TOKYO, Feb 29: Japan’s government on Friday shelved a proposal to restrict foreign ownership of airports amid concern that the move would undermine wider efforts to attract investment.

Japan’s transport ministry drew up the bill to limit foreign ownership after it emerged that an Australian company had acquired nearly 20 per cent of the operator of buildings at Tokyo’s Haneda Airport.

But officials said on Friday that the government had decided to come up with a new strategy that would guarantee security at airports while also allowing foreign investment.

“We need a little more time to discuss the security guarantees while allowing foreign investment,” Transport Minister Tetsuzo Fuyushiba told a news conference.

Japan is trying to make foreign investment one of the main drivers of economic growth as its population shrinks in a rapidly greying society.

The plan to restrict foreign airport ownership to less than a third of voting shares exposed a rare division between government ministers.

The split came as the operator of Tokyo’s other airport, Narita International Airport, prepares to go public next year.

Opponents of the bill, who include Financial Services Minister Yoshimi Watanabe and Economic and Fiscal Policy Minister Hiroko Ota, argued that it would set back Japan’s efforts to attract foreign investment.

Watanabe welcomed the decision to put off the plan to cap foreign investment.

“We were able to reconfirm that our country’s capital market is a safe place to invest. The issue had been discussed without full consultations, but it’s good to have avoided the irresponsible move,” he said.

Experts also warned that a cap on foreign ownership would tarnish Japan’s image as being open to investment.

“It would be better to keep the current government control on international airports rather than creating regulation that discriminates against foreign firms,” said a professor.—AFP