THE JAPAN NEWS


 

 
Japan’s business community was surprised at Prime Minister Yoshihide Suga’s abrupt announcement on Friday that he will resign when his term as head of the ruling Liberal Democratic Party expires on Sept. 30.

With Japan facing many challenges in order to rebuild its economy amid the novel coronavirus crisis, business leaders asked for the continued promotion of important policy steps, such as COVID-19 measures, by the next administration.

When Suga became prime minister in September last year, he said that he would succeed the Abenomics economic policy mix of his immediate predecessor, Shinzo Abe. In addition, Suga has focused on creating a digitalized and carbon-free society to ensure growth for Japan after the epidemic.

Suga has been accused, however, of falling behind the curve on infection control measures.

“I was very surprised,” Masakazu Tokura, chairman of the Japan Business Federation, or Keidanren, said.

“The [COVID-19] vaccination speed would not have been possible without the prime minister’s strong leadership,” Tokura told reporters.

“We can’t afford any further delay on coronavirus measures,” he added, calling for efforts to avoid confusion after Suga’s sudden resignation decision.

Suga’s pet policies, including decarbonization, are “indispensable for Japan’s future,” and it is important for the incoming administration to take them over, Takeshi Niinami, president of food and beverage giant Suntory Holdings Ltd., said. Niinami is also a member of the government’s Council on Economic and Fiscal Policy, which is chaired by Suga.

“A big trend has been made toward decarbonization,” an official at a major electric power company said on the Suga government’s goal of reducing greenhouse gas emissions to virtually zero by 2050. “Our future direction will not change no matter who becomes prime minister,” the official said.

Meanwhile, an official at a mobile phone service operator said that Suga’s departure “won’t have a negative influence on the industry.” Japanese telecommunications companies have been pressed by the his administration to lower mobile phone fees.