Japan has approved a record ¥8.7 trillion ($55.1 billion) defense budget for fiscal 2025, marking the 13th consecutive year of increased military spending.  Reflecting Tokyo’s efforts to counter growing threats from China, North Korea, and Russia, which the government has called “the most severe and complex security environment since World War II.”

A key element of Japan’s strategy is its Official Security Assistance (OSA) program, launched in 2023 to provide grants for defense equipment, infrastructure, and training to regional partners. For 2025, Japan plans to expand OSA’s budget to ¥8 billion ($51.5 million), a 60% increase, while adding new recipient nations such as Papua New Guinea alongside current beneficiaries like the Philippines, Indonesia, and Malaysia.

OSA grants have funded projects like coastal surveillance radars for the Philippines, high-speed patrol boats for Indonesia, and air traffic control systems for Mongolia. Djibouti, home to Japan’s only overseas military base, also received coastal radar funding to address maritime security concerns.

Japan’s budget also prioritizes advanced weaponry, allocating ¥939 billion for stand-off missiles and ¥533 billion for missile defense systems. However, challenges remain. Critics argue Japan’s Self-Defense Forces (SDF) lack the capacity to operate independently, and rising costs due to the yen’s depreciation have inflated the price of foreign military acquisitions.

Despite these hurdles, Japan’s defense investments aim to strengthen regional security and reduce reliance on the U.S. while countering escalating threats in the Indo-Pacific.