(Bloomberg) — Japan’s new capitalism panel pushed for more investment in digital, green and chip technology, more support for startups and more efforts to improve wealth distribution, it said in a report released ahead of a stimulus package.
In a 21-page document that came out Monday, the panel pointed to some of the themes likely to feature in the package of economic measures promised by Prime Minister Fumio Kishida later this month.
The panel’s recommendations and the coming stimulus will indicate the direction of Kishida’s administration and show how aggressively he wants to spend to achieve those goals.
After another likely contraction of the economy over the summer, Kishida needs to deliver measures that can effectively shore up the recovery and support for his government ahead of further elections next summer.
While still lacking specific details, the report called for a rethink of initial public offerings, consideration of special purpose acquisition companies to help startups get funding, and support for a switch to green energy including help for the car industry.
Building battery supplies for electric vehicles and production facilities for semiconductors also warrant close attention from the perspective of economic security, the report said.
To ensure fairer pay, the panel recommended larger tax breaks for companies raising wages and additional support for smaller and mid-size companies to boost compensation even if they are technically in the red.
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