Japan's Business Leaders Favor Ishiba as Next Prime Minister
A recent survey conducted by Nikkei Research on behalf of Reuters revealed that Shigeru Ishiba, a former defense minister and secretary-general of the ruling Liberal Democratic Party (LDP), is the top choice among Japanese business leaders to replace Prime Minister Fumio Kishida. The survey, conducted between August 28th and September 6th, polled 506 companies, with 245 responding.
Ishiba garnered 24% of the vote, edging out Sanae Takaichi, who aspires to become Japan's first female prime minister, with 22%. Shinjiro Koizumi, the 43-year-old son of former premier Junichiro Koizumi, came in third with 16%.
Ishiba's popularity among business leaders stems from his extensive experience in government, having held cabinet portfolios for agriculture, local economies, defense, and served as LDP policy chief. He is also seen as a reformer who can push through necessary changes without being beholden to party factions.
Takaichi, on the other hand, advocates for strategic fiscal spending in cutting-edge technologies to drive economic growth. Koizumi, if elected, would become Japan's youngest-ever leader and plans to continue Kishida's economic policies.
The survey also revealed that rising prices are the top priority for the Japanese business community, followed by fiscal reforms. Japan's debt load is the highest in the industrialized world, at more than twice the size of its economy.
Regarding monetary policy, nearly two-thirds of respondents welcomed the Bank of Japan's July rate hike, which took the short-term policy target to 0.25% from a range of zero to 0.1%. However, opinions were divided on the timing of a further rate increase.
While some believe another rate hike is necessary, others fear it could weaken international competitiveness and harm companies' earning power. The survey found that a rate hike to around 0.5% could affect the plans of 29% of respondents for raising funds and wages, while a 0.75% rate would have that effect on 11% and a 1.0% rate on 27%.
The LDP will hold an election on September 27th to choose its next leader, who will become the prime minister given the party's control of parliament. The winner will face the challenge of leading the LDP to victory in a lower house election that could take place as early as this year and working closely with the next president of the United States amidst China's growing economic and military influence.