The Japanese Cabinet has approved a record 8.7 trillion yen ($55 billion) defense budget for 2025, signaling its commitment to enhancing national security amid mounting threats from neighboring countries like China, North Korea, and Russia. This monumental budget is part of Japan's ambitious five-year military buildup initiated under the national security strategy adopted in 2022.
This budget approval marks the third consecutive year of increased defense spending and is part of a larger national budget bill exceeding 115 trillion yen ($730 billion) which also requires parliamentary approval by March to take effect. The strategic intent lies primarily in developing Japan's strike-back capability, including long-range cruise missiles and the deployment of U.S.-made Tomahawk missiles.
Specifically, the budget allocates approximately 940 billion yen for what is termed the "standoff" defense system, which encompasses long-range missiles and satellite networks, aimed at bolstering its military capabilities. This substantial investment shows Japan’s shift to more proactive defense measures, reflecting rising tensions across the region.
A significant part of the defense budget focuses on Japan’s burgeoning missile defense initiatives. An estimated 533 billion yen is earmarked for the procurement of interceptors and advanced mobile reconnaissance radar systems, which are planned for installation on Okinawa, where more than half of the U.S. troop presence is concentrated. This is particularly significant as Japan looks to reinforce its defenses against potential missile threats.
Under the revised military strategy, Japan envisions eventually doubling its annual military outlays to around 10 trillion yen, positioning itself as the third largest military spender globally, behind only the United States and China. The Prime Minister Shigeru Ishiba’s government is equally focused on boosting international defense collaborations, particularly with allies like Australia.
Japan is gearing up to construct three new multi-purpose compact destroyers (FFM), each weighing 4,800 tons. These vessels are equipped with advanced long-range missiles and come with significantly reduced crew requirements thanks to automation. The destroyers, built by Mitsubishi Heavy Industries, are among the prime candidates as Australia evaluates options for its future frigate designs.
Japan’s defense strategy extends to technology development as well. Alongside increasing traditional military capabilities, the budget designates 108.7 billion yen for the joint development of next-generation fighter jets with Britain and Italy, set for deployment by 2035. Recognizing the demographic challenges of its shrinking population, Japan highlights its focus on leveraging unmanned weapons and artificial intelligence to maintain operational readiness efficiently.
Defence Minister Gen Nakatani has emphasized the importance of reinforcing Japan's domestic defense sector by seeking collaborative ventures and foreign sales. This commitment extends to immediate efforts such as securing the Australian frigate deal, particularly after missing out on the recent submarine contract.
The government is also taking substantial steps to improve conditions for the Self Defense Force personnel to attract recruits, investing significantly to improve salaries and support career development. This is viewed as equally important as enhancing technological prowess to sustain and grow Japan’s military strength.
Overall, Japan’s strategic shift toward increased military expenditure and modernization reflects the changing dynamics of security within the Asia-Pacific region. With growing global uncertainties, Japan appears committed to positioning itself as a more formidable military presence. The key now lies with parliamentary deliberation and the upcoming spring session to finalize these groundbreaking plans.
