Reading policies as "business strategies" - A compass for sustainable management as seen in the Takaichi administration's economic policies

Linkard Company, Ltd. Senior Executive Officer Yoshikawa Mafu

Introduction: The ability to interpret policy trends determines sustainable management

For business managers, national policies change market assumptions and determine the direction of investment, making them an important factor in shaping the competitive environment several years into the future. This article focuses on the autumn economic measures1 ) approved by the Cabinet on November 21, 2025, focusing on policies related to corporate sustainability, such as the environment, digital, and human resources, and explains what business managers should learn from the Takaichi administration's economic measures and how they should act.

Autumn economic measures and supplementary budget: Seizing the annual "policy turning point"

In Japan, large-scale economic measures are typically formulated in the fall, and a supplementary budget is compiled to support them. This acts as an "advance implementation" of policies for the following fiscal year and beyond, and the policy direction indicated here is linked to subsidies and tax reforms for the following fiscal year, which in turn affects business strategies such as corporate investment in capital and human resources.

In particular, this economic measure was the first since the new administration was formed, and as it reflected Takaichi's unique style, it attracted a lot of attention.

What was decided in the autumn economic measures?

The autumn economic measures outlined policy guidelines mainly in the following areas:

• GX (Decarbonization and Energy Transition)

• DX (AI, digitalization, data integration)

• Strengthening the semiconductor supply chain

• Human Resource Investment and Reskilling

• Support for small and medium-sized enterprises and capital investment

• Disaster prevention and national resilience

• Measures to combat rising prices and living support

By looking at the content of these policies and the allocation of budgets, it is possible to read future growth areas, trends in subsidies such as "IT introduction subsidies" and "GX-related subsidies," and key investment themes. Furthermore, because banks and investors judge areas prioritized in economic measures and supplementary budgets as "growth areas supported by the government" and "areas with relatively low loan and investment risk," this also affects the Funding environment.

Key points of this fall's economic measures: Strengthening GX, DX, and human resource investment

From the perspective of sustainability policy, the key points of this year's economic stimulus package are strengthening GX, DX, and human resource investment. Generally, the Contents is more advanced than last year's economic stimulus package. For companies, understanding the direction of policy in these three areas should provide hints for sustainable management that considers the environment, streamlines operations amid labor shortages, and continuously utilizes talented personnel.

GX: Transforming decarbonization from “cost control” to “foundation for growth”

It is clear that this economic package positions GX not just as an "environmental measure" or "cost control," but also as "the foundation for Industry competitiveness and growth."

For example, the 2024 economic measures called for accelerating efforts to achieve carbon neutrality and GX by 2050 under the heading "Realizing an economy and society that is resilient to rising Energy costs." However, in the latest economic measures, there is a strong tendency for GX to be positioned not just as a separate item but as part of a growth strategy.

Specifically, the economic measures include the following main policies:

• Strengthening financial support to encourage GX investment

• Creating a GX market on the demand side, such as promoting the purchase of electric vehicles (EVs)

• Promoting the availability of sustainable aviation fuel (SAF) at internationally competitive prices

• Support for commercialization of carbon dioxide capture and storage (CCS) technology

DX: Cross- Industry structural reform using AI

The autumn economic measures include support for the digitalization of various Industry, as well as emphasizing the strengthening of strategic Industry bases such as AI and semiconductors.

Regarding AI in particular, the following policies have been put forward:

• Promote measures, including bold regulatory reform, in cooperation with both domestic and international partners to strengthen domestic research and development and promote social implementation.

• Formulate a strategic policy for "AI for Science" (an initiative to apply AI technology to all stages of scientific research and utilize it in various fields) by fiscal 2025

• Creating diverse Service that combine Japan's Industry with AI, and actively expanding overseas

• Eliminating labor shortages and improving productivity through the world's most advanced AI robotics

Investing in human resources: From reskilling to developing "transformation leaders"

Regarding investment in human resources, the government is strengthening support for personnel who will take on the role of process redesign and business transformation. Going beyond mere skill acquisition, the development of personnel who will take on New businesses within companies is becoming a policy theme.

In fact, among the economic measures, we are looking to develop human resources who will lead Industry transformation and invest in human capital that will support structural transformation.

The main human resource investment-related policies in the economic stimulus package are as follows:

• Taking into account the evolution of generative AI, we will examine the current and future demand for skills, as well as the track record and results of support measures such as Education and training subsidies, and consider reviewing and prioritizing support measures.

• Regarding the Human Resources Development Support Subsidy, we will consider streamlining it by reducing the number of application items and attached documents to make it easier for business owners to use.

Subsidies for GX, DX, and human resource investment

To promote GX, DX, and human resource investment, the government has been actively supporting these areas by providing subsidies. The latest economic stimulus package has pledged to further enhance some subsidies, and these are expected to continue and expand into the next fiscal year (see table below - as of the end of November 2025. Please note that some subsidies may be closed or have changed in requirements, so please check the website of each support program for the latest information).

Table: Representative subsidies related to GX, DX, and human resource investment

Practical impact for companies: How to interpret policies and how to act

What is important for business managers is not just to read the policies, but to think about how to incorporate them into their company's strategies. In particular, they should be mindful of the following three points.

① Anticipating future markets through economic measures

The autumn economic measures will provide insight into which areas the government wants to develop and how, providing clues to future market trends.

② Visualize your company's weaknesses through requirements analysis

The requirements for applying for subsidies are the "capabilities that the government requires of the Industry," and any shortcomings can become "business weaknesses" for companies. Recently, visualization of energy-saving effects and internal controls are often required when applying for subsidies.

3) Maximize subsidies through comprehensive sustainable management

By tackling GX subsidies, DX support, and human resource investment in an integrated manner, the amount of the same subsidy can be maximized. We aim for sustainable management that incorporates GX, DX, and human resource investment in a complex manner.

Summary: Seeing the direction of corporate strategy from policy

The policy themes outlined in the economic stimulus package and supplementary budget are national-level strategies that the government wants Japanese companies to move in. The latest economic stimulus package places a stronger emphasis on positioning investment in GX and human resources as part of a growth strategy and a transformation of the Industry structure. Strengthening Industry such as AI and semiconductors in DX is also emphasized, and it can be said that the realization of a "strong economy," which the Takaichi administration is focusing on, has been brought to the forefront.

Companies that adopt this approach to management will be able to anticipate changes in the external environment and have a solid management base, which will ultimately lead to increased recognition from business partners and Financial Institution. Another benefit is that they will be able to more easily utilize subsidies and support measures in a comprehensive and maximal way.

Government policies are essential for considering the direction of a company's strategy. The autumn economic stimulus package is packed with the latest information, so companies should read it thoroughly and put sustainable management into practice.

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* 1) Cabinet Office, "Comprehensive Economic Measures to Realize a Strong Economy: Turning Anxiety into Hope with the Strength of Japan and the Japanese People," Cabinet Decision Document, November 21, 2025www5.cao.go.jp/keizai1/keizaitaisaku/1121_taisaku.pdf

* 2) "Energy Saving Investment Promotion and Demand Structure Transformation Support Project Subsidy" by the Environmental Co-Creation Initiative, a general incorporated associationhttps://syouenehojyokin.sii.or.jp/124business/

* 3) "Business Restructuring Subsidy" by the Small and Medium Enterprise Agency and the Organization for Small & Medium Enterprises and Regional Innovation, Japan (Pasona Company) https://jigyou-saikouchiku.go.jp/ 

* 4) Ministry of Economy, Industry"FY2025 Energy Conservation Support Package"https://www.enecho.meti.go.jp/category/saving_and_new/saving/government/data/package_r7.pdf

* 5) "IT Introduction Subsidy 2025" by the Small and Medium Enterprise Agency and the Organization for Small & Medium Enterprises and Regional Innovation, Japan (TOPPAN Company) https://it-shien.smrj.go.jp/  

* 6) Ministry of Health, Labour and Welfare "Human Resources Development Support Subsidy" www.mhlw.go.jp/stf/seisakunitsuite/bunya/koyou_roudou/koyou/kyufukin/d01-1.html  

* 7) Ministry of Health, Labour and Welfare "Career Advancement Subsidy"www.mhlw.go.jp/stf/seisakunitsuite/bunya/koyou_roudou/part_haken/jigyounushi/career.html