Japan’s healthcare market projects stability amidst new leadership

Shigeru Ishiba was elected as president of the ruling LDP, succeeding Fumio Kishida on 27 September.

Japan has elected Shigeru Ishiba as the new Prime Minister (PM), a move expected to support stability in the healthcare market and promote steady growth in health expenditure from 2023 to 2028, according to a BMI report.

Ishiba was elected as president of the ruling Liberal Democratic Party (LDP), succeeding Fumio Kishida, and called for an early general election scheduled for 27 October, ahead of the October 2025 deadline.

“With the LDP likely to maintain its majority, Japan’s healthcare market would benefit from continued political and policy stability,” the report said.

Moreover, the new PM is expected to support the acceleration of Japan’s digital health technology adoption amidst key challenges such as an ageing and declining population, as well as rising healthcare costs.

“This will support the integration of digital health solutions, such as telemedicine, electronic health records, and AI-driven diagnostics,” it added.

Partnerships are also anticipated to drive the integration of digital health solutions. A notable example is the joint venture between Japanese multinational SoftBank and US-based healthcare company Tempus AI, focused on developing AI-driven personalised treatments and clinical trial recommendations.