On August 30, 2024, Japan’s Defence Ministry requested a record budget of 8.5 trillion yen (approximately USD 59 billion) for the upcoming year. This budget aims to enhance deterrence on southwestern islands in response to China’s growing threat. It also focuses on investing in unmanned weapons and artificial intelligence to address the challenges posed by the country's shrinking population and the resulting decline in servicemembers. 

The Defence Ministry's 2025 budget request marks the third year of Japan’s accelerated five-year military buildup plan, part of its current security strategy. Japan plans to allocate 43 trillion yen (about USD 297 billion) through 2027, aiming to double its annual military expenditure to around 10 trillion yen. This increase would position Japan as the world's third-largest military spender, following the United States and China. 

The budget request was approved during a Defence Ministry meeting on August 30, 2024, and is set to be submitted to the Finance Ministry for negotiations, which will continue through December. 

In recent years, Japan has significantly strengthened its defence in the southwestern region due to increasing military threats from China and rising tensions in regional seas. China has intensified its confrontations with Philippine coast guards in contested areas of the South China Sea. Additionally, Beijing has deployed a fleet of coast guard boats that frequently intrude into territorial waters around disputed islands in the East China Sea, which are also claimed by Japan. 

Of the 2025 budget request, a substantial 970 billion yen (approximately USD 6.7 billion) is allocated for enhancing Japan's strike-back capability. This funding will be used to develop and acquire long-range missiles and the necessary launch equipment, including from an Aegis-class destroyer. Additionally, about one-third of this amount is designated for building a satellite constellation to improve Japan's ability to detect missile-related activities. This is particularly crucial as North Korea, China, and Russia advance their hypersonic missile technologies, which are more challenging to detect and track. 

As Japan advances its military buildup, it faces the challenge of a shrinking troop size and is focusing on expanding its drone capabilities for both surveillance and combat. The country has requested 103 billion yen (approximately USD 710 million) for the development and procurement of more drones. Additionally, Japan seeks 314 billion yen (about USD 2.17 billion) to construct three new multi-purpose compact destroyers, each requiring only 90 crew members—less than half the number needed for current destroyers. 

Japanese defence officials view combat drones as "game changers" due to their ability to conduct extended missions and reduce human casualties. These unmanned systems are considered a key component of Japan’s military expansion strategy and are expected to address the challenges posed by the country’s ageing and shrinking population. Japan has struggled to maintain its Self-Defense Forces (SDF) troop levels, which currently stand at 247,000 personnel. 

The Self-Defense Forces (SDF) have struggled to attract young recruits in recent years, achieving only half of their recruitment target of 19,598 last year, the lowest in the 70-year history of the SDF. Additionally, 6,258 mid-career personnel left last year, marking the highest number in 30 years. 

In an interim report released on Friday, the Defense Ministry highlighted that Japan faces a significant labour shortage due to declining birth rates and a shrinking working-age population. The report emphasises the need to build an organisation capable of adapting to new methods of warfare while strengthening defence capabilities. 

The ministry's report describes the recruitment environment for the Self-Defense Forces (SDF) as the worst since World War II, citing a shrinking younger population and private companies offering better salaries and benefits. To address these issues, the ministry has requested 18 billion yen (approximately USD 124 million) to implement an AI surveillance system at 40 SDF bases across Japan, which aims to reduce the need for 1,000 service personnel. Additionally, it is seeking 4.3 billion yen (about USD 29.7 million) for automated supply storage to be launched in 2027 in Okinawa. 

The interim report, released on August 30, 2024, also calls for reforms to improve salaries, working conditions, training, and learning opportunities, as well as support for working mothers to attract more women into the ranks. 

The ministry has faced several challenges in recent years, including revelations of sexual assaults, harassment, and abuse of power. An internal investigation last year criticised attempts to cover up these issues and a lack of accountability among supervisors. The ministry was also criticised in July over a leak of classified information and corruption scandals. 

Image source: Business Standard