Japan adopts regional revitalization strategy in cabinet meeting

Japan's government has adopted a comprehensive regional revitalization strategy at a cabinet meeting to build a strong economy. Covering five years from fiscal 2025, the plan targets raising rural labor productivity to match or exceed Tokyo's metropolitan area by 2029. It focuses on attracting domestic and foreign demand while enhancing rural appeal and infrastructure.

To achieve a strong economy as envisioned by Prime Minister Sanae Takaichi's administration, Japan's government approved a comprehensive regional revitalization strategy during a cabinet meeting on Tuesday. Spanning five years from fiscal 2025, the plan seeks to elevate per-person labor productivity in rural areas to levels matching or surpassing those in the Tokyo metropolitan area and the neighboring prefectures of Saitama, Chiba, and Kanagawa by 2029, through initiatives like developing digital human resources.

Emphasizing sustainable local economies, the strategy highlights the need to draw domestic and foreign demand to rural regions for profitability. Key measures include leveraging local resources to attract inbound visitors, supporting local industries in expanding their markets, and encouraging companies to relocate headquarters from Tokyo to countryside areas. It also promotes making rural locales more appealing to women and young people to alleviate population overcrowding in the capital.

New targets for fiscal 2027 include boosting the number of migrants from Tokyo to rural areas to 10,000 and increasing local governments actively fostering 'connected populations'—people who engage with regions beyond their official residence—to 1,200. The plan further addresses improving living conditions by sustaining public transportation services and bolstering disaster mitigation efforts. It aims to resolve transportation shortages in around 2,000 nationwide areas by fiscal 2027, using methods such as introducing autonomous vehicles.

Overall, this approach intends to foster national economic resilience by revitalizing rural Japan.

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Japanese Prime Minister Sanae Takaichi delivering a speech on boosting the economy through investments in strategic fields like AI and shipbuilding.
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Takaichi vows robust economy through investments in 17 strategic areas

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Japanese Prime Minister Sanae Takaichi pledged on November 4 to boost investments in 17 strategic fields, including artificial intelligence and shipbuilding, to revitalize the economy. Her administration aims to finalize a growth plan by next summer. The strategy seeks to increase tax revenues without raising taxes through public spending.

The Japan Tourism Agency plans to increase regions addressing overtourism from 47 to 100. This effort is included in the draft of the basic tourism promotion plan presented to an expert panel, outlining tourism policy through fiscal 2030. While keeping the inbound visitor target unchanged, it raises the repeat visitor goal from 36 million to 40 million.

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Japan's tourism ministry plans to strengthen financial support for municipalities' town development efforts using historical tourism resources starting in fiscal 2026. It intends to provide subsidies to a wide range of local governments for projects such as renovating old buildings and preserving traditional events. The goal is to create more attractive sightseeing areas nationwide to diversify inbound tourist destinations and curb overtourism in major cities.

With Japan's defense budget on the rise, manufacturers specializing in defense materials like radar and missiles are expanding workforces and increasing capital expenditures. This is driven by the government's five-year plan starting in fiscal 2023 for substantial budget increases and Prime Minister Sanae Takaichi's proactive defense stance. Companies anticipate further order growth, turning defense-related business into a burgeoning sector.

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Following the Cabinet's approval of a record ¥122.3 trillion fiscal 2026 budget, Prime Minister Sanae Takaichi announced a projected primary balance surplus—the first in 28 years—highlighting progress toward long-term fiscal health amid high debt concerns.

Japan's government is hosting the inaugural Tokyo Economic Security Forum on December 15 in Tokyo. Amid global uncertainties from the US-China trade war and high tariffs under the Trump administration, experts from around the world will discuss securing strategic materials and protecting supply chains. The importance of public-private collaboration is highlighted.

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Japan's rice policy stands at a crossroads as prices for the staple food remain at record highs, straining households. In August 2025, then-Prime Minister Shigeru Ishiba declared a shift to boost production, but his successor Sanae Takaichi reversed this in October, opting to keep output aligned with demand.

 

 

 

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