Tokyo, Osaka, Fukuoka & Sapporo to be designated as “Asset Management Special Zones”

The Japanese government is actively promoting the development of “Financial and Asset Management Special Zones” as a key initiative for achieving its “Asset Management Nation Realization Plan.” These special zones aim to attract domestic and international financial and asset management companies, fostering a vibrant financial ecosystem where capital flows freely to growth sectors like startups.

Local governments play a critical role in establishing these zones, implementing supportive measures like tax benefits, infrastructure development, and regulatory reform proposals. To encourage the participation of local governments, the FSA has been soliciting proposals and requests from them.

Local governments were able to apply, with submissions due in February and March this year. As the Nikkei reported on Friday, Tokyo, Osaka, Fukuoka, and Sapporo have been chosen, and representatives of these cities will meet with Prime Minister Kishida on May 31, before official announcements will be made in early June.

The focus of these proposals is threefold:

1. National Support: Local governments are urged to identify necessary national support for facilitating the establishment of a thriving financial and asset management sector within their region. This includes proposals for regulatory reforms that streamline business operations, enhance administrative services (particularly in English), and provide other necessary support measures.
2. Local Government Initiatives: Local governments are expected to outline their proactive measures for attracting financial and asset management companies. This includes developing a supportive business environment, providing tax benefits, and actively promoting growth sectors that align with the national investment strategy.
3. Growth Sector Development: Local governments are encouraged to identify specific growth sectors within their region that will serve as attractive investment targets for financial and asset management companies. These proposals should detail the region’s current state, future growth potential, and any necessary support measures to accelerate development.

The submission process was designed to gather a comprehensive understanding of local government needs and aspirations. The government will review the submitted proposals and, based on the responses, select target areas for these special zones. This process highlights the government’s commitment to collaborative and localized approaches to driving economic growth and achieving its “Asset Management Nation” vision.

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