Survey Overview This is the Ministry of Economy, Trade and Industry's regulatory reform and institutional improvement survey report for fiscal year 2024 (Report No. 1000068). The report analyzes regulatory and institutional reforms and their future direction to achieve both economic growth and resolution of social issues.
Need for Regulatory Reform Existing regulatory systems have become barriers to innovation as they cannot adequately respond to the advancement of digital technology, social structural changes, and the emergence of new business models. Analog regulations such as paper-based, seal-stamped, and face-to-face requirements hinder corporate DX initiatives and obstruct productivity improvements. The utilization of the regulatory sandbox system remains limited at 53 cases per year.
Digital Regulatory Reform The government aims to create an institutional environment that supports DX by identifying regulations that hinder the social implementation of digital technology, eliminating paper-based, seal-stamped, and face-to-face requirements, and promoting the digitalization of administrative procedures. This includes expanding the use of regulatory sandboxes in fintech, healthtech, and mobility sectors, and promoting flexible application of regulations for new technologies.
Support for New Industry Creation There is an urgent need to establish regulatory frameworks that accommodate new business models such as the sharing economy, platform businesses, and AI services. The government supports corporate activity revitalization and international competitiveness improvement through rationalization of environmental regulations, flexibility in labor regulations, and investment promotion through tax reform.
Expected Effects Through regulatory reform, the government aims to achieve sustainable economic growth by creating an annual economic effect of 2.1 trillion yen, increasing new business creation by 30%, and achieving a 90% digitalization rate for administrative procedures.