Japan PM Ishiba tells Cabinet to compile stimulus package
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Japanese Prime Minister Shigeru Ishiba speaks at the Prime Minister's Office in Tokyo on Oct 1.
PHOTO: REUTERS
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TOKYO – Japanese Prime Minister Shigeru Ishiba formally instructed his ministers on Oct 4 to compile a fresh economic package to cushion the blow to households from rising living costs, as the new government makes an exit from deflation its top priority.
The step comes as Mr Ishiba – previously seen as a proponent of fiscal austerity – ahead of a general election, stresses that his focus is to get the economy to fully shake off the deflation
“We would need to support people suffering from rising costs right now until a positive growth cycle with wage increases outpacing inflation and driving capital expenditures is established,” Mr Ishiba told Parliament in a policy speech.
Earlier on Oct 3, Mr Ishiba told his Cabinet that a supplementary budget would be compiled to fund the package after a Lower House election set for Oct 27.
The fresh package will include payouts to low-income households and subsidies to local governments, he said in the policy speech.
Among other economic policies, Mr Ishiba also pledged to make efforts to boost the minimum wage to 1,500 yen (S$13) an hour this decade, versus 1,055 yen now.
Economic conditions have improved and wages have finally begun to grow after three “lost” decades that focused on cost cuts, he said. “But we’re still halfway through to achieve an economy where people can feel safe to spend.”
On the diplomacy front, Mr Ishiba vowed to keep building ties with like-minded nations
He also said he would work with China where possible, while confronting it on issues of disagreement.
A poll conducted by Kyodo News showed his new Cabinet had an approval rating of 50.7 per cent soon after its inauguration this week.
When Mr Ishiba’s predecessor, Mr Fumio Kishida, launched his Cabinet three years ago, the approval rate was 55.7 per cent.
But it plunged to 26.1 per cent in August, amid a slush fund scandal that engulfed the ruling Liberal Democratic Party and forced Mr Kishida to step down. REUTERS
