TOKYO: Japan is set to raise its 2030 foreign direct investment target by 20% and push the figure as high as 150 trillion yen ($1.05 trillion) by the middle of the decade, people familiar with the matter told Reuters.

The mid-decade goal, almost triple the current level of investment of some 50 trillion yen, underscores Japan’s push to revitalise its economy by attracting foreign firms to pump money into key growth sectors such as decarbonisation.

The new targets, to be formally included in the government’s upcoming fiscal and economic policy guidelines in June, represent a sharp escalation from the previous goal of 100 trillion yen by 2030.

The plan is to revise the 2030 goal to 120 trillion yen which will set the stage for accelerated effort in the years beyond to reach 150 trillion yen before 2035, said the people, who declined to be identified as the matter is still private.

The expanded foreign direct investment strategy is also aimed at stimulating regional economies and creating jobs outside major urban centres, the people said.

To this end, they said, the government is considering the use of new grants and enhanced public-private collaboration frameworks to support the establishment of foreign facilities in local areas.

Reuters