Japan Eyes 370 T. Yen in Strategic Investments by FY 2040

Tokyo, June 24 (Jiji Press)–The Japanese government on Wednesday projected that public-private investments in 17 strategic fields under Prime Minister Sanae Takaichi’s “responsible and proactive” fiscal policy will exceed 370 trillion yen by fiscal 2040. The projection was presented at the day’s joint meeting of the Council on Economic and Fiscal Policy and the Council for Japan’s Growth Strategy, both headed by the prime minister. The government expects these investments to stimulate private investments in artificial intelligence, semiconductors, shipbuilding, defense and other sectors, thereby helping to create a strong economy. During the meeting, Takaichi pointed out that Japan is not falling behind other countries in technological innovation and labor productivity. “We’ll eliminate excessive austerity and the lack of investments for the future, and make every effort to support efforts to acquire new market shares,” she stressed. The government has specified 62 products and technologies in the 17 strategic fields as investment priorities. It eyes 10.5 trillion yen for developing physical AI for moving robots and 68 trillion yen for developing and mass-producing semiconductors needed for the high-speed processing of large volumes of data. The government aims for Japan to account for over 30 pct of the global AI robot market by 2040 to compete with the United States and China. The size and scope of strategic investments may increase in the future. Liquefied natural gas carriers, of which production has declined in Japan, were newly added to the list this time. The government set a goal of building three to five such vessels in and after 2035. In the defense field, 4.3 trillion yen is expected to be spent on research and development, as well as procurement, to utilize promising technologies from universities and private-sector firms for the country’s defense. Meanwhile, 20.8 trillion yen will be used to develop drugs using biotechnology and increase drug production capacity. The government believes that, thanks to the effects of public-private investments, domestic private capital investment could exceed 230 trillion yen in fiscal 2040, surpassing its target of 200 trillion yen per year. The country’s nominal gross domestic product is expected to reach about 1,070 trillion yen, and real GDP growth is projected to exceed 1.5 pct. END [Copyright The Jiji Press, Ltd.]