Japan is considering establishing a special state investment fund – modelled on Singapore’s Temasek – to manage part of its $909bn in foreign exchange reserves and improve returns while mitigating the long-term impact of the country’s ageing population.
The idea is being discussed within a key economic advisory council headed by Shinzo Abe, prime minister, by the policy study group of the Financial Services Agency, and also within the ruling Liberal Democratic party. The discussions follow similar moves by neighbours China and South Korea.
