Kishida's Policy Speech To Centre Around "New Capitalism," Security Strategy Revision

Prime Minister Fumio Kishida will deliver his first policy speech to lawmakers on Friday. The NHK, Nikkei and Sankei have circulated snips from the draft version of Kishida's address.

• NHK noted that the new Premier will reiterate his commitment to "new capitalism," putting greater emphasis on distributional issues. In line with this approach, he will promise tax cuts for firms which have raised wages of their employees and a boost to social security spending. Furthermore, Kishida will point to a growth strategy based on bold investments in R&D and development of digital infrastructure.
• He will also outline plans to tackle the outbreak of Covid-19 by the implementation of oral therapeutic drugs within a year, actively utilising vaccine certificates and amending the law to secure medical resources.
• The Nikkei reported that the Premier is set to pledge relief to all businesses affected by the outbreak of Covid-19, regardless of their location or industry affiliation. The measure may target businesses which experienced a significant drop in sales.
• The Sankei suggested that Kishida will launch a review of the National Security Strategy (NSS), which defines the guiding principles of Japan's foreign and defence policy. The current NSS was adopted by the Abe Cabinet in 2013.
• The key revisions to the NSS will include emphasising economic security and focus on the ability to strike enemy bases. While announcing these changes, Kishida will underscore Japan's advocacy of a "free and open Indo-Pacific," while flagging bigger assertiveness towards China.
• In addition, Kishida is expected to unveil plans to revise the National Defence Programme Guidelines (NDPG) and the Medium-Term Defence Programme (MTDP). NDPG sets forth the basic policy for Japan's defence, while MTDP is a five-year defence spending plan based on NDPG.