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Japan’s Nikkei Asian Review says the decision was made to reduce dependence on China, the world’s second-largest economy.
Previously, the government had allocated 2,350 crore yen (কোটি 221 million) to companies that had moved production to Southeast Asian countries in the 2020 supplemental budget to diversify the supply chain.
The government announced Thursday that it would apply for a second round of subsidies, including India and Bangladesh, along with the ASEAN countries.
According to Nikbei Asian Review, industrialists can also get grants for feasibility studies and trial production. The total amount of the aid could reach 100 million pounds sterling.
The Japanese government has adopted the subsidy program to reduce its dependence on China for the production of a number of products, as well as to ensure an uninterrupted supply of medical and electrical equipment during emergencies.
Nikbei Asian Review says the topic came up for discussion in Japan after factory production in China was shut down at the start of the Coronavirus epidemic.
The first round of subsidies, announced in July, allocated more than 1 billion yen to 30 companies relocating factories in Southeast Asia, such as Haya, which shifts electrical equipment production to Vietnam and Laos. Another 56 companies are benefiting from the transfer to Japan.
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