- Keidanren Vice Chair Appointments
- House of Representatives Election
- Financial Markets
- Consumption Tax Cuts
- Japan-China Relations
- Stock Prices
- Appointment of Toyota Motor President Sato as Vice Chairman
Keidanren Vice Chair Appointments
Today's Meeting of the Chairman and Vice Chairs selected candidates to be newly appointed as Vice Chairs at the General Assembly on June 3.
Vice Chairs Akiyoshi Koji, Tsuyoshi Nagano, Nobuhiro Endo, Hideki Kobori, and Koji Nagai will step down at the date of the General Assembly, upon completion of their terms.
The new selected candidates are Yuji Fukasawa (Chairman, East Japan Railway Company), Keiichi Iwata (Chairman, Sumitomo Chemical Co., Ltd.), Kei Uruma (President, Mitsubishi Electric Corporation, Satoru Komiya (Chairman, Tokio Marine Holdings, Inc.), Kentaro Okuda (President, Nomura Holdings, Inc.), and Reiko Akiike (Managing Director and Senior Partner, Boston Consulting Group Japan). With these appointments, there will be a total of 20 vice chairs.
(In response to a question about the selection criteria for each candidate) Each candidate was selected based on a comprehensive judgment of their character and insight, management skill, track record in their respective companies and industries, a balance of business types and sectors, and my own impressions from their past involvement in Keidanren activities.
Chairman Fukasawa of East Japan Railway Company is the leader of Japan's largest railway company, a piece of public infrastructure. At Keidanren, he currently serves as Chair of the Committee on Migration Policies, which handles the important topic of policy toward foreign nationals, among other roles. He is a person with a broad perspective who is deeply knowledgeable about on-the-ground operations.
Chairman Iwata of Sumitomo Chemical is the leader of a diversified chemical manufacturer. At Keidanren, he currently serves as a Vice Chair of the Board of Councillors, Chair of the Committee on Bioeconomy, and Chair of the Japan-Korea Economic Committee. He is an inclusive person with excellent management skills.
President Uruma of Mitsubishi Electric Corporation, an integrated electrical equipment manufacturer, has been involved in a wide range of businesses, including infrastructure, industrial equipment, and home appliances. At Keidanren, he currently serves as a Vice Chair of the Board of Councillors and Chair of the Committee on Space Activities Promotion, among other roles. Space is an important theme for our country's future growth strategy. He possesses broad knowledge on strengthening industrial competitiveness.
Chairman Komiya of Tokio Marine Holdings operates a global non-life insurance business. At Keidanren, he is currently working to advance education policy as Chair of the Committee on Education Reform. He communicates from a broad and neutral standpoint, not just from the perspective of his company's business.
President Okuda of Nomura Holdings, as head of Japan's largest securities firm, runs a global financial services business. At Keidanren, he currently serves as Chair of the Committee on Economic Law, contributing to responses on issues like the Companies Act and Competition Law. He is a very cheerful person with strong communication skills.
Managing Director and Senior Partner Reiko Akiike of Boston Consulting Group Japan is the head of one of the country's largest management consulting firms and also has past experience at an operating company. At Keidanren, she currently serves as a Vice Chair of the Board of Councillors and Chair of the Committee on Responsible Business Conduct & SDGs Promotion. She is a very level-headed person with excellent communication abilities.
(In response to a question about having two female vice chairs with Ms. Akiike's appointment) Keidanren has always made personnel decisions with consideration for ensuring diversity, and we will continue our efforts to further ensure diversity going forward.
House of Representatives Election
(In response to a question about expectations for the future of the administration following the Liberal Democratic Party's landslide victory in the House of Representatives election) I welcome the result, with the Liberal Democratic Party regaining a sole majority and the ruling coalition securing a stable number of seats.
The Japanese economy is now at a critical juncture for achieving sustainable, strong growth well into the future. Uncertainty about the future of the global situation has also not yet been dispelled. Amid these circumstances, a mountain of important issues awaits, such as becoming "Science and Technology-Oriented Nation" through the creation of ceaseless innovation, and advancing the integrated reform of tax, fiscal policy, and social security systems. There are also challenges that form the foundation for carrying out major policy objectives, such as securing an inexpensive and stable supply of clean energy and promoting Green Transformation (GX). The business community needs to tackle these issues as one.
Based on the strong public mandate demonstrated by this election, I want the Takaichi administration to exercise strong leadership and swiftly and steadily implement these important policies. Keidanren will also continue to cooperate with the Takaichi administration's policy implementation while further strengthening public-private partnership.
(In response to a question about his take on the LDP winning a two-thirds majority of all seats on its own) It is a fact that they have gained the strong trust of the public, and I believe this will greatly contribute to establishing a stable political structure.
On the other hand, even in a situation where the LDP has won a two-thirds majority, in order to boldly and swiftly implement policies, it is important to continually engage in constructive deliberation with the opposition parties and conduct policy-oriented politics. The importance of elevating democracy through active debate between parties with different views and thereby gaining confidence of the world and the markets remains unchanged. For example, I expect constructive deliberation on major, medium- to long-term themes like the integrated reform of tax, fiscal policy , and social security systems.
(In response to a question about the causes for the LDP gaining many seats and the Centrist Reform Alliance losing many) I have not conducted a sufficient analysis, but I believe that, of course, Prime Minister Takaichi's high approval ratings are a factor behind the results.
In terms of methods, the LDP put a lot of effort into online public relations this time, and we saw many messages from the Prime Minister herself. There may have been an aspect where this indirectly led to an expansion of support, with the younger generation participating in politics more than ever via the internet and large crowds gathering for street speeches.
As for the Centrist Reform Alliance, I think the fact that the new party was formed in a short period of time after Komeito left the LDP-Komeito coalition government, leading to a hurried election campaign, may have had an impact.
(In response to a question on whether this kind of election campaign, where the skill of online strategy has a major impact, contributes to fostering a healthy democracy) It is a fact that strong public trust was gained for the stated policies, the framework of the coalition government, and for Prime Minister Takaichi being the prime minister of Japan.
The internet is merely a tool for disseminating information. In this election campaign, I felt that the content of the messages spread through the internet to various generations, especially the younger generation. I recognize that behind the strong public trust was the internet, but purely as a tool.
Financial Markets
(In response to a question about expectations for the Takaichi administration regarding its approach to the markets and its views on fiscal discipline) I believe that sharp fluctuations in exchange rates and long-term interest rates are undesirable. I recognize that the recent trend of yen depreciation and rising long-term interest rates reflects various market speculations surrounding future fiscal management and monetary policy.
In the business community, there are some who are concerned about the impact on future public finances and, furthermore, on corporate activities. Prime Minister Takaichi has repeatedly stated that it is important to maintain market confidence when advancing responsible proactive fiscal policy. I want the government to continue communicating clearly about balancing a strong economy with fiscal consolidation in order to maintain market confidence.
Beyond that, without getting carried away by short-term market trends, we need to improve economic fundamentals, raise our potential growth, and create a resilient market based on our real strengths of the economy. Keidanren will also work on the transition to an "investment-driven economy," as we believe this will surely lead to that outcome.
(In response to a question on whether the ruling party's landslide victory will be positive for maintaining market confidence) I believe that the establishment of a stable political structure will basically be viewed positively by the market. On the other hand, engaging in active debate with other parties as a part of party politics is, of course, an important element of democracy and is also crucial for continuing to gain market confidence.
Consumption Tax Cuts
(In response to a question about the consumption tax cuts proposed by various parties during the election campaign) Regarding consumption tax, a thorough discussion is necessary from the perspectives of maintaining market confidence and ensuring the sustainability of social security, fully taking into account that it has long been positioned as an important, stable source of funding for social security.
I would like to see the national council established promptly to deepen consideration of the various issues related to a consumption tax cut. In addition to the important point of alternative funding sources, I expect discussions to cover issues such as the impact on local government finances, the relationship with refundable tax credits, the impact on businesses, and system-related problems.
(In response to a question about specific concerns the Chairman has heard regarding a consumption tax cut) I have heard concerns particularly from small and medium-sized enterprises related to food and drink about the administrative burden of adapting and the associated need for a certain amount of investment.
It is crucial that a national council is established promptly to properly gather such various opinions from the private sector's perspective and discuss them thoroughly.
Japan-China Relations
(In response to a question about the Chairman's take on concerns that an improvement in Japan-China relations might be delayed following the House of Representatives election results) Japan-China relations continue to be in a politically difficult phase, with spillover effects into the worlds of economy and business. Regardless of the election results, building a constructive and stable relationship between Japan and China is crucial, and I believe Prime Minister Takaichi's stance of being open to dialogue with China should continue.
While I cannot gauge the pace of improvement in the relations, it is important to build communication through dialogue across a wide range of fields at all levels, and not just government and bureaucracy, but the business community as well must search for a way forward.
Stock Prices
(In response to a question about the Chairman's take on closing price of the Nikkei Stock Average reaching a record high on February 9) I understand this to be an expression of expectation that, with a very stable political structure now established, the crisis management investment and growth investment needed to achieve the strong economy advocated by the Takaichi administration will be reliably carried out.
Appointment of Toyota Motor President Sato as Vice Chairman
(In response to a question about Toyota Motor President Sato being appointed as the company's vice chairman effective April 1) President Sato serves as a Vice Chair and Chair of the Committee on Mobility at Keidanren, and also as Chairman of the Japan Automobile Manufacturers Association. The roles he plays at Keidanren and JAMA are extremely significant. I expect that he will leverage his experience to be even more active in the future.