The government will draw up a concrete action plan on economic structural reform by the end of the year to steer the nation toward the new challenges presented by information technology, a graying society and the environment, Prime Minister Yoshiro Mori indicated Thursday.

During the second meeting of his government-private sector panel on industrial rebirth, which consists of 19 state ministers and 15 business leaders, Mori said his administration will also decide on concrete measures to deal with policy issues of vital importance by the next meeting, which will be held later this month.

To this end, International Trade and Industry Minister Takeo Hiranuma presented a draft of issues to be addressed. The meeting was held at the Prime Minister's Official Residence.

These comprise systematic reform for dynamic corporate management, revitalization of small and medium-size enterprises with the help of IT, technological reform for creation of strategic industries, promotion of skilled workers, buildup of industrial groundwork designed for a graying society and environment preservation, and strengthening of industrial cost competitiveness.

Underlining the importance of developing an environment that will enable citizens and companies to cope with the IT age, Mori placed particular emphasis on supporting managerial reform of SMEs and their securing of skilled workers.

Participants from the business sector urged the government to review corporate legal and employment systems to keep up with IT, while calling for the need for greater grants of stock options, early introduction of a defined-contribution pension system, and other finance and tax policies favoring IT-oriented companies.

On renewal of the state's current science and technology basic plan, Mori said the panel's proposals on mobility of researchers and industry-academia collaboration on competitive research and education will be duly reflected in the revision.