Japan¡¯s parliament on Friday enacted a bill to revise the postal privatization and related laws, paving the way for subsidies to preserve the nationwide post office network.
The Upper House adopted the bill by a majority vote at a plenary meeting, following its passage through the Lower House on Tuesday.
Under the new subsidy program, the government will provide about ?65 billion ($403 million) in subsidies annually from fiscal 2027, using funds including dividends from government-held shares in Japan Post Holdings.
To strengthen the group¡¯s financial base, the revision will oblige Japan Post Holdings to keep its equity stakes in Japan Post Bank and Japan Post Insurance above one-third for the foreseeable future.
Before the revision, Japan Post Holdings was required to dispose of its stakes in the two financial units as early as possible.
The legislation designates community-oriented services, including the handling of local government work, as part of the post offices¡¯ core operations that need to be undertaken unless they pose problems to other operations.
The legislation also calls on Japan Post, the mail and parcel delivery company wholly owned by the holding company, to improve its operational efficiency through digital technologies and make more effective use of business resources.
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