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

TOKYO: Japan's defence ministry requested a record budget of 8.9 trillion yen (US$55.6 billion) on Monday (Aug 31) as Tokyo looks to artificial intelligence to speed up decision-making in the face of a tense security environment.

The final budget reportedly could reach 10 trillion yen as Tokyo undergoes a sweeping upgrade of its defence in order to navigate growing tension with neighbours such as China, North Korea and Russia.

The latest request focuses on countering "new ways of warfare", with an emphasis on the use of AI, drones and standoff missiles.

Under the request, the ministry hopes to implement an AI-powered decision support system.

It also wants to procure low-cost drones that can work in tandem with long-range missiles to neutralise enemy assets.

The ministry said it plans to develop underwater-launched hypersonic missiles and establish a new unit to bolster defences against cognitive warfare, a growing threat aimed at shaping public opinion through disinformation campaigns and other operations.

The budget request for the fiscal year starting from April 2027 highlights the latest step by Japan to boost its military to meet the volatile geopolitical reality, gradually shedding its traditional pacifist stance that limited the use of force purely for self-defence.

China's rapid military expansion and North Korea's steady development of missiles and nuclear weapons have pressed Japan to shore up its defence.

Russia's war in Ukraine has fuelled worries among Japanese policymakers that a similar conflict could erupt in East Asia.

REQUESTED BUDGET MAY INCREASE

The Nikkei newspaper said the defence ministry's request may jump to more than 10 trillion yen, citing an unnamed ruling party lawmaker.

The current request did not specify the estimated costs of many products and services, including missiles, drones and digital systems.

These figures will be finalised once the government finishes its revision of core national security documents by the end of the year, defence officials said.

Those three documents set the outline of the country's future defence capabilities while assessing the country's security environment.

Japan has been beefing up military spending and security cooperation in Asia, deploying missile launchers to outer islands, moving to acquire "counterstrike" capabilities and easing rules on weapons exports.

Prime Minister Sanae Takaichi, seen as a China hawk, has placed national defence at the top of her conservative agenda.

Japan's ties with China deteriorated sharply after she suggested in November that Japan could intervene militarily in any conflict over Taiwan, which Beijing views as its territory.

China has expressed alarm at what it sees as a return to "new militarism" by Japan.

Under Takaichi, the government is expected to make an overall budget request of around 143 trillion yen, a sharp increase from 122.4 trillion yen requested for the ongoing fiscal year, the Nikkei newspaper reported.