Business leaders expressed hope Tuesday that the measures in the fresh ¥7.2 trillion stimulus package will prop up the weak economy, but skepticism remains over its effectiveness in combating such problems as deflation and the stronger yen.
"We hope they will be effective in supporting the regional economies and (broader) economic conditions," Tadashi Okamura, chairman of the Japan Chamber of Commerce and Industry, said in a statement, citing measures to improve employment conditions and corporate financing of small and midsize firms.
Masamitsu Sakurai, chairman of the Japan Association of Corporate Executives, said the size of the package is "appropriate" from the viewpoint of ensuring fiscal discipline.
The stimulus measures include extending government programs to promote sales of energy-saving cars and household appliances, but some company officials expressed doubts about whether those steps alone will boost consumer spending.
"The impact may be limited to savings or purchases only of daily necessities," a major department store official said.
Another top official at a retail giant warned that "concerns about the future are stifling consumption," with many companies hit by the pressure of the strong yen as well as deflation.
Businesses also called for longer-term actions to revitalize the economy in addition to the speedy implementation of the stimulus measures.