- Tokyo Gubernatorial Election
- Nikkei Stock Average
- Real Wages
- The Green Transformation (GX)
- Corporate Scandals
Tokyo Gubernatorial Election
(aカジノシークレット take on the outcome of the Tokyo gubernatorial election and the by-elections for the Tokyo Metropolitan Assembly [balloting for both held on July 7] and his expectations toward Governor Koike) My impression is that as the incumbent, Governor Koike had strong support. Her record of accomplishment during the eight-year reign of her administration was a major factor. Tokyo faces a plethora of challenges, from solidifying its competitiveness as a leading hub of international finance and countering a declining birthrate to measures aimed at protecting the capital from natural disasters. I look forward to seeing Governor Koike continue demonstrating her strong leadership.
In the Metropolitan Assembly by-elections, the LDP secured its position as the leading party. However, due to close contests for seats in several electoral wards, some of its candidates lost. My feeling is that lingering voter discontent over recent political funding scandals factored into that outcome.
Nikkei Stock Average
(In response to a question seeking the Chairman's take on the all-time high set by the Nikkei average last week) I think the new record high iaカジノシークレットomething we can be happy with. Conversely, it is not a big reason for optimism or pessimism either way. The public and private sectors have shown progress with forward-looking measures aimed at completely eliminating deflationary pressures, and I think those efforts have begun to pay off by bringing the economy to a major inflection point. We want the strength of the Japanese economy to be rated accordingly and reflected through the yen rate as well.
Real Wages
(aカジノシークレット views on the 26th consecutive monthly decline in real wages reported in the Ministry of Health, Labour and Welfare's Monthly Labour Survey for May) We need to keep in mind that the consumer price index used to calculate real wages for the MHLW's monthly labor survey is based on total consumer expenditures excluding imputed rent for owner-occupied housing, and therefore tends to be higher than the index used at conferences held by the Bank of Japan or the national government, which is based on total consumer expenditures excluding those for perishable foods. Wage increases this year have actually surpassed the record hikes recorded last year. However, many companies, and SMEs in particular, have yet to begin payouts based on their new wage schedules (expected to take effect no earlier than June). I think this is one reason the statistics do not yet fully reflect the effects of the recent wage hikes. (According to a survey by the Japan Center for Economic Research), close to 80 percent of economists project that real wages will begin showing net growth before the end of 2024. I anticipate those projections will come true.
The Green Transformation (GX)
(In response to a question regarding the relationship between the Green Transformation [GX] and the Digital Transformation [DX], two concepts that have been cited as potentially contradictory) It is imperative that Japan pursue both the GX and DX initiatives. For instance, the power of the digital transformation will be necessary if Japan is to utilize electric power more efficiently and diversify its power sources. I think the implication is that we will need to develop new technologies to meet the growth in demand for electric power driven by the spread of AI and other power-hungry data processing operations.
(In response to a question—posed in connection with delays in the schedule for the International Thermonuclear Experimental Reactor [ITER] project—inquiring about the future path to the realization of fusion-based power generation and the utilization of other sources of power) Global warming is a challenge that demands immediate action, and harnessing fusion power will be in the interest of the planet as a whole. The ITER project is a joint undertaking of various countries and regions that is aimed at making fusion power generation a reality. This is a goal I certainly want to see achieved. At the same time, I believe it would be worthwhile for individual nations to harness the knowledge gained to date and pursue their own approaches to this technology through friendly competition.
Moreover, given predictions that fusion-based power generation may not be a commercially viable option within the next 10 to 20 years, and considering the goal of attaining carbon neutrality by 2050, in the context of surmounting the challenges posed by the high-level radioactive waste produced by the current generation of light-water reactors, I strongly look forward to seeing Japan move ahead with the development of next-generation reactor technologies.
Corporate Scandals
(In response to a question regarding the recent spate of cases of corporate noncompliance, including violations of the Subcontract Act by a Toyota subsidiary and bogus transactions by Kawasaki Heavy Industries) This is extremely regrettable. As I have often stated, corporations are expected to engage in activities that live up to the standards of society. They should discipline themselves and engage in activities that contribute to society. Further, they must firmly abstain from noncompliant forms of behavior. It is critically important that companies engage in appropriate transactions with their subcontractors. Keidanren revised its Charter of Corporate Behavior (in May), adding the stipulation that companieaカジノシークレットupport mutual prosperity across their supply chains as a whole, in compliance with the Declaration of Partnership Building.
If corporate frameworks for compliance can be reinforced such that incidents of this nature can be more readily recognized, that in itself will be an achievement. Keidanren will step up its efforts to encourage member-company compliance with its Charter of Corporate Behavior.