J Update

K awasaki Heavy Industries (KHI)   revealed   that it had accumulated secret fund for giving gifts to the crew of submarines they had supplied to Marine Self-defense Force (MSDF). The gifts have been sent from inappropriate funds since forty years ago. The amount of the secret fund is estimated as 1.7 billion yen at least between FY 2018 and FY 2024. The incident represents obscure relationship between military and industry. Marine Self-defense Force has twenty-five submarines. Twelve out of them were made by KHI. Those submarines have inspection in every three years in Kobe, where KHI headquarters is located. It takes a half year for overhauling. During the period of inspection, KHI provided with tools for repair or shoes based on request of the crew. The crew, in return, participated in the inspection of KHI, laboring for maintenance of devices.   The crews eventually requested goods unrelated to the inspection. They included game machine, fishing tools or golf gears. K...

Upholding disaster prevention as one of his main agenda, Prime Minister Shigeru Ishiba   launched   a ministers’ meeting for promoting disaster-preventing nation on December 20 th . The ministers confirmed enhancement of human resource to deal with natural disasters, such as earthquake, flood or wind storm, in national and local governments. The Cabinet is going to raise the budget for disaster prevention in FY 2025.   Ishiba stressed his position for enhancing disaster prevention policy in the campaign of presidential election of the Liberal Democratic Party in September, considering serious demands for reconstruction from the major earthquake in Noto Peninsula on January 1 st , 2024. He included establishment of Ministry of Disaster Prevention in his campaign platform.   As stipulated in Disaster Management Basic Act, National Disaster Management Council, established in Cabinet Office and topped by the prime minister, coordinates disaster prevention plan. There has...

Shigeru Ishiba Cabinet   approved   on December 27 th   the draft of FY 2025 budget, which marked ever largest amount of 115 trillion and 541.5 billion yen (732 billion dollar). Price inflation caused increase of tax revenue, which led bold spendings of the government. However, the government has not get rid of the trend, which had swollen in emergency of COVID-19.   The greatest budget that passed the Diet was 114 trillion yen for FY 2023. FY 2024 budget was reduced from the previous year to 112 trillion yen. FY 2025 budget gets back to the tendency of budget inflation with increased spendings. The spendings in FY 2025 exceeded FY 2024 by about 3 trillion yen.   Each spendings for social security, defense and reimbursement for Japanese governmental bonds (JGB) marked new record. The government calculated necessary payment for social security in FY 2025 to be 38.2 trillion yen, increasing by 558 billion yen from FY 2024. Aging society overrides saving efforts in...

Minister of Defense, Gen Nakatani, told the mayor of Nago city, Okinawa, that the United States Marine Corp began to relocate its part of unit to Guam, according to the agreement between governments of Japan and the U.S. It was, however, only one hundred personnel out of planned nine thousand. It is just beginning of relocation plan for reducing burden of Okinawa where seventy percent of U.S. forces in Japan is concentrated. The sentiment of anti-U.S. forces in Okinawa reached a tipping point in 1995 when twelve-year-old girl was raped by three members of U.S. Marine or Navy. The government of Japan started negotiation with U.S. to relocate Futenma Air Base, and they agreed on building alternative facility in Henoko, Nago, and relocate eight thousand personnel out of Japan. They reviewed the plan in 2012 to remove nine thousand, out of which four thousand would be going to Guam.   The relocation plan has been delayed due to underfunding which was decided by U.S. Congress with conce...

The experts’ conference for reform of Science Council of Japan (SCJ) wrapped up its report which urged the council further independent from the government of Japan in the form of corporation. While the government will continue its financial support, the conference decided to appoint a supervisor who oversees the spendings of the public fund. The council accepted the report, leaving a slight concern on intervention of the government.   Established in 1949, four years after Japan experienced devastative defeat in the World War II, SCJ has been making proposals for the society and politics in Japan as an independent special organization under the control of the prime minister. Act of the Science Council of Japan  says  that the council is established “ standing upon the assurance that science is the foundation of a cultured nation, and under the consensus of the entire scientific community, with the missions of contributing to the peaceful revitalization of Japan, the welfar...

Minister for Foreign Affairs, Takeshi Iwaya, had a meeting with Chinese Foreign Minister. Wan Yi, in Beijing on December 25 th . Iwaya offered deregulation of multiple entry visa for Chinese travelers to Japan, reflecting gradual improvement of bilateral relationship between Japan and China. Each government approaches each other to be ready for coming back of unpredictable president of the United States, Donald Trump. It was the first time for Japanese foreign minister to visit China since April 2023. Both ministers confirmed Wan’s visit to Japan at the earliest appropriate timing in 2025 to have a minister-level economic dialogue. They also agreed on having a security dialogue between the officers in charge of security policies early next year. “China and Japan are neighbors. Once China-Japan relations are improved, situation in Asia is stabilized. Once Asia is stabilized, we will play more important role in international society,” said Wan. Iwaya announced that Japan would resum...

The extraordinary session of the Diet was closed on Tuesday December 24th. The greatest achievement of the leading party in this 27-day session was new legislature for stricter regulation on political funds. Although the leading coalition lost its majority in the House of Representatives, as a result of the general election in October, they led the discussions to a conclusion through negotiation with the opposition parties. A new style of politics based on deliberation emerged.   Most bills in the Diet are submitted by the Cabinet and pass both Houses with majority votes of the leading parties. That has been an ordinary order. It was different in this extraordinary session, which was the first session after the coalition of the Liberal Democratic Party (LDP) and Komeito lost its majority in the Lower House. The leading coalition cannot expect to pass the bills without consent of any of the opposition parties.   Bills for reform of political funds were submitted by parties, not...

Mainichi Shimbun   reported  on Tuesday that Metropolitan Police Department (MPD) did not inform whistleblowers whether the police would make investigation on the case of Ohkawara Kakohki for over three months. The Whistleblowers Protection Act demands that the recipient of whistleblowing, ordinarily the police or other public offices, needs to notice about investigation within twenty days. It is suspected that the police violated the law. The president of Ohkawara Kakohki Co. Ltd., a manufacturer of spray dryer in Yokohama, was arrested in 2020 with suspect of exporting spray dryers to China, which could be developed to be available for chemical weapons. Tokyo District Public Prosecutors Office withdrew the indictment of the president, and the president sued the police demanding compensation. Tokyo District Court issued a sentence in December 2023 which ordered compensation and found the investigation of the police and public prosecutors had been illegal.   In the trial,...

The Japan Business Federation (Keidanren) decided to appoint Yoshinobu Tsutsui, the Chairman of Nippon Life Insurance Co. (Nissay), for next Chairman, expected to succeed Masakazu Tokura in next May. It is the first time for Keidanren to have chairman not from a manufactural company which has been leading Japanese economy. The choice of Tsutsui may symbolize structural change of business in Japan.   Keidanren is an organization of business in Japan, which represents Japanese economy. The organization includes 1,542 companies, 106 organization of each industry such as manufacturers or services, and 47 regional business organizations. It defines its  mission  as “to draw upon the vitality of corporations, individuals and local communities to support corporate activities which contribute to the sustainable development of the Japanese economy and improvement in the quality of life for the Japanese people.”   Established in 1946, Keidanren has mainly been upholding its ch...

It is cruel for a teacher to work in a public school in Japan. They have to work late at night and weekends with relatively low wages. A lot of teachers suffer from mental illness. Some commit crime against the students. Entering in an era of mass retirements of veteran teachers, the government of Japan decided to improve deteriorated condition for the teachers to work comfortably. According to  the survey  on situation of personnel management by Ministry of Education, Culture, Sports, Science and Technology (MEXT), the teachers in public schools, including elementary, mid-, high and special supporting, who took a long recess due to mental illness marked a record high in FY 2023. Total amount of those teachers hit 7,119, increasing by 580 from the previous year. The ratio of those unworkable teachers was also the highest, which was 0.77 percent of all 920.415 teachers in Japan.   The biggest reason for being absent from the classroom was their involvement in dealing with ...

The Liberal Democratic Party (LDP) and Komeito concluded their idea on annual tax reform for FY 2025. On the review of threshold for imposing income tax, the leading coalition determined that it should be set at 1.23 million yen of annual income of each household, raising by 200 thousand yen from current level. It did not fulfill the demand of the Democratic Party for the People (DPP). Those three parties agreed on continuing their discussion on the issue next year. In the current system of income tax, every household are eligible for 480 thousand yen of basic tax credit. Another tax credit is applied to a salary worker, which is set at 550 thousand yen. The sum of both, 1.03 million yen, is deducted from the annual income of each salary worker, when the government calculates the amount for imposing income tax. If one has annual income less than 1.03 million yen, he or she will not have to pay for income tax.   The DPP requested the leading coalition to raise the threshold from 1.0...

The Political Ethics Councils of both Houses of the Diet had hearings from the lawmakers of the Liberal Democratic Party, who had been involved in the slush fund scandal which shook the party and caused bitter defeat in the general election of the Lower House in October. The lawmakers who testified in the council mostly attributed their receipt of kickback fund to their factions or their secretaries. The greatest question that who, when and how had that system been created and maintained is still left unsolved. The lawmakers who involved in the scandal were affiliated to former Abe faction and former Nikai faction, which top leaders were already dead or retired as lawmaker. In the councils held in March, some leaders of those factions witnessed about their receipt about the kickback money from their factions, but they did not tell how that system had been introduced and maintained in those factions.   The LDP excluded some lawmakers who did not testify in March from the list of off...

Two major carmakers in Japan, Honda and Nissan, start talks for integrated management including possible merger. Growing international competition among carmakers over developing new technology and unexpected slump of Nissan accelerated their discussion for further cooperation each other. The automobile industry in Japan, which is the major driver of Japanese economy, is likely to be reformed into two groups, led by Toyota and Honda-Nissan. Car manufacturers are said to be in the period of major technological transition once in a century. The main elements of a car, gasoline, engine and driver, are getting replaced by electricity, software and automatic cruising system. Japanese carmakers are struggling with this technological revolution, even though they are still occupying the major share in car sales in the world. Honda and Nissan have been talking about their cooperation to deal with this transitional period. They agreed on promoting comprehensive partnership in developing elec...

Ministry of Economy, Trade and Industry (METI) released a draft of new Strategic Energy Plan for FY 2040. Concerning increasing demand for electricity in industries related to advanced technology, the plan aims at doubling the ratio of renewable energy to whole energy supply. News reports focused on the plan’s dependence on nuclear energy, to which the people still embrace trauma of the severe accident in 2011. The plan did not figure out any viable measures for enhancing safety of nuclear power plant, evacuation of the people in emergency or disposal of nuclear waste. The plan predicts that demand of energy in 2040 will increase by 1.2 times greater than now. Defining renewable energy and nuclear energy as the most important resources for decarbonizing energy in Japan, the plan proposes that Japan should take advantage of those two resources as much as possible. Renewable energy is supposed to occupy forty to fifty percent of energy in Japan in 2040, occupying the top position among t...

The Liberal Democratic Party (LDP) agreed with the leading opposition party, the Constitutional Democratic Party of Japan (CDPJ), on the bills for transparency of political funds. They passed the House of Representatives on December 17 th . The LDP accepted total abolition of the policy activities fund, which does not require disclosure of purposes of the spendings. CDPJ postponed conclusion on donation of companies and organizations until next March. The LDP was forced to compromise on political reform, the issue which the party lost public confidence in the last general election. The LDP has been arguing that some political fund should not be disclosed, if it is used for clandestine diplomatic activities or for such a person whose privacy needs to be protected as a sufferer from sexual abuse. The leading party submitted its own bill for revision of Political Funds Control Act which included a clause of “spendings with consideration in disclosure.”   The opposition parties refused...

The Liberal Democratic Party (LDP) decided not to specify when the government begins to increase income tax to appropriate upsurge in defense budget. Although the ruling party hoped to determine that the income tax increase for defense would be started in FY 2026, it realized that the plan might offset its policy for expanding income tax credit, which was requested by the Democratic Party for the People (DPP). Having lost majority in one of the Houses in the Diet, the LDP does not have clear vision to implement its policy of increasing defense budget. Former Prime Minister Fumio Kishida decided to secure 43 trillion yen for defense in five years between FY 2023 and FY 2027. To appropriate that budget, 14.6 trillion yen is needed to add current level of defense budget. Kishida found some resources for the budget, which included reform of expenditures, appropriating surplus in account settlement and special accumulation of funds for defense.   Tax increase is another resource for the...

Fukuoka High Court found the Civil Code and Family Registration Law unlawful in a lawsuit of three same-sex couples who demanded approval of their marriages. The decision made the first case that supported same sex marriage based on Article 13 of the Constitution of Japan, which stipulates freedom of pursuit of happiness. It seems like that the decision of courts in Japan to approve same sex marriage has been established. To the plaintiffs’ argument that denial of same sex marriage violated Article 13 of the Constitution, Fukuoka High Court clearly answered. “There is no longer a reason that denies same sex marriage as a legal institution,” said the court. It was the third decision of high courts, following Sapporo High Court in March this year and Tokyo High Court in October, which decided denial of same sex marriage unconstitutional.   Fukuoka High Court defined a marriage as “important and fundamental institution for a human.” It also regarded a right of being protected one’s ma...