2026 New Year Party Jointly Hosted by the Three Economic Associations

On January 6, 2026, Prime Minister Takaichi attended the 2026 New Year Party jointly hosted by the three economic associations held in Tokyo.

The Prime Minister said in her address:

“Ladies and gentlemen, Happy New Year. This year marks 100 years since the start of the Showa era. I am often described as a “Showa woman,” and the Showa era in Japan was a time marked by a war, the end of the war, postwar reconstruction, and a period of high economic growth. It was a tumultuous period. Among the Diet members, I believe I may be among the last generation raised by parents who were born in the first decade of the Showa era. I grew up hearing from them about just how difficult life was during the wartime years and the period of postwar turmoil. I would like to once again express my heartfelt appreciation for the many people who went before me and worked with grit and determination to build Japan into what it is today.

And I believe that all of us living today—you and I alike—have a role to play. This applies equally to the babies being born today and to the young people who will gain the right to vote at the age of 18 this year. They are the very people who are highly likely to live well into the 22nd century. That is why I believe we must build our country now—because if we do not, it will be too late—so that even in the 22nd century, Japanese people can say with pride, ‘I am Japanese. I’m from Japan,’ and so that the Japanese economy continues to move forward with strength, with its wealth distributed among many. This is not only for those of us living today but also a responsibility we bear toward those who will live in the 22nd century.

I ran for President of the Liberal Democratic Party with a pledge to turn people’s unease and apprehension over their current lives and the future into hope. And as you all know, as mentioned in the earlier remarks, we have been pushing ahead with policies under the banner of responsible and proactive public finances. We will pursue bold and strategic investments, strengthen Japan’s supply structure, increase employment and incomes, and improve consumer confidence. This will boost business profits, which will in turn lead to increases in salaries and enable investments in research and development and capital investments. This is an ideal economic cycle, with the tax revenue going up without tax hikes. Shaping Japan along these lines is my goal and the reason I have begun taking action now.

In that context, I have emphasized strategic investments that enhance resilience against potential crises. As you are aware, we are facing numerous risks common to the entire world. These are shared risks around the globe. Even countries whose food self-sufficiency rates exceed 100 percent cannot be certain of what may happen in the face of accelerating climate change. That is why those countries, too, must raise their food self-sufficiency. Even countries with energy self-sufficiency rates above 100 percent are now facing sharply rising electricity demand due to generative AI (artificial intelligence) and data centers. That means energy self-sufficiency must be strengthened further. We cannot rely on specific countries for resources, either. We all have common concerns, such as how we can raise resource and energy self-sufficiency rates and diversify procurement sources. Medical care, healthcare, and national security are also important. So is cybersecurity. We had earthquakes again this morning. As many people feel, strengthening Japan’s national resilience—making every corner of the country resilient—is also vital to protecting lives. We must urgently start working on these issues, make public-private efforts to attract investments, and develop products, services, and infrastructure that can minimize risks ahead of the rest of the world. At the same time, Japan will continue to invest in the growth fields mentioned earlier.

Japan is still home to many technologies that have yet to be fully implemented in society. It would be a great waste to leave them untapped. That is why I am determined to press every available switch for growth and set our growth strategy in motion now. In the supplementary budget that was enacted recently, we made an initial allocation toward this effort. Some have said, “Why not include it in the main budget?” or “Why not wait for the initial budget?” But I assumed office on October 21. I could not afford to wait another six months. I wanted to get things moving as quickly as possible. That is why I made these initial allocations, which amount to approximately 6.4 trillion yen. These are funds to advance our growth strategy.

We will also implement robust measures in fiscal 2026. In our tax reform, with maximum consideration given to ensuring predictability for business operators, we have introduced bold tax incentives for promoting investment applicable to all industries, providing measures such as immediate depreciation for high value-added capital investments above a certain scale. I am confident that Japan will grow even stronger and move forward. The Takaichi Cabinet is strongly determined to increase predictability for business operators. Therefore, we will work hard to build an internationally competitive business environment by promoting multi-year budget measures, bold tax incentives for promoting investment, and enhanced research and development tax incentives.

I also sincerely ask for your support for GREEN x EXPO 2027 in Yokohama. In this regard, I have received extremely encouraging words from Mr. Tsutsui, Chairman of Keidanren (Japan Business Federation), not only regarding the dissemination of technological capabilities, but also with respect to building momentum, establishing an operating structure, promoting ticket sales, and securing sponsorships. Following the success of Expo 2025 Osaka, Kansai, Japan, I believe that this will also help promote the appeal of food and agriculture as well as Japan’s cutting-edge environmental technologies.

With regard to wage increases, the Takaichi Cabinet will not simply leave everything to business operators. We will also strive to ensure that orders, including those related to public procurement, are placed at proper prices.

Let’s work together to build a strong economy. Let’s make this a bright year. And let’s fulfill our responsibility to future generations. I ask you to stand with us and fight together. I sincerely ask for your support. Allow me to conclude my remarks by wishing everyone here today good health and happiness. Thank you very much for the opportunity to be here today.”