Japanese PM calls for an increase in earning power, wages

Japanese Prime Minister Kishida Fumio has ordered officials to come up with specific measures to achieve sustained wage hikes and to boost the nation's earning power by taking advantage of the weak yen.

At a meeting of the government's Council on Economic and Fiscal Policy on Wednesday, Kishida instructed his ministers to study concrete measures for a new economic package to be drawn up in October.

He said it is necessary to control the situation in which an outflow of national income to foreign countries is continuing due to rising import prices.

Kishida stressed the importance of encouraging Japanese firms to move production back home and boosting their supply capacity.

He also said efforts are needed to expand exports of agricultural and fishery products and revive inbound tourism.

The prime minister also said sustained wage hikes to keep up with inflation is important. He said the government will work to raise income by investing in people and promoting labor mobility to growth industries.

A council member from the private sector proposed that the government should draw up a new economic and fiscal roadmap.

The member said the government needs to aim for sustainable and stable economic growth in about five years, while sticking to its goal to restore fiscal health.