New Year’s Reflection by MATSUMOTO Hisashi, Minister for Digital Transformation

I wish everyone a very happy new year!

As of last December, the number of My Number Cards registered by citizens has exceeded 100 million since the launch in 2016. The use of the My Number Card has steadily expanded, reducing the burden of administrative procedures, such as relocation and its related procedures, improving access to healthcare through its function as a Health Insurance Certificate, and facilitating private-sector services such as opening of bank accounts and cashless payments. With approximately 80 percent of the population now holding a My Number Card, the foundation for a digital society in Japan is considered firmly established.

This year, we must further advance Healthcare DX and Nursing Care DX, leveraging My Number Card as a Health Insurance Certificate. The system of “My Number Emergency Service” is already implemented, allowing paramedics to access patients’ medical information during emergency transport. Moving forward, we will promote the introduction of electronic medical records at medical institutions across the country, facilitate the secondary use of medical information, and digitalize procedures such as medical expense subsidies and maternal and child health. These efforts aim to provide higher-quality medical care and support, improve the efficiency of healthcare professionals, and promote drug development. Healthcare DX initiatives have now entered a stage of development, “from points to lines to surfaces.”

One of the reasons for establishing the Digital Agency was that benefits were not delivered to the public in a timely manner during the COVID-19 pandemic. By the end of November last year, approximately 63 million public money receiving accounts had been registered, covering nearly half of the population. Local governments and related entities made a total of 32 million inquiries to the Digital Agency for information on public money receiving accounts for benefit payments. This demonstrates that the public money receiving account is now used as essential infrastructure for public benefit payments. Moving forward, in addition to the proactive public communications, we will devise and implement measures, including promoting the registration of the public money receiving accounts for pensioners upon confirmation of the individual’s intention.

Additionally, Prime Minister Takaichi stated in her Policy Speech that the government will start working on the design of a system for tax credits with benefits at an early stage. Developing this system requires digital infrastructure to ensure swift and reliable delivery of benefits. Digital Agency will also contribute to the design of this tax credit system with benefits from the perspective of developing digital infrastructure for benefit payments, while continuing to advance the registration system for public money receiving accounts.

With related to the core business systems of local governments, we will provide careful support to ensure a smooth and secure transition to a standard-compliant system using the Government Cloud. Based on the “Comprehensive Measures” adopted June last year, we will keep working closely with local governments to control and optimize operational costs after the transition, while supporting them achieve their project goals and expected outcomes.

Japan, where labor shortages are increasing, it is important for government agencies to proactively utilize AI in order to maintain administrative services and enhance their quality. Digital Agency, in cooperation with relevant ministries and agencies, will promote the expanded use of generative AI by providing “Gennai”(*) an environment that allows government employees to use AI safely and securely, and by developing government-held data to support the broader adoption of “Government AI.”
(*)The name “Gennai” is taken from “GenAI,” the English abbreviation of Generative AI, and also refers to “Hiraga Gennai”, an inventor from the mid-Edo era in Japan. It reflects our intention for this initiative to serve as a place where diverse innovations created through generative AI can come together.

Furthermore, at the Meeting on Digital Administrative and Fiscal Reform, we will promote DX policies to maintain and improve essential public services, such as healthcare, child-rearing support, transportation, water and sewerage systems, and administration, despite the declining population. We will also prepare systems to enable smooth data use for AI, while ensuring a proper balance with information protection.

We understand that some people may feel anxious or hesitant to digitalization. However, Digital Agency aims for “Human-friendly digitalization where no one is left behind” and consider it a crucial mission to clearly demonstrate the benefits of digitalization to everyone, fostering understanding and reassurance. As the lives of every citizen become closely linked with digital technology, it is crucial to develop “basic habits” for information security, just as we routinely wash our hands and gargle to prevent infectious diseases. These habits include: ① not reusing passwords, ② keeping PCs, smartphones, and other devices updated to the latest versions, and ③ not opening emails or SMS from unknown sources. We will also work closely with relevant ministries and agencies to enhance digital literacy, including information security.

Thank you for your attention. I sincerely appreciate your continued support and look forward to your cooperation in the year ahead.

MATSUMOTO Hisashi
Minister for Digital Transformation