Japan has approved a record 9.04 trillion yen defence budget for fiscal 2026, equivalent to about 1.82 trillion baht, marking the 12th straight annual increase. The budget, approved under Prime Minister Sanae Takaichi, is 3.8% higher than the current fiscal year and comes as Tokyo responds to growing military pressure from China, North Korea and Russia, as well as continued calls from the United States for Japan to spend more on defence.
One of the budget’s main priorities is the development of a layered coastal defence system known as SHIELD, short for Synchronized, Hybrid, Integrated and Enhanced Littoral Defense. Funding has also been allocated for a range of naval platforms, including frigates, submarines and minesweepers, as well as continued modifications to Japan’s Izumo-class helicopter carriers so they can support operations by F-35B fighter jets.
At the same time, Japan is moving towards its biggest relaxation of arms export restrictions since World War Two. Reuters reported that Prime Minister Takaichi’s ruling party approved changes this week and that the government is expected to formally adopt the new rules as soon as this month. The shift would help expand Japan’s defence industrial base and make it easier to export more advanced and lethal systems to countries that cooperate with Tokyo on defence technology.