- Prime Minister Ishiba's Resignation
- The Minimum Wage
- Curb on Activities by Keizai Doyukai Chairperson Niinami
- Fuji Television
Prime Minister Ishiba's Resignation
(In response to a question seeking the Chairman's thoughts on the announcement on September 7 by Prime Minister Shigeru Ishiba of his resignation) In light of the outcome of the recent Upper House elections, my impression is this was a weighty decision the prime minister made to let the political process move forward.
On the foreign policy front, Prime Minister Ishiba's administration succeeded in reaching an agreement with the US on tariff measures, while on the domestic front, it won approval of several legislative measures, including its proposal for the FY 2025 budget. Additionally, it pursued policies that were aligned with Keidanren's vision for Japan as a powerhouse in the fields of science and technology as well as trade and investment.
Japan faces an array of pressing issues both at home and on the international stage. To help address these challenges, Keidanren has drawn up a roadmap and proposed initiatives for implementation of its FUTURE DESIGN 2040 vision. In effect, the Liberal Democratic Party will be choosing a new leader at a key moment that demands steps to translate these initiatives into action. I want to see its new leader act to reinforce LDP party unity, establish a stable political posture, and quickly implement policies.
(In response to a question seeking the Chairman's views on the LDP, given Prime Minister Ishiba's decision to resign despite the results of many public opinion polls showing more support for him to stay on rather than quit) Looking back on factors surrounding the recent Upper House election and its outcome, I believe the LDP has certain introspection. The public's perspective and expectations should always be the mandate for the actions of those who engage in politics and governmental affairs. However, I think the prime minister's choice to quit was a crucial decision that reflected his desire to prevent deeper divisions within his own party and the urgency of allowing the political process to move forward. I look forward to seeing the LDP get off to a fresh start, rebuild its party unity, and that politics will be guided under a stable framework centered on the ruling coalition of the LDP and Komeito, which together form the largest bloc in the Diet..
(In response to a question seeking comment on the importance of political stability) With the LDP has become a minority ruling party and faces heightened political uncertainty, while careful deliberations have taken place, but concerns have mounted over the slowing pace of its decision-making and the deterioration in its fiscal discipline. Even if a new coalition is assembled and efforts are made to coordinate on individual policies, I believe the LDP and Komeito will still form the core of that coalition and am hopeful they will succeed in establishing a stable political arrangement within that framework.
With a month remaining in the lead-up to the LDP presidential election, the political process cannot be allowed to stall. Should that become a matter of concern, the markets will take notice. During the LDP presidential election period, I want the current administration to continue to properly fulfill its duties in both domestic and foreign affairs.
(In response to a question regarding the policies the Chairman wants the new LDP president to champion) I want to see the new LDP leader place emphasis on medium- and long-term perspective and the perspective of Japan in the world, while keeping a close watch on international trends. As one of the key themes in this context, I can cite the integrated reforms in taxation, fiscal policy, and social security that will pave the way for implementation of Keidanren's FUTURE DESIGN 2040 vision. We need a national debate on this matter as soon as possible, and I plan to vigorously advocate for the creation of a national council-like organization devoted to that end.
(In response to a question regarding the Chairman's expectations toward the LDP's next president in terms of dialogue with the markets) Like some economies in Europe and North America, Japan also has an enormous debt burden. Accordingly, now that ultra-long-term interest rates are on an upward track, it is even more imperative that Japan take steps to achieve fiscal health. Moreover, the economy has now begun to feel an impact from the Trump tariffs. Given these circumstances, it is extremely important that we pay close attention to the dialogue our leaders establish with the markets.
(In response to a question regarding Keidanren's stance on fiscal health in light of the recent record high set by the Nikkei stock average on back of expectations the next LDP president will support expansionary fiscal policies) I think stock prices today were influenced by the executive order on tariff measures recently signed by President Trump, formally enacting the new Japan-US trade deal and reducing the tariff rate on automobiles, among other goods, as well as the firming trend in domestic capital investments, which is behind a strengthening trend in the Japanese economy.
To date, Keidanren has stressed the need for an integrated package of tax, fiscal, and social security reforms, and it will maintain that stance going forward, given the continuing importance of monitoring and proposing measures aimed at achieving fiscal health.
The Minimum Wage
(In response to a query seeking the Chairman's views on decisions regarding regional minimum wages this fiscal year, as well as Keidanren's stance on raising the minimum wage) My impression is each of the deliberative panels on regional minimum wages reached their conclusions through sincere deliberations based on local economic conditions and related data.
My understanding is that more reports submitted this year called for large-scale wage increases owing to the impact of inflation on the cost of living, the steep wage increases resulting from this spring's labor-management negotiations, and steps to redress minimum wage gaps between neighboring regions. To help create a climate capable of accommodating increases in the minimum wage, I want the national government to implement measures in support as soon as possible.
Regarding the increased number of regions that set longer interim periods to the date for their minimum wage increases to take effect, it's my impression this is an outcome of considerations including corporate preparations for capital increases following recent large-scale wage hikes and worsening labor shortages due to the accelerated timing for adjusting work schedules by part-time workers.
Keidanren has called for steps to sustain the strong momentum in wage increases and ensure they take lasting root, and its stance is the same regarding increases in the minimum wage as well. However, it will be necessary to carefully weigh the impact that abrupt and sweeping wage increases could have on employment, business operations, and other indicators of regional economic wellbeing.
(In response to a question regarding the political involvement of Economic Revitalization Minister Ryosei Akazawa in the decision-making process for the establishment of and increase in the government's target of a nationally weighted average of 1,500 yen for the minimum wage during the decade of the 2020s) As I am not aware of the facts surrounding Minister Akazawa's involvement, I have no comment. To achieve its target, the government would need to raise the minimum wage by an annual margin exceeding 7%. To that end, it will need to explore relevant measures while also considering the potential impact on regional economies.
(In response to a question regarding methods of setting the minimum wage) Judging from the status of their deliberations, my impression is the methods considered by the Regional Minimum Wages Councils have become highly diverse. My understanding is that while some have reached their conclusions based on careful deliberations with a variety of stakeholders, others have expressed the view that the wage-setting mechanism itself should be re-examined. The method of setting the minimum wage is a matter subject to deliberations by the Central Minimum Wages Council. Should the need arise, Keidanren will consider issuing a statement to that Council.
Curb on Activities by Keizai Doyukai Chairperson Niinami
(In response to a question regarding the decision by Suntory Holdings Chairman and CEO Takeshi Niinami to resign from that position and scale back his activities as Chairperson of Keizai Doyukai) As I am uninformed regarding many of the finer details in this case and have been told it is still under police investigation, I will refrain from any comment on this matter at this time, but I would like to keep an eye on further developments.
Keizai Doyukai is an outspoken business organization with a long history. As one of Japan's top three business lobbies, it sometimes work together with Keidanren in making policy proposals. I anticipate it will continue its activities as usual.
Fuji Television
(In response to a query regarding the resumption of Nippon Life advertising through Fuji TV) Nippon Life's management team is probably exploring the idea of resuming advertising through Fuji TV, given the status of reforms in that company's corporate governance. In that process, it is also likely to consider progress made by other firms in resuming their advertising through Fuji TV.