Changes in demand, including intensified competition in the midst of global market integration that extends to emerging countries, and a shift from single, high-quality product sales to integrated sales of equipment and services, requires industries to emphasize such approaches as “securing substantial levels of investment” and “system sales.” With domestic regional economies still in the doldrums, support for venture companies and regional SMEs is now more important than ever before.

In this context, the proposed legislation will further enhance institutional and financing support, and will foster private sector-led strategic industry restructuring oriented toward reinforcing the ability of Japanese industries to compete internationally. It will also support venture firms and other growing companies in developing new areas of business and stimulating regional SMEs.

Highlights of the bill are described below.

(1) To foster private sector-led strategic industrial restructuring, the government will implement measures that include:

(i) Establishing a system for consultation with the Japan Fair Trade Commission.

(ii) Simplifying and diversifying the procedures required for reorganization based on special provisions for the Companies Act.

(iii) Establishing a low-interest loan (“two-step loan”) program to provide long-term funds to companies carrying out restructuring efforts.

(2) To support venture companies and regional SMEs, the government will implement measures that include:

(i) Providing debt guarantees for loans to growing companies, including venture companies and leading medium-sized firms.

(ii) Helping to match SMEs desiring to divest themselves of certain operations with SMEs interested in taking over those operations.

• Outline of the Bill to Partially Amend the Law on Special Measures for Industrial Revitalization and Innovation (PDF:10KB)
• Overview of the Bill to Partially Amend the Law on Special Measures for Industrial Revitalization and Innovation (PDF:225KB) Updated on March 7, 2011

February 10, 2011

(General questions related to the above bill)
Industrial Revitalization Division, Economic and Industrial Policy Bureau

(Closer relations with the Japan Fair Trade Commission)
Competition Enhancement Office, Economic and Industrial Policy Bureau

(Special provisions procedures for the Companies Act)
Corporate System Division, Economic and Industrial Policy Bureau

(Financing support)
Industrial Revitalization Division, Economic and Industrial Policy Bureau

(Support for venture firms and other growing companies)
Industrial Finance Division, Economic and Industrial Policy Bureau

(Support for SMEs)
Policy Planning Division, Business Environment Department, Small and Medium Enterprise Agency