Japan to Help Smaller Firms Pass on Higher Costs

Economy Politics

Tokyo, Dec. 27 (Jiji Press)--The Japanese government announced on Monday a policy package to ensure that smaller companies will be able smoothly reflect labor costs and material costs in their transaction prices.

The policy package was released at a meeting of related ministers, representatives from three major business organizations and others.

By beefing up surveillance against companies placing orders at unfairly low prices and other measures, the government aims to promote an environment that allows smaller businesses to raise their wages, to achieve a virtuous cycle of economic growth and wealth redistribution, a key goal upheld by Japanese Prime Minister Fumio Kishida.

Related government ministries and agencies will make all-out efforts for the measures every year in the intensive January to March period before the "shunto" spring wage talks.

The government asked business associations and industry groups to give consideration to reasonable profits for subcontractors and accept talks on raising transaction prices.

[Copyright The Jiji Press, Ltd.]

Jiji Press