Press Conference by Minister Muto (Excerpt)

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

10:29 to 10:45 a.m.
Tuesday, November 12, 2024
Press Conference Room, METI Main Building

Opening Remarks

Reappointment as a minister

To begin, I would like to mention two points.
First, last night, Prime Minister Ishiba reappointed me as Minister of Economy, Trade and Industry, Minister in charge of the Response to the Economic Impact caused by the Nuclear Accident, Minister of State for the Nuclear Damage Compensation and Decommissioning Facilitation Corporation, Minister for Green Transformation, and Minister in charge of Industrial Competitiveness. I ask for your continued support.
Following on from the previous directions, the Prime Minister gave me directions to address issues including the reconstruction of Fukushima, the realization of a growth-oriented economy driven by wage increases and investment, wage increases by small and medium-size enterprises (SMEs), the promotion of energy and Green Transformation (GX) policies, and the steady preparations for the Expo 2025 Osaka, Kansai, Japan.
Bearing in mind these directions from the Prime Minister, I will continue to fulfill my duties as Minister of Economy, Trade and Industry to make sure to advance the economic and industrial policies.

Visit to Peru (APEC Ministerial Meeting)

Second, from November 13 to 16, I will visit Peru to attend an Asia-Pacific Economic Cooperation (APEC) Ministerial Meeting. At the meeting, I will hold discussions with other participating ministers on the stimulation of trade and investment in the Asia-Pacific region and approaches to achieving sustainable growth in the region.
I will convey the importance of maintaining and strengthening the rule-based trade order through WTO reform and the significance of achieving decarbonization, economic growth, and energy security at the same time as efforts for achieving net zero emissions under diverse pathways tailored to the circumstances of respective countries.
Moreover, taking this opportunity, I am scheduled to hold meetings with some countries and regions to discuss the further enriching of bilateral economic ties.
I will end my remarks here.

Question-and-Answer Session

Supporting next-generation semiconductors

Q: I would like to ask you about semiconductors. At his press conference, Prime Minister Ishiba announced that the Government of Japan will formulate a framework to provide public support of 10 trillion yen or more to the semiconductor and AI sectors by 2030. What types of specific support measures do you envision, such as investment or debt guarantees, for example?
In addition, he also explained that as a prerequisite, the government will not issue deficit-covering bonds for a financial resource. Amid this, could you offer your view as of today on how the government intends to secure 10 trillion yen or more?
As a final question, concerning a process for discussing the framework, the Prime Minister also explained that related ministries and agencies will hold deliberations on it. Do you have any idea of what type of meeting bodies the government specifically envisions?

A: As you have just mentioned, the Prime Minister announced yesterday that the government will provide public support of 10 trillion yen or more to the AI and semiconductor sectors by FY2030 and that it will formulate a new support framework to encourage public and private investment at the level of over 50 trillion yen for the coming ten years. Regarding the support for the AI and semiconductor sectors, I have stated the government’s policy for providing the sectors with large-scale, strategic support over multiple fiscal years while securing the necessary financial resources for the sectors. We have been advancing coordination within the government to incorporate this policy into economic measures.
Based on the Prime Minister's announcement yesterday, related ministries and agencies are currently finalizing the specifics, including support methods and financial resources, in the process of coordinating economic measures. I will thoroughly explain the details once these specifics have been finalized.
Moreover, concerning the financial resources, the government is not scheduled to issue deficit-covering bonds or increase tax. As I mentioned earlier, we are currently advancing coordination for a new framework for the financial resources, so I will thoroughly explain the details once they have finally been determined. I hope for your understanding on this.
Regarding the meeting bodies, several of such bodies are expected to start discussions, such as the GX Implementation Council. I will also thoroughly explain the details once they have been determined. I hope for your understanding on this, too.

APEC Ministerial Meeting

Q: I would like to ask you about APEC.
You mentioned the rule-based trade order earlier. With Mr. Trump’s victory in the U.S. presidential election, a sense of caution is emerging about protectionism. In this situation, what kind of APEC meeting do you hope it will be?

A: APEC, in which Japan has been a long-standing member, has been conveying the importance of maintaining a rules-based international order through a variety of occasions.
At this APEC Ministerial Meeting as well, I would like to hold discussions with other member countries on maintaining and strengthening the system of the rules-based international economic order with the WTO at the core. I think that it is too early to comment with any preconceptions as of today on the measures that the next Trump administration in the U.S. may take. In any case, I would like to have good dialogues with other countries to convey such intentions of Japan.

Offshore wind power generation

Q: I would like to ask you about approaches to realizing investment in offshore wind power generation.
I believe that, in light of the recent inflation, the Agency for Natural Resources and Energy is currently discussing measures to encourage businesses to make investments securely. The government has set some targets for offshore wind power generation as a potential main power source for next-generation power generation. Meanwhile, it has been reported that the inflation caused since Russia's aggression against Ukraine has been forcing many businesses overseas to withdraw from projects. Could you comment anew on the government's recognition of the importance of offshore wind power generation? Also, I believe that the government has been considering a new scheme to link price fluctuations with purchase prices. Could you tell us about your awareness of the need for a project to encourage businesses to make investments securely?

A: The Minister of Economy, Trade and Industry has been proactively promoting the introduction of offshore wind power generation as a key to introducing renewable energy as a major power source, as you know.
Meanwhile, as you mentioned, the effects of inflation are causing events in which projects are suspended and withdrawn in various countries around the world. I recognize that the same concerns are being raised in Japan, as you pointed out. To address this situation, some councils are currently advancing discussions on related issues, such as an ideal approach to a deposit system to prevent businesses from withdrawing or falling behind schedule and the introduction of a system to adjust prices based on price fluctuations in materials after the submission of a tender.
We will continue to steadily and carefully examine the matter to strengthen rules and improve environments to ensure the implementation of the project in a manner that is neutral in terms of the burden on the public.