 Good evening, Mr. Prime Minister. Dear participants, it's such a great pleasure to welcome for our dialogue the Prime Minister of Japan, the third biggest economy, a member of the G7 community, and of course, Prime Minister, you have been in your office now since four months, and you are confronted with a multitude of challenges and issues, and you can imagine that the global business community and the global community in general is particularly interested to have this dialogue with you. I also would like to add, the World Economic Forum, we are particularly following your concept of new capitalism, because the World Economic Forum has been very much committed to what we call stakeholder capitalism since many, many years, and on a more personal note, I have been in Japan 50 years ago for the first time, and we always cultivated excellent relations with your countries, and I would like to thank you for your partnership related to the World Economic Forum's Center for the Force Industry Revolution, which we have established in Tokyo, to create a particularly strong cooperation in all issues of high technology and technological policies. But now, Mr. Prime Minister, the floor is yours, and we are all eager to hear about the priorities of your government. Professor Schwab, distinguished guests, first of all, let me extend my heartfelt congratulations on the holding of the World Economic Forum's Davos Agenda 2022 today. Last year I went through some of the toughest challenges that even in this my political career, first I ran for presidential election of the ruling Liberal Democratic Party and one taking the office as the prime minister, then my party won the general elections by securing a stable majority. My political style is to take an aggressive approach and introduce policies swiftly while placing the utmost importance to directly communicating with the people and workers at the front line. I will make the most of my approach to directly tackle three agendas during my administration. First, overcoming COVID-19. Second, reviving the Japanese economy through a new form of capitalism. Third, pursuing realism diplomacy for a new era, taking a realistic approach in Japan's foreign policy while aspiring to the ideal. Today I would like to introduce my vision with an emphasis on the revival of the Japanese economy through new form of capitalism. We are facing a number of challenges ranging from climate change, social digital transformation, widening of income gap and rising poverty, chronic lack of middle to long-term investment, disparities between urban and rural areas, democracy in crisis due to shrinking middle classes to unforeseen emerging tensions in geopolitics and geopolitics. If we look back on history, the world has gone through series of eras of paradigm changes, including, for example, endeavors to establish welfare states and big governments in the 1950s and 60s, as well as a rise of neoliberalism by President Reagan and Prime Minister Thatcher in the 80s and 90s. Just as the same historical stale as these times, I believe that we are now in the era of another paradigm shift in policies, I would like to pay respect to the role this diverse forum has played in leading figures and visionary discussions on various topics, including the great reset and stakeholder capitalism. Some people point out that state capitalism with unmonitored concentration of authority is efficient in conducting social reforms. However, it is proven in history that state capitalism without a function of checks and balances carries a high risk of large side effects both at home and abroad. That is why I will endeavor to transform the economy and society towards a new era while protecting the universal value of democracy. In other words, my goal is to achieve the great transformation of liberal democratic society. The Biden administrations build back better, as well as the European Union's next generation EUR, I believe, also initiatives to achieve the same goal of realizing historic social transformations. I will steadily promote economic and social reforms while being subjected to critical judgment by our citizens through elections. In order to do this, leaders of governments, industries and labor must work together to generate a massive momentum and create a tide of history for a global paradigm shifting policies. Japan is determined to lead the global trend in this new form of capitalism and will demonstrate concrete examples of how capitalism can evolve as Japan will assume the G7 presidency next year. If general perception changes from seeing the glass as half full to seeing it as half empty, there are major innovative opportunities. This is the theory of glass half empty quoted by the famous scholar in management, Peter F. Drucker. Japan is a prosperous, peaceful country and comfortable to live in. This is one of the reasons why people in Japan tend to cover themselves in their own silos, satisfied and see things as half full. However, through our fight against COVID-19, things have dramatically changed in this time and age. Nowadays every day we feel the sense of global crisis in our lives. When each person and each business share this feeling of half empty, I am convinced Japan will be able to greatly transform itself with its bond of solidarity that is inherent in our spirits. In this new form of capitalism, I will demonstrate to the people a clear and full picture of the historical challenges the Japanese economy and society are currently facing. Rather than leaving everything to the market and competition, we will focus on having both the public and private sectors work together for reforms, sharing the full picture of social and economic transformation. Japan's strong sense of solidarity becomes a foundation of a new public-private partnership. I will also launch new mechanisms to inspire investment and change the way of sharing added values. I will integrate them into both growth and distribution strategies to achieve a full-scale twin engine of growth and distribution. To fulfill the Paris Agreement, Japan has committed itself to the goals of achieving 46% reduction in emissions by fiscal year 2030 and carbon neutrality by 2050. The journey to achieving these goals is extraordinarily challenging. Japan does not have international grid connections. There remains strong public distrust of nuclear power following the accident in Fukushima. The cost of renewable power generation is inevitably high because Japan is an insular state with steep mountains surrounded by deep sea. These factors create vulnerability in the Japanese economy in order to overcome such vulnerability on the supply side. The private and the public sectors will intensely work together to transform and innovate toward a carbon neutral society on both demand and supply sides. Our efforts include institutional reforms and supporting policy in order to double investment as early as possible as well as accelerating the development of next-generation grids. In addition, I will also work on carbon pricing and labor market reforms to transform industrial structure and individual consumption. Japan is determined to boldly adopt policies that have been politically difficult in the past against a backdrop of public sense of urgency to tackle climate change. I'm also aware that many Asian countries have energy structures that are similar to Japan. Just as the European Union started the European coal and steel community during the Cold War, Japan envisions an Asia zero emissions community in Asia where both geopolitical and geoeconomic challenges are intensifying. This community would become a platform to advance efforts such as international joint investment on development of zero emission technologies in hydrogen infrastructure, joint financing, standardization of related technologies, and establishment of an Asian emissions trading market. Another important pillar is digitalization. In Japan, progress in digitalization had been insufficient. People in Japan did not really feel a pressing need for transformation and just wanted to keep the way of working they were used to. The COVID-19 pandemic, however, sparked many people once again how far behind we are in digitalization while realizing the convenience of digital technologies. In addition, we have realized that the power of digital technology is indispensable in solving Japan's social problems amid rapid progress of deep population rural areas and the Asian population. Now is a chance for Japan taking this opportunity. I will push forward Japan's digitalization at a stretch. The key to this is infrastructure. Japan will build submarine cables around the country as well as optical fiber networks throughout the archipelago. In order to prepare for the surge in data processing with the advent of the full-scale digital age, Japan will disperse large-scale data centers throughout Japan. In addition, Japan will promote next-generation networks using optical communication technology that is 100 times faster in speed and reduces electricity consumption to one-tenth. Japan's public and private sectors will jointly set numerical targets and develop such infrastructure in a planned manner. Japan will make it possible for people to use ultra-high speed and large capacity lines on a one-person, one-line basis. As our existing systems do not meet the needs of new businesses and services, my government will review 40,000 regulation systems under the new guiding principle, digitalization, which set up the principles of how Japanese society is to be digitalized. I consider it important to create a new market by setting new rules with an eye on frontier technologies like drones and automatic driving, as well as recent development of such areas, healthcare and education. In addition, I will take the data-free flow with trust. DFT that Japan proposed three years ago in Davos, another step forward. Based on trust as a foundation, we will realize a free flow of data which will bring about innovation and bridge the wealth gap. Investment in people is the key to achieve both a carbon-neutral society and digitalization. In our time, creativity and ingenuity of human beings provide the clue to solving problems and the source of innovation. For years, Japanese companies have tried vigorously to curb cost and supply cheaper products than their competitors. In this endeavor, investment in people has often been regarded as a cost as a result, which level remains stagnant and investment in human resource development has also been limited. As we move forward, we must build a virtual cycle where investment in people leads to continuous increase in company value and attracts further investment in human capital. The government will introduce systems to support human capital that fits this age of digital transformation such as creating new employee ability skills training program, promoting the appointment of female executives and utilizing side businesses. In doing so, it is important to create a common understanding not only among business people but also with market players that investment in people is a source of corporate value. This is essential in creating a system that attracts more funds to companies that promote medium to long-term corporate value enhancement. To this end, Japan will create a disclosure system for investments in non-financial assets such as human capital. Japan's Abenomics was based on the three pillars of monetary easing, fiscal expansion and growth strategies including global standard corporate governors. As a result, the Japanese economy is no longer in a deflationary situation and has achieved the expansion of woman's labor participation and employment. Abenomics achieved great results but it is clear that the efforts made thus far are not enough to transform the Japanese economy into a sustainable and inclusive one. My cabinet will build on the Abenomics's achievements regarding macroeconomics and market and boldly pursue the transformation of Japan's economy and society including green transformation and digital transformation. Against the backdrop of the people's sense of crisis, I will design and implement a mechanism that will bring out other people's endeavor and promote investment especially in the areas of vulnerability in the Japanese economy. The time to design a world beyond the great reset cannot wait. To open up this new era, it is vitally important to have as many people as possible to connect amongst each other based on trust through continual conversations which transcend differences in values, circumstances, and views. The Davos forum has embodied such spirit and attracted political and economic leaders from all over the world for a long time. I am convinced that there is heightened importance for both political and economic sectors to discuss public affairs and act together beyond the differences. In this context, this forum will become even more significant. If finally I would like to conclude my remarks by wishing the continued success of Professor Schwab and the members of the World Economic Forum as well as all the guests. Thank you very much for your kind attention. Thank you very much Prime Minister for this forward-looking approach. You have really presented to us a comprehensive framework for what you and I quote you for the transformation of a liberal democratic society. You highlighted the different aspects. I think we have to use the capabilities of the force industrial revolution to lead our populations and populations to new capabilities and possibilities. I would like to, you mentioned already all the different aspects, but I would like to come back to the new capitalism and you said such a new capitalism also includes industries and governments working together and you spoke about new mechanism. Could you explain to a certain extent more in-depth what you mean with new forms of cooperation between business and governments and how it will help to advance your reform plans. Green digital investment into human capital preservation of a sound middle class resilience. These are 21st century type global challenges. Now even if we try to respond to them through over reliance on market competition or continuation of a small government policy as a doctrine, we are stuck in a stalemate. So unless we design a new foundation for public-private partnership, a sustainable and inclusive economic system cannot be realized. In creating a new framework for new public-private partnership and in fixing the market mechanism, there are areas that require globally common systems for financial and other markets and on the other hand there are areas that require systems that cater to the specificities of each country and each region depending on the history of social development and political circumstances, they're both such areas. And in realizing the new form of capitalism in a face manager plan, we will engage in a multi-layered review in order to establish a foundation for public-private partnership that is most effective as a whole. Carbon neutrality, digital investment in human capital, economic security. In these areas, our people have strong sense of curses that we are behind. But what appears to be a bit negative can be taken to our advantage. We can communicate squarely and sincerely to the people that we need to intensely engage in initiatives to gain back our weaknesses and implement these measures. So this could be taken for as an advantage to leapfrog policies for public using the public sense of crisis. In digitalization, the 5G coverage against the total population will elevate to 90% in two years' time. Summarine cable that encircles Japan will be developed in three years' time. We will be developing next-generation communication infrastructure to cover the whole of the Arpid Pelago and conduct an overhaul of digital regulation we will pump up private sector investment and double digital investment. At the same time, we will implement fine-tuned policies to cater to the digital divide in conjunction with municipalities and local governments. And in the area of greenification, transformation in industrial structure and behavior change both in demand and supply are necessary. Investment in this area will be doubled at the earliest possible timing and will become the engine for growth. Carbon pricing system will be presented to the people at the earliest possible stage by monitoring the situation in Europe and in the United States. Further, we will also support the development of Asian emissions trading market, technological cooperation and large-scale private sector investment in common infrastructure. And in the area of income distribution, a new mechanism is necessary. We need to drastically expand investment in human capital. For example, we will double investment at the earliest possible time and seek to increase investment even further, which is important from both the perspective of growth strategy and distribution strategy. The child-rearing generation and the young generation will become the leaders of the next generation. Their household income must be elevated. So in order to do that, we will engage in initiatives such as universal workers' insurance, institutional reform, employability skills trading program that fit the digitalization age and reform of the labor market. The question was whether Japan's industrial competitiveness or influence can be raised through initiatives driven by the private sector. I think that was the gist of your question. Tolerance against lack of fairness or check and balance by the media are different country to country. It is difficult to contemplate democratic country implementing staked capitalism type of industrial policy. However, all people have strong sense of crisis against 21st century type of challenges. In order to overcome our weaknesses in areas where we are clearly weak, we need to speed up investment in the private sector and investment in human capital, which must be supported by the government. And in implementing specific policies under the new form of capitalism, the government will try hard to accelerate large-scale infrastructure. Policies to catch up with the 21st century must be further increased amongst all developed nations. And I think the room for such improvement is rising amongst the major countries. Thank you. Thank you very much, Prime Minister. We see how you take a very systemic approach to improve Japan's competitiveness and really to transform its economy to the requirements we have to become much greener, much more digital and much more human-centered. Now, if I may switch to a certain extent to the topic and I know, Prime Minister, you have served your country also as a Minister for Defense and as a Foreign Minister. So, I would like to ask you the following question. The security condition around Japan and regional tensions are getting increasingly worrisome. Could you share the basic principles of how you envision your country's diplomatic strategy in the framework of the global tensions, which we see? Thank you. As you have mentioned, the security environment surrounding Japan is becoming increasingly harsh. North Korea has recently fired missiles in a series and missile technologies are improving significantly. In the East and South China Seas, unilateral attempt to change the status quo is becoming more serious. In terms of the U.S.-China relationship, not only in the areas of diplomacy and security, but in extensive areas such as state-of-the-art technologies or competition for critical materials, rivalry is intensifying. On the other hand, China's economic power or the close relationship with respective economies cannot be ignored. Under these increasingly harsh and complex international situations, I will hold aloft the flag of ideals for the future. I will have to continue to hold aloft and advance realism diplomacy for a new era, which is steadfast and resolute based on thorough realism. With these perspectives, universal values such as freedom, democracy, human rights and the rule of law will be emphasized. And for example, as part of that, I will do my utmost to realize a free and open Indo-Pacific. Regarding global challenges such as nuclear disarmament and climate change, Japan aspires to exert our leadership. And in terms of our capacity to speak up and the presence, I want to strengthen our power regarding universal values or tackling global challenges. In these areas, we will have a sharp focus in terms of our diplomacy. Thank you. Prime Minister, thank you. We are followed by numerous business leaders, but I would like just to invite two business leaders on behalf of the business community to raise questions. I ask first Christoph Weber, who is the CEO of Takeda Pharmaceutical, to raise the next question. Thank you. Thank you, Prime Minister for your address and vision, which we are very much supporting. My question is about economic security. We all know it's a very pressing issue and it has a consequence of many countries localizing their supply chain. At the same time, we see that it can impact the three flow of innovation. We also know that complex manufacturing processes always utilize components which can be sourced globally, which have to be sourced globally. So with this in mind, how do you see the industry and trade policy evolving in the future? Thank you very much. As global supply chain vulnerabilities and the risk of interdependency between states and regions become obvious, countries around the world are intensely competing to secure strategic materials and supplies and to gain critical technology. That's one characteristic of the society we live in today. And in order to respond to this global trend, we need to elevate the self-resilience of the Japanese economic structure and increase the technical advantage and make our Japanese technology indispensable and essential. We need to aim towards maintenance and strengthening of rules-based international order underpinned by fundamental values. At the same time, we also need to invite private sector investment in these areas in order to realize stable economic growth. We need to provide predictability and level playing field so that businesses can be confident in engaging in global businesses. And from such perspective, authorities and industries of major countries need to quickly engage in the making of global rules and procedures. Economic security along with digital technology and carbon neutrality will be the key and core to 21st century type of global rules that will require prioritized and intensified efforts of countries around the world. Currently, a diet session is in place and in the current session of the parliament, the diet, we are aiming to introduce new bills to support resilience of supply chains and improvement of reliability of critical infrastructure. Thank you. Thank you Prime Minister. I would like now to call on Mr Beno Apotis, the chairman and CEO of Air Liquide for the next question. Yes, good evening Prime Minister. It's a pleasure to be with you. I'll come back on the climate issue. All of us are working toward net zero. So what are the next steps and the necessary actions that Japan needs to take? And more specifically, as we confront this energy crisis with supply demand imbalance and price shock, can Japan achieve its carbon neutrality without harming the stable energy supply and the economy growth. Thank you. Thank you. Climate change is the common challenge for all humankind but we the Japanese, we as a population have developed our history. We have woven and spun our history in harmony with nature and therefore indeed we wish to take the lead in the response to climate change. In order to tackle climate change actions in the energy sector that accounts for more than 80 percent of greenhouse gas emissions are particularly important whilst reducing the emission of greenhouse gases in order to ensure stable and affordable energy supply into the future and to link these efforts to economic growth. A clear a clean energy strategy will be established. In addition to the supply side on the demand side such as the industry or specific sectors, in order to encourage energy transition, concrete measures will be introduced to support corporate investment. Going forward, extensive discussions will take place such as what each business is or each and every person can do to change their work style or to leverage their respective strength to transition to carbon neutral life styles. In such debates, the policies will be determined as to specifically in which areas by when and how much investment must be encouraged and what mechanisms the central government can implement. But the investment into this area will be doubled at least promptly. In particular, the power transmission and distribution infrastructure must be upgraded to accommodate the use of larger-scale renewable energy. Investment into storage battery must be expanded. Non-carbon power cells such as renewable, hydrogen, ammonia, or nuclear must be innovated and investment must be increased. Industrial structures must also be transformed. Our deliberations on these matters will be deepened. Thank you. Thank you, Mr. Prime Minister. You mentioned in your introductory remarks the importance of digital transformation, your efforts to accelerate digital transformations through regulatory and administrative reform. Now, what do we expect particularly from business in the framework of public-private collaboration? And here, many of Japan has leading business in the digital area, but many are also of a global business. What do you expect particularly from business and global businesses to help in the digital transformation process? Thank you very much. Now, the impact of COVID-19 has prolonged. And in this context, we are once again reminded of our behind-the-ness in terms of digitalization and especially the rural areas are especially challenged by social issues like aging and depopulation. And they are the ones that have strong needs to use new digital technology. So we are going to capture this opportunity to push forward Japan's digitalization at a stretch. The use of digital technology requires development of infrastructure implementation of services and rules making all at once as a package. First of all, the government will take the lead to develop optic fiber and 5G-related infrastructure. The coverage of 5G against the total population will be elevated to 90% in a matter of two years. And submarine cables surrounding Japan will be developed in approximately three years' time. Further, we will be implementing remote medical services online education and smart agriculture and front-runner models will be spread to other parts of the country on an nationwide basis. Now, these new types of businesses may sometimes come into conflict with existing systems and institutions. So we will create a plan to all at once overhaul 40,000 rules and institutions and laws and support the implementation of new technologies under new rules in such areas as drones and autonomous drive. And in so doing, we want to ask businesses from Japan and from other countries to invest. So we wholeheartedly welcome investment from the business sector. Thank you. Thank you, Prime Minister. We are running out of time and if you may allow me, I have a last question which I raise on the specific request of some business leaders. Of course, there are growing concerns about the Omicron variant. I think there were 30,000 cases in Japan. But the question is or the concern of the business community is certainly relaxation of the strict border measures. And my question, therefore, would be could you please share your plan to balance between countermeasures against pandemic and economic activities in the future? Thank you. 11 years ago, the Great East Japan earthquake struck our country. On that occasion, Japan demonstrated the high level of voluntary solidarity and cooperation to the world. This strength of Japan is effective and demonstrated as of today. Together with the high level of vaccination, when the Delta variant spread last summer, the percentage of patients becoming seriously ill or the mortality in Japan were low compared to other places. So called zero COVID policy against Omicron is not possible nor appropriate. By capitalizing on the strength of the Japanese community that have been demonstrated in the past, I am doing my utmost to maintain our social economic activities and to protect the high risk senior citizens and to minimize mortality. Based on the Japanese society's values of emphasizing the protection of the elderly and the vulnerable, I am responding very cautiously. And I ask for your understanding whilst taking these countermeasures, we have managed to strengthen the domestic medical system and the pathway of vaccination testing to the development of overly administered drugs, the system of prevention, detection and early treatment has been strengthened. At the moment, there is a clear difference in terms of level of infection at home and abroad. Therefore, for the time being, until the end of February, I have decided to maintain the framework of the current border control. Please kindly understand that the Japanese population are also strongly asking for strict border control, but for entry by persons with humanitarian importance or if it is in national interest, if there is a high level of emergency, entry will be permitted case by case as an exemption. As for the plans going forward, whilst we acquire increasing scientific knowledge about the Omicron variant, I shall flexibly make changes to the necessary policies. For example, very recently, we acquired the scientific knowledge that the latent period is shorter than the existing variants and therefore the current period for entries have been shortened. I look forward to the occasion when we overcome the global COVID-19 crisis by our collective wisdom and once again meet you and talk to you all in person. For that purpose, I will do all I can now. Thank you. Mr. Prime Minister Kishida-san, thank you for sharing with us your promising road map for the future. Very comprehensive. You can rely on us to accompany you in this journey. And I would also add related to the last question, I think I speak on behalf of all here business leaders and who is participating in this session. We are very much looking forward to visit personally again your wonderful country and we hope also to see you one day in person in the wonderful snow of Davos. So thank you for joining us today and we wish you all the best. And to all the members, thank you very much for your cooperation.