The small-scale reshuffle comes as Takaichi navigates rising inflation and a weak yen while pursuing a consumption tax cut on food starting next year.
While Takaichi’s tax cut pledge is popular among voters, economists have criticised the plan, warning that she has failed to identify around five trillion yen (US$32 billion) needed annually to fund it.
Takaichi’s policy of expansive government spending has also rattled the markets, pushing Japan’s benchmark bond yield to around 3.0 per cent, its highest level in three decades.
On defence, Koizumi remains tasked with updating Japan’s foundational national defence strategy documents alongside implementing a push to expand defence spending.
“Revising our strategy is something that has a major impact on Japan’s security and on the entire region,” Koizumi told reporters after he was reappointed.
He said the defence ministry “must marshal all our resources and move forward with a greater speed” with the review with “a strong sense of urgency”.
Takaichi also assigned the post of minister in charge of regulatory reform to Hiroshi Nakatsuka, 70, a member of the LDP’s coalition partner Japan Innovation Party.
The JIP formed a ruling alliance with Takaichi’s conservative Liberal Democratic Party in October, but until now had chosen not to join her Cabinet.
The premier will hold a press conference later in the day after the reshuffled Takaichi Cabinet is formally launched following an attestation ceremony at the Imperial Palace.
