Prime Minister Shinzo Abe held a meeting with managers of small- and medium-sized enterprises at the Prime Minister’s Office.

The Prime Minister said in his address,

“The views you have expressed have been extremely useful in formulating the policies of the Abe administration ever since its inauguration. Small- and medium-sized enterprises (SMEs) may be one of the factors contributing to the positive economic conditions in the United States, and I believe that may be the case in Japan as well. Furthermore, as part of my immediate policies, I am focusing on regional vitalization and ensuring that the effects of Abenomics are thoroughly experienced throughout all parts of Japan. I very much look forward to hearing from all of you about the situation in Tohoku, Aichi, Osaka, and the Tokyo metropolitan area.   

Immediately after the general election last year, we reached an agreement among government, labor, and management, and formulated emergency economic measures, the regional vitalization strategy, taxation reforms, a supplementary budget, and the Short-Term Economic Survey of Enterprises in Japan (Tankan). Tomorrow we plan to approve the Government’s draft FY2015 budget by a Cabinet decision. One consistent pillar in our policies is policies and measures related to SMEs and small businesses. I believe it is your hard work and desire to spread your roots throughout your respective regions, employ local people, and do what you can to vitalize the local region, that is supporting local employment, local communities, and local livelihoods.

I am aware of the various difficult issues we face, such as increases in the prices of fuel and electricity, insufficient human resources, and above all, the mindset of consumers and the limited growth of consumption. Last year I decided to postpone raising the consumption tax for 18 months. My reason for doing so was precisely because I felt that it was necessary for you all to have a period in which you can cultivate the strength you need to achieve steady growth, and to ensure that your growth is sustained. Indeed, I am convinced that the success of our policies truly depends on the activities of all of you to support both the local regions and the entire Japanese economy.  

The Government is also increasing its support and cooperative measures, such as through efforts to reflect the growing profits of major corporations in their trade prices with SMEs. The supplementary budget includes subsidies for investment in energy-saving equipment, the establishment of low-interest financing, and the extension of manufacturing subsidies to the service industry. 

We will also provide support for overseas development. Some of you here today accompanied me last year when I visited Germany or Latin America and the Caribbean. Some representatives of venture businesses, and manufacturing and food-related SMEs will also accompany me on my trip to the Middle East starting this Friday. We face various issues of concern such as the aging society and the falling birthrate, regional stagnation, and rising raw material prices. I believe the key to overcoming such concerns is SMEs and small businesses, and the efforts of all who work for them. Furthermore, I am convinced that if all of you fully exert your abilities and talents, we can create a highly attractive environment, and ensure the further success of the three arrows of Abenomics that we are advancing.

I would like to request all of you here today to share your frank opinions. Thank you.”