Japan Association of New Economy
2023 Representative Director New Year’s remarks
On behalf of the Japan Association of New Economy, I would like to extend my greetings for the New Year.
Last year, the Japan Association of New Economy celebrated its 10th anniversary. I would like to once again express my gratitude to all the member companies who have supported us over the past 10 years, and to all the people involved in various fields who have given us tremendous support.
After 10 years, the Japan Association of New Economy has become even more active. The policy themes we handle are centered on digital policies, but also cover a wide range of topics such as carbon neutrality and economic security. I actively submit opinions to the government from the perspective of whether appropriate policies are being taken with Japan’s future in mind. In terms of member
activities, in addition to seminars such as compulsory lectures for managers, we also hold member networking events for networking and information exchange among managers. Although the restrictions of the new coronavirus are still not zero, offline events such as
participation in art events can now be held.
Turning to the Japanese economy, unfortunately, the economy as a whole continues to be stagnant. Low growth and negative growth have continued both before and after the corona crisis, and the weakness of domestic demand is particularly noticeable at the moment, such as the delayed recovery of capital investment. Import prices are rising due to rising international commodity prices and the weaker yen, and cost-push inflation is a drag on economic recovery. It is two years away from 2025, when the baby boomers will reach the age of 75 or older.
We believe that what Japan needs in this harsh environment is a drastic change in its economic structure from one that relies on the government to one led by the private sector. We call “JX” (Japan Transformation) to “fundamentally change Japan” including the transformation of the economic structure and even the social structure. In order to realize JX, we will foster new industries centered on digital and green technologies, and at the same time, under the principle of “Let the private sector do what the private sector can do”, we will help the private sector to achieve economic growth and solve social issues through tax reductions. We believe that it is necessary to create an environment in which investment can be made proactively.
The Japanese economy after the bursting of the bubble economy proves that even if the spread of inefficient public spending can increase temporary demand, it will not lead to sustainable growth. As a result of this spread, a large amount of outstanding government bonds has accumulated, and interest rates have been forced to be artificially low. In the short term, we need to “reduce tax rates” and “normalize from COVID-19”, and in the medium to long term, “increase the productivity of the Japanese economy.” There is an urgent need to radically improve
The reduction of tax rates is a factor for economic growth, that is, the basis for efforts to expand domestic investment and revitalize the economy. Conversely, without a reduction in tax rates, domestic investment will not expand, and it will be difficult to achieve high economic growth. A reduction in the corporate tax rate will contribute not only to increased investment and consumption, but also to the promotion of inward investment from overseas. In fact, even in the United States, there is a movement of companies and population to move from California, which has high taxes, to Texas, which has low taxes, and Texas’s population growth rate is the highest in the United States.
Regarding the response to the new coronavirus, the position of the infectious disease law should be lowered from the 2nd category to the 5th category as soon as possible. If you are classified as Category 5, basically, the national and local governments will no longer recommend hospitalization, restrict employment, or ask you to refrain from going out, and examination and treatment costs will not be covered by public funds. Of course, the effect of eliminating restrictions on employment due to infection and reducing the burden of public expenditure is the biggest economic effect, but the announcement effect that the new coronavirus will finally become a “normal disease” like the seasonal flu. is.
In Japan, it is still recommended to wear a mask indoors, and it is thought to cast a dark shadow on the consumer sentiment of the people. On the other hand, in the United States, the obligation to wear masks was abolished in all states in March last year, and in the United Kingdom, it was abolished in indoor public facilities in January last year. As the fight against the coronavirus enters its fourth year, it is obvious that Japan will fall behind the rest of the world economically, and we must avoid such a situation.
In order to transform the economic structure to a private-sector-led one in the medium to long term, it is necessary to return to the starting point of “innovation,” “entrepreneurship,” and
“globalization,” which the Association of New Economy has advocated since the start of its activities, and to “improve productivity drastically.” to raise” is required. Specifically, to promote DX (digital transformation) in all industries and government offices. Fundamentally strengthen entrepreneurship education, remove obstacles to the growth of startups one by one, and nurture the next unicorn. Actively accepting immigrants is extremely rational from the perspective of responding to population decline, as well as the diversity brought about by foreigners serves as a source of innovation (promoting new combinations).
Last year, the Japan Association of New Economy made policy proposals on the crypto-asset tax system so as not to kill the seeds of the next innovation, and appealed for a “startup policy request” to increase as many entrepreneurs as possible. Furthermore, at a government meeting, he explained the “requests for the acceptance and active participation of foreign human resources” and stressed the importance of
strengthening the acceptance of foreign human resources from the perspective of promoting innovation and responding to population decline. rice field.
In order for the Japanese economy to compete with the rest of the world, I feel that the role required of the Japan Association of New Economy, a “startup of economic organizations,” is expanding day by day. We will do our utmost to overcome the old evils that are hindering the growth of the Japanese economy, and to make even greater strides forward.
January 1, 2023
Japan Association of New Economy
Representative Director Hiroshi Mikitani
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Japan Association of New Economy