Prime Minister Shinzo Abe on Saturday said his government will compile Japan's "boldest ever" package of economic measures to address the impact of the new coronavirus, while also pushing for quick approval of the flu drug Avigan as a treatment for the infected.
"We are on the brink," Abe said at a news conference, referring to the possibility of an explosion of COVID-19 cases in Japan after 63 new infections were confirmed in Tokyo the same day. He also stressed Japan must ready for a "long-term battle" to keep COVID-19 from surging out of control and overwhelming health care systems as it has done in other countries and regions.
Still, he said "now is not an emergency" and called on citizens to continue taking steps such as avoiding large gatherings to limit infections.
Regarding the economy, he said his government will formulate a "strong stimulus package of unprecedented scale" to lessen the blow to businesses and individuals brought about by the coronavirus.
Abe said the aid package, including medical measures, will be far bigger than the one put in place to deal with fallout from the global financial crisis in 2008, following the collapse of U.S. investment bank Lehman Brothers.
The stimulus is expected to exceed 56 trillion yen ($518 billion), or 10% of Japan's nominal gross domestic product. Abe also said he will submit a supplementary budget to the Diet "promptly within 10 days."
The government will also begin trial procedures aimed at winning approval for the anti-flu drug Avigan as a treatment for the coronavirus, he said. Avigan was developed by Japanese company Fujifilm Holdings.
The drug has already shown signs of being effective in relieving symptoms after being administered in dozens of cases, Abe said, adding it has attracted interest from many countries. Japan "will proceed with clinical research in cooperation" with other countries and will start increasing production soon.
Abe has so far refrained from declaring a state of emergency to deal with the virus that would allow authorities to take stronger measures to combat it.
"Japan, unlike Europe and the United States, is just barely managing" to prevent infections from skyrocketing, he said.
As for other ways to boost the economy, Abe said a special measure will be established to allow for the deferral for one year of tax and social insurance premium payments to support corporations suffering from constricted cash flow. Also, interest-free and unsecured lending will be expanded to assist them, he said.
Looking further ahead, Abe said the government will also prepare policies aimed at putting the economy back on a growth track after the coronavirus crisis comes to an end.
