Japan PM wins opposition backing for economic stimulus

TOKYO - Japanese Prime Minister Shigeru Ishiba’s new minority government won backing on Nov 20 from a kingmaker opposition group for an economic stimulus package, the party’s chief said.

The Liberal Democratic Party’s worst election result in 15 years last month left Mr Ishiba’s ruling coalition short of a majority and needing opposition support to pass legislation.

On Nov 20, the head of the smaller Democratic Party for the People (DPP) said it reached a deal to back the stimulus package drawn up by Mr Ishiba’s LDP and its junior coalition party Komeito.

The raft of measures, which is aimed at easing public anger over rising prices which contributed to October’s election result, could be approved by the Cabinet on Nov 22, media reports said.

“The new comprehensive economic stimulus measures include many items that relate to taxation reforms and the (next) government budget,” DPP chief Yuichiro Tamaki posted on social media platform X.

“Your votes moved the wall that had not moved for 30 years,” he said.

In exchange for its support, the LDP and Komeito agreed to a DPP proposal to lift the ceiling for tax-free annual income above 1.03 million yen (S$8,882), media reports said.

The smaller party says this has not moved for 30 years, and that lifting it would ease labour shortages and boost consumer spending by encouraging part-time staff to work longer hours and earn more.

“With the ruling coalition falling short of a majority, we will need to listen carefully to what the opposition has to say and cooperate with them, before deciding on policies,” LDP policy chief Itsunori Onodera told local media.

“The discussions this time probably are our first attempt at doing so, and set an example of how we should go about negotiating with the opposition,” he said.

The LDP has governed Japan almost uninterrupted for decades.

But voters punished the party at the ballot box last month because of inflation and a party slush fund scandal that contributed to the downfall of Mr Ishiba’s predecessor, Mr Fumio Kishida.

Mr Ishiba, 67, won a tough LDP leadership battle and took office as premier on Oct 1, calling the snap election days later in an attempt to shore up his position.

A survey this week showed the approval rating for Mr Ishiba’s Cabinet at 46 per cent, down five percentage points from when his Cabinet – which includes only two women – was formed in October.

He was spotted napping in Parliament last week, and this week drew ridicule on social media for missing a group photo with fellow world leaders at a meeting in Peru after getting stuck in traffic. AFP