Distinguished colleagues, my name is Yoshihiko NODA, Prime Minister of Japan. It is a great honor to be able to present to global business leaders at the APEC CEO Summit about the Japanese economy; where it stands now and where it is headed to for the future.

 

Eight months have passed since the massive earthquake hit Japan. Japanese people have been making strong efforts for recovery backed by generous support from all around the world. The infrastructure and local economy in the disaster-affected region are steadily being restored. Normal daily life has come back to most parts of Japan, including the Metropolitan area. Manufacturing industries have restored their supply chains and are fulfilling their responsibilities as global suppliers.

 

Let me turn to the nuclear power plant accident in Fukushima. The reactors are within a steady cooling-down process and the incident is being resolved faster than we initially expected. In terms of business environment, the nuclear incident is NOT an obstacle against business in Japan any more.

 

Looking back at the history of my country, I am confident to say that the Japanese are strong in crisis. The Japanese are now, trying to regenerate themselves by bouncing back from this crisis. I would like to take this opportunity to appeal two points to global business leaders.

 

Firstly, the momentum produced by promotion of recovery will strongly push our economic growth. In fact, according to IMF's forecast, the Japanese economy is expected to grow by 2.3% in 2012 and this is higher than other developed economies. I think we can achieve even higher figures if we can unleash the potential of Japan, such as the power of SMEs (small and medium enterprises) and women.

 

This is more than just "a recovery demand after a disaster." What we are observing is the recovery process itself creating a powerful force that drives innovation. What we are promoting under the name of "recovery" is NOT a "restoration" of the past. The core of our recovery is to take advantage of the strengths of local communities and harness them to implement, cutting-edge growth models in primary industries such as agriculture, forestry, and fishery businesses as well as the renewable energy and medical industries.

 

What is the government doing? We are creating "special reconstruction districts" in disaster-affected regions where we will implement bold stimulus policies to attract investment, which include exemption of all corporate taxes for newly-established corporations for five years.

 

We welcome investment from all companies, domestic and foreign, who can be partners to promote our new recovery, and the government is trying to create the right environment as fast as we can.

 

Coming to the second point, I would like to emphasize that Japan, as a core Asia-Pacific country, is strongly determined to enhance its bonds with each economy in this region. In this region with dynamic economic growth, promotion of further economic integration will benefit all economies. The "Yokohama Vision", which was established last year, will be the roadmap in this regard.

 

I used the word "bond." Reinforcement of economic partnerships is a testimony to such a bond. In order to facilitate the flow of people, goods and capital in the region and create a favorable environment for businesses, Japan will press ahead with fundamental domestic reform and promote high level economic partnerships, and will take initiatives to formulate the trade and investment rules of the next generation.

 

Asia-Pacific region is facing common challenges which could compromise our future development such as natural disasters, pollution of air and water, conservation of energy, and steep rise of food prices. Japan will develop "bonds" with other APEC economies by also contributing to the resolution of these common challenges through public-private partnerships.

 

Japan's recovery cannot be achieved without in the bonds in Asia-Pacific region. At the same time, the sound future of the Asia-Pacific region cannot be achieved without Japan's contribution.

 

Let me conclude this message by reaffirming that the Japanese economy will rise again by going beyond recovery and will follow its path toward growth. And through innovation, Japan will continue its contribution to create a better world. Distinguished global business leaders, I would like to invite each one of you to join us in our pursuit of recovery. Together, we will open the door to the future of the Asia-Pacific region.

 

Thank you for your attention.