June 8, 2022
Japan Association of New Economy
Representative Director
Mickey Mikitani

The following statement from The Japan Association of New Economy (JANE) Representative Director Mickey Mikitani is in response to Cabinet decisions including “Basic Policy for Economic and Fiscal Management and Reform 2022”, “Grand Design and Implementation of the New Form of Capitalism “, and “Priority Policy Program for Realizing Digital Society (Revised)”.

1. JANE highly values the inclusion in the policy framework of many kinds of initiatives that we have been advocating since JANE was launched in June 2012, such as investment in people, new technologies and startups, creation of a national strategy for new ideas such as Web3.0, the need for diversity, the promotion of venture philanthropy and digital regulatory reform. It is now essential that these initiatives are implemented and made concrete, and to that end, significant structural reform is also essential, including regulatory, tax and accounting reform.

   　

2. This Cabinet decision calls for an upgraded version of capitalism, and JANE advocates “Japan Transformation (JX)” as the strategy for the future of Japan. To promote JX, the following six points should be carefully considered as basic concepts for government policy.
   1) Give more authority to the private sector.The private sector should play the main role in creating prosperity for Japan. The role of the government should be shaped according to this core principle.

   2) Tax rates that are extraordinarily high by global standards must be reduced.Countries with high taxes will inevitably decline. Aim for a small government and reduce taxes such as income tax, inheritance tax and corporate tax. From the point of view of corporate management and increased investment, regulatory costs and administrative costs should also be also minimized.

   3) Disruption is crucial to the digital economy.With the progression of digitalization, everything is inevitably more fluid.

   4) Promote immigration.Participate more in the establishment of a global system and promote innovation by opening the country’s borders. Promote immigration, as there will be no future for a country with a declining population.

   5) Comply with global standardsThe Tokyo Stock Exchange (TSE) should comply with global standards, making it possible to utilize class stocks. Regulation on SPACs should also be lifted.

   6) Comprehensive reform, not partial reform.All of these issues are interrelated in complex ways, so attempting to tackle them individually will only have the adverse effect of causing painful difficulties.

   　

3. As a business organization, we will work together with the government to contribute to the development of the Japanese economy and society by devoting ourselves to solving social issues through our core businesses.