Japan seeks record US$55.6bil defence budget, with AI focus

In a bid to bolster national defense, Japan's Ministry of Defense has requested a record-breaking budget of 8.9 trillion yen, or US$55.6 billion, for the upcoming fiscal year. Prime Minister Sanae Takaichi, known for her hawkish stance towards China, has emphasized defense as a priority in her conservative agenda. The rising budget could potentially reach 10 trillion yen, according to a ruling party lawmaker, as Japan undergoes a comprehensive upgrade of its defense infrastructure.

The request primarily focuses on countering new forms of warfare, with a strong emphasis on the utilization of artificial intelligence, drones, and standoff missiles. The ministry aims to develop an AI-powered decision support system and procure low-cost drones that can work in tandem with long-range missiles to neutralize enemy assets.

Additionally, Japan plans to develop underwater-launched hypersonic missiles and establish a new unit to counter cognitive warfare, a growing threat involving disinformation campaigns and other operations.

The budget request for the fiscal year starting April 2027 highlights Japan's efforts to bolster its military in response to the volatile geopolitical landscape. China's rapid military expansion, North Korea's continuous development of missiles and nuclear weapons, and Russia's ongoing war in Ukraine have all contributed to Japan's need to strengthen its defense capabilities.

The government's move follows a period of increased military spending and security cooperation in Asia, including the deployment of missile launchers to outer islands, efforts to acquire counterstrike capabilities, and relaxation of rules on weapons exports.

Takaichi's leadership has been marked by a shift towards a more assertive stance on defense, particularly in relation to China. Her government's actions have further strained relations with China, following Takaichi's suggestion in November that Japan could intervene militarily in any conflict over Taiwan. Beijing has expressed concern over what it perceives as Japan's return to a new form of militarism.

As part of Prime Minister Sanae Takaichi's overall budget request, which is expected to reach around 143 trillion yen, Japan aims to significantly increase its defense expenditures, marking a stark contrast to the previous fiscal year's request of 122.4 trillion yen.