2025.11.21
Japan's First Female Prime Minister: The Takaichi Administration and New Investment Opportunities
Japan’s First Female Prime Minister
In October 2025, Sanae Takaichi was elected Prime Minister of Japan, marking the nation’s first-ever female head of government. This is a historic milestone for gender equality and represents a symbolic turning point for Japan in the eyes of the international community.
According to the World Economic Forum’s Global Gender Gap Report 2025, Japan ranked 118th out of 148 countries, remaining near the bottom globally. The country’s “political empowerment” score stood at just 8.5%, heavily weighed down by the lack of women in leadership positions—an area that Takaichi’s appointment will help improve. The IMF estimates (1) that closing gender gaps could raise GDP by an average of 35% in countries with significant inequality, highlighting that gender parity is not only a social imperative but also a key driver of long-term economic growth.
Policy Speech
In her inaugural policy speech, Prime Minister Takaichi pledged to “make Japan strong and prosperous once again, and restore a diplomacy that makes Japan bloom at the center of the world.” She outlined a comprehensive national strategy that balances economic growth and national security.
Her economic and fiscal policy is based on the principle of “fiscal policy exists for the economy.” She aims to create a virtuous cycle of income, consumption, and corporate profits through active fiscal spending. Immediate support measures for households—such as the abolition of the provisional gasoline and diesel taxes—are intended to both ease inflationary pressures and restore purchasing power.
Takaichi’s approach seeks to move Japan away from the deflation-era model of “austerity under equilibrium” toward a growth-driven fiscal framework supported by a moderate inflation environment. If this shift succeeds in changing public sentiment toward a more growth-oriented mindset, it could pave the way for stronger economic momentum.
The government has identified several strategic industries for investment and policy support, including AI and semiconductors, shipbuilding, quantum technology, biotechnology, aerospace, and cybersecurity, aiming to build new industrial foundations through public–private partnerships. Prime Minister Takaichi has also long expressed concern over Japan’s low energy and food self-sufficiency. In her address, she highlighted specific initiatives such as perovskite solar cells, nuclear fusion, plant factories, and land-based aquaculture, signaling a strong commitment to improving Japan’s self-reliance.
New Coalition Government
Just before Takaichi’s appointment, the Liberal Democratic Party (LDP) formed a new coalition with Nippon Ishin no Kai (Japan Innovation Party), which advocates for the “Dual Capital Concept.” This initiative aims to develop an alternative administrative hub capable of backing up Tokyo’s capital functions during emergencies such as natural disasters. Should discussions progress, Osaka—the leading candidate for this secondary capital—will likely attract renewed attention.
Historically Japan’s commercial and cultural center, Osaka hosts a concentration of companies across transportation, construction, real estate, tourism, and retail, and the advancement of the dual-capital plan could generate new investment opportunities across these sectors. Furthermore, decentralizing functions from Tokyo would help diversify disaster risks, potentially reducing Japan’s overall investment risk profile.
In August, Nippon Ishin no Kai underwent a leadership reshuffle, appointing Fumitake Fujita (44) as Co-Representative alongside Hirofumi Yoshimura (50), who became party leader in December last year. Both represent a younger generation of political leadership in Japan, expected to enhance decision-making speed within the party. Given the strong policy alignment between Takaichi’s administration and Ishin, the coalition is expected to accelerate policy implementation.
Conclusion
The political transition has sparked a wave of change across Japan, giving rise to early signs of new industrial growth. Against this backdrop, we will continue to explore impact-oriented investment opportunities, particularly in the sectors highlighted above, while also keeping an eye on emerging industries that contribute to solving Japan’s societal challenges.
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