Japanese companies back Kishida's plan for big fiscal stimulus: Reuters poll

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TOKYO : Japanese firms overwhelmingly want the government to draw up an extra budget of US$90 billion or more to ease the pain caused by COVID-19, a Reuters poll showed, indicating support for new Prime Minister Fumio Kishida's additional stimulus plans.The monthly Corporate Survey results come as Kishida

TOKYO : Japanese firms overwhelmingly want the government to draw up an extra budget of US$90 billion or more to ease the pain caused by COVID-19, a Reuters poll showed, indicating support for new Prime Minister Fumio Kishida's additional stimulus plans.

"All we need is proactive fiscal spending that will blow away negative impacts of the pandemic," a manager of a retailer wrote in the survey on condition of anonymity. Some retailers and face-to-face service-sector firms were among the hardest hit by the pandemic. The Corporate Survey showed 87per cent of firms urged a large extra budget to fund the stimulus, with 40per cent demanding an outlay of 10 trillion-20 trillion yen and 23per cent calling for 20 trillion-30 trillion yen or even more.

Companies also called for measures to strengthen supply chains for chip making and promote factory automation and use of artificial intelligence to encourage Japanese manufacturers to shift production back home.

 

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