Khaldon Azhari

TOKYO: Japan's economic leaders expressed support for Japanese Prime Minister Shinzo Abe’s $990 billion stimulus package on Tuesday evening along with his declaration of a state of emergency for part of the country including Tokyo.

While the package is equivalent to approximately 20% of Japan’s economic output, Abe hinted that there may be more to come, noting the importance of preparing a second and third package for the Japanese economy ‘that is facing its worst crisis since the end of the World War II’.

“No matter how huge the economic package is, its affect will depend on how long the outbreak continues,” he said. “It will be ideal to end the battle within a short period of time. However, we must be prepared for a long-lasting battle.”

The chairman of the Japan Chamber of Commerce and Industry, Akio Mimura, expressed hope that small and medium-sized companies would benefit from the measure so that they can stay in business and maintain their employees.

Kengo Sakurada, chairman of the Japan Association of Corporate Executives, said that the government should respond to the greater need for working remotely. He also said that steps should be taken after the outbreak is brought under control to help with economic recovery, including reviving tourism.

Hiroaki Nakanishi, chairman of the Japan Business Federation, or Keidanren, said: "The government has made a big decision, and we take it seriously."

He stressed his organization "will fully support and comply with requests and instructions from the central and local governments in order to end this crisis."

Meanwhile, a senior economist with SMBC Nikko Securities, Koya Miyamae, praised the timing of the economic package and said its size is about right considering Japan’s GDP. He noted that the Japanese government has limited options to lessen the impact of the outbreak, including mainly cash handouts and low-interest loans.

Miyamae also pointed out, however, that the situation will not improve until the outbreak is over and that until then, businesses will need to keep borrowing and the state will need to keep spending.