The strategy document is an eye opener for companies who want to invest in Japan.
On June 9, Japan aims to finalise policies regarding the drone deliveries in the country from 2020 as well as commercialisation of self-driving trucks by 2022, as per two sources familiar with the matter at hand.
The move could inject a new breath of life into its corporate sector.
The Japanese government also plans on encouraging increased usage of artificial intelligence and Big Data for medical diagnosis, said several government sources on the condition of anonymity since the plans have yet to be finalised.
“The priorities are improving life expectancy, revolutionizing transport, modernizing supply chains, improving infrastructure and using financial technology,” said a source.
Significant, a source revealed that the Japanese government will ease regulations for some companies, using what is known as a regulatory sandbox to allow companies to test new technologies right away, free of regulatory burden.
This development gains significance since Japan is suffering from a shrinking of workforce and its companies have started to scale back their operations.
Earlier in April, Yamato Holdings Co, Japan’s biggest parcel shipper, stunned consumers when it disclosed that it would cut delivery volumes and hike prices due to a lack of workforce.
Japan is also evaluating financial technology as a source of future growth, as per a source, which has so far lagged in the country in comparison to overseas levels.
Upcoming financial technology could transform processes such as asset management, investment banking, payments and lending operations.
In a rare step the strategy document, which typically does not reveal Japan’s strategies on its defence, has called for an effective military deterrence, in line with Japan’s military alliance with the U.S., against the backdrop of North Korea’s nuclear missile program.
As per the U.S. Department of Defence, Japan currently is home to nearly 54,000 U.S. military personnel.