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Japan’s minimum wages must be raised by at least 3% in fiscal 2021, which started in April, said David Atkinson, a member of the government’s growth strategy panel.

In a recent interview, the 56-year-old Atkinson, who is known to be a key adviser to Prime Minister Yoshihide Suga, stressed the need to use wage hikes as an opportunity to urge the heads of smaller companies with low labor productivity to change current business models that rely on cheap labor.

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