstances of natural disasters causing severe damage almost every
year, the Government will continue to steadily implement the “Three-Year Emergency
Response Plan for Disaster Prevention, Disaster Mitigation and Building National
Resilience, 6” and will further strongly promote the related measures based on the lessons
learnt from the experience of damage by typhoons this year, in particular countermeasures
for flood controls including non-structural measures, in order to construct national land
which is robust and resilient to disasters. Thereby, the Government will continuously
conduct the long-range national plan to safeguard people’s lives and property.
With regard to public works listed in this new economic package, not limited tothose in this section, the Government takes every action to ensure smooth project
implementation, depending on each area’s situation, by the procurement of human andphysical resources with appropriate prices, the measures to enhance productivity throughutilization of new technologies such as ICT, and by providing an environment to retain

5

On November 8, 2019, the use of the contingency funds of the general account in FY2019 was
decided by the Cabinet for (1) removing waste and dirt, rebuilding houses, and providing financial
support in order to reconstruct life; (2) supporting SMEs and small enterprises, supporting thoseengaged in agriculture, forestry and fisheries, and taking countermeasures to boost tourism demandin order to reconstruct livelihoods; (3) removing waste and dirt in rivers, and preventing secondary
disasters in order to restore emergency disaster control of public civil engineering facilities; and (4)emergency rescue such as temporary housing, and activities of the Self Defense Forces in order toprovide disaster relief.
6 It was decided by the Cabinet on December 14, 2018.
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(Provisional Translation)required workers in local construction industries, with strengthened cooperation withlocal governments.

1. Acceleration of Restoration and Reconstruction from Natural Disasters
In the afflicted areas of the typhoon disasters, the Government continues to rollout hands-on support toward the reconstruction of nariwai to those affected, such as groupsubsidies and financing support for SMEs and small enterprises that have suffered hugedamage, and support for rebuilding of lives for those in the agriculture/forestry/fisheries
industries, etc., in addition to advancing measures such as support for learning by children,
support for physical and mental health consultation for pregnant/parturient women andinfants, visits to elderly people and seamless support for consultation on daily life, anddebt consolidation of victims 7. Moreover, the Government plans to comprehensively
restore rivers and roads, etc. that suffered tremendous damage at the hands of the disasters,in addition to restoring facilities and buildings. In so doing, in case that sufficient
outcome cannot be expected only through restoration projects, the Government will
support the improvement of the affected facilities/buildings and neighboring ones in
addition to restoration, to prevent repeated damages in the future, by combining
expenditure for improvements and that for restoration.
Meanwhile, the Government continues to tackle the restoration andreconstruction of areas affected by disasters such as the Great East Japan Earthquake, the2016 Kumamoto earthquake and heavy rains in July 2018.
・ Support the demolition of affected houses, steady management of disaster waste, andthe removal of dirt (Ministry of the Environment [MOE], Ministry of Land,
Infrastructure, Transport and Tourism [MLIT])
・ Provide mental healthcare, support for commuting to school, and reduction andexemption of school fees for affected children (Ministry of Education, Culture, Sports,
Science and Technology [MEXT])・ Visit elderly people, etc. to prevent them from becoming isolated and provide
consultations on and support for daily lives <Other than budgetary support> (Ministryof Health, Labour and Welfare [MHLW])・ Support the restoration of affected railways and the operation of substitute busses(MLIT)
・ Post-disaster recovery project on joint facilities of small business associations, etc.
(Group subsidies for SMEs, etc.) (Ministry of Economy, Trade and Industry [METI])・ Support project for the reconstruction of local companies (subsidies in collaboration
with local governments) (METI)・ Support the reconstruction of those engaged in agriculture, forestry and fisheries<Including FILP> (Ministry of Agriculture, Forestry and Fisheries [MAFF])
・ Post-disaster recovery project proactively utilizing the improvement and restorationof public civil engineering facilities such as rivers, roads and harbors (MLIT)
・ Increase special local allocation tax (Ministry of Internal Affairs and Communications[MIC])
7

Utilization of the Guidelines for Debt Consolidation on Natural Disasters (developed in December2015).
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(Provisional Translation)and others

2. Strong Promotion of Disaster Prevention, Mitigation and Building
National Resilience
1) Steady Implementation of the Three-Year Emergency Response Plan
As for the “Three-Year Emergency Response Plan for Disaster Prevention,
Disaster Mitigation, and Building National Resilience,” which is currently being
implemented with finances from the second Supplementary budget for FY2018 andtemporal and special measures included in the FY2019 Initial budget, the Government
will put aside the required budgets under the temporal and special measures in the Initialbudget for FY2020, the third year of the project, and will steadily implement a variety ofmeasures, both structural and non-structural, such as maintaining the facility of criticalinfrastructure both for disaster prevention and for supporting the economy and people’s
lives. Besides, the Government will strengthen the measures against large-scaledisasters and further enhance the system to recycle plastic waste emitted due to disasters.
・ Urgent action against the risks at the time of riverbank breakage and floods from rivers,
and urgent action against tidal waves at coast banks, etc. (MAFF, MLIT)・ Reinforce hydraulic structures for agriculture, reservoirs, facilities for forest
conservation, fishing ports, farm greenhouses, etc. (MAFF)
・ Make school facilities (certified child centers, public schools, private schools,
national technical colleges and national university corporations) resistant against
earthquakes (MEXT)
・ Make medical facilities and social welfare facilities (those for the elderly, persons
with disabilities and children, etc.) resistant against earthquakes (MHLW)・ Prepare and promote landslide hazard maps in local governments where disaster-risk
information has not sufficiently been developed (MLIT)
・ Promote the non-use of utility poles on emergency transportation roads in urban areas(MLIT)・ Urgent action on important airports for air transportation, road slopes andembankments, major foreign-trade container terminals, slopes adjacent to railways,
and railways river bridges (MLIT)
・ Secure disaster response capability of the police and improve the disaster resistanceof traffic lights (National Police Agency [NPA])・ Increase the equipment and the vehicles of National Fire Service Team and volunteer
fire corps (MIC)・ Improve equipment related to disaster prevention, including making Self Defense
Force facilities resistant against earthquakes (Ministry of Defense [MOD])・ Urgent action on the development of a waste management systems in preparation fora large-scale disaster (MOE)・ Launch a project for promoting the introduction of sophisticated facilities such as lowCO2 recycling (MOE)・ Urgent action on articles that drift ashore, etc. (MOE)and others6

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2) Further Strengthening of National Resilience Projects Focusing on FloodControl Measures
Focusing on the issues of flood control management, which became evident aftera series of recent typhoon disasters, the Government will further strengthen the measures
towards prevention and mitigation of disasters and national resilience using finances of
newly formulated Supplementary budget for FY2019, in preparation for the next typhoonseason. Specifically, with a view to preventing and minimizing damage and repeateddamage caused by heavy floods and landslides, the Government will swiftly implement
the following five items, namely, 1) excavations of rivers and reinforcement of banks atrivers with a high possibility of floods occurring, 2) construction of facilities andbuildings, etc. for storage rain water to strengthen measures against inland water flooding,3) measures to prevent flood damages at multiple-dwelling complexes and housing
estates in tandem with urban district redevelopment projects, 4) prevention of collapse ofrevetments, etc. caused by high tides, etc. and 5) making more resilient the infrastructure,such as hydraulic structures for agriculture, small reservoirs, facilities for forest
conservation, forests, fishing ports and water utilities, etc. Furthermore, in addition tosecuring necessary information for evacuation, such as provision of flood risk information
for rivers where the flood-assumed figure is not yet prepared, the Government willconsider the ideal utilization of land, etc., and ensure that structural and non-structural
measures are implemented to create synergy effects.
The Government will also promote to strengthen the functions of road networks
to secure transportation and logistics in the case of disasters and to lay underground thepower lines along access routes connected to the disaster management hubs out of theemergency traffic routes in urban areas. Also, in addition to the acceleration of making
water utilities and "Johkasou" (i.e. a Japanese technology of decentralized domestic
wastewater system) more resilient, the Government, based on the idea that coping withclimate change is also conducive to disaster prevention (“climate change × disasterprevention”), will promote the introduction of ZEBs 8 (Net Zero Energy Buildings) tofacilities and buildings with high public use, which allow stable energy supply evenduring electric outage, and promote the use of non-industrial wastes disposal facilities asa hub for times of disaster. Furthermore, the Government will advance the introductionof ZEHs (Net Zero Energy Houses), which are equipped with storage batteries etc. andless vulnerable to disasters.
Furthermore, based on the experience of recent disasters, the Government will
promote installing emergency power systems and water supply facilities at medical
facilities and social welfare facilities (those for the elderly, the challenged and children,etc.) which are used as hubs in times of disaster, improving the disaster preventionfunction of urban parks and Michi-no-Eki (roadside stations) as a shelter, and reinforcing
disaster prevention capacities to cope with large scale disaster by enhancing facilities of
the SDF (Self Defense Force), the equipment and vehicles of National Fire Service Team,
police and TEC-FORCE (Technical Emergency Control Force) .
・ Take flood countermeasures by excavating river courses and reinforcing banks at
8

ZEB: Net Zero Energy Building. ZEH: Net Zero Energy House. Buildings and houses that aim toachieve a zero-energy balance of annual primary energy that is consumed in the establishment while
realizing a comfortable indoor environment.
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・
・
・
・
・
・
・
・
・

・
・
・

・
・

・

・
・
・
・

9

rivers with a high risk of flooding (MLIT)
Develop core disaster-prevention infrastructure (leading projects) 9 (MLIT)
Take disaster-prevention measures intensively in flood-affected areas to prevent
repeated damages. (MLIT)
Improve rainwater storage facilities, etc. for enhancing measures against inland
floods (MAFF, MLIT)
Take measures for flood-damage prevention for condominiums and housing
complexes associated with urban redevelopment projects, etc. (MLIT)
Take measures to prevent the breakage of revetments due to tidal waves andprotective measures for the entire area (MAFF, MLIT)
Reinforce hydraulic structures for agriculture, reservoirs, facilities for forest
conservation, forests and fishing ports, etc. (MAFF)
Promote the introduction of indoor receivers for the Disaster Prevention and
Administrative Radio System (MIC)
Eliminate utility poles on emergency transportation roads in urban areas (MLIT)
Promote the non-use of utility poles and improve electricity transmission anddistribution networks through the Development Bank of Japan 10 <FILP> (Ministryof Finance [MOF])
Eliminate missing links in roads that support local transportation, etc. at the time ofdisaster (MLIT)
Support to introduce ZEB to the facilities and buildings with high public use (MOE)
Support the introduction of private power-generation facilities, power-feedable
vehicles and charge-discharge facilities to energy supply bases and shelters, etc.
(METI)
Deploy mobile power supply vehicles to Bureaus of Telecommunications to secureimportant communications at the time of disaster (MIC)
Develop water supply and emergency private power-generation facilities at medical
facilities and social welfare facilities (those for the elderly, persons with disabilities
and children, etc.), which will be used as hubs in an emergency (MHLW)
Develop infrastructures not to lose social and transportation functions at the time ofdisaster, including measures to prevent railway and road bridges from being damaged(MLIT)
Measures against the aging infrastructure (MLIT)
Improve the disaster-prevention function of urban parks and Michi-no-Eki (roadsidestations) as a shelter (MLIT)
Develop an emergency information-sharing system at social welfare facilities (thosefor the elderly, persons with disabilities and children, etc.) (MHLW)
Provide flood-risk information for rivers where a flood hazard map is not yet
prepared and take measures against access concentration of disaster-prevention
information (MLIT)

Preferential projects on flood-control reservoirs and dams that protect the backbone of Japan’ssociety and economy.
10 In addition to this, urban redevelopment, infrastructure development for 5G, and reallocation of
production bases of enterprises developed overseas are to be carried out through the Development
Bank of Japan.
8

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・ Enhance observation systems such as weather radars and AMeDAS to improvetyphoon information (MLIT)・ Develop disaster-resistant waste treatment facilities and "Johkasou", a Japanesetechnology of decentralized domestic wastewater system (MOE)and others

3. Securing Public Safety and Security
With damage from disasters becoming ever more severe, the Government, in
addition to the measures mentioned in the Section 2, will further advance the measuresfor prevention and mitigation of disasters and national resilience in areas other thandamage from typhoons, in order to safeguard people’s lives and property. Thus, theGovernment will promote disaster prevention measures for various facilities by taking
into consideration the deployments of advanced technology and climate change strategy,
implement measures to prevent fire and disaster for cultural property, and develop basetechnologies of drones toward wider uses including disaster management, etc. Also,
central and local governments will cooperate to prevent and mitigate disaster, for instance,by strengthening the disaster management and damage control capacity of the SDF, policeand firefighters, improving information transmission systems, and raising awarenessamong the people for disaster prevention. Furthermore, the Government will implement
measures to secure public safety and security by ensuring the stable operation of the SDF
to cope with ever more rapidly changing national security environment, and by taking
thorough measures to prevent the occurrence and spread of domestic animal infectious
diseases.
・ Improve the disaster prevention function of school facilities (public schools, national
technical colleges, national university corporations and private schools) (MEXT)・ Measures to prevent fire and disasters for cultural resources (MEXT)
・ Make efforts to reconstruct Shuri-jo Castle (MLIT, Cabinet Office [CAO])
・ Develop technology to promote real-time sharing of disaster information utilizing the
SIP4D 11 to support affected areas (CAO)・ Improve and promote the development of the disaster function of the quasi-zenithsatellite system (CAO)
・ Enhance the bases for data observation and research, including the renewal of theobservation networks for earthquakes, tsunamis and volcanoes (MEXT)
・ Promote the improvement of the disaster-prevention function and RE100 12 of naturalpark facilities (MOE)・ Enhance the disaster-response capabilities of the Self Defense Forces (MOD)・ Enhance the disaster-response capabilities of the fire service organizations (MIC)・ Enhance the early warning and disaster information sharing system for residents(increased functions of J-alert and L-alert) (MIC)・ Promote a diversified energy system that enables independent energy supply at the11

SIP4D: Shared Information Platform for Disaster Management. A foundational disaster
information and distribution network developed as part of the Strategic Innovation Promotion
Program (SIP).
12 RE100: 100% renewable energy. An international initiative that aims to have enterprises source
100% of the electricity consumed for their businesses from renewable energy.
9(Provisional Translation)

time of disaster (MIC)・ Enhance the safety of regional railways and promote barrier-free public transportation(MLIT)・ Secure stable operation of the Self Defense Forces (MOD)・ Establish a strategic maritime security system, etc. (MLIT)
・ Urgent action on road safety of preschool children, etc. (MLIT)
・ Strengthen measures against domestic animal infectious diseases such as CSF and ASF 13(MAFF, MOE)
and others

13

CSF: Classical Swine Fever. ASF: African Swine Fever.
10(Provisional Translation)

II.
Intensive Support for Those Striving to Overcome Economic
Downside Risks
Materialization of risks originating from overseas economies such as impacts oftensions over trade issues materialize could push downward pressure on domestic demand,
leading to the impairment of economic virtuous cycle. To preemptively prepare forthese eventualities, the Government will intensively support those who face various risks
or difficulties but endeavor to make effort for the future, with measures such as to enhance
productivity leading to an increase in earning power. The Government will sweep away
concerns about economic downturn and stagnation, and ensure the virtuous cycle of theeconomy is firmly maintained toward the realization of sustainable growth path.
With regard to SMEs and small enterprises who face various challenges such aslabor shortages in addition to downside risks originating from overseas economies, theGovernment will create an environment where they can improve their productivity byproviding wide ranging support for areas such as the deployment of ICT and digitaltechnologies, human resource development, improvement of the transaction structure visà-vis large-scale enterprises, and promotion of business succession and restructuring.
For those in the agriculture, forestry and fisheries sector and SMEs facing a more global
trade and investment environment than in the past, including through TPP11, the JapanEU EPA and Japan-United States Trade Agreement, the Government, based on the”
Comprehensive TPP-Related Policy Framework 14,” will strengthen export capabilities
and facilitate overseas expansions so that they can take full advantage of opportunities
and enhance their value added. For the regions struggling with the ongoing ageing anddeclining population, the Government will actively support local governments that strive
to open up the future with their own will and initiatives and encourage the flow of humancapital from metropolitan areas to rural areas.
For the “employment ice-age” generation who could not find jobs with desirable
conditions in the past amid the adverse employment environment and still suffers fromvarious difficulties, the Government will, with concerted efforts with private sector,
boldly support them with intensive measures to ensure that they can find more
opportunities to play an important role.

1. Developing an Environment for Enhancing Productivity of SMEs
Enhancing productivity of SMEs and small enterprises, whose share in terms of
employment and value added in the Japanese economy is around 70 percent and morethan 50 percent, respectively, is a critical challenge for the expansion of a virtuous cycleof the economy, both for the Japanese economy as a whole and for regional economies.
At present, SMEs and small enterprises have difficulties with labor shortages and need toaddress issues such as the Work Style Reform, etc. in addition to risks originated fromoverseas economies. The Government provides bold support and create an environment
so that they can overcome risks and endeavor to make efforts to enhance productivity.
To this end, the Government reinforces and expands support for areas such as the
deployment of ICT and digital technologies rather than just the introduction of
conventional equipment, human resource development and career advancement ofworkers, the development of proper transaction structure vis-à-vis large-sized enterprises,
14

It was decided by the Headquarters of Comprehensive TPP Measures on December 5, 2019.
11

(Provisional Translation)and the acceleration of structural reforms such as business successions and restructuring.
Through these measures, the Government, with closely watching the actual situation of
SMEs and small enterprises and taking those into account, will firmly support them foradaptation to Work Style Reform and application of employment based social insurance,
continuous momentum of wage increases and smooth implementation of invoice credit
method on the consumption tax.
1) Promotion of Business Investment and Support for Deployment of ICT and
Digital Technology
In order for SMEs and small enterprises to cope with a series of institutionalchanges abovementioned, the Government will establish the scheme to continuously
conduct various supports for the efforts contributing to productivity enhancement, suchas deployment of advanced technologies, in multi-year basis, including support for theinvestment to develop innovative products/services, for market exploitation by small
enterprises, and for the introduction of IT tools, and will take responsibility of securing
necessary fiscal resources. In so doing, the Government will introduce a system where
SMEs and small enterprises can receive subsidy on a priority basis if, for example, they
actively engage in wage increases and/or apply for employment based social insurance
on a voluntary basis ahead of related social security reform. Also, the Government will
mitigate administrative costs incurred by SMEs and small enterprises via steadily
advancing simplification and digitization of the application for subsidies, which consists
significant burden to them. Furthermore, the Government will reinforce the system
which provides detailed hands-on support, for example, by ensuring the supply of experts
who have abundant know-how tailored for each industry that faces challenges toenhancing productivity. In addition to cross-cutting measures across industries, theGovernment will taking measures to support the action to enhance productivity which
deals with the management challenges of each industry.
・ Launch “SME productivity revolution promotion project” (METI)・ Support for SMEs and small enterprises to raise the minimum wage (MHLW)・ Project to strengthen the support system to increase the productivity of SMEs andsmall enterprises (METI)・ Support the financing of SMEs and small enterprises <Including FILP> (METI,
MOF)
・ Project to promote increases in productivity at long-term care facilities (MHLW)・ Project to promote increases in productivity in environmental health related business(MHLW)・ Increase the productivity of local construction companies utilizing the Construction
Career Advancement System (MLIT)
・ Support the introduction of the efficiency of cargo handling to small and mediumsized tracking companies (MLIT)
・ Extend measures to expand quantity and frequent discounts of expressway tolls toincrease the productivity of logistics (MLIT)・ Launch a project to increase the productivity of local public transportation andlogistics (MLIT)
and others
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(Provisional Translation)2) Support for Workers at SMEs and Small Enterprises
To cope with the labor shortages faced by SMEs and small enterprises andenhance productivity through human capital investment such as skill acquisition, theGovernment will take various measures, such as the expansion of support for capacity
development and career enhancement of workers, establishment of career-path withwhich talented employees with working experience at large-sized enterprises can play animportant role at start-ups or SMEs, intensive support to cope with Work Style Reform,and support for the application of employment based social insurance, etc.
・ Relax the requirement for human resources development support subsidies <Other
than budgetary support> (MHLW)・ Relax the lower limit of the training period, etc. for training to support job seekers<Other than budgetary support> (MHLW)・ Project to strengthen the support system to increase the productivity of SMEs andsmall enterprises (METI) (listed twice)・ Project to promote the activities in local regions by talent with working experienceat large enterprises (METI)・ Inform SMEs, etc. of the application of employees’ insurance, and provide support
by experts (MHLW)
and others
3) Further Promotion of Proper Transaction Structure
After analyzing the situation of profit, added value, distribution between laborand capital income for each industry, type and size, the Government will share theanalyzed picture with concerned industries and will present an ideal form of supply-chain
by the end of FY2019, where which large-scale businesses and SMEs can grow together.
Also, towards a proper transaction structure, the Government will take concrete measures,such as thorough revision and observance of the development standard (transaction rule)of Act on the Promotion of Subcontracting Small and Medium-sized Enterprises,
reinforcement of monitoring of voluntary actions by industries, and strict treatment of
subcontractor-related laws and ordinances.
・ Present the way large enterprises and SMEs can co-exist and co-prosper on the basisof the data on the analysis of transaction structures and transaction situations byindustry <Other than budgetary support> (METI)・ Establish a hearing system in accordance with the characteristics of the business typefor subcontracting survey officers to understand the situations of subcontracting inorder to further refine the assessment of situations <Other than budgetary support>(METI)
・ Revise the development standards of Act on the Promotion of Subcontracting Smalland Medium-sized Enterprises in order to ensure complete observance of fair rules
through instructions to large enterprises and parent companies based on thedevelopment standards <Other than budgetary support> (METI)
and others
4) Acceleration of Business Succession and Business Restructuring such as
Removal of Business Owners’ Personal Guarantees
13

(Provisional Translation)

To advance business successions intensively, the Government seamlessly
supports both at the stage before succession (notifying managers the needs of businesssuccession and dispatching experts) and after succession (training candidate successors,
supporting business innovation, etc.).
To get rid of the prevailing practice of personal guarantees, which has been
regarded as a bottleneck of business successions, the Government actively supports SMEs
through the support from experts toward removing manager’s personal guarantees 15 .
The special provisions of the “Guidelines on Business Owners’ Personal Guarantee”
focusing on business owners’ succession will also be developed.
・ Intensive support project for business succession and generation transition (METI)・ Support for the termination of business owners’ personal guarantee at the time ofbusiness succession (METI)・ Develop special provisions of the Guidelines on Business Owners’ Personal
Guarantee <Other than budgetary support> (Financial Services Agency [FSA],
METI)

2. Facilitation of Overseas Business Operations
To overcome downside risks originating from overseas, capture continuous
foreign demands and enhance productivity, the Government will support middle-sizedenterprises and SMEs to expand their business operations in external markets including
members of TPP11, the Japan-EU EPA and the Japan-United States Trade Agreement, by
providing detailed information, and will assist business partnerships with foreigncompanies including open innovation. Also, to promote Japanese companies’ overseas
business expansion, the Government strongly supports their efforts such as overseas
M&A, global value chain restructuring, and quality infrastructure exports, including by
utilizing FILP.
・ Support middle-sized enterprises and SMEs with overseas operations (enhancing a
support system centering on “Consortium for New Export Nation” through the Japan
External Trade Organization) (METI)・ Support Japanese companies’ overseas business expansion such as overseas M&A
and global value chain restructuring, and the development of quality infrastructure
through the Japan Bank for International Cooperation (establishing the “Growth
Investment Facility (tentative name)”) <Including FILP> (MOF)
・ Improve overseas business and investment environments through the Japan
International Cooperation Agency (MOF)・ Support project to create new businesses such as “Asia DX” (METI)・ Enhance international competitiveness in ICT through exporting quality ICT
infrastructure, etc. (MIC)・ Provide support for private companies that develop natural gas, etc. and purchaseassets (METI)
15

In the credit guarantee system, where a manager’s personal guarantee is not required uponbusiness succession, which is to be established in the next fiscal year, a measure to reduce theguarantee fee will be taken in the case where an expert checks the transparency in accounting andother factors upon business succession.
14

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・ Japan Content Localization and Distribution project (METI)・ Project to enhance overseas expansion of broadcasting contents (MIC)and others

3. Making Agriculture, Forestry and Fisheries a Growth Industry and
Accelerating Enhancement of Exporting Capacity
With the Japan-United States Trade Agreement following the entry into force of
TPP11 and the Japan-EU EPA, the agriculture, forestry and fisheries sector of our country
will enter into a new international environment. With wiping away concerns andanxieties against tariff reductions at the production fronts, the Government reinforces
production bases and establishing the industry and related rural areas which are robustand export-oriented, so as to cope with demands both from domestic and overseas, bymaking best use of newly-gained opportunities.
1) Succession and Reinforcement of Production Bases and Strengthening ofInternational Competitiveness, etc.
The Government will take comprehensive measures so that those engaged inagriculture, forestry and fisheries with a willingness to work, regardless of size, including
those who work in less favored areas such as mountainous rural areas, can feel secure andconcentrate on their business by enabling succession and reinforcement of production
bases in order to ensure reproduction, including for meeting domestic demand, withstrengthening international competitiveness. Also, to address labor shortages andsuccessor issues, the Government will prepare a system for accepting newly employedworkers from wide-ranging generations, including those of the “employment ice-age”
generation (see 5 of this section).
・ Project to improve the power of production bases of farms (MAFF)
・ Make farmland larger sized and more generalized (MAFF)
・ Turn paddy fields into dry fields and make dry fields and orchards highly functional(MAFF)・ Improve infrastructure that contributes to the development of hilled rural areas(MAFF)・ Expand support for small and medium-sized businesses and family-run businesses inlivestock cluster projects to increase the number of Japanese wagyu and dairy cattle
and their production, and promote the development of grass fields to boost livestock
cluster projects (MAFF)
・ Provide support for the succession of livestock operation bases (succession of family
management resources in the region) (MAFF)
・ Facilitate and advance livestock waste treatment (nationwide promotion of soil
development by applying compost) (MAFF)
・ Take measures to enhance the competitiveness of domestically produced cheese(MAFF)・ Take urgent action such as restructuring of processing plants (MAFF)
・ Take measures to enhance international competitiveness and to promote the exportof plywood, lumber and laminated wood (MAFF)
15

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・
・
・
・

Emergency program to enhance competitiveness of the fisheries industry (MAFF)
Measures of stabilizing income in the fishery (MAFF)
Secure and foster new workers engaged in agriculture, forestry and fisheries (MAFF)
Project to develop and verify smart agricultural technology (MAFF)
and others

2) Strategic Exploitation of Foreign Demand and Further Increase of Exports
To take full advantage of TPP11, the Japan-EU EPA and the Japan-United States
Trade Agreement, the Government will reinforce the strategic promotion and the support
for foreign market exploitation of agricultural, forestry and fisheries products and foodproducts.
For further increasing exports of agricultural, forestry and fisheries products, theGovernment will establish the Headquarters for Export of Agricultural, Forestry and
Fishery Products and Food at MAFF in April 2020 to cope with regulations set by importcountries including food security, etc., and reinforce the development of production sites
oriented to global market by promoting GFP (Global Farmers, Fishermen, Foresters, Food
Manufacturers Project). The Government will develop a system to increase theproduction of wagyu and dairy cattle whose demands from overseas are expected toincrease, and enrich exporting facilities for food-processing/butchering and communal
facilities for fisheries products, etc.
・ Emergency countermeasures to support the creation of foreign demand, etc. and todevelop the export environment (including efforts for mitigation or repeal of importregulations) (MAFF)
・ Promotion and support of the Rice Overseas Market Expansion Strategy Project(MAFF)
・ Project to expand demand in collaboration with the food service industry, etc.
(MAFF)
・ Emergency countermeasures to create global production sites (MAFF)
・ Enhance the production bases for beef cattle and dairy products through sexing
technology and embryo transfer (MAFF)
・ Project to develop facilities for expanding exports of agricultural and livestock
products (MAFF)・ Urgent action to develop HACCP-compliant facilities for export in the food industry(MAFF)
・ Project for the distribution restructuring and export promotion of meat (MAFF)
・ Emergency countermeasures to expand exports of fishery products (MAFF)
・ Measures to enhance international competitiveness and to promote the export ofplywood, lumber and laminated wood (MAFF) (listed twice)・ Enhance competitiveness and promote overseas expansion of alcohol beverages
produced in Japan (MOF)
and others

4. Further Promotion of Regional Revitalization
The Government strongly supports actions taken by regions which endeavor toopen up their future with their own ideas. In addition to increasing the number of people16

(Provisional Translation)

who value the attractiveness of regions and accelerating the movement of people to suchregions, the Government establishes economic foundations of regions which strive toovercome downside risks by realizing growth and productivity enhancement of regional
enterprises through the movement of talented people to such regions.
1) Further Utilization of Measures to Revitalize Regional Economies
The Government will reinforce the voluntary, self-directed and effective
measures by local governments, depending on the actual circumstances of each region.
In addition to constructing the basis for the development of regions which strive to takechallenges for the future, the Government will help to increase the number of people who
settle, interact and have ties with regions by encouraging various measures taken byregions and realizing an attractive town. Also, the Government advances the measures
to further strengthen regional financial institutions’ intermediation functions for the
stakeholders in regional economies.
・ Regional Renovation Infrastructure Reinforcement Subsidies (CAO)・ Research and analysis projects to promote communities where everyone can play anactive role and to promote countermeasures for the low birth rate (Cabinet Secretariat[CAS])
・ Project to support regional comprehensive strategies based on the Regional Economy
and Society Analyzing System (RESAS) (CAO)・ Hold a “Regional Finance (Chii-kin) Summit” (provisional name) for therevitalization and problem-solving of regional economies (FSA)・ Enhance regional financial functions <Other than budgetary support> (FSA)・ Project to promote cashless payment for revitalizing regional economies (MIC)・ Measures to vitalize communities with rice terraces (MAFF)
・ Take urgent countermeasures for the Forest-related Service Industry (MAFF)
・ Project to increase the productivity of local public transportation and logistics(MLIT) (listed twice)・ Research to verify the effects of production incentives for large-scale films(CAO)・ Improve the brand power of Japan Heritage <Other than budgetary support> (MEXT)
・ Promote tourism in Okinawa with the budget for specified projects in the wake of the
Shuri-jo Castle fire (CAO, MLIT)・ Develop disadvantaged areas (including remote islands) (MLIT)
・ Promote visits by Japanese tourists by utilizing subsidies for maintaining andpromoting communities in specified manned isolated border islands (CAO)
and others
2) Reinforcement of Talent That Plays Important Roles in Regions
To realize growth and productivity enhancement through the introduction oftalents required to solve management issues of regional companies, the Government will
promote the matching of management-level and high-level talents with regional
companies by establishing “leading talent matching projects” and also support the startups and reemployment in rural areas by the middle-career talents with working
experiences at large-sized enterprises.
Also, to foster innovation and enhance
productivity of regional companies, the Government will support the projects of human17

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resource development for business purposes and the introduction of high-end facilities,
both conducted by local public research and development institutions and universities.
・ Establish leading talent-matching projects (CAO)
・ Project to promote the activities in local regions by talent working at large enterprises(METI) (listed twice)・ Improve infrastructure for regional innovation (METI)・ Promote the hometown working holiday scheme for adults (MIC)・ Provide support to facilitate the establishment of specified regional construction
cooperative associations <Other than budgetary support> (MIC, CAO)

5. Support for the “Employment Ice-Age” Generation
To broaden the fields where the so called “employment ice-age” generation canplay an active part, those who experienced job searching activities during the severe
employment environment, the Government will implement various measures, such as the
opening of the counters dedicated for that generation at public job placement offices, thedevelopment of recurrent education programs, support for companies to hire them,including a review and expansion of existing assistance schemes, as well as measures toreinforce or accelerate support so that those who were long-term social
withdrawals(hikikomori), etc. can participate in society.
In order to steadily implement the “Program to Support Employment of the IceAge Population,” which was formulated in June 2019 and includes the above-mentioned
measures, the Government formulates an action plan by the end of 2019 (including
various measures, such as “finish-to-start” integrated courses for the acquisition ofqualifications in short-term and internships, job entry support for workers who haveworked as non-regular status by making use of the know-how of private job matchingagencies, expansion of projects of regional support stations for youth, and reinforcementof support programs for social withdrawals, etc.). The Government will stably securenecessary fiscal resources to implement the action plan during the intensive
implementation period of three years and systematically implements measures tomaximize their effectiveness. In particular, in addition to boldly establishing andexpanding the consultation/assistance institutions’ capacity building and collaborations
with other organizations and support for the people themselves, the Government
continuously secures fiscal resources to support the leading and proactive regional
initiatives so that concerned stakeholders can feel secure and play their role.
Furthermore, the Government will promoted related measures through concerted efforts
between public and private sectors, including local governments and representatives fromtrade unions and business associations, by fostering momentum of the whole society andhorizontal expansion of good practices through nation-wide and region-oriented
platforms.
With a view to encouraging the “employment ice-age” generation to play anactive part by making the most of their motivation and abilities, and for the purpose ofactivating organizations, the Government will intensively promote recruiting of thesegeneration as national government officials for three years from FY2020 to FY2022.
Some ministries will start this initiatives ahead of time in FY2019, and all ministries willmaterialize their plans for action by next summer. Furthermore, the Government will
widely provide information on leading examples and request local governments to18

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promote the recruitment of those belong to the generation in question.
・ Establish dedicated contact points at HelloWork (public job placement office) to
provide team support by responsible persons (MHLW)・ Enhance trial employment subsidy (a subsidy for general trial course) <Other thanbudgetary support> (MHLW)・ Provide subsidies for employment development for specified job seekers (creation of
stable employment realization courses for the so called “employment ice-age”
generation) <Other than budgetary support> (MHLW)・ Relax the requirement for human resources development support subsidies <Other
than budgetary support> (MHLW) (listed twice)・ Relax the lower limit of the training period, etc. for training to support job seekers<Other than budgetary support> (MHLW) (listed twice)・ Promote loans for social welfare during skill acquisition to support the self-relianceof the so called “employment ice-age” generation (MHLW)・ Improve functions for providing consultation and support for self-reliance byenhancing outreach efforts, etc. <Other than budgetary support> (MHLW)・ Take measures to reinforce support for those who have been social withdrawal(hikikomori) in municipalities (MHLW)・ Support progressive and proactive efforts by the so called “employment ice-age”
generation in the region (CAO)
・ Promote the hometown working holiday scheme for adults (MIC) (listed twice)・ Launch a project to develop recurrent education programs on the teaching profession
intended for the so called “employment ice-age” generation (MEXT)・ Secure and foster new workers engaged in agriculture, forestry and fisheries (MAFF)(listed twice)・ Promote recruiting these generation as national government officials <Other thanbudgetary support> (CAS)19

(Provisional Translation)

III.
Investing for a Future, Maintaining/Enhancing Economic
Vitality Beyond the 2020 Tokyo Olympics and Paralympics
To accomplish the exit from deflation and economic revitalization, both of which
are top priority of Abenomics, the Government has to continuously develop robust
foundations for growth in the medium- to long-term, for example, through drasticenhancement of productivity, rather than just demand boost in the short-term. With thepost 2020 Tokyo Olympics and Paralympics period in mind, the Government iscommitted to continuing/reinforcing measures toward the sustainable economic growth
led mainly by private demand, on top of the outcomes of Abenomics thus far.
In this regard, the Government strongly promotes innovation which could bringabout driving forces of competitiveness in the upcoming era and is conducive toaddressing social challenges including the realization of SDGs such as global
environment issues, and accelerates social implementation and dissemination of advanced
technologies, so that the nation as a whole can accelerate the efforts toward realizing new
era of Society 5.0. At the same time, the Government, on top of implementing measures
to develop an environment suitable for childbearing, commits to investing in humancapital for children who will play important roles in the future of Society 5.0 era.
Beyond the 2020 Tokyo Olympics and Paralympics, the Government will
advance development of infrastructure conducive to continuous attraction of inboundtourism demand in anticipation of the era of 60 million foreign visitors (in 2030).
Infrastructure development such as logistic networks, which contributes to productivity
enhancement in the medium- to long-term, is also to be accelerated.
Bearing in mind the termination of current temporal countermeasures against theconsumption tax rate hike in October 2019 for the purpose of smoothing out demand
fluctuation, the Government will implement necessary measures to support private
consumption in a seamless manner, so as to contributing also to the establishment of acashless settlement basis which will be used for both private and public sector.
The Government further promotes corporate governance reform, and develops
institutional design for appropriate implementation pursuant to the objective of theamended Foreign Exchange and Foreign Trade Control Act, namely, ensuring minimal
review of foreign direct investment that could pose risks to national security andpromoting foreign direct investment conducive to sound economic growth.

1. Promoting Innovation and Social Implementation of Technologies
Toward Realizing Society 5.0 and SDGs.
For a sustainable and inclusive economic growth compatible with the global
environment, it is essential, toward the arrival of the Society 5.0 era and realization ofSDGs, to realize non-linear, destructive innovations, accelerate the social implementationand deployment of advanced technologies, and provoke reforms in various socioeconomics areas and lifestyles. The Government will comprehensively promote thesupport and institutional building for those purposes.
1) Accelerating the Realization of Society 5.0
Toward accelerating the realization of Society 5.0, the Government will expand
the “moonshot-type research and development program” which will contribute to20

(Provisional Translation)

disruptive innovations to health/medical and agriculture/forestry/fisheries areas, strongly
support “emergent research” with which a variety of researchers, especially younger ones,
can exert their potential, and bridge the gap between technology-seeds and social
implementation. Also, the Government will promote the development of post-5G
information/communication systems and semi-conductor technologies as a national
project involving both public and private sector, which would be one of the coretechnologies for the competitiveness of Japanese industries. Furthermore, knowledge
creating bases in the leading-edge areas will be developed through (i) accelerating thedevelopment of super-computers, which are conducive to the creation of innovation andaddressing social issues including prevention and mitigation of disasters, and (ii)accelerating the development of research bases for new frontiers such as AI, quantum, bio
technology and marine resource exploitation, all of which are key to competitiveness inthe future, and (iii) advancing systematically and steadily R&D projects in the field ofspace, including international space exploration projects (Lunar Gateway plan, etc.), forwhich the Government declared its intention to join in October 2019.
At the same time, social implementation and deployment of advanced
technologies contributing to addressing social challenges will be accelerated toward theSociety 5.0 era. To this end, the Government will promote the deployment of safe andtrustworthy 5G as early as possible. Also, in addition to making the installment of
brakes for mitigating damages due to crashes to newly manufactured cars mandatory andintroducing limited drivers’ license targeted for elderly drivers, etc., the Government will
support purchases of safety driving support cars, etc. as countermeasures of traffic
accidents caused by elderly drivers. In addition, the Government will promote thedeployment of various modes of mobility such as power-assisted bicycles and electric
wheelchairs. Also, workload mitigation and productivity enhancement of field workers
shall be pursued by promoting the utilization of ICT and robotics technologies in thefields of nursing, long-term care, welfare for the challenged as well as construction, etc.
Other measures include promoting deployment of smart agriculture technologies
including drones, advancing the support for start-up firms playing important roles ininnovation, promoting financial innovation through digitalization and improving
cybersecurity countermeasure in finance areas, and advancing the development of newtechniques for refining the regulations with the social implementation of digitaltechnologies in mind.
Finally, the Government will further promote establishment of “Smart City” bydeveloping implementation schemes through public and private partnerships, and will
implement various measures which are conducive to further utilization of the Social
security and Tax Number Card (aka Individual Number Card) as soon as possible, suchas the expansion of various one-stop-services in the dedicated portal website (called
MynaPortal) and the promotion of integration/digitalization of various kinds of cards(IDs) including health insurance cards.
・ Expand “moonshot-type research and development projects” to the field ofhealth/medicine and agriculture/forestry/fisheries (CAO, MAFF)
・ Conduct research and development for innovative AI-based integrated network
infrastructure technologies (MIC)・ Develop base facilities for research of quantum and life science (MEXT)
・ Verify innovative technology for securing deep-sea mineral resources (Rare-earth21

(Provisional Translation)

・
・
・
・
・
・
・
・
・
・
・

・
・
・
・
・
・
・
・
・
・
・
・
・

mud) (CAO)
Promote next-generation synchrotron radiation facilities based on the partnershipamong public and private sectors and the community (MEXT)
Develop the supercomputer Fugaku (MEXT)
Create opportunities for “emergent research” (MEXT)
Enhance the bases for post-5G information and communication systems (METI)
Develop rockets and artificial satellites that contribute to disaster prevention anddisaster control, etc. (MEXT)
Conduct research and development on systematic and steady promotion ofinternational space exploration (Lunar Gateway plan, etc.) (MEXT)
Realize an “Advanced Geospatial Information Utilization Society” highly utilizing
geospatial information <Other than budgetary support> (CAS)
Project to improve the system to promote genomic medicine by whole-genome
analysis, etc. (MHLW)
Accelerate research by Okinawa Institute of Science and Technology Graduate
University (CAO)
Conduct research and development for spread and deployment of 5G (MIC)
Introduce a tax system to promote certain investments in 5G-related equipment anda tax system to promote open-innovation activities that lead to business innovation(MIC, METI) 16
Provide financial support to promote the development of 5G <FILP> (METI)
Establish a promotion system for field trials to realize ‘local 5G’ for regional
problem-solving (MIC)
Provide subsidies for safety driving support cars (METI, MLIT)
Project to promote the utilization of ICT at nursery centers, etc. (MHLW)
Project to promote sharing information on long-term care by utilizing ICT (MHLW)
Support the introduction of nursing-care robots and conduct research to verify theeffects of the introduction (MHLW)
Project to support the introduction of robots, etc. and support a model project tointroduce ICT in the field of welfare for persons with disabilities (MHLW)
Project to develop and verify smart agricultural technology (MAFF) (listed twice)
Realize unmanned implementation of public works by utilizing 5G, etc. (MLIT)
Promote innovation in the maritime industry (maritime productivity revolution)(MLIT)
Promote “smart city” further, including establishing an implementation system inpublic and private sectors (MLIT)
Increase the functions of MynaPortal (CAO)
Introduce functions that utilize AI to the consumer affairs consultation system.
(Consumer Affairs Agency [CAA])
and others2) Social Innovation toward Achieving SDGs
Realizing SDGs in such areas as climate change, energy and health should be

16

Tax measures are to be discussed and determined in the tax reforms in FY2020.
22

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continuously pursued. Particularly, actions against global warming reemerge as a hugechallenge, with damages from natural disasters becoming more severe in recent years.
To solve social issues regarding the achievement of SDGs, such as realizing decarbonizedsociety, changes in society, lifestyles and technologies are essential. To this end, theGovernment will accelerate development of international research bases for zero emission
technology and related R&D projects, promote social implementation and deployment ofinnovative new materials/parts and natural refrigerant devices, which contribute tosignificant energy savings, and diffusing clean-energy cars. Also, the Government will
advance ESG finance by supporting the financing of corporates sectors, etc. for “green
projects” which contribute to environment and disaster management, as well as
supporting measures regarding charging for plastic bags. Through these measures, theGovernment aims to realize a virtuous cycle of environmental progress and economic
growth.
・ Program to accelerate progressive environment innovation strategy (METI)・ Project to accelerate social implementation and deployment of parts and materials 17
for establishing innovation that will lead the world (MOE)・ Project to accelerate the introduction of energy saving-type natural refrigerant
equipment to promptly realize a fluorocarbon-free and low carbon society (MOE)・ Provide subsidies for projects for the introduction of clean-energy vehicles (METI)・ Global environment observation project as part of the GOSAT series (MOE)・ Support project to develop a system to promote the issuance of green bonds and green
loans with applicable projects, etc. as an objective of funds (MOE)・ Project to promote sustainable development in developing economies with science,technology and innovation (MEXT)
・ Promote understanding of charging for plastic bags (METI, MOE)
・ Project for promoting the introduction of sophisticated facilities such as low-CO2
recycling (MOE) (listed twice)・ Urgent action on articles that drift ashore, etc. (MOE) (listed twice)・ Emergency support to deal with marine plastic litter and climate change. (Ministryof Foreign Affairs [MOFA])
・ Facilitate and advance livestock excrement treatment (urgent measures to promotelocal consumption of locally produced biomass energy from livestock) (MAFF)
・ Promote a diversified energy system that enables independent energy supply at thetime of disaster (MIC) (listed twice)and others

2. Investing in Human Capital for Those Playing Important Roles inSociety 5.0 and Creating an Environment Suitable for Child Rearing
Future of a country depends crucially on its human capital. In order to quickly
develop the environment which is suitable for education for those who will play importantroles in the new era of Society 5.0 and for individually optimized learning with nochildren left behind including various types of children such as those with special needs
17

High-efficiency semiconductors with GaN (gallium nitride), and lightweight high-strength CNF(cellulose nanofiber).
23

(Provisional Translation)at the primary and secondary education stage, the Government aims at realizing an
educational environment where every single pupil/student of all grades at the compulsory
education has his/her own computer device and is able to utilize it fully by FY2023, in
addition to advancing the development of a high-speed and large-capacity network
environment in each school (in-school LAN), and the Government will constantly securefiscal resource and implement necessary support for local governments which undertake
those projects 18. In so doing, the Government also takes measures to improve the nonstructural (i.e. soft) areas including teaching staffs and leaning materials. Also, tonurture the talent required for strengthening research and development capacity, etc., theGovernment will ameliorate or develop basic facilities and buildings of technical colleges,
which have been severely dilapidated, and universities.
In addition to promoting measures against the declining birthrate considering
regional contexts and challenges, the Government will implement measures to improve
environments suitable for child rearing, such as support for reforms in purchasing vacanthouses and childcare arrangements for child-rearing use.
・ Realize GIGA (Global and Innovation Gateway for ALL) school initiatives (MEXT)
・ Promote the introduction of EdTech (METI)・ Construct a utilization model for local 5G to solve problems in the field of education(MIC)
・ Improve the infrastructure for education and research environments to develop talentthat will play a key role in Society 5.0 at national universities, etc. (MEXT)
・ Strengthen human resources by improving infrastructure equipment for education
and research at private universities, etc. (MEXT)
・ Improve infrastructure equipment at national technical colleges (MEXT)
・ Improve sports facilities that can stage rugby matches (MEXT)
・ Improve the facilities of certified child centers (MEXT)
・ Facilitate childcare arrangements (MHLW)・ Realize childcare-friendly, safe cities (MLIT)
・ Promote countermeasures against the declining birthrate considering actual situations
and challenges in each region (support for marriage and life planning, etc.) andpromote the active participation of women (CAO)
・ Take measures against child poverty through the use of Grant for Local Public Bodies
to Support the Future of Children (CAO)
and others

3. Infrastructure Development for the Era of 60 Million Inbound Tourists
Toward the realization of the target of 40 million inbound foreign tourists by 2020,
the year when the Tokyo Olympics and Paralympics will be held, and, through the 2025
Osaka Kansai Expo, the realization of 60 million inbound tourists by 2030, theGovernment will reinforce the foundations for the growth by continuously attracting

18

In carrying out the project, it is intended for local governments that develop a sustainableutilization plan, including the expenses on maintenance and renewal in the future. Taking
economies of scale into consideration with respect to the development of terminals, a unit price forsubsidies is to be set so that price reduction incentives work for local governments.
24

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inbound demands. To cope with increasing inbound tourism, the Government aims forthe improvement of the functions of airports in metropolitan areas and access tointernational airports, etc. by utilizing FILP 19 . Also, the Government will advancemeasures such as intensive and strategic promotions of special audience-attracting
programs such as the opening of important cultural properties which are not normallyopen to the public, arrangements of an environment to accept foreign tourists such asmeasures to adapt to multi-lingual needs, and development of new markets anddiversification of the origins of inbound tourism, which take into account the changing
situation of inbound tourism and characteristics of each tourist site.
・
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・
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・
・
・
・
・
・

Improve the functions of airports in the Tokyo metropolitan area <FILP> (MLIT)
Improve the access to international airports <Including FILP> (MLIT)
Develop the environment for receiving cruise ships (MLIT)
Run a promotion to attract visitors to Japan with the Olympic and Paralympic Games
as a trigger (MLIT)
Project for developing new and diversified markets in tourist destinations (MLIT)
Emergency countermeasures to develop the environment for accepting foreign
visitors to Japan (MLIT)
Establish a system for smooth and strict immigration examination and customs(Ministry of Justice [MOJ], MOF)
Inbound demand expansion promotion project (METI)
Research to verify the effects of production incentives for large-scale films (CAO)(listed twice)
Project to support overseas expansion of broadcasting contents (MOFA)
Projects for Japanese language education abroad and for the dispatch of supporters
who introduce Japanese language and Japanese culture (MOFA)
Measures to prevent fire and disasters for cultural resources (MEXT) (listed twice)
Promote tourism in Okinawa with the budget for specified projects in the wake of the
Shuri-jo Castle fire (CAO, MLIT) (listed twice)
Develop the National Ainu Park and enhance the measures for the opening of the
National Ainu Museum and Park (Upopoy) (MLIT)
and others

4. Improvement of Infrastructure to Support Productivity Enhancement
To strategically construct infrastructure which will be the foundations for growth
and reinforce the international competitiveness in the medium- to long-term beyond the2020 Tokyo Olympics and Paralympics, the Government will selectively and intensively
promote the projects with significant expected outcomes including enhanced productivity,
such as the acceleration of construction of major roads and hub ports as well as urban
development. In so doing, by taking advantage of current prevailing low interest rates,
the Government will make the best use of FILP, 20 and thereby accelerate projects whose
investment return is possible through fare income.

19
20

FILP loans are to be provided for Narita International Airport Cooperation, etc.
FILP loans are to be provided for each Expressway Company Limited, etc.
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(Provisional Translation)

・ Develop ports that contribute to maintaining and enhancing economic vitality(MLIT)
・ Develop roads, ports and other facilities integrally to turn agriculture, forestry andfisheries, etc. into a growth sector and an export sector (MLIT)・ Develop expressways, etc. to strengthen logistics networks that reinforce growth<Including FILP> (MLIT)
・ Provide financial support, etc. for private-sector-led urban development projects<Including FILP> (MLIT)・ Develop urban infrastructure through the internationally competitive hub
development project, etc. (MLIT)
・ Promote urban redevelopment <FILP> (MLIT)
・ Provide comprehensive support, including social capital development that serves as aplatform for growth (MLIT)
and others

5. Supporting Private Consumption in a Seamless MannerConsidering that private consumption, with its share of GDP at around 60 percent,is the centerpiece of sustained economic growth mainly led by private demand, it isimportant to improve growth expectations of businesses and households and realize
continuous wage growth, by accelerating measures to enhance productivity through theimplementation of wide range of measures included in this package. In addition, theGovernment will steadily implement the current cashless point reward program, which isundertaken as part of the countermeasures against the consumption tax rate hike, until theend of June 2020. Furthermore, from September 2020, after the Tokyo Olympics andParalympics, to the end of March 2021, the Government will support private consumption
seamlessly by launching a new measure to support private consumption which utilizes
the Social security and Tax Number Card, aka Individual Number Card (specific points
equivalent to 5 thousand yen are to be rewarded in return for advance payment, etc. of 20
thousand yen), with taking measures for wider dissemination of the Individual Number
Card and expansion of cashless settlements. In so doing, the Government will assist
households’ application procedures required for point provision, and provide detailed
support to small and medium size stores for introducing cashless-eligible facilities andhandling them. Also, some measures are to be implemented to ensure correctunderstanding of Individual Number system and encourage swift acquisition of the Card,through helping local governments with the preparation of issuance and the delivery
system of the Card. Aside from these measures, the Government will promote several
measures contributing to stable asset accumulation of households and enhancement ofgrowth capital supply, toward the realization of a virtuous cycle of the economy.
・ Cashless point reward program (METI)・ Launch a support program to stimulate private consumption by utilizing theIndividual Number Card (MIC)・ Provide information and publicity in collaboration with businesses in order todisseminate the Social Security and Tax Number (My Number) System (CAO)
・ Promote the dissemination of Individual Number Cards (MIC)・ Measures stabilize the housing market (housing benefits) (MLIT)
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(Provisional Translation)

・ Project to revitalize shopping districts and to create tourism consumption (METI)・ Enhance financial and digital literacy, disseminate NISA (Nippon Individual Savings
Account), promote the establishment of customer-oriented business conduct byfinancial institutions, and develop asset management industry <Other than budgetary
support> (FSA)・ Accommodate needs of financial services users such as elderly persons <Other thanbudgetary support> (FSA)
and others

6. Promotion of Corporate Governance Reform, etc.
With a view to further enhancing the competitiveness and trustworthiness ofJapanese companies and accepting foreign investments, the Government will advance thefollowing measures to further promote corporate governance reform, including a revisionof the stewardship code. With respect to the recent amendment of the Foreign Exchange
and Foreign Trade Act, the Government will develop its detailed design for appropriate
implementation pursuant to the Act’s objective, namely, ensuring minimal review offoreign direct investment that could pose risks to national security and promoting foreign
direct investment conducive to sound economic growth. In addition, the Government
will promote the establishment of bases of foreign financial institutions in Japan throughutilizing the Financial Market Entry Consultation Desk, etc.
・ Revise the Stewardship Code <Other than budgetary support> (FSA)・ Develop the detailed design and implement the amended Foreign Exchange andForeign Trade Act <Other than budgetary support> (MOF, concerned ministries andagencies)
・ Promote the establishment of bases of foreign financial institutions, including asset
management businesses, and promote Tokyo as a global financial center <Other thanbudgetary support> (FSA)・ Reform the Tokyo Stock Exchange (TSE)’s equity market structure <Other thanbudgetary support> (FSA)

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(Provisional Translation)

Chapter 3 Size and Economic Impact of the Measures
The size of this new economic package is as per the Annex. The package aims
for not only demand boost in the short-term but also economic growth led mainly by
private demand, through budget measures included in the Supplementary budget for
FY2019 and temporal and special measures in the FY2020 Initial budget, and throughpromoting growth enhancing investment by active utilization of FILP, which takes
advantage of current low interest rates, as well.
The economic impact is currently estimated to boost real GDP (demand) byaround 1.4 percent. Besides, the amount of domestic investment encouraged by thedevelopment of infrastructure as a basis for economic growth, which is not included in
the above estimation, is calculated to be approximately 0.7 percent of nominal GDP.
Furthermore, it is expected that crystallization and implementation of each measureincluded in the package will to lead to sustainable economic growth where growthpotential is reinforced with the enhancement of productivity, private investments arestimulated and employment and income situation are further improved, and, accordingly,
private consumption is enhanced.

Note: The economic impact mentioned above is calculated based on the project size, andsubsidy rates, etc.

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(Provisional Translation)

Annex
Size of the Measures

Fiscal expenditures

Total size

Restoration and Reconstruction fromNatural Disasters and Securing
Safety and Security

Approximately
5.8 trillion yen

Approximately
7.0 trillion yen

II. Intensive Support for Those Striving
to Overcome Economic Downside
Risks

Approximately
3.1 trillion yen

Approximately
7.3 trillion yen

III. Investing for the Future andMaintaining and Enhancing
Economic Vitality Beyond the 2020
Tokyo Olympics and Paralympics

Approximately
4.3 trillion yen

Approximately
11.7 trillion yen

Total

Approximately
13.2 trillion yen

Approximately
26.0 trillion yen

I.

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(Provisional Translation)

Breakdown of fiscal expenditures (reference)

Fiscalexpenditures

I.

Of which
expenditures fromthe central
government andlocal governments

Of which
FILP loans

Restoration andReconstruction fromNatural Disasters andSecuring Safety andSecurity

Approximately
5.8 trillion yen

Approximately
5.4 trillion yen

Approximately
0.3 trillion yen

II. Intensive Support toThose Striving toOvercome Economic
Downside Risks

Approximately
3.1 trillion yen

Approximately
2.1 trillion yen

Approximately
1.1 trillion yen

III. Investing for the Futureand Maintaining and
Enhancing Economic
Vitality Beyond the2020 Tokyo Olympics
and Paralympics

Approximately
4.3 trillion yen

Approximately
1.9 trillion yen

Approximately
2.4 trillion yen

Total

Approximately
13.2 trillion yen

Approximately
9.4 trillion yen1

Approximately
3.8 trillion yen2

Note 1: Of which, 7.6 trillion yen is central government expenditures.
From the general account: 4.4 trillion yen for FY2019 (of which, 4.3 trillion yen is fromthe supplementary budget and 0.1 trillion yen is from contingency funds) and1.8 trillion yen for FY2020 temporal and special measures.
From the special accounts: 0.7 trillion yen for FY2019 and 0.8 trillion yen for FY2020
and after.
Note 2: Of which, 1.4 trillion yen is for FY 2019 and 2.4 trillion yen is for FY2020 andafter.

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