TOKYO The persistent weak yen is severely upsetting Japan's historic defence spending plans, raising doubts over its ability to beef up security amid perceived regional threats.
This is all the more stark when pitted against China, whose military spending is larger by an order of magnitude.
Japan intends to spend 7.9 trillion yen (S$71.5 billion) on defence in fiscal 2024, under a budget that was passed by Parliament's Lower Chamber on March 9 and is now before the Upper House. This marks a 16.6 per cent hike from 2023, and accounts for about 7 per cent of overall expenditures of 112.7 trillion yen.
Meanwhile, China, on March 5, announced defence spending of 1.67 trillion yuan (S$313 billion) for 2024, with defence outlays increasing by over 7 per cent for the third straight year. The security budget takes up a whopping 40 per cent of the overall government budget of 4.15 trillion yuan.
The gulf becomes even wider when considering that Japan includes research and development within its defence budget, but not China, Dr Satoru Nagao of the Hudson Institute think-tank noted.
Still, Japan's considerable budget increase is part of a defence spending plan that earmarked 43 trillion yen over a five-year period ending in 2027.
By that year, Japan should allocate 2 per cent of its gross domestic product to defence spending, up from about 1.2 per cent today.
Yet there is mounting debate over whether the 43 trillion yen is enough.
Mr Sadayuki Sakakibara, the former chairman of the Keidanren business lobby group, said at a Defence Ministry expert panel meeting in February that discussions over raising the figure should not be taboo.
This story is from the March 11, 2024 edition of The Straits Times.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the March 11, 2024 edition of The Straits Times.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
FURIOUS FURY BLOODIED IN SAUDI
Tyson’s father hurt after headbutting Usyk’s team member ahead of heavyweight bout
Celtics 'figure' a way out against depleted Cavs
The Boston Celtics were not \"perfect\" but they still fought off the short-handed Cleveland Cavaliers to take a stranglehold in their National Basketball Association (NBA) semi-final play-offs on May 13, as the Oklahoma City Thunder levelled their series with the Dallas Mavericks.
COMING UP BIG FOR NYJC
Renfred plays no small role as Nanyang beat HCI to retain boys’ A Div volleyball crown
UNBEATEN PACIFIC VAMPIRE UNVEILS SCARY WARNING
Trainer Ong’s latest find leaves nothing to imagination, baring fangs in dazzling hitout
Nearly 2 in 3 Singapore workers ready to relocate abroad
Survey shows 72% of them are professionals below age 30; Australia most popular location
Life insurance sales in Singapore surge 32.2% to $1.37 billion in Ql
It is the industry’s strongest performance since 2020; LIA says outlook remains bright
GameStop shares soar on resurfacing of Roaring Kitty’
Post by Keith Gill, who drove meme-stock mania of 2021, attracts more than 12m views
Fraud concerns raise red flags for India’s booming tiny IPOs
A string of accounting frauds unearthed by India's securities regulator in May poses another risk to the blistering rally in shares of tiny businesses.
Retail traders sitting out Bitcoin rally
Latest revival more an institutional affair propelled by birth of Bitcoin ETFs in the US
Man with most number of charges forfeits 180 million in assets seize
Vang Shuiming jailed after pleading guilty; he will be deported after serving sentence