Prime Minister Fumio Kishida announced on Wednesday he would step down next month, adding that he will not stand for another term as leader of the Liberal Democratic Party (LDM), the dominant political force – it has been in power in Japan for most of the last seven decades – since 1955. This will give the party a new leader a year to prepare for the next elections to be held in Oct 2025.
Kishida has been dogged by months of record-low cabinet approval ratings and local election losses for the LDP, fuelled by public frustration over how the party raised and managed money for political purposes, says Nikkei Asia. The cabinet’s approval rating hovered around the 20% range for eight consecutive months to July, according to a Nikkei poll, down from the 60% range when Kishida took office in late 2021. Under his leadership, the LDP has been hit by revelations about its relationship with the Scandal-hit Unification Church, and since December last year, by another scandal over party factions’ use of political funds, shaking public trust in politics, adds Nikkei Asia.
The economy remains sluggish; the Yen has weakened and the cost-of-living has risen in the world’s fourth-largest economy.
Kishida will be remembered for his efforts to ramp up Japanese defense spending and preparedness, and for improving relations with neighbours and the U.S. allies South Korea and The Philippines.
MitKat Advisory will continue to monitor events likely to impact businesses and supply chains across the APAC region.
What challenges will the new Liberal Democratic Party Leader and Japan’s next PM be faced with? What will be the implications for the wider APAC region? Expert views would be welcome.