- The Kishida Administration
- LDP Presidential Election
- Representative Election for the Constitutional Democratic Party of Japan
- Nippon Steel Corporation
- Osaka-Kansai Expo
- Foreign Exchange Rate
- Seven & i Holdings Co.
The Kishida Administration
(In response to a question about the evaluation of Kishida Administration) I commend the Kishida administration for formulating appropriate policies and implementing measures in a variety of areas. Domestically, the Japanese economy is on the verge of a completely exiting from deflation as the push to eliminate the deflationary mindset has accelerated. In diplomacy, Japan has significantly increased its presence globally through improved Japan-South Korea relations and the success of the G7 Hiroshima Summit, where Japan served as the chairing country. What I appreciate most is the promotion of Green Transformation (GX). The Kishida administration has boldly advanced initiatives such as the utilization and promotion of nuclear power generation, the introduction of growth-oriented carbon pricing, and the leadership of the Asia Zero Emission Community (AZEC), all at an astonishing speed. I express my sincere respect for these efforts.
(In response to a question about the spring labor-management negotiations during the last two years under the Kishida administration, in which politics strongly demanded higher wages from the business community) I believe that Keidanren would have actively worked to raise wages even without the request by the government. In this context, combined with the government's serious efforts to improve the environment for wage increases, including the expansion of the tax system to promote wage increases and the optimization of business transactions, I believe that we have achieved the high level of wage increases for two consecutive years.
On the other hand, we recognize that some companies, especially small and medium-sized enterprises (SMEs), have been forced to raise wages to attract human resources. To continue raising wages in the future, including SMEs, it is necessary to spread the awareness of the importance of appropriate price adjustment, including labor costs, as a social norm.
LDP Presidential Election
(In response to a question about his expectations for the LDP presidential election) There are many candidates for the LDP presidency this time. I would like to see a wide-ranging discussion on not only short-term policies but also medium- to long-term policies, covering both domestic and foreign policy, in a way that is easy for people to understand.
(In response to a question whether Keidanren has any intention of supporting a particular candidate) I have no intention of supporting any particular candidate. I look forward to active policy discussions among the candidates.
(In response to a question about the exchanges between Mr. Ishiba and Mr. Koizumi during their meeting on March 9, particularly regarding energy policy) I told both candidates that I was looking forward to policy discussions on Japan's future. I felt that Mr. Ishiba was very interested in the issues of regional development and correcting disparities. Mr. Koizumi seemed very fresh, and I told him that I expected him to be the hope of the next generation.
Regarding energy issues, I told the candidates that since Japan is an island nation with no natural resources, the use of nuclear power is very important along with renewable energy. Mr. Ishiba said that although it is reported in the media that he is for zero nuclear power plants, he is by no means opposed to the use of nuclear energy. Mr. Koizumi also recognized the importance of energy policy.
(In response to the question about the introduction of a system that allows spouses to use their given surnames at birth which is an issue in the presidential election) It must be decided by universal consensus. I welcome the fact that the idea of introducing this system has become one of the main points of discussion. Public interest is growing, and Keidanren will keep a close eye on the outcome of the debate.
(In response to a question about restrictions on layoffs) The government is now pushing forward labor market reforms to promote independent career development by individual workers and to make employment more fluid. What is needed is to comprehensively promote measures such as the promotion of skills development and skill enhancement, the strengthening of the employment matching function, and the establishment of an employment safety net. How to regulate dismissals is one part of the whole discussion.
(In response to a question about taxation of financial income) My understanding is that Mr. Ishiba has in mind, in particular, those with extremely high incomes, and his claim stands on the perspective of "creating an ample middle class" and correcting disparities, which Keidanren also advocate, rather than broadly taxing financial income, including that of the general public. In the midst of the "shift from savings to investment," we must ensure that there will be no decline in investment.
(In response to the question about Mr. Motegi's policy to strengthen the defense capability and establish a child and child care support program which was decided under the Kishida administration with no tax increase) I was a little surprised since it was the decision made under the Kishida administration. The policy direction is the same as in the past, and it is to be financed by tax revenues that will increase through economic growth. However, there are points that are not clear, such as how long it will take to realize the plan, which makes it difficult to evaluate.
Representative Election for the Constitutional Democratic Party of Japan
The LDP presidential election and the CDP presidential election will be held at the same time, and I am paying close attention to the policy discussions that will take place regarding important policies that will determine the future of Japan. The fact that a female member of parliament, who has been elected only once, ran for the CDP representative election is also very significant.
Nippon Steel Corporation
(In response to a question about reports that President Biden will issue a cease-and-desist order regarding Nippon Steel's acquisition of U.S. steel) I believe that security and free trade should be compatible, and I hope the United States will lead in this area. The U.S. attracts many foreign investments, and this issue is drawing considerable attention. I strongly hope that fair and proper procedures will be carried out without being influenced by the U.S. presidential election.
I will refrain from going into details as this is an individual company matter, but Mr. Hashimoto told me before the Chairman and Vice Chairman's meeting (September 9), that Nippon Steel believes that this acquisition plan will strengthen U.S. Steel's competitiveness and contribute to the development of the American industrial sector. However, the plan is currently at a critical juncture, and he is anxious about its progress.
Osaka-Kansai Expo
(In response to a question on the IR construction during the Expo) The Expo and the IR are not mutually exclusive. I would like to make both succeed. However, it is important that IR construction not interfere with the operation of the Expo. Under the leadership of the government, the relevant parties are currently working hard to find a practical solution. I believe that a solution exists.
Foreign Exchange Rate
Regarding a level that adequately reflects economic fundamentals, I have stated that a rate above 150 yen per dollar indicates an overly weak yen. It is very difficult to determine the appropriate level, I believe that most companies currently assume an exchange rate of around 145 yen.
Seven & i Holdings Co.
(In response to a question about Seven & i Holdings' response to the takeover offer from Canada's Alimentation Couche-Tard) As Japan aims to be a trading and investment nation, we should not comment on takeover offers from overseas from the standpoint of reciprocity. However, I believe the weak yen has an impact. What is important is whether an acquisition truly enhances corporate value, and I hope that serious discussions will take place.