<ul><li>The Japanese government is launching a five-year plan to support wage hikes among small and mid-size enterprises (SMEs) in order to revitalize wage growth and improve working conditions.</li><li>The plan will involve an investment of approximately ¥60 trillion (US$385 billion) over five years to enhance productivity in labour-intensive sectors, aiming to address acute manpower shortages.</li><li>The initiative will be discussed at the upcoming Council of New Form of Capitalism Realisation and is part of Prime Minister Shigeru Ishiba's agenda to achieve an average minimum hourly wage of ¥1,500 (US$10.34) by the end of the decade.</li><li>Targeted industries for productivity enhancement include restaurants, accommodation, retail, manufacturing, nursing care, agriculture, and lifestyle-related services, with plans to leverage digitalization and labor-saving technologies for increased efficiency and sustainable wage growth.</li></ul>

Japan to launch five-year plan to boost wages and productivity in SMEs

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