Keidanren Sets 200-T.-Yen Capital Spending Target for FY '40

Tokyo, Jan. 27 (Jiji Press)--The Japan Business Federation, or Keidanren, on Monday disclosed a new target of increasing domestic corporate capital expenditures to 135 trillion yen in fiscal 2030 and 200 trillion yen in fiscal 2040.

Masakazu Tokura, chairman of the country's largest business group, unveiled the target at a joint meeting of the public and private sectors to expand domestic investment, held at the prime minister's office.
  Keidanren hopes that the Japanese economy will achieve high growth through cooperation between the public and private sectors in investment in the areas of decarbonization and artificial intelligence.
 

Other participants in the meeting included Prime Minister Shigeru Ishiba and Bank of Japan Governor Kazuo Ueda.
 

Tokura asked the government to make strategic investment based on medium- to long-term plans to encourage investment by companies, saying that "we ask for powerful support."
 

"The public and private sectors need to work as one to realize (Keidanren's) targets," Ishiba said.
  Keidanren already has a target of increasing nominal domestic capital investment to 115 trillion yen in fiscal 2027, which is expected to be achieved ahead of schedule.
 

In its proposal released last month, Keidanren said that Japan will be able to increase its nominal domestic product to 1,000 trillion yen in fiscal 2040, against nearly 600 trillion yen in fiscal 2023.
 

In order to hit the fiscal 2040 GDP target, Japan needs to log nominal GDP growth of some 3 pct annually.
 

Keidanren set the fiscal 2040 capital spending target at a level needed to realize the nominal GDP of 1,000 trillion yen.
 

At Monday's meeting, a subsidiary of Taiwan Semiconductor Manufacturing Co., the world's largest contract semiconductor maker, operating in the southwestern prefecture of Kumamoto explained that it has started mass-producing chips at its first plant and is working to increase the use of components procured in Japan.
 

Another participant Hiroshi Mikitani, head of the Japan Association of New Economy, a business group, asked the government to increase the country's population by proactively accepting immigrants.
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