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For future growth, for future generations, and for a future Japan.
“I will break down any and all walls looming ahead of
the Japanese economy and map out a new trajectory
for growth. This is precisely the mission of Abenomics.”
—Prime Minister Shinzo Abe

Published in September 2018
About Abenomics keeps boosting Japan’s economy1
Abenomics Setting the economy on course to overcome deflation and continue steady growth

58.4 JPY tn 2.5 mn (2.0 mn)

Since coming to power in late 2012, Number of Employed
Prime Minister Shinzo Abe and his Nominal GDP
Persons (Female)
government unveiled a comprehen- 493 JPY tn ▶ 551 JPY tn Record high 62.7 mn (26.6 mn) ▶ 65.2 mn (28.6 mn)
sive policy package to revive the

31.4 JPY tn 2.4%

Japanese economy from two decades Corporate
of deflation, all while maintaining Unemployment Rate
Pre-Tax Profit 4.5 % ▶ 2.4 %
fiscal discipline. This program
36.4 JPY tn ▶ 67.8 JPY tn Record high
became known as Abenomics.

16.7JPY tn
While Abenomics started as a
stimulus measure based on three
15.1JPY tn Tax Revenue
42.3 JPY tn ▶ 59.1 JPY tn

arrows, over the years it has 71.9 JPY tn ▶ 87.0 JPY tn

evolved into a broader blueprint for
(JPY tn) Nominal GDP2
pro-growth socioeconomic change 700
that aims to lead Japan in tackling

today's challenges head-on.
The changes are designed to benefit
all parts of Japan's economy— 600 The largest yearly increase in
compensation of employees
the people, companies, investors, 564
since 1995
and the country as a whole. 539
534 (1Q FY2017 vs. 1Q FY2018)
Aggressive monetary policy 500
494 494

Flexible fiscal policy

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 TARGET
(Forecast as of
January 2018)
Growth strategy * Average exchange rate for July 2018: USD = JPY 111
** The Japanese fiscal year starts in April and concludes in March of the following year.
1. Pre-Abenomics vs. Post-Abenomics; nominal GDP = 3Q FY2012 vs. 1Q FY2018, seasonally adjusted series [Annualized]; corporate pre-tax profit = FY2012 vs. FY2016; private non-residential
  investment = FY2012 vs. FY2017; number of employed persons (detailed tabulation) = 2012 avg. vs. 2017 avg.; unemployment rate = January 2012 vs. June 2018; tax revenue = FY2012 vs. FY2018
2. Source: Cabinet Office “National Accounts,” “Fiscal 2018 Economic Outlook and Basic Stance for Economic and Fiscal Management”


(JPY tn) Corporate pre-tax profit3 (mn pers.) Number of employed persons5 (JPY tn) Tax revenue7
68 70
70 67.8 66.3
67 59.1
60.3 60.6 60 57.6 57.7
60 56.5 66 54.5
65 50.0
50 64 42.3 43.1
62.8 40.9
39.7 63 40
40 36.4
30 29.2 30
20 28
10 10
0 0
FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 2012 2013 2014 2015 2016 2017 2018 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

Total Female

Ratio of effective job offers Dependency ratio on

(JPY tn) Private non-residential investment4 (Times) and unemployment rate6 (%) (JPY tn) Japanese government bonds7 (%)
90 1.75 5.0 60 50
88 86.8 1.62 47.9 47.6 43.0
1.50 4.5 50 46.3 38.3
83.2 83.7 44.3 44.2 42.9 35.6 35.3
84 4.0 41.3 34.5
82 81.1 40 36.9
1.13 34.4 34.4
80 1.00 3.5 33.7
77.5 30 25
78 0.74
76 0.75 3.0
74 2.4 20
71.9 0.50 2.5
72 70.4
70 0.44 10
0.25 2.0
66 0.00 1.5 0 0
FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 2012 2013 2014 2015 2016 2017 2018 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

Ratio of effective job offers to applications (left scale) Amount of JGBs issued (left scale)
Ratio of effective job offers to applications (regular staff) Level of dependence on JGBs (right scale)
(left scale)
Unemployment rate (right scale)

3. Source: Ministry of Finance “Financial Statements Statistics of Corporations by Industry,” all industries, all (firm) sizes, seasonally adjusted figures
4. Source: Cabinet Office “National Accounts,” private non-residential investment
5. Source: Ministry of International Affairs and Communications “Labour Force Survey,” seasonally adjusted figures
6. Source: Ministry of Health, Labour and Welfare “Statistics on Employment Referrals for General Workers,” seasonally adjusted figures; Ministry of Internal Affairs and Communications “Labour force survey,” seasonally adjusted figures
7. Source: Ministry of Finance “Public Finance Statistics Book,” initial budget

How Abenomics Works
Context Goal 1: Achieving Sustainable Growth Aim to reach
The greatest structural issue facing
the Japanese economy is the aging
Implement comprehensive reform to accelerate an economic
virtuous cycle, which will help grow GDP to 600 trillion yen. 600
trillion yen GDP
of society and shrinking of the
population. However, we see this
challenge as an opportunity.

Demographic change is a social

challenge that will soon be shared
by most developed countries. Japan
is committed to achieving Creation of
new demand
sustainable growth and becoming a Shrinking & Rise in
pioneer in the establishment of a Aging Population consumption
new social model. We call this
Society 5.0, Japan’s vision for the
next step in human evolution. Abenomics

Productive Individuals & Society

Smart Regulations & Laws Higher

Attractive International Opportunities production

More Competitive Business

Goal 2: Realizing Society 5.0 Solutions in Progress
Solve social problems by utilizing Japan's vast volume of real data in tandem

with cutting-edge industrial technologies.

Productive Individuals & Society

Population may become smaller, yet it can also become smarter.
(Overloaded ▶ Organized) (Limited ▶ Empowered) Raising productivity will help us offset changes in the labor force.


Smart Regulations & Laws
As markets evolve to reflect changing social needs, we should move quickly,
and with an open mind, to help create new businesses and new demand.

Information Society
Industrial 3 Attractive International Opportunities
Core issues, like growing sustainably, are faced by all nations. We believe in innovating
together, opening our markets and offering our best products and services abroad.

(Isolated ▶ Connected) (All by Oneself ▶ Network Assisted)

Society 5.0 is Japan’s vision for the next step in human evolution after hunter-gather,
agrarian, industrial and information society stages. It will enhance industrial competi-
More Competitive Business
tiveness and help with the establishment of a society more attuned to individual needs.
The focus is on the vast potential of accumulating data, and new technologies of the Unlocking economic opportunities means opening up all of our potential, from strength in
fourth industrial revolution, in order to find solutions to social issues such as the local regions and the SME sector, to creating an ever more friendly business environment.
declining birth rate, an aging population, and environmental and energy issues.

Individuals &
Changing societal structures is a
chance to unlock new market
opportunities. An aging society

Integrate and store Personal Health
Records (PHR) using big data by 2020
to provide customized medical care
[e.g.] medical checkup, treatment, and
nursing care records

Enhance remote medical care

Starting with mountainous regions,
introduce drone delivery services to
include urban regions by the 2020s

Introduce driverless transportation

services with the aim of making them
commercial by 2020

Drive FinTech innovation by
facilitating experimentation with
blockchain technology
*This technology allows faster and deeper
online transactions while providing security
by recording transactions in a
chronological order within a chain of
encrypted, interlocking blocks. After

By 2030, between 50
autos will use electr
other non-gasoline e

Promote a hydrogen
the lightest element
table ushers in carbo
services combined with face-to-face *Road tests ongoing in the capital and in mountains creation, falsification of any part of the technology
stimulates demand for care & chain is extremely difficult, creating a
medical examinations (effective care trusted and secure record. - Establish 160 comm
wellness products and services, ● Autonomous truck platoons for mass
to be evaluated based on a FY2018 operating hydrogen
which in turn pushes innovation in transportation to address the ● Install open application
revision of medical service fees) and double that nu
robotics, AI, and IoT. shortage of truck drivers programming interface (API)
● Use AI and robots at long-term care (commercialization by 2022) systems in more than 80 banks by ● Utilize AI and IoT for
A smaller workforce will also facilities to maintain/improve users’ 2020 to further drive innovation management with th
motivate business efficiencies, as quality of life and reduce caregivers’
● City planning will include new *API is a software interface within which an commercialization o
mobility options so that model cities application and other operations provide
well as more demand for higher burden separate applications with a common Power Plant) system
skills to best use technological include autonomous driving, function. In software development, a offer more efficient r
shopping support and Mobility as a function provided by an API does not
advances, as per the Society 5.0 require further programming, which
Service (MaaS) from the start
vision. Many believe economies makes the process more efficient.

only grow because of population ● Transport data dissemination via ● Achieve a 40% cashless payment
growth. However, history shows Apps will be introduced from this rate by 2027
us that growth actually happens fiscal year to ease congestion,
when the skills of society reflect its especially during peak times and
major events
economic opportunities.




n by ● By 2030, between 50% and 70% of new DIGITAL GOVERNMENT
ion with autos will use electric, fuel cell or
● Change “administration” by making all services and procedures
other non-gasoline engines digital
r and deeper - Eliminate attachments required in various procedures, and
viding security ● Promote a hydrogen society where modify the personal identification method such as affixing a seal OPEN DATA
the lightest element in the periodic
chain of
ks. After table ushers in carbon-free Open up government data to promote innovative products and
part of the technology
NEXT-GENERATION INFRASTRUCTURE services, particularly in eight selected areas that include
reating a ● Use robotics and sensors to repair and improve productivity of
- Establish 160 commercially healthcare, agriculture and mobility
infrastructure, also cutting costs
operating hydrogen stations by 2020
● Introduce data-driven operations to improve precision of
and double that number by 2025
(API) construction, renewal and maintenance processes
0 banks by ● Utilize AI and IoT for energy use
- Infrastructure Efficiency roadmap for next five years being prepared 5G / CYBER SECURITY
ovation management with the
thin which an commercialization of VPP (Virtual PPP & PFI Move our telecommunications standard to 5G by 2020 to cope
ons provide with increasing data volumes, while strengthening cyber
common Power Plant) systems by 2021 that ● Operating performance of airports, water supply and sewage
pment, a offer more efficient resource systems, roads, education facilities and harbors can be bolstered security
does not further with private business know-how
g, which ● Government considering ways to bring private initiative into
cient. public utilities to generate long-term revenue and better INDUSTRY-ACADEMIA
cost-performance returns
SMART CITY Set up an operating system in universities to accept private
investments, and set up an incentive system to encourage
● Bring together town-planning with new mobility services and
private data capacities to develop the “Compact · Plus · Network,” universities to collaborate with industry
ensuring that efficient and clean transport is built into cities with
aging population needs
● Agriculture of tomorrow means utilizing sensors, big data Supply the foundation for people that have inside them
analysis and AI to help farmers develop larger-scale, less a venture spirit by creating an agile environment where startups
labor-intensive spaces, and integrate their work into the modern can continuously create and drive innovation
farm-gate-to-store supply chain at minimal cost. The approach
will be expanded to forestry and fishery industries.

Individuals &
When speaking about economics,
everything starts with people.
They are the country’s top asset

Legislative rules and guidelines of “equal pay for equal
work”: Eliminate the irrational gaps in the working conditions
between regular and non-regular workers in order to enable
non-regular workers to be fairly evaluated and to work with
higher motivation

Promote a flexible work style: Promote teleworking, side jobs

Move toward free education for infants (from low income
households), all pre-school children, and higher-education
(university) students (from low income households)

Support further education and mid-life career change for

- Individuals who seek to advance their skills
- Those wishing to switch jobs

of gender
Bolster health sup

Offer greater assis

Make available fur

women returning

and those who wish to take on multiple jobs with a variety of - Mothers returning to work after child-care leave, who wish to ● Provide female ca
and this is where we are focused
policy measures, including the renewal of guidelines boost skills or change employment training programs
to make the biggest difference.
Law passed in June 2018 ● Make education more practical
As people’s average life span - Reform higher education curriculum and facilities to better meet ● Eliminate all form
expands, and our society grows the needs of today’s professions, especially in terms of technical spousal violence, s
more diverse, we want to help skills such as in IT trafficking, sexual
people remain productive, learn - Introduce programming as mandatory study from elementary
new skills, and re-invest that school to bolster societal IT knowledge in the future ● Promote men taki
active with domes
knowledge in their work.

Our initiatives include the Council

for Designing 100-Year Life Achievements
Society and measures to boost the
▶ From 2012 to 2017
workforce through higher female
workforce increas
and senior engagement, as well
as overseas talent.
2.0 m
Source: Ministry of Interna

▶ Women in manage
sector approaches

10% Source: Ministry of Health,

rom low income ● Bolster health support for women at various life stages ● Provide a choice to work beyond the official retirement ● Actively attract overseas professionals who have
higher-education age for those who want to do so, as well as support expertise or experience in certain areas through
● Offer greater assistance to single parents, irrespective
useholds) companies that retain retiree-age staff easier visa procedures
of gender
- Fast-track visa screenings to 10 days
areer change for ● Provide support in matching job openings and
● Make available further and recurrent education for - Established a new residence status for foreign human
kills applications
women returning to work after child-care leave resources who have a certain level of professional and
● Consider raising the retirement age of civil servants technical skill, and Japanese language proficiency
are leave, who wish to ● Provide female candidates with executive leadership - Set up the world’s fastest Japanese Green Card
gradually from 60 to 65 years old
training programs from the world’s leading business program for Highly-Skilled Foreign Professionals in
scholars select fields

d facilities to better meet ● Eliminate all forms of violence against women including ● Online applications accepted from 2018
ally in terms of technical spousal violence, sex crimes, prostitution, people
● Ease quality-of-life with more non-Japanese signage,
trafficking, sexual harassment, and stalking
study from elementary international schools, English-speaking hospitals
in the future ● Promote men taking child-care leave and being more ● Option to invite housekeeping staff from overseas
active with domestic tasks
● Support more international students and entrepreneurs

Achievements Achievements Achievements

▶ From 2012 to 2017, the number of women joining the ▶ From 2012 to 2017, employment rate of people over ▶ The number of workers from abroad reached
workforce increased by about the age of 65 increased by

2.0 million
Source: Ministry of Internal Affairs and
Communications “Labour Force Survey” 3.5% 1.3 million
(Approx.) 0.91

Source: Ministry of Internal Affairs and Communications “Labour Force Survey” 0.79
0.68 0.72
▶ Women in management positions in the private 
sector approaches

10% Source: Ministry of Health, Labour and Welfare “Basic Survey on Wage Structure”
of seniors report that they would like to continue to
work past retirement age
Source: Cabinet Office “Research on daily life of seniors”2014
2012 2013 2014 2015 2016 2017

Source: Ministry of Health, Labour and Welfare “Report on the

Employment Situations of Foreigners”

Regulations &
Many say nothing ever changes
in Japan. This section more
than others demonstrates that
A fledging business idea or technology needs support and
understanding. In the case of government, we are introducing
a sandbox approach that seeks to help new ideas develop by
limiting administrative barriers and regulations on a case by
case basis without being subject to existing regulations.

- Early stage business models or technologies are proposed to

Selected regions have the privilege of carrying out
advanced structural reform in the hope of turning
successful test cases into touchstones for
nationwide implementation.

10 areas have been
selected since 2013

Adopt flexible regulat
Japan a central hub fo
and grow the market t

Create a faster R&

innovative medicin
- Implement faste
the government and evaluated on their merit
this is simply not the case. reforms were undertaken regenerative me
In recent years, changes have
drilled down into the bedrock of
- Rules are relaxed to test these innovations within a certain
contained “sandbox” (e.g. within an approved company or
project). Businesses are able to conduct demonstration tests

296 (as of June 2018) ● Create a global hu
some of the oldest and most and pilot projects that are not envisaged under existing - Make National S
traditional industries in Japan. regulations inside of their “sandbox.” OKINAWA
into hubs for car
A revolution in efficiency and - The testing environment allows businesses to conduct pilot ophthalmic treat

innovation is taking place in the projects quickly, building up data that can lead to change in - Promote market
energy, agriculture, medicine, ● Expand and popul
and telecommunications - If pilot demonstrations of new technologies/business models YABU medical treatmen
are successful, government considers extending the same
industries. And this is only the KITA AICHI
deregulation to the rest of the country KYUSHU
beginning. AREA
- A dedicated office for this is set up to ease with the application
Japan is introducing more measures, process ▶ World’s fastest ap
in regenerative m
such as a regulatory sandbox, to help Law took effect in June 2018 Before 2014
stimulate new business, Clinical Study

opening the door to smart ideas Achievements After 2014

with smart regulation. ▶ 1st automated bus driving test conducted

Clinical Study Clinica

on a public road in Semboku City (November 2016)

䢠 ▶ Accept non-Japanese workers ▶ Rapid development in a
who have certain skills to help turn treatments such as myo
agriculture into a growth industry in Kyoto Pref.,
World’s first successf
Niigata City and Aichi Pref.

cell transplant operat

Law took effect in April 2018 macular degeneration

t Adopt flexible regulatory frameworks to make First major structural reform and Undertake comprehensive reform, for Efficient frequency utilization is key
Japan a central hub for regenerative medicine deregulation in 60 years to turn the first time in 60 years, to increase to accelerating innovation in next-
and grow the market to 26 trillion yen by 2020 agriculture into a growth industry competitiveness for current energy generation fields such as IoT, digital
sources while exploring new energy media and mobile entertainment.
● Create a faster R&D process in ● Reform the Agricultural Cooperative sources to create an eco-friendly and
innovative medicine system to encourage entrepreneurship ● Provide more transparency to
growing industry
- Implement faster approval system for Law took effect in 2016 frequency assignment
pharmaceuticals,medical devices and ● Increase competitiveness in the
regenerative medicine ● Decrease production costs and promote electricity and gas market ● Ensure unlicensed frequency bands for
structural reform in distribution and Internet of Things (IoT)
● Create a global hub for regenerative processing
medicine Law took effect in August 2017 ● Consider auctions for radio spectrum
- Make National Strategic Special Zones distribution in the future
into hubs for cardiac, neurologic and ● Increase exports to one trillion yen by 2019
Full liberalization of the retail market Promote and support business models
ophthalmic treatments - Strengthen export promotion through ●

(Electricity: Since April 2016)

- Promote market entry from overseas the Japan Food Product Overseas that go beyond traditional television or
(Gas: Since April 2017)
AI Promotion Center (JFOODO) telecom operations
● Expand and popularize the use of online ELECTRICITY GAS
medical treatment ● Introduce similar approaches to
EA Market size 8 2.4
modernize forestry and fisheries trillion trillion
New market 469 1,422
▶ World’s fastest approval process entry companies companies
in regenerative medicine
Before 2014 ▶ Exports of agricultural, forestry, and Users switched to 5.68 0.93
a different retailer million million
Clinical Study Clinical Trial fishery products
After 2014
Clinical Study Clinical Trial 745 750 Establishment of a negawatt trading market
2016) FOR APPROVAL 450
Successful 1
▶ Rapid development in advanced heart failure bid quantity GW
treatments such as myoblast cell-sheet transplants
ef., (JPY bn)
▶ World’s first successful iPS origin retinal 2012 2013 2014 2015 2016 2017 2019
target Full liberalization of the retail market: as of April 2018
cell transplant operation for age-related Establishment of a negawatt trading market:result of reserve
Source: Ministry of Finance “Trade Statistics of Japan” procurement for FY2018
macular degeneration

By signing a trade deal with the
EU this July, Japan did not simply
enter into a business deal. It was

Strive to bring free trade agreements into force
- Comprehensive and Progressive Agreement for
Trans-Pacific Partnership by 11 nations (TPP11)
- Japan-EU Economic Partnership Agreement (Japan-EU EPA)

Promote negotiations of other EPAs such as RCEP and

Japan-China-ROK FTA

For more information:

Provide financing to infrastructure projects across the world
of approximately USD 200 billion by 2021

Strengthen competitiveness through public-private


Expand infrastructure investment, taking advantage of
the biggest evidence to date of Achievements Japanese technologies and expertise
Japan's commitment to lead and ▶
FTA coverage ratio has reached 50%
be a champion of free trade, to -Trade value base, in force or signed Achievements
encourage global cooperation Source: Calculated by Ministry of Economy, Trade and Industry
based on Ministry of Finance “Trade Statistics of Japan” ▶
Decided with Prime Minister Modi of India to develop the
both economically and politically, (January 2017–December 2017, Fixed numbers) Mumbai-Ahmedabad High Speed Rail Corridor (MAHSR) based
and to seek ways in which to support
on the Japanese Shinkansen system, aiming to start operation
business, innovation, and growth. in 2023
Abenomics has always aimed to create A groundbreaking ceremony was held on September 14, 2017
prosperity in Japan and share that
34.2% 51.6% ▶
Infrastructure project orders received

globally as part of a virtuous business by 2018 In force or signed
cycle based on free, fair, rule-based negotiation

markets. While opening its markets to 30

investors from overseas, Japan is also trillion*
exporting infrastructure and providing 20 21 yen
financial aid so as to affect a win-win 15 by 2020
global relationship. 10

Signed TPP 11 in March 2018

Signed the Japan-EU EPA in July 2018 (JPY tn)

One of the world’s largest bilateral free trade deals ever and 2010 2013 2014 2015 2016
one that will eliminate nearly all customs duties on products target
traded between the two sides

The EPA will be a model for 21st century economic order,
Source: Cabinet Office “37th Meeting of the Management Council for Infrastructure Strategy”
based on free and fair rules *Approximate figure


Form 100 world-class Destination Marketing Pave the way for the creation of Integrated Resorts
Come and Visit Japan!
Organizations and train tourism management [IR], facilities that “integrate” hotels, dining,
specialists by 2020 entertainment, business conference space, and
In addition to Narita International Airport, Tokyo is served by the
casino options, in order to broaden Japan’s more centrally located Haneda International Airport. Providing

Promote branding of national parks, usage of
hospitality and tourism offering domestic connections to 48 cities, Haneda is now offering a wider
cultural properties and create globally attractive
travel routes Create world’s first comprehensive legal   choice of international routes.


framework for the IR industry Haneda

Improve the tourist experience with additional free International

Wi-Fi spots and 3,000 ATMs equipped for ●
Outline vision to build facilities that promote diverse by car
international transactions attractions all across Japan

Promote private lodging services under certified ●
Invite private sector to operate IR facilities
New York 258 The Hotel Price
procedures ●
Closely regulate casino activities through additional London 230 Index (2016) shows that Tokyo
legal measures that squarely address gambling Paris 184 has a lower average price point
addiction Tokyo 184 compared to other iconic cities


Inbound tourists in 2017 Madrid 138
Law passed in July 2018 2016 USD yearly average currency exchange rate:
million 1 GBP = 1.28 USD, 1 EUR = 1.13 USD, 1 JPY = 0.0089 USD

tourists SHOP FOR LESS

with an expenditure of

Japan is not that expensive anymore. In fact, The Economist’s
MICE1 Big Mac Index—a broad indicator of price points—ranks Japan
trillion 36th out of 57 countries. (January 2018) (USD)
yen 60
1st 6.8 Switzerland
40 Hotels
2nd 6.2 Norway
29 15 Integrated 3rd 6.1 Sweden
(mn tourists)
Resort 3.4 Japan


(JPY tn) 1.1 According to The
Michelin Guide (2017),
1 227 Tokyo
2012 2016 2017 2020 2030 Casinos Entertainment 97 Paris
target target Facilities Tokyo has the most

Source: Japan Tourism Agency “Consumption Trend Survey for

Michelin-starred 96 Kyoto
Foreigners Visiting Japan,” “Overnight Travel Statistics Survey” 1. MICE: Meeting, Incentive Travel, Convention, and Exhibition
restaurants globally. 91 Osaka

The key to success is unleashing your
potential. Japan has vast competitive
reserves in its regions, as well as in
SMEs provide 70% of all employment and more than 50% of
all added value in Japan’s manufacturing. As such, the
potential to boost the economy via raising SME productivity
with new technology is enormous.

● Help over 1 million firms to introduce cutting-edge ICT,

robotics and cloud tools over the next three years

Strengthen investor confidence through transparency

Drew up a Corporate Governance Code, to promote transparent,

fair, timely and decisive decision-making by listed companies

Formulated a Stewardship Code, to promote constructive

engagement and a purposeful dialogue between institutional
investors and investee companies
big cities, and we are helping to ●Reduce property tax as for SMEs that make certain capital
unlock them through better corporate investments in ICT, robotics and cloud tools ● Eliminate overlap in disclosure rules and expedite provision of
  Law took effect in May 2018 information (relevant documents) to shareholders by electronic
governance, lower taxes, and by
welcoming businesses from abroad ● Support ownership and business transitions for SMEs
via FDI. whose owners are retiring due to age ● Promote investment based on good environmental, social and
governance (ESG) practices to encourage better corporate
● Encourage more international expansion by SMEs,
disclosure, as well as to stimulate more dialogue between
As we help more SMEs, the bedrock especially regional firms with “hidden champions” potential
investors and Japanese companies
of Japan’s economy, become more
● Motivate SMEs to grow their overseas assets by 50% by
productive and ambitious, Abenomics
2023, compared with 2015 standing INVESTORS CORPORATIONS
is creating a forward motion that aims
to involve all stakeholders, from Stewardship DIALOGUE Governance
Achievements Code Code
regional staff to overseas investors.
A shared desire to succeed will yield ▶ Pre-tax profit after tax of SMEs is at a record high

16.9trillion yen
shared benefits. 16.9

13.5 13.9 13.6 Corporate Governance Code

10.5 - Applied to more than 2,000 companies

9.1 - Percentage of listed companies with
two or more independent outside
directors rose from 17% to
91 %
(JPY tn)

- Accepted by more than 230 institutional investors

2011 2012 2013 2014 2015 2016 ▶ Stewardship Code
Source: Ministry of Finance “Financial Statements Statistics of Corporations by
Industry”; all industries, enterprises with capital of at least 10 JPY mn but less than
100 JPY mn, seasonally adjusted figures Source: Tokyo Stock Exchange

Regional Revitalization
Reform corporate tax to be growth-oriented For more information:
Optimize administrative processes To ensure Japan's economic recovery
●Reduce corporate tax rate below 30% mark in 2016 ●

-Reduce administrative costs by 20% by 2020 from 2017 reaches all corners of the country, the
38 levels in areas that are considered to have the heaviest government is working in unison with all
burden, e.g., for “business approvals and licenses” and stakeholders to help create a more sustain-

36 37.00
“social insurance” able and self-reliant society, utilizing the
34 -Consolidate scattered registration outlets for different unique characteristics of every region.
documents into one convenient outlet, e.g., Tokyo One-Stop - Welcome foreign business and invest-
32.11 Business Establishment Center ment to areas outside of the major cities,
30 highlighting the rich opportunities in
29.97 29.74
● Host FDI seminars to disseminate FDI information local areas
- Create a stimulus for people to move
26 Source: Ministry of Finance
● Support the matching of foreign companies with domestic outside of major cities to find more
FY2013 FY2015 FY2016 FY2018
SMEs by utilizing the J-GoodTech website: fulfillment
● Substantial tax burden on corporate profits will be reduced to - Remove geographical constraints when
as low as 25% for companies proactively engaging in wage living in regional areas through new
increases and capital investment. Achievements technologies, such as IoT

● Companies also proactively engaging in advanced IT investment ▶

will be eligible for further tax reductions, bringing the

cases processed at the Tokyo One-Stop Business
substantial tax burden on corporate profits down to as low as Okinawa
Establishment Center (as of July 2018)
▶ Net amount of inward foreign direct investment (FDI)
in 2017 marked a record high of 28.6 trillion yen
Achievements Chubu

35 Chugoku
28.2 28.6
▶ Annual corporate tax revenue increased by close to 24.8

trillion yen compared to the previous administra- by 2020

tion, despite the reduced corporate tax rate (JPY tn)

2010 2015 2016 2017 2020 Shikoku

Source: Ministry of Finance “International Investment Position of Japan” as of May 2018

Invest in Japan, the Land of Rising Opportunities!
Japan is quickly transforming to become the most business-friendly nation in the world.
Japan welcomes your investment.

Market Evolving Quality Business

Potential Innovation Environment
Thanks to Abenomics, the world’s Backed by regulatory reforms, R&D Sophisticated transportation
third largest economy keeps activities are accelerating innova- network, expanding FTAs and
booming by increasing productivity tion, and creating new business growth-oriented policy measures
and embracing highly skilled, opportunities, e.g., in digital and are creating a favorable environment
diverse human resources. medical/healthcare industries. for global business.