Japanese Prime Minister Fumio Kishida has said he will step down as leader of the ruling Liberal Democratic party in September, ending a three-year premiership and months of speculation over his ability to survive following a political funding scandal and rising living costs.
At a press conference on Wednesday, Kishida said he would not seek re-election at next month’s internal contest for the LDP’s presidency, which in effect grants the holder the position of Japanese prime minister.
“The first and clearest step to show that the LDP is changing is for me to step down,” said Kishida. “I will not be running in the upcoming presidential election.”
The decision follows months of low approval ratings and a political funding scandal that forced Kishida to sack four cabinet ministers last year.
Kishida, 67, came to power in October 2021 with a promise of establishing a “New Capitalism”. But approval ratings for his administration fell well below the 30 per cent level that has felled previous Japanese leaders.
The yen strengthened 0.3 per cent to ¥146.43 per dollar while equities were mixed. The country’s benchmark Topix index edged up 0.5 per cent while the more exporter-oriented Nikkei 225 shed 0.2 per cent.
Kishida’s successor will be Japan’s third prime minister since the late Shinzo Abe, who stepped down in 2020 and was the country’s longest-serving prime minister.
By pulling out of the LDP leadership race, Kishida opens the way for multiple candidates to compete for the position.
Speculation among political analysts has already centred on former trade minister Toshimitsu Motegi and former foreign minister Taro Kono. Kishida told reporters that “it is important to show a new face of the LDP in this leadership race”.
The LDP has not announced when the election will be held, but people close to the ruling party have said it is likely to be around September 20.
Additional reporting by William Sandlund in Hong Kong