The BGA Japan team, led by Managing Director Kiyo Aburaki, wrote an update for clients on the results of Japan’s February 8 general election and the implications for policy execution under Prime Minister Sanae Takaichi.

Context

· The Liberal Democratic Party (LDP), led by Prime Minister Sanae Takaichi, secured a historic victory in the February 8 general election, winning more than two-thirds of seats for the first time on its own. The party expanded from 198 to around 316 seats. This provides the LDP with the authority to override House of Councillors decisions requiring a two-thirds vote should the upper house adopt a different position.

· The election outcome reflected sustained high approval for the Takaichi cabinet and significant voter dissatisfaction with the opposition. Entering the campaign with approval ratings near 70 percent, Takaichi strengthened support by highlighting rapid implementation of income- and gasoline-tax reductions within her first three months in office.

Significance

· The results give Takaichi both a strong public mandate and a consolidated internal party base, positioning the administration for long-term stability and sustained policy execution. The large cohort of LDP lawmakers elected during the “Takaichi wave” reinforces her standing within the party. With no national elections scheduled until 2028, the Japanese political environment now resembles earlier periods marked by durable leadership and extended policy continuity.

· The administration is shifting toward accelerated policy implementation under its theme of strengthening innovation, economic security and national resilience. Takaichi has emphasized technological advancement, expanded investment and enhanced economic security. With stability secured, the government is expected to move decisively from policy

development to execution across areas including fiscal policy, national security and intelligence capabilities — priorities framed as necessary for Japan to keep pace with global benchmarks.

Implications

· Companies can expect the administration’s focus on execution to create opportunities in sectors aligned with government priorities. Businesses that closely follow policy direction, particularly in economic security, critical minerals, semiconductors, technology and defense-related areas, will be best positioned to align with government initiatives and benefit from policy-driven market developments.

· Businesses should watch coalition dynamics and upcoming diplomatic milestones that may shape the operating environment. Takaichi intends to maintain the coalition with the Japan Innovation Party (Ishin) and may deepen policy-level cooperation with the Democratic Party for the People (DPP). The anticipated March 19 U.S.-Japan summit is expected to address Japan’s US$550 billion investment commitment to the United States, defense capability enhancement and expanded cooperation on supply chains for critical minerals and semiconductors.

We will continue to keep you updated on developments in Japan as they occur. If you have any comments or questions, please contact BGA Japan Managing Director Kiyo Aburaki at kaburaki@bowergroupasia.com.

Best regards,

BGA Japan Team

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Managing Director

Kiyo understands the Japanese business community inside and out from his three decades working for Japan’s most powerful business organization, Keidanren. He covers international trade and investment, defense and aerospace, information technology, entrepreneurship, deregulation and data privacy policy. He also played a leading role in developing and implementing political strategies for the private sector. Kiyo has led Keidanren’s strategic international initiatives since 2013, and most recently headed up the federation’s international engagement. He worked closely with former Prime Minister Yasuo Fukuda to establish Japan’s Track 1.5 dialogues with the United States and China. The dialogues produced important results by strengthening ... Read More