Japanese Prime Minister Shigeru Ishiba has pledged to take tougher measures against the misuse of political funds after he was re-elected by parliament following a major loss in the polls last month by his governing coalition.

Mr Ishiba’s Liberal Democratic Party and its junior partner Komeito together lost a majority in the 465-seat Lower House, the more powerful of Japan’s two-house parliament, in the October 27 election.

The defeat was blamed on voter outrage over financial misconduct by his party.

“We must remind ourselves of the basics that politics is for the people, as we tackle political and party reforms,” Mr Ishiba said.

He said that in response to the poor election results “we must be able to have empathy for the pain, sorrow and anger of the people”.

A special parliamentary session convened on Monday to pick a new leader in a vote required within 30 days of a general election. Mr Ishiba beat top opposition leader Yoshihiko Noda by 221 to 160 in the first run-off in 30 years.

In his second cabinet in just over a month, Mr Ishiba reappointed most of its previous members, including foreign minister Takeshi Iwaya, defence minister Gen Nakatani and chief cabinet secretary Yoshimasa Hayashi. He replaced three ministers who lost seats or were affected by the election results.

Mr Ishiba stressed the importance of pursuing the significant build-up of Japan’s defence power to deal with growing threats from China, Russia and North Korea, while co-operating with its ally the United States and other like-minded partners.

A close-up of Shigeru Ishiba
Japan’s Prime Minister Shigeru Ishiba (Kyodo News via AP)

He said he plans to attend Asia-Pacific Economic Co-operation and G20 summits later this month to further strengthen a partnership with the global south nations and the Asia-Pacific region. He said he will hold talks with US President Joe Biden, South Korean President Yoon Suk Yeol and other leaders.

His government is also reportedly arranging a possible meeting with President-elect Donald Trump on his way home.

Mr Ishiba has refused to step down and showed a willingness to co-operate with additional coalition partners to boost stability and help him pursue his party’s policies.

Mr Ishiba will struggle in the coming months to gain consent from the opposition on policies including the budget and other legislation, experts say. Mr Ishiba said he will listen to opposition parties more carefully than before.

A close-up of Yuichiro Tamaki
Head of the Democratic Party of the People Yuichiro Tamaki (Kyodo News via AP)

He wants to co-operate more closely with a rising smaller, conservative Democratic Party for the People, whose seats quadrupled to 28 under its popular leader Yuichiro Tamaki. His proposal for raising the basic tax-free income allowance and increasing take-home wages garnered support from low-income and younger voters.

Mr Tamaki only wants to co-operate with Mr Ishiba’s party on policy – not as part of a coalition – since he wants to use his leverage to increase his party’s standing ahead of the next election.

Mr Tamaki was recently stung by a magazine article exposing an extramarital affair, which he admitted to on Monday.