Former Internal Affairs Minister Yoshimasa Hayashi is drawing increased attention within Japan’s ruling Liberal Democratic Party (LDP) as a potential contender for the party’s leadership following his removal from the Cabinet in a reshuffle announced on Thursday.

Hayashi, one of four candidates who challenged Prime Minister Sanae Takaichi in last year’s LDP leadership election, was the only challenger not retained in either a Cabinet or senior party position under the latest changes. Shortly after the reshuffle, he announced his intention to continue his nationwide regional visits, signaling plans to strengthen grassroots support ahead of next year’s leadership contest.

At a Tokyo lecture on Friday, Hayashi declined to confirm whether he intended to run for party leader again, stating, “I don’t know yet what I’ll do that far down the road.” He emphasized his commitment to completing visits to all 47 prefectures, noting he had toured 26 while serving as minister and planned to visit the remaining 21 to engage directly with local communities.

Prime Minister Takaichi's recent Cabinet reshuffle appeared aimed at consolidating support for her reelection bid next autumn. She retained key rivals from the previous leadership race, including Defense Minister Shinjiro Koizumi, LDP Policy Research Council Chairman Takayuki Kobayashi, and Foreign Minister Toshimitsu Motegi. However, the decision regarding Hayashi’s role took longer to settle. Some party members suggested that even if Hayashi had remained in the Cabinet, he might still pursue a leadership challenge, reflecting concerns that his ambitions remain undeterred.

It remains unclear whether Hayashi was offered a position and declined or was not offered one at all. When questioned about his relationship with Takaichi and his preferences for Cabinet roles, Hayashi refrained from commenting, saying, “I won’t comment on personnel matters.”

Observers say Hayashi’s Cabinet exit could afford him greater freedom to build alliances ahead of the leadership election. A former Cabinet minister close to Hayashi noted that he is expected to intensify efforts to rally support by traveling nationwide.

In terms of policy, Hayashi presents a contrast to Takaichi. While the prime minister has adopted a hardline stance toward China, Hayashi previously led a group of lawmakers advocating for improved Japan-China relations. He has also expressed caution regarding Takaichi’s plan to reduce the consumption tax on food, calling on the government to clarify funding sources promptly despite collective Cabinet responsibility for the proposal.

Hayashi is known to maintain close ties with former Prime Minister Shigeru Ishiba, who has distanced himself from Takaichi, and has engaged in repeated meetings with senior LDP figures including former Secretary-General Hiroshi Moriyama and former Internal Affairs Minister Ryota Takeda.

Within the party, there is speculation that Hayashi could emerge as the focal point for factions opposed to Takaichi’s leadership. An aide to the prime minister acknowledged the challenge ahead, stating that if the race narrows to a direct contest, “the anti-Takaichi votes will go to Hayashi,” underscoring the potential significance of his role in the upcoming leadership battle.