Japan PM Takaichi dissolves Parliament for snap election on Feb 8

TOKYO – Japanese Prime Minister Sanae Takaichi dissolved Parliament on Jan 23 ahead of a

snap election on Feb 8,

counting on her Cabinet’s high poll numbers to steer her otherwise unpopular ruling party to victory.

The Speaker of Parliament read out a letter, officially dissolving the Lower House as lawmakers shouted the traditional rallying cry of “banzai”.

The country’s first woman leader announced earlier on Jan 19 that she planned to dissolve the Lower House, seeking public backing for measures to shield households from rising living costs and increase spending on defence.

The ruling coalition of Ms Takaichi’s Liberal Democratic Party (LDP) and the Japan Innovation Party (JIP) has only a slim majority in the powerful lower chamber.

Ms Takaichi is hoping widespread support for her Cabinet will help deliver to her a stronger mandate even though the LDP itself is battling low approval ratings and a string of scandals.

“It’s not clear if high public support for the Takaichi Cabinet will actually lead to support of the LDP,” Dr Hidehiro Yamamoto, professor of politics at the University of Tsukuba, told AFP.

“What the public are concerned about is measures to address inflation,” he said.

On Jan 23, closely watched government data showed the country’s inflation rate slowed in December 2025, largely thanks to government subsidies for electricity and gas.

The 2.4 per cent year-on-year rise in consumer prices – which excludes volatile fresh food – compared with 3 per cent in November, is a notable slowdown, although higher than the central bank’s 2 per cent target.

Public discontent over rising prices largely contributed to the downfall of Mr Shigeru Ishiba, whom Ms Takaichi succeeded in October.

While Japan was long haunted by deflation, it has more recently faced a surge in living costs and a chronically weak yen that has made imports more expensive.

Rice has become a symbol: Its price more than doubled in mid-2025 compared with a year earlier, before easing in recent months.

The price of the grain rose more than 34 per cent in December compared with 2025, official data showed on Jan 23.

Vowing to address the issue and shore up the world’s fourth-largest economy, Ms Takaichi’s Cabinet approved a record 122.3 trillion yen (S$990 billion) budget for the fiscal year from April 2026.

But rivals say dissolving the Lower House risks delaying its passage through Parliament, with Mr Jun Azumi of the main opposition Constitutional Democratic Party (CDP) saying it would “sacrifice livelihoods”.

To Mr Shoichi Shirai, a 62-year-old company worker, Ms Takaichi’s decision “felt like a truly selfish dissolution”, he said, accusing her of prioritising elections over budget discussions.

“She kept saying she would get to work, but dissolving the Parliament at this time is completely disregarding the will of the people,” he said.

Still, the ruling LDP aims to “secure a majority” together with its partner JIP to “regain and establish political stability”, secretary-general Shunichi Suzuki said after the dissolution.

The upcoming campaign may also see immigration – a charged topic that led to the advent of an upstart populist party in summer elections – thrust back into the spotlight.

On Jan 23, Ms Takaichi’s conservative government approved a set of policies including firming up a crackdown on illegally staying foreigners and curbing overtourism more.

Tax relief

If elected, Ms Takaichi has pledged to cut a sales tax on food for a two-year period to “alleviate the burden” on people struggling with inflation.

Opposition parties are also calling for the tax relief.

But Ms Takaichi’s “proactive” fiscal spending risks inflating the country’s already colossal debt, which is expected to exceed 230 per cent of gross domestic product in the fiscal year 2025 to 2026. Ms Takaichi says the policy is “responsible”.

The prospect of tax cuts roiled the bond market this week, already rattled by the massive stimulus plan and worried about fiscal slippage financed by debt.

Yields on Japanese government bonds have soared, signalling investor distrust.

The Bank of Japan, which is responsible for price stability, is due to announce a monetary policy decision on Jan 23 after a two-day meeting. It has raised its key interest rates several times since early 2024 to rein in inflation.

The central bank is expected to hold rates steady, but its statements on market disruptions will also be closely watched.

Centrist alliance

The LDP has governed Japan almost uninterrupted for decades, albeit with frequent leader changes.

The CDP has joined forces with another party, Komeito, hoping their new Centrist Reform Alliance can draw swing voters away from Ms Takaichi.

Analysts say the election could be a close battle depending on the success of the alliance, but the opposition’s chances of winning remain slim.

“The key could be the voting behaviour of young and middle-aged groups, as was the case in the Upper House election” in July, Mizuho Research & Technologies said in a note.

The Takaichi government enjoys around 90 per cent support among those under 30, according to a poll published at the end of December by the conservative Sankei Shimbun newspaper and Fuji Television. AFP