Sanae Takaichi is expected to become the next Prime Minister of Japan, becoming the first female to occupy the position after she was elected as the new leader of the Liberal Democratic Party (LDP) on October 4, 2025. Parliamentary confirmation is expected in mid-October.
Following the resignation of Prime Minister Shigeru Ishiba, Takaichi won the LDP leadership election by defeating Shinjiro Koizumi in a runoff vote. The leader of the LDP, which is the largest party in the more powerful lower house of Japan’s parliament (the Diet), is virtually guaranteed the position of prime minister.
What Sanae Takaichi’s Leadership Could Mean
Takaichi, who has held senior government roles including minister for economic security and internal affairs, is known for her support of higher government spending and lower borrowing costs.
She is also a long-time admirer of former UK prime minister Margaret Thatcher and her free market approach to economics, which could bode well for investors. Japanese stocks have started rising, especially in real estate, technology and heavy industry companies, since her appointment was announced.
While her policy proposals to stimulate the economy through increased government spending could benefit businesses, they may further weaken the yen as Japan’s debt rises.
Anti – Immigration Stance
Sanae Takaichi has opposed large-scale immigration as a solution to Japan’s labour shortages. Instead, she argues Japan should prioritise automation, robotics, and AI to deal with demographic decline rather than increasing reliance on foreign labour.
She stresses maintaining Japan’s homogeneous cultural identity, warning against immigration policies that could “dilute” traditional Japanese society. Her Ascension would most likely lead to the tightening of the criteria for residency, naturalization, and permanent settlement in Japan.
