New course for the Asia Digital Transformation (Asia DX) Promotion Program to Be Established, and the 4th Call for the Regular Course Announced

1. Overview

• As ASEAN countries’ economy develops, they face a variety of social challenges, notable ones being inadequate medical care, declining birthrates, aging populations, and the need to increase agricultural productivity. Businesses that use digital technology to solve these challenges are beginning to emerge. More and more of these businesses and similar organizations are expected to be created in order to solve these challenges and contribute to economic growth at the same time. To that end, the Asia DX Promotion Program has been supporting co-creation projects between ASEAN and Japanese companies in conducting demonstration projects toward contributing to solving local social challenges in ASEAN countries by utilizing innovative approaches, such as digital technologies, while leveraging their technology, knowledge and other advantages. METI will continue to accept proposals for the regular course, ADX for Project Demonstration Phase, this fiscal year also.
• In addition, a new course, ADX Boost UP Program for Project Scale-UP Phase, is going to be established to coincide with the 50th Year of ASEAN-Japan Friendship and Cooperation. This new course will target projects which their business models / technologies / services etc. have already been commercialized / monetized / demonstrated in the ASEAN region and will support its business scale-up/scale-out through collaboration with venture capitals. As stated above, we offer two courses, ADX for Project Demonstration Phase, and ADX for Project Scale-UP Phase. The details are as follows.

2. Asia DX Promotion Program (4th call for ADX for Project Demonstration Phase) 

This program provides subsidies for demonstration projects conducted in ASEAN.

（1）Call period

From around April 10^th (Mon.), to October 6^th (Fri.), 2023

• Deadline for the first round: 17:00(JST) on May 26^th (Fri.)
• Deadline for the second round: 17:00(JST) on October 6^th (Fri.)

(2) Overview of the call

ⅰ Companies eligible for subsidies

• The applicant must be a private business entity with an office or legal standing in Japan and with an actual business presence in Japan. Foreign corporations that are overseas subsidiaries of a Japanese corporation can apply jointly with their parent (Japanese) company.

For ASEAN com panies/institutions: Please apply through a Japanese partner who is eligible to apply.

ⅱ Main requirements for the projects

• Contribute to solution of socio-economic challenges in the project country..
• Use innovative technologies, such as digital technology.
• Identify ASEAN companies, corporate entities, or similar parties as  project partners.
• Expected that the business operation will start or continue  early  (generally within two years after the　completion of the PoC)  in the target country or other ASEAN regions.

ⅲ Expenses covered by the subsidy

• Expenses necessary to carry out the projects (e.g., those related to personnel, travel, outsourcing and consignment, machinery and equipment, furniture and fixtures, consumable supplies, and assistants).

ⅳ Subsidy rates

Normal subsidies	SMEs	maximum 20 million yen, less than one-half of the subsidy-eligible expenses
	Large companies	maximum 10 million yen, less than one-third of the subsidy-eligible expenses
Special subsidies	SMEs	maximum 50 million yen, less than one-half of the subsidy-eligible expenses
	Large companies	maximum 50 million yen, less than one-third of the subsidy-eligible expenses

※1　The amount of subsidy varies depending on the size of the Japanese project partner.

※2　Special subsidies is for projects which equipment cost exceeds 1/2 of the total project amount

3. Asia DX Boost UP Program (ADX for Scale-UP Phase)

This program is to provide subsidies to projects that their business models / technologies / services etc. have already been commercialized / monetized / demonstrated already have commercialized businesses in the ASEAN region.

(1) Call period

From early May to early June 2023

(2) Overview of the call

ⅰ Companies eligible for subsidies

• The applicant must be a private business entity with an office or legal standing in Japan and with an actual business presence in Japan. Foreign corporations that are overseas subsidiaries of a Japanese corporation can apply jointly with their parent (Japanese) company.

ⅱ Main requirements for the projects

• Conduct a project which its business model / technology / service etc. has already been commercialized / monetized / demonstrated in ASEAN.
• Identify ASEAN companies, corporate entities, or similar parties as project partners.
• Use innovative technologies, such as digital technology.
• Receive investment from a venture capital in an amount that exceeds certain percentage of the subsidy eligible expenses.

ⅲ Subsidy rates

Up to 100 million yen, with a subsidy rate of 50% (for SMEs only).

4. Details regarding the call

This program is based on contributions allocated by METI to the AEM-METI Economic and Industrial Cooperation Committee (AMEICC). JETRO is its executive secretariat, in which capacity it handles aspects such as calling for applicants and adopting and supporting the successful applicants' projects.

Divisions in Charge

Asia and Pacific Division, Trade Policy Bureau