- Keidanren's Near-Term Activities in Key Policy Areas
- Election of Next LDP President
- Choice of Separate Surnames for Married Couples
- Grants-in-aid for Scientific Research (KAKENHI)
- WTO Reforms
- Cases of Information Improperly Taken by Nippon Life Seconded Employees
- Secondary Jobs
- Resumption of Nippon Life Advertising through Fuji Television
- The Passing of Professor Takatoshi Ito
Keidanren's Near-Term Activities in Key Policy Areas
While the Liberal Democratic Party is currently holding an election to choose its next president, Keidanren is hopeful that this will result in a more stable political environment and looks forward to working together with the new administration and moving ahead with the implementation of our key policies.
On that note, I would like to take this opportunity to outline the activities Keidanren will be pursuing in its key policy areas in the near term.
The first priority area for action is innovation. Our recently inaugurated Committee on Science and Technology Strategy has been fully engaged in discussions on future measures to promote innovation, and in May next year, is scheduled to unveil its proposal for the vision Japan should pursue to become a leading science and technology nation, along with a roadmap that will lead toward that achievement.
The second priority area for action is an integrated tax, fiscal, and social security reform. Integrated reforms that balance the benefits and burdens will be essential to making Japan's social security system sustainable. It is imperative that a national debate on this matter be held as soon as possible, and I plan to vigorously advocate for the creation of a national conference-like organization devoted to that end. In the meantime, I will have Keidanren hold full-scale earnest discussions on this issue of integrated tax, fiscal, and social security reforms and release a proposal of its own by the end of the current fiscal year.
Regional economic revitalization is the third policy focus for action. The key to its achievement will be the promotion of wide-area coordination driven by a New Regional Bloc Concept. In the context of Regional Revitalization 2.0, the government is advocating wide-area regional coordination, whereby diverse business organizations and other key stakeholders at the regional level will coordinate and implement multiple projects. To promote that idea, early this month, the government unveiled a detailed framework of policy support for project undertakings at the regional level. That approach aligns well with Keidanren's own thoughts on this matter, and I urge that the government continue making steady efforts to promote it. Moving forward, Keidanren will continue working toward implementation of the New Regional Bloc Concept in coordination with the government while drawing on the insights and knowledge of business organizations at the regional level.
Labor reform is the fourth policy focus. In the context of achieving sustainable growth, it will be essential to foster flows of labor into growth industries and fields, as well as into the SMEs that lead economic activity at the regional level. To that end, by autumn this year, we intend to draw up a plan for the promotion of such labor inflows and will have it reflected in the 2026 Report of the Committee on Management and Labor Policy. Additionally, we intend to have the 2026 Report convey a message echoing our position that it is essential to sustain the strong momentum in wage increase into next year and beyond and ensure that it takes lasting root.
The fifth priority area is private-sector economic diplomacy. To help sustain and strengthen the free and open international order based on the rule of law, Keidanren will actively promote deepening the CPTPP and expanding the number of member nations, EPA/FTA strategies including the conclusion of the Japan-Mercosur EPA, and measures to reform and restructure the WTO. As one step in that direction, Keidanren will draw up a proposal for international trade policy in October, and with that proposal in hand, I plan to visit the WTO later that month. Additionally, we will work to strengthen cooperation with fast-growing countries of the Global South. Speaking on behalf of Keidanren at the TICAD 9 meeting last month, Representatives of Keidanren took the podium during the session on public-private dialogue and engaged in discussion with leaders from 10 nations and one multilateral institution. I also delivered a report to the leaders of both Japan and India on a joint declaration calling for stronger bilateral economic relations, as adopted at the India-Japan Business Leaders Forum that convened during Indian Prime Minister Modi's recent visit to Japan. By the end of the year, our Committee on the Global South will draw up a proposal for fostering stronger ties with the Global South. In that undertaking, it will review the discussions at the Summer Forum and examine priority measures that deserve emphasis.
Securing an uninterrupted supply of affordable energy will be essential as a foundation of support for our efforts in these key policy areas. I recently visited the Onagawa Nuclear Power Station and will continue to follow up as efforts move ahead to steadily develop and implement Japan's 7th Strategic Energy Plan, including measures to harness decarbonized power sources.
My preceding comments basically outline the roadmap for Keidanren's policy actions in the near term. We will be engaged in comprehensive efforts from the perspective of total optimization, with the aim of developing solutions to the interrelated challenges. At the same time, Keidanren will place value on medium- to long-term perspectives for Japan as a whole, and be engaged proactively as an organization committed to fulfilling its responsibilities to future generations. When the new administration takes power, Keidanren will be ready to actively advocate for the implementation of the key policies I have outlined above.
Election of Next LDP President
(In response to a question regarding which economic policies in the LDP presidential election candidates' policy platforms Keidanren specifically supports, and its reasons why) Rather than any single policy, we face a mountain of pressing policy challenges, from integrated tax, fiscal, and social security reforms to the promotion of innovation and private-sector economic diplomacy aimed at sustaining and shoring up the free and open international order. We look forward to a substantive debate from a medium- and long-range perspective on a raft of issues, including measures to counter inflation—arguably the issue of greatest concern to consumers right now—policies to address recent tariff measures that have begun to impact our manufacturing sector, particularly policies that foster a virtuous cycle of growth and distribution, and ultimately, various policies that will contribute to sustainable economic growth. To quickly implement this array of policy measures, our hope is that the next LDP president will first act to build internal party unity, then work together with the opposition parties to restore a measure of political stability.
(In response to a query seeking the Chairman's views, from the perspective of establishing a stable political arrangement, on prospects for an expanded coalition government with the opposition parties) With so many issues facing us at home and abroad, it is vital that we quickly implement appropriate policies. That calls for strong leadership. We look forward to the establishment of a stable political arrangement centered around the LDP and Komeito. From the standpoint of quickly implementing various policy measures, we believe expanding the coalition government will be necessary and anticipate that is the direction in which the process is headed. Moreover, in putting together an expanded coalition, it will be important to aim for a long-term, stable political arrangement after carefully weighing the policy stance of each party.
Choice of Separate Surnames for Married Couples
(In response to a question seeking Keidanren's views on the cautious stance shown by candidates in the LDP's presidential election regarding a system allowing married couples to choose separate surnames) I surmise the situation you describe is more a reflection of the importance all the candidates have placed on building internal party unity, regarding that particular theme as well. My impression is that discourse during this election for a new LDP president has been shaped by balanced debate reflecting circumstances within the party itself. However, Keidanren's position on a system allowing a choice of separate surnames for married couples has not shifted at all. We want to see the next Diet session deliberate this issue in earnest.
Grants-in-aid for Scientific Research (KAKENHI)
(In response to a question seeking comment on the point that draft discussion points for the 7th Science, Technology, and Innovation Basic Plan cites plans to "expand" KAKENHI rather than incorporating plans to double them at an early date, as requested by Keidanren, and how this relates to the proposal Keidanren plans to submit by May next year) The 7th Science, Technology, and Innovation Basic Plan will be in force for a period of five years, starting in FY 2026. In the lead-up to the release of its planned policy proposal in May next year, Keidanren will convey our concerns on this issue and the position in various past proposals through its usual day-to-day channels. Although it is regrettable that draft discussion points for the 7th Basic Plan do not incorporate numerical targets for KAKENHI, we still view the "expansion" wording to be a step forward. Through the policy proposal activities, we will ensure that the "expansion" of KAKENHI becomes effective and push for the goal of doubling that budget. We recognize that ample latitude remains.
WTO Reforms
(In response to a question regarding the feasibility of WTO reforms promoted by Japan now that the US is turning more inward-looking) Given how things have transpired thus far, we realize this is a difficult challenge. However, we believe it is still highly worthwhile for Japan to demonstrate its leadership in sustaining and strengthening the free and open international order based on the rule of law and presses for reforms to the WTO. I am hopeful that the actions Japan takes to promote WTO reforms will win approval from nations worldwide and lead to the formation of a consensus.
Cases of Information Improperly Taken by Nippon Life Seconded Employees
(In response to a question regarding internal disciplinary measures for Nippon Life seconded employees who took internal information from host companies without authorization under the impression they were on a mission for their seconding firm) These were cases involving the improper acquisition of information, and I offer my sincere apologies for the concern and inconvenience it has caused for our customers, members of the press, and society at large. We view this incident with grave concern and are committed to implementing company-wide measures against any recurrence and endeavoring to restore the public's trust. Although the implicated employees on loan may have assumed they were on a mission for Nippon Life, I believe that was an incorrect perception on their part, and we plan to discipline them once all the circumstances surrounding this matter have been brought to light. However, at the same time, we fully recognize there were also issues with the organization's handling of this matter. Our head office and directors also share some responsibility, and we intend to take appropriate action in line with our internal rules and regulations.
(In response to a question seeking Chairman Tsutsui's thoughts regarding the discovery that these cases occurred during his tenure as chairman of Nippon Life) These incidents have been observed for the past six years, which overlapped with my tenure as chairman of the company. Although I did not give any instructions myself, I personally have to take this matter very seriously because these incidents occurred on my watch and remained undetected for a period of at least six years, with no action taken to address them.
(In response to a question regarding the revelation that Dai-ichi Life was implicated in a case resembling the one involving Nippon Life, and the awareness that gathering information from host companies has become a widespread practice among members of the life insurance industry) Regarding the factuality of the incidents and practices to which you refer, I cannot speak for the industry as a whole, nor do I have any relevant information at hand. The cases I am discussing here only have to do with internal affairs at Nippon Life, and we intend to take action to prevent any recurrence.
(In response to question regarding the progress Nippon Life has made toward becoming the biggest and the best insurance enterprise, a goal it declared when Chairman Tsutsui assumed his role as its president) At this point, based on a comprehensive assessment of various factors taken together, I would acknowledge that Nippon Life has not yet reached its goal of being the biggest and the best. In terms of being the biggest, it is true that Nippon Life is now a large insurance company in sheer scale, but measured in terms of various other indicators and dimensions, it is still not the biggest. As to being the best, that is something that correlates closely with corporate quality, but the facing challenge here has to do with the fact that compliance is the foundation for quality, and in that respect, I concede Nippon Life is still not the best.
Secondary Jobs
(In response to a question as to whether Keidanren intends to shift its position on secondary jobs, given the heightened attention over related risks of information leaks and conflicts of interest) In light of its economic and social value and also the circumstances surrounding the Japanese economy, I believe secondry jobs are something we should continue to support. In Nippon Life's case, the issue is not so much secondment itself but rather temporary transfers. However, it is a fact that secondary jobs also pose a comparable risk of information leaks and related issues. Looking ahead, I would like to devote careful study and consideration to ways of preventing inappropriate situations of this kind.
Resumption of Nippon Life Advertising through Fuji Television
(In response to a question regarding Nippon Life's decision to resume advertising through Fuji Television) Through separate communications with both Fuji Media Holdings and Fuji TV, we have confirmed the status of their efforts to prevent any recurrence of their recent scandal. Nippon Life decided to resume advertising through Fuji TV as it determined that sufficient progress has been made within the Fuji Media Holdings Group to improve conditions from the perspectives of human rights, sustainability, and risk management.
The Passing of Professor Takatoshi Ito
(In response to a request for the Chairman's thoughts on the passing of Columbia University Professor Takatoshi Ito) Professor Ito left a distinguished record of achievement in fields spanning from international finance to fiscal and monetary policy. I am aware he also contributed to Japan's economic policies through a range of recommendations and held a series of related positions in public service. On this occasion, I would like to express my heartfelt gratitude for the tireless dedication Professor Ito demonstrated over many years in the field of economics and to Japan's economic development.