Provisional Translation
FY2018 Report on Priority Measures and Others for Innovative Business Activity Action Plan
I. About this Report
In December 2012, the Cabinet decided to establish the "Headquarters for Japan's Economic Revitalization," with Prime Minister serving as its head and all Ministers of State as its members. Under the Headquarters, the Cabinet also decided in January 2013 to hold meetings of the "Industrial Competitiveness Council." Under the "Headquarters for Japan's Economic Revitalization," moreover, it was decided in September 2016 to hold meetings of the "Council on Investments for the Future." The Cabinet approved the followings so far: • In June 2013, the "Japan Revitalization Strategy" was approved by the Cabinet. • In January 2014, the "Action Plan for Strengthening Industrial Competitiveness" was approved by the Cabinet. • In June 2014, the "Japan Revitalization Strategy (Revised in 2014)" was approved by the Cabinet. • In February 2015, "FY2014 Report on Priority Measures for Strengthening Industrial Competitiveness" was approved by the Cabinet and submitted to the Diet. • In February 2015, the "Action Plan for Strengthening Industrial Competitiveness (2015)" was approved by the Cabinet. • In June 2015, the "Japan Revitalization Strategy (Revised in 2015)" was approved by the Cabinet. • In February 2016, the "Action Plan for Strengthening Industrial Competitiveness (2016)" was approved by the Cabinet. • In February 2016, "FY2015 Report on Priority Measures for Strengthening Industrial Competitiveness" was approved by the Cabinet and submitted to the Diet. • In June 2016, the "Japan Revitalization Strategy 2016" was approved by the Cabinet. • In February 2017, the "Action Plan for Strengthening Industrial Competitiveness (2017)" was approved by the Cabinet. • In February 2017, "FY2016 Report on Priority Measures for Strengthening Industrial Competitiveness" was approved by the Cabinet and submitted to the Diet. • In June 2017, the "Future Investment Strategy 2017" was decided by the Cabinet. • In December 2017, the “New Economic Policy Package” was decided by the Cabinet. • In June 2018, the "Future Investment Strategy 2018” and “Action Plan for Innovative Business Activity” (hereinafter referred to as the "Action Plan") was approved by the Cabinet.
This Report summarizes the measures and the progress and implementation status concerning the measures for innovative business activities that are stipulated in the Action Plan (hereinafter referred to as the "Priority Measures"). This Report has been formulated in accordance with Article 6, Paragraph 9 of the Act on Special Measures for Productivity Improvement (Act No. 25 of 2018), which requires formulation of a report at the end of each fiscal year for submission to the Diet, concerning the progress, implementation status, and evaluation results of these priority measures.
1
Provisional Translation
II. Progress, Implementation Status and Effectiveness of Priority Measures i. Priority sectors for future actions to realize “Society 5.0” and driving force of renovation “Flagship Project” and others [1] Change of “Life” and “Industry” 1. Development of next-generation mobility system 1) Progress in achieving KPI targets1
2) Progress made in implementing measures Measure Contents and completion deadline Progress and implementation status Minister in charge2 Smooth and • Demonstration experiments of the • Ministry of Economy, Trade and Prime Minister quick promotion unmanned automated driving Industry and Ministry of Land, (Minister in charge of of demonstration transportation service in more Infrastructure. Transport and Information projects actual situations have been Tourism performed demonstration Technology Policy, conducted since FY2018 with an experiments in Eiheiji-cho, Fukui Minister of State for aim to realize the service in 2020. Prefecture for a single driver to Science and Activities to realize business of remotely monitor and operate Technology, Minister such services are accelerated, multiple automated driving of State for Regional including demonstration vehicles. With an aim at social Revitalization, experiments where a single driver implementation of the automated National Public Safety remotely monitors and operates driving transportation service at Commission multiple vehicles, demonstration road-side stations “Michi-no-eki” Chairman), Minister of experiments for a longer period by 2020, Ministry of Land, Internal Affairs and of time, and demonstration Infrastructure. Transport and Communications, experiments not only in Tourism performed demonstration Minister of Economy, mountainous areas but also in so- experiments for a long period of a Trade and Industry, called old new towns in suburban month or longer in collaboration Minister of Land, areas where aging of the with local companies to secure Infrastructure, population is in progress.. human resources and logistics in Transport and Tourism
1 The number in [ ] at the end of each KPI target represents the corresponding serial number in the attached "Progress in KPI Targets" for reference. 2 Article 6, Paragraph 2, (iii) of Nos. 3 to 5 of the Act on Special Measures for Productivity Improvement stipulates that the "responsible minister" in the Action Plan for Strengthening Industrial Competitiveness means the competent minister stipulated in the Cabinet Act (Act No. 5 of 1947). For this reason, Prime Minister is listed here for the responsible minister as the competent Minister of affairs pertaining to the Cabinet Secretariat and the Cabinet Office. As a reference for evaluating the implementation status and effectiveness of priority measures in accordance with the Act on Special Measures for Productivity Improvement, however, the Minister of State, who assisted Prime Minister in the said measure at the point when this Report was formulated is also listed in parentheses for reference. 2
Provisional Translation
hilly and mountainous areas where aging of the population is in progress. In addition in February 2019, demonstration experiments of automated driving vehicles were performed in so-called old new towns in Tama-shi, Tokyo and Miki-shi, Hyogo Prefecture. • To show the state-of-the-art • In order to build a driving Prime Minister automated driving technology to environment that can realize (Minister in charge of domestic and foreign visitors at vehicle-infrastructure cooperative Information the 2020 Tokyo Olympic and automated driving that utilizes Technology Policy, Paralympic Games and make it a traffic signal information and Minister of State for legacy, an infrastructure to merging support information Science and provide traffic signal information provided from traffic infrastructure Technology, Minister to vehicles, magnetic markers, in the Haneda Airport area and of State for Regional and inter-vehicle communication Tokyo Waterfront City area, Revitalization, system will be developed by specific areas and functions and National Public Safety FY2019 in Haneda Airport and locations of necessary traffic Commission Tokyo Waterfront area to perform infrastructures are being surveyed Chairman), Minister of the state-of-the-art demonstration and examined within the Internal Affairs and experiments of remote operations framework of the Cabinet Office Communications, and full automated driving. SIP. Participants have begun to be Minister of Economy, recruited to provide an Trade and Industry, internationally open opportunity for Minister of Land, implementation of demonstration Infrastructure, experiments from the second half Transport, and of 2019. Tourism Development of • Safety requirement and safety • “Guideline of Safety Technology Prime Minister the system for measures for automated driving of Automated Driving Vehicles,” (Minister in charge of the realization of vehicles will be examined and a which described safety Information automated guideline will be created by requirements and safety measures Technology Policy, driving around summer of 2018. In for automated driving vehicles, was Minister of State for addition, specific safety standards formulated and released in Science and of new technologies will be September 2018. Technology, National established one by one without Currently, standards are being Public Safety hindering innovation to lead formulated step by step on the basis Commission establishment of international of international discussions with Chairman), Minister of standards. special attentions to not hindering Economy, Trade and of progress or diversity of Industry, Minister of technological development. Land, Infrastructure, Recently, a standard on automatic Transport and Tourism lane changing on a expressway (starting from a turn signal operation) agreed at the United Nations in March 2018 was formulated and released in October 2018. In addition, an amendment 3 of Road Transport Vehicle Act was submitted to the ordinary Diet session in 2019 for not only safe development, practical application, and promotion of automated driving vehicles but also securing of the safety of automated driving vehicles and others in an integrated way from design and
3 Draft to partly amend the Road Transport Vehicle Act 3
Provisional Translation
manufacturing process to operational process.
4
Provisional Translation
• As for traffic rules, examining • Actively joining international Prime Minister review of the current driver’s discussions as a member of Global (Minister in charge of responsibilities related to rules Forum for Road Traffic Safety Information for drivers who use automated (WP.1) in Inland Transport Technology Policy, driving vehicles on what Committee of the United Nations Minister of State for activities other than driving Economic Commission for Europe Science and (secondary activities) can be (UNECE), the Japanese Technology, National allowed during automated government created a draft Public Safety driving, is in progress while amendment 4 to the Road Traffic Commission leading the international Act, which contained the Chairman) discussions and collaborating establishment of regulations with associated nations. concerning driver’s responsibilities, Furthermore, examine new on the basis of the discussion of responsibilities of the drivers who “Investigative Committee for the use automated driving vehicles Realization of Automated Driving and penalty for nonconformity Based on the Direction of with the rules in the Road Traffic Technological Development” Act during automated driving is regarding the revision of the Road in progress. These issues, Traffic Act for Level-3 automated including necessity of law driving. The amendment was amendment at the ordinary Diet submitted to the ordinary Diet session in 2019, will be examined session in 2019. in FY2018 in the investigative committee with experts. • For the Business Act, measures to • To formulate a guideline of what Prime Minister secure safety of transport and transportation companies should (Minister in charge of convenience of passengers for handle, a hearing survey for Information unmanned vehicles will be companies which will introduce Technology Policy, examined in FY2018.. automated driving vehicles is Minister of State for conducted to identify things that Science and should be clarified in the guideline, Technology, National which will finish by the first half of Public Safety 2019. Commission Chairman), Minister of Economy, Trade and Industry, Minister of Land, Infrastructure, Transport and Tourism New activity for • In order to promote mobility • Ministry of Economy, Trade and Prime Minister development of services and others (MaaS) that Industry held “Workshop of New (Minister in charge of next-generation create new added value by Mobility Service realized by IoT Information mobility system connecting various traffic and AI” with corporate members Technology Policy, services with data , we will and knowledgeable members. In Minister of State for discuss advancement of traffic the workshop, they discussed Science and services including on-demand various kinds of services including Technology, National transport, construction of MaaS and identified important Public Safety platforms through data linkage issues such as delays in Commission using API, etc., and the legal digitalization of mobility-related Chairman), Minister of system corresponding to those data, barriers between companies Economy, Trade and situations in FY2018. which hinder the data linkage, and Industry, Minister of lack of collaboration with different Land, Infrastructure, industrial sectors. Ministry of Transport and Tourism Land, Infrastructure. Transport and Tourism held “Informal Conference of Mobility Services in Cities and Rural Areas” with knowledgeable members and made
4 Draft amendment to the Road Traffic Act 5
Provisional Translation
an interim report on activities to promote new mobility services including MaaS.
6
Provisional Translation
2. Development of next-generation health care system 1) Progress in achieving KPI targets
2) Progress made in implementing measures Measure Contents and completion deadline Progress and implementation status Minister in charge Promotion of use of • By issuing individually the ID • An amendment5 of the Health Prime Minister base data for number of the insured of health Insurance Act including introduction (Minister in charge health, medical, insurance and using the of “online qualification check of Information and nursing infrastructure of the “My system,” where My Number Card Technology Policy, services suitable for Number” system to centrally can be used as health insurance card Minister of State individuals control the health insurance by issuing individually the ID for My Number qualification information of the number of the insured of health System), Minister insured which is associated with insurance and centrally controlling of Finance, a career change or retirement, history of qualification information Minister of Internal “online verification of health by insurers, and establishment of Affairs and insurance qualifications” where “medical information technology Communications, My Number Card can be used as supporting fund” to support initial Minister of Health, health insurance card will be introduction of the system to medical Labor and Welfare formally started by 2020. agencies and pharmacies was submitted to the regular Diet in 2019. • A specific schedule to create a • The schedule was discussed in Minister of Internal nationwide health and medical "Study meeting for medical-sector Affairs and information network where information sharing system” of the Communications, medical agencies can share Ministry of Health, Labor and Minister of Health, information of health check, Welfare. The schedule of the Labor and Welfare medical treatment, and drugs of nationwide network of health and individuals will be established medical information and nursing by summer of 2018 with a information was made open at "Data viewpoint on cost effectiveness Health Reform Promotion taken account of, with an aim at Headquarters" of the Ministry of formal start of the network in Health, Labor and Welfare in July FY2020 after necessary 2018. Furthermore, a survey demonstrations. In addition, the necessary for demonstrations of the schedule shall include provision health and medical record sharing of nursing information in the service and establishment of the health and medical information network was performed in FY2018 network. according to the schedule.
5 Draft to partially amend the Health Insurance Act for appropriate and efficient management of the medical insurance system 7
Provisional Translation
• To realize nationwide ICT • In the FY 2018 budget project, the Minister of Internal application and information standard specifications necessary for Affairs and sharing for nursing and to care plan information sharing Communications, develop efficient and effective between the home care support Minister of Health, collaboration of nursing people, offices and the home service offices Labor and Welfare standard specifications of the were created. To introduce ICT in the information sharing between nursing care sector, an ICT home care support offices and introduction support project for home-visit care service offices nursing care offices utilizing the The will be studied and determined Fund for Comprehensively Securing in FY2018. Moreover, ICT- Regional Health and Long-term Care based collaboration in medical was incorporated in the FY2019 treatment and nursing will be budget. demonstrated in FY2018 and Also in the FY 2018 budget project, obtained results will be used to demonstrations of data start discussions on standard standardization necessary for specifications. information sharing between medical agencies and nursing care offices were performed. To create certain standard specifications of necessary information for the medical-nursing collaboration on the basis of the demonstrations, necessary study will be performed in the FY2019 budget project. • Data of PHR (Personal Health • Examination on a system to provide Prime Minister Record), which is a system to the person through Mynaportal with (Minister in charge lead the individual and family to data such as specific medical of Information understand individual's health examination data and drug Technology Policy, condition and medication information was reported in Medical Minister of State history, etc. and lead to daily life Insurance Subcommittee of Social for My Number improvement and health Insurance Council in December, System), Minister promotion, will be formally 2018, and drug information will be of Internal Affairs provided to the person etc. formally provided around October and through Mynaportal from 2021. To start formal provision of Communications, FY2020. specific medical examination data in Minister of FY2020, arrangement of medical Education, Culture, examination result items which need Sports, Science to be presented and an easy-to- and Technology, understand way of showing them will Minister of Health, be discussed in detail. Labor and Welfare • Therefore, in addition to • "Study meeting on utilization of vaccination history (starting maternal and child health from FY2017), provision of information in the data health age" medical checkup data such as was held to discuss utilization of specific medical checkup and maternal and child health infants medical checkup will be information such as infants medical started in FY2020. Furthermore, examination information and an provision of medical interim report was created in July information such as drug 2018. The report suggests that a information will be examined standard format of electronic record based on necessity, cost of infants medical examination and effectiveness, etc. Conclusions pregnant woman medical will be obtained in FY2018 and examination and information to be a necessary schedule is computerized at the minimum will be examined with an aim to start examined and a system to use the My providing data as early as Number system for users to view possible after FY2021. data on Mynaportal in and after FY2020 will be developed. 8
Provisional Translation
Promotion of health • For creation of a demonstration • A round table consisting of Prime Minister making and disease field where local governments, specialists in various fields such as (Minister in charge and care prevention researchers, companies, etc. pathology, geriatrics, and nursing of health and activities in cooperate and produce new care was established as a public- medical strategy), collaboration with products and services that are private partnership demonstration Minister of workplaces and "friendly to people with platform project for dementia in Education, Culture, local communities dementia", including creation of FY2018, and development of a Sports, Science an environment for super-early demonstration field was discussed and Technology, prevention and life support and for environmental improvement for Minister of Health, social acceptance of people with super-early prevention, life support, Labor and Welfare, dementia, a framework will be and social acceptance. Minister of developed to promote Economy, Trade collaboration among the and Industry governments and private sectors for dementia research in FY2018. Promotion of • In order to take advantage of • For forms required by the Minister of Health, provision of information cooperation in the government and local governments, Labor and Welfare efficient, effective, nursing care sector and ICT in documents related to (1) designated and high-quality the care offices to drastically applications, (2) remuneration medical and care reorganize and streamline the claims, and (3) guidance audits are services and business, actual situation being reviewed. For (1), a ministerial collaboration of regarding the forms that the ordinance was amended in October multiple work government and local 2018 to partially eliminate fields associated governments require the care submission items. For (2) and (3), with service offices to create will be actual situation regarding the comprehensive surveyed and temporal revision documents was surveyed in FY2018 regional care will be implemented in FY2018. and a direction of temporal revision After that, further revision was determined. Based on the above, including revision of the necessary actions will be taken early documents that the business FY2019. establishments create individually will be performed to decrease effective amount of documents by half. • For safe and appropriate spread • In the FY2030 budget, the Minister of Internal of online medical treatment, demonstrations were performed from Affairs, Minister of demonstrations will be a viewpoint of security etc. to enable Health, Labor and performed from a viewpoint of safe and effective online medical Welfare, Minister security etc. on the basis of new treatment. of Economy, Trade evaluation items and new A necessary revision of a system to and Industry guidelines for medical treatment provide online medical care and fee revision in FY2018, matters regarding medical treatment reflection of their technological in January 2019 is being discussed at outcome to a guideline and "Study meeting for review of medical treatment fee revision guideline about appropriate will be examined. implementation of online medical care" for more safe and effective implementation of online medical care.
9
Provisional Translation
• In order to further improve on- • In the “Special survey on the results Minister of Health, line medical care, data and case of FY2018 medical care fee Labor and Welfare examples regarding the revisions”, facility surveys and effectiveness and safety of patient surveys are conducted mainly online medical care including for medical institutions which those not currently targeted for submitted notification regarding medical treatment fee will be facility criteria for online medical collected to grasp the actual care fees. In addition, surveys have situation in cooperation with been conducted to relevant academic relevant academic societies and societies regarding the utilization of business operators. Through the ICT including online medical care in data collection and situation each medical care area. grasping, the evidence will be continuously accumulated. The evaluation on the basis of the accumulated evidences will be performed for revision of the medical service fee from the next term. • On the basis of demonstrations • An amendment7 of the in the National Strategic Special Pharmaceuticals and Medical Zone, it will be examined to Devices Act regarding online incorporate online medication medication instruction was submitted instruction in the next revision to the regular Diet in 2019. The of the Pharmaceuticals and amendment states that, medication Medical Devices Act.6 can be instructed on video phone etc. as an exception to face-to-face medication instruction duty if it is confirmed that proper use of medicines through the video phone etc. can be ensured.
6 Act to ensure quality, validity, and safety of drugs and medical devices (Act No. 145 of 1960) 7 Draft to partially amend the Act to ensure quality, validity, and safety of drugs and medical devices 10
Provisional Translation
3. Next generation industrial system 1) Progress in achieving KPI targets
2) Progress made in implementing measures Measure Contents and completion deadline Progress and implementation Minister in status charge The servitization of • The government will verify the • In light of the emergence of Minister of manufacturing implementation status of the "Japan’s diverse working style needs in Economy, Trade Robot Strategy” (decision by the recent years and and Industry Headquarters for Japan's Economic diversification of users and Revitalization on February 10, 2015). At players involved in the robot the same time, not only through the use industry, the ideal form of a of robots but also through the mutual society that optimizes the collaboration among robots and the entire field of industry and dramatic expansion of robot application people's lives and the areas by using the latest technologies realization of such a society including AI and IoT, the government will be studied by setting up a will assess and organize the model, at meeting body consisting of which the society should aim in order to relevant ministries and optimize industry sites and human life as agencies, and will be reviewed a whole, private sectors’ effort, and the before the summer of 2019. necessary measure system by the next spring. • The government will promptly revise the • In September 2018, See the footnote.8 permission and approval procedures in examination procedure for accordance with the Civil Aeronautics permission and approval under Act (Act No. 231 of 1952) in order to the Civil Aeronautics Act (Act start full-scale deployment of package No. 231 of 1952) was revised, deliveries in mountainous areas using and in November of the same small unmanned aerial vehicles from year, luggage was delivered by FY2018. non-visual flight without an assistant.
8 Prime Minister (Chief Cabinet Secretary, Minister in charge of Information Technology Policy, Minister in charge of economic revitalization, Minister in charge of Cyber Security Strategic Headquarters, Minister of State for Regional Revitalization, National Public Safety Commission Chairman), Minister of Internal Affairs, Minister of Justice, Minister of For Foreign Affairs, Minister of Education, Culture, Sports, Science and Technology, Minister of Health, Labor and Welfare, Minister of Agriculture, Forestry and Fisheries, Minister of Economy, Trade and Industry, Minister of Land, Infrastructure, Transport and Tourism, Minister of Defense, Minister of Reconstruction 11
Provisional Translation
[2] Change of “food” of economic activities 1. Energy and Environment 1) Progress in achieving KPI targets
2) Progress made in implementing measures Progress and implementation Minister in Measure Contents and completion deadline status charge Promotion of • Witha decision to realize a virtuous • In order to formulate the long- Minister of innovation for cycle of the environment and economic term strategy, a “meeting on a Foreign Affairs, energy transition growth, leading global energy transition Long-Term Strategy under the Minister of transitionand and decarbonization, the Japanese Paris Agreement as Growth Economy, Trade decarbonization government, as the G20 chair-country in Strategy” was held in July and Industry, 2019, formulates the long-term strategy 2018, consisting of experts Minister of the as a growth strategy for economic and from various fields such as Environment social development with lower financial, business, and greenhouse-gas emissions under academic sectors. Based on underthe Paris Agreement. For this the discussions of the meeting, purpose, a conference will be set up as the G20 chair-country in withexperts from the financial, business 2019, the Japanese and academia sectors, under which the government formulates the relevant ministries will work together to long-term strategy under promote the review. underthe Paris Agreement, based on the decision to realize a virtuous cycle of the environment and growth, leading global energy transition and decarbonization. Innovation of • Energy saving of business operators is • In order to promote the Minister of energy business promoted through promotion of efficient cooperation of multiple Economy, Trade and environment operation of facilities by cooperation of businesses, not only measures and Industry business using IoT multiple business operators and for taxation and equipment and AI utilization of IoT and AI, public release introduction subsidy were of data obtained through regulation and made in the tax system support in consideration of corporate revision in 2018 but also an secrets of the data, and support of amendment of the law on the facility investment utilizing leasing. rationalization of the use of energy (Energy Saving law) (Act No. 49 in 1979) was promulgated in June 2018 and enforced in December of the same year.
12
Provisional Translation
• To promote energy saving in the • A draft to partially amend the Minister of residential sector, not only refurbishing law on the improvement of Economy, Trade of houses and buildings for lower energy energy consumption and Industry, consumption was promoted but also self- performance of buildings was Minister of Land, consumption ZEH utilizing advanced submitted to the regular Diet Infrastructure, energy management was distributed by in 2019. In the amendment, Transport and 2030 so that new houses and buildings large housing companies Tourism, and would be of the type ZEH or ZEB on supplying custom houses and Minister of the average. apartments for rent were added Environment to the target of the Top Runner System for improvement of energy consumption performance of houses and buildings.
13
Provisional Translation
2. Realization of FinTech/Cashless Society 1) Progress in achieving KPI targets
2) Progress made in implementing measures Progress and implementation Minister in Measure Contents and completion deadline status charge Review of the law • The relevant ministries and agencies • The Financial Council's Prime Minister system based on concerned will collaboratively consider "Financial System Study (Minister of State innovation progress reviewing the financial and commerce- Group" made discussions and for Financial related laws and regulations for each compiled “Interim report from Services); type of business into function-based and the financial system study Minister of cross-cutting laws that apply the same group: Toward a function- Economy, Trade rules to the same functions and risks. based and cross-cutting and Industry The basic way of thinking for the financial regulatory system" development of such laws will be on June 19, 2018. The studied in an interim report in FY2018. discussion of the Group continues. In addition, the Industrial Structure Council's Commerce and Distribution Information Subcommittee "Installment Sales Subcommittee" is examining the way of installment sales legislation, including cross- legal legislation. • Since it is pointed out that identity • An order to revise a part of the Prime Minister verification procedures using mail are a law enforcement regulations (Minister of State burden to both corporates and users, the concerning prevention of for Financial Rules for the Enforcement of the Crime profit transfer by crime Services, Revenue Transfer Prevention Act (Ministerial Ordinance No. 3 Chairman of the (Ministerial Ordinance No. 1 from from Cabinet Office, Ministry National Public Cabinet Office, Ministry of Internal of Internal Affairs and Safety Council) Affairs and Communications, Ministry Communications, Ministry of of Justice, Ministry of Finance, Ministry Justice, Ministry of Finance, of Health, Labor and Welfare, Ministry Ministry of Health, Labor and of Agriculture, Forestry and Fisheries, Welfare, Ministry of Ministry of Economy, Trade and Agriculture, Forestry and Industry, Ministry of Land, Fisheries, Ministry of Infrastructure, Transport and Tourism in Economy, Trade and Industry, 2008) will be promptly revised and an Ministry of Land, online identity verification method that Infrastructure, Transport and utilizes the image of the person's face Tourism in 2018) was will be introduced. promulgated and enforced on November 30, 2018, and an online identity verification method using the image of the person’s face was introduced.
14
Provisional Translation
• A systematic response to the cases in the • "Study Group on Virtual Prime Minister virtual currency exchange business such Currency Exchange Business" (Minister of State as leakage of customer’s assets from a established at the Financial for Financial virtual currency exchange company, lack Services Agency in March Services) of an internal control system, and the 2018 discussed the issue and appearance of new transactions in virtual compiled "Report on Virtual currency will be studied. Currency Exchange Business" on December 21, 2018. Based on this report, a draft to partially amend the laws on fund settlement was submitted to the regular Diet in 2019 to handle the diversification of financial transactions accompanying the advancement of information and communication technology. Promotion of • The number of banks that provide API • In February 2019, Prime Minister practical and the number of banks that have "Development situation of (Minister of State application of block contract with electronic settlement policy on financial for Financial chain technology agencies will be followed up and institution’s cooperation and Services), and other registration examination of the electronic collaboration with electronic Minister of innovations settlement agencies will be carried out settlement agencies" was Economy, Trade properly. In addition, not only sharing of created and released. There are and Industry contractual and technological issues that 41 electronic settlement arise in API collaboration and sharing of agencies registered as of good collaboration cases but also API March 31, 2019. In December collaboration between FinTech 2012, "Study Group on Open companies and credit card companies are API" revised and released "the promoted. Code Example of API Usage Contract Based on the Banking Act (First Edition)" and "Telegram Specification Standard for Open API in the Banking Field (Second Edition)." Development of • In order to steadily realize the • In preparation for the Prime Minister infrastructure for implementation of the Zengin EDI operation of the Zengin EDI (Minister of State collaboration system in December 2018 and make all System (ZEDI), the National for Financial between financial remittance telegrams in XML by 2020, Bankers Association held Services), and commercial the financial industry, industry, and briefing sessions in all Minister of channels related ministries such as the National prefectures and conducted Economy, Trade Bankers Association and the Chamber of information dissemination and Industry Commerce will cooperate with each activities for financial other to promote activities such as institutions and companies, information dissemination activities and and ZEDI started operation in sharing examples of use of the system. December 2018.
15
Provisional Translation
• Preparation for start of common local tax • Start of the common local tax Prime Minister payment system in October 2019 will be payment system in October (Minister in conducted. In addition, the "study 2019 is prepared for. In charge of meeting on efficiency of taxation, public addition, the "study meeting Information money collection, and payment” with on efficiency of taxation, Technology members from financial institutions, public money collection, and Policy, Minister relevant ministries and agencies, local payment" studied actions and of State for My governments, FinTech companies etc. future activities to solve Number System, will discuss problems of improvement problems and published a Minister in and higher efficiency of user survey report in March 2019. charge of convenience by IT in or around FY2018. Regulation Reform, Minister in charge of Information Technology Policy, National Public Safety Commission Chairman), Minister of Internal Affairs and Communications, Minister of Finance, Minister of Health, Labor and Welfare, Minister of Economy, Trade and Industry Acceleration of • Based on "Cashless Vision" (formulated • In July 2018, the "Cashless Prime Minister activities to realize by the Ministry of Economy, Trade and Promotion Council" was (Minister of State cashless society Industry in April 2018), "Cashless established. Working groups for Financial Promotion Council (tentative name)" were established in the three Services), with members from industry, fields of consumer Minister of government, and academia involved in convenience improvement, Economy, Trade cashless promotion will be immediately business productivity and Industry established in 2018 for comprehensive improvement, and discussion on the activities to realize a improvement of systems and cashless society, including incentive infrastructure to study measures that both businesses and standardization of QR code consumers can easily accept. settlement and development of credit card API guidelines. • Development of rules of two- • In January 2019, the "Cashless Prime Minister dimensional code (QR code, etc.) will be Promotion Council" (Minister of State examined while securing a simple and formulated guidelines on CPM for Financial high-security cashless payment system (bar code) with which Services), and necessary measures will be customers present their bar Minister of determined in FY2018. Moreover, codes to stores and make Economy, Trade following-up and environment settlements. Furthermore, in and Industry development necessary for private March 2019, the Cashless sector's efforts such as mobile payment Promotion Council formulated service using mobile phone number or guidelines on MPM and CPM biometric technology will be studied. (QR code) with which stores present their QR codes to customers and make settlements.
16
Provisional Translation
[3] Change of “governmental administration” and “infrastructure” 1. Realization of digital government (productivity innovation from government) 1) Progress in achieving KPI targets
2) Progress made in implementing measures Measure Contents and completion deadline Progress and implementation status Minister in charge Promotion of • Leaving the traditional " top-to- • For "moving" and Prime Minister main projects bottom " type online approach that "death/inheritance," an interim (Minister in charge of focuses on individual procedures report on an image of the service Information only, and from a thorough user’s and problems was made in Technology Policy, perspective, one-stop service of October 2018 and a concrete Minister of State for personal administrative procedures measure plan to realize the one- My Number System, that have a major impact on many stop service was created in March National Public Safety people's lives will be promoted 2019. Commission strongly. For "nursing care," an Chairman, Minister of • Specifically, for "moving" and administrative operation State for Financial "death/inheritance," people have to guideline for the online service Services, Minister of do some paper work of the same was announced to local State for Declining content at different windows. One- governments in December 2018. Birthrate), Minister of stop service will start sequentially for The environment for starting the Internal Affairs and moving and death/inheritance in service was thus developed and Communications, FY2019 and for “nursing care " in the service was started Minister of Justice, FY2018. sequentially from the local Minister of Finance, government which got ready to Minister of Health, start. Labor and Welfare, Minister of Economy, Trade and Industry, Minister of Land, Infrastructure, Transport and Tourism • Attached document requirement by • A digital procedure bill9 Prime Minister various procedures will be abolished including the thorough (Minister in charge of through back-office collaboration. In implementation of online Information addition, necessary measures administrative procedures, the Technology Policy) including revision of the identity abolition of attached documents verification methods such as sealing in electronic applications, the and face-to-face procedures, review of identity verification realization of online fee payment methods, the realization of online system, development of API, etc. are fee payments, the development of incorporated in the Digital First Bill API, etc. was submitted to the (tentative name) to be submitted to regular Diet in 2019. the Diet in 2018.
9 Draft to partially amend the laws on the use of information communication technology in administrative procedures for the improvement of the convenience of related parties in administrative procedures and for the simplification and higher efficiency of the administrative management by utilizing the information communication technology 17
Provisional Translation
(One-stop service for corporates) • In order to realize the world's highest • •In order to realize the one-stop Prime Minister level of entrepreneurial environment, service for procedures after (Minister in charge of online one-stop service for registration by January 2020, Information corporation establishment will be connection specifications of the Technology Policy, started. For this purpose, the cooperation between related Minister of State for following actions will be taken, the systems and the Mynaportal are My Number Card, status of the actions will be checked being studied. In addition, from Minister in charge of on a regular basis, and the actions the perspective of achieving economic will be updated in or around 2021 to convenience for applicants, the revitalization), take necessary measures. tax reform in 2019 included Minister of Internal omission of electronic signature Affairs and • Technical examination and etc. in case of using the Communications, preparation were started toward the Mynaportal to submit corporation Minister of Justice, online one-stop service for establishment documents and Minister of Finance, corporation establishment procedure reduction of attached documents Minister of Health, using the Mynaportal. The one-stop of Notification of corporation Labor and Welfare service of the procedure after establishment, etc10. In order to registration will start in the next start the one-stop service for all fiscal year and the one-stop service procedures including certification for all procedures including of articles of association and certification of articles of association registration of incorporation in and establishment registration will FY2020, specifications of start in 2020. connection between related systems are being discussed. • The Ministry of Justice will take • For online processing of Prime Minister work efficiency improvement registration of incorporation (Minister in charge of measures by renewing the within 24 hours, deregulation of Information registration information system requirements for electronic Technology Policy), scheduled to be implemented in signatures on attached Minister of Justice FY2018, with the aim of realizing the documents, and linking of thorough computerization of application information and operations aimed at online attached document information processing within 24 hours of are being examined. For business establishment and registration of efficiency improvement, corporations and the world's highest automation of reception level appropriate prompt processing registration, automatic creation during the next fiscal year. In function of registered information addition, measures for efficiency using application information are improvement of examination of under development in renewing registration will be concluded by the registration information FY2018. system. For streamlined examination of registration, requirements for the application information creation support function and the pre-confirmation function for attached document information were defined in the online application system for registration and deposition. From now on, it is planned to start designing and developing the system.
10 “Notification of Corporation Establishment, etc.” includes Notification of Corporation Establishment and Notification of Commencement of Profit-making Business. 18
Provisional Translation
• With regard to the establishment • The Ministerial Ordinance on Prime Minister procedure of a corporation, Processes Relating to Electronic (Minister in charge of certification of articles of association or Magnetic Records by Information by videophone etc. will be allowed in Designated Notary was revised, Technology Policy), FY2018 under certain conditions. In which permitted under certain Minister of Justice FY2020, a measure to complete conditions the use of videophones simultaneous online application of etc. in the process of certification certification of articles of association of articles of associate and also and establishment registration within online transmission of certified 24 hours will be implemented across electromagnetic records to the country. In future, it will be clients. This reform made it attempted to realize more effective possible to complete certification and efficient procedures of of electronic articles of certification of articles of association association fully online at the end and improve convenience. of FY 2018. Furthermore, system requirements definition necessary for realizing simultaneous applications for certification of articles of association and registration of incorporation has been accomplished. From now on, it is planned to start designing and developing the system. Improvement • In order to enable the implementation • Demonstrations for incorporating Prime Minister of convenience of various procedures with the function to SIM card of a (Minister in charge of of My Number smartphones and the use of private smart phone Currently, based on Information System services utilizing public personal market trends and technology Technology Policy, identification, necessary legal trends, technical issues of other Minister of State for measures will be taken by the regular methods are studied to provide My Number System), Diet in FY2019. In addition, a this service to a wider range of Minister of Internal necessary system will be established users at low cost. Based on the Affairs and and the user certification electronic examination, necessary Communications certificate will be incorporated on the operational and legal measures smartphone as soon as possible after for as many people as possible to a necessary system is organized. In use their smartphones to use the addition, installation of the function public personal identification of My Number Card to a smart phone service inexpensively will be is examined based on the necessary studied. security measures.
19
Provisional Translation
• A framework to assign the insured • In order to incorporate electronic Prime Minister person's number of medical certificate for user certification to (Minister in charge of insurance to individuals and use My smartphones, an amendment of Information Number Card as health insurance the Health Insurance Law11 Technology Policy, card will be formally introduced in including introduction of online Minister of State for FY2020. In order to realize that, qualification check and an My Number System), necessary legal measures to enable amendment of the Public Minister of Internal authentication that does not require Authentication Act12 enabling Affairs and PIN (personal identification number) authentication with no Communications, entry of the electric certificate for requirement on PIN (personal Minister of Finance, user certification under certain identification number) entry of Minister of Health, conditions will be taken by the the electric certificate for user Labor and Welfare ordinary Diet in 2019. In the process certification were submitted to of legalization, the scope of use of the regular Diet in 2019. In this certification will be examined addition, based on the discussions together. at the Digital Government Ministerial Meeting (held on February 15, 2019), the concerned ministries are under consideration to organize measures to promote the use of My Number Card and measures to promote the use of My Number. • Use of the My Number System for • The following three law drafts Prime Minister highly public services such as family were submitted to the regular (Minister in charge of registration, passport related work, Diet in 2019: (1) Digital Information overseas Japanese management, and procedure act which enables the Technology Policy, securities field will be concluded use of My Number for issuing of Minister of State for based on discussion results. a sufferer’s certificate and for Financial Services, Necessary legal measures will be office work related to new Minister of State for submitted to the regular Diet in 2019 influenza vaccination, (2) draft to My Number System, on the basis of the conclusions while partially amend the Family Minister of State for obtaining the understanding of the Registration Law where family Disaster Prevention), public about the measures. registration information can be Minister of Internal included in the information Affairs and linking target and electronic Communications, certificate of family registration Minister of Justice, information can be issued, (3) Minister of Foreign draft to partially amend the Affairs, Minister of Income Tax Law, etc. where the Finance securities depository agency can use My Number to search information of registered persons and provide the My Number of a registered person to respond to an inquiry from a person who has to submit a payment record. A law draft to partially amend the Income Tax Law was established on March 27, 2019.
11 Draft to partially amend the Health Insurance Act for appropriate and efficient management of the medical insurance system 12 Draft to partially amend the laws on the use of information communication technology in administrative procedures for the improvement of the convenience of related parties in administrative procedures and for the simplification and higher efficiency of the administrative management by utilizing the information communication technology 20
Provisional Translation
Release of • Public requests discussed in the Open • Based on the discussions in the Prime Minister open data from Data Public-Private Round Table Open Data Public-Private Round (Minister in charge of public (requests on restaurants, foreign Table, the ministries in charge Information agencies visitors (entry/exit, duty-free will examine the format of data to Technology Policy, shopping, etc.), public transportation, be released, disclosure level, and Minister of State for traffic accidents (traffic accident disclosure method, etc. Disaster Prevention, statistics, school route, etc.), crime National Public Safety occurrence status, geology, disaster Commission information (hazard map, evacuation Chairman), Minister of site, etc.)) will be made open Internal Affairs and according to the Basic Plan for the Communications, Advancement of Public and Private Minister of Justice, Sector Data Utilization. Minister of Finance, Minister of Education, Culture, Sports, Science and Technology, Minister of Health, Labor and Welfare, Minister of Economy, Trade and Industry, Minister of Land, Infrastructure, Transport and Tourism Development • To maximize the investment • For the trial of the Prime Minister of system and effectiveness of the information implementation of the system in (Minister in charge of environment system related budges from the FY2020, detailed discussion Information for digital ministries, activities to promote began in a ministries meeting for Technology Policy), government integrated management of a project budget and procurement of an Minister of Finance promotion are started, from those which can be information system in the started even under the current government system, in each stage from budgetary request to budget implementation. In addition, development of a system to realize effective examination function is examined from a cross- cutting viewpoint of ministries. The system will start as trial in FY2020.
21
Provisional Translation
2. Advanced infrastructure management for next-generation infrastructure, maintenance, and system development 1) Progress in achieving KPI targets
2) Progress made in implementing measures Measure Contents and completion deadline Progress and implementation status Minister in charge Improvement of • In order to deepen i-Construction for • Use of ICT was expanded to Minister of Land, productivity of promotion of the full utilization of ground improvement, ancillary Infrastructure, development and ICT in a construction process, the structure, excavation, etc. to be Transport and maintenance of target will be expanded to all implemented in connection with Tourism infrastructure processes in the construction sector earthwork. A total of 2,099 ICT including construction of bridges, earthworks were implemented (as tunnels, dams, as well as of the end of February, 2019). maintenance and management, by 2019. In order to expand applications to small and medium-sized companies and local governments in FY2018, a system for orderers to support order acceptors will be enhanced by providing the order acceptors with 3D construction data. • Development of an infrastructure • With an aim to perform a trial of Minister of Land, data platform that converts construction and analysis by Infrastructure, management ledger of infrastructure, 2019, a trial of data linking Transport and construction record, inspection data, between databases and trial Tourism sensor data, basic map information, creation of an analysis model ground information into shared were performed. intermediate data for data integration and data sharing will be started in FY2018 and used for asset management such as deterioration prediction and life cycle cost analysis and for advanced construction management. Solving of local • For local public transportation and • For the development of the new Minister of Land, social problems in logistics, a new mobility service mobility service model, Infrastructure, transportation and model will be built to meet the needs realization of the new mobility Transport and logistics and of users in cities and rural areas by service, mostly MaaS, was Tourism strengthen implementing the following discussed in the Round-Table competitiveness of measures: Improvement of Conference on New Mobility cities information provision and route Service in City and Rural Area search by using open data, ICT such and an interim report was as vehicle allocation and settlement published in March 2019. In with smartphone application, addition, a support system to utilization of new technology such as support demonstration automatic driving, introduction of experiments for the development watching service and shopping of a new mobility service model support, taxi for both freight and was established. passengers in depopulated areas, and policy combination with various industrial sectors such as realization of MaaS.
22
Provisional Translation
3. Acceleration of introduction of PPP/PFI method 1) Progress in achieving KPI targets
2) Progress made in implementing measures Measure Contents and completion deadline Progress and implementation status Minister in charge Strengthening of • In order to make the forestry a • A draft to partially amend the Prime Minister measures in growing industry, a necessary act laws on management of national (Minister of State concession-style draft on national forest will be forest was submitted to the for the Promotion priority projects submitted to the regular Diet in regular Diet in 2019 so that the of Overcoming 2019 for private enterprises to gain right to cut trees in a certain area Population Decline the right to use, and earn a profit of national forest on a long-term, and Vitalizing from, a certain area of the national stable basis, while maintaining Local Economy in forest which is an administrative the public function of the national Japan), Minister of property by cutting and selling a forest, could be set for a Agriculture, large amount of trees for a long motivated and capable forestry Forestry and period of time, while maintaining business owner under a condition Fisheries the public function of the national of cooperation with the forest. midstream and downstream business operators who expand timber demand. • The relevant ministries and agencies • As for the measures concerning Minister of Land, will promptly arrange the measures equal footing of the government Infrastructure, concerning the equal footing of the subsidy and the local allocation Transport and government subsidy and the local tax for the airports, coordination Tourism allocation tax, which have become was made with the relevant apparent in the public facilities ministries and agencies and local operation project at seven airports public organizations were in Hokkaido Prefecture, and notify notified of the measures. local public organization of the measures. Promotion of he • In order to promote the use and • A request for the result-linked Prime Minister spread of Pay for spread of the result-linked private private consignment contract (Minister of State Success consignment contract system, which system among the requests on for Measures for is a mechanism to realize social system and human resources in Declining problem resolution and enhance FY2019 was approved. A Birthrate), Minister administrative efficiency by necessary system will be of Internal Affairs utilizing the know-how of the developed for this purpose and private sector while suppressing the through coordination with related Communications, administrative cost, the Cabinet ministries and agencies. Minister of Office will expand the recruitment Finance, Minister of human resources from related of Health, Labor ministries and agencies and develop and Welfare, a necessary system while utilizing Minister of human resources from the ministries Economy, Trade related to the system. and Industry
23
Provisional Translation
[4] Change of “district,” “community,” and “small and medium-sized companies” 1. Reform of entire agriculture, forestry, and fisheries and realization of smart agriculture, forestry, and fisheries 1) Progress in achieving KPI targets
2) Progress made in implementing measures Measure Contents and completion deadline Progress and implementation status Minister in charge Acceleration of • In order to accelerate accumulation • Past activities of the Farmland Minister of agriculture and concentration of farmland to Intermediary Management Organization Agriculture, reforms bearers, measures will be taken were verified and evaluated by the Forestry and such as establishing a promotion Headquarters on Creation of Regional Fisheries system centered on the Farmland Vitality in Agriculture, Forestry, and Intermediary Management Fisheries in November 2018. Based on the Organization and simplifying the evaluation, a draft to partially amend the procedures at the Organization, on laws related to the promotion of the the basis of verification of past farmland intermediary management activities. business which accumulate and concentrate farmland to bearers was submitted to the regular Diet in 2019. This draft aims to simplify procedures by introducing a system where the right of borrowing and subleasing farmland by the Organization can be set in an integrated manner in the municipality’s plan and to provide information on the use situation of the farmland, etc., by members of the Committee for Agriculture and the Committee for Farmland Utilization Optimization Promotion in various opportunities of discussion.
13 Among certified farmers, individual farming management body (with rice paddy acreage of more than 15ha), whose farming income from rice paddy cultivation per one farmer is equivalent to that from other industry. 14 Organized farming management body (with rice paddy acreage of 22ha on average) whose sales income from rice paddy cultivation is largest compared to that from other types of farming 24
Provisional Translation
• "Base of agriculture data • In order to develop the agricultural data cooperation," a base of utilization cooperation base, a demonstration of agriculture data will be formally research (a project for utilization at wheat operated from April 2019. production sites, etc.) on agricultural ICT services using cooperation, sharing, and provision functions under the support from farmers in the field was carried out. In addition, various entities were encouraged to participate in the agricultural data cooperation base council. (The number of members: 195 on June 30, 2018 increased to 342 on March 31, 2019). The base will formally start in April 2019. Reform of • Forest management will be • The Forest Management Act (Act No. 35 Minister of forestry industry concentrated and integrated to in 2018) establishing the new forest Agriculture, motivated and capable business management system was enacted in the Forestry and operators. Moreover, a new forest regular Diet in 2018 and will be enforced Fisheries; management system where from April 2019. To this end, relevant municipalities manage forests that ministerial ordinances were issued and cannot be managed by the business 111 briefing sessions were held for operators will be established. municipalities. Reform of • In order to maintain, restore and • Revised Act on the Fisheries Act etc.15 Minister of fishery industry properly manage fishery resources, was enacted in the special Diet in 2018. In Agriculture, scientific and effective evaluation the revised act, the system was redesigned Forestry and methods and management methods to a resource management system on the Fisheries; that are comparable from the basis of the available catch (TAC) international perspective will be determined according to the resource employed. management target, which is set from • The fishery permission system stock assessment by the latest scientific together with the resource knowledge, with an aim to increase the management method will be catch amount. Moreover, the fishery revised to improve the productivity permission system was revised so that no of offshore and deep-sea fisheries restriction related to fishing boat size and strengthen international would be applied to fishing-boat fisheries competitiveness. where catch quota (IQ) had been • For the development of aquaculture introduced, in order to reduce production and coastal fishery, the system costs and improve safety, residency, and related to the use of sea surface, workability. In addition, the sea surface etc., will be reviewed and use system was revised for comprehensive appropriate and effective use of use of the sea surface of the unused water areas and new entry will be fishery ground by allowing collaborative promoted. fishery and new entry from the inside and outside the area, while securing fishing ground use of the existing fishery right holders who were using fishing ground appropriately and effectively.
15 Act to partially amend the Fishery Act, etc. (Act No. 95 of 2018) 25
Provisional Translation
2. Realization of smart city by cooperation between city development and use of public transportation and ICT 1) Progress in achieving KPI targets
2) Progress made in implementing measures Measure Contents and completion deadline Progress and implementation status Minister in charge Development of • L-alert advanced system or G- • It is planned to formulate and Minister of Internal safe and secure city space disaster prevention spread standard specifications to Affairs and using IoT information system for be added to the prefectural Communications strengthening the regional disaster disaster prevention information prevention capability will be system necessary for mapping of introduced to 15 prefectures and L-alert information through the 100 local public bodies by 2020 demonstration experiment in through demonstrations for FY2018. In FY2018, 43 local development of the standard public bodies introduced the G- specification draft of L-alert space disaster prevention advanced system and through information system through the enlightenment activities to spread regional IoT implementation the systems. promotion project. New town • For local public bodies aiming to • The "Regional IoT Minister of Internal development solve regional issues, regional IoT Implementation Status Survey" Affairs and through implementation planning and (FY2018) by Ministry of Internal Communications improvement of implementation projects will be Affairs and Communications activity of local supported and development of showed that 272 organizations community data using type city will be have already taken actions. promoted through cross-sectoral Introduction of regional IoT by data linking. As a result, IoT-used local public bodies will be activities of 800 local public promoted continuously by bodies in the fields related to comprehensive implementation of health promotion and education planning support, personal will be created by the end of support by dispatching regional FY2020. informatization advisors, clarification of data use rules, and support for implementation projects, etc.
26
Provisional Translation
3. Further strengthen the productivity revolution of SMEs and micro businesses 1) Progress in achieving KPI targets
2) Progress made in implementing measures Measure Contents and completion deadline Progress and implementation status Minister in charge Encourage • The government will promote the • The Act on Special Measures for Minister of investment in measure to reduce property taxes under Productivity Improvement was Economy, Trade cutting-edge the Act on Special Measures for enacted on June 6, 2018. As of and Industry equipment such Productivity Improvement established the end of February 2019, 1,606 as IT to SMEs in May this year, while taking into local governments have and micro consideration the autonomy of local implemented measures to set zero busisnesses/ governments, and allow SMEs and fixed property tax according to Empowering micro businesses actively engaging to this act. In addition, as of the end efforts to this measure to exert synergistic effect of December 2018, 17,868 plans improve with support measures such as of introducing advanced productivity in “Subsidy for Manufacturing and equipment were approved in the each industry Service of SMEs”. local governments that implemented measures to make the fixed property tax zero. The total quantity of equipment included in the plans is 47,865 units and the investment of approximately 507.6 billion yen is expected. Furthermore, 11,989 people were adopted in "Subsidy for Manufacturing and Service of SMEs " (revised budget project in FY2017).
27
Provisional Translation
• In order to strongly support the • About 62,000 cases were Minister of Internal introduction of IT necessary for supported by "IT Introduction Affairs and improving productivity, the Subsidy" (revised budget project Communications, government will strengthen the IT in FY2017). In addition, 269 Minister of support system in cooperation with certified information processing Finance, Minister management improvement of SMEs support organizations supporting of Health, Labor through improving IT literacy IT utilization were certified (as of and Welfare, including cyber security in familiar March 31, 2019) to visualize IT Minister of support organizations, utilizing the vendors and IT tools. Agriculture, “Productivity Strategy Platform for Forestry and SME Services and Other Businesses” Fisheries, Minister established in February this year and of Economy, Trade certified information processing and Industry, support organization. Minister of Land, Infrastructure, Transport and Tourism, Minister of the Environment Increase • To improve productivity through • The corporate business Minister of business smooth business succession of SMEs succession tax system was Finance, Minister metabolism with and micro businesses, the government drastically expanded from 2018. of Economy, Trade smooth business will strengthen our efforts as intensive In FY2018, there were 2,930 and Industry, succession and implementation period in the next 10 applications (counted as of April entrepreneurship years. In addition to the drastically 30, 2019). support expanded business succession tax In addition, in order to support system, the government will intensive business succession of implement seamless support before individual business owners, a and after succession, including 100% tax payment postponement strengthening M&A support. The system of grant tax and government will promote inheritance tax at the time of comprehensive support for budget and succeeding land, buildings, tax related to the succession of small machinery and equipment was and micro businesses, and cooperate introduced as a 10-year time limit with large and medium-sized measure in the tax system companies. revision in FY2019.
28
Provisional Translation
Increasing • The government will urge financial • The financial institutions were Prime Minister support for SME institutions to properly demonstrate notified in September of the last (Minister of State associations financial intermediation functions year to examine, on the basis of for Financial through the following measures in the common benchmark, a set of Services), Minister order to fully support management for indicators (KPIs) that can of Finance, business value evaluation and objectively evaluate the financial Minister of productivity improvement without intermediaries of each financial Economy, Trade excessively relying on collateral or institution such as institution’s and Industry personal guarantee usage of " Guidelines for – - In order to promote the financial Personal Guarantee Provided by advice and provision of financial Business Owners " including advice by financial institutions that business succession, while paying contribute to the value of client attention to the difference in the companies, the government will definition of the indicators among establish the drafts of the Key the institutions. Details will be Performance Indicator (KPI) by examined from viewpoints of which financial institution's securing objectivity and intermediation efforts can be comparability by using the same objectively evaluated, including the definitions as well as respecting utilization of “Guidelines for and promoting the characteristic Personal Guarantee Provided by and distinctive activities of each Business Owners” (5 December, financial institution. 2013 decided at the Study Council on State of Personal Guarantees for Loans and Other Issues), which can also be utilized for business succession. This will allow for the "visualization" of financial institutions.
29
Provisional Translation
4. Tourism, sports, culture, and art 1) Progress in achieving KPI targets
2) Progress made in implementing measures Measure Contents and completion deadline Progress and implementation status Minister in charge Tourism • Utilization of financial resources • Based on the International Minister of Finance, for the realization of the next Tourism Promotion Act16 Minister of Land, generation tourism-oriented partially amended in the regular Infrastructure, Transport country. Diet in 2018 and the “Basic and Tourism Based on the “Basic Policy etc. Policy etc. for the Use of the for the Use of the International International Tourist Tax” Tourist Tax” (adopted by the (adopted by the Ministerial Ministerial Conference on Conference on Promotion of Promotion of Tourism-oriented Tourism-oriented Country on Country on December 22, 2017), December 22, 2017 and partially the revenue of the International amended on December 21, 2018), Tourist Tax is used to expand and the International Tourist Tax was strengthen the tourism used for the development of CIQ infrastructure for realization of system, etc. in the budget for world-class tourism destination. FY2018 and will be used for particularly new and urgent measures and projects, such as advanced immigration procedure, development of world-class environment to receive foreign visitors, and expansion of new tourism contents utilizing local resources in the budget for FY2019.
16 Act on promotion of international tourism by promoting visits of foreign tourists (Act No. 91 in 1997) 30
Provisional Translation
Explore the • The relevant ministries and • According to issues and Prime Minister future of sports agencies will collaborate for individual needs in each region, (Minister in charge of industry support for stadiums and arenas various supports were conducted Overcoming Population on the basis of individual needs such as installation of Decline and Vitalizing by sharing every type of issues, consultation counters for Local Economy in installing integrated consultation promotion of the reform of Japan, Minister of State counters for national support, and stadiums and arenas in June 2018 for Regional examining methods to secure and support for the formation of Revitalization), Minister personnel responsible for advanced examples (15 cases by of Education, Culture, formation of local consensus. In the end of March 2019). Sports, Science and addition, ways to reflect the needs The “Stadium/Arena Operation Technology, Minister of of private business owners who and Management Plan Review Economy, Trade and have contents other than sports Guideline” was compiled in July Industry, and Minister and ways to verify the effects of 2018, which organized the of Land, Infrastructure, stadiums, etc. in local areas will methods and points to consider Transport and Tourism. be examined. for maximizing the business effects of the stadiums and arenas from a viewpoint of operators, managers, and content holders. Economic • Opportunities for people from • Based on "Culture Economic Prime Minister (Chief revitalization cultural fields and people from Strategy" (created by Cabinet Cabinet Secretary, utilizing culture industry to interact on a broad Secretariat and Agency for Minister in charge of and art resources range of issues and their Cultural Affairs on December 27, Tokyo Olympic Games solutions, starting from the idea 2017), "Culture Economic and Tokyo Paralympic of culture, will be provided. Strategy Action Plan" including Games, Minister in Creation of high value-added the major measures to promote charge of Overcoming markets, innovation in the this strategy was compiled in Population Decline and business using cultural art August 2018. In future, it will be Vitalizing Local resources and related discussed to provide Economy in Japan, technologies, and overseas opportunities for people from Minister of State for development of culture-related cultural fields and people from Cool Japan Strategy, services and contents including industry to interact. Minister of State for performing arts will be promoted. Intellectual Property Theaters and music halls will be Strategy, Minister of encouraged to increase their State for Regional income. In addition, their Revitalization), Minister functions will be strengthened of Internal Affairs and and appreciation environments Communications, will be improved. Through these Minister of Justice, efforts, a national brand strategy Minister of Foreign utilizing the Japanese culture will Affairs, Minister of be made and the cultural GDP Education, Culture, will be expanded. Sports, Science and Technology, Minister of Health, Labour and Welfare, Minister of Agriculture, Forestry and Fisheries, Minister of Economy, Trade and Industry, and Minister of Land, Infrastructure, Transport and Tourism, Minister of the Environment
31
Provisional Translation
ii. Development of base for economic structure reform [1] Development of common infrastructure for data-driven society 1. Promotion of investment to basic systems and technologies 1) Progress in achieving KPI targets
2) Progress made in implementing measures Measure Contents and completion deadline Progress and implementation status Minister in charge Construction of • A system of an industrial data • The industrial data utilization Minister of Internal data linkage utilization business authorization business authorization system in Affairs and utilization base system will be developed on the the Act on Special Measures for Communications, basis of the Act on Special Measures Productivity Improvement was Minister of for Productivity Improvement started in June 2018. 49 projects Economy, Trade and established in May 2018. Sharing were approved for the Promotion Industry and linking industrial data including of Innovative Use of Data for map data, material data, and security Industrial Activities. (as of March data in the coordinated areas will be 31, 2018) expanded and support for the For sharing of data and expansion implementation will be strengthened, of collaboration case examples, particularly in the major sectors of 25 projects of sharing data among Connected Industries such as multiple business owners in the "automatic traveling and mobility major sectors of Connected services," "manufacturing and Industries and 25 projects of robotics," and "bio and materials." developing AI systems by the collaboration among large companies and venture companies were supported as the supplementary budget projects in FY2017. • Based on instruction from an • Authorization by Japan Minister of Internal individual or a condition designated Federation of IT Associations Affairs and beforehand, operation of an arbitrary started in December 2018. In Communications, certification scheme of an addition, a guidance manual will Minister of information trust function to offer be created to help those who Economy, Trade and personal data to a third party after operate businesses that utilize the Industry judging appropriateness on behalf of information trust function. the said individual will be started by private party groups in FY2018 and necessary guidelines will be compiled through demonstration projects.
32
Provisional Translation
Cybersecurity • In the “next cybersecurity strategy” • The Cabinet approved the new Prime Minister formulated in the summer of 2018, “cybersecurity strategy” on July (Minister in charge basic policies and promotion systems 27, 2018. An annual plan based of Information of cybersecurity measures will be on this was formulated and Technology Policy, clarified by using a fundamental idea various measures were Minister in charge of of “cybersecurity for sustainable implemented. Cyber Security development” that promotes efforts In particular, for construction of Strategic from three viewpoints of “mission an information sharing system Headquarters, assurance”, “risk management,” and beyond the conventional National Public “participation, collaboration, and framework, a council was Safety Commission cooperation.” launched and a law was adopted Chairman), Minister • Then, based on the "next on December 5, 2018 to partially of Internal Affairs cybersecurity strategy", the amend the Cyber Security Basic and government will make a concerted Law (Act No. 90 of 2018), Communications, effort to establish an information including the application of the Minister of Foreign sharing system, train and secure confidentiality obligation of Affairs, Minister of human resources, disseminate members of the council. A Economy, Trade and information to the people, and Cabinet order to partially amend Industry, and develop a system for the 2020 Tokyo the ordinance of the Cyber Minister of Defense Olympics and Paralympic Games. Security Strategy Headquarters which determined corporations that can be commissioned to work on liaison and coordination with related parties was approved by the Cabinet on March 8, 2019. In addition, efforts were made to launch the council. Furthermore, for development and securing of human resources, the “Cyber Security Human Resource Development Policy” (reported by the Cyber Security Strategy Headquarters on June 7, 2018) was issued and reflected to the “Cyber Security Strategy.” For information transmission to people, the "Cyber security awareness and action reinforcement program" including improvement of information transmission and consultation counters was approved on January 24, 2019. Moreover, for the 2020 Tokyo Olympics and Paralympic Games, efforts to introduce a Cybersecurity Countermeasures Coordination Center responsible for information sharing and support coordination when an incident occurs were made.
33
Provisional Translation
Responding to • Necessary technical standards will be • A technical standard for 5G was Minister of Internal new technology established by the summer of 2018. established in July, 2018. In Affairs and and business Frequency allocation will be carried January 2019, the "Guideline on Communications out by March 31, 2019 to promote establishing a specific base rapid spread of 5G to rural areas. In station for the introduction of 5G" addition, development of an optical including examination criteria fiber network, etc. which supports such as starting services in all advanced wireless environments such prefectures within two years was as 5G and IoT will be examined and established. Applications a conclusion will be obtained by the submitted from companies summer of 2018. according to the guideline will be examined and frequency allocation will be conducted in April 2019. • The Ministry of Internal Affairs and Communications released "Final report of study meeting on ICT infrastructure regional development strategy " in August 2018. Based on the results of the study, "Advanced wireless environment maintenance promotion project" will start in FY2019 to develop an optical fiber network that supports advanced wireless environments such as 5G and IoT.
34
Provisional Translation
2. Development and optimal utilization of human resources suitable to AI age 2-1. Development and optimal utilization of human resources required for AI age 1) Progress in achieving KPI targets
2) Progress made in implementing measures Measure Contents and completion deadline Progress and implementation status Minister in charge Expansion of • Engineering education will be • In order to promote the review of Minister of provision of AI reformed in the following aspects: The vertical sectioning of departments Education, Culture, human resources vertical sectioning of departments and and majors in the engineering Sports, Science from majors in the engineering field AI will field, a ministerial ordinance and Technology; universities, etc. be reviewed and the standards for (Ordinance No. 22, Ministry of establishment of universities with a Education, Culture, Sports, curriculum (major and minor systems) Science and Technology in 2018) combining the engineering majors with to partially amend the standards other multiple major fields will be of establishment of universities revised and introduced in the next and the standards of fiscal year. In addition, a model core establishment of graduate schools curriculum that conducts information was promulgated and enforced on education in basic engineering June 29, 2018. In addition, in education will be established. support projects of Ministry of Education, Culture, Sports, Science and Technology to conduct demonstrative verification for the engineering education reform, four universities developed a model core curriculum of basic engineering education.
35
Provisional Translation
Strengthening of • In order to effectively carry out • Instruction methods were Minister of Internal AI education at programming education in all disseminated by presenting Affairs and primary and elementary schools from FY2020, the instruction examples through the Communications, junior high quality of teaching materials “Introduction to Programming Minister of schools development and teacher training will Education for Elementary Education, Culture, be improved through the activities of Schools” and a portal site run by Sports, Science the Consortium for Future Learning by the Consortium for Future and Technology, utilizing portal sites etc. in Learning, and teaching materials Minister of collaboration with the Boards of for teacher training were created. Economy, Trade Education, schools, and companies and Industry over the country so that teachers can become familiar with teaching materials, teaching methods, etc. • In order to develop a necessary ICT • Promotion activities to governors Minister of environment such as wireless LAN and and mayors over the country were Education, Culture, educational computers by the end of conducted in cooperation with Sports, Science FY2020, local governments will "National Governor Council for and Technology accelerate the development by ICT Education" and the notifying not only the Boards of governors and mayors were urged Education but also governors and to understand the situation mayors of the functions and efficient through the General Education procurement methods of ICT Meeting where a governor or equipment based on the maintenance mayor could make discussion policy of ICT equipment released at with the Board of Education in the end of 2017 and of the each local government. development status clarified in each city and town. Expansion of the • Recurrent education such as short-term • Short-term programs for adults in Minister of base of AI education programs for adults at universities and specialized Education, Culture, human resources universities and specialized training training colleges were Sports, Science utilizing colleges, The Open University of institutionalized to start in and Technology recurrent Japan, and online courses using FY2019. Practical programs at education at MOOCs will be widely expanded. A University of the Air are universities etc. system of recurrent education at enhanced. Furthermore, projects universities, etc. including to develop opportunities for joint establishment of recurrent centers, education between industry and securing practical educators who have academia and to provide high educational ability and high programs are conducted for quality, and establishing collaboration recurrent education and training between professional graduate schools of teachers with a career in their and industry will be developed. subject area. (Enforced on April 1, 2019.) In addition, from a viewpoint of strengthening collaboration between professional graduate schools and industry, a system to revise the School Education Law and organize and implement a curriculum in collaboration with business people of the target occupations of the schools was created.
36
Provisional Translation
• Target of the benefits for practical • Courses of professional colleges Minister of professional education and training were designated as target of the Education, Culture, will not only include the courses of benefits for practical professional Sports, Science professional colleges but also be education and training. In and Technology, expanded for trainees to acquire skills addition, target courses were Minister of Health, required in the AI era, in collaboration expanded to include the Brush up Labor and Welfare, with the “Brush up Program for Program for Professional of Minister of Professional” of universities, universities (18 courses newly Economy, Trade “Professional Post-secondary Course” designated), Professional Post- and Industry of specialized training colleges, and secondary Course of specialized “Program for Certifying Courses on training colleges (120 courses IT-Skill Training to Meet the Era of newly designated), and Program the Fourth Industrial Revolution” in for Certifying Courses on IT-Skill the AI and IT field. Training to Meet the Era of the Fourth Industrial Revolution (30 courses newly designated) after October 2018.
37
Provisional Translation
2-2. Labor market reform for utilization of optimal human resources 1) Progress in achieving KPI targets
2) Progress made in implementing measures Measure Contents and completion deadline Progress and implementation status Minister in charge Promotion of • "Revision after 3 years of • An amendment of the Act on Prime Minister diversity enforcement" for the Act on Promotion of Women’s (Minister of State for Promotion of Women’s Participation Participation and Advancement in Gender Equality), and Advancement in the Workplace17 the Workplace was submitted to Minister of Health, (Act No. 64 in 2015) will start based the regular Diet in FY2019, Labor and Welfare on the additional clauses and a which included expansion of conclusion will be obtained in business owners obligated to FY2018. In the revision, setting make action plans and numerical targets, expansion of information disclosure, information release, and strengthening information enhancement of incentives to disclosure, and creation of a companies depending on their special certification system for actions taken will be studied for business owners particularly good promotion of women to managerial at promoting women's positions, introduction of diverse and achievements. flexible working styles, balance between work and family life, and support for career formation, etc. Realization of a • Long working hours will be • Act on the Arrangement of Minister of Health, way of working corrected by restricting the upper Related Acts to Promote Work Labor and Welfare that can limit of overtime work, introducing a Style Reform (Act No. 71 in maximize rule with which employers designate 2018) will be enforced in April productivity seasons to have annual paid holidays, 2019. (However, some rules will and promoting the minimum interval be enforced after FY2020.) between working days. In addition, Moreover, a subsidy to small and small and medium sized companies medium sized companies and that need securing human resources small scale enterprises working to reform working style will be on the working style reform supported. which could improve employment management by hiring people will be introduced in April 2019.
17 Act on the facilitation of active roles by women in their working life (Act No. 64 of 2015) 38
Provisional Translation
2-3. Promotion of utilization of foreign human resources 1) Progress in achieving KPI targets
2) Progress made in implementing measures Measure Contents and completion deadline Progress and implementation status Minister in charge Promotion of • To accept more foreign • On December 28, 2018, a Minister of Justice, accepting highly entrepreneurs, "startup program notification18 that sets out the Minister of skilled foreign (provisional name)" will be launched procedures for local governments Economy, Trade and human resources in 2018 to support activities of to promote activities of foreign Industry starting business by taking measures entrepreneurs to start new on the immigration control system business was enforced. In such as granting a period of addition, for foreign residence of up to one year to prepare entrepreneurs who receive for starting new business, by support for entrepreneurship from checking the status of the activities, local public bodies in accordance and by implementing management with the notification, a and support measures such as notification was enforced on the developing a consultation system. same day allowing them to enter and stay in Japan with a status of residence for "Designated Activities" within a period not exceeding one year. • Expansion of universities targeted for • A notification to relax the criteria Minister of Justice special additions in the "Points-based of receiving special addition in System for Highly-Skilled Foreign the "Points-based System for Professionals" will be reviewed. Highly-Skilled Foreign Professionals" was enforced in March 2019. (The number of universities targeted for the special additions is expected to increase from current 13 to more than 100.)
18 Notification on projects for encouraging foreign entrepreneurs to start business (Notification No. 256 of the Ministry of Economy, Trade and Industry in 2018) 39
Provisional Translation
Accepting new • In order to expand the acceptance of • A law (Law No. 102 in 2018) to Minister of Justice foreign human foreign personnel not as the partially amend the Immigration resources immigration policy in the fields Control and Refugee Recognition where the foreign personnel is truly Act including the establishment necessary, the current system to of a new status of residence and accept specialized and technical the Act for Establishment of the foreigners will be expanded and a Ministry of Justice was enacted in new status of residence for the extraordinary session of the immediately effective foreign Diet in 2018 and promulgated on workers with certain expertise and December 14, 2018. For the skills to work in Japan will be enforcement of the law, the created. Cabinet approved a basic policy and operation policies for different fields on December 25. The relevant ministerial ordinance and notification was promulgated in March 2019 and will be enacted on April 1 of the same year.
40
Provisional Translation
3. Support for university reform, industry-university-government collaboration, and venture businesses for innovation 3-1. Development of autonomous innovation ecology system 1) Progress in achieving KPI targets
2) Progress made in implementing measures Measure Contents and completion deadline Progress and implementation status Minister in charge Creation of • In order to strengthen the • An amendment of the National intellectual management base and promote University Corporation Act 19 intensive industry efficient management, efforts will be was submitted to the regular Diet by university made to submit to the regular Diet in in 2019 to establish a system reform, etc. 2019 an amendment of the National where national universities are University Corporation Act including allowed to choose on their own the introduction a system for a single initiative “the system for a single corporation to manage multiple corporation to manage multiple national universities and the division national universities,” allow the of management and teaching universities to choose the division functions. of management and teaching functions, and oblige the universities to appoint multiple outside board members. • A system of providing incentives to • The distribution of a part of the Minister of national universities, mainly research national university management Education, Culture, universities, depending on their grants based on the actual Sports, Science acquisition status of private funds, situation centering on the and Technology for example by weighted distribution achievements such as external Prime Minister of the university management fund acquisition status was (Minister of State budgets through evaluation will be introduced from FY2019. for Science studied in FY2018 and introduced as In addition, the Project on Technology trial as early as possible. Strengthening of Innovation Policy), Minister Creation Environment in National of Education, University which gives incentives Culture, Sports, according to the external funds Science and acquisition status will be carried Technology out from FY2019.
19 Draft to partially amend the School Education Act (Act No. 22 of 2019) 41
Provisional Translation
3-2. Strengthening of support for venture businesses 1) Progress in achieving KPI targets
2) Progress made in implementing measures Measure Contents and completion deadline Progress and implementation status Minister in charge Innovation and • Efforts to promote the utilization of • The bidding opportunities of J- Prime Minister business small and medium sized companies Startup selected companies in (Minister of State for establishment and venture companies of research some public procurement cases Science Technology and development type for public was expanded. Efforts were made Policy), Minister of procurement in light of the specific on the development of the Economy, Trade and needs of national organizations will guideline for promoting the Industry, Minister of be enhanced. In addition, a guideline utilization of small and medium Land, Infrastructure, for ministries will be made in sized companies and venture Transport and FY2018 to encourage the entire companies in public procurement, Tourism government to introduce advanced and the guideline was published technologies and utilize small and on April 1, 2019. medium sized companies and venture companies. • A system that can notify startups of • “Super-accelerated examination Minister of primary examination results of their for startups” was launched on Economy, Trade and patent applications within one month July, 2018, which can be used by Industry ("super-accelerated examination") startups if they file “patent will be established by the fall of application for technology which 2018. Efforts will be made to help is already utilized or will be startups acquire a right that they can utilized shortly” even when it is utilize easily through interviews for not internationally filed. In direct communication with addition to the "super-accelerated examiners. examination", “accelerated examination through interviews for startups” was launched. Startups can have interviews with examiners before notification of primary examination result.
42
Provisional Translation
4. Intellectual property/standardization strategy 1) Major progress in KPI
2) Progress made in implementing measures Measure Contents and completion deadline Progress and implementation status Minister in charge Intellectual • From the perspective of encouraging • The Design Registration System Minister of property/standardi "Design-Driven Management" that Subcommittee etc.registration Economy, Trade zation strategy promotes social innovation with new considered the current design and Industry technologies such as IoT, AI, and big registration system and other data, and protecting designs that intellectual property right systems contribute to brand formation etc., from August 2018 onwards, including the review of the legal compiled a report in February system concerning thedesign 2019, and submitted a bill to the registration system and other regular Diet in 2019. intellectual property rights system, we will examine the way of the system contributing to "Design- Driven Management" and take the measures required. • On the basis of "the Emergency • At the "Conference on Anti- Prime Minister Measures Against Online Piracy piracy measures on the Internet", (Minister of State Sites" (Decision on April 13, 2018 of we focused on comprehensive for Special the Intellectual Property Strategic measures against piracy on the Missions Headquarters of the Ministerial Internet. In response to this, (Intellectual Meeting Concerning Measures necessary efforts are being made Property Strategy), Against Crime), in addition to in the relevant ministries, etc., Chairman of expansion of the distribution of such as effective education on National Public regular version, including those copyright, promotion of Security related to site blocking, we will legitimate version, search site Commission), consider the way of necessary countermeasures, measures to Minister of Internal legislation and measures including suppress advertisement entry on Affairs, Minister of copyright education for the people. pirated sites, filtering, and Justice, Minister of introduction of "access warning Education, Culture, method" that displays a warning Sports, Science at the time of accessing pirated and Technology, sites, as well as regulating leech Minister of sites and investigation of making Economy, Trade downloading of infringing and Industry content illegal.
43
Provisional Translation
[2] Bold regulatory and institutional reforms 1. Use of the sandbox system and conversion from vertical regulations/development of rules corresponding to the rise of platformer type business/direction of the policy for competition Progress in implementing measures Measure Contents and completion deadline Progress and implementation status Minister in charge Development of • The Cabinet Secretariat shall, in • On June 6, 2018, we set up a Prime Minister a cross- cooperation with the Cabinet Office, Social Implementation Promotion (Minister of governmental, establish a centralized window (Social Team for New Technologies etc. Economic integrated Implementation Promotion Team for (a regulatory sandbox system as a Revitalization, system for social New Technologies etc. (provisional general integrated window of the Minister of State implementation name)) to receive a wide range of government), and provide for Special of new applications for those who use a detailed consultations for Missions technologies etc. regulatory "Sandbox" system to applications from private (Economic and implement "demonstration of new companies. Fiscal Policy, technologies etc.", and engage in prior Regional consultations (confirmation of the Revitalization, innovativeness of new technologies, Regulatory confirmation/organization of Reform)), Minister applicable regulations of new of Economy, Trade technologies, and confirmation of the and Industry competent minister, etc.) in response to applications from private entities. Development of • In order to develop an environment in • In July 2018, we set up a "study Prime Minister an environment which new platform-type businesses group on the development of a (Minister of for platform are created one after another and active trading environment for digital Economic selection competition takes place, we examine platforms", consisting of Revitalization, efforts to allow the user to select the academic experts etc. with Minister of State most easy-to-use platform, and to knowledge on competition policy, for Special ensure that a fair and free competition information policy, and consumer Missions in charge environment be established, including policy, etc. and examined issues of work for the SMEs and ventures. In view of the and responses surrounding digital Fair Trade above, Ministries will make platformers. In addition to Commission, considerations, set basic principles in publishing a mid-term summary Minister of 2018, and immediately proceed with of issues compiled by the study Economy, Trade specific measures in line with such group in December of the same and Industry principles toward the development of year, we formulated the "basic fair, free and transparent environment principles of developing rules for competition, deregulation for corresponding to the rise of promoting innovation (relaxation of platform-type business". entry requirements, etc.), establishment Currently we are examining of social responsibility of digital specific measures in line with the platformers, securing of fairness to above. users and so on, including how to shift from existing vertical business regulations to a new regulatory system that focuses on services and functions, data portability that allows users to transfer from a specific platform anytime, and releasing API for open connection, etc. Relationships, including the development of a fair, free and transparent competition environment.
44
Provisional Translation
Examination of • While economic and social structures • In the “Interim consolidation of Prime Minister the competition themselves have changed significantly, the direction of economic policy” (Minister of policy in such as demand reductions due to (November 26, 2018, Future Economic response to population declines in the region and Investment Conference; Town, Revitalization, changes in intensified global competition, from People, Work Creation Minister of State economic and the viewpoint of securing supporting Conference; Economic and Fiscal for Special social structures services essential to each region, Advisory Council; Regulatory Missions in charge strengthening the business Reform Promotion Conference), of work for the management power of companies in we decided to study "the state of Fair Trade each region, etc. an environment for application of the Antimonopoly Commission free competition, and improving the Act to business integration of (Financial profit of general users, etc., the local infrastructure companies Services), Minister government as a whole will proceed (development of transparent rules of Economy, Trade with the examination of the way of that can be used to examine each and Industry competition as a whole, and will reach situation where a monopoly is a conclusion within the fiscal year of suspected on the basis of the FY2018. established new system or predictability) for the purpose of pursuing the integration, enhancement, and productivity improvement of local infrastructure companies engaged in local banking and bus operation businesses etc. in consideration of the actual situation of each local economy" etc.
45
Provisional Translation
2. Investment promotion and corporate governance 1) Major progress in KPI
2) Progress made in implementing measures Measure Contents and completion deadline Progress and implementation status Minister in charge Corporate • The Government will consider the • The Government revised the Prime Minister governance measures for each entity to fulfill each corporate governance code in (Minister of State reform function in the flow of investment June 2018, and formulated the for Special while following up the situations "Guidelines for investor-company Missions involving issues such as business dialogue". (Financial management decisions in response to In addition, based on the revision Services)), environmental changes, strategic and of the corporate governance code, Minister of Justice, planned investments, in September 2018, we revised Minister of appointment/dismissal of CEOs in the “Practice Guidelines on the Economy, Trade objective, timely and transparent Corporate Governance System and Industry manners, securing diversity of the (CGS Guidelines)”. board of directors (including gender In February 2019, the guidelines and international aspects), reduction of concerning the reconsideration of policy holdings, and the fulfillment of the company law system (related functions as an asset owner of to corporate governance etc.) company pension etc. including the obligatory establishment of outside directors in listed companies etc. were compiled, and a report was obtained at the General Assembly of the Legislative Council of the Ministry of Justice. • From the perspective of improving the • Based on the discussions of the Prime Minister value of the entire corporate group, we CGS research group (2nd term), (Minister of State will formulate a Practical Guideline on we plan to publish the "Practical for Special Group Governance System in both Guideline on Group Governance Missions “defensive” and “offensive” aspects of System" in June 2019, which will (Financial group management, and how to show the ideal state of group Services)), optimize the business portfolio, etc. governance including listed Minister of Justice, subsidiaries. Minister of Economy, Trade and Industry
46
Provisional Translation
• In order to promote M & A on own • In order to promote the use of Minister of Justice, shares, we will promote the use of special measures concerning the Minister of special measures on the tax system and tax system and the Companies Economy, Trade the Companies Act (Act No. 86 of Act established by the revision of and Industry 2005) established through the revision the Act on Strengthening of the Act on Strengthening Industrial Industrial Competitiveness, Competitiveness20, examine the plan to publicity activities such as formulate new regulations in the lectures at seminars for business Companies Act regarding M&A based people and postings in on the value or consideration for newspapers and specialized treasury shares in the Sectional media are being carried out. In Meeting set up at the Legislative February 2019, the guidelines Council, and reach a conclusion within concerning the reconsideration of 2018. the company law system (related to corporate governance etc.) including the establishment of share issuance system as a new regulation regarding M&A based on the value or consideration for treasury shares were compiled, and a report was obtained at the General Assembly of the Legislative Council of the Ministry of Justice. Improving the • With regard to information disclosure • In addition to revising the Prime Minister quality of of listed companies contributing to Cabinet Office Ordinance on the (Minister of State information constructive dialogue between disclosure of corporate contents for Special disclosure for companies and investors including etc. in January 2019, the Missions constructive business strategy and governance "Principle on the Disclosure of (Financial dialogues, and information etc., we will implement Descriptive Information" and the Services)), the quality of measures based on the conclusions of "Good Practices of the Disclosure Minister of Justice, accounting and the Financial System Council by the of Descriptive Information" were Minister of auditing end of the first half of 2019, and will published in March of the same Economy, Trade comprehensively examine the way of year. and Industry disclosure. • The Government will consider the • In February 2019, the guidelines general provision of electronic concerning the reconsideration of notification of attachments to the the company law system (related notification of convocation of the to corporate governance etc.) general meeting of shareholders at the including the establishment of an Section Meeting of the Legislative electronic provision system Council of the Ministry of Justice, and regarding materials for the we will reach a conclusion by the end general meeting of shareholders of FY2018. were compiled, and a report was obtained at the General Assembly of the Legislative Council of the Ministry of Justice.
20 Act on Strengthening Industrial Competitiveness (Act No. 98 of 2013) 47
Provisional Translation
• On the basis of the “approach for • In December 2018, we integrated disclosure of business announced "support for efforts reports etc. and securities reports” for integrated disclosure of (formulated on December 28, 2017 by business reports etc. and the Cabinet Secretariat, FSA, Ministry securities reports" (formulated by of Justice, Ministry of Economy, Trade the Cabinet Secretariat, FSA, and Industry), relevant ministries and Ministry of Justice, Ministry of agencies will, while supporting the Economy, Trade and Industry), trial efforts of companies to make and presented examples of integrated disclosures, consider description and schedule etc. in examples and related issues etc. of the case of integral disclosure of integrated disclosure, and will publish business reports etc. and the contents of the consideration securities reports. within 2018, and implement required efforts promptly thereafter. • The Government will promote the • As of the end of March 31, 2019, Prime Minister expansion of voluntary enterprises to the number of voluntary (Minister of State which International Accounting companies to which IFRS is for Special Standards (IFRS) is applied by applied is 213, or 34.7% of the Missions pursuing further efforts to facilitate total market value of all listed (Financial transition to IFRS in cooperation with companies. As regards the Services)) relevant organizations, etc. In addition, transparency of audit reports, the we will investigate further efforts to audit standard was revised in July enhance the provision of information 2018, and in January 2019, the on audits and conduct research on the report on the "round-table rotation system of the auditing firms. meeting on enhancement of information provision on accounting audit" was published . Promoting • Based on the trend of international • A commentary for environmental Minister of the medium- and disclosure requests such as that of the reporting that complements the Environment long-term Financial Stability Board (FSB) 's "Environmental Reporting investment Climate Change-Related Financial Guideline 2018" published in Information Disclosure Task Force June 2018 was issued in March, (TCFD), the revised Environmental 2019. Reporting Guidelines were published in June 2018, and a guide and commentary for complementing and supplementing the contents of the guidelines will be issued during FY 2018. In addition, we will select companies that fall under the TCFD Proposal by the end of 2018, and provide support including advice etc. Promoting • To reduce settlement risk and improve • Settlement period for shares etc. Prime Minister smooth funding market efficiency, etc., we will will be shortened (through T + 2 (Minister of State through the promote the steady implementation of conversion) in July 2019. for Special realization of T + 2 conversion of stock and Missions dynamic corporate bonds etc. during 2019. (Financial financial and Services)) capital markets
48
Provisional Translation
3. Promotion of the National Strategic Special Zones Progress in implementing measures Measure Contents and completion deadline Progress and implementation status Minister in charge Utilization of • About National Strategic Special • Based on the discussion at the Prime Minister virtual special Zones, we will adopt "regional 35th National Strategic Special (Minister of State zone type revitalization type virtual special Zone Advisory Council held on for the Promotion designation zone" type designation, and, about June 14, 2018, we will revise the of Overcoming system the specific menu, we will enable basic policy for newly Population Decline demonstration through horizontal establishing "a specific business and Vitalizing cooperation beyond existing special collaboration type designation Local Economy in zone areas. In addition, we will also system" to conduct demonstration Japan) examine the designation system of projects efficiently and near-future technology type virtual effectively through regional special zone and obtain a conclusion collaboration aimed for within 2018. nationwide development of specific regulatory reform matters. Specifically, at the 37th National Strategic Special Zone Advisory Council held on December 17, 2018, the policy was adopted for utilizing the virtual special zone system for remote instruction on medication.
49
Provisional Translation
[3] Taking in Overseas Growing Markets 1) Major progress of KPI
2) Progress made in implementing measures Measure Contents and completion deadline Progress and implementation status Minister in charge Global expansion • The Government encourages • The Center for the Fourth Industrial Minister of of Society 5.0 and establishment of leading private Revolution Japan / World Economy, Trade achieving SDGs sector projects for realizing Economic Forum (WEF) was and Industry "Society 5.0" abroad with established in July 2018 through participation of large, small and collaboration of WEF, Asia Pacific medium and SMEs, venture Initiative and the Ministry of companies and foreign companies Economy, Trade and Industry. The if necessary, and supports these center has launched public-private projects through the measures of project teams in the three areas: government agencies. healthcare, smart cities and mobility, and is working on project implementation.
50
Provisional Translation
Supporting • In addition to steadily • While trying to disseminate “the Minister of Internal overseas business implementing the measures quality infrastructure” through Affairs and expansion of incorporated in the “Infrastructure various diplomatic opportunities Communications, Japanese System Export Strategy (Revised and multilateral rule-making, etc., a Minister of Justice, companies Edition FY 2018)” (approved by facility has been newly established Minister for the Ministerial Meeting on Strategy at the Japan Bank for International Foreign Affairs, relating to Infrastructure Exports Cooperation (JBIC) to widely Minister of and Economic Cooperation on June support quality infrastructure Finance, Minister 7, 2018), the Government works on development. of Economy, Trade strengthening competitiveness In addition, the Government and Industry, through public-private approach promoted third-country Minister of Land, with the enhancement of support on cooperation, information sharing Infrastructure and soft infrastructure, etc., so as to and strengthening of cooperative Transport, Minister increase the orders received by relationships with other of the Environment Japanese companies, while paying governments and among attention to foreign policy. government agencies, and support for improvement of the legal system in developing countries. Furthermore, the Act on Promoting Entry of Japanese Businesses into Overseas Social Capital Projects (Act No. 40 of 2018) has been enforced, enabling consistent efforts from project formation to operation and maintenance after completion. The Government clarified the approval of transfer acceptance of the equity stake of the company that received public financial support, and improved the system relating Japanese technology utilization conditions of Japanese ODA loan. • [Economic Partnership • TPP 11 was signed by 11 countries Prime Minister Negotiations] In order to expand a on March 8, 2018, and entered into (Economic free and fair markets not only in force on December 30, 2018. Revitalization Asia-Pacific region, but across the Additionally, Japan-EU EPA was Minister, Minister world, the Government makes signed on July 17 of the same year, of State for Special efforts to the early entry into force and entered into force on February Missions of TPP 11 signed on March 8, 2018 1, 2019. The government will (Consumer and and furthers the discussion on continue to make efforts toward Food Safety)), expansion of its member steady implementation of the Japan Minister of Internal countries/regions. Moreover, the EU-EPA as well as the expansion Affairs and Government aims at early signing of TPP 11, while promoting RCEP Communications, and entry into force of the Japan- and other economic partnership Minister of Justice, EU EPA whose negotiations were agreements currently under Minister for concluded in December 2018. The negotiation. Foreign Affairs, Government promotes strategically Minister of and expeditiously the economic Finance, Minister partnership negotiations including of Education, RCEP and Japan-China-Republic Culture, Sports, of Korea FTA. Playing central roles Science and in building such wider new Technology, economic order, Japan, as the flag- Minister of Health, bearer of free trade, aims to take Labor and Welfare, the lead in establishing Minister of comprehensive, balanced, and high Agriculture, level global rules. Forestry and 51
Provisional Translation
Fisheries, Minister of Economy, Trade and Industry, Minister of Land, Infrastructure, Transport and Tourism
52
Provisional Translation
[Investment-related agreements] It is • Regarding the promotion of Prime Minister expected to cover 92 countries / investment agreements, the Japan- (Economic regions in total, if those that are Armenia Investment Agreement Revitalization currently under negotiation are was signed in February 2018, and Minister, Minister counted. The Government will aim to the Japan-United Arab Emirates of State for Special launch new negotiations with 6 (UAE) Investment Agreement in Missions additional countries by the end of April, the Japan-Jordan Investment (Consumer and 2018, through mutual consultations. Agreement in November, and Food Safety)), Japan-Argentina Investment Minister of Internal Agreement in December. Affairs and Furthermore, other investment Communications, agreement negotiations started in Minister of Justice, the same year with three countries, Minister for i.e. Ethiopia, Tajikistan and Foreign Affairs, Paraguay, as well as Azerbaijan in Minister of February 2019. If all these Finance, Minister investment agreements currently of Education, under negotiation enter into force, Culture, Sports, 94 countries/regions will be Science and covered. The Government will Technology, steadily advance these agreements Minister of and aims to expand new countries Health, Labor and for negotiations. Welfare, Minister of Agriculture, Forestry and Fisheries, Minister of Economy, Trade and Industry, Minister of Land, Infrastructure, Transport and Tourism [Tax Treaty] The Government • New tax treaties with Lithuania, promotes the qualitative and Estonia and Iceland were approved quantitative expansion of tax treaty during the ordinary session of the network necessary to support sound Diet in May 2018 and entered into overseas business expansion of force in August, September and Japanese companies through October of that year, respectively. concluding new tax treaties or Amendment of tax treaties with revising existing treaties with Russia and Denmark were also countries/regions where development approved during the same ordinary of investment relations with Japan are session of the Diet, and entered into expected. force in October and December of the same year, respectively. Furthermore, amendment of tax treaties with Austria and Belgium approved during the ordinary session of the Diet in May 2017 entered into force in October 2018 and January 2019, respectively. In addition, new tax treaties with Croatia, Colombia and Ecuador were signed in October and December 2018, and January 2019, respectively. Amendment of tax treaties with Spain was also signed in October 2018. The government also made steady progress in tax treaty negotiations with other 53
Provisional Translation
countries.
54
Provisional Translation
• With the “Consortium for New • In addition to hands-on support by Minister of Export Nation” at the core of the supporting agencies, JETRO set up Economy, Trade efforts, the Government expands the “Japan Mall” on the major and Industry the operation of overseas-based overseas EC websites, and through experts and provides the consistent matching EC vendors with hands-on support etc. throughout Japanese companies, etc., initiated from Japan to abroad. In that a mechanism for EC vendors to occasion, the Government supports select, buy and sell Japanese mainly the frontrunning companies products. Related projects are now for the regional future and actively implemented in Singapore and invites such companies which are Hong Kong, etc. not the member of the consortium to become members. For promoting utilization of cross- border EC which is useful in grasping the market needs, the Government strengthens support measures, such as matching with platformers, and setting up a special website by JETRO for the marketing of Japanese products on overseas EC websites.
Measures to make • The Government materializes the • The Promotion of Development of Prime Minister use of Japan’s internationally competitive and Specified Complex Tourist (Minister of State charm attractive extended-stay style Facilities Areas bill was enacted in in charge of affairs tourism by the Act on Promotion of the regular Diet of 2018 and, in concerning the Development of Specified response to the act being Promotion of Complex Tourist Facilities Areas promulgated on July 27, 2018, the Development of submitted to the session of the Enforcement Order of the Act on Specified Complex regular Diet of 2018 and Promotion of Development of Tourist Facilities implements the measures to Specified Complex Tourist Areas (IR)) eliminate completely the concerns Facilities Areas (Decree No.72 of to the IR by the world’s highest- 2019) was promulgated on March standard regulations over casino. 29, 2019. From now on, the Government Based on the act, the Government implements the preparation of continues the process of examining related Cabinet orders and the related Cabinet orders and ministerial orders and establishes ministerial orders, etc. and adequate administrative systems preparing for the establishment of necessary for the world’s highest- the Casino Management standard regulations. The Committee. Government brings out the effect of the above-mentioned policy as soon as possible and takes thorough and sufficient measures to address various concerns including addiction.
• At the site of the international • As a result of All Japan's invitation Minister of exposition in 2025, the activities to attract each country, Economy, Trade Government does trial and Japan was selected to be the host and Industry showcases of the future society and country of the 2025 World Expo on lifestyle which innovation brings November 23, 2018. On February about, and demonstrates real-world 8, 2019, a draft bill was submitted application of the "Society 5.0" to to the regular Diet for special the world. measures necessary for the The Government materializes that preparation and operation of the Osaka/Kansai hosts the exposition, world exposition held in 2025. 55
Provisional Translation
by the lobbying activities of the Government, the municipal governments, the business community, members of the Diet, etc., by the dispatch of special envoys to each country, by holding events in and outside of Japan, etc. toward the voting to decide the host city to be held in November 2018.
56
Provisional Translation
III. Implementation of KPI Review
There are 152 KPIs set in the " Action Plan ", and each of these KPIs was assessed into four categories, A, B, F, and N, depending on the state of progress made and other factors. A is for KPI that shows progress toward target achievement at a pace faster than the proportion of the transitional period to the target achievement period; B is for KPI showing a progress slower than A; F is for a KPI to indicate whether or not the measure has been put into implementation during the year and thus requiring annual confirmation of the implementation status; and N is for a KPI whose evaluation is dependent on the future acquisition of relevant data and thus cannot be evaluated at present (the evaluation will be made upon obtaining the data ). The current progresses in January 2018 of each of those 134 KPIs are 60 KPIs for A Category, 54 KPIs of B Category, 8 KPIs of F Category, and 12 KPIs of N Category, while the progress of the relevant 152 KPIs have been categorized as follows: 51 KPIs of A Category, 62 KPIs of B Category, 12 KPIs of F Category, and 27 KPIs of N Category (refer to the Provisional). Based on these progress statuses, the “Action Plan for Innovative Business Activities” (Declared on June 21st 2019, Cabinet Decision) will be revised, and measures to improve productivity in a short period through innovative business activities will be strengthened.
57
Provisional Translation
KPI progress status
This report is a summary of progress made to date in achieving the KPI objectives listed in the Action Plan , as shown below.
The "KPI" column describes KPIs listed in the Action Plan . The “Main Supervising Ministry/Agency” column refers to the name of the ministry or agency, etc. that is particularly associated with achieving the KPI objectives established for each policy group. The “Source of KPIs” column refers to the names of statistics or research, etc. on which the KPI figures were based. The “Latest Figures” column refers to the most recent KPI figures with dates (in brackets). The “KPI Progress” column has been categorized in the following manner:
A: KPI that shows progress toward target achievement at a pace faster than the proportion of the transitional period to the target achievement period; B: KPI that does not show as significant progress as A;
F: The policy itself constitutes a KPI, the implementation of which is to be confirmed for each fiscal year; (An example of KPI) The power system reform is aimed to be completed no later than 2020. N: An assessment cannot be made at this stage since data is not yet available (assessment will be made as soon as data is made available).
The “Details on the KPI Progress” column refers to the reasons behind and other details on the “KPI Progress” assessment.
Provisional Translation
I. Focus areas to be tackled in the future toward realization of "Society 5.0" and the "Flagship Project" that drives change, etc.[1], i.e. "life" and "industry" will change. Group of measures: Construction of a next-generation mobility system
Reference Main Supervising KPI Latest Figures KPI Progress Details of KPI Progress Source of KPIs No. Ministry/Agency 1 The unmanned automated driving ― F In order to start the unmanned automated driving ― Cabinet transportation service on public roads transportation service on public roads in specified Secretariat in specified areas will be launched by areas, the relevant ministries and agencies (National Strategy around 2020. proceed with efforts to improve the system in line Office of with the "System improvement Outline Information and Concerning Automated Driving" decided by the Communications IT Headquarters in April 2018. Technology) In addition, longer-term demonstration experiments with a view to social implementation have been conducted in various parts of the country starting in FY2018, and verification is performed from various angles, such as the aspects of technology, business and social acceptance. 2 The unmanned automated driving ― N As reference No. 1 will be implemented by 2020, ― Cabinet transportation service in specified thereafter, we will promote the development of Secretariat areas will be launched at 100 or more other unmanned automated driving transportation (National Strategy places across the whole country by services in other areas and acquire data. Office of around 2030.. Information and Communications Technology) 3 By 2020, automatic brakes will be The current A Automatic brake installation rate was 66.2% in Calculated by the Cabinet installed on more than 90% of new percentage of 2016, but has risen to 77.8% in 2017, making Ministry of Land, Secretariat passenger cars sold in Japan. installation on steady progress toward the goal. Infrastructure, (National Strategy newly sold Transport and Office of automobiles in Tourism Information and Japan: 77.8% Communications (2016) Technology) (2017)
1
Provisional Translation
4 By 2020, 20% of the automobiles in The current The current As regards domestic automobiles (excluding The Ministry of Land, Cabinet Japan (stock base) will have a safety percentage of percentage motorcycles etc.), the (estimated) percentage of Infrastructure, Secretariat driving support device/system, which installation on of such automobiles with advanced emergency braking Transport and (National Strategy accounts for 30% of the world's total. automobiles in automobiles systems (AEB) as a safety driving support Tourism, "Survey on Office of Japan: 14.1% in Japan: A device/system (incl. a low-speed range system) the Widespread Use Information and (2017) against the total number of automobiles in Japan of ASV Communications Japan's share of World (excl. motor cycles) is defined as a KPI. The Technologies"; Technology) such market: B percentage of such automobiles in Japan has Automobile automobiles in increased to 14.1%, already exceeding the Inspection & the global prorated KPI target of 12.3% at this point. On the Registration market: 16.2% other hand, Japan's share of such new vehicles Information (2016) in the global market fell short of its prorated KPI Association, target. "Changes in the Number of Automobiles in Japan"; HISInc. "Shipped number of ECUs for AEB (2016)" 5 By 2030, all new automobiles in Japan The current New Toward the achievement of this KPI target, The Ministry of Land, Cabinet will have a standard safety driving percentage of automobiles: follow-up measures will be taken in accordance Infrastructure, Secretariat support device/system. In addition, installation on A with mid- and short-term roadmaps, etc. The Transport and (National Strategy almost all automobiles (stock base) will new automobiles current percentage of "new" automobiles with a Tourism's "Survey on Office of have such a device/system. in Japan: 68.7% Stock base: safety driving support device/system in Japan is the Widespread Use Information and (2017) B 68.7%, already exceeding the prorated KPI target of ASV Communications The current of 59.9% at this point. On the other hand, the Technologies", Technology) percentage of current percentage of automobiles with a safety Automobile such driving support device/system in Japan (stock Inspection & automobiles in base) is 14.1%, falling short of the prorated KPI Registration Japan (stock target of 16.2% at this point. Information base): 14.1% Association's (2017) "Changes in the Number of Automobiles in Japan"
2
Provisional Translation
6 In 2020, achieving the size of the Manufacturing B The market scale of domestic robot production in “Statistics on Robots: Ministry of domestic robot production in the sectors: Approx. 2013 was approx. 500 billion yen in Actual Orders, Economy, Trade manufacturing area to 1.2 trillion yen 900 billion yen manufacturing sectors and approx. 50 billion yen Production and and Industry and in the non-manufacturing areas (2017) in non-manufacturing sectors with target Shipment” and such as services to 1.2 trillion yen. Non- achievement period of 7 years. As for the “latest “Shipment of service manufacturing figures,” production in manufacturing sectors robots” by the Japan sectors: Approx. hovered around 900 billion yen (addition of Robot Association 180 billion yen approx. 180 billion yen from 2016) in 2017 while (general (2017) production in non-manufacturing sectors was incorporated approx. 50 billion yen; however, costs concerning association) system integration are excluded. The non- • Total shipment of manufacturing sector is limited to about 180 “ICT-equipped billion yen in 2017 (compared to about 40 billion construction yen in 2016), and the Government will need to machinery” promote its measures further while continuing to (Survey by the monitor the annual market growth as it continues Ministry of to steadily implement related measures. In future, Economy, Trade the Government will need to promote its and Industry) measures further while steadily implementing the • “Trends in “Japan’s Robot Strategy” that was decided in Industrial February 2015. At the same time, efforts will be unmanned aircraft required among mid-ranking companies and industry” by the SMEs concerning robot introduction including Japan UAV measures to cut the price and implementation Association cost of small-sized, general-purpose robots by (general more than 20% and assistance to accelerate the incorporated number of personnel engaged in supporting robot association) introduction.
3
Provisional Translation
I. Focus areas to be tackled in the future toward realization of "Society 5.0" and the "Flagship Project" that drives change, etc.[1], i.e. "life" and "industry" will change. Group of measures: Construction of a next-generation health care system
Reference Main Supervising KPI Latest Figures KPI Progress Details of KPI Progress Source of KPIs No. Ministry/Agency 7 Increased healthy life expectancy ― N This KPI is newly set in the “Future Health Labour Sciences Ministry of Health, over average life expectancy growth Investment Strategy 2018” (December 15, Research Grant, "Study Labour and 2018, Cabinet decision) on the goals set in on factor analysis on Welfare Health Japan 21 (secondary). Healthy life healthy life expectancy expectancy is calculated on the basis of a and regional disparity, survey conducted every three years, and and effect verification of since the "latest figure" is for 2016, we will health promotion evaluate the progress of this KPI when the measures"1 figure for 2019 is obtained. Meanwhile, In the three years from 2013 to 2016, the average life span of men is +0.77 years, with the healthy life expectancy being +0.95 years, while the average life expectancy of women is +0.53 years, with the healthy life expectancy being +0.58; the increase in average life expectancy is outweighed by the increase in healthy life expectancy. 8 Extend the nation’s healthy life Males: 72.14 A In the 6 years from 2010 to 2016, healthy life Health Labour Sciences Ministry of Health, expectancy by more than one year Females: 74.79 expectancy increased by +1.72 years and Research Grant, "Study Labour and by 2020 and by more than 2 year by (2016) +1.17 years for males and females, on factor analysis on Welfare 2025 [70.42 for males and 73.62 for respectively, and the objective of "an healthy life expectancy females (2010)] increase of 1 year in age by 2020" has been and regional disparity, achieved. As regards the objective of "an and effect verification of increase of 2 years in age by 2025", a steady health promotion progress is also shown towards target measures" achievement. [Comparison] Average annual increase at an even pace (+2 years in age/15 years) x Elapsed years (6 years) = 0.8 years in age)
1 Calculated as a Health and Labour Sciences Research based on the results of Comprehensive Survey of Living Conditions (large-scale survey conducted every three years)
4
Provisional Translation
9 Full-scale operation of nation-wide ― F In July 2018, a process schedule was ― Ministry of Health, health information network from formulated for the construction of a nation- Labour and 2020 wide network and services that will serve as Welfare an information collaboration basis for medical and other fields. In addition, from July 2018 to March 2019, we conducted a demonstration project of health record sharing service. 10 Increase the adoption rate of 85.4% A The adoption rate of electronic medical Survey of Medical Ministry of Health, electronic medical charts by general (as of October charts by general hospitals with 400 beds or Institutions Labour and hospitals with 400 beds or more to 2017) more was 85.4% as of October 2017, which (2017) Welfare 90% by FY2020. is 28.1 percentage points higher than in October 2011 when it was 57.3%. ([Comparison] Average annual rate of increase at a uniform pace (+32.7 percentage points / 9 years) x Elapsed years (6 years) = 21.8 percentage points), showing a steady progress toward target achievement. 11 Decrease the ratio of population with 14.2%2 B To quote recent figures, the rate of decrease “Implementation status of Ministry of Health, metabolic syndrome (those targeted FY2017 in the number of citizens with metabolic specified health Labour and for specific health guidance) by 25% (compared with syndrome and those with a high likelihood of checkups and specified Welfare from FY2008 levels by 2020. FY2008) suffering from metabolic syndrome (refers to health guidance” by the the rate of decrease in those targeted for Ministry of Health, specified health guidance) in FY2017 was Labour and Welfare 14.2%, which state of progress is slightly lower than the even pace case. ([Comparison] Average annual rate of increase at a uniform pace (25 percentage points / 12 years) x Elapsed years (9 years) = 18.8 percentage points) Further promotion of measures will be required.
2 Rate of decrease in the number of citizens with metabolic syndrome and those with a high likelihood of suffering from metabolic syndrome (Rate of decrease in those targeted for specified health guidance)
5
Provisional Translation
12 Increase the rate of citizens 71.0%3 B The rate of citizens undergoing medical Comprehensive Survey Ministry of Health, undergoing health checkups (age (2016) checkup (age: 40-74) was 71.0% in 2016, up of Living conditions by Labour and 40-74) to 80% by 2020 (including 3.3 percentage points from 67.7% in 2010 the Ministry of Health, Welfare specified health checkups). ([Comparison] Average annual rate of Labour and Welfare increase at an even pace (+12.3 percentage (Survey on the rate of points/10 years) x Elapsed years (6 years) = citizens undergoing +7.4 percentage points). Steady progress health checkup was has not been made in achieving the goal of conducted only in the KPI. As a factor, "difficulties for consultation" year in which a large- etc. is considered, and further promotion of scale survey is measures is necessary, such as promoting conducted
3 Situation of citizens undergoing medical checkups (health examination and health checkup) and health screening
6
Provisional Translation
14 Number of nursing-care robot 13,361 A About the introduction of robot care machine The Japan Robot Ministry of devices to be introduced in priority (2016) in key areas (mobility assistance, movement Association (general Economy, Trade fields: 8,000 in 2030 support, excretion support, watching and incorporated association) and Industry communication, bathing support and care “Survey on trends of service support) revised in 2017, according robot industry and to a statistical survey on service robots markets, 2016 version” conducted by the Japan Robot Association (general incorporated association), domestic shipments of robot care devices in key areas were 13,361 units in 2016, achieving a KPI of 8,000 units by 2030. 15 Conduct 20 clinical trials and clinical 13 cases A The clinical trial and clinical research cases - Ministry of Health, researches using the registered adopted in the past totaled 13, with 6 cases Labour and disease data by 2020. in FY2016, 5 cases in FY2017, and 2 cases Welfare in 2018, indicating a steady progress toward KPI achievement. 4 16 Formulate 5 guidelines, etc. on 3 cases A Regarding the guideline on clinical trial and Footnote reference Ministry of Health, clinical trial and clinical research clinical research using the registered disease Labour and using the registered disease data by data, the Government issued a notification on Welfare 2020. the basic stance on the use of medical data database including registered disease data for the monitoring of the safety of pharmaceutical products after manufacture and sales, and another on the points to note about reliability ensurement when conducting post-marketing surveillance of medicines and medical devices using medical data database in 2018. The remaining two cases are also under consideration steadily at present, with the aim of issuance by 2020 as originally planned.
4 "Basic idea about the use of medical data database in drug safety monitoring after marketing" (Notice of June 9, 2017 薬生薬審発 0609 No.8, and 薬生安発 0609 No.4 by Pharmaceutical Product Review and Management Section Manager and Safety Measures Section Manager) "About the points to note about reliability ensurement in post-marketing database survey of medicines" (Notice of February 21, 2018 薬生薬審発 022 No.1 by Medicine Review Management Section Manager) "About the points to note about reliability ensurement in post-marketing database survey of medical equipment" (notice of December 19, 2018, 薬生機審発 1219 No.4 by Medical Equipment Examination and Management Section Manager)
7
Provisional Translation
17 Eliminate any time lag in the Pharmaceuticals: B Regarding pharmaceutical product review Data tabulated by the Ministry of Health, screening of pharmaceuticals and 0.2 years, medical lag, the 2017 figure was 0.2 years due to a Ministry of Health, Labour and medical devices by 2020. devices: 0 year significant reduction in the US review period. Labour and Welfare and Welfare (FY2017) In addition, the numerical value for FY 2017 PMDA, and data was 0 year for the review lag for medical released in the U.S. devices. Looking at the review period for pharmaceuticals and medical devices in PMDA, the new pharmaceuticals (FY2008: 22.0 months (median)→ [FY2017] 11.8 months (80th percentile value); New medical devices: [FY2008] 14.4 months (median) → [FY2017] 11.9 months (70th percentile value)), for all of which shortening of the period is pursued. In the future, with regard to pioneering pharmaceuticals and medical devices with breakthrough and extremely high efficacy for serious diseases, we will continue to accelerate examinations, such as setting the goal of the overall examination period to six months, and focus our efforts on improving the quality of work. 18 Establish the following number of 24 A With 24 Japanese medical treatment Hearing surveys from Cabinet Japanese medical treatment bases (March 2019) locations established in other countries as of businesses, etc. Secretariat in other countries by 2020: the end of March 2019, the process has (Headquarters for About 20 achieved the KPI goal of "establishing 20 Healthcare Policy) locations by 2020."
8
Provisional Translation
19 Expand the global market for Export value of N The size of the global market to be captured Pharmaceutical and Cabinet Japan’s medical technologies and medical devices: by Japanese medical technologies and medical equipment Secretariat services to 5 trillion yen by 2030. Approx. 584.0 services is the total of:(i) the size of the export value: Outline of billion yen; Export global market for medical devices; (ii) the Annual Dynamics (Headquarters for value of size of the global market for pharmaceuticals; Statistics Report on Healthcare Policy) pharmaceuticals: (iii) the size of the market acquired by Pharmaceutical Industry Approx. 175.7 Japanese treatment locations and other Production by the billion yen facilities outside Japan, and (iv) the size of Ministry of Health, Labor (2016) the market for medical services received by and Welfare in 2016 patients visiting Japan. This includes Export value of consultation fees paid at medical treatment Overseas sales of medical locations outside Japan and medical pharmaceuticals: Japan devices: expenses paid by patients visiting Japan. Pharmaceutical Industry Approx. 1,762.4 Meanwhile, items (i) and (ii), in addition to the Association DATABOOK billion yen; export value of medical devices and 2018 Export value of pharmaceuticals, can also be used to pharmaceuticals examine the sales of medical devices and Overseas sales of : Approx. pharmaceuticals abroad (it can be partially medical devices: 3,262.1 billion overlapped with export value)(Overseas according to the survey yen sales of medical devices in 2016 were of the Japan Federation (2016) 1,762.4 billion yen (23 companies), and of Medical Devices overseas sales of pharmaceuticals in 2016 Association (general were 3,262.1 billion yen (26 companies). incorporated association) As for (iii) , it is difficult to make an evaluation at this stage because the results of activities can only be obtained after medical treatment locations, etc. start full-scale operations. At present, the Government is considering the methods to identify data on local market sizes. Evaluation at this stage is difficult for (iv) as well, since the Government is currently reviewing the methods to identify the future market scale in cooperation with the Japan International Hospital (JIH) and other parties.
9
Provisional Translation
I. Focus areas to be tackled in the future toward realization of "Society 5.0" and the "Flagship Project" that drives change, etc.[1], i.e. "life" and "industry" will change. Group of measures: next-generation mobility system
Reference Main Supervising KPI Latest Figures KPI Progress Details of KPI Progress Source of KPIs No. Ministry/Agency 20 More than 2% annual improvement About 1.9% B The KPI has not been achieved, with labor “National Accounts Ministry of in the labor productivity of the (Average growth productivity in the manufacturing industry growing of Japan” by the Economy, Trade manufacturing industry rate between 2015 at the rate of approx. 1.9% in 3 years between Cabinet Office, and Industry and 2017) 2015 and 2017. In order to achieve 2.0%, we will “Monthly Labour improve labor productivity in the manufacturing Survey” by the industry through efficiency improvement utilizing Ministry of Health, data from manufacturing sites and automation Labour and through the introduction of robots. For example, in Welfare and “Labor order to make the best use of valuable data that Force Survey” by exists in the manufacturing field, the Government the Ministry of will promote initiatives to create a system to Internal Affairs and distribute data of factories across companies, Communications strengthen development of robot system integrators, conduct necessary R&D and standardization, and accelerate robot introduction to small and medium sized companies. 21 By 2020, achieving 80% of Percentage of B While the deadline for target achievement is 2020 Surveyed by the Ministry of companies to collect data at their companies with a target achievement period of 4 years, 2 Ministry of Economy, Trade factories, and 40% of them to link collecting data: years have passed at the point of the “latest figure.” Economy, Trade and Industry their collected data to solving 58% (F2018) The percentage of companies that collect data at and Industry specific management issues. factories and the percentage of companies that link Percentage of B the collected data to the solution of specific companies linking management issues are 58% and 26%, their collected data respectively, both of which are below 73.5% and to solving specific 30%, required as of 2018 to achieve KPI. management Toward achieving the goal, in order to maximize issues: 26% the use of valuable data that exists in the (F2018) manufacturing field, the Government began to create a system to distribute data from factories across companies in cooperation with production machinery manufacturers. The Government will steadily advance necessary measures in the future.
10
Provisional Translation
6 In 2020, achieving the size of the Manufacturing B The market scale of domestic robot production in “Statistics on Ministry of (as shown domestic robot production in the sectors: Approx. 2013 was approx. 500 billion yen in manufacturing Robots: Actual Economy, Trade in previous manufacturing area to 1.2 trillion yen 900 billion yen sectors and approx. 50 billion yen in non- Orders, Production and Industry section) and in the non-manufacturing areas (2017) manufacturing sectors with target achievement and Shipment” and such as services to 1.2 trillion yen. Non- period of 7 years. As for the “latest figures,” “Shipment of manufacturing production in manufacturing sectors hovered service robots” by sectors: Approx. around 900 billion yen (addition of approx. 180 the Japan Robot 180 billion yen billion yen from 2016) in 2017 while production in Association (2017) non-manufacturing sectors was approx. 50 billion (general yen; however, costs concerning system integration incorporated are excluded. The non-manufacturing sector is association) limited to about 180 billion yen in 2017 (compared to about 40 billion yen in 2016), and the Total shipment of Government will need to promote its measures “ICT-equipped further while continuing to monitor the annual construction market growth as it continues to steadily implement machinery” related measures. In future, the Government will (Survey by the need to promote its measures further while steadily Ministry of implementing the “Japan’s Robot Strategy” that Economy, Trade was decided in February 2015. At the same time, and Industry) efforts will be required among mid-ranking companies and SMEs concerning robot “Trends in introduction including measures to cut the price Industrial and implementation cost of small-sized, general- unmanned aircraft purpose robots by more than 20% and assistance industry” by the to accelerate the number of personnel engaged in Japan UAV supporting robot introduction. Association (general incorporated association)
11
Provisional Translation
I. Focus areas to be tackled in the future toward realization of "Society 5.0" and the "Flagship Project" that drives change, etc.[2], i.e. "nourishment" for economic activities will change. Group of measures: Energy, environment
Reference Main Supervising KPI Latest Figures KPI Progress Details of KPI Progress Source of KPIs No. Ministry/Agency 22 Increase the number of residential Number of units in B The number of units in use increased by Survey by the Ministry of fuel cells in use (Ene-Farm) to 1.4 use: 271,540 [Supplementary approx. 200,000 from the end of FY2013 to Ministry of Economy, Economy, Trade million units by 2020 and 5.3 (End of December, indicator] 271,000 as of the end of December 2018. Trade and Industry and Industry million units in 2030 2018) A While the deadline for target achievement is [Supplementary indicator] [Supplementary FY2020 with the target achievement period of indicator] 7 years, 5 years and 9 months have elapsed Aim to realize by 2020 the price as of the end of December 2018. The figure is that enables users to recover their Number of years for lower than 1,210,000 units, which would be investment in 7 to 8 years recovering required at this point for KPI achievement. investment: 10 years (End of December, The sales price, which exceeded 3 million yen 2018) when commercial sales began in 2009, dropped steadily. The average sales price in FY2018 (as of the end of December) for polymer electrolyte fuel cells (PEFC) was 940,000 yen (down 8% from the previous fiscal year) and that of solid oxide fuel cells (SOFC) was 1.19 million yen (down 7% from the previous fiscal year), thanks, in particular, to the price deduction scheme introduced for subsidies in FY2016. As a result, the payback period became 10 years (down 10% from the previous fiscal year). While the deadline for target achievement is FY2020 with the target achievement period of 6 years, 4 years and 9 months have elapsed as of the end of December 2018. The figure is shorter than 10.3 years, the payback period that would be required at this point for KPI achievement.
12
Provisional Translation
23 Develop hydrogen stations at 103 stations have A In addition to the 103 stations in operation, 10 Survey by the Ministry of about 160 locations by FY2020 been opened. hydrogen stations are in developing process. Ministry of Economy, Economy, Trade and about 320 locations by (end of March 2019) While the deadline for target achievement is Trade and Industry and Industry FY2025. FY2020 with the target achievement period of 5 years, 3 years have elapsed as of the end of 2018. We are making good progress towards achieving the KPI. Additionally, a new company involving 11 companies, i.e. Japan H2 Mobility, LLC (JHyM) was established in February 2018 to expand the development of hydrogen stations. The Government has been promoting technological development and regulatory reform with the private sector towards reduced development/operation cost. 24 Implement the legal separation of ― F Some operators separated electricity Webpage of Tokyo Ministry of the electric power generation and transmission and distribution businesses in Electric Power Economy, Trade 5 transmission sectors, which will be April 2016. Holdings and Industry the final phase of the electricity system reform, on April 1, 2020
5 http://www.tepco.co.jp/toudenhou/hd/1271995_9039.html
13
Provisional Translation
25 Establish the technology for next- ― F The Government aims to establish the ― Ministry of generation thermal power technology for next-generation thermal power Economy, Trade generation step-by-step approach generation at an early date based on the and Industry by around FY 2025 based on the “Technology Road Map for Next-Generation Technology Road Map for Next- Thermal Power Generation,” which was Generation Thermal Power formulated by a public-private council in June Generation. 2016 to realize high-efficiency thermal power generation and CO2 reduction. Regarding Advanced-Ultra Super Critical [Supplementary indicator] [Supplementary thermal power generation (A-USC), the initial • Aiming for commercialization of indicator] technological development targets were A-USC in the 2020's (generation achieved as of the end of FY2016, which led to efficiency: about 39% at present A-USC F positive technological prospects for commercial → about 46% after plants.
improvement) • Aiming to commercialize IGCC IGCC F Regarding Integrated Coal Gasification
in the 2020's (generation Combined Cycle power generation (IGCC), the
efficiency: about 39% at present design of commercial plants began in FY2014.
→ about 46% after
improvement) IGFC F • Regarding IGFC, first establish Regarding Integrated Coal Gasification Fuel Cell Combined Cycle power generation the technology for oxygen-blown (IGFC), long -term durability test operation of IGCC and CO2 capture technology (physicalabsorption ) oxygen-blown IGCC and coal variety compatibility verification were completed by by FY2020, then establish the October 2018. In addition, installation work of IGFC technologies by FY2025 and aim to be ready for its CO2 capture unit (physical absorption) was started from FY2018. commercialization by the 2030s
(generation efficiency: about → 39% at present about 55% after improvement) • Aim to be ready for LNG-fired As for LNG thermal power generation, the commercialization of 1,700- power development of sophisticated element degree class gas turbines by generation technology began in FY2016 to improve the around FY2020s for LNG-fired F reliability of 1,700-degree class gas turbines. power generation (generation efficiency: about 53% at present → about 57% after improvement)
14
Provisional Translation
26 Realize full-scale － F As a result of technological development for Ministry of commercialization of next- achieving the KPI, a power semiconductor Economy, Trade generation power electronics using module of high withstand voltage using SiC, and Industry new materials by 2020 which is a new material, was mounted on the confirmation test vehicle of the next Tokaido Shinkansen N700S. Currently, we are developing technology to apply power electronics devices using SiC power semiconductor modules to automobiles and the like. Technological development and demonstration have also been carried out for GaN, and in FY2018, we carried out technological development and demonstration of an energy- saving microwave oven that can selectively irradiate the target with microwaves using GaN semiconductor devices. 27 Expand the share of cutting-edge 391.2 billion yen A While this KPI target was set to be achieved by Survey by private Ministry of storage battery market held by (34.2% of the global 2020, meaning that it must be achieved within companies Economy, Trade Japanese companies to 500 billion market) the next seven years, three years have passed and Industry yen per year (about 50% of the (2016 figure) as of 2016. It exceeds the market acquisition global market) by 2020 scale of 351.4 billion yen currently required to achieve KPIs, and confirms that KPIs are * The targets are vehicle-mounted progressing to achieve their targets. The batteries and batteries for Government will continue to provide support by electrical energy storage strengthening domestic companies’ competitiveness through technological development of cutting-edge storage batteries as well as from the perspective of energy policy. 28 Cut the cost of energy storage for ― N The Meeting of External Experts in FY2016 Surveyed by the Ministry of power systems by half or lower confirmed that the KIP is progressing smoothly Ministry of Economy, Economy, Trade (23,000 yen/kWh or lower) by overall. Development is under way to cut the Trade and Industry and Industry 2020. cost of installing energy storage for power systems to 23,000 yen/kWh or lower by 2020.
15
Provisional Translation
29 Introduce Net Zero Energy Houses [House] N To achieve the KPI, the Government plans to For energy-saving Ministry of (ZEH) and Net Zero Energy Energy-saving [Supplementary start by realizing Net Zero Energy as a standard application Economy, Trade Buildings (ZEB) in newly standard indicator] standard in newly constructed residences and rate in residential and Industry constructed average residences applicability ratio: Energy-saving in newly constructed public buildings by 2020. buildings, estimates and buildings in 2030 59% standard The energy-saving standard applicability ratio based on the survey [Supplementary indicator] (Figures for FY2016: applicability for residences was 59% in FY2016. While the of distribution of Estimate) ZEH ratio: ratio: B target achievement period is 8 years, 3 years houses according to • Increase the energy-saving 15% (Figures for ZEH ratio: B have elapsed at the point of the “latest figure.” insulation level standard applicability ratio to FY2017: Estimate) The figure was lower than 70%, the value that (collected by 100% among homes newly would be required as of FY2016 for KPI questionnaires to constructed in 2020 and [Non-residential achievement. In order to improve the energy operators), and for increase the number of Net Zero buildings] saving performance of houses and buildings, a energy-saving Energy Houses (ZEH) so that Energy-saving draft bill was submitted to the ordinary session standard application most of the custom-built homes standard of the Diet "to amend a part of the Act on rate in non- constructed by housing applicability ratio: [Supplementary Improvement of Energy Consumption residential buildings, manufacturers, etc. are ZEH. 98% indicator] Performance of Buildings" in 2019, which was estimates based on • Increase the energy-saving (Figures for FY2016: Energy-saving intended to add to the target of the Top Runner the survey of standard applicability ratio to Partially Estimate) standard System major housing enterprises that supply applicable areas in 100% among buildings newly Number of ZEB applicability custom-built detached houses and rental Type 1 specified constructed in 2020 and build buildings: ratio: A apartments, etc. buildings (2,000m2 or new public buildings as Net Zero Unaccomplished Number of ZEB As for ZEH introduction in residences, there is larger) Energy Buildings (ZEB). buildings: F a steady increase in their number, a move led (Survey by the by housing manufacturers (ZEH builders/ Housing Bureau, planners) that have declared the introduction of Ministry of Land, ZEH plans into most of the houses they supply Infrastructure, by FY2020. ZEH builders constructed a total of Transport and approx. 42,000 residences in FY2017, which is Tourism) about 15% of all new housing starts for custom-built residences (approx. 280,000 houses in FY2017). While the target achievement period is 8 years, 4 years have elapsed at the point of the “latest figure.” Although the figure is lower than 25%, a value that would be required as of 2017 for KPI achievement, the pace of ZEH dissemination is expected to pick up in the future with the Government promoting measures for the autonomous dissemination of ZEH. The energy-saving standard applicability ratio for non-residential buildings was 98% in FY2016. While the target achievement period is 8 years, 3 years have elapsed at the point of the “latest figure.” The figure exceeded 96%, which would be required as of FY2016 for KPI achievement. In order to improve the energy
16
Provisional Translation
saving performance of houses and buildings, a draft bill was submitted to the ordinary session of the Diet "to amend a part of the Act on Improvement of Energy Consumption Performance of Buildings" in 2019, which was intended to expand the range of buildings subject to the obligation to meet energy saving standards to medium-sized buildings, etc. The demonstration of element technologies has been under way regarding the introduction of ZEB in non-residential buildings. A guideline to popularize ZEB will be formulated based on demonstration results. By continuing these measures, the Government aims to have one or more buildings constructed as ZEB for each purpose in newly constructed public buildings including state-owned buildings by 2020. 30 Double the number of energy- 460,000 cases A Steady progress has been observed for this “Building Extension Ministry of Land, efficient renovation cases for (2017) KPI, with an addition of 210,000 cases and Renovation Infrastructure, existing homes by 2020 ([Comparison] Average annual rate of increase Survey” (twice every Transport and at a uniform pace (+320,000 cases/9 years) x year) (First and Tourism years elapsed (6 years) = +210,000 cases) in 6 second half) by the years from 2012 to 2017. Ministry of Land, Infrastructure, Transport and Tourism. 31 Increase the usage of LED and 96.1% A The introduction rate of LED and other high- Statistical data by Ministry of other high-efficiency lights to 100% (FY2017) efficiency lights was 96.1% in FY2017. While the Japan Lighting Economy, Trade in flow by 2020. the target achievement period is 6 years, 3 Manufacturers and Industry years have elapsed at the point of the “latest Association (general figure.” The figure exceeded 88%, which would incorporated be required as of FY2017 for KPI achievement. association) Also, the Japan Lighting Manufacturers Association, an industry association (general incorporated association), has declared its vision of seeking to increase the usage of high- efficiency lights to 100% in flow by 2020. Moreover, the Government will further promote the dissemination of high-efficiency lights based on the Top-Runner Program under the Act on the Rational Use of Energy. Based on these efforts, the achievement of the KPI by the target fiscal year is deemed possible.
17
Provisional Translation
32 Increase the ratio of next- 36.7%(2017 A Following FY 2016, sales of next-generation Survey by private Ministry of generation automobiles to 50-70% end of the vehicles increased in FY2017 (up 5.3% from organizations Economy, Trade of total new passenger car sales FY223,000 the previous year), and the ratio of next- including the Japan and Industry by 2030. generation vehicles to new vehicle sales was Automobile 36.7%. Manufacturers [Supplementary indicator] [Supplementary While the deadline for target achievement is Association (general • Increase the number of electric (end of FY2017) indicator] 2020 with the target achievement period of 5 incorporated vehicles (EV) and plug-in hybrid 2460 B years, 2 years have elapsed at the point of the association) vehicles (PHV) in use to up to 1 (end of FY2017) “latest figure.” Assuming that sales volume will million by 2020 increase linearly in each fiscal year to achieve • Increase the number of fuel cell B KPIs, if 400,000 (EV, PHV) and 16,000 (FCV) vehicles (FCV) in use to about vehicles are required as of the end of 2017, 40,000 by 2020 and 800,000 by actual result fell below by 177,000 units (EV 2030 and PHV) and 13,540 units (FCV), respectively. The Government will continue to support the partial subsidy schemes for car purchases and for developing charging infrastructure and hydrogen stations to accelerate the spread of next-generation vehicles. 33 Increase the base metal self- 50% (2016) B The self-sufficiency ratio of base metal Survey by JOGMEC Ministry of sufficiency ratio to more than 80% (copper, lead, zinc, tin) was 50% in a 2016 Economy, Trade survey. The Government will encourage and Industry autonomous development by Japanese companies toward KPI achievement through: (i)Resource diplomacy by the Japanese government and governmental institutions (JOGMEC, JICA, etc.); and (ii) Support for securing the interests of Japanese companies (support for exploration and risk money supply by JOGMEC, etc.). 34 To improve the Japan’s 26.6% F In order to increase the voluntary development Surveyed by the Ministry of independent development ratio of (FY2017 actual ratio to 40% or more in 2030, the Government Ministry of Economy, Economy, Trade oil and natural gas (including result) will continue to provide support through risk Trade and Industry and Industry domestic production) to over 40% money supply through JOGMEC, and by 2030. multilateral development of resource diplomacy.
18
Provisional Translation
35 Create an environment to support ― F The expansion of FC will be started in FY2020. - Ministry of the reinforcement of cross-regional The expansion of the Hokkaido-Honshu Economy, Trade interconnection based on the interconnection facility has been started in and Industry reinforcement of frequency March 2019. The Government will continue to converters (FC) (from 1.2 million improve the environment to realize KPI. kW to 2.1 million kW) by FY2020 and the Hokkaido-Honshu HVDC Link (from 600,000 kW to 900,000 kW) towards their operation start by March 2019 36 Electric utilities will work towards ― F High-voltage sector (factories, etc.): ― Ministry of the introduction of smart meters in Introduction of smart meters was completed by Economy, Trade all households and business FY2016 Low-voltage sector (homes, etc.): and Industry offices in the early 2020s based on Introduction scheduled to be completed by the their respective smart meter end of FY2024 introduction plans
19
Provisional Translation
37 Based on the Plan for the ― F Regarding the sand-layer type of methane ― Ministry of Development of Marine Energy hydrate, the government conducted the second Economy, Trade and Mineral Resources, the offshore production test in FY2017, and has and Industry Government develop technologies overcome a technical problem caused by the of the sand-layer type of methane first offshore production test conducted in 2013 hydrate that ensure start of a by realizing a total of 36 days of gas production commercialization project led by by evacuation method. In addition, in FY2018, private sectors in around FY2023- the Government conducted comprehensive 2027, taking the international verification based on the results of research so situation into account. As for far, and developed technologies for the seafloor polymetallic sulfides,, the realization of commercialization. For seafloor Government will also promote polymetallic sulfides, the Government technological development and successfully carried out the world’s first pilot ascertain the amount of resources test of continuously excavating and ore lifting to enable the commencement of for seafloor polymetallic sulfides under the sea projects aimed at area in 2017,. In addition, the Government commercialization with the conducted comprehensive evaluation including participation of private companies study for economic viability in 2018. According in the latter half of the decade to the study result, it was evaluated that starting in 2018 and beyond. [Supplementary economic viability can be achieved in case of a [Supplementary indicator] indicator] certain hike in metal prices from a long-term • The Government will prepare Methane perspective while ensuring economically more technologies for hydrate: valuable deposits qualitatively and commercialization of methane F quantitatively, establishing efficient production hydrate by FY2018. technology as well as solving various issues [Supplementary such as development of future regulations, • As for seafloor polymetallic indicator] reconcile conflict with area used by other sulfides , the Government will Sea-floor industries and installation of domestic ore conduct pilot test of continuously hydrothermal dressing plant (including tailings dam). excavating and ore lifting for deposits: F seafloor polymetallic sulfides under the sea area in FY2017 to establish the elemental excavating and ore lifting techniques. The Government will use the results to conduct an economic viability in FY2018.
20
Provisional Translation
38 Rebuild a group of top-class － N A FY2014 survey assessed that the “Overall evaluation Ministry of petrochemical complexes that are (The results are international competitiveness of Japanese on international Economy, Trade internationally competitive in Asia undisclosed since complexes still lags behind that of India, competitiveness of and Industry in the next 10 years (up to 2023) the data obtained is Singapore, South Korea, China, Taiwan and petrochemical for individual other countries. The objective is to increase the complexes” by the complexes) ratio of complexes equipped with residual oil Research treatment devices from approx. 45% as of Association of [Supplementary [Supplementary March 31, 2014 (reference point) to approx. Refinery Integration [Supplementary indicator] Ratio of indicator] indicator] 50% in three years’ time by the end of FY2016 for Group-Operation complexes equipped with residual Ratio of complexes A (target achievement deadline). The standard [Supplementary oil treatment devices in Japan by equipped with shown in the supplementary indicator was indicator] the end of FY2016: Approx. 50% residual oil treatment achieved with the value reaching 50.5% as of Survey by the devices in Japan: March 31, 2017 at the point of the “latest Ministry of Economy, About 50.5% figures.” As a result, the "equipment ratio" of Trade and Industry heavy oil cracking equipment of each company has reached a high level worldwide. 39 Commercialize offshore floating ― F Commercial operation of offshore floating wind ― Ministry of wind power generation facilities by power generation facilities started in FY2016 Economy, Trade around 2018 for the first time in the off the shore of Nagasaki. Empirical research and Industry world on floating offshore wind power off Fukushima Prefecture will continue in FY2019. 40 Capture 70% of the global market 70% A The share of Japanese companies was 70% in IRENA: Volume Ministry of in the volume of geothermal power 2017 figures. Continuous efforts will be made installed in the entire Economy, Trade generation turbines introduced by in future to maintain and expand market share. world and Industry 2020 Thermal and Nuclear Power Engineering Society (general incorporated association): Volume installed by Japanese companies 41 Expand the scale of businesses About 178.2 billion A A total of 166 projects have been implemented Survey by the Ministry of the engaged in the overseas yen in a cumulative as projects designed to prompt the introduction Ministry of the Environment deployment of excellent low- total of low-carbon technology in developing Environment and carbon technology through JCM (end of March 2019) countries in the form of private-sector Ministry of Economy, and other schemes to 1 trillion yen operations (business scale: about 848.2 billion Trade and Industry in cumulative total by FY2020 by yen). Also, 134 JCM-financed projects have fully utilizing private-sector been implemented (prospective business initiatives. scale: about 230 billion yen). As of the end of March 2019, the cumulative KPI target of 1 trillion yen has already been exceeded.
21
Provisional Translation
42 Double the export value of 27.8 billion yen A The target has been achieved, with the export The Japan Society of Ministry of the incineration equipment, recycling (FY2017) value increasing to 27.8 billion yen in FY2017 Industrial Machinery Environment equipment, etc. of the actual result from the actual result in FY2015, 6 billion yen. Manufacturers in FY2015 by FY2020. The Government will continue its efforts toward (general target achievement. incorporated association) "Export value of environmental equipment by region"
I. Focus areas to be tackled in the future toward realization of "Society 5.0" and the "Flagship Project" that drives change, etc.[2], i.e. "nourishment" for economic activities will change. Group of Measures: FinTech/realization of a cashless society
Reference Main Supervising KPI Latest Figures KPI Progress Details of KPI Progress Source of KPIs No. Ministry/Agency 43 Aim to introduce open API at over 124 banks have A Among the 138 Japanese banks, there are 124 Financial Services Financial Services 80 banks within 3 years (by June announced that they banks scheduled to introduce it by June 2020, so Agency "On the Agency 2020). will introduce an API they are progressing smoothly to achieve the KPI status of by June 2020. target. development of (end of March 2019) policies related to coordination and collaboration with electronic payment etc. agents at financial institutions" (end of March 2019) 6 44 The Government aims to double Cashless settlement A In two years from 2016 (20.0%) to 2018 (24.1%), Footnote reference Ministry of the cashless payment ratio to ratio 24.1% (2018) the cashless payment ratio increased by 4.1%. Economy, Trade around 40% in the next 10 years As a result, the ratio needed to achieve the target and Industry (by June 2027). (about 2% annually, about 4% over 2 years) has been achieved.
6 (Credit card payment * 1 + debit card payment * 2 + electronic money * 3) / (private final consumption expenditure * 4) * 1 Survey of the Japan Consumer Credit Association, * 2 Report of the Bank of Japan, * 3 Bank of Japan "electronic money count", * 4 Cabinet Office "Annual Report on National Accounts" (nominal value, secondary flash value)
22
Provisional Translation
45 In the next 5 years (through June 13.9% B The proportion of SMEs that streamline back Ministry of Internal Ministry of 2022), the Government aims to (2017) office operations (finance, accounting, etc.) by Affairs and Economy, Trade increase the proportion of SMEs utilizing cloud services etc. while supporting IT Communications and Industry that streamline back office conversion is 10.8% as the reference value at the "Investigation of operations (finance, accounting, time of KPI setting (2016), but in 2017, it was communication use etc.) by using cloud services etc. 13.9%, and the increase (approximately 5% per trend in 2017" while supporting IT conversion by year) needed to achieve the 2022 target (about about 4 times the current ratio to 40%) could not be achieved. approximately 40%. 46 Aim for a 5% improvement in 158 days (FY2017) A The reference value of SCCC's KPI setting Nikkei NEEDS Ministry of 7 Japan's supply chain cash flow (FY2016) is 160 days, and that for FY2017 is 158 Financial QUEST Economy, Trade efficiency (supply chain cash days, shortening the number of days required to and Industry conversion cycle: SCCC) by 2020. achieve the target value of FY 2020 (152 days) (2 days per year). Target value for FY2020: 160 (FY2016) x 0.95 (improved by 5%) = 152
7 Average value of TSE listed companies (excluding banking, securities and commodity futures trading, insurance, other financial business, and others)
23
Provisional Translation
I. Focus areas to be tackled in the future toward realization of "Society 5.0" and the "Flagship Project" that drives change, etc.[3], i.e. "administration" and "infrastructure" will change. Group of measures: Realization of a digital government (productivity revolution from administration)
Reference Main Supervising KPI Latest Figures KPI Progress Details of KPI Progress Source of KPIs No. Ministry/Agency 47 In the World Bank's "Ease of 25th B This KPI target was set to achieve by 2020, World Bank, "Doing Cabinet Doing Business Index," Japan will (2019) meaning that it must be achieved within the next Business 2019" Secretariat be ranked a top-three among seven years. Five and a half years have passed (Japan's developed countries by 2020. as of 2017. In 2019, it was ranked 25th (lower by Economic one than the last year). Unfortunately, it is hard to Revitalization say that the KPI is steadily improving toward the General Bureau) achievement of its target. The Government will require further promotion of policy measures. Various measures for improving the business environment in Japan are being taken, such as to drive online/one-stop incorporation procedures, and the use of IT for judiciary proceedings, etc. In the future, the achievement of this KPI target will be pursued through the promotion of the measures for improving the business environment in Japan, in which relevant coordinating ministries and agencies will pinpoint each of the items organized by the "Liaison Committee of Ministries and Agencies for Improving the Business Environment." 48 Reduce administrative procedure － N The cost reduction effect of efforts based on the "To reduce Cabinet Office costs in priority areas by 20% or “Basic Plan for Reducing Administrative administrative (Regulation more by March 2020. Procedure Costs” revised in March 2018 is procedure costs" Reform Promotion expected to be 22.2%, while a summary is now (April 24, 2018, Office) being prepared on the progress of KPI as cost Administrative measurement results to formulate a report by the Procedure beginning of FY2018. Subcommittee of the Japan Regulatory Reform Promotion Council)
24
Provisional Translation
49 Reduce the number of Number of systems A As for the number of government information "About the Cabinet governmental information systems reduced: 731 systems, 731 systems (50.4%) were reduced enhancement of Secretariat by 725 by transferring them onto a (March 2019) from the FY2012 level centralized project (National Strategy cloud platform or other measures and the target was achieved. management at each Office of by the end of FY2018 stage of the Information and government Communications information system Technology) from budget request to execution" (June 4, 2019, decision of the Digital Government Ministerial Meeting) 50 Reduce the operational cost (*) of Reduction in B Reductions in operation cost from FY2013 "About the Cabinet governmental information systems operational cost: totaled approx. 50 billion yen (FY2017). enhancement of Secretariat by transferring them onto a cloud Approx.50 billion yen Reductions currently projected by the end of centralized project (National Strategy platform or other measures by (FY2017) FY2021, the target achievement period, total management at each Office of approx. 120 billion yen by FY2021 115.5 billion yen. stage of the Information and (*confined to operational costs government Communications pertaining to government information system Technology) information systems in operation from budget request as of FY2013). to execution" (June 4, 2019, decision of the Digital Government Ministerial Meeting) 51 By 2020, Japan will be ranked a 5th A The target achievement time is 2020, and the World Cabinet top-three in the World Economic (2018) target achievement period is 4 years. As of 2018, competitiveness Secretariat Forum's Global Competitiveness the ranking is 5th (up by 3 compared to last ranking of the World (Japan's Report. year), and it is thought that KPI is progressing to Economic Forum, Economic achieve the target. The achievement of KPI "WEF The Global Revitalization target will be pursued through the accelerated Competitiveness General Bureau) implementation of Japan's National Innovation Report2018" Eco-System.
25
Provisional Translation
52 Aim to increase the number of (Reference) N In "Regional IoT Implementation Survey" (the Ministry of Internal Ministry of Internal regions utilizing innovative big data 79 (end of March end of March 2018), the Ministry of Internal Affairs and Affairs and processing technologies such as 2018) Affairs and Communications conducted the first Communications Communications AI and RPA to 300 by the end of survey on use cases of innovative big data "Regional IoT the FY2020. processing technology, and 79 groups indicated Implementation that they had use cases. It is difficult to assess Survey" (end of the progress of KPIs at this point because it is March 2018) planned that the preliminary figures at the end of March of the same year will be obtained in June 2019. In the future, the Government will evaluate as soon as the data are obtained. 53 As regards the data published It cannot be N The Government held an open data public- 7th Open Data Cabinet according to the needs of the calculated at present private round table and listened to the needs of Working Group (held Secretariat private sector based on public- the private sector. Based on the public-private on March 15, 2019), (National Strategy private round table discussions, round table discussion, the Government is Reference Material 1 Office of 100% will be provided as a file working on the release of target data, and will Information and format suitable for machine evaluate as soon as the data is released. Communications reading during intensive work Technology) period up to 2020. 54 Increase the ratio of work on open 26% (as of March B The Government implemented various support Government CIO Cabinet data in the government and local 11, 2019) programs for the promotion of open data efforts Portal (List of Local Secretariat authorities to 100% by FY2020. in local public organizations, such as the Authorities Working (National Strategy development of "guidelines and guides for on Open Data) Office of promotion of open data for local public Information and organizations" and the provision of "open data Communications packages for local public organizations", and the Technology) number of local authorities using open data has steadily increased (140 local authorities increased in FY2018). In the future, further promotion of measures will be required to achieve the target.
26
Provisional Translation
I. Focus areas to be tackled in the future toward realization of "Society 5.0" and the "Flagship Project" that drives change, etc.[3], i.e. "administration" and "infrastructure" will change. Group of measures: Advancement of infrastructure management including construction of a next-generation infrastructure maintenance system
Reference Main Supervising KPI Latest Figures KPI Progress Details of KPI Progress Source of KPIs No. Ministry/Agency 55 Aim for a 20% improvement in ― F For ICT earthworks, which has been promoted as Survey by the Ministry of Land, construction site productivity by a top runner measure for i-Construction since Ministry of Land, Infrastructure, FY2025. FY2016, the Government has confirmed a time Infrastructure, Transport and reduction effect of 32.9% * (*For implementation Transport and Tourism in 2018 (January 31, 2019)). Tourism The Government has targeted increased application of ICT to all processes including bridge, tunnel, dam construction and maintenance by FY2019, to foundation construction and block installation in port construction in FY2020, and revise various manuals and guides in FY2021 to aim to further improve productivity. At the same time, the Government will study the effects on productivity improvement and the process for achieving KPI. 56 By around 2020, increase the ― N The Government is investigating the results of Survey by the Ministry of Land, percentage of facility managers FY2018 that will be necessary for the evaluation Ministry of Land, Infrastructure, who have introduced new of KPI progress, and will announced it by this fall Infrastructure, Transport and technologies such as robots and In order to achieve the goal of the percentage of Transport and Tourism sensors that satisfy a certain level facility managers introducing new technologies Tourism of technology in operations such etc., the Government will continue to promote as inspection and diagnosis of technological development with public and important infrastructure/aging private sectors and speedy development of infrastructure in Japan to 100% by technical standards. 2030. 57 Have Tokyo rank within the top 3rd A Tokyo has achieved 3rd place in comprehensive Mori Memorial Cabinet three cities of the Global Power (2018) urban power ranking in 2016, and continues to Foundation, "Global Secretariat City Index by 2020. be at 3rd place in 2018, following 2016 and 2017. Power City Index (Japan's 2018" Economic Revitalization General Bureau)
27
Provisional Translation
58 Expand the size of the distribution 4 trillion yen B The size of the distribution market for existing Housing Market Ministry of Land, market for existing homes to 8 (2013) homes remained almost unchanged between Trends Survey Infrastructure, trillion yen by 2025 (4 trillion yen in 2010 and 2013. Since the pace of market (annual), Housing Transport and 2010) expansion needs to be accelerated to achieve and Land Survey Tourism *Aim to achieve the target by 2020 the target, the Government has been (every 5 years) as much as possible. implementing measures including the establishment of special measures for purchase and resale (April 2014-March 2020 for the registration and license tax; April 2015-March 2021 for the real estate acquisition tax), loans for the acquisition cost of second-hand homes under Flat 35 scheme of the Japan Housing Finance Agency (from April 20, 2015), and “Housing Security R,” a registration system for trade associations (from December 2017). While such initiatives are expected to yield result, the Government will need to step up its measures to achieve the target. 59 Double the renovation market 7 trillion yen B The size of the house renovation market was 7 Housing and Land Ministry of Land, scale to 12 trillion yen by 2025 (6 (2013) trillion yen in the latest figure in 2013 (addition of Survey (every 5 Infrastructure. trillion yen in 2010). *As possible approx. 1 trillion yen from 2010). Since the pace years), Housing Transport and by 2020 of market expansion needs to be accelerated to Market Trends Tourism achieve the target, the Government has been Survey (annual), implementing measures including the loans for Report on Family long-term excellent housing renovation promotion Income and project (February 2014-), housing renovation Expenditure Survey business group registration system (September (annual), Population, 2014-), and for the acquisition cost of second- demographic hand homes under Flat 35 scheme of the Japan movements, and the Housing Finance Agency (from April 20, 2015). number of While such initiatives are expected to yield result, households based the Government will need to step up its on the Basic measures to achieve the target. Resident Register (annual), Survey on awareness and opinions about reforms (annual)
28
Provisional Translation
60 The proportion of houses for 2.4% B The proportion of houses for senior citizens • Elderly population: Ministry of Land, senior citizens among the elderly (2017) among the elderly population in FY2017 was “Population Infrastructure, population [0.9% (2005) 3-5% 2.4%. As it is necessary to promote the supply of Estimate” by the Transport and (2020)] housing for elderly people to achieve the goal, Ministry of Internal Tourism the Government is implementing measures such Affairs and as assistance to the construction cost of housing Communications for elderly people with service, and special tax • Housing for senior measures. While such initiatives are expected to citizens: “Survey yield result, the Government will need to step up on Social Welfare its measures to achieve the target. Facilities” (annual) by the Ministry of Health, Labour and Welfare, survey by the Ministry of Land, Infrastructure, Transport and Tourism (as needed) and survey by the Ministry of Health, Labour and Welfare (annual)
I. Future priority areas to tackle and “Flagship Project” as the leading power of reform toward achieving “Society 5.0” - [3] Changes in “Government” and “Infrastructure” Policy Group: Accelerated introduction of PPP/PFI approach
Reference Main Supervising KPI Latest Figures KPI Progress Details of KPI Progress Source of KPIs No. Ministry/Agency 61 Expand the scale of PPP/PFI Scale of Projects: A Since there are large-scale concession projects Data from Cabinet Cabinet Office projects to 21 trillion yen in the approx. 13.8 trillion including the specific airport operations of Kansai Office (PPP/PFI next ten years (FY2013 to yen International Airport and Osaka International Promotion Office) FY2022). Out of 21 trillion, PFI Airport, the KPI is progressing at a pace faster projects using the concession Of the above figure, than the proportion of the transitional period to system of public facilities, etc. is projects using the the target achievement period. targeted at 7 trillion yen. concession system of public facilities, etc.: Approx. 5.7 trillion yen (FY2013 to FY2017).
29
Provisional Translation
I. Future priority areas to tackle and “Flagship Project” as the leading power of reform toward achieving “Society 5.0” - [4] Changes in “Regions,” “Communities,” and “SMEs” Policy Group: Overall reform and smartification of agriculture, forestry and fishery industries
Reference Main Supervising KPI Latest Figures KPI Progress Details of KPI Progress Source of KPIs No. Ministry/Agency 62 * Increase the number of 22,700 corporations B While the deadline for target achievement is “Census of Ministry of incorporated management (February 2018) 2023 with the target achievement period of ten Agriculture and Agriculture, entities by about four times from years, five years have elapsed at the point of the Forestry,” “Survey on Forestry and the 2010 level to 50,000 in the “latest figure.” Although the number of Movement of Fisheries next ten years (by 2023). incorporated management entities increased Agricultural from 14,600 (February 2013) to 22,700 (February Structure” by the 2018), it would be preferable to have this figure Ministry of increased to 32,300 to achieve the target. The Agriculture, Forestry progress is insufficient, and the Government will and Fisheries need to further promote the policy measures. 63 * Increase the ratio of farmland 56.2% B While the deadline for target achievement is “Statistics on Ministry of used by business farmers to (End of FY2018) 2023 with the target achievement period of ten Cultivated Land and Agriculture, 80% in the next ten years (by years, five years have elapsed at the point of the Planted Area” by the Forestry and 2023). “latest figure.” Although the ratio of concentration Ministry of Fisheries of farmland on business farmers rose from 48.7% Agriculture, Forestry (at the end of FY2013) to 56.2% (at the end of and Fisheries, and FY2018), it would be preferable to have this survey by the figure increased to 64.4% at the point of the Agricultural Land “latest figure” to achieve the target. The progress Policy Planning is insufficient, and the Government will need to Division of further promote the policy measures. Management Improvement Bureau, Ministry of Agriculture, Forestry and Fisheries
30
Provisional Translation
64 * Reduce the cost of rice Management by B While the deadline for target achievement is “Agricultural Ministry of production by business farmers individual farms8: 2023 with the target achievement period of ten production cost,” Agriculture, by 40% in the next ten years (by 10,995 yen/60kg years, four years have elapsed at the point of the “Production cost of Forestry and 2023) compared with the (2017) “latest figure.” The cost of rice production by rice and wheat Fisheries national average in 2011 by Management by business farms in 2017 was 10,995 yen/60kg for varieties,” and reflecting the efforts of the incorporated individual farms and 11,859 yen/60kg for farming “Analytical survey on industry in materials, distribution organizations9: by incorporated organizations. management of and other areas. 11,859 yen/60kg) Although the cost of rice production in 2011 was incorporated (2017) about 30% lower than the national average of management 16,001 yen/60kg, it would be preferable to have entities” by the this figure lowered to 10,664 yen/60kg for Ministry of management by individual farms and 10,999 Agriculture, Forestry yen/60kg for management by incorporated and Fisheries organizations at the point of the “latest figure” to achieve the target. The progress is insufficient, and the Government will need to further promote the policy measures. 65 * Increase the productivity of feed 10,400 yen /60kg B While the deadline for target achievement is “Agricultural Ministry of rice production by business (2017) 2025 with the target achievement period of ten production cost” and Agriculture, farmers to twice the national years, two years have elapsed at the point of the “Production cost of Forestry and average in 2013 in the next ten “latest figure.” The cost of feed rice production by rice and wheat Fisheries years (by 2025) through cost business farmers in 2017 was 10,400 yen/60kg. varieties” by the reduction and increase in yield Although the cost of rice production in FY2013 Ministry of per unit size of farmland (cut was about 30% lower than the national average Agriculture, Forestry farmers’ production cost per of 15,229 yen/60kg, it would be preferable to and Fisheries 60kg of rice by around 50%). have this figure lowered to 9,915 yen/60kg at the point of the “latest figure” o achieve the target. The progress is insufficient, and the Government will need to further promote the policy measures.
8 Among certified farmers, individual management entities (with rice paddy acreage of 15ha or more), whose farming income from rice paddy cultivation per one farmer is equivalent to that from other industry. 9 Incorporated management entities (with rice paddy acreage of 22ha on average) whose sales income from rice paddy cultivation is largest compared to that from other types of farming.
31
Provisional Translation
66 * Expand the market size of the 7.1 trillion yen B While the deadline for target achievement is “Comprehensive Ministry of so-called AFFrinnovation to 10 (FY2017) FY2020 with a target achievement period of Survey of the Agriculture, trillion yen in FY 2020. seven years starting with FY2013 in which the AFFrinnovation” by Forestry and market size range of the AFFrinnovation was the Ministry of Fisheries reviewed, four years have passed at the point of Agriculture, Forestry the “latest figure”. Although the market size of the and Fisheries AFFrinnovation expanded to 7.1 trillion yen (FY2017) from 4.7 trillion yen (FY2013), it would be preferable to have this figure increased to 7.7 trillion yen at the point of the “latest figure” to achieve the target. The progress is insufficient, and the Government will need to further promote the policy measures. 67 * Increase the number of dairy 461 cases A While the deadline for target achievement is Survey by the Ministry of farms engaged in the sixth (End of April, 2018) 2020 with a target achievement period of six Ministry of Agriculture, sector industrialization to 500 by years, four years have passed at the point of the Agriculture, Forestry Forestry and 2020. “latest figure.” The number of dairy farms and Fisheries and Fisheries engaged in the sixth sector industrialization the Japan Dairy increased from 236 (2014) to 461 (end of April, Council 2018), exceeding the prorated KPI target of 412 at this point. 68 Ensure that almost all of business ― N To evaluate the KPI progress, Census of “Census of Ministry of farmers will utilize data in their Agriculture and Forestry with improved survey Agriculture and Agriculture, farming flow by 2025. items and other policies will be used from 2020. Forestry” by the Forestry and Ministry of Fisheries Agriculture, Forestry and Fisheries 69 * Realize an unmanned automatic ― F The R&D targeted on the realization of the ― Ministry of traveling system by remote unmanned automatic traveling system of farm Agriculture, monitoring for movement machinery by remote monitoring is being Forestry and between fields by 2020. conducted under the “Strategic Innovation Fisheries Promotion Program (SIP).” Also, the “Guideline on the Security Assurance of Automatic Traveling of Farm Machinery” was formulated in March 2017 toward the commercialization of farm machinery that travels automatically under manned monitoring. Multiple farm machinery manufacturers have started commercial sales or test marketing.
32
Provisional Translation
70 Achieve the export value of 906.8 billion yen B While the deadline for target achievement is Ministry of Finance, Ministry of agricultural, forestry and fishery (2018) 2019 with a target achievement period of seven "Trade Statistics" Agriculture, products and foods, 1 trillion yen in years, six years have passed at the point of the Forestry and 2019 and reach the 5 trillion-yen “latest figure.” Although the export value of Fisheries mark by 2030. agricultural, forestry and fishery products and foods increased from 449.7 billion yen (2012) to 906.8 billion yen (2018), particularly with an increase of 99.7 billion yen in a single year from 2017 to 2018, it would be preferable to have this figure increased to 921.4 billion yen at the point of the “latest figure” to achieve the target when evaluating the progress based on the proportion of the transitional period to the target achievement period. Therefore, the Government will need to further promote the policy measures. 71 Double the added values of ― N While the deadline for target achievement is “Input-Output Ministry of forestry and wood industries 2028 with a target achievement period of 11 Tables” by the Agriculture, originated from privately-owned years, it is difficult to evaluate the progress at this Minister of Internal Forestry and artificial forests by 2028. stage because the 2018 actual figures that are Affairs and Fisheries essential for evaluation of KPI progress will be Communications, determined in around March 2020. “Wood Demand and Supply Chart,” “Statistical Survey on Lumber” by the Ministry of Agriculture, Forestry and Fisheries
33
Provisional Translation
I. Future priority areas to tackle and “Flagship Project” as the leading power of reform toward achieving “Society 5.0” - [4] Changes in “Regions,” “Communities,” and “SMEs” Policy Group: Realization of smart cities through town development, public transportation, and ICT
Reference Main Supervising KPI Latest Figures KPI Progress Details of KPI Progress Source of KPIs No. Ministry/Agency 72 Introduce the advanced local alert Prefectures: Local alert: N Regarding advancement of local alert systems, it Ministry of Internal Ministry of Internal system to 15 prefectures and is difficult to evaluate the progress at this point. Affairs and Affairs and geospatial disaster prevention Through the field tests performed in 2018, the Communications, Communications information system to 100 local Local governments: Geospatial Government plans to formula standard “Regional IoT governments by the end of 72 disaster specifications necessary for mapping of local Implementation FY2020 to improve regional (End of March, prevention alert information to add to the prefectural disaster Survey” disaster prevention. 2018) information prevention information systems and promote the (End of March, 2018) system: widespread use of the systems from the next A fiscal year. Regarding the geospatial disaster prevention information system, good progress is reported; The “Regional IoT Implementation Survey” conducted by the Minister of Internal Affairs and Communications (end of March 2017) received the answer of “There are one or more use cases” from 45 organizations, and the same survey conducted at the end of March 2018 received the same answer from 72 organizations. 73 Create efforts utilizing IoT familiar 272 (End of March, B The “Regional IoT Implementation Survey” Ministry of Internal Ministry of Internal to living in 800 local governments 2018) conducted by the Minister of Internal Affairs and Affairs and Affairs and by the end of FY2020. Communications (end of March 2017) received Communications, Communications the answer of “Already implementing efforts” from “Regional IoT 128 organizations, and the same survey Implementation conducted at the end of March 2018 received the Survey” same answer from 272 organizations. (End of March, 2018)
34
Provisional Translation
I. Future priority areas to tackle and “Flagship Project” as the leading power of reform toward achieving “Society 5.0” - [4] Changes in “Regions,” “Communities,” and “SMEs” Policy Group: Further strengthen the productivity revolution of SMEs and micro businesses
Reference Main Supervising KPI Latest Figures KPI Progress Details of KPI Progress Source of KPIs No. Ministry/Agency 74 Aim for 2.0% growth in the labor 0.18% B The growth rate reached approx. 0.18% in three Cabinet Office, " Ministry of productivity of service industry by (Average growth years between 2015 and 2017. This points to the National Accounts of Economy, Trade 2020. rate between 2015 need to further promote the policy measures for Japan" and Industry and 2017) target achievement. In future, the Government will steadily promote the necessary policy measures including IT utilization in SMEs, service industries and the development of human resources who support IT utilization, as well as strengthened collaboration with related ministries, agencies and industrial organizations. 75 Aim to promote introduction of IT - N While the deadline for target achievement is Data of Ministry of Ministry of tools to approximately 1 million 2020 with a target achievement period of three Economy, Trade and Economy, Trade firms, equivalent to about 30% of years, it is difficult to evaluate the progress at this Industry and Industry all SMEs and micro businesses in stage because the 2018 actual figures that are the three years to 2020. essential for evaluation of KPI progress is being confirmed. Since not only government assistance but also an expanded support system by private sectors is necessary to achieve the productivity revolution, this KPI target was set. In future, toward the achievement of this KPI target, the Government will steadily promote the necessary policy measures including indirect support through certified information processing organizations as well as government’s direct support such as IT introduction Subsidies.
35
Provisional Translation
76 Increase profiting SMEs and micro 954,546 enterprises B The actual figure in FY2016 was about 954,546. “Corporation Sample Ministry of businesses from 700,000 firms to (FY2016) It is lower than the FY2016 value of 1,050,000 by Survey” by the Economy, Trade 1.4 million firms. about 100,000, a value based on a calculation of National Tax Agency and Industry linear increase over the target achievement period (eight years). This points to the need to further promote the policy measures for target achievement. The Government will continue to steadily increase the number of profiting SMEs and micro enterprises through Subsidy for Manufacturing and Service of SMEs, IT introduction Subsidies, support based on the Act on Enhancement of Management of Small and Medium Enterprises and a system to reduce fixed asset tax (zero to 1/2) based on the Act on Special Measures for Productivity Improvement. 77 Aim to achieve start-up rates Rate of N The rate of establishment and exit were 4.6% “Annual Report on Ministry of exceeding cut-off rates and make establishment: 5.6%, and 3.8% in FY2012 and 5.6% and 3.5% in Employment Economy, Trade them comparable to US / UK level Rate of exit: 3.5% FY2017, respectively. To achieve these KPIs, Insurance Programs” and Industry (10% range). (FY2017) changes in the awareness of the public on and “Monthly Report [Supplementary indicator] business startups will be required in addition to on Employment Double the Entrepreneurial Activity [Supplementary [Supplement measures by the Government. Since this will be Insurance Programs” Index (Ratio of those that chose indicator] ary indicator] a long-term target, the Entrepreneurial Activity by the Ministry of the answer, “have started business 4.7% B Index was established as a supplementary Health, Labour and or plan to start business” in the (FY2017) indicator with a view on the next ten years. In a Welfare “Survey on Entrepreneurship”) in FY2017 survey, the supplementary indicator was the next ten years. 4.7%, which is below a required value (4.9%) to [Supplementary double the result of FY2014 survey (3.8%) by the indicator] FY2024 survey. The Government will continue to “Survey on examine improvements in entrepreneurial spirit Entrepreneurship” by and take measures for achieving the target for the Ministry of rate of establishment and exit shown in this Economy, Trade and indicator. Industry 78 Make the holding ratio of overseas 1.03 times N While the deadline for target achievement is Small and Medium Ministry of subsidiaries of SMEs 1.5 times (2016) 2023 with a target achievement period of six Enterprise Agency, " Economy, Trade compared to 2015 by 2023. years, it is difficult to evaluate the progress at this Basic Survey on and Industry stage because the 2018 actual figures that are Small and Medium essential for evaluation of KPI progress will be Enterprises " determined in around July 2020.
36
Provisional Translation
79 Support for leading technology 207 cases A The number of supported projects were 207 in Survey by the Ministry of development projects that utilize (FY2016) FY2016, 282 in FY2017, and 270 in FY2018. Ministry of Economy, Economy, Trade local technology, establishing a 282 cases Trade and Industry and Industry consortium based on industry- (FY2017) and Ministry of government-academia-finance 270 cases Education, Culture, collaboration, with a target of (FY2018) Sports, Science and around 200 each year for 1,000 Technology projects in five years.Establish
I. Future priority areas to tackle and “Flagship Project” as the leading power of reform toward achieving “Society 5.0” - [4] Changes in “Regions,” “Communities,” and “SMEs” Policy Group: Tourism, sports and culture/art
Reference Main Supervising KPI Latest Figures KPI Progress Details of KPI Progress Source of KPIs No. Ministry/Agency 80 Increase the number of 28,691,073 persons B While the deadline for target achievement is Japan National Ministry of Land, international visitors to Japan to 40 (final figure for 2020 with a target achievement period of five Tourism Infrastructure, million in 2020 and 60 million in 2017), years, three years have passed at the point of Organization, Transport and 2030. 31,191,856 persons the “latest figure.” “Statistics on the Tourism (provisional figure Regarding the number of internationa visitors to Number of visitor (Japan Tourism for 2018) Japan in 2018, the growth rate declined in arrivals” Agency) September due to the series of natural disasters but recovered later through various measures the Government took. The number reached the 30 million level toward the end of the year and finally totaled 31.19 million, although it was below 31.90 million, a figure that would be required in 2018 to achieve the KPIi for 2018. The Government will continue to steadily increase the number of international visitors up to 40 million, a target for 2020, by improving receptive environment such as multilingual support, free Wi-Fi, etc. and developing new tourism contents.
37
Provisional Translation
81 Increase the amount of 4.4162 trillion yen B While the deadline for target achievement is “International Visitor Ministry of Land, consumption by international (final figure for 2020 with a target achievement period of five Survey” by the Japan Infrastructure, visitors to Japan to 8 trillion yen in 2017), years, three years have passed at the point of Tourism Agency Transport and 2020 and 15 trillion yen in 2030. the “latest figure.” Tourism (Japan 4.5189 trillion yen The amount of consumption by international Tourism Agency) (final figure for 2018) visitors to Japan steadily increased to 4.5189 trillion yen in 2018 (*), but it was lower than 6.1908 trillion yen, a figure that would be required in 2018 to achieve the KPI. (*) The previous surveys focused on travelers using airports. However, in light of a rapid increase of cruise visitors to Japan who tend to stay for a short time, these visitors have also been included as targets and reflected in the survey result since 2018. The amount of consumption by international visitors to Japan in 2018 estimated based on previous surveys is 4.8 trillion yen. The Government will continue to steadily increase the amount of consumption by international visitors to Japan up to 8 trillion yen, a target for 2020, by improving receptive environment such as multilingual support, free Wi-Fi, etc. and developing new tourism contents. 82 Increase the total number of 32.66 million (final B While the deadline for target achievement is “Overnight Travel Ministry of Land, international visitor spending figure for 2017), 2020 with a target achievement period of five Statistics Survey” by Infrastructure, nights in rural areas of Japan to 70 36.36 million years, three years have passed at the point of the Japan Tourism Transport and million in 2020 and 130 million in (provisional figure the “latest figure.” The total number of Agency Tourism (Japan 2030. for 2018) international visitor spending nights in rural areas Tourism Agency) of Japan steadily increased to 36.36 million in 2018, but it was lower than 52.06 million, a figure that would be required in 2018 to achieve the KPI. The Government will continue to encourage visitors to travel to rural areas and increase their consumptions to achieve 70 million guest nights, a target for 2020, by improving receptive environment such as multilingual support, free Wi-Fi, etc. and developing new tourism contents.
38
Provisional Translation
83 Increase the number of repeat 17.61 million A While the deadline for target achievement is “International Visitor Ministry of Land, visitors from other countries to 24 (final figure for 2020 with a target achievement period of five Survey” by the Japan Infrastructure, million in 2020 and 36 million in 2017), years, three years have passed at the point of Tourism Agency and Transport and 2030. 19.38 million the “latest figure.” “Statistics on the Tourism (final figure for 2018) The total number of international return visitors in Number of visitor (Japan Tourism 2018 reached 19.38 million, which exceeded the arrivals” by the Agency) rate of increase for achievement of KPI(19.04 Japan National million) of ‘’24 million in 2020’’ Tourism Organization 84 Increase the total amount of 21.1 trillion yen B While the deadline for target achievement is “National Tourism Ministry of Land, consumption by Japanese (final figure for 2020 with a target achievement period of five Survey” by the Infrastructure, domestic travelers to 21 trillion yen 2017), years, three years have passed at the point of Transport and in 2020 and 22 trillion yen in 2030. 20.5 trillion yen the “latest figure.” The amount of consumption by Japan Tourism Tourism (final figure for 2018) Japanese domestic travelers totaled 20.5 trillion Agency (Japan Tourism in 2018, falling below 20.8 trillion yen, a figure “Survey of Trends in Agency) that would be required in 2018 to achieve the KPI Travel and Tourism or the prorated KPI target for 2018. Consumption” by the The Government will continue to promote Japan Tourism domestic tourism to achieve 21 trillion yen, a Agency target for 2020, by developing tourism contents that also appeal to Japanese and considering the popularization of a new style of tourism with a mixture of business and sightseeing. 85 Increase the number of tax-free 18,096 shops A While the deadline for target achievement is Tabulation by the Ministry of Land, shops in rural areas from approx. (October 2018) 2018 with a target achievement period of four National Tax Agency Infrastructure, 6,600 (April 2015) to the scale of years, three years and six months have passed Transport and 20,000 in 2018. at the point of the “latest figure.” Tourism The number of tax-free shops in rural areas (Japan Tourism reached 18,096 in October 2018, which largely Agency) reached the rate of increase for achievement of KPI(18,319 shops ) of 20,000 shops in 2018. 86 Establish Japan’s position as the 1st in Asia A Continuing from 2016, the number of “ICCA Statistics Ministry of Land, No. 1 country in Asia for hosting * 7th in the world international conferences hosted in Japan was Report” by ICCA Infrastructure, international conferences by 2030. the 1st in Asia in 2017. (International Transport and Number of Congress and Tourism international Convention (Japan Tourism conferences hosted Association) Agency) in Japan: 414 (2017)
39
Provisional Translation
87 Expand the size of the sports 5.5 trillion yen N A group headed by the Development Bank of Compiled by the Ministry of market to 10 trillion yen by 2020 (2015) Japan has examined the methods to calculate Ministry of Education, and 15 trillion yen by 2025. the sports market scale in an internationally Education, Culture, Culture, Sports, comparable and stable manner by reference to Sports, Science and Science and Europe’s previous cases and just decided that Technology based Technology the size of sports market is estimated using the on a survey by the “Input-Output Tables.” Then, an evaluation will be Development Bank made as soon as the “latest figure” is made of Japan available. 88 Establish 20 stadiums and arenas ― N The Government will immediately develop criteria Data from Ministry of Ministry of across Japan between 2017 and for selecting stadiums and arenas as KPI targets Education, Culture, Education, 2025 as interaction bases where based on opinions from relevant ministries and Sports, Science and Culture, Sports, diversified generations get agencies, external experts, etc. After that, Technology Science and together. certification is conducted. Technology 89 Increase the rate of adults 55.1% A The rate of adults participating in sports once a “Public Opinion Ministry of participating in sports once a week (FY2018 survey) week or more increased to 55.1% in FY2018 Survey on the Tokyo Education, or more from 40.4% in 2015 to from 40.4% in FY2015. 2020 Olympic and Culture, Sports, about 65% by 2021. The progress has been adequate; The rate is Paralympic Games” Science and higher than 52.7%, a value based on a simple (FY2015) and “Public Technology calculation of increase over six years from 2015 Opinion on to 2021 toward achieving the 65% target. Further Participation in promotion of policy measures is necessary for Sports, target achievement. The Government will steadily etc.”(FY2018) implement measures targeted mainly at children, businesspersons, senior citizens, women, and handicapped persons, based on an action plan for increasing the sports participation rate of citizens (formulated in September 2018). For example, the use of public-private partnerships to create an environment in which businesspersons can take part casually in exercise and sports.
40
Provisional Translation
90 Expand the culture-related GDP to 8.9 trillion yen B The figure for 2016 (preliminary) was 8.9 trillion FY2016 preliminary Ministry of 18 trillion yen (approx. 3% of GDP) (2016) yen. To achieve the target, the Government will figures based on Education, by 2025. strengthen collaboration with tourism, town “Survey and Culture, Sports, development, international exchange, welfare, research on the Science and education, industry, and other related areas as economic scale and Technology well as further support culture/art activities economic ripple through which added values are created. effects of culture Regarding the economic size of culture/art industry” (NLI industry (so-called cultural GDP), UNESCO Research Institute), (United Nations Educational, Scientific and a project Cultural Organization) is currently establishing commissioned by the international indicators of culture's economic Agency for Cultural value. While actively participating in discussion of Affairs in FY2015 this international framework, the Government will reconsider KPI including target values. 91 Increase the proportion of citizens Proportion of N According to the “Public opinion survey on “Public opinion Ministry of engaged in the appreciation of citizens engaged in culture” in FY2016, the proportion of citizens survey on culture” Education, culture/art to approx. 80% and appreciation of engaged in appreciation of culture/art was 59.2% (Cabinet Office, Culture, Sports, those engaged in culture/art culture/art: 59.2% and the proportion of people engaged in November 2016) Science and activities other than appreciation to culture/art activities other than appreciation was Technology approx. 40% by 2020. Proportion of 28.1%. citizens engaged in The Government will further promote policy culture/art activities measures aiming to realize a society in which all other than people take part in culture/art activities, for appreciation: 28.1% instance by advancing cultural programs including “Japan expo” taking the coming Tokyo Olympic and Paralympic Games as an opportunity.
41
Provisional Translation
II. Establishing the foundation for structural innovation of economy - [1] Common infrastructure building for data-driven society Policy Group: Promotion of investment for infrastructure system/technology
Reference Main Supervising KPI Latest Figures KPI Progress Details of KPI Progress Source of KPIs No. Ministry/Agency 92 Create 30 cases of introducing 25 cases (End of A Regarding the specified innovative use of data The number of Ministry of data sharing across March, 2019) for industrial activities based on the Act on enterprises that Economy, Trade industries/operators by FY2020. Special Measures for Productivity Improvement, adopt the specified and Industry the establishment of required systems was innovative use of completed by the end of July 2018, and the data for industrial creation of approved business will be activities based on continuously promoted. 25 cases of collecting the Act on Special and sharing data collaboratively among multiple Measures for enterprises were created using the subsidy for Productivity project to promote industrial data sharing. Improvement and Through these efforts, the cases of sharing data data sharing across across industries/operators are steadily industries/operators expanding. created by the Ministry of Economy, Trade and Industry 93 Increase the number of Registered 17,360 persons A The Information-technology Promotion Agency Tabulated by IPA Ministry of Information Security Specialists to (As of October 1, (IPA) has performed the registration of Economy, Trade more than 30,000 by 2020. 2018) Information Security Specialists biannually since and Industry April in 2017. The number of registrations in October 2018 was 8,214, and the total has reached 17,360, showing good progress. 94 Seek to maintain the current top No. 1 A The current top position was maintained in a OECD Digital Ministry of Internal position in terms of broadband (September 2014) comparison of broadband charges (charges per Economy Outlook Affairs and charges (charges per unit speed) unit speed) among OECD member countries in 2015 Communications among OECD member countries. OECD Digital Economy Outlook 2015 released in July 2015. 95 Provide Wi-Fi environment at Places where Wi-Fi- B The number of places where Wi-Fi environment Ministry of Internal Ministry of Internal approximately 30,000 disaster environment has has been completed was about 21,000 as of Affairs and Affairs and prevention facilities and other been completed: October 1, 2017 and then increased up to about Communications, Communications places such as evacuation sites Approx. 24,000 (As 24,000 as of October 1, 2018. To achieve the “Wi-Fi Environment and centers, sightseeing guide of October 1, 2018) target, further development of Wi-Fi environment Development Plan centers, museums, cultural will be needed based on “Wi-Fi Environment for Disaster properties, and natural parks by Development Plan for Disaster Prevention, etc.” Prevention, etc.” FY2019. (December 2018)
42
Provisional Translation
II. Establishing the foundation for structural innovation of economy - [1] Common infrastructure building for data-driven society Policy Group: Development and optimal utilization of human resources responding to the AI era
Reference Main Supervising KPI Latest Figures KPI Progress Details of KPI Progress Source of KPIs No. Ministry/Agency 96 Achieve 500,000 examinees of N N This target has been newly set as KPI since Data of Ministry of Ministry of new IT passport examination by FY2018. The design of the examination system Economy, Trade and Economy, Trade FY2023. has been completed in FY2018 for the first Industry and Industry examination in FY2019. 97 Double the number of university 55,969 B While the deadline for target achievement is Number of Japanese Ministry of students, etc. studying abroad (2016) 2020 with the target achievement period of six studying abroad Education, from 60,000 to 120,000. years, three years have elapsed at the point of (Survey by the Culture, Sports, the “latest figure.” Although the number of Ministry of Science and university students, etc. studying abroad Education, Culture, Technology increased from 55,946 to 55,969, the prorated Sports, Science and KPI target of 83,000 at this point has not been Technology) achieved. While also considering the number of university students, etc. who are enrolled in Japanese universities, etc. and study abroad for a short time (69,869 in FY2013 -> 105,301 in 2017) according to the survey conducted by Japan Student Services Organization, the policy measures need to be promoted further. 98 Increase the percentage of 76.6% B While the deadline for target achievement is Ministry of Ministry of teachers capable of teaching in (2017) 2020 with the target achievement period of six Education, Culture, Education, class using IT devices to 100% by years, three years have elapsed at the point of Sports, Science and Culture, Sports, 2020. the “latest figure.” Although the percentage of Technology, "Survey Science and these teachers increased from 71.4% to 76.6%, about ICT in Technology the prorated KPI target of 85.7% at this point has Education at not been achieved. The policy measures need to Schools" be promoted further. 99 Increase the percentage of regular 38.3% (FY2017) B While the deadline for target achievement is Ministry of Ministry of classrooms with wireless LAN to FY2020 with the target achievement period of six Education, Culture, Education, 100% by FY2020. years, three years have elapsed at the point of Sports, Science and Culture, Sports, the “latest figure.” Although the percentage of Technology, "Survey Science and these classrooms with LAN environment about ICT in Technology increased from 27.2% to 38.3%, the prorated KPI Education at target of 63.6% at this point has not been Schools" achieved. The policy measures need to be promoted further.
43
Provisional Translation
100 Set up personal computers (PC) (Reference: N This target has been newly set as KPI since Ministry of Ministry of for learning corresponding to the FY2017) FY2018. While the number of the PCs installed Education, Culture, Education, size of a class every three classes One PC per 5.6 increased from one per 5.9 children to one per Sports, Science and Culture, Sports, by FY2020. children 5.6 children, the progress is not good. The policy Technology, "Survey Science and measures need to be promoted further. about ICT in Technology Education at Schools" 101 Increase the percentage of 73.9% (FY2017) A While the deadline for target achievement is Data from Ministry of Ministry of prefectures, cities, towns and FY2020 with the target achievement period of six Education, Culture, Education, villages formulating development years, three years have elapsed at the point of Sports, Science and Culture, Sports, plans for IT environment to 100% the “latest figure.” The percentage of prefectures, Technology Science and by FY2020. cities, towns and villages formulating Technology development plans for IT environment significantly increased from 38.3% to 73.9%, already exceeding the prorated KPI target of 66% at this point. 102 Improve the English-language Junior high B While the deadline for target achievement is Data from Ministry of Ministry of skills of English teachers 36.2%、 2020 with the target achievement period of seven Education, Culture, Education, (Percentage of English teachers Senior high years, five years have elapsed at the point of the Sports, Science and Culture, Sports, with CEFR Level B2 or higher: 68.2% (as of “latest figure.” The percentage of English Technology "Survey Science and 28% to 50% for junior high, 52% to December 2018) teachers with required English-language skills on English Language Technology 75% for senior high) by 2020. increased from 33.6% to 36.2% for junior high Education” and 65.4% to 68.2% for senior high over the previous year. The former falls below the prorated KPI target of 43.7% at this point, and the latter has almost achieved that value of 68.4%. In particular, the policy measures for junior high school teachers need to be promoted further. 103 Increase the percentage of At time of junior high B While the deadline for target achievement is Data from Ministry of Ministry of students with CEFR level A1 or graduation: 42.6%, 2022 with a target achievement period of five Education, Culture, Education, higher at the time of graduation At time of senior years, a year has passed at the point of the Sports, Science and Culture, Sports, from junior high or level A2 or high graduation: “latest figure.” The percentage of students with Technology "Survey Science and higher at the time of graduation 40.2% (as of required English-language skills increased from on English Language Technology from senior high to 50% or higher December, 2018) 40.7% to 42.6% at the time of graduation from Education” by FY2022. junior high and 39.3% to 40.2% at the time of graduation from senior high over the previous year. The former has achieved the prorated KPI target of 42.6% at this point, and the latter falls below that value of 41.4%. In particular, the policy measures for senior high school students need to be promoted further.
44
Provisional Translation
104 Increase the number of Number of B While the deadline for target achievement is Data from Ministry of Ministry of International Baccalaureate International 2020 with the target achievement period of seven Education, Culture, Education, accredited schools, etc. to 200 or Baccalaureate years, five years have elapsed at the point of the Sports, Science and Culture, Sports, more by FY2020. accredited schools, “latest figure.” Although the number of accredited Technology Science and etc.: 138 schools increased from 54 to 138, additional 62 Technology (Including nominated schools will be required to achieve the KPI by the schools, March, deadline year, FY2020. The policy measures 2019) need to be promoted further. After 2018, a consortium will be established as part of environment development that plays a core role in the development and promotion of International Baccalaureate (IB) in Japan. The Government will further promote support for IB introduction and management of the schools defined in Article 1 of the School Education Act. 105 Increase the number of courses (Reference: April N This target has been newly set as KPI since Data of Ministry of Ministry of certified as the Fourth Industrial 2019) FY2018. The number of the courses certified Economy, Trade and Economy, Trade Revolution Skill Acquisition 54 courses increased from 23 in April 2018 to 54 in April Industry and Industry Courses to 100 by FY2020. 2019, achieving the prorated KPI target value at this point. 106 Double the number of the courses (Reference: April N This target has been newly set as KPI since Data from Ministry of Ministry of accredited as “Brush up Program 2019) FY2018. The number of the courses accredited Education, Culture, Education, for professional (BP)” related to AI 10 courses increased by three from seven in FY2017, Sports, Science and Culture, Sports, field, etc. by FY2023. showing good progress. Technology Science and Additional 4 courses will be accredited as BP Technology from October 1, 2019, achieving the target. 107 Increase the number of adults who Approximately B While the deadline for target achievement is Ministry of Ministry of take courses at universities, 500,000 2022 with the target achievement period of seven Education, Culture, Education, vocational schools, etc. to one (2016) years, a year has elapsed at the point of the Sports, Science and Culture, Sports, million by FY2022. “latest figure.” Although the number of adults who Technology, "School Science and take courses at universities, vocational schools, Basic Survey," Technology etc. increased from approx. 460,00010 to approx. "Improvements in 500,000, the prorated KPI target of approx. Junior College 540,000 at this point has not been achieved. In Education," "Reform view of the discussions at “Council for Designing of Educational 100-Year Life Society” etc., the Government has Content at improved concrete policy measures including Universities," Data of new development/enhancement of programs for MEXT (private senior adults since last year. The policy measures need high school surveys) to be promoted further to reflect the effects.
10 The figure at the time of formulation of the "Future Investment Strategy 2018" was approx. 490,000 persons. After that, the figure for 2015 recalculated based on the final figure was approx. 460,000.
45
Provisional Translation
108 By 2022, increase the number of 3,275 courses (as of B While the deadline for target achievement is Data of Ministry of Ministry of Health, courses eligible to receive the April 2019) 2022 with a target achievement period of five Health, Labour and Labour and specialized practical education and years, two years have passed at the point of the Welfare Welfare training benefits to 5,000. “latest figure.” Although the number of courses eligible for the benefits increased from 2,417 to 3,275, the prorated KPI target of 3,450 at this point has not been achieved. The criteria for designating as courses eligible to receive the specialized practical education and training benefits were reviewed in FY2018, and the designated range has expanded from the courses starting in April 2019. The Government will need to promote further policy measures to achieve the target. 109 By 2020, increase the percentage (Reference) 4.1% N This target has been newly set as KPI since Toyo Keizai Inc., Cabinet Office of women of directors in listed (2018) FY2018. Since the “latest figure” of the “Yakuin Shikiho” (Gender Equality companies to 10%. percentage of women of directors in listed (Corporate Bureau) companies is as of July 2018, it is difficult to Executives Quarterly evaluate the progress at this point. Handbook) 110 By 2020, increase the percentage (Reference) 11.2% N This target has been newly set as KPI since Ministry of Health, Ministry of Health, of women of managers or (2018) FY2018. Since the “latest figure” of the Labour and Welfare, Labour and equivalent in private companies to percentage of women of managers or equivalent "Basic Survey on Welfare 15%. in private companies is as of June 2018, it is Wage Structure" difficult to evaluate the progress at this point. 111 By 2020, increase the employment 76.5% (2018) A While the deadline for target achievement is Ministry of Internal Ministry of Health, rate of women aged 25 to 44 to 2020 with a target achievement period of eight Affairs and Labour and 77%. years, six years have passed at the point of the Communications, Welfare “latest figure.” The employment rate of women "Labor Force Survey" increased from 68% to 76.5%, achieving the prorated KPI target of 74.8% at this point. 112 By 2020, increase the rate of 53.1% (2015) A The “latest figure” shows that the achievement of National Institute of Ministry of Health, continued employment of women this KPI target is steadily progressing. Population and Labour and before/after the first childbirth to Social Security Welfare 55%. Research, "Annual Population and Social Security Surveys"
46
Provisional Translation
113 Provide nursery schools for - N This target has been newly set as KPI since Ministry of Health, Ministry of Health, 320,000 children by the end of FY2018. Since the “latest figure” of the number of Labour and Welfare, Labour and FY2020. required nursery schools is as of April 2018 "Counting Results of Welfare (2.944 million), it is difficult to evaluate the Plan for Accelerated progress at this point. Elimination of Children on Childcare Waiting Lists" (September 7, 2018) 114 Provide after-school childcare 297,914 children (as A The number of enrolled children increased by Ministry of Health, Ministry of Health, centers for approx. 300,000 of May 1, 2018) 297,914 from 936,452 (the first year: FY2014) to Labour and Welfare, Labour and children by the end of FY2018 and 1,234,366 (as of May 1, 2018), achieving the "Status of the Welfare those for another 300,000 children target of “provide after-school childcare centers Program for Sound by the end of FY2023. for approx. 300,000 children by the end of Upbringing of FY2018.” Children after School (after-school childcare centers)" 115 By 2020, increase the rate of men 5.14% (2017) B While the deadline for target achievement is Ministry of Health, Ministry of Health, taking childcare leave to 13%. 2020 with a target achievement period of nine Labour and Welfare, Labour and years, six years have passed at the point of the "Basic Survey of Welfare “latest figure.” Although the rate of men taking Gender Equality in childcare leave increased from 2.63% to 5.14%, Employment the prorated KPI target of 9.54% at this point has Management" not been achieved. The policy measures need to be promoted further. 116 By 2020, increase the rate of men 55.9% (2016) B This KPI target was set to achieve by 2020, and Commissioned Cabinet Office taking family care leave after the remaining time after the “latest figure” is four surveys and (Council for childbirth to 80%. years. To achieve the target, the KPI should be research (Cabinet Children and Child increased by an average of about 6% per year in Office) rearing) 2016 and afterward. The policy measures need to be promoted further. 117 By 2020, increase the employment 68.8% (2018) A While the deadline for target achievement is Ministry of Internal Ministry of Health, rate of people aged 60 to 64 to 2020 with a target achievement period of eight Affairs and Labour and 67%. years, six years have passed at the point of the Communications, Welfare “latest figure.” The employment rate of people "Labor Force Survey" aged 60 to 64 increased from 57.7% to 68.8%, already achieving the KPI target.
47
Provisional Translation
118 By 2022, increase the effective 2.05% (As of June 1, A Although this KPI was set to “2.0% by 2020” in Ministry of Health, Ministry of Health, employment rate of people with 2018) the "Japan Revitalization Strategy 2013," it was Labour and Welfare, Labour and disabilities to 2.3%. revised to “By 2022, increase the effective "Report on Welfare employment rate of people with disabilities to Employment of 2.3%” in the "Future Investment Strategy 2018" Persons with along with an increase in mandatory employment Disabilities" rate from April 2018. The prorated KPI targets for 2018 and onwards were also revised. While the deadline for target achievement is 2022 with the target achievement period of five years, the effective employment rate of people with disabilities at the point of the “latest figure” is 2.05%, achieving 2.04%, or the prorated KPI target for 2018. 119 By the end of FY2020, reduce the 12.8% (2018) B While the deadline for target achievement is the Ministry of Internal Ministry of Health, percentage of involuntary non- end of FY2020 with a target achievement period Affairs and Labour and regular employees to 10% or less. of six years, four years have passed at the point Communications, Welfare of the “latest figure.” Although the percentage of "Labor Force Survey" involuntary non-regular employees decreased from 18.1% to 12.8%, it is higher than the prorated KPI target of 12.7% at this point. The policy measures need to be promoted further. 120 By 2020, decrease the ratio of 8.6% B While the deadline for target achievement is Ministry of Health, Ministry of Health, hired persons who changed jobs to (2017) 2020 with a target achievement period of seven Labour and Welfare, Labour and 9.0%. years, four years have passed at the point of the "Survey on Welfare “latest figure.” Although the rate of job changes Employment Trends" (among general workers excluding part-time workers) decreased from 8.7% to 8.6%, the prorated KPI target of 8.9% at this point has not been achieved. The policy measures need to be promoted further. 121 By 2020, increase the employment 81.8% (2018) A While the deadline for target achievement is Ministry of Internal Ministry of Health, rate of people aged 20 to 64 to 2020 with a target achievement period of eight Affairs and Labour and 81%. years, six years have passed at the point of the Communications, Welfare “latest figure.” The employment rate of people "Labor Force Survey" aged 20 to 64 increased from 75.2% to 81.8%, already achieving the KPI target. 122 By 2020, increase the employment 80.5% (2018) A While the deadline for target achievement is Ministry of Internal Ministry of Health, rate of people aged 20 to 34 to 2020 with a target achievement period of eight Affairs and Labour and 79%. years, six years have passed at the point of the Communications, Welfare “latest figure.” The employment rate of people "Labor Force Survey" aged 20 to 34 increased from 74.4% to 80.5%, already achieving the KPI target.
48
Provisional Translation
123 By 2020, triple the percentage of 19.1% (2018) B This target has been newly set as KPI since Ministry of Internal Ministry of Internal enterprises that have introduced FY2018. While the deadline for target Affairs and Affairs and telework as compared to FY2012 achievement is 2020 with a target achievement Communications, Communications (11.5%). period of eight years, six years have passed at "Communications (Ministry of Health, the point of the “latest figure.” Although the Usage Trend Labour and percentage of enterprises that have introduced Survey" Welfare) telework increased from 11.5% to 19.1%, the prorated KPI target of 28.8% at this point has not been achieved. The policy measures need to be promoted further. 11 124 The number of foreign students’ 208,901 persons B While the time frame given to achieve this KPI Japan Student Ministry of acceptance will be doubled from (as of May 1, 2018) target is from 2013 to 2020, five years have Services Education, 140,000 to 300,000 by 2020 elapsed at the point of the “latest figure.” Organization, Culture, Sports, Although the number of foreign students studying "Survey on Science and at higher educational institutions in Japan International Technology increased from 135,519 to 208,901 (an increase Students in Japan" of approximately 73,000), the prorated KPI target at this point (approximately 117,000) has not been achieved. In the meantime, the number of foreign students currently studying at Japanese language schools for learning Japanese before entering higher educational institutions in Japan is 90,079. If this number is added, the number of foreign students comes to 298,980. To increase the number of foreign students accepted by higher educational institutions, the Government will disseminate the attractiveness of studying in Japan to foreign students in a comprehensive way and support various efforts made by universities to enhance scholarship programs and promote employment of foreign students. As well as making studying in Japan more attractive, the Government will implement comprehensive measures, e.g. intensive support to universities that are promoting internationalization thoroughly, to achieve this KPI target.
11 The number of foreign students studying at universities (incl. graduate schools), junior colleges, technical colleges, vocational schools (specialist course), and under preparatory education curriculums
49
Provisional Translation
125 Aim to recognize of 10,000 highly- 15,386 persons A The KPI target of certified 10,000 highly- skilled Ministry of Justice Ministry of skilled foreign professionals by the (December 2018) foreign professionals was set to achieve by the survey Economy, Trade end of 2020 and recognize end of 2020. However, the number of certified and Industry 20,000 highly-skilled foreign professionals reached 15,386 by the end of professionals by the end of 2022. December 2018, achieving the target ahead of schedule. The Government continues to aim to recognize 20,000 highly-skilled foreign professionals by the end of 2022.
II. Establishing the foundation for structural innovation of economy - [1] Common infrastructure building for data-driven society Policy Group: University reform producing innovation and industry-academia-government collaboration / venture support
Reference KPI Latest Figures KPI Progress Details of KPI Progress Source of KPIs Main Supervising No. Ministry/Agency 126 Aim for at least ten universities in THE112: 2 B None of the targets of these global university Refer to the Ministry of Japan ranked among the world’s THE213: 5 rankings have reached their prorated levels at footnoted information Education, top 100 universities in the next ten QS14: 5 this point. The achievement of these KPI targets (ranking etc.) in the Culture, Sports, years (ending in FY2023). Shanghai Jiao Tong will be further pursued in the future. respective “Latest Science and University15: 3 Figure” columns. Technology 127 Increase the number of patent 15,798 cases16 A Regarding the number of patent licensing by Ministry of Ministry of licensing by universities by 50% by (FY2017) universities, the KPI target by the end of FY2020 Education, Culture, Education, the end of FY2020. is 14,784, a 50% increase from the actual figure Sports, Science and Culture, Sports, in FY2013 of 9,856. The actual figure in FY2017 Technology, Science and was 15,798 cases, already achieving the KPI "Progress of Technology target. Universities, etc. in Implementing Industry-University Cooperation"
12 Times Higher Education "World University Rankings 2019" 13 Times Higher Education "World Reputation Rankings 2018" 14 QuacquareIIi Symonds Ltd "WorId University Rankings 2019" 15 "Academic Ranking of World Universities 2018" 16 The number of patents, etc., licensed by universities, etc. (national, public and private universities, including junior colleges) , national, public and private technical colleges, and inter-university research institutes (patent licensing or patent assignments including those in the phase of "Right to Receive Patents")
50
Provisional Translation
128 Increase the number of The current number B According to a survey conducted by the Ministry Ministry of Internal Cabinet Office researchers migrating between of researchers of Internal Affairs and Communications, the Affairs and (Director General different sectors in Japan by 20% migrating between actual figure in FY2013 was 10,150, and the Communications, for Science, by the end of FY2020. different sectors in actual figure in FY2017 exceeded that of FY2016 "Survey Results of Technology and Japan: 10,506 by 117, falling short of the prorated KPI target of Scientific and Innovation Policy) (FY2017) 11,310 at this point. Technological Research" 129 Increase the percentage of the 38.2% (This figure A The figure in FY2017 is 38.2%, steadily Calculations by Ministry of expense allocation needed for is FY2017 actual. increasing to the target of around 40%. The Ministry of Education, each university to drive its strategic The percentage of achievement of this KPI will be pursued further Education, Culture, Culture, Sports, reforms for functional enhancement the expense through the period of the 3rd medium-term Sports, Science and Science and (including reforms during the allocation and the objectives and plans. Technology Technology reform acceleration period in resulting operational FY2013–FY2015) and the resulting subsidies, etc., were operational subsidies, etc., to calculated by the around 40% through the period of Ministry of the 3rd medium-term objectives Education, Culture, and plans of national university Sports, Science and corporations (FY2016–FY2021). Technology.) 130 Triple the investment in 136.1 billion yen B Although the actual figure in FY2017 increased Ministry of Internal Cabinet universities, national research and (FY2017 actual) to 136.1 billion from 124.4 billion in FY2016, the Affairs and Secretariat development agencies, etc. from prorated KPI target of 179.9 billion at this point Communications, (Japan's private-sector companies by 2025. has not been achieved. The achievement of this "Survey Results of Economic KPI target will be pursued in the future through Scientific and Revitalization further promotion of new research and Technological General Bureau) development support methods and open Research" innovations, which encourages private research and development investment.
51
Provisional Translation
131 Increase the number of full-time 43,153 B This KPI is a numerical target assigned to all of Ministry of Ministry of university teachers under the age (FY2016) national, public and private universities and Education, Culture, Education, of 40 by 10% by the end of stipulated in the "5th Science and Technology Sports, Science and Culture, Sports, FY2020. Basic Plan" decided at a Cabinet meeting in Technology, Science and January 2016. This target is based on the “Statistical survey on Technology corresponding figure for FY2013 (43,763). In school teachers” FY2016, the number of such teachers decreased by 610 from FY2013, falling short of the prorated target at this point. The achievement of this KPI target will be pursued in the future through the "Leading Initiative for Excellent Young Researchers," in which excellent, young researchers are encouraged to play important roles in stable, independent posts, and through the promotion of personnel management and salary system reforms at national universities (annual salary systems, cross-appointment systems, etc.) and reflection of their progress in operational subsidies (set as common index). 132 Increase the percentage of 3.48% (FY2017 B The actual research and development Ministry of Internal Cabinet Office investments in research and actual) investment in FY2017 increased by 0.05% from Affairs and (Director General development for both the FY2016. The achievement of this KPI target will Communications, for Science, government and private sectors to be pursued in the future through the steady "Survey Results of Technology and 4% or more of GDP by FY2020. implementation of science, technology and Scientific and Innovation Policy) innovation policies according to the “5th Science Technological and Technology Basic Plan,” “Integrated Research" Innovation Strategy,” etc. and through the embodiment of the "Initiative for Expanded Government/Private Investment in Science and Technology" formulated in December 2016.
52
Provisional Translation
133 Double the number of large Number of large A The actual figures in FY2013 were 600 for 1) Ministry of Cabinet Office collaborative research programs collaborative universities and 90 for research and Education, Culture, (Director General between private-sector companies research programs development agencies. After the "Progress of Sports, Science and for Science, and universities/research and with universities Universities, etc. in Implementing Industry- Technology, Technology and development agencies by the end etc.17: 1,052 University Cooperation (FY2017)" was published "Progress of Innovation Policy) of FY2020. (FY2017) in February 2019, the number of large Universities, etc. in collaborative research programs between Implementing Number of large universities etc. and private-sector companies Industry-University collaborative increased by 134 from FY2016. Cooperation" research programs On the other hand, according to a survey 2) Cabinet Office, with research and conducted by the Cabinet Office in FY2017, the "Survey on Science development total number of large collaborative research and Technology agencies18: 233 programs between research and development Related Activities by (FY2016) agencies and private-sector companies in Incorporated FY2016 is 233. Administrative Agencies, etc." 134 Create 20 unlisted venture ― N It is especially difficult to calculate the value of To be calculated by Cabinet Office companies (unicorn) with company unlisted companies and there are different Ministry of (Director General value or market capitalizations of 1 survey results. The Government will continue to Education, Culture, for Science, billion dollars or more or listed discuss the selection of appropriate methods and Sports, Science and Technology and venture companies by 2023. sources. Technology Innovation Policy) [Reference value] • Number of unlisted venture companies: 2 (Data from “Japan Startup Finance Report 2018,” as of February 2019) • Number of listed venture companies: 5 (Data from Cabinet Office, as of April 2019) 135 Double the ratio of the amount of 0.030% (the B The current KPI is below the prorated target of Cabinet Office, Ministry of capital investment to venture average of three 0.0358% (three-year average) at this point. The "National Economic Economy, Trade companies to the nominal GDP by years from 2015 to KPI for 2017 (single year) increased 0.013 point Accounting" Venture and Industry 2022. 2017) to 0.036% compared to that of 2014. The Enterprise Center, achievement of this KPI target will continue to be "VEC YEARBOOK" pursued by promoting the building of venture ecosystem.
17 The number of large collaboration research programs (worth ten million yen or more) between private-sector companies and universities, etc. (national, public and private universities including junior colleges, national, public and private technical colleges, and inter-university research institutes) 18 The number of large collaboration research programs (worth ten million yen or more) between private-sector companies and research and development agencies
53
Provisional Translation
II. Establishing Foundations for Economic Structure Innovations [1] Shared infrastructure development for a data-operated type society Policy group/Intellectual property/Standardization strategies
Reference Main Supervising KPI Latest Figures KPI Progress Details of KPI Progress Source of KPIs No. Ministry/Agency 136 Increase the ratio of patent 15% (2017) A The figure reached 15% in 2017, from 12% in Survey by the Japan Ministry of applications submitted by SMEs to 2013, 13% in 2014, 14% in 2015 and 15% in Patent Office Economy, Trade approx. 15% by FY2019 2016, indicating a steady progress overall. and Industry 137 Increase the number of interview 836 farms (January A On-site interview examinations are held Survey by the Japan Ministry of examination cases in rural areas 31, 2018) throughout the year in response to requests by Patent Office Economy, Trade per year to 1,000 by FY2020 applicants. and Industry Starting in FY2015, the Government has been working to disseminate and implement off-site interview examinations at “traveling patent offices,” which were started by the Patent Office in FY2015 as an intellectual property support event, and to implement off-site interview examinations at the “INPIT-KANSAI office,” which opened in Osaka in July 2017. The results have been favorable. While the deadline for target achievement is FY2020 with the target achievement period of 6 years, 4 years have elapsed at the point of “latest figure.” The figure exceeded approx. 810, which would be required as of FY2018 for KPI achievement. 138 By the end of FY2020, the number 101 cases A Goal values for FY2020 have already been Data of the Ministry Ministry of of Japan’s secretariat positions at (The end of 2017) surpassed as of the end of 2017, and efforts will of Economy, Trade Economy, Trade international standardization be made to maintain this standard. and Industry and Industry organizations will be increased to more than 100.
54
Provisional Translation
139 Standardize 100 excellent 19 cases B The figure was tabulated from the number of Data of the Ministry Ministry of technologies and products of mid- (FY2018 actual) specifications standardized by SMEs and mid- of Economy, Trade Economy, Trade ranking companies, SMEs and ranking companies using the “New Market and Industry and Industry other businesses by 2020 Creation Standardization System.” At present, the cases approved for standardization by the Japanese Industrial Standards Committee comprise 37 JIS cases, two ISO cases and one IEC case. 19 of the cases have already been established as JIS standards as of FY2018. The Government will continue to further explore new cases and enhance awareness of the program to increase the number of standardization cases while steadily promoting the standardization of cases in the pre- establishment stages. 140 In the next ten years (ending in An average of 14.1 A The time required for the acquisition of right was Survey by the Japan Ministry of 2023), the time required for the months 14.6 months in FY2016, and shortened to 14.1 Patent Office Economy, Trade acquisition of right will be halved to (FY2017) months in FY2017, indicating a steady progress and Industry an average of 14 months. overall.
II. Establishing Foundations for Economic Structure Innovations [2] Dramatic regulatory and institutional reforms Policy group: Application of regulatory sandbox and conversion from vertically segmented bureaucracy/developing rules according to the rise of platformer-type businesses/principles of competitive policies
Main Supervising Reference No. KPI Latest Figures KPI Progress Details of KPI Progress Source of KPIs Ministry/Agency 134 Creating 20 listed venture ― N Calculating corporate values is especially difficult Calculations to be Cabinet Office (Aforementioned) companies or unlisted for unlisted companies. Deliberations will made by the Cabinet (Director General venture companies continue to be made on optimal methods and Office for Science, (unicorns) with corporate attribution selections with various survey results. Technology and value or aggregate market [Reference values] Innovation Policy) value of one billion dollars • Unlisted venture companies: Two companies or more by 2023 (JAPAN STARTUP FINANCE REPORT 2018 (as of February 2019) • Listed venture companies: Five companies (as of April 2019)
55
Provisional Translation
II. Establishing Foundations for Economic Structure Innovations [2] Dramatic regulatory and institutional reforms Policy group: Investment promotion/Corporate governance
Main Supervising Reference No. KPI Latest Figures KPI Progress Details of KPI Progress Source of KPIs Ministry/Agency 141 Attain standards FY2018 B This target was set to achieve by 2025, meaning Data of the Ministry Ministry of comparable to Western Japan: 4.0% that the time to achievement is nine years. of Economy, Trade Economy, Trade corporations by 2025 for (TOPIX500) FY2018 is its second year. Japan’s ROA was and Industry and Industry major corporation U.S.A.:6.2% 3.8% in FY2016, 4.0% in FY2017, and 4.0% in (TOPIX500) ROA (S&P500) 2018, still showing a divergence from Western Europe: 4.2% ROA standards. (BE500)
II. Establishing Foundations for Economic Structure Innovations [2] Dramatic regulatory and institutional reforms Policy Group: Promotion of the National Strategic Special Zones
Main Supervising Reference No. KPI Latest Figures KPI Progress Details of KPI Progress Source of KPIs Ministry/Agency 47 In the World Bank's "Ease 25th (2019) B This target was set to achieve by 2020, meaning World Bank, "Doing Cabinet (Aforementioned) of Doing Business Index," that the time to achievement is seven years. Five Business 2019" Secretariat Japan will be ranked a top- and a half years have passed as of 2017. In (Japan's three of advanced nations 2019, Japan was ranked 25th (one rank down Economic by 2020. from last year). Unfortunately, it is hard to say Revitalization that the KPI is steadily improving toward the General Bureau) achievement of its target. Further developments are needed. Various measures for improving the business environment in Japan are being taken, such as online/one-stop incorporation procedures, and IT use for judiciary proceedings. In the future, the achievement of this KPI target will be pursued through the promotion of the measures for improving the business environment in Japan, in which relevant coordinating ministries and agencies will pinpoint each of the items organized by the "Liaison Committee of Ministries and Agencies for Improving the Business Environment."
56
Provisional Translation
57 Tokyo will be ranked among No. 3 A In 2016, Tokyo reached third place in the Power Mori Memorial Cabinet (Aforementioned) the top three cities in the (2018) City Index, and continued to maintain that spot Foundation Institute Secretariat Power City Index by 2020 for 2017 and 2018 as well. for Urban Strategies, (Japan's "Global Power City Economic Index 2018" Revitalization General Bureau)
II. Establishing Foundations for Economic Structure Innovations [3]Taking in Overseas Growing Markets Policy group: Global expansion of “Society 5.0” and achieving SDGs
Main Supervising Reference No. KPI Latest Figures KPI Progress Details of KPI Progress Source of KPIs Ministry/Agency 142 Achieve infrastructure Approximately 21 B In contrast with the orders in 2010 of approx. 10 Cabinet Office, Cabinet system orders reaching trillion yen trillion yen, orders in 2016 were approx. 21 trillion statistical data of Secretariat approx. 30 trillion yen in (including income yen. This falls below the figure of 22 trillion yen Statistical figures (Assistant Chief 2020 (2010: approx. 10 from “business assuming an even increase of export every year from the "Survey of Cabinet trillion yen) investments in from FY2010 to achieve the target, and Machinery Orders” of Secretary’s Office overseas necessary measures such as the Infrastructure the Cabinet (Infrastructure infrastructures", System Export Strategy are to be further steadily Office ,etc., and Export and etc.) (2016) implemented. hearings with Economic industry groups, etc. Cooperation Team)) 143 Realize at least ten sales 95 cases A Whereas the objective is at least 10 sales pitches Reports from relevant Cabinet pitches each year to foreign (2017) each year, there were 95 visits in 2017 (30 visits ministries and Secretariat nations by the Prime by Prime Minister and 65 visits by other Cabinet agencies (Assistant Chief Minister and other ministers Ministers), of which 8 visits were accompanied by Cabinet economic missions of business leaders. Secretary’s Office (Infrastructure Export and Economic Cooperation Team)) 138 By the end of FY2020, the 101 cases A Target for FY2020 have already been surpassed Data of the Ministry Ministry of (Aforementioned) number of Japan’s (The end of 2017) as of the end of 2017, and efforts will be made to of Economy, Trade Economy, Trade secretariat positions at maintain this standard. and Industry and Industry international standardization organizations will be increased to more than 100.
57
Provisional Translation
II. Establishing Foundations for Economic Structure Innovations [3]Taking in Overseas Growing Markets Policy group: Supporting overseas business expansion of Japanese companies
Main Supervising Reference No. KPI Latest Figures KPI Progress Details of KPI Progress Source of KPIs Ministry/Agency 144 Realize the following “export 115.6 trillion yen B • Progress in achieving KPIs is evaluated by the Export value: Ministry of value and overseas (FY2016) sum of the export value and sales value by Ministry of Finance, Economy, Trade subsidiary sales” by 2020 *Breakdown: overseas subsidiaries (excluding purchase by "Trade Statistics", and Industry compared to 2011 level: Export value 12.9 local subsidiaries from Japan). Whereas the Sales value of “China, ASEAN, etc.”: Double trillion yen time limit for achieving the target is 2020 with overseas (excluding the period of 9 years, 4 years passed at the subsidiaries: Ministry purchase by local time of the “latest figure.” of Economy, Trade subsidiaries from Regarding “China, ASEAN, etc.,” the export and Industry, Japan), Overseas value for FY2011 (excluding purchase by "Survey of Overseas subsidiary sales : overseas subsidiaries from Japan) was 15.4 Business Activities" 102.6 trillion yen trillion yen, and sales value by overseas 145 Realize the following “export 23.8 trillion yen B subsidiaries was 73.9 trillion yen, totaling 89.4 Export value: Ministry of value and overseas (FY2016) trillion yen. Export value for FY2016 (excluding Ministry of Finance, Economy, Trade subsidiary sales” by 2020 *Breakdown: purchase by overseas subsidiaries from Japan) "Trade Statistics", and Industry compared to 2011 level: Export value 2.6 was 12.9 trillion yen, and sales value by Sales value of “Southwest Asia, the Middle trillion yen overseas subsidiaries was 102.6 trillion yen, overseas East, Russia/CIS, and (excluding totaling 115.6 trillion yen. Exports to China subsidiaries: Ministry Central and South America”: purchase by local decreased by about 9% from the previous of Economy, Trade Double subsidiaries from year, and exports to ASEAN countries and Industry, Japan.) , Overseas decreased by about 5%. "Survey of Overseas subsidiary sales: Regarding China, it is considered that one of Business Activities" 21.2 trillion yen the causes is the economic growth slowdown in China due to the drastic drop, etc. in private 146 Realize the following “export 2 trillion yen B investments in the first half of 2016. Export value: Ministry of value and overseas (FY2016) As for ASEAN, it is considered to have been Ministry of Finance, Economy, Trade subsidiary sales” by 2020 *Breakdown: affected by the stagnant trade due to the fact "Trade Statistics", and Industry compared to 2011 level: Export value 0.4 that resource prices remained at a low level Sales value of “African region”: Triple trillion yen and to the economic growth slowdown in overseas (excluding China. subsidiaries: Ministry purchase by local • Regarding “Southwest Asia, Middle East, of Economy, Trade subsidiaries from Russia/CIS, Central and South Americas,” the and Industry, Japan.) , Overseas export value for FY2011 (excluding purchase "Survey of Overseas subsidiary sales: by overseas subsidiaries from Japan) was 5.0 Business Activities" 1.6 trillion yen trillion yen, and sales value of overseas subsidiaries was 17.0 trillion yen, totaling 22.0 trillion yen. Export value for FY2016 (excluding purchase by overseas subsidiaries from Japan) was 2.6 trillion yen, and sales value by
58
Provisional Translation
overseas subsidiaries was 21.2 trillion yen, totaling 23.8 trillion yen. Exports to Central and South Americas increased by 5% and increased by 28% for CIS, however, Southwest Asia decreased by 2%, the Middle East decreased by 17%, and Russia decreased by 1%. It is considered that one of the factors may be the low level of resource prices, as well as the sluggish economy in emerging countries due to the impact of the US interest rate hike, etc. • Regarding “Africa” the export value for FY2011 (excluding purchase by overseas subsidiaries from Japan) was 0.4 trillion yen, and sales value by overseas subsidiaries was 1.6 trillion yen, totaling 2.0 trillion yen. Export value for FY2016 (excluding purchase by overseas subsidiaries from Japan) was 0.4 trillion yen, and sales value by overseas subsidiaries was 1.6 trillion yen, totaling 2.0 trillion yen. It was down by 8% from the previous fiscal year for this region. Due to various concerns such as Japanese companies cannot find products that meet local needs and income, cannot understand local commercial system and laws, and safety risks, Japanese companies are not expanding in Africa.
Economic size, economic growth and exogenous political and natural disaster risks differ depending on regions and countries, and it is important to evaluate progresses of global outreach made by Japanese companies by making comparisons of economic development of each region and country and expansions of foreign companies into each country, in addition to figures. Based on this standpoint, the Government will continue monitoring the development of export value and overseas subsidiary sales by Japanese companies.
59
Provisional Translation
19 147 Raise FTA ratio to 70% by 51.6% B This KPI measures the ratio of the amount of Ministry of Finance Cabinet 2018 (based on 2018 trade with countries with which EPAs & FTAs are "Trade Statistics" Secretariat trade value) in effect or signed in proportion to Japan’s total (Office of trade. With regard to prmoting economic Assistant Chief partnerships, TPP11 was signed by 11 countries Cabinet Secretary on March 8, 2018, and entered into force on (foreign affairs)) December 30, 2018. Furthermore, Japan-EU EPA was signed on July 17 of the same year, and entered into force on February 1, 2019. Additionally, the Government is proceeding vigorously negotiations towards early conclusions of EPAs & FTAs currently under negotiation, including RCEP, etc. 148 Sign and/or achieve entry into 76 B The Japan-Armenia Investment Agreement was Survey by the Ministry of force of investment-related countries/regions signed in February 2018, the Japan-UAE Investment Policy Foreign Affairs agreements (investment Investment Agreement in April of the same year, Division, Ministry of agreements and economic the Japan-Jordan Investment Agreement in Foreign Affairs partnership agreements with November of the same year, and the Japan- investment chapters) Argentina Investment Agreement was also signed covering 100 in December of the same year. Furthermore, countries/regions by 2020. other official investment agreement negotiations started in the same year with Ethiopia, Tadzhikstan, and Paraguay, also with Azerbaijan in February 2019. If all these investment agreements enter into force, 94 countries/regions will be covered. The Government aims to achieve this KPI target by steadily advancing these investment-related agreements and by expanding new countries for negotiations.
19 The ratio of the amount of trade with countries with which EPAs & FTAs are in effect EPA/FTAor signed as of December 2018
60
Provisional Translation
149 Double the value of export 20.6 trillion yen A While the deadline for target achievement is 2020 Export value: Ministry of value and overseas (FY2016) with the target achievement period of 10 years, 6 Ministry of Economy, Economy, Trade subsidiary sales by SMEs by years have elapsed at the point of the “latest Trade and Industry, and Industry 2020 compared with the level figure.” The export value of SMEs (medium "General Survey of of 2010. enterprises are defined as those with capital of Business Activities", one billion yen or less) increased from 12.8 trillion Sales value of yen to 20.6 trillion yen in six years from FY2010 overseas to FY2016, going above the figure at the moment subsidiaries: Ministry of 20.48 trillion yen assuming an even increase of of Economy, Trade export value and subsidiary sales every year from and Industry, FY2010 to achieve the target. "Survey of Overseas Business Activities" 124 The number of foreign 208,901 B While the time frame given to achieve this KPI Japan Student Ministry of (Aforementioned) students’ acceptance will be (as of May 1, 2018) target is from 2013 to 2020, five years have Services Education, doubled from 140,000 to elapsed at the point of the “latest figure.” Organization, Culture, Sports, 300,000 by 2020. Although the number of foreign students studying "Survey on Science and at higher educational institutions in Japan International Technology increased from 135,519 to 208,901 (an increase Students in Japan" of approximately 73,000), the prorated KPI target at this point (approximately 117,000) has not been achieved. In the meantime, the number of foreign students currently studying at Japanese language schools for learning Japanese before entering higher educational institutions in Japan is 90,079. If this number is added, the number of foreign students comes to 298,980. To increase the number of foreign students accepted by higher educational institutions, the Government will disseminate the attractiveness of studying in Japan to foreign students in a comprehensive way and support various efforts made by universities to enhance scholarship programs and promote employment of foreign students. As well as making studying in Japan more attractive, the Government will implement comprehensive measures, e.g. intensive support to universities that are promoting internationalization thoroughly, to achieve this KPI target. 125 Aim to recognize 10,000 15,386 A The KPI target of certified 10,000 highly- skilled Ministry of Justice Ministry of (Aforementioned) highly- skilled foreign (December 2018) foreign professionals was set to achieve by the survey Economy, Trade professionals by the end of end of 2020. However, the number of certified and Industry 2020 and recognize 20,000 professionals reached 15,386 by the end of highly-skilled foreign December 2018, achieving the target ahead of professionals by the end of schedule. The Government continues to aim to
61
Provisional Translation
2022. recognize 20,000 highly-skilled foreign professionals by the end of 2022.
II. Establishing Foundations for Economic Structure Innovations [3]Taking in Overseas Growing Markets Policy group: Measures to promote the appeal of Japan
Reference Main Supervising KPI Latest Figures KPI Progress Details of KPI Progress Source of KPIs No. Ministry/Agency 150 Double the inward foreign direct 30.7 trillion yen B Comparison cannot be made for the stock based Ministry of Cabinet Office investment (FDI) stocks to 35 trillion (The end of 2018) KPI indicator between the years prior to 2013 Finance/Bank of yen by 2020 (the end of 2012: 19.2 and after 2014 due to revisions of statistical Japan trillion yen) standards. The inward foreign direct investment Outstanding external stocks was 31.2 trillion yen at the end of 2018 assets and liabilities assuming an even increase of investment stocks in “Balance of since statistically comparable 2014 to the target Payments” of 35 trillion yen in 2020. The actual balance was 30.7 trillion yen at the end of 2018, falling behind the prorated KPI at the same point. While 24 local governments have been determined as targets for the “Support Program for Regional Foreign Direct Investment in Japan”, the Government is reinforcing the regional efforts through formulation of strategies to attract foreign investments taking advantage of local characteristics and supports for the activities inviting overseas companies by the Government and JETRO. The Government will continue to work on measures to strengthen inward direct investment. 151 Increase overseas sales of 44.45 billion yen A While the deadline for target achievement is Ministry of Internal Ministry of broadcast contents to 50 billion yen (FY2017) FY2020 with the target achievement period of 5 Affairs and Internal Affairs by FY2020 years, 2 years have elapsed at the point of the Communications, and “latest figure.” The overseas market sales of "Analysis on the Communications broadcast contents increased from 28.85 billion current situation of yen to 44.45 billion yen during the two years from overseas sales of FY2015 to FY2017, exceeding 37.31 billion yen broadcast contents" which was the figure at the moment assuming an even ratio of annual increase for every year. 152 Aim for increasing rate of Japanese Increase of 198.6% A The increase rate in 2012–2018 exceeded that of Ministry of Finance Cabinet Office, alcoholic beverages export to (2012 to 2018) agricultural, forestry and fishery products and Trade Statistics (Secretariat of exceed that of 61.8 billion yen foods (an increase of 101.6%). Intellectual agricultural/forestry/fishery products (2018) Property Strategy and food export by 2020 Promotion)
62
Provisional Translation
63