New support package to aid businesses pivoting to Japan, as well as, other Asian countries
Due to supply chain disruptions caused by the COVID-19 pandemic, Japan has taken a major step to support businesses in shifting production out of China. As part of a large stimulus package, the country is going to provide direct incentives and financing mechanisms to both small and large businesses to reform their nation’s supply chain.
To assist companies in pivoting high-added-value products to the nation, the Japanese government is setting aside ¥220 billion (USD $2 billion) for business.
The initiative also set aside ¥23.5 billion (USD $200 million) to support businesses pivot production of certain goods in strategic Southeast Asian markets.
Recommendations for this initiative were part of a plan laid out this past March by an investment panel chaired by Prime Minister Shinzo Abe, The Council on Investment for the Future.
This new production diversification support is in addition to a $992 billion stimulus package, which is equivalent to 20% of the country’s economic output annually. Among the provisions within the support package, companies will have the ability to defer income and regional tax payments for a year, along with financial aid for small businesses and struggling residents.
To learn more about these new initiatives, along with other support programs released throughout the region and around the world, visit HICKEY’s global database on recovery programmes: