Japan adopted daylight saving time in 1948 under US occupation after defeat in World War II but scrapped it four years later amid concerns it was encouraging longer work hours.
The idea has won favour from some in business and politics as a way to allow the famously hard-working Japanese to enjoy longer summer evenings with their families.
But critics say extending daylight hours risks people staying in the office longer, hindering official efforts to clamp down on overtime.
"However, the measure would have a significant impact on the everyday lives of the Japanese people and we only have two years before the event," Suga warned.
He said officials were drafting plans to lessen the impact of the hot weather, including early starting times for competitions and laying special pavement to reduce road surface temperature.
"We are already taking comprehensive and thorough measures," he said.
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