THIS WEEK’S TOPIC: As a business leader, what policy changes – if any – do you expect or hope to see in Japan, under its new prime minister?
Japan’s Prime Minister Yoshihide Suga has declared that he would not be deviating from his predecessor’s economic policies – centred on expansive monetary policy to tackle deflation; flexible fiscal policy to restrain public debt; and structural reform to promote investments, revive productivity and lift growth.
By and large, Abenomics has worked. During Shinzo Abe’s term, the Japanese economy fared better than in previous years with low inflation and low unemployment. There are three specific policies I would like to see Mr Suga do well on.
Firstly, a more targeted fiscal policy to bring down Japan’s high public debt, which is currently over one quadrillion yen or about 240 per cent of GDP. Secondly, stronger structural reforms to digitalise the economy and remove excessive bureaucracy. Finally, exhibiting a more congenial personality on the global stage. Mr Abe repeatedly visited the controversial Yasukuni shrine that commemorates Class-A war criminals.
Mario Singh
Chief Executive Officer
Fullerton Markets
