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TOKYO: Japanese Chief Cabinet Secretary Yoshihide Suga, who is expected to become prime minister next week, said on Saturday (September 12) that he will consider recharging payments to households and businesses to cushion the economic blow of the pandemic. of coronavirus.
Suga also defended his expertise in diplomacy, an area in which experts say his résumé is quite slim, while stepping away from the clues on whether he would call snap elections if he replaces outgoing Prime Minister Shinzo Abe.
Suga repeated that Japan should focus on reviving the economy before considering ways to fix its ruined finances, ruling out another increase in the national sales tax for a decade.
“If the economic problems deepen, we will do what is necessary and deploy more measures to protect jobs and businesses,” Suga said.
“Given the current economic circumstances, the government will take such measures if necessary,” he said, when asked if it would grant additional payments to households and businesses suffering a reduction in income due to the pandemic.
Suga made the remarks in a televised debate among candidates running in a leadership election of the Liberal Democratic Party (LDP) to be held on Monday to choose a successor to Abe.
Abe said last month that he would resign due to health problems after nearly eight years in office.
The winner of the party’s vote is practically guaranteed to become prime minister thanks to the PLD’s parliamentary majority.
READ: Japan’s Suga vows to put growth before tax reform, notes Abenomics status quo
Rival candidate Shigeru Ishiba said the Bank of Japan (BOJ) should not make any immediate changes to its ultra-easy monetary policy, as doing so would destabilize markets.
But he said the central bank should reexamine its long-term policy framework to accommodate structural changes in Japanese society, without elaborating.
“The BOJ’s biggest mandate is not to boost inflation, but to maintain price stability. As such, it should stick to its 2% inflation target,” Ishiba said. “You shouldn’t be too quick to do this, but a reexamination of your policy may be necessary.”
When asked about monetary policy, Suga replied, “My opinion is completely the same” as Ishiba’s.
Suga, 71, a loyal longtime associate of Abe, said he would seek strong communication with neighboring countries such as China and South Korea. Abe oversaw an improvement in ties with Beijing, but those with Seoul have been chilled by disputes over the war’s past.
He added that it was not the right time to discuss a planned visit by Chinese leader Xi Jinping, postponed due to the COVID-19 outbreak. Some hardliners of the PLD have urged that the visit be canceled due to Beijing’s maritime assertiveness near the disputed islands in the East China Sea and its crackdown on Hong Kong.
Suga defended his diplomatic expertise, noting that he was present and helped prepare for Abe’s phone conversations with US President Donald Trump, with whom Abe forged warm ties.
“I think Prime Minister Abe’s top diplomacy is really excellent. I don’t think I can do the same, but I also think I have my own way of conducting diplomacy. I plan to keep my own style,” he said.
Speculation is growing that Suga, who has seen his popularity rise in opinion polls since he announced his candidacy for the top job, could call a general election next month to improve his chances of winning a full three-year term as the leader of the government. PLD in a party election to be held in September 2021.
But he gave few clues as to whether that was likely.
“What people want are proper policies against the coronavirus and revitalization of the economy,” he said. “But (whether to call early elections) is up to the next prime minister.”
