Tokyo: Japan's Prime Minister Sanae Takaichi delivered a policy address to parliament after winning the recent election. She announced a comprehensive security overhaul in response to growing threats from China and pledged to implement responsible fiscal policies aimed at restoring market confidence.
According to Thai News Agency, Prime Minister Takaichi, who will soon celebrate her 65th birthday, spoke to parliament for the first time since her decisive victory in the snap general election on February 8th. Her Liberal Democratic Party (LDP) and coalition partners command more than two-thirds of the seats in the House of Representatives, ensuring minimal political hurdles.
Takaichi highlighted that Japan is encountering its most severe security challenges since World War II, citing China's burgeoning military activities and its alliance with Russia. She pointed to China's unilateral attempts to alter the status quo in the East China Sea and South China Sea. In response, the government plans to review three critical security documents this year to craft a new defense strategy and will hasten the review of arms export regulations to bolster overseas sales and support defense firms.
The Prime Minister has fast-tracked the 2023 military enhancement initiative, aiming to double the defense budget to 2% of GDP by March's end, positioning Japan among the top global defense spenders. Despite the constitutional constraints against war, she announced the formation of a National Intelligence Service, which she will lead. Additionally, Takaichi proposed the formation of a committee to scrutinize foreign investments in sensitive sectors and committed to reducing dependency on specific countries by fortifying supply chains. This includes exploring key minerals, such as rare earth elements, around the Minamitori Island in collaboration with partners. Furthermore, she revealed plans to restart nuclear reactors decommissioned post-Fukushima disaster in 2011.
Economically, Prime Minister Takaichi pledged to abandon excessive austerity measures and implement regulations to stabilize Japan's financial standing. She stressed the importance of responsible and proactive fiscal strategies to foster investment in artificial intelligence, semiconductors, and shipbuilding, which she believes will drive national growth. Her previous advocacy for significant spending hikes and tax cuts had triggered investor unease, leading to a sell-off of Japanese government bonds and the yen due to concerns over financing amidst Japan's substantial debt burden among developed countries.