Abe cabinet endorses Japan economic reform plan

The cabinet of Japanese Prime Minister Shinzo Abe has approved economic reforms aimed at making companies more competitive. The move follows huge fiscal stimulus by Tokyo to overcome two decades of sluggish growth.

The reform blueprint adopted by the cabinet of Prime Minister Shinzo Abe was aimed at restoring strength in the world's third largest economy after years of sluggish growth and crippling deflation, the government in Tokyo announced Friday.

Abe's reforms include tax cuts for companies that restructure or that invest in factories or equipment.

The aim is to halt the downward trend in capital investment and boost such spending to 70 trillion yen annually over the next three years.