Japan’s private sector urges political leadership as election nears

TOKYO (Kyodo) — Japanese business circles have expressed hope for more accountability and stronger leadership to ensure economic growth, as Prime Minister Shigeru Ishiba on Wednesday dissolved the House of Representatives for a snap election.

Masakazu Tokura, chairman of the Japan Business Federation, the nation’s biggest business lobby, said the recent slush fund scandal in Ishiba’s Liberal Democratic Party is “highly regrettable from the viewpoints of governance and transparency over political funds.”

“We hope politicians make further efforts to regain trust from the public,” he said at a press conference Monday.

Ishiba dissolved the lower house only eight days after being elected prime minister by parliament, setting the stage for an Oct. 27 general election, after which his leadership in reforming the scandal-tainted LDP will be fully tested.

The Japan Association of New Economy, headed by e-commerce giant Rakuten Group Inc. President Hiroshi Mikitani, demanded strong leadership in the new government to realize sustained economic growth in the country.

“We cannot realize a bright future without economic growth and the development of each industry,” Mikitani said in a statement issued ahead of the dissolution. “We hope that bold structural reforms are carried out under a strong leadership, without being bound by vested interests.”

The Kansai Economic Federation, a business lobby consisting of major firms headquartered in western Japan centering on Osaka, called for continued support for the planned 2025 World Exposition in Osaka.

“We hope the new government ramps up efforts to promote the expo as it is an important national project that leads to economic growth in our country,” it said in a statement on Monday.