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Yomiuri Shimbun
02-06-2025
- Business
- Yomiuri Shimbun
Keidanren Under New Tsutsui Leadership: Strong Ability to Communicate Needed to Overcome Difficult Situation
The tariff policies of U.S. President Donald Trump are shaking the world, causing major changes to the global economic order. As a leader in the business community, Keidanren (Japan Business Federation) must convey its messages strongly to overcome this difficult situation. Yoshinobu Tsutsui, former chairman of Nippon Life Insurance Co., has taken office as the 16th chairman of Keidanren. This is the first time for a figure from a financial institution to assume the post, whose past holders have mainly been people from the manufacturing industry. Nippon Life Insurance is a leading institutional investor with in-depth knowledge of the management of a wide range of companies. To break out of the long period of stagnation known as the 'lost 30 years,' Keidanren under Tsutsui must take the lead in discussions on the state of government economic policies and corporate management. The first test will be how to maintain the trend of wage increases. In an effort to achieve a growth-oriented economy in which both wages and investment increase, historically high wage increases have continued at major companies for three consecutive years, including this year's shunto spring wage negotiations. However, amid growing uncertainty over the future due to the U.S. high tariff policy, the momentum for wage hikes at small and midsize companies is weakening, and dark clouds are looming over major companies' shunto negotiations next year. 'Extremely powerful momentum for wage increases has been established. The most important task now is to further cement this trend,' Tsutsui said. He must take the lead in the wage hike movement and make it spread throughout Keidanren's member companies. The internal reserves of Japanese companies have risen to about ¥600 trillion, which should provide sufficient capacity for investment and wage increases. It is the responsibility of member companies to continue investing aggressively and raising wages even in the face of headwinds. Stabilizing the social security system and dispelling future concerns are important tasks even for corporate management. Tsutsui has stated that 'it is not appropriate to reduce consumption tax,' as it is a fundamental source of revenue supporting the social security system. This is a valid point. Close attention must be paid to changes in the global economic order. The United States will likely maintain its protectionist stance for some time. The free trade system centered on the United States is wavering, and the foundation of Japan's economic growth is being shaken. Tsutsui has announced a plan to establish a Global South committee within Keidanren and strengthen ties with emerging and developing countries. It is important to deepen relations with India and the Association of Southeast Asian Nations. It is necessary to devise a strategy to reduce dependence on the United States, expand sales channels to other countries and regions and continue economic growth. Toyota Motor Corp. President Koji Sato is among the four people to newly assume a vice chair post. It has been a long time since a Toyota president has held that job. It is hoped that he will bring new energy to Keidanren by leveraging his experience as the head of Japan's largest manufacturing company. (From The Yomiuri Shimbun, June 2, 2025)
28-05-2025
- Business
Incoming Keidanren Head Vows to Focus on Social Security Reform
News from Japan Economy May 29, 2025 00:19 (JST) Tokyo, May 29 (Jiji Press)--Yoshinobu Tsutsui, who will become chairman of the Japan Business Federation, or Keidanren, on Thursday, has expressed his commitment to reforming the country's social security system. "I will do my best to ensure (the system's) sustainability and improve fiscal credibility," Tsutsui, former chairman of Nippon Life Insurance Co., said in a recent interview. He also emphasized the importance of "cementing the momentum for wage hikes among companies" to create a positive economic cycle. Tsutsui said that he will spur work to draw up a timetable for comprehensive policy proposals drawn up by Keidanren last year. "I want to dispel people's concerns about the future of social security and stimulate stable consumption," he said. He also said that he will call on companies to consider appropriate wage hikes in light of their business environments and strengths amid U.S. President Donald Trump's tariffs. [Copyright The Jiji Press, Ltd.] Jiji Press
22-05-2025
- Business
Big Japan Firms Raise Pay by 5.38 Pct
News from Japan Economy May 22, 2025 20:37 (JST) Tokyo, May 22 (Jiji Press)--Major Japanese companies agreed to raise monthly pay by 5.38 pct, or 19,342 yen, on average in this year's "shunto" spring labor-management wage talks, the first tally by the Japan Business Federation, or Keidanren, showed Thursday. The results marked a second consecutive year of a large wage increase following last year's rise of 5.58 pct, or 19,480 yen. A wage increase exceeded 10,000 yen for three years in a row, the longest spell since the early 1990s. Many companies raised wages to fight rising inflation and secure personnel, said an official at Keidanren, the country's largest employers' group. This year's results underscored that the momentum of large pay increases is taking root, the official said. The tally covered 97 companies in 17 sectors. Companies in 10 sectors raised wages at a faster pace than in the previous year. [Copyright The Jiji Press, Ltd.] Jiji Press
Japan Today
05-05-2025
- Business
- Japan Today
Panel weighs need to update ¥43 tril Japan defense buildup plan
File photo taken in February 2024 shows a panel of experts under the Japanese Defense Ministry tasked to discuss ways to reinforce Japan's defense capabilities holding its first meeting at the Defense Ministry in Tokyo. A panel of experts under the Japanese Defense Ministry is considering a proposal to revise the current defense buildup plan, which allocates 43 trillion yen in spending over five years through March 2028, sources close to the matter said Sunday, as inflation drives up the cost of defense equipment. The panel, led by Sadayuki Sakakibara, a former chief of the Japan Business Federation, the biggest business lobby in the country, will submit a report on its discussions regarding the need to beef up the country's defense capabilities, possibly in the summer, for the government to consider. As Japan undertakes its most extensive defense buildup since World War II amid growing security challenges from China and North Korea, and with the public burdened by rising prices, it remains unclear whether any proposal to increase defense spending will gain support from the government and the ruling Liberal Democratic Party. The current Defense Buildup Program was adopted in December 2022 as part of three key security documents that marked a major shift in defense policy for a country that upholds a pacifist Constitution, including a plan to acquire strike capabilities that could potentially reach an adversary's territory. While Japan's annual defense budget had long been capped at around 1 percent of gross domestic product, the documents also set a goal of increasing defense-related spending to 2 percent of GDP by fiscal 2027. But some members of the panel, established in February 2024, have said the 43 trillion yen budget would be insufficient to fulfill the government's commitment to strengthen defense capabilities, citing rising costs of equipment due to inflation and a weak yen, according to the sources. Others emphasized the need to enhance Japan's ability to sustain combat operations by increasing ammunition stockpiles and accelerating the acquisition of drones and other advanced equipment amid a shifting security environment following Russia's invasion of Ukraine and growing concerns over a potential Chinese invasion of Taiwan, they said. The Defense Buildup Program provides rough cost estimates for acquiring long-range missiles, aircraft and ships over the five years starting in fiscal 2023, as well as a projection of the Self-Defense Forces' posture around a decade later. To cover the 43 trillion yen in defense spending, the government has planned hikes in corporate, income and tobacco taxes. It is set to raise corporate and tobacco taxes starting in April 2026 but has yet to decide when to increase the income tax. A government source said seeking to further increase the defense budget will require "huge political energy," which is not something that Prime Minister Shigeru Ishiba, who leads a minority government, can withstand. A senior government official said serious discussions about revisiting the Defense Buildup Program are likely to take place after the House of Councillors election in the summer. Meanwhile, some within the Japanese government have called for additional defense equipment to be purchased through the United States' foreign military sales program, as U.S. President Donald Trump has made clear he believes Japan should increase its defense spending. © KYODO
The Mainichi
05-05-2025
- Business
- The Mainichi
Panel weighs need to update 43 tril. yen Japan defense buildup plan
TOKYO (Kyodo) -- A panel of experts under the Japanese Defense Ministry is considering a proposal to revise the current defense buildup plan, which allocates 43 trillion yen ($297 billion) in spending over five years through March 2028, sources close to the matter said Sunday, as inflation drives up the cost of defense equipment. The panel, led by Sadayuki Sakakibara, a former chief of the Japan Business Federation, the biggest business lobby in the country, will submit a report on its discussions regarding the need to beef up the country's defense capabilities, possibly in the summer, for the government to consider. As Japan undertakes its most extensive defense buildup since World War II amid growing security challenges from China and North Korea, and with the public burdened by rising prices, it remains unclear whether any proposal to increase defense spending will gain support from the government and the ruling Liberal Democratic Party. The current Defense Buildup Program was adopted in December 2022 as part of three key security documents that marked a major shift in defense policy for a country that upholds a pacifist Constitution, including a plan to acquire strike capabilities that could potentially reach an adversary's territory. While Japan's annual defense budget had long been capped at around 1 percent of gross domestic product, the documents also set a goal of increasing defense-related spending to 2 percent of GDP by fiscal 2027. But some members of the panel, established in February 2024, have said the 43 trillion yen budget would be insufficient to fulfill the government's commitment to strengthen defense capabilities, citing rising costs of equipment due to inflation and a weak yen, according to the sources. Others emphasized the need to enhance Japan's ability to sustain combat operations by increasing ammunition stockpiles and accelerating the acquisition of drones and other advanced equipment amid a shifting security environment following Russia's invasion of Ukraine and growing concerns over a potential Chinese invasion of Taiwan, they said. The Defense Buildup Program provides rough cost estimates for acquiring long-range missiles, aircraft and ships over the five years starting in fiscal 2023, as well as a projection of the Self-Defense Forces' posture around a decade later. To cover the 43 trillion yen in defense spending, the government has planned hikes in corporate, income and tobacco taxes. It is set to raise corporate and tobacco taxes starting in April 2026 but has yet to decide when to increase the income tax. A government source said seeking to further increase the defense budget will require "huge political energy," which is not something that Prime Minister Shigeru Ishiba, who leads a minority government, can withstand. A senior government official said serious discussions about revisiting the Defense Buildup Program are likely to take place after the House of Councillors election in the summer. Meanwhile, some within the Japanese government have called for additional defense equipment to be purchased through the United States' foreign military sales program, as U.S. President Donald Trump has made clear he believes Japan should increase its defense spending.
