Former Prime Minister Kishida Fumio (岸田文雄) said yen intervention is merely a way to buy time and proposed a ¥370 trillion growth strategy as a genuine long-term solution. The plan includes public-private cooperation across 17 fields and calls for attracting private investment and overseas funds to finance it.
Former Prime Minister Kishida Fumio (岸田文雄) said in an interview on Wednesday that foreign-exchange intervention would have limited long-term effects unless it changed the fundamentals. Against the backdrop of intervention by Japan and the US to curb the yen’s sharp decline, he proposed a comprehensive ¥370 trillion growth strategy backed by substantial funding.
The growth strategy is described as a 14-year blueprint covering 17 strategic industries. When asked how to fund the enormous costs, Kishida Fumio (岸田文雄) stressed that Japan should attract private capital and overseas investment rather than rely solely on government funding.
Specifically, the plan would promote public-private cooperation in areas including semiconductors and AI, with the construction of TSMC and Micron plants cited as examples. The Ministry of Economy, Trade and Industry has significantly increased its budget for advanced semiconductor and AI support, and explained that it is developing a policy framework to encourage investment of household assets.
Kishida Fumio (岸田文雄) said Japan should build on the results of coordinated intervention by Japan and the US through the steady implementation of fiscal and monetary policy, and stressed the importance of sharing a long-term vision and securing market understanding.