By Judith Ugwumadu | 25 June 2014

Japan’s Prime Minister Shinzo Abe has unveiled an ambitious package of economic reforms aimed at revitalising the management of public funds and the country’s ‘earning power’.

Abe yesterday outlined the ‘third arrow’ of his economic reforms – known as ‘Abenomics’ – which included corporate tax cuts, enhanced childcare services and labour market and social security changes that will encourage more women into the workforce.

‘The government decided to make our growth strategy more powerful in a bold manner. The key is to revitalise local communities,’ Abe said in a televised press conference.

‘There is neither a taboo nor a sanctuary in the Abe government’s growth strategy. We will resolutely challenge rock-hard regulations and institutions.

‘The Abe cabinet will break all barriers so that we can realise the potential of the Japanese economy.’

Abe’s plan calls for reforms to the management of public and quasi-public funds, in particular a revision to the policy asset mix of the government pension investment fund (GPIF), the world’s largest pool of retirement savings, with approximately $1.3 trillion in assets under management as of 2009.

New measures to be adopted for GPIF will respond to long-term economic changes and secure sound pension finances over a period of time.

The paper added that new measures will be implemented to strengthen the governance structure of GPIF, including the appointment of multiple full-time members to the investment committee and secure highly-skilled investment professionals. 

The Abenomic strategy began in 2013 to improve the Japanese economy through a policy of combining increased government spending with a large amount of monetary easing.