Who will lead Japan? Ruling party faces tough questions on living costs, immigration and public trust

TOKYO: Cost of living, immigration, and public trust are among the key issues that have emerged as Japan’s ruling Liberal Democratic Party (LDP) prepares to elect a new leader on Saturday (Oct 4).

Five candidates are vying to succeed Prime Minister Shigeru Ishiba, who is stepping down as the party’s president after a string of electoral defeats.

His successor will face the challenge of tackling rising living costs, which analysts say were a major factor behind the party’s loss in the recent Upper House election. 

RISING LIVING COSTS

So far, the LDP has resisted calls to cut the consumption tax. It is currently set at 10 per cent, with a reduced rate of 8 per cent for essentials such as groceries.

But that stance could shift depending on who wins, observers said.

“Food is an essential for everyone,” said frontrunner and former economic security minister Sanae Takaichi, who lost to Ishiba in the previous run-off.

“With focus on food, I proposed whether it might be possible to reduce it (consumption tax) to zero.”

However, there are concerns that such a cut could undermine funding for Japan’s social welfare system.

Another contender, Yoshimasa Hayashi, the top government spokesman in Ishiba’s Cabinet with extensive ministerial experience, said: “Post-baby boomers will soon join the elderly population. That means (the number of elderly) is on the rise.”

Most candidates rejected an earlier LDP pledge to provide uniform cash handouts.

Instead, they proposed measures to spur real wage growth and curb inflation, such as cutting the petrol tax, lowering social insurance premiums, and implementing income tax breaks.