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

October 3, 2022

Bank of Japan Tankan (Short-Term Economic Survey) September 2022

(In response to a question on the background to continuation of deteriorating business sentiment in the manufacturing industry) Exporters may be taking a somewhat pessimistic view of the slowdowns in the European and US economies due to monetary tightening. However, as signs appear of the COVID-19 pandemic subsiding, improving business sentiment in the non-manufacturing sector reflects rising service consumption within Japan and higher hopes for inbound tourism.

Exchange Rates

Exchange rates reflect economic fundamentals, and it is important that they move stably without sudden fluctuations.

The current yen depreciation stems from speculative trends driven by the interest rate gap between Japan on the one hand and Europe and the US on the other. The yen depreciation trend is likely to continue for some time as Japan continues to ease monetary conditions while Europe and the US raise policy interest rates and prioritize measures to address cost of living increases.

While continuing to monitor short-term market trends, from a medium- to long-term perspective Japan needs to raise its self-sufficiency rates for energy and food, and build a resilient economy that is not vulnerable to exchange rate fluctuations.

Comprehensive Economic Policy (tentative title)

(In response to a question about the economic policy the government is said to be developing this month) I welcome this policy, which is expected to maintain the path toward a new form of capitalism and include measures to address the urgent issues of the high cost of living and yen depreciation.

Sources of Revenue for Defense Spending

(In response to a question about reports that the government is considering a corporate tax hike as a source of revenue for defense spending) Defense is crucial to protect the country as well as the lives and property of its people, and is a matter that the people as a whole should consider and deal with. Thus, it is natural for the burden of defense spending to be spread broadly and thinly across the entire population. It is essential to thoroughly discuss various points, including benefits and burdens. Of course companies, as corporate citizens, must not turn their backs on such discussions. I recognize that it is not a matter of going ahead with discussion of corporate tax alone.

Evaluation of Kishida Administration's First Year/Views on Promoting Partnership between Business and Politics and Evaluation of Major Parties' Policies 2022

We currently face the challenging circumstances of rising costs and fluctuating exchange rates due to the COVID-19 pandemic and Russia's invasion of Ukraine. In this situation, the government is advancing a series of powerful policies based on the philosophy of "new capitalism" to achieve economic growth through green transformation (GX) and digital transformation (DX) as well as investment in science and technology, innovation, startups, and human resources. It aims to create a virtuous cycle of growth and distribution that will distribute the results of such growth. To promote GX, as well as encouraging the establishment of renewable energy as a main power source, it is moving ahead with restarting nuclear power plants and examining development and construction of innovative next-generation reactors. On the distribution front, I welcome the discussion taking place aimed at building a social security system oriented to all generations.

(In response to a question regarding Keidanren's Evaluation of Major Parties' Policies and political donations) It is essential for society to bear appropriate costs to properly maintain democratic government, and companies, as corporate citizens, have a duty to shoulder such costs. Keidanren's Evaluation of Major Parties' Policies offers our member companies and organizations guidance for making political donations based on independent judgements.

2030 Winter Olympic and Paralympic Games

Travel continues to entail difficulties due to the COVID-19 pandemic. The Olympic and Paralympic Games, which bring athletes from around the world together to compete in the same place, are highly significant events that inspire people and remind them of the importance of human exchange and friendship. In addition, 2030 is the target year for achieving the UN Sustainable Development Goals (SDGs). It is tremendously meaningful for Japan, which has been a powerful advocate for the SDGs, to host the Olympic and Paralympic Games and contribute to realizing a sustainable society, including the promotion of barrier-free access.

Executives' Comments