Over recent years, Japan has significantly increased its defense spending as part of a broader strategy to improve its military capabilities and ensure regional stability. With its approved defense budget of $55.13 billion for fiscal year 2025, Japan has increased its defense spending for the 13th consecutive time, demonstrating a transformation in its security approach. This increase is largely driven by Japan’s desire to develop its defense industry and strengthen regional security partnerships.
The increase in Japan’s 2025 fiscal year defense budget underscores the increasing priority given to national security in the context of regional and global developments. This $55.13 billion defense budget is the largest in Japan’s post-war history. Japan’s trend is driven by the intensification of geopolitical struggles around the world.
Japan’s move reflects a strategic shift to strengthen its defense capacity at a time when traditional security concerns as well as new threats such as cyber attacks and missile proliferation are more prominent than ever.[1] The 2025 defense budget includes significant investments in long-range missile capabilities, including Tomahawk missiles, and aims to enhance Japan’s deterrence and response capability. Investment in advanced missile technologies such as the Tomahawk is in line with Japan’s broader goal of ensuring that it can protect its territorial waters and airspace from potential attack.
This defense budget is part of a larger National Security Strategy that envisions Japan taking a more proactive role in protecting its national interests. This Strategy outlines an ambitious plan to increase Japan’s military capabilities while maintaining its constitutionally mandated self-defense posture. This evolving defense strategy comes at a time when the international community, particularly in the Asia-Pacific region, is grappling with changing power dynamics, regional disputes, and the complexities of modern warfare.
As part of its broader military build-up, Japan is also taking important steps to develop its domestic defense industry. This includes investments in indigenous military technologies, joint development projects with allies, and a focus on military hardware exports. Japan’s defense industry aims to move away from dependence on foreign military technology and towards greater self-sufficiency. Japan’s plan to spend 314.8 billion yen ($2 billion) in fiscal 2025 to build three 4,800-ton destroyers is an important example of this shift. These advanced destroyers are designed to strengthen Japan’s maritime defense capabilities and provide the Japan Self-Defense Forces (JSDF) with the flexibility and mobility needed to respond effectively to regional security challenges.[2]
Japan is also focusing on joint defense projects with its allies, particularly the United States (US), to further modernize its military forces. These collaborations have expanded to include the development of missile defense systems, cybersecurity capabilities and artificial intelligence technologies to improve the precision and efficiency of Japan’s military operations.
By diversifying its defense industrial portfolio, Japan aims to become a major player in the global defense market while increasing its regional influence, an area that has been expanding in recent years under more flexible government policies. This initiative is in line with broader efforts to build strategic partnerships with Australia, India and other countries in the Indo-Pacific region.
Japan’s defense strategy also places great emphasis on strengthening security ties with key regional partners. Over the past year, Japan has engaged in a number of bilateral security agreements and initiatives aimed at enhancing military cooperation with its neighbors and allies. One of the most important developments in this area is Japan’s new military access agreement with the Philippines. Ratified in late 2024, it will facilitate the entry of Japanese troops and military equipment into the Philippines for combat training and disaster response. The agreement with the Philippines is a clear signal of Japan’s intention to increase its regional security role and provide assistance to its neighbors in times of crisis. By expanding its defense presence in Southeast Asia, Japan seeks to increase its influence in the region while strengthening its relations with like-minded countries. The Philippines has welcomed Japan’s growing involvement in regional security.[3]
On the other hand, Japan and India are deepening their defense and security ties. In 2024, both countries took important steps to expand their military cooperation, including joint military exercises and intelligence sharing agreements. The strengthening of Japan-India defense ties is part of a broader trend of security partnerships between some states in the region, including Australia, the United States and other partners in the Quadrilateral Security Dialogue (QUAD).[4] Japan’s engagement with India and the Philippines underscores its strategy of multilateral defense cooperation in the Asia-Pacific region.
The deployment of advanced missile systems such as the Tomahawk and the construction of new naval destroyers are central to Japan’s strategy to protect its territorial waters and provide a credible deterrent against potential aggression. Japan is also expanding the use of maritime surveillance technologies and strengthening its undersea warfare capabilities to effectively respond to any threat in the region.
These developments reveal Japan’s defense strategy, which has become more proactive and capable of deterring its adversaries. By increasing its military preparedness, Japan aims to maintain the balance of power in the region, deter hostile actions, and ensure peace and stability in the face of growing security challenges.
Japan’s historic defense budget for the 2025 fiscal year and its continued military buildup are a clear reflection of the country’s strategic response to a rapidly changing and increasingly complex regional security environment. As threats from geopolitical challenges have increased, Japan has sought to modernize its military capabilities, strengthen its defense industry, and deepen security cooperation with key regional partners. As Japan continues to evolve its defense posture, it seeks to find its place in an increasingly volatile global security environment through the constitutional obligation of self-defense. The country’s strengthened military capabilities are coupled with closer defense ties with countries such as the Philippines, India and the United States. In the coming years, Japan’s defense strategy will continue to be critical to the security dynamics of the Indo-Pacific and the broader international community.
[1] “Japan Approves 9.4 Percent Increase in Defense Spending for FY2025”, The Diplomat, https://thediplomat.com/2024/12/japan-approves-9-4-percent-increase-in-defense-spending-for-fy2025/, (Accessed: 06.01.2025).
[2] “Japan Cabinet OKs record defense budget as it pushes strike-back capability to deter regional threat”, AP News, https://apnews.com/article/japan-military-budget-us-australia-china-f82c70bd6f5cbfc184f15cf17f2fde21, (Accessed: 06.01.2025).
[3] “Philippines Senate ratifies new defence pact with Japan”, Al Jazeera, https://www.aljazeera.com/news/2024/12/17/philippines-ratifies-new-military-defence-pact-with-japan, (Accessed: 06.01.2025).
[4] “Looking Back at India-Japan Security Ties in 2024: A Way Forward”, The Diplomat, https://thediplomat.com/2025/01/looking-back-at-india-japan-security-ties-in-2024-a-way-forward, (Accessed: 06.01.2025).
