Mitsuhiro Yuasa, portfolio manager of the Strategic Japan Opportunities Fund, provides his views on the election of Japan’s new prime minister Yoshihide Suga, following the resignation of Shinzo Abe.
Following on from the article on Shinzō Abe’s resignation, Yuasa comments: “Yoshihide Suga has shown he can be very practical, fighting to resolve issues as and when they arise. We expect Suga to continue pushing Japan’s digitalisation and policies aimed at increasing the current birth rate.”
“Japan will need to further develop its digital infrastructure, both within public services at the local government level, but also within private companies by introducing digital transformation solutions. Suga has demonstrated already that he is behind this transition to a more digital-savvy Japan: he lowered tele-communication costs and introduced the Number Card, which allows holders to download registry documents at convenience stores. He is also aiming to merge the Number Card and driving licenses.”
“We believe that he will pursue further regulatory reforms, and potentially some central government reforms, and that he has the capacity to achieve this, even though he does not belong to any faction in the LDP. It appears to us that the majority of LDP members are not focussed on factions or political power games at this time, as shown by the landslide victory at the LDP chairman election yesterday.”
The views and statements contained herein are those of Rheos Capital Works Inc in their capacity as Investment Adviser to the Fund as of 15/09/2020 and are based on internal research and modelling. Please click on Disclaimer Page to view full disclaimers.
Image source: Official Website of the Prime Minister of Japan and His Cabinet – https://japan.kantei.go.jp/99_suga/actions/202009/_00002.html