Japan Prime Minister, Shigeru Ishiba, is set to introduce a new “happiness index” during his inaugural parliamentary policy address on Friday, according to local media. Developed through collaboration between the public and private sectors, this index will be presented alongside Ishiba’s economic initiatives and strategies to address the nation’s declining population.
At 67, Ishiba assumed the role of prime minister on Tuesday following a closely contested leadership election within the ruling party. He has indicated plans to call a snap election on October 27 to strengthen his political mandate, particularly for policies aimed at bolstering regional governments and supporting low-income households.
While the speech’s focus on foreign policy remains uncertain, reports from NHK and other outlets suggest Ishiba will reaffirm his commitment to combat inflation and reveal a new monetary stimulus plan. Last week, the yen surged after the Liberal Democratic Party (LDP) elected Ishiba as leader, owing to his support for the Bank of Japan’s move away from its ultra-loose monetary policies. However, Ishiba later tempered expectations, stating on Wednesday that he did not see conditions as favorable for further interest rate hikes, causing the yen to weaken again.
In addition, the prime minister is expected to announce a plan to raise the national minimum wage to 1,500 yen ($10.22) by 2030, up from the current 1,055 yen, as part of efforts to improve Japan’s per capita GDP and overall happiness.
Ishiba is also likely to describe Japan’s ageing population as a “silent crisis” that strikes at the heart of the nation. He is expected to unveil plans for a new disaster management ministry to address the risks in the earthquake and flood-prone country, while also emphasizing the critical role of nuclear energy. Though nuclear power remains a controversial issue in Japan, particularly after the 2011 Fukushima disaster, it is supported by the business community.
Takahide Kiuchi, an economist at Nomura Research Institute and a former Bank of Japan board member, remarked that Ishiba’s speech appears geared toward securing victory in the upcoming election and solidifying his power base.
