Japanese Prime Minister Shinzo Abe unveiled a fresh round of reforms Tuesday, in the latest bid to cement a fragile recovery, his second attempt to fire the "third arrow" of his economic action plan.
In a package that has already been heavily trailed, he promised to slash Japan's corporate tax rate -- one of the world's highest at up to 36 percent -- and tackle sectors long sheltered by the state.
"The government decided today to make our growth strategy more powerful in a bold manner. The key is to revitalise local communities," Abe told reporters in a press conference that was televised live.
"There is neither a taboo nor a sanctuary in the Abe government's growth strategy. We will resolutely challenge rock-hard regulations and institutions.
"The Abe cabinet will break all barriers so that we can realise the potential of the Japanese economy," Abe said.
The plan is Abe's latest stab at making good on the final tranche of his growth strategy, dubbed "Abenomics", which started in early 2013 with a huge public spending spree and an unprecedented monetary easing campaign by the Bank of Japan.
That gave the economy a shot in the arm and set off a stock market rally as firms' profitability grew on the back of a sharply weaker yen.
But a growing chorus over recent months has called for action, saying as the sugar rush of cheap money wears off, the lack of real structural reform could prove problematic for an economy that has stumbled through more than two decades of disappointment.
"A virtuous circle of the economy is emerging as corporate profits are leading to expansion of employment and rises in wages," Abe said.
"Abenomics takes it upon itself to continue expanding the virtuous cycle."
The plan calls for a review of the nation's huge public pension fund portfolio, worth a staggering $1.26 trillion, urging it to make more aggressive investments in foreign and domestic stock markets.
'Rigid labour market'
The hope, say commentators, is that this massive fund will lead by example and encourage other funds to plough into stocks and to demand more and better quality returns from the companies they invest in.
Among other initiatives are a scheme to promote clean energy, robotic technology and the tourism industries, while establishing special economic zones.
Japan's rigid labour market is to be tinkered with to loosen permanent residency rules for some manual workers and promote managerial jobs for women.
However, the relatively large-scale immigration seen in other wealthy countries is a no-go; an influx of foreigners is anathema to Japan's largely conservative public and initial talk of a huge policy change has been toned down.
Abe is also calling for more childcare support, partially as a way of encouraging women to have more babies, as the body politic grapples with a shrinking and ageing society.
His much-touted first attempt at a package of structural reforms fell flat last summer, with critics saying they were too timid and not doing enough to take on Japan's many vested interests.
This year, the premier also faces a delicate balancing act as ordinary citizens struggle with lacklustre wage growth and rising prices for everyday goods -- the result of Tokyo's bid to stoke long-absent inflation as well as April's consumption tax hike to 8.0 percent from 5.0 percent.
AFP
Tue Jun 24 2014
ABE: The government decided today to make our growth strategy more powerful in a bold manner. -File Photo
Buku Syed Saddiq singkap ada gerakan cadang lantik Azmin Ali jadi PM pada 2018
Beliau yang pada ketika itu pegawai kepada Dr Mahathir cuba menjadi orang tengah untuk mendamaikan kedua-dua pemimpin tersebut.
Piala Belia: Melaka FA, Sri Pahang FC berdamai
Pihak Persatuan Bola Sepak Melaka dan pengurus pasukan telah dipanggil polis dan sehingga kini, tiada sebarang laporan polis dibuat.
Pesawat Garuda Indonesia lakukan pendaratan cemas selepas enjin terbakar
Pesawat yang membawa 450 penumpang dan 18 anak kapal termasuk jemaah haji baru saja berlepas dari Makassar menuju Arab Saudi.
Pengguna iOS 17.5 dapati foto lama dipadam muncul kembali
Mereka terkejut melihat gambar yang telah bertahun dipadam, tiba-tiba muncul sebagai gambar yang baru dimuat naik ke iCloud.
#AWANIByte: Huawei perkenal inovasi terbaharunya WATCH FIT 3 dan MateBook X Pro
Huawei dengan bangga memperkenalkan dua produk revolusioner iaitu HUAWEI WATCH FIT 3 dan HUAWEI MateBook X Pro 2024, menandakan lembaran baharu dalam gabungan fesyen dan teknologi dalam pasaran boleh pakai.
Enam lelaki termasuk empat warga asing ditahan miliki syabu
Enam lelaki termasuk empat warga asing ditahan bersama 5,203 gram dadah jenis syabu di Serembah, Ahad lepas.
Konsortium umum tawaran bersyarat bagi MAHB
Gateway Development Alliance dan para pemegang sahamnya (secara bersama dikenali sebagai Konsortium) mengumumkan tawaran sukarela prasyarat bagi mengambil alih semua saham dalam Malaysia Airports Holdings Berhad (MAHB) yang belum dimiliki Konsortium itu, pada harga tawaran sebanyak RM11.00 bagi setiap saham.
PM Singapura baharu: Menilai dinamik hubungan dua hala
Era kepimpinan di Malaysia dan Singapura sudah berubah. Bagaimana ini mencerminkan hubungan dinamik dua hala yang amat memerlukan satu sama lain? Dr. Ahmad martadha berkongsi pandangan.
Prestasi Bursa Malaysia setakat 16 Mei 2024
Ketua Penyelidikan Pelaburan UOB Kay Hian Wealth Advisors Mohd Sedek Jantan berkata data Indeks Harga Pengguna (IHP) AS yang dijadual diumumkan lewat Rabu adalah penting untuk membuat keputusan mengenai kadar faedah Rizab Persekutuan (Fed) pada masa akan datang.
Prestasi ringgit setakat 16 Mei 2024
Pada penutup dagangan setakat 14 Mei 2024, ringgit diniagakan rendah berbanding sekumpulan mata wang utama.