Japan is planning subsidies to boost corporate investment in factories making environment-friendly products, in a fresh economic stimulus package expected next month, a report said Friday.
The new stimulus being considered by Prime Minister Naoto Kan is also likely to include the expansion of programmes for job seekers and extra financing for small and medium-sized businesses, the business daily Nikkei reported, without giving its sources.
The report came as Kan is set to meet Bank of Japan Governor Masaaki Shirakawa on Monday to discuss the appreciation of the yen, which recently hit 15-year highs against the dollar, threatening a fragile export-led recovery.
Speculation is rife that the central bank will face more political pressure to introduce further easing policies.
Under a programme targeting low-carbon industries, the government will give subsidies for investment in production plants for automotive lithium ion batteries, LED lighting and other environmentally friendly products, the report said.
The government will also bolster services to young people seeking jobs and will increase subsides to companies that hire new graduates on a trial basis, it said.
The stimulus will also include expanding the financing programme to support small and mid-size businesses whose earnings have been eroded by the strong yen, it said.
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