Japan has unveiled a record-breaking 8.7 trillion yen ($55 billion) defense budget for 2025 as part of its ambitious five-year military buildup under the national security strategy adopted in 2022. The plan emphasizes the acquisition of long-range strike capabilities, including US-made Tomahawk missiles, to address growing regional challenges from China, North Korea, and Russia.
The defense spending is part of Japan's overall 115 trillion yen ($730 billion) national budget for 2025, which awaits parliamentary approval by March. The new budget underscores Japan's commitment to enhancing its defensive and offensive capabilities while bolstering its domestic defense industry.
Strengthening Strike Capabilities
Key allocations in the budget include 940 billion yen ($6 billion) for a "standoff" defense system. This initiative incorporates long-range missiles, satellite constellations, and other advanced arsenals. The budget also designates 1.8 billion yen ($11.4 million) to equip Aegis-class destroyers with Tomahawk missile launch systems. The deployment of these missiles is expected by late fiscal 2025.
Reinforcing Missile Defense Systems
In response to potential threats, Japan has allocated 533 billion yen ($3.37 billion) to strengthen its missile defense capabilities. This includes the procurement of interceptors and a mobile reconnaissance radar for Okinawa, home to over half of the 50,000 US troops stationed in Japan.
Expanding Domestic Warship Capabilities
To modernize its fleet, Japan plans to build three advanced 4,800-ton multi-purpose destroyers for 314.8 billion yen ($2 billion). These upgraded Mogami-class destroyers, designed with labor-saving technologies, require fewer crew members and are equipped with enhanced stealth and anti-submarine warfare systems. The design has also been proposed for Australia's SEA 3000 frigate project, where it competes with Germany’s MEKO A-200 platform.
Japan views this opportunity as a means to deepen defense ties with Australia and strengthen its defense industry. Defense Minister Gen Nakatani highlighted that cooperation on the project would bolster Japan's shipbuilding capabilities. The country is keen to secure the deal, having lost a similar bid for an Australian submarine project to France in 2016.
Advancing Next-Generation Technology
Japan’s focus on unmanned systems and artificial intelligence reflects its efforts to address a shrinking population and declining number of military personnel. The budget allocates 111 billion yen ($703 million) for AI-driven and autonomous weapon systems. Additionally, 108.7 billion yen ($690 million) has been set aside for the development of a next-generation fighter jet in partnership with Britain and Italy, with deployment targeted for 2035.
Enhancing Workforce and Morale
Recognizing the challenges of recruitment, the government has committed to improving salaries, working conditions, and career opportunities for the Self-Defense Forces. This initiative aims to attract new talent and strengthen the country’s "human base" for defense.
Japan’s defense strategy reflects a significant shift in its post-war military posture, emphasizing proactive measures to counter emerging regional threats while fostering closer alliances, particularly with the United States and Australia.
