Photo/Illutration Prime Minister Fumio Kishida speaks at the Economic Club of New York on Sept. 21. (Keishi Nishimura)

NEW YORK--Japan will establish a special zone to make it more convenient for foreign asset management companies to open for business.

Speaking on Sept. 21 at the Economic Club of New York, Prime Minister Fumio Kishida unveiled the plan he said would also provide Japanese consumers with greater opportunities to invest their money.

Kishida acknowledged criticism that Japan lags behind other nations in having an environment friendly for foreign asset management companies.

But the prime minister said his administration would push through structural reforms that would do away with barriers that have existed under Japan’s unique business practices.

A policy plan to encourage foreign asset management companies to enter the Japanese market will be compiled by year-end, and the government is also considering relaxing restrictions and making legal revisions if the need arises.

One measure being considered is to allow foreign companies to complete administrative procedures in Japan using only English.

Kishida said reforms would be implemented to match the needs of the world’s investors.

With many investors and financial institution officials in the audience, Kishida urged them to join a forum to be scheduled that would bring together those in the asset management sector from both nations.

He added that he hoped American investors would invest in Japan after thoroughly examining the underlying strength of the Japanese economy and its plans.

The Kishida administration has made doubling returns from assets held by Japanese households as one of its major policy goals, but until now, that had meant mainly focusing on expanding the tax-exempt Nippon Individual Savings Account (NISA), a program for small investments.

(This article was written by Keishi Nishimura in New York and Yasuyuki Onaya.)

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