Shigeru Ishiba, leader of Japan's ruling Liberal Democratic Party, was elected prime minister by both the lower and upper houses on Tuesday amid low public confidence in the political system of Japan.

Ishiba is expected to face a tough start to his tenure as he works to regain voters' trust in the slush fund scandal-plagued LDP. He aims to form a stable government while healing divisions within the party. To this end, he has appointed two influential former prime ministers, Taro Aso and Yoshihide Suga, as supreme adviser and vice-president of the LDP, respectively.

In the newly formed cabinet, former defense minister Takeshi Iwaya was appointed minister of foreign affairs, and Gen Nakatani, another former defense chief, took the post of minister of defense.

Several of Ishiba's rivals from the LDP leadership race also secured key cabinet or party leadership positions. Yoshimasa Hayashi retained his position as chief cabinet secretary.

Additionally, former chief cabinet secretary Katsunobu Kato was named minister of finance, and former environment minister Shinjiro Koizumi was put in charge of the LDP's election task force.

At his first news conference after taking office on Tuesday, Ishiba announced that he would dissolve the House of Representatives on Oct 9, with the general election campaign set to begin on Oct 15 and voting scheduled for Oct 27.

In the upcoming general election, key issues will include measures to combat inflation and the expansion of social security systems, according to Kazuyuki Hamada, an expert in international political economy and former parliamentary vice-minister for foreign affairs.

Ishiba has championed regional revitalization, aiming to make local economic stimulation the cornerstone of his growth strategy. Strengthening primary industries in rural areas will be a focal point of his economic policy, Hamada added.

Currently, many small and medium-sized businesses in Japan are facing difficulties. As full-time employment declines and part-time work becomes the norm, marriage and child-rearing have become more challenging, further contributing to population decline and stagnation in the domestic market.

Revitalizing economy

When it comes to the economy, raising wages, which have been stagnant for over a decade, and boosting domestic demand are the most pressing concerns for the public, said Kumiko Haba, professor emeritus at Aoyama Gakuin University. "We need to change the current situation where large corporations are profiting while the public grows poorer," she said.

Ishiba has proposed addressing these challenges by raising the national average minimum wage to 1,500 yen ($10.38) per hour and prioritizing support for small businesses and ordinary citizens. Haba expressed hope that the new leader will keep his promises.

Politically, although Ishiba may be less extreme than the far-right-leaning Sanae Takaichi, he remains fundamentally part of the rightwing, pro-military faction within the LDP, having previously served as minister of defense, Haba noted.

Ishiba's China policy aims to strike a balance between strengthening deterrence through bolstered defense capabilities and deepening economic and trade ties through mutual dependence. However, his push for the creation of an "Asian NATO," which aligns with US policy, is unlikely to be well-received by Asian nations with strong economic links to China, according to Hamada. Hamada stressed that reducing Japan's current overreliance on the United States should be a priority for the new prime minister.

Noriyuki Kawamura, emeritus professor at Nagoya University of Foreign Studies, said: "It is evident that US global influence and overall power are on the decline, and we are witnessing a once-in-a-century paradigm shift from Pax Americana to Pax Asiana. In this context, it is crucial for Japan to establish an independent and peaceful foreign policy."