TOKYO (BLOOMBERG) - As its economy picks up pace, Japan's Prime Minister Fumio Kishida said he would do everything possible to create an environment for firms to raise wages.
Mr Kishida told a news conference on Tuesday (Dec 21), to mark the end of the parliamentary session, that measures would include drawing up rules on non-financial disclosure for firms in the year starting in April.
Raising pay is a key pillar of Mr Kishida's "New Capitalism" plans to bolster the economy by better distributing the fruits of growth. The Premier, who took office in October, must maintain public support ahead of an Upper House election due next year to keep his grip on the top job.
"Distribution by raising pay is not a cost but an investment in the future," Mr Kishida said. "Paying properly creates the foundation for firms to create value sustainably."
Meanwhile, Japan's government raised its monthly view of the economy for the first time since the summer of 2020, in a sign of confidence in the recovery even amid risks from the Omicron variant of the coronavirus.
In its report for December, the Cabinet Office said the economy has picked up recently as the severe conditions caused by the pandemic gradually ease. By individual components, the government raised its view of consumption, business confidence and the jobs market.
The report underscores how Japan has so far managed to avoid the fast spread of Omicron seen in the United States and Britain. In the US, the variant accounted for 73 per cent of new cases last week, while Japan had confirmed fewer than 70 Omicron cases in total as at last weekend.
The Cabinet office said attention should be given to the new variant, but still sees the economy picking up in the short term. Supportive government policies and progress in the country's return to a semblance of normal life should help, it said.
Japan is expected to rebound this quarter after a summer wave of Covid-19 triggered another state of emergency, dragging on consumption. Since then, restrictions have been lifted and Mr Kishida has unveiled a larger-than-expected stimulus package to shore up the economy.
