Latest news with #BasicPolicyonEconomicandFiscalManagementandReform
Yomiuri Shimbun
3 days ago
- Business
- Yomiuri Shimbun
U.S. Tariffs, Rice Prices Discussed in Basic Economic Policy Draft; Disaster Prevention Agency Also Discussed
Yomiuri Shimbun file photo Prime Minister's Office The government will aim to maintain the free trade system by taking the lead in expanding the Trans-Pacific Partnership agreement, as part of its efforts to respond to U.S. tariff measures, according to the draft of its basic economy policy for the next fiscal year. The draft of the 'Basic Policy on Economic and Fiscal Management and Reform' also states that the government will 'review rice farming policies to address soaring rice prices.' U.S. tariff measures 'could shake the free trade system built by the post-war international community,' the draft says. It goes on to state that the government will 'grapple with maintaining and strengthening international economic order based on free and fair rules' through international cooperation, such as expanding the TPP and building a more resilient supply chain. Regarding the domestic economy, the draft states it is necessary to take caution against possible impacts of the tariff measures and the economic risks of surging prices.' It stresses the need to mobilize all possible policy measures, including passing costs onto prices as appropriate, to increase people's income and the country's productivity. Touching on the soaring rice prices, the draft states the government will ensure the stable supply of rice through the smooth distribution of its stockpiled rice. It also states that the government will take concrete steps to review its rice farming policies. Prime Minister Shigeru Ishiba has expressed his willingness to review the policy of adjusting rice production, which is effectively a policy of reducing rice acreage, and instead expand sales channels by increasing rice exportation. These stances are reflected in the draft. The draft makes reference to a disaster prevention agency, which the government aims to establish in fiscal 2026. The envisaged organization will be positioned as the central command for the entire government on the coordination of policy measures for disaster prevention. The draft states that the agency will have the authority to issue recommendations to other government bodies, and that the government will secure sufficient funding and personnel for the agency as well as appoint a dedicated cabinet member to head it. According to the draft, the government will also consider setting up regional bases for disaster prevention, an idea which Ishiba has touted. Following adjustments by the ruling parties, the basic policy is expected to be approved by the Cabinet as early as on June 13.
Asahi Shimbun
5 days ago
- Business
- Asahi Shimbun
Basic economic policy draft seeks to boost rice farm production
With Japan mired in a rice crisis, the government is considering revising rice farming policies to increase production in its basic economic policy for the next fiscal year, which the Cabinet is scheduled to approve in June, sources said on May 28. The draft of the 'Basic Policy on Economic and Fiscal Management and Reform 2025,' released that day, states that the government will 'review rice farming policies and develop specific measures' to address soaring prices and shortages. The government will revise its policies to 'support farmers who are actively working to enhance their production efficiency and to ensure a stable food supply through increased productivity,' according to the draft. The plan includes drafting measures to increase rice production for overseas markets, revising measures to facilitate farmland consolidation and introducing measures that will support new farmers and secure their businesses. The draft also mentions creating new production areas for rice that will be exported with the goal of increasing the country's agricultural, forestry and fishery exports to 5 trillion yen ($34 billion) by 2030. Previous government policies have resulted in continued rice field reductions and decreased rice production, contributing to the insufficient supply and skyrocketing rice prices. However, Prime Minister Shigeru Ishiba has been expressing a desire to increase rice production and exports. The basic economic policy appears to reflect the Ishiba administration's intentions. The draft also includes plans to revive Japan's shipbuilding industry. 'In order to strengthen maritime clusters centered on marine shipping and shipbuilding industries, we will work to significantly strengthen supply chains, including cooperation between Japan and the United States.' According to government sources, Japan proposed a policy of reviving the U.S. shipbuilding industry during Japan-U.S. negotiations on the U.S. tariff hikes. The Japanese government is apparently aiming to cooperate with the United States in shipbuilding by promoting the revitalization of its own shipbuilding industry. The government's annual Basic Policy on Economic and Fiscal Management and Reform, also known as 'Honebuto no hoshin,' outlines basic ideas for allocating the budget for the next fiscal year. The government is currently finalizing the contents of the policy, which it aims to get approved at a Cabinet meeting in June.
Yomiuri Shimbun
23-05-2025
- Business
- Yomiuri Shimbun
Japanese Govt Eyes U.S. Cooperation in Reviving Shipbuilding Industry
Yomiuri Shimbun file photo Icebreaker Shirase leaves a Maritime Self-Defense Force base in Yokosuka, Kanagawa Prefecture, in November 2024. The government will launch measures to revive the shipbuilding industry, which has been declining for a long time, according to sources. It will support the private sector in the construction and repair of shipbuilding docks and in starting businesses overseas. China has an overwhelming share of the world's shipbuilding market, and economic security concerns are growing in the international community. As the administration of U.S. President Donald Trump regards strengthening the country's shipbuilding capability as one of its important policies, Japan hopes to promote cooperation with the United States in this area and use it as a bargaining chip in the upcoming tariff negotiations. The government aims to support the domestic industry and promote cooperation with the United States at the same time. It will include specific measures in its Basic Policy on Economic and Fiscal Management and Reform, also known as the 'big-boned policy,' and secure the necessary budget. As for domestic measures, it will support domestic investment, technology development and establishing data infrastructure in the shipbuilding industry through the Economic Security Promotion Law. This is in consideration of the fact that shipbuilding is a dual-use industry, which develops and produces vessels for both private and military purposes. To strengthen domestic shipbuilding capability, which is currently insufficient to meet the recent increase in demand, the government will support to construct new shipbuilding docks by reviving unused docks and dockyards. The government will also increase the budget related to green transformation to support the building of ships that include next-generation vessels fueled by blue ammonia. Blue ammonia is produced from fossil fuel in which the carbon dioxide emissions generated during the process are captured and stored. The government will also help Japanese companies construct large-scale docks overseas and start businesses in those locations. As for possible Japan-U.S. cooperation, the government is considering a 'Japan-U.S. fund for reviving the shipbuilding industry.' It will propose joint construction of blue ammonia ships and vehicle carriers, hoping to utilize Japan's design capabilities and Japan-made manufacturing parts. It will support Japanese and U.S. companies to construct dockyards in the United States. Based on the technology of Japanese icebreaker Shirase, it plans to jointly develop and produce new icebreakers and cooperate in repairing warships with the United States. It also aims to establish a supply chain between Japan and the United States to avoid too much dependence on China. China currently has a 70% share of newly built ships and 90% share of ship repair. Japan had a 50% share of newly built ships in the early 1990s, but currently has only 10%. As Japan depends on China for its supply of ships, its maritime transportation may be affected in a contingency. Japan aims to strengthen its economic security by reviving its shipbuilding industry. The Trump administration also aims to revive the U.S. shipbuilding industry. It has already started to eliminate Chinese ships; the U.S. government said it would collect fees from China-made ships when they enter U.S. ports. Japan and the United States were to hold their third ministerial meeting about the tariffs on Friday. Japan intends to convey to the U.S. government its intent to cooperate in reviving both countries' shipbuilding industries, hoping to extract concessions in the negotiations.
The Mainichi
16-05-2025
- Business
- The Mainichi
Editorial: Support for Japan's 'employment ice age generation' needed
Members of Japan's "employment ice age generation," who have faced tough conditions, are now in their 40s and 50s. Measures that take their advancing age into account are required. The government has begun considering new support measures for this generation of workers, which it is set to include in its Basic Policy on Economic and Fiscal Management and Reform to be formulated in June. The employment ice age generation specifically refers to those who entered the workforce around 1993 to 2004, after Japan's economic bubble burst. There are estimated to be some 17 million to 20 million members, accounting for one-sixth of the nation's population. Due to labor deregulation at the time, many are in non-regular employment. The government has intermittently implemented measures to date. Since fiscal 2020, it has strengthened employment support, setting up specialized counters at Hello Work public employment offices, while the national and local governments have established recruitment slots. With the recent economic recovery and labor shortages, the number of people becoming regular employees through mid-career recruitment has increased. However, those who had few opportunities to acquire skills face limited wage growth. What is required first is renewed learning that leads to improved compensation packages. Due to digitalization, working styles in various fields such as logistics and construction are changing. Acquiring skills suited to such situations makes it easier to find employment. If people obtain national qualifications, such as a certified care worker, they are able to continue working for the long term. Companies should fulfill their role as employment providers. They bear responsibility for creating the ice age generation by suppressing hiring to prioritize immediate profits. Securing housing is also essential. A government survey found that the employment ice age generation has a lower homeownership rate than other generations. The government is promoting policies to increase rental housing that is more accessible for the elderly. It is necessary to further strengthen these measures. The issue of securing funds for retirement should be addressed at an early stage. Due to long periods of non-regular employment, the savings of people in this generation tend to be low. The amount people receive from public pensions, which support their living alongside savings, are expected to decrease. The government had aimed to reform the system to secure benefit levels, but abandoned the plan due to opposition from the LDP, which feared the move would lead to discussions about hiking taxes to obtain the necessary financial resources. The erosion of future pensions has accordingly been left unaddressed. Without effective policies, poverty and inequality will increase, which could undermine social stability. All possible measures to assist the employment ice age generation must be taken by both the public and private sectors.
Yomiuri Shimbun
21-04-2025
- Business
- Yomiuri Shimbun
Japan's Economy Ministry to Outline Scenario to Grow GDP to About ¥1,000 tril. in 2040; Outline Floats Doubling of Domestic Investment
Yomiuri Shimbun file photo The Economy, Trade and Industry Ministry Japan's nominal gross domestic product (GDP) can be grown to about ¥1,000 trillion, 1.8 times the recent figure, according to a scenario set to be laid out by the government. In the outline formulated by the Economy, Trade and Industry Ministry, the figure can be achieved by doubling domestic investment to ¥200 trillion in 2040 and by investing in strategic areas such as digitalization and economic security through cooperation with the private sector. To achieve the ¥200 trillion figure, which is about twice the current level, capital investment needs to increase by 4% a year. If this is achieved, nominal GDP will see an increase of 3.1% per year, reaching a maximum of ¥975 trillion in 2040. According to the scenario, nominal wages are expected to increase by 3.3% per year, reaching ¥5,366 per hour, nearly double the current figure. This would be achieved through improving productivity by investing in labor-saving fields such as software and robotics. Since last year, the ministry has been creating a scenario to boost domestic investment and wage increases. The outline is expected to be announced during a meeting of experts on Tuesday. The ministry intends to use the outline to incorporate corporate tax reform and other measures to boost investment into the government's 'Basic Policy on Economic and Fiscal Management and Reform' which set to be formulated by June.
