Insights

Prime Minister Fumio Kishida, on a visit to the US, spoke to investors in New York on the afternoon of 21st (Before dawn on 22nd (Japan time)). The person announced that the person would establish an “asset management special zone” to encourage the entry of foreign companies to strengthen Japan‘s asset management industry. It will create an environment that attracts foreigners, including the ability to complete administrative correspondence in English.

The “Economic Club of New York,” where the Prime Minister will speak, is a membership organization founded in 1907 that brings together the leaders of the US business community. This will be the first time a Japanese prime minister has spoken at this event.

The Prime Minister spoke of measures to realize the government’s vision of “Asset Management Nation.” The person appealed for a stance to develop the asset management business by making the most of Japan‘s more than 2,000 trillion yen in personal financial assets.

The person emphasized the asset management business as “We will carry out the structural reforms that have been pointed out as being overdue.” The person explained, “The Japanese asset management sector manages 800 trillion yen, a 1.5-fold jump over the current three-year period” and the person’s intention to change the unique Japanese business practices and barriers to entry.

The pillar is the creation of a special zone for asset management. The high barrier of Japanese language has been pointed out in inviting excellent fund managers from overseas. The person explained the remedy, “We will reform regulations so that administrative responses can be completed only in English, and we will focus on improving the business and living environments.”

The person stated “Deregulation to allow for outsourcing of back-office operations” so that the asset management firm can focus on its core business.

The company intends to support new entrant operators by developing “The Operational Funding Assistance Program (EMP)” based on examples from the US, France, and other countries. It will set up an “Asset Management Forum,” mainly in the US and Japan, to reflect investor views in policy.

The Prime Minister referred to corporate governance in Japanese companies, “Making Reforms More Effective.” It encourages the formulation and execution of plans with an awareness of Japan‘s PBR (price-book value ratio), which has been said to be lower than that of the US and Europe.

The government will work out a series of deregulation measures by the end of the year, and draw up arrangements to submit the necessary bills to the ordinary Diet session in 2024.

After returning to Japan on 22nd, the prime minister plans to instruct the person’s cabinet ministers on the pillars of the economic measures at the beginning of next week.

In the person’s speech, the person pointed out that the person would put together measures focusing on two points: “structural wage increases” and “Public-Private Investment for Enhanced Sustainability.” “I urge them to take a closer look at the real strengths of the Japanese economy and their plans for the future, and I urge them to invest in Japan” was requested for the investor.

After the person’s presentation, the person answered questions from attendees. Nobel Prize winner in economics, Joseph Stiglitz, US professor of Columbia University, and about 200 executives from the financial world attended the event.
In an effort to attract investment to Japan, the Prime Minister has proposed the expansion of the Nippon Individual Savings Account (NISA) and its permanent establishment in 2022 in speeches in the financial district of City of London and on the New York Stock Exchange.