Far East: Japan’s Ishiba To Combat Gift Voucher Scandal With His Political Career At Stake

japanese prime minister shigeru ishiba. Tomohiro Ohsumi via Getty Images

Giving welcome gifts to your new colleagues sounds like a kind gesture, something a typical person would do. In March 2025, Prime Minister Shigeru Ishiba did exactly that - handing out gift vouchers worth ¥100,000 (approximately $670) to each of the 15 first-time lawmakers from his ruling Liberal Democratic Party (LDP). For him, however, the move wasn’t met with sympathy but with descent. The move was widely criticized as a corruption scandal, something Japan does not take lightly when it comes to governmental ethics. In the wake of the current administration’s turbulent disaster of approval ratings, this latest scandal is now one of many unresolved political mishaps that have led many Japanese to believe that they should no longer trust the government.

The Downward Trend

Ishiba's Approval and Disapproval Ratings

From Asashi Shimbun Polls

With Ishiba already losing grip on the government and his coalition in the parliament, this latest scandal has hit his approval rating hard. This fact, however, does not mean that his approval rating was any better prior to the gift voucher scandal. His approval ratings have already been on a downward curve immediately after he was elected to the office back in October 2024, due to his poor handling of the economy. Ever since Ishiba took office, Japan has seen prices skyrocket with inflation recorded in February of 2025 on the nationwide Consumer Price Index or CPI at 3.7% year-on-year increase. Though this is a slight decrease from January of the same year, it is higher than last year’s with the CPI in February 2024 measured at a 2.8% increase. According to a survey conducted by the Cabinet Office, over 66.1% of respondents are concerned that “inflation measures” should be the top priority for the government’s policy priorities, highlighting the concerns of rising household goods and food prices.

After the Bank of Japan’s implementation of rate hikes in January 2025, the approval rating for the Prime Minister seemed to become stagnant and stable again as the situation slightly improved and the economy started to show signs of recovery. Being stagnant in approval rating was the best outcome for Ishiba since his party’s stunning defeat in the election last October. However, as we can now see, that period of stagnancy was short-lived, as he was soon embroiled in another controversy—the Gift Voucher Scandal. This scandal hits hard as his party is seeking to combat financial corruption allegations which have plagued his party for years and were one of the causes of the latest election loss.

Gift Voucher-Gate?

The alleged gift card was handed over to the newly appointed, 15 first-time lawmakers from the Prime Minister’s own Liberal Democratic Party or the LDP. According to reports by the Japanese media, many of those lawmakers insisted on returning the gift card to the Prime Minister who responded that “there was no legal problem with spending from pocket money.” This statement has drawn stark criticism from the opposition party and the general public citing that it presents many ethical concerns. 

A post made on X (formerly Twitter) by the House of Representative member, Koki Ozora from Tokyo’s 15th District. In the post, he mentions that he have indeed received such gift and has returned it to the Prime Minister’s office. The post reads “It was reported that the Prime Minister's office had distributed gift certificates to 15 first-time elected Diet members. I checked the contents the morning after the social gathering, and immediately went to Ishiba's office to return the gifts.”

This scandal also couldn’t come at a better time as Japan is set to have an upper house election this July, and Japan’s economy faces extreme uncertainty with the trade war imposed by tariffs from U.S. President Donald Trump. Amid mounting domestic political tensions, investors may turn away from Japan, especially as its standing in the global market continues to falter. The Prime Minister himself knows that the stakes are against him. His minority coalition is not doing well in parliament and is having trouble passing the annual budget within the given timespan. Failure to succeed on the budget could be the ultimate blow to Ishiba’s political standing and career and could hurt the Japanese economy drastically. 

“Poisoned Chalice”

Despite the harsh criticism and drawbacks, Prime Minister Ishiba has insisted that he will not step down from the leadership position. With his party set to seek a fresh public mandate this July, the prospect of the LDP losing its upper house majority is simply not on the table. Hence many analysts see that the LDP may need to freshen up their outlook and their leadership. AAccording to a statement by former Prime Minister and current opposition leader Yoshihiko Noda, “(The opposition coalition) is not going to seek a no-confidence motion. The LDP may replace its top leadership and head into the Upper House election with a fresh image, or call a snap election promising reforms—but this is not how it should be done.”

former prime minister yoshihiko noda, now the opposition leader

Many experts have regarded Noda’s comments as defensive. With the current administration in power for less than a year, passing a no-confidence vote under Article 69 of the Constitution would compel either the cabinet or the prime minister to resign, or require the dissolution of the Lower House within 10 days. This will prove to be challenging both for the ruling and the opposition coalition as they will have to quickly recruit new candidates, risking the opposition’s seats in the Diet. For the opposition, having Ishiba replaced by another member of his own party sounds like a better choice as the new leader may make things worse for the already poor political position the LDP is in.

It is not entirely negative, however. A new leader with fresh energy may drive up reforms, making the situation tougher for the opposition in the upcoming election. Though this path seems most logical as of now, there has yet to be a clear successor to Ishiba. “No one is willing to step forward because the leadership role is as good as a poisoned chalice now, given the party’s weak position.” Said political science professor Ko Maeda of the University of North Texas.

ishiba at a press conference on april 1st, as he speaks about the upcoming expo 25 in osaka, japan. he made no statement regarding this scandal in the press conference. Nicolas Datiche, Pool Photo via AP.

As the election draws nearer by the day, the compass of Japan’s political landscape now lies in Ishiba's hands. To resign and appoint a new leader or to push through, every decision he makes from now will echo throughout the world as Japan seeks to improve its political standpoint, both domestically and internationally.

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