Nearly 70% of major Japanese companies are looking to Sanae Takaichi’s administration to advance policies in the fields of economic security and energy, according to a Sankei Shimbun survey of 101 leading firms released on May 6.<\/p>\n
Heightened international tensions, including developments in the Middle East, are increasingly casting a shadow over the management of Japanese companies. With the administration’s political footing strengthened by a sweeping victory in the Lower House election, many firms are calling for steady progress on key policy challenges.<\/p>\n
The survey was conducted from March 23 to April 22. Asked which policies they most hoped the government would pursue, with multiple responses allowed, 68% of companies cited economic security\u2014the highest share\u2014followed by energy policy at 66%.<\/p>\n
Security, Supplies and Power<\/p>\n
On economic security, several companies pointed to geopolitical risks. “Strengthening supply chains and securing strategic materials are becoming increasingly important,” one manufacturer said.\u00a0<\/p>\n
A company in the transport and postal services sector said, “The public and private sectors need to work together to strengthen supply chains and enhance business sustainability.”<\/p>\n
Against the backdrop of China’s tighter export controls on rare earths and dual-use goods to Japan, companies are placing greater emphasis on stronger public-private cooperation to procure strategic materials and secure alternative sources of supply. Dual-use goods refer to items that can be used for both civilian and military purposes.<\/p>\n
On energy policy, one manufacturer said it hoped to see “the establishment of an energy foundation that supports decarbonization and digitalization.” Companies in the electricity and gas sector said they expected government support for a stable energy supply and decarbonization.\u00a0<\/p>\n
Some companies called for concrete measures, including securing alternative energy sources amid rising crude oil prices and improving the country’s energy self-sufficiency.<\/p>\n
Growth Strategy in Focus<\/p>\n
The survey also revealed a strong demand for measures to address rising prices and to reform social security policy.\u00a0<\/p>\n
However, negative views stood out over the planned consumption tax cut, with companies in the lodging, dining, and services sector saying it would only yield a temporary economic recovery.<\/p>\n
Meanwhile, a combined 79% of respondents said they either “strongly approve” or “somewhat approve” of the Takaichi administration’s push for “responsible proactive fiscal policy” and its plan to focus investment on 17 strategic sectors.\u00a0<\/p>\n
Companies are also closely watching the direction of the government’s new Basic Policy on Economic and Fiscal Management and Reform, expected to be compiled as early as this summer, as well as its broader growth strategy.<\/p>\n
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Author: Takehiko Nagata, The Sankei Shimbun\u00a0<\/p>\n