Prime Minister Kishida has set his sights on revitalizing Japan’s economy, with a particular emphasis on fostering wage increases across small and medium-sized enterprises (SMEs). Addressing members of the Japan Chamber of Commerce and Industry, Kishida stressed the pivotal role that wage hikes play in propelling economic expansion and urged concerted efforts from both the government and the business sector to advance this agenda.
In his address, Kishida underscored the need for Japan’s economy to transition from a longstanding focus on cost-cutting measures towards a more dynamic growth-oriented model. He highlighted the significance of wage hikes that are resilient against rising prices, identifying them as crucial drivers for sustainable economic development.
Commending the recent wave of substantial wage increases in major corporations during this year’s spring negotiations, Kishida expressed his optimism for extending this positive momentum to SMEs and smaller businesses. He reiterated the government’s commitment to providing robust policy support to facilitate wage increases within these sectors.
To enable SMEs to implement wage raises effectively, Kishida outlined plans for creating an environment where businesses can adjust their prices to cover labor costs adequately. Additionally, he signaled intentions to explore avenues for offering tax incentives and other forms of support to assist SMEs in meeting higher wage demands.
In his closing remarks, Kishida emphasized the indispensable role of collaboration between the government and the Japan Chamber of Commerce and Industry in seizing the opportunity for comprehensive deflation recovery and steering Japan’s economy towards sustained growth. His call to action resonates as a testament to the collective responsibility shared by all stakeholders in fostering an inclusive and thriving economic landscape for Japan.
