The government decided Tuesday to launch a dialogue with business leaders, urging them to boost capital investment as Prime Minister Shinzo Abe’s priorities swing from security back to the economy.
The dialogue will take place on a regular basis between Abe, his ministers and business leaders. Through it, the government also plans to request wage increases as it pursues economic recovery led by private-sector investment.
The move follows Abe’s pledge to expand nominal gross domestic product to ¥600 trillion by around 2020 from ¥490 trillion under his “Abenomics” policy package, which is now in its second phase and comprises three new measures.
Abe hopes to secure economic growth after months of waning public support centered on disapproval of contentious security legislation forced through the Diet.
The government intends to use the upcoming meetings to discuss with business leaders such policy measures as deregulation and corporate tax rate cuts in return for businesses ceasing their profit hoarding and investing it instead.
The discussion is also likely to encompass ways to nurture cutting-edge technology, including robotics and information technology.
Later Tuesday, the prime minister will meet with some of the country’s leading corporate executives, such as the chairman of the Japan Business Federation, also known as Keidanren, to ask for their cooperation.