Ishiba Announces New Government: Foreign Policy, Economy, and AI

On November 11, Shigeru Ishiba was confirmed a second time as the prime minister by the National Diet. He will be heading a minority government led by his own Liberal Democratic Party (LDP) and Komeito.

Promising to create "a future for all citizens," he appealed to the public for support: "In both foreign and domestic affairs, there is no greater force than the understanding of the people of Japan," he lauded.

Among his new policies, he promised more transparency in politics. He also announced economic measures such as an additional ¥10 trillion JPY ($ 65 billion USD) in cutting-edge technology investment in artificial intelligence (AI) and semiconductors.

Following are additional key aspects of Ishiba's new government.

The Road to Ishiba's Government

In the October 27 general election, Ishiba's party lost the overall majority in the lower house of the Japanese parliament for the first time since 2009. This put Ishiba's position as Japan's leader in flux. It also led to questions about whether opposition parties would form an alternative coalition.

Those doubts were cleared up on November 11, when Ishiba was voted PM on the second ballot in the Diet. Later that evening, he announced his new cabinet, keeping most of the ministers appointed to his first cabinet on October 1.

However, three ministers were replaced. The new faces are:

Justice Minister: Keisuke Suzuki
Agriculture Minister: Taku Eto
Transport Minister: Hiromasa Nakano

Suzuki, an LDP member, is 47 years old. His previous experience includes time in the foreign ministry. Eto is 64 and has served as chairman of the LDP's General Agriculture and Forestry Policy Research Committee. Both men replaced cabinet members who lost their seats in the October 27 election.

Nakano comes from the Komeito party. He took his post after the previous Transport Minister, Tetsuo Saito, was elected party leader.

*Prime Minister Shigeru Ishiba at a meeting of LDP members of both houses of the Diet on November 7 at LDP headquarters. (©Sankei by Ataru Haruna)*

Ishiba Addresses Political Funds Issue

Ishiba fleshed out his policies in a late evening press conference on November 11.

A large part of his opening remarks and many reporters' questions focused on the politics and money scandal. Pledging to address the public unease, Ishiba promised to work toward a party funds reform bill to be presented to lawmakers in the next two months.

He also proposed forming a third-party monitoring body charged with ensuring the transparency of political funds.

The political funds issue colored all aspects of the debate on the campaign trail. Some commentators viewed October 27's disappointing electoral result as a lack of confidence in the LDP's capacity to become a more transparent party.

Defense and Foreign Affairs

Ishiba dedicated an important portion of his speech to national defense and foreign affairs.

On defense, he highlighted the dangerous security environment in Asia, with North Korea firing intercontinental ballistic missiles.

"It is indisputable that Japan's defense capability as a deterrent force must be drastically strengthened. However, no matter what equipment is introduced, the foundation of defense capability lies in the human resources of the Self-Defense Force," said the PM. He pointed towards the SDF only having 90% of its necessary staff and pledged to discuss ways to improve the situation.

Ishiba also promised to present a bill at an early date in the National Diet on the theme of cybersecurity.

With regards to the abductions issue with North Korea, the new leader mentioned his determination to work towards bringing abductees home by all possible means. Ishiba stressed it was a serious concern, "not just an issue of kidnapping, but an infringement of national sovereignty."

Leader Meetings Ahead

On foreign affairs, Prime Minister Ishiba said he plans to attend two summits soon. First is the Asia-Pacific Economic Cooperation (APEC) in Peru on November 15-16. It is immediately followed by the G20 in Brazil on November 18-19.

With these dates in mind, Ishiba expressed his intention to meet United States President Joe Biden and South Korean President Yoon Suk-Yeol. Local media reported that Ishiba is also expected to meet Chinese President Xi Jinping on the fringes of APEC.

Regarding President-elect Donald Trump, Ishiba confirmed that he congratulated Mr Trump by phone on the election result.

The Japanese PM said he hopes to meet Trump soon. "To maintain our extremely favorable Japan-US relationship and take it to new heights, we would like to have an opportunity for a direct meeting at the earliest possible time," he explained.

Economy Matters

Like other countries, Japan is seeing stuttered economic growth and rising costs of living following the war in Ukraine.

To address some of these concerns, Ishiba pledged to continue the discussion with opposition parties on tax breaks that would increase disposable income.

Following his commitment to revitalizing local communities, he also called on local governments to take an active part in unlocking Japan's potential in sectors such as fisheries, manufacturing, and services.

"I have long said that untapped local industries could be the catalyst for the country's growth," he said.

On innovation, the prime minister also said he would continue Kishida's policy of investing in startups and new technologies, such as semiconductors.

He pledged more than ¥10 trillion ($65 billion) for the AI and semiconductor sector by fiscal 2030. Ishiba expressed the hope that this would catalyze public and private investment of more than ¥50 trillion over the next 10 years.

Safety and Disaster Resilience

Echoing his campaign slogan of "protecting Japan," Ishiba expressed his ideas for investing in the country's disaster resilience.

On safety, the prime minister addressed the recent trend of robberies and crimes in large cities — often associated with yami baito, which can be translated as "shady jobs".

"We will further promote crime prevention measures, such as installing security cameras and doors with high-security performance. And we will help support volunteer patrol activities," said Ishiba.

Regarding disaster prevention, his first cabinet launched a national agency for disaster management on November 8. The newly elected leader expressed his wish to continue strengthening related research and information.

"Some say that nearly 20% of the earthquakes of magnitude 6 or greater around the world occur in Japan," he acknowledged. Then he advocated considering measures to improve disaster response. For example, wider use of food trucks, quicker deployment of toilets, and digital transformation to consolidate information sharing in times of disaster.

Author: Arielle Busetto