- Trump Tariffs
- Innovation
- Choice of Separate Surnames for Married Couples
- Relations between Japan and South Korea
- Wage Increases
- Restoration of Fiscal Health
- The Diversity of Keidanren Executives
- The Passing of Shigeo Nagashima, Lifetime Honorary Manager of the Yomiuri Giants
Trump Tariffs
(In response to a question regarding the progress of tariff negotiations between Japan and the US) I commend the Japanese government for its energetic engagement with the US in those talks. Despite the five rounds of ministerial-level talks held to date, differences still separate the two sides, and the situation does not yet indicate they are approaching a resolution. This has made conditions for small and medium-sized enterprises extremely uncertain, and the sense of unease is strong. The Japanese negotiating team will need to maintain its resolve in the talks moving forward. Having an opportunity for a top-level meeting between Japan and the US during the upcoming G7 Summit will be crucial, and I am hopeful that will help the two sides move closer to an agreement.
Of course, in light of the adage that things can go wrong when you hurry, I want to see the Japanese negotiating team work to find an opening in upcoming negotiations by heeding the "hurry slowly" approach advocated by Prime Minister Shigeru Ishiba and Minister Ryosei Akazawa and assuming the "hurry carefully" stance recommended by Honorary Chairman Masakazu Tokura in its dealings with the US side.
(In response to a question regarding the Chairman's views on the Japanese government's negotiating stance) I think demanding cancellation of the recent series of tariff measures should be the government's core stance throughout these negotiations. Although I am not familiar with the details surrounding each of the issues on the agenda for discussion, to move the talks forward, it will also be important for Japan to maintain a perspective on how it can respond to the demands presented by the US side.
Innovation
(In response to a question regarding the status of deliberations by the newly inaugurated Committee on Science and Technology Strategy) The Committee on Science and Technology Strategy is scheduled to hold its first meeting this June. After that, and including the Keidanren Summer Forum, it will meet for discussions once every two or three months, taking about one year to formulate a strategy proposal. I look forward to seeing it hammer out a proactive strategy.
(In response to a question regarding the direction of efforts to quickly double Grants-in-Aid for Scientific Research, as advocated in the Future Design 2040 vision, as well as the sources of funding for that effort) The Committee on Science and Technology Strategy will be engaged in an exploration of strategies to beef up Japan's industrial competitiveness through seamless approaches that integrate basic and applied research on new technologies with their societal deployment. In that process, we will want to pursue a broad-based discussion of how the public and private sectors can make necessary investments in research and development. The Committee plans to discuss investments in basic research, including Grants-in-Aid for Scientific Research, as key components of that discussion.
The idea is to encourage to double the scale of Grants-in-Aid for Scientific Research. Regarding the funding resources for that increase, the Committee will discuss the general outline during its meetings and the Keidanren Summer Forum, and will submit a proposal as necessary.
(In response to a question as to whether innovation has been hampered by lakes of cooperation between startups and large corporations) I want to take comments of that nature seriously. However, it is true that the general trend has shifted. I am aware that more and more students prefer to get jobs with startup enterprises now than with large companies. Also, supplying risk funding to startups is a trend that has taken hold among large firms. Another important perspective for large firms is the idea of pursuing growth hand-in-hand with startups through collaboration, and Keidanren is interested in encouraging such arrangements. In the interest of expanding both the numbers and capitalization levels of startups (the number of so-called unicorn companies) through undertakings of this kind, Keidanren intends to continue with efforts to put the strategies of its Vision for Startup Breakthrough (March 2022) into action.
Choice of Separate Surnames for Married Couples
(In response to a question seeking Chairman Tsutsui's thoughts on the three legislative proposals submitted by the opposition parties regarding the choice of separate surnames for married couples, as well as the Chairman's own stance on this issue) It is extremely significant that this is the first time in 28 years since the Diet took up this issue in 1997. My hat is off to our political parties for drawing up these legislative proposals. The important thing is to create a society in which people have a choice. From the standpoint of having a social system that increases the range of choice for individuals, I look forward to the resolution of this long-standing issue through constructive debate by the ruling and opposition parties with the goal of creating a framework based on recommendations made by the Legislative Council. That is Keidanren's stance and my own position as well. Women account for about 90 percent of the employee workforce at Nippon Life Insurance, the company I belong to, and I recognize that many consider this topic a serious issue.
(In response to a question regarding whether the political parties should impose party discipline on their members in the context of Diet deliberations) I will refrain from commenting, as deciding whether to impose party discipline on their members is a matter that the individual parties themselves should address.
Relations between Japan and South Korea
(In response to a question seeking the Chairman's thoughts on the inauguration of the new administration of South Korean President Lee Jae-myung) I congratulate President Lee on his election win. Although his nation has faced conditions of disorder, I anticipate President Lee will build a political condition to tackle a range of internal and external issues. With the current turmoil now shaking the international order, it is essential that Japan work to sustain and strengthen the international order by extending its cooperation to South Korea as a nation with which it shares the same ideals of freedom, democracy, and the rule of law. June 22 will mark the 60th anniversary of the normalization of diplomatic relations between Japan and South Korea. In the interest of fostering closer bilateral ties, it is imperative that our two nations work to strengthen their levels of dialogue and exchange in various fields.
(In response to a question regarding Keidanren's action) Keidanren wants to develop close working ties with its counterpart, the Federation of Korean Industries (FKI). Additionally, we are interested in contributing to the further development of bilateral ties through utilization of the future-oriented Japan-Korea Future Partnership Fund created in 2023.
Wage Increases
(In response to a question regarding the Chairman's thoughts on a government policy blueprint aimed at establishing norms achieving real wage growth of 1% annually, and the measures needed to meet that target) I attended, for the first time, the June 6 meeting of the "Council of New Form of Capitalism Realization," which discussed a revised FY 2025 proposal for a "new capitalism grand design and action plan" that included fostering real wage hikes of 1% per annum as a norm. I commend the revised proposal for comprehensively integrating specific measures to transform Japan into a "Science and Technology-Oriented Nation" and a "Trade and Investment-Oriented Nation"—goals championed by Keidanren's Future Design 2040 vision. Under the circumstance of a steady and sustained inflation level (of around 2%), the goal of fostering real annual wage increases that are around 1% higher than the rate of inflation is also in line with Keidanren's own position. To ensure that the current momentum for wage increases takes firm hold, Keidanren continues making efforts with even greater dedication.
(In response to a question seeking the Chairman's thoughts on the results of an annual survey [June 4] conducted by the Japan Chamber of Commerce and Industry on wage revisions by small and medium-sized enterprises, and specifically the larger number of respondents this year that stated "undecided at this time," citing uncertainties about the future due to lagging price pass-through and the impact of US tariff measures) I think the increase in the number of companies that responded "undecided" stems from the murky outlook for the negotiations over US President Donald Trump's tariff measures and uncertainty among many SMEs about the future. Meanwhile, I think we have achieved a certain measure of progress in fostering appropriate price pass-through. Keidanren has invested its efforts in promoting acceptance of its Declaration of Partnership Building initiative, for example, issuing (in January 2025) a joint request, signed by the leaders of Japan's top three business organizations, calling for society-wide adoption of the practice of price pass-through. Of course, the drive to achieve price pass-through is only part of the way toward its goal, and consumers are more sensitive to prices when inflation is rising. These are factors that companies do take into consideration, but I do want to invest more energy in promoting the tenets of our Declaration of Partnership Building and fostering wider acceptance of proper price pass-through.
(In response to a question seeking the Chairman's assessment of the findings by the Japan Chamber of Commerce and Industry and Japanese Trade Union Confederation (RENGO) that SMEs wage hikes in FY 2025 had reached the 4% level) Compared to the current trend to date, the result is certainly commendable, and I see it as a reflection of the efforts SMEs have been making in this context.
Restoration of Fiscal Health
(In response to a question regarding the Chairman's stance on the restoration of fiscal health as articulated by provisions in the draft version of the Basic Policy on Economic and Fiscal Management and Reform [also known as "Big-boned Policy 2025"] regarding fiscal health targets and measures to ensure smooth purchases of Japanese government bonds) As the Cabinet has not yet formally approved "Big-boned Policy 2025," I would prefer not to comment on its content. Generally speaking, I realize that encouraging smooth purchases of Japanese government bonds is an important theme. The task of restoring the nation's fiscal health is also an issue connected with reforming social security system on a fundamental level. The world is in fact watching the approach Japan demonstrates in restoring its fiscal health, and maintaining global trust in Japanese government bonds is crucial.
The Diversity of Keidanren Executives
(In response to a question seeking the Chairman's thoughts, from the perspective of promoting diversity, on Keidanren having only a single female vice chair currently) I have been constantly aware of matters of diversity and will stick to my policy of broadly and actively recruiting a diverse team of individuals who excel in their character, insights, managerial expertise, and leadership, regardless of gender, age, or business or industrial affiliation. Now, turning to the focus on women, Reiko Akiike, Managing Director of the Boston Consulting Group, has been appointed to serve as a new Vice Chair of the Board of Councillors, while former Keidanren Vice Chair Tomoko Namba, Founder and Executive Chair of DeNA Co., Ltd., also has been appointed to Vice Chair of the Board of Councillors. Additionally, Mitsuko Tottori, Representative Director and President of Japan Airlines Co., Ltd., will chair the Committee on Consumer Affairs. I look forward to the advice and guidance I receive from our diverse executive team and I anticipate they will all demonstrate their excellence.
The Passing of Shigeo Nagashima, Lifetime Honorary Manager of the Yomiuri Giants
(In response to a request for the Chairman's thoughts on the news of Mr. Nagashima's death) In grade school, I myself played little league baseball, and at that time, Nagashima the player was the image of what I wanted to be. He was a national superstar to everyone, Giants fans or not. Mr. Nagashima gave us courage along with many dreams, and for that, I am forever grateful. I offer my heartfelt condolences to his friends and loved ones.