The Ministry of Economy, Trade and Industry asked an advisory panel Thursday to look into the creation of more special economic zones in Japan in an attempt to reinvigorate the sluggish economy.

The Industrial Structure Council subcommittee was asked by METI to have a report ready by mid-July, giving it enough time to submit budget requests for 2003.

The government has already announced plans to give tax breaks to financial companies and information-technology firms that move into two special economic zones in Okinawa Prefecture.

The ministry believes that concentrating certain industries in particular areas will prompt competition among regions and bolster the nation's economy.

Special economic zones in China, where regions compete to lure foreign investment, have helped to improve the country's business conditions and economy.

METI also wants the panel to discuss the extension and enhancement of the industrial revitalization law, which expires in March 2003, in a bid to encourage further business restructuring and reconstruction.

The three-year legislation played a key role in bailing out debt-ridden supermarket chain operator Daiei Inc.

The panel is also expected to address fiscal and tax measures to promote private-sector research and development, new business investment, and ways to lure foreign direct investment into Japan, the officials said.