Japan’s Koizumi aims for wage growth in policy proposal reveal

[TOKYO] Shinjiro Koizumi, a reform proponent running for Japan’s ruling party’s top position, said he will aim to create fresh economic measures immediately to counter inflation and raise average wages by one million yen (S$8,674) within five years.

Koizumi released his policy proposals on Saturday (Sep 20) in Tokyo, saying he will reduce petrol levies and overhaul income taxes, while aiming to use the increase in tax revenues to spur economic growth. Along with his goal for wage gains, he also targets to boost investments in Japan by 135 trillion yen by fiscal year 2030.

He is likely to be one of the front-runners in the leadership election of the ruling Liberal Democratic Party, alongside pro-stimulus right-winger Sanae Takaichi, who outlined her policy proposals on Friday. Campaigning for the leadership race starts on Sep 22, with the vote taking place on Oct 4. BLOOMBERG