Govt. Shows Draft Plans On Kishida's 'new Form Of Capitalism'
Japan's government has disclosed plans to realize a "new form of capitalism" advocated by Prime Minister Kishida Fumio. The plans include doubling people's asset income.
The plans were presented at a meeting of the government's council on "new form of capitalism realization" on Tuesday.
The government says it aims to achieve economic growth while addressing climate change, digitalization and other issues through cooperation between the public and private sectors. It plans to make focused investments in four fields: people; science, technology and innovation; startups; and green and digital.
As for investment in people, the government plans to make further efforts to raise wages. It also plans to set up a system that allows workers to have consultation outside their companies about changing jobs and career enhancement. The government also plans to have a support program covering around 1 million workers, including non-regular ones, to develop their skills and find them new jobs.
To shift individuals' financial assets from savings to investment, the government intends to draw up an asset-income doubling plan this year. The plan includes reforms of a preferential tax system for individual investors called NISA and a fixed contribution pension for individuals called iDeCo.
In the area of science, technology and innovation, the government plans to form a strategy on new technologies, including quantum technology and artificial intelligence.
It will introduce a science and technology adviser for prime minister.
To support startups, the government will devise a five-year plan this year. It aims to submit related bills to create a system that allows startups to raise funds by using the value of their entire business as collateral.
In the green and digital area, the government says the public and private sectors will work together to make investments worth 150 trillion yen, or roughly 1.2 trillion dollars, over the next 10 years for a carbon-free society. The government also says it will present a roadmap in the field that includes its support measures.
The government will decide on the plans at a Cabinet meeting in early June after holding discussions with the ruling parties.