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Executives' Comments  Press Conferences Chairman Tokura's Statements and Comments
at His Press Conference

November 22, 2021

Economic package and Restoration of Fiscal Health

We appreciate the Kishida administration's Economic package while coexisting with the coronavirus as its first step to launch "new capitalism." The Council for Realizing New Capitalism emphasizes investment in human resources, including wage increases, recurrent education to facilitate human mobility, and reskilling. Stimulation of consumption requires not only wage increases but also removal of the causes of anxiety for the future. At the same time, fiscal discipline must also be taken into account. As the economy recovers from the COVID-19 pandemic and social changes transpire through GX and DX, wise spending, keeping the PDCA cycle in mind, is also necessary.

Employment Mobility

Membership-based employment characterized by collective hiring of new graduates, lifetime employment, and so forth is very effective when a company is working as one team in a predetermined direction in pursuit of certain goals. In an era of progressive economic globalization and social change, the employment system needs to be modified toward one that supports diversity and easy labor mobility. However, this does not mean rushing into the conclusion that a complete shift to job-based employment is needed since such thinking will actually mean the negation of diversity. I think a combination of membership-type and job-type employment is desirable when considering the best employment system for individual companies.

Spiraling Crude Oil Prices

It is my understanding that the government is considering further steps to be taken. Ensuring stability and predictability is important for energy prices. Oil prices are basically determined by demand and supply. Furthermore, while normally, price increases would mean an increase in new participants and supply, the current demand-and-supply situation is actually tense amid the trend of retreat from fossil fuels.

Wage Increase

Keidanren has long been calling on companies that are performing well to return an appropriate share of profits to the workers, who are important stakeholders. In that sense, the Kishida administration's plan to give tax incentives to companies that raise wages is very much appreciated. Operationally, we hope for an uncomplicated user-friendly system.

The Role of Nuclear Power in the Energy Mix

Nuclear power generation is expected to make up 20-22% of Japan's energy sources in Fiscal 2030. While the capacity of nuclear power plants is expected to decrease as a matter of course from now on, it will still be difficult to replace this completely with renewable energy. Nuclear power will still be needed in the future, and this will require research and development to enhance safety and securing the necessary personnel. It is important to engage in scientific and objective discussions based on Japan's own situation.

Japan-China Relations

Steady promotion of economic diplomacy at the private level is essential at all times and under all circumstances. The political world sometimes fluctuates violently. Total decoupling is impossible in a global economy. Cooperation and collaboration between Japan and China in dealing with global issues such as global warming and the COVID-19 pandemic must move forward in the spirit of competition with cooperation. Based on this thinking, Keidanren plans to organize another online summit meeting between Japanese and Chinese CEOs and other business leaders this year.

Executives' Comments