Japan's new economic model taps household wealth for industrial strategy
Japan's government under Prime Minister Sanae Takaichi has designated 17 strategic fields—including artificial intelligence, semiconductors, nuclear fusion, aviation, shipbuilding, and energy development—as part of a new economic model aimed at boosting economic security. Announced in November 2024, the policy seeks to mobilize household wealth and assets to fund industrial ambitions, addressing what Minister in charge of growth strategy Minoru Kiuchi calls a critical lack of investment. The initiative draws inspiration from Malaysia's 1980s 'Look East' policy under Mahathir Mohamad, which promoted state-led development models from Japan, South Korea, and Taiwan over Western market-dominated approaches. While the move has received little international attention, it represents a significant shift in Japan's economic strategy, leveraging private savings to drive growth in cutting-edge sectors.
Key facts
- Japan designated 17 strategic fields including AI, semiconductors, nuclear fusion, aviation, shipbuilding, and energy.
- The policy was announced in November 2024.
- Minoru Kiuchi is the minister in charge of Japan's growth strategy.
- The Takaichi administration is implementing the policy.
- The policy aims to tap into household wealth and assets.
- It is driven by economic security considerations.
- The 'Look East' policy was launched by Malaysian PM Mahathir Mohamad in the 1980s.
- The original 'Look East' policy promoted emulating Japan, South Korea, and Taiwan.
Entities
Institutions
- Government of Japan
- Takaichi administration
Locations
- Japan
- Tokyo
- Malaysia
- Southeast Asia
- South Korea
- Taiwan