Japan's New PM Pledges to Fast-Track Military Buildup

(MENAFN) Japan's newly installed prime minister pledged Friday to implement an "aggressive" fiscal strategy aimed at stimulating economic expansion and increasing military expenditures, while characterizing China as an "important neighbor."

In her inaugural policy address to parliament, Sanae Takaichi presented her economic blueprint against a backdrop of worldwide economic volatility and ongoing inflation challenges.

"I will turn (people's) anxieties about the present and future into hope and build a strong economy," she stated, according to media.

To combat rising prices, Takaichi unveiled proposals to eliminate the temporary gasoline levy, implemented in 1974, before the current parliamentary session concludes December 17, and to increase the tax-free income ceiling from 1.03 million yen ($6,700) to 1.6 million yen this year.

Takaichi's address follows her Tuesday election victory, establishing her as Japan's first woman prime minister.

Takaichi additionally announced Japan will elevate defense expenditures to 2% of GDP by March, accelerating the timeline by two years.

Japan, ranking as the globe's fourth-largest economy, previously indicated it would allocate approximately $70 billion toward defense in the current fiscal year concluding next March, representing 1.8% of GDP.

"We need to proactively promote the fundamental strengthening of our nation's defense capabilities," to address "various changes in the security environment" since the three policy papers were drawn up in late 2022, Takaichi remarked.

The trio of foundational documents—the National Security Strategy, the National Defense Strategy, and the Defense Buildup Program—received approval from the former Kishida administration in December 2022, signaling a substantial transformation in the nation's postwar defense doctrine.

Takaichi characterized the partnership with the US as the "cornerstone" of Japan's diplomatic and security framework and indicated her administration will strengthen multilateral discussions with nations including South Korea, the Philippines, Australia and India, while advancing a "free and open Indo-Pacific."

Japan maintains over 50,000 American military personnel alongside defense installations and weaponry under a bilateral security pact.

US President Donald Trump is scheduled to visit Japan next week for talks with Takaichi. Tokyo is simultaneously arranging a telephone conversation between the two leaders on Saturday.

Addressing the world's second-largest economy, Takaichi labeled China an "important neighbor" and emphasized Tokyo must cultivate "constructive and stable" relations with Beijing while pursuing a "strategic and mutually beneficial" partnership.

Responding to reports that certain tourists and foreign nationals are flouting local ordinances, Takaichi committed to handling the matter "firmly," while stressing her government would maintain clear separation from "xenophobia."

"Without political stability, we cannot advance robust economic, diplomatic, or security policies," she concluded.

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