Improve business environment to drive inward FDI
- Building a truly business-friendly environment to achieve sustainable growth
- Welcoming highly skilled foreign professionals from all around the world
Building a truly business-friendly environment to stimulate growth requires drastic reforms in Japan’s corporate culture.
This “growth” is meaningless without its sustainability. Thus it is crucial to continue reforms in corporate governance to urge companies to improve dialogue with investors.
Building a truly business-friendly environment to achieve sustainable growth
Strengthen investor confidence through transparency
- Drew up a Corporate Governance Code1, to promote transparent, fair, timely and decisive decision-making by listed companies
- Formulated a Stewardship Code2, to promote constructive engagement, or purposeful dialogue between institutional investors and investee companies
- Eliminate overlaps in the disclosure rules and expedite provision of information (relevant documents) to shareholders by electronic transfer
- Corporate Governance Code
- Applied to more than 2,000 companies
- Percentage of listed companies with two or more independent outside directors rose from 17% to88%
- Stewardship Code
- Accepted by more than 200 institutional investors
- 1Source: “Japan’s Corporate Governance Code” Tokyo Stock Exchange; June 1, 2015
- 2Source: “Principles for Responsible Institutional Investors” The Council of Experts on the Stewardship Code; May 29, 2017
CORPORATE TAX REDUCTION
Reform corporate tax to be growth-oriented
Reduce corporate tax rate below 30% mark in 2016Source: Ministry of Finance Japan
- Effective corporate tax burden rate to be reduced to as low as 25%, for companies proactively engaging in wage increases and capital investment
- Companies also proactively engaging in advanced IT investment will be eligible for further tax reductions, bringing the effective corporate tax burden rate down to as low as 20%
- Annual corporate tax revenue increased by close to 7 trillion yen compared to the previous administration, despite the reduced corporate tax rate
Welcoming highly skilled foreign professionals from all around the world
More information: https://www.japan.go.jp/livinginjapan
- Conduct “fast track visa screenings” for highly skilled professionals within 10 days
- Expedite permanent residency after a year of arriving, under certain conditions
- “Japanese Green Card for Highly Skilled Foreign Professionals”
- Increase bilingual healthcare professionals and educational support
The number of highly-skilled foreign professionals increased11
(As of September 2017)
Source: Ministry of Justice,
Ministry of Economy, Trade and Industry:
“Number of Recognitions of Highly Skilled Professionals”
More information: https://www.jetro.go.jp/en/invest/
- Optimize administration process
- Reduce administrative costs by 20% by 2020 in areas that are considered to have the heaviest burdens such as “business approval and licenses” and “social insurance”
- Consolidate scattered registration outlets for different documents into one convenient outlet (e.g.) Tokyo One-Stop Business Establishment Center
- Host FDI seminars to disseminate FDI information
- Support the matching of foreign companies with domestic SMEs by utilizing the J-GoodTech website: https://jgoodtech.jp/pub/en/
cases completed at the Tokyo One-Stop Business Establishment Center (as of February 2018)
- Net amount of inward foreign direct investment (FDI) in 2016 marked a record high of 27.8 trillion yen
SHORTER TRAVEL TIME TO DOWNTOWN TOKYO
In addition to Narita International Airport, Tokyo is served by the more centrally located Haneda International Airport. Providing domestic connections to 48 cities, Haneda is now offering a wider choice of international routes.
ACCOMMODATION FOR LESS
The Hotels.com Hotel Price Index (2016) shows that Tokyo has a lower average price point compared to other iconic cities
2016 USD yearly average currency exchange rate:
1GBP = 1.28USD, 1EUR = 1.13USD,
1JPY = 0.0089USD
SHOP FOR LESS
Japan is not that expensive anymore. In fact, The Economist’s Big Mac Index—a broad indicator of price points—ranks Japan 36th out of 57 countries. (January 2018) (USD)
TOP DESTINATION FOR FINE DINING
According to The Michelin Guide (2017), Tokyo has the most Michelin-starred restaurants globally.
Invest in Japan, the Land of Rising Opportunities.
Japan is quickly transforming to become the most business-friendly nation in the world.
Japan welcomes your investment.
Thanks to Abenomics, the wolrd’s third largest economy keeps booming by increasing productivity and embracing highly skilled, diverse human resources.
Backed by regulatory reforms, R&D activities are accelerating innovation, and creating new business opportunities e.g. in digital and medical/healthcare industries.
Quality Business Environment
Sophisticated transportation network, expanding FTAs and growth-oriented policy measures are creating favorable environment for global business.