- Japan is looking to attract ¥100 trillion ($750 billion) in direct foreign investment by 2030, alongside an influx of foreign talent.
- The country wants to increase its reputation as a center for manufacturing and research.
- Japan will invest in critical sectors such as semiconductors, digitalisation and artificial health care.
By 2030, Japan plans to draw in ¥100 trillion ($750 billion) in foreign investment in an effort to stimulate economic development and international competitiveness.
The government also announced its intention to attract more foreign talent to the country.
The target is almost double the ¥46.6 trillion foreign investment seen at the end of 2022. This is an increase from the ¥80 trillion target that was initially set for 2030.
Japan seeks to increase its manufacturing and research centre status, exploiting a weak yen that would attract foreign investment.
Japan has put together a plan to draw investment to strategic sectors, including semiconductors, digitalisation, green technology and healthcare, utilising funds and other resources.
The plan relies on the government, businesses and academia working together to develop the required human resources.
The government has recently decided to provide financial aid to a project that involves collaboration between the public and private sectors. It involves the construction of the Taiwan Semiconductor Manufacturing Co. (TSMC) chip making plant in Kumamoto Prefecture.
Japan’s focus on foreign investment will be of interest to overseas investors and high net-worth individuals, both of whom will need a reputable money transfer service to find the best exchange rates and save money on international transfers.
Considering foreign exchange rates is also important when investing internationally, especially considering the current position of the yen.
Prime Minister Fumio Kishida has declared that pursuing a virtuous cycle of growth and redistribution through digital and green transformation is critical to Japan becoming more open to the world.
Japan, long known for its restrictive immigration policy, has started to loosen its stance in light of existing labor shortages, allowing foreign workers to enter the country.
The action plan also proposes extending the "startup" visa period that allows entrepreneurs to create businesses in Japan, with the maximum amount of time permitted being one year. Just this month, Japan has simplified the requirements for obtaining visas for highly skilled professionals.
This requires professionals to make an annual salary of ¥20 million or more and possess a master’s degree or higher.
FXC’s money transfer comparison tool can help those investing in Japan find the best exchange rates and save money on international transfers.
