After the first cabinet meeting, Prime Minister Sanae Takaichi (center, front row) poses for a commemorative photo with her new ministers, October 21 afternoon, Prime Minister’s Office (©Sankei by Naoki Aikawa).
Sanae Takaichi, Japan's first female prime minister, formally launched her government on October 21, the day she was elected the 104th prime minister in both houses of the Diet.
The new administration marks a historic moment not only for its gender symbolism but also for its ideological clarity. It is a government anchored in economic revitalization, national security strengthening, and a return to conservative principles.
Within the Liberal Democratic Party (LDP), the Takaichi Cabinet shows a deliberate effort at strategic reconciliation, blending loyalists and rivals to strengthen party unity. Beyond personnel balance, the administration signals an assertive fiscal stance and a pragmatic, security-minded diplomacy. It is a carefully constructed and competent team that aims to demonstrate swift results under the banner of "change without fear."
Who's In the Cabinet
- Yoshimasa Hayashi: Minister for Internal Affairs and Communications
- Hiroshi Hiraguchi: Minister of Justice
- Toshimitsu Motegi: Minister for Foreign Affairs
- Satsuki Katayama: Minister of Finance / Financial Affairs
- Yohei Matsumoto: Minister of Education, Culture, Sports, Science and Technology
- Kenichiro Ueno: Minister of Health, Labor and Welfare
- Norikazu Suzuki: Minister of Agriculture, Forestry and Fisheries
- Ryosei Akazawa: Minister of Economy, Trade and Industry
- Yasushi Kaneko: Minister of Land, Infrastructure, Transport and Tourism
- Hirotaka Ishihara: Minister of the Environment / Minister in charge of Nuclear Disaster Prevention
- Shinjiro Koizumi: Minister of Defense
- Minoru Kihara: Chief Cabinet Secretary / Minister in charge of Abduction Issues
- Masaaki Taira: Minister for Digital Transformation
- Takao Makino: Minister for Reconstruction
- Jiro Akama: Chairman, National Public Safety Commission / Minister for Disaster Management
- Hitoshi Kikawada: Minister of State for Okinawa and Northern Territories Affairs
- Minoru Kiuchi: Minister in charge of Japan's Growth Strategy
- Kimi Onoda: Minister for Economic Security / Foreign Residents Policy
Meritocracy Over Quotas
At her first press conference on October 21, Takaichi defended her decision to appoint only two female cabinet ministers, Finance Minister Satsuki Katayama and Economic Security Minister Kimi Onoda. She explained that the selection was based on "opportunity equality and competence," not symbolism.
While some media outlets lamented the limited female representation, Takaichi insisted that her goal was to build a team "fit for purpose" to deliver tangible progress for the public. Observers expect more female appointments in the upcoming round of vice-minister and parliamentary secretary posts.
Katayama and Onoda are among Takaichi's closest political allies. Both served as her endorsers in the LDP presidential race, and their portfolios touch on two of the country's most sensitive policy fronts: fiscal reform and immigration.
Katayama, a former Finance Ministry bureau chief, will oversee a sweeping review of tax exemptions and subsidy schemes that Takaichi once criticized as "distorting market signals and rewarding waste." The new coalition agreement between the LDP and Nippon Ishin no Kai specifically calls for a full audit of high-value subsidies and the creation of a government efficiency bureau to scrutinize them.
As economic security and foreign labor minister, Onoda's role reflects Takaichi's intent to re-anchor economic growth within a national security framework. Onoda has been a vocal critic of foreign influence in Japanese land ownership and campaign finance. Her promotion signals that Tokyo will move forward with legislation tightening restrictions on foreign land purchases near military bases and critical infrastructure in 2026.
Responsible Fiscal Expansion
Takaichi's economic vision represents a decisive shift from the austerity mindset that has long dominated Japan's finance bureaucracy.
Her doctrine of "responsible fiscal expansion" implies wise investment, not limitless spending, channeling funds into growth sectors such as semiconductors, AI, and defense production while avoiding wasteful outlays.
As economic commentator Mariko Mabuchi explained on the October 22 broadcast of Nippon Journal, Takaichi's approach aligns with the latest thinking of major international institutions such as the Organisation for Economic Co-operation and Development and the International Monetary Fund.
Mabuchi noted that these organizations now recognize that "strategic public investment can boost supply capacity without triggering runaway inflation."
Market reaction has so far been steady. Ten-year Japanese bond yields remained stable around 1.6%, suggesting that investors trust the government's ability to manage debt prudently. Meanwhile, business sentiment is rising. "Corporate leaders sense a renewed clarity and confidence in economic policy that we haven't seen since the (Shinzo) Abe years," Mabuchi said.
The Cabinet also signaled its intent to prioritize small and medium-sized enterprises. Takaichi has pledged to channel targeted subsidies to local governments and viable regional firms to support wage increases. Observers expect the coalition to negotiate a balanced mechanism that incentivizes productivity without abandoning struggling enterprises.
A Centrist Shift and Institutional Reform
The LDP–Ishin coalition agreement forms the political spine of the Takaichi government. Analysts see it as a return to ideological coherence after years of compromise with the centrist Komeito party. As journalist Makiko Takita observed, the two parties share a similar "national vision," particularly on security and fiscal policy, and can pursue reforms that previous coalitions blocked.
The new government has already set its sights on creating a National Intelligence Agency, with a dedicated director by 2026, to centralize Japan's fragmented information-gathering apparatus.
It also intends to abolish the so-called "five categories" rule against the export of defense equipment, a restriction long championed by Komeito. The reform would enable Japan to participate more actively in joint weapons development projects with Australia, and with the UK and Italy under the Global Combat Air Programme, opening a new era for its defense industry.
Journalist Gentaro Saigusa praised these moves as "finally normal for a sovereign nation," arguing that for decades Japan had been "held back by self-imposed constraints under the name of pacifism." Takaichi's appointment of former Air Self-Defense Force officer Sadamasa Oue as National Security and Nuclear Non-Proliferation Advisor was widely viewed as a symbol of this new realism.
Youth and Continuity
The new Takaichi Cabinet includes ten first-time ministers, reflecting a mix of renewal and continuity. Political reporters see the composition as a delicate balancing act. Sankei Shimbun writer Nobuhiro Imanaka described it as "a blend of 'reward and reconciliation,' bringing rivals into key positions to unite a fragmented LDP after a bruising leadership contest."
Foreign Minister Toshimitsu Motegi and Chief Cabinet Secretary Minoru Kihara anchor the government's foreign and domestic policy apparatus. The appointment of Shinjiro Koizumi as Defense Minister, a surprise to many, suggests an attempt to appeal to younger voters and project generational renewal.
Six ministers from the Motegi faction and three from the former Fumio Kishida faction entered the Takaichi Cabinet. Appointments from the embattled Abe faction, however, were limited to avoid the lingering money and politics controversy, he suggested
A Conservative Reform Agenda
Takaichi inherits a narrow window for action: two years until the next LDP leadership election. Yet she has a rare opportunity to reshape Japan's policy landscape.
Economically, her promise of a supplementary budget by year's end and a 2026 fiscal reform bill could define her tenure. On security, constitutional revision to explicitly recognize the Self-Defense Forces is back on the agenda. Though the LDP–Ishin–DPP bloc still falls short of a two-thirds majority, momentum is growing.
As Mabuchi concluded, "Takaichi's government offers many reasons for hope because it believes Japan can once again grow through intelligent investment and national self-confidence." She argued that this mix of prudence and ambition could restore faith in Japan's ability to achieve sustainable growth.
For a country eager for direction after years of cautious governance, the Takaichi Cabinet may be Japan's most cohesive attempt in a decade to marry economic revival with strategic realism. It also seeks to prove that decisive leadership and female leadership need not be mutually exclusive.
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Author: Daniel Manning
