Abe unveils int'l business city project
Prime Minister Shinzo Abe unveiled on Wednesday a plan to create "national strategic special deregulation zones," by which he aims to build international business cities where technology, manpower and investment will be concentrated from overseas.
During a speech at a Tokyo hotel, Abe also set a target of boosting per-capita gross national income by 1.5 million yen or more over the next decade by promoting a growth strategy under his “Abenomics” economic policies.
Abe previously delivered speeches on a growth strategy--the “third arrow” of Abenomics, following a bold monetary easing policy and flexible fiscal policy--in April and May. Abe considers Wednesday’s speech a final mop-up explanation of his growth strategy.
Based on a set of proposals made by the Regulatory Reform Council on Wednesday morning, the government was set to present a draft for its growth strategy during a meeting of the Industrial Competitiveness Council later in the day.
The Cabinet is expected to approve the comprehensive growth strategy on June 14.
The national strategic special deregulation zones, which are expected to be created in major cities, aim to lure foreign companies by drastically easing regulations, including floor-area ratios, permission for foreign doctors to do business and requirements related to the establishment of international schools. “We’ll create an international business environment comparable to cities such as London and New York,” Abe said.
Abe also stressed the nation’s economic growth will also impact household economy favorably. “The growth strategy will change the economic stagnation to revival.”
Regarding the nation’s infrastructure, Abe said the government will promote the private finance initiative (PFI), under which the private sector’s funds and management know-how are used to develop public facilities to renew aging Metropolitan Expressway routes that need major repairs. Abe said the government will implement PFI projects totaling 12 trillion yen, which is three times that of the last decade, over the next decade.
The government will double the balance of foreign direct investment in the country to 35 trillion yen in 2020, Abe said.
Abe also said the government will promote full liberalization of the electricity retail market as well as the separation of power generation and transmission businesses.
Pointing out that increasing investment to improve technology for renewable energy and expanding its export is the only way for a nation with few natural resources to survive, the government is expected to boost investment in electricity-related businesses to about 30 trillion yen, which is about 1.5 times that of the last decade.
