Govt to Assume Risk for Japanese Companies Investments in Projects to Boost Economic Security

The Yomiuri Shimbun

17:46 JST, March 19, 2026

The government obtained Cabinet approval of a bill to revise the Economic Security Promotion Law on Thursday. Under the revision, a system would be established in which the state will assume the risk for investment by Japanese companies in certain overseas projects deemed important for economic security.

Among these “designated overseas business projects” would be ones for developing infrastructure in emerging and developing nations.

The government aims to pass the bill during the current Diet session. It would be the first major revision of the law since it was enacted in 2022.

The revised law would constitute “investment in crisis management,” which is being advocated by Prime Minister Sanae Takaichi to accelerate the establishment of supply chains for critical materials and strengthening of the foundation of the domestic economy.

The Japan Bank for International Cooperation (JBIC), a government-affiliated financial institution, will provide financial support to designated overseas business projects by Japanese companies. The current law on the JBIC, which stipulates strict investment conditions, will be revised and relatively high-risk subordinated debt will newly be permitted.

It will be made clear that any losses will be covered by JBIC’s investment, thereby boosting the private sector’s appetite for investment.

The system will support government efforts to develop or improve ports and fuel-supply bases along sea lanes used by Japan to transport critical materials and energy resources to the country. The aim is to encourage companies to actively expand their operations in the Association of Southeast Asian Nations and other regional markets.

The government also plans to support the laying and repair of submarine cables, which are responsible for 99% of international communications.

In response to the increase in cyberattacks on medical institutions, the government will add health care to the list of key infrastructure, which currently includes electricity and gas, for which the government takes the lead in implementing countermeasures.

When rolling out a critical facility, or outsourcing its maintenance, the government will conduct preliminary reviews.