Public-Private Partnership Forum on Increasing Domestic Investment

January 27, 2025

[Provisional translation]

On January 27, 2025, Prime Minister Ishiba held a public-private partnership forum on increasing domestic investment at the Prime Minister’s Office.
At the meeting, the participants exchanged views on increasing domestic investment.
Following the discussion, the Prime Minister said:
“Our Cabinet seeks to realize a ‘growth-oriented economy driven by wage increases and investment’ through the shift from a ‘cost-cutting economy’ to an ‘economy based on the creation of high amounts of added value.’ To this end, it is crucial to actively expand domestic investments.
Chairman Tokura of Keidanren (Japan Business Federation) expressed his intention to go beyond the existing domestic investment target of 115 trillion yen and aim for ambitious goals of 135 trillion yen in FY2030 and 200 trillion yen in FY2040. Both the public and private sectors need to work together to achieve these goals.
As a silver lining is finally emerging in terms of domestic investments and wages, now is a critical moment. The Government, on its part, is pushing ahead with such efforts as the earmarking of over 900 billion yen for the creation of an environment to raise wages, including productivity improvement, in the supplementary budget, as well as the submission to the current session of the Diet of a bill to build a growth-oriented carbon pricing system to attract green transformation (GX) investments of more than 150 trillion yen and a bill to develop an environment to channel investments of over 50 trillion yen into the artificial intelligence (AI) and semiconductor sectors.
Going forward, with an eye on the amendment to the Companies Act, we will further advance discussions and reach conclusions on such issues as regulatory and institutional reforms that will support corporate investments in growth, the development of an environment for dialogue with investors with a view to enhancing long-term corporate value, incentive measures to stimulate capital, research and development, and human resource investments in such growth areas as GX and digital transformation (DX), support for infrastructure development including the acquisition of industrial sites, the formulation and implementation of plans to make labor-saving investments tailored to the actual conditions of each industry, and the establishment of on-site support systems.
When we look at the recent trends of these domestic investments, the less investment the region has received thus far, the more investment it is attracting; therefore, maintaining and strengthening this trend will lead to the ‘The Reiwa Era remodeling of the Japanese archipelago .’ I request the relevant ministers to collaborate with each other and give concrete shape to policies under the leadership of Minister of Economy, Trade and Industry Muto and Minister Akazawa. Thank you very much for attending the forum out of your busy schedule today.”

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