Japan keeps striving hard to expedite its defense buildup to cope with rising military threats posed by three nuclear-armed neighbors, namely China, North Korea, and Russia.
On December 27, the cabinet of Japanese Prime Minister Ishiba Shigeru approved 8.7 trillion yen ($55.1 billion) in defense spending for fiscal year 2025, starting in April, amid what Tokyo calls “the most severe and complex security environment since the end of World War II.”
Including U.S. Forces realignment-related expenses allocated for mitigating impacts on local communities, the draft budget will rise by 9.4 percent, or $4.8 billion, from the current fiscal year. This marked another record figure for the 11th year in a row for Japan’s national defense budget.
The FY2025 budget plan, which is expected to be passed by the country’s bicameral legislature in the coming months, marks the third year of the new Defense Buildup Program, which outlines $273 billion in defense spending over the five-year period through FY2027.
The budget plan continues to list seven key pillars of “necessary efforts to drastically strengthen Japan’s defense capabilities.”
Those are: (1) “stand-off defense capabilities,” such as mass production of longer-range missiles; (2) “comprehensive air and missile defense capabilities” to respond to increasingly diverse and complex airborne threats, including missiles; (3) “unmanned asset defense capabilities,” such as the use of drones; (4) “cross-domain operational capabilities” in space, cyberspace, and electromagnetic domains; (5) “command and control and intelligence-related functions”; (6) “maneuvering and deployment capability” to send troops and supplies to the front line of a conflict; and (7) “sustainability and resiliency.”
As for the first pillar, the ministry secured about $5.95 billion to develop and produce a range of homegrown stand-off missiles to acquire counterstrike capabilities against enemy bases. That follows through on a decision made in December 2022 for Japan to pursue a long-range strike capability, as reflected in the new National Security Strategy.
Most notably, as the biggest highlight of the nation’s defense budget for the next fiscal year, the Defense Ministry secured $1.8 billion to build a “satellite constellation” that will use a large number of small satellites to detect and track targets as part of the development of counterstrike capabilities – formerly known as “enemy base strike capabilities.”
In addition, the Defense Ministry for the first time earmarked $106.4 million to acquire a ship-based improved variant of the Mitsubishi Heavy Industries (MHI)-developed Type 12 surface-to-ship missile (SSM) for FY2025.
Japan’s current stand-off missile capability is mainly focused on the upgraded Type 12 SSM, which is the core of Japan’s counterattack ability. Stand-off missiles allow a military to attack sites such as enemy missile bases from outside the enemy’s range.
The Defense Ministry also plans to equip the Japan Maritime Self-Defense Force (JMSDF)’s Aegis destroyer Chokai with a function to launch U.S.-made Tomahawk cruise missiles by allocating $11.4 million. This renovation work will be completed by the end of fiscal 2025. Starting with Chokai, the JMSDF will deploy Tomahawk missiles to all eight of its Aegis destroyers step by step.
On the second pillar, the Defense Ministry secured $3.4 billion for strengthening the nation’s Integrated Air and Missile Defense (IAMD), a system already adopted by the U.S. military, to address new aerial threats, including hypersonic weapons developed by China, North Korea, and Russia.
The Defense Ministry secured $548 million as expenses related to the acquisition of two Aegis System Equipped Vessels (ASEVs). Specifically, it made mention of costs associated with preparation for various tests, including demonstration tests.
The ASEVs are an alternative to the two land-based Aegis Ashore ballistic missile defense (BMD) systems, which were canceled in June 2020 during the Abe Shinzo administration over concerns that falling components from missile interceptors might hit heavily populated areas in Japan.
The JMSDF is expected to take delivery of the first ASEV during fiscal year 2027, with the second one in the following fiscal year.
As for the fifth pillar, the Defense Ministry was allocated $75.4 million to field the next-generation JADGE (tentative name) through a large-scale remodeling of JADGE, which is the core of command and control under the integrated air and missile defense system, to enable command and control from locations other than Air Defense Direction Centers (DC) through the use of mobile terminals, thereby strengthening resiliency, and to improve the capability to deal with new threats such as hypersonic glide vehicles (HGVs).
The ministry’s Acquisition, Technology, and Logistics Agency (ATLA) was allocated $689 million to push ahead with its next-generation fighter program in partnership with the United Kingdom and Italy. ATLA said that from FY2025, design work and others such as the future fighter’s airframe and engine design, which have been carried out by the three countries respectively so far, will be centralized in GIGO (GCAP International Government Organization), which will be established trilaterally by the three nations.
ATLA also secured $37.4 million to domestically develop a new medium-range air-to-air guided missile to be installed in the next-generation fighter, which is set to be the successor to the Japan Air Self-Defense Force (JASDF)’s F2 fighter jet.
The JASDF earmarked $879 million to buy eight more Lockheed Martin F-35A Lightning II joint strike fighters and $421 million to purchase three more F-35B Lightning multirole fighter aircraft.
The JMSDF secured $2 billion to build three new multirole frigates, called “New FFM” in Tokyo. (FFM is an acronym for Future Multi-Mission Frigate.)
The Defense Ministry said it will acquire a total of 12 New FFMs that will succeed the Mogami-class FFM for the JMSDF. The New FFM has a standard displacement of 4,800 tons, while the Mogami class has a standard displacement of 3,900 tons.
Although the new warship class will be heavier and larger than the Mogami-class, defense officials said the New FFM’s crew complement will be only 90, the same as that of the Mogami-class.
The new frigates will essentially be improved Mogami-class ships. The Defense Ministry said the new-class FFM will be fitted with longer-range missiles, enhanced anti-submarine capabilities, and improved capabilities for various maritime operations.
The JMSDF also earmarked $11.4 million to continue modifying its two Izumo-class helicopter carriers – JS Izumo and JS Kaga – into aircraft carriers capable of enabling Lockheed Martin F-35B fighter operations. Specifically, it secured funds to construct the power monitoring and control panel for JS Izumo, which is necessary to complete the ship’s second major modification.
During fiscal year 2024, as part of its second modification, JS Izumo is undergoing the conversion of the bow section of its flight deck from a trapezoid into a square shape. JS Kaga underwent the same modifications during fiscal year 2023.
The ministry said JS Izumo’s modification is scheduled to be completed in fiscal year 2027, and JS Kaga’s in fiscal year 2028.
The JMSDF was also allocated $25.4 million to acquire six V-BAT unmanned aerial vehicles (UAVs) from Shield AI, an American aerospace and arms technology company based in San Diego, California. The UAVs will be installed on the service’s patrol vessels.
Meanwhile, the Japan Ground Self-Defense Force (JGSDF) strives to strengthen security efforts in response to emergency contingencies in areas surrounding Japan, particularly in the Nansei Islands, with China in mind.
It secured $57.7 million to procure six common tactical wheeled vehicles for reconnaissance and combat for the first time.
In addition, the Defense Ministry was allocated $2.6 billion to improve the treatment and working environment of SDF personnel in order to alleviate the shortage of candidates.
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