Press Conference by Minister Saito (Excerpt)

*Note: This is a provisional translation for reference purposes only.

9:00 to 9:10 a.m.
Tuesday, April 23, 2024
Press Conference Room, METI Main Building

Opening Remarks

Subsidy for business restructuring

Good morning. I would like to mention two points.
First, at a meeting of the Administrative Reform Promotion Council yesterday, April 22, I reported on the status of addressing the matters pointed out in relation to the Fund for Promoting Business Restructuring of Small and Medium-Sized Enterprises, etc. in the Autumn Administrative Program Review conducted last year.
Regarding the subsidy program for business restructuring implemented using this fund as a financial source, as a result of a series of discussions so far conducted, we have made fundamental revisions, such as abolishing in principle the scheme which allows recipients of the subsidy to initiate the subsidy project prior to the grant decision (which was a special measure taken as a countermeasure against COVID-19), limiting the scope of support for business operators affected by COVID-19, making the screening process more rigorous, and enhancing the Evidence Based Policy Making (EBPM) approach. Following those fundamental revisions, in order to provide intensive support for forward-looking business restructuring by small and medium-sized enterprises that are required to respond to economic and social changes in the post-COVID-19 era, today we are starting the 12th public invitation of applications for the subsidy.
As for detailed information, the administrative staff will give you a briefing later.

SX Brands

Second, regarding the SX Brands, which we launched together with the Tokyo Stock Exchange last year, we will at 4 p.m. today announce 15 companies selected as the SX Brands 2024 that represent the first group of SX Brands. SX stands for sustainability transformation, which refers to companies’ implementation of bold management reforms through constructive dialogue with investors in order to realize a sustainable increase in corporate value while taking into consideration the risks and opportunities associated with social challenges.
By selecting this group of progressive companies, we aim to encourage Japanese companies to carry out management reforms toward a sustainable increase in corporate value and also promote the reevaluation of Japanese stock as a whole and the formation of new expectations among domestic and foreign investors.
Regarding detailed information, please consult with the administrative staff.
I will end my remarks here.

Question-and-Answer Session

The impact of the situation in the Middle East on energy procurement

Q: I would like to ask you about the Middle East situation. As the situation has become tense due to the conflict between Iran and Israel, there are concerns about the impact on imports of crude oil and LNG, which Japan depends on, although the situation has stabilized slightly for the moment. Please tell me about the government’s view on the impact on Japan’s procurement and prices.

A: The Middle East is one of the important regions that support global energy supply. It goes without saying that it is important to ease the tension and regain stability in the Middle East. Regarding the stable energy supply to Japan, my understanding is that there has been no impact at the moment, but we will keep a close watch on the situation with strong interest.

As for energy prices, I understand that prices are determined in the market based on various factors, including not only the Middle East situation but also the global economic situation and energy supply and demand developments, so I would like to refrain from commenting on the outlook on energy prices. We will keep a close watch with a sense of urgency on the impact of energy price developments on the Japanese economy, including energy prices in Japan. Regarding crude oil in particular, we will call for oil-producing countries to maintain stability in the global crude oil market.