Japan PM vows to set up special zones to boost foreign investment
NEW YORK (Kyodo) -- Prime Minister Fumio Kishida pledged Thursday to set up special economic zones to boost foreign investment in Japan, as domestic demand in the world's third-biggest economy has stagnated amid a declining population.
"I would urge you to evaluate what we are doing in my country, look at the underlying strength of our economy and our plans for the future and then invest in Japan," Kishida said at the Economic Club of New York, a group of top business executives and bankers.
Ideas:
Foreign investment zones, for example in South Korea, have had investment zones for many years. Do foreign investment zones actually bring in or foreign companies and or investors.
Japan is competing with maybe Shanghai, Singapore, South Korea, and maybe Hong Kong for foreign investors.
Maybe countries with foreign investment zones or areas provide significant tax breaks as a way to induce investors to come to their country and do business.
Article:
Kishida's government is likely to map out a policy package by the end of this year to revise laws to relax regulations on foreign investment, address Japan's unique business practices and ease barriers to entry into the nation's market, ruling lawmakers said.
In his speech in New York, given in English, Kishida said the assets under management in Japan have surged by 50 percent over the past three years, now reaching 800 trillion yen ($5.4 trillion).
Ideas:
Government regulations, for many years, have been a major hurdle to enter into and invest in Japan, and many foreign investors say Japan is not a foreign investment friendly country such as Singapore.
Japan's unique business practices also might be foreign or difficult for many foreign companies and or investors in Japan.
Japan business practices may be a major challenge for some companies and some investors and Japanese business practices are not the same as western business practices.
Japan now, to be fair, says it says to change many things to increase foreign investors or companies in Japan, as Japan knows it competing against many Asia destinations for investors.
Article:
"To encourage new entry from overseas, we will establish special business zones tailored specifically for asset management business where administrative procedure can be completed solely in English," Kishida said.
Kishida, who became prime minister in October 2021, has expressed eagerness to take necessary measures to grapple with the negative effects of the country's falling birthrate and aging population on the broader economy.
Ideas:
Special business zones are been use for a long time in South Korea, but not in Japan yet. Have they helped or worked in South Korea, yes, no maybe as to did it really get a lot of companies.
While the falling birthrate is a major challenge but maybe foreign investment zones might not be the answer to increase the economic growth.
What Japan needs to do is increase foreigners into Japan as a way to increase economic growth.
Article:
Japan's population is expected to fall to 87 million by 2070, shrinking 30 percent from 2020, a government estimate showed earlier this year.
Emphasizing the importance of Japan's revival in the international asset management sector to shore up the economy, the premier told an audience at the City of London, or London's primary financial district, in May last year, "Invest in Kishida."
Ideas:
For many years Japan has known about its decreasing birthrate about refuses to do anything significant to increase the population.
For example, again, if Japan would try to increase immigration of talented foreigners and find ways to increase whatever is needed.
Its going to take more than just the international asset management sector, and its going to take more women working, more international workers as a way to increase economic growth.
Have a nice day and be safe!
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