Japan Approves Record Defense Budget for Fiscal Year 2024

The draft budget will rise by a 16.5 percent, or $7.93 billion (1.13 trillion yen), from the current fiscal year. This marked yet another record figure for the tenth year in a row in the history of Japan’s national defense budget.

The draft budget, which is expected to be passed by Japan’s bicameral legislature in the coming months, calls for strengthening the nation’s integrated air and missile defense system and stand-off defense capabilities to address rising military threats posed by China, North Korea, and Russia.

Officials at the Japanese Ministry of Defense (MoD) stressed at a press briefing on December 21 that despite the rapid depreciation of the yen and rising prices, there has been no reduction in the number of major weapons and equipment for FY2024, based on the Defense Buildup Program over the five-year period from fiscal 2023 to fiscal 2027, which was drawn up in December last year.

The budget requests related to the maritime domain are as follow:

Construction of two Aegis system equipped vessels – ASEVs ($2.6 billion)

As reported by Naval News on December 19, the MoD has secured $2.6 billion (373.1 billion yen) for fiscal year 2024 to build two Aegis System Equipped Vessels (ASEV) as an alternative to the two land-based Aegis Ashore ballistic missile defense (BMD) system, which was cancelled in June 2020 during the Shinzo Abe administration over concerns that falling components from missile interceptors might hit heavily populated areas over Japan.

In addition to this acquisition cost of $2.6 billion, the MoD also has secured $572 million (81.5 billion yen) for related expenses such as various test preparations and operational support equipment such as test sites. This means a total of $3.2 billion (454.6 billion yen) has been earmarked as the budget associated with the two ASEVs for fiscal 2024 alone.

Construction of two new FFMs ($1.2 billion)

New FFM
MHI showcased for the very first time this New FFM / FFM-AAW air warfare frigate at IndoPacific 2023.

The defense ministry said it will acquire a total of 12 new FFMs that will succeed the Mogami-class FFM for the Japan Maritime Self-Defense Force (JMSDF). It has earmarked $1.2 billion (174 billion yen) in next year’s budget for the construction of first two new FFMs, which are scheduled to be deployed in FY2028.

The defense ministry said the new-class FFM will be fitted with longer-range missiles, enhanced anti-submarine capabilities, and improved capabilities for various maritime operations.

Specifically, the ship-launched, improved version of the Type 12 SSM and the new ship-to-air guided missile (or simply A-SAM) will be equipped with the new-class FFM, defense officials said.

The MoD documents, released by the MoD on December 22, said the new-class FFM has a standard displacement of 4,800 tons, up from 4,500 tons, which was mentioned at the defense budget request on August 31.

Meanwhile, according to Mitsubishi Heavy Industries (MHI)’s proposal of the new-class FFM, which was officially released by the Japanese Acquisition, Technology & Logistics Agency (ATLA) on August 25, the new warship class will feature a heavier standard displacement of about 4,880 tons, a greater overall length of about 142 m, and a wider overall beam of about 17 m. Thus, the actual hull size seems to become closer to the MHI’s proposal.

The new vessels have a top speed of more than 30 kt, MHI’s proposal also said.

Despite the fact the new class will be bigger than Mogami-class, defense officials said the new class’s crew complement will be only 90, the same as that of the Mogami-class. To achieve this, Japanese naval planners have likely incorporated the new class with a higher level of automation and deployed extensive lean-manning concepts throughout the vessel.

Modifications of Izumo-class helicopter carriers($298 million)

JS Kaga new bow
JS Kaga with her new bow (Photo credit: Ken Akiyama)

The JMSDF has secured for $298 million (42.4 billion yen) to continue modifying its two Izumo-class helicopter carriers – JS Izumo and JS Kaga – into aircraft carriers capable of enabling Lockheed Martin F-35B fighter aircraft operations.

The JMSDF said $287.3 million (40.9 billion yen) will be used to modify the bow section of JS Izumo’s flight deck a trapezoid into a square shape during fiscal year 2024, following JS Kaga’s same modifications during the current fiscal year 2023. It also has secured $4.2 million (600 million yen) to equip Izumo with a landing navigation system for F-35Bs, which is set to be Raytheon’s Joint Precision Approach and Landing System (JPALS).  Meanwhile, JS Kaga was allocated $2.1 million (300 million yen) to receive modifications of its satellite communicator after undergoing major upgrades in fiscal year 2023.

The JMSDF said both ships will complete all of upgrades to become a light aircraft carrier operating F-35B fighters in fiscal year 2027.

Development of electronic warfare aircraft ($99 million)

The MoD said it will develop an electronic-warfare aircraft by allocating $99 million (14.1 billion yen) in order to respond to the increasingly complex electronic warfare environment and strengthen capabilities in the electromagnetic domain necessary for cross-domain operations.

The new aircraft will be developed based on the Kawasaki P-1 maritime patrol aircraft (MPA).

Co-development of the Glide Phase Interceptor (GPI) with the U.S.($532 million)

Raytheon GPI
Raytheon Missiles & Defense’s artistic rendering of a GPI conceptual design.

The two nations plan to complete this development in the early 2030s, defense officials in Tokyo explained.

The Japanese side will be primarily responsible for the rocket motor and the propulsion system for the kill vehicle.

Japan and the United States agreed to start the joint development of the Glide Phase Interceptor (GPI). The announcement was made on August 18 by both the Japanese MoD and the U.S. Department of Defense (DoD) as US President Biden was hosting Japan’s Prime Minister Fumio Kishida and South Korea’s President Yoon Suk-yeol at Camp David.

Development of a new surface-to-ship/surface-to-surface precision guided missile ($227 million)

KHI long range cruise missile

The ministry plans to develop a new surface-to-ship/surface-to-surface precision guided missile by fiscal year 2030, which will likely have much more longer range than existing missiles.

At DSEI Japan 2023, Kawasaki Heavy Industry (KHI) unveiled a new type of stealthy anti-ship missile called “Island defense anti-ship missile (島嶼防衛用新対艦誘導弾 in Japanese)”. This missile is  related.

Acquisition of maneuverable boats ($121.5million)

In order to secure capabilities for swift and reliable transportation of necessary units to defeat the invasion of islands to the southwest region, the MoD will procure three maneuverable boats during the next fiscal year. The ministry said the boats will be 35 meters long.

The MoD plans to hold competitive bidding after it secures the budget. In order to operate those new boats, a new “Self-Defense Force Maritime Transport Flotilla” (tentative name) will be established at the JMSDF Kure Base as a joint army, naval and air force in March 2025. The number of members at the flotilla will be about 100 from the three services, according the MoD.

At DSEI Japan 2023, BMT was showcasing a model of its CAIMAN-90 for this program.

Construction of a new replenishment ship ($583 million)

Japan new replenishment ship
Rendering of Japan’s new replenishment ship

The MoD secured $583 million (83 billion yen) to build a 14,500-tonne replenishment ship, which will strengthen logistical support capabilities on the sea for other JMSDF vessels in any situation. It is scheduled to be delivered in fiscal year 2028. The new ship will be the successor of JS Towada (AOE-422), according to the MoD.

Research on combat support multipurpose USV ($174 million)

combat support multipurpose USV
Artist impression of the Combat Support Multipurpose USV

Selectively equipped with functions such as warning and surveillance and anti-ship missile launch, Researching stealth USVs that support manned ships.

Development of unmanned amphibious vehicle ($145 million)

unmanned amphibious vehicle

Landing is possible from all fronts on the islands, allowing troops to land nearby from the sea. Development of an unmanned amphibious vehicle that can carry out missions such as transporting supplies has begun.

Trial operation of USV (test equipment) ($114 million)

In order to quickly acquire knowledge of USV operation and promote the development of domestically produced USVs, the Japanese defense budget calls for the procurement of USVs that have been used in various countries as test equipment.

Research and development on UUV for ocean observation ($1.4 million)

In order to improve the efficiency of ocean observation:

Conducting research and research on UUV (for underwater topography observation and acoustic characteristics investigation), which is currently being considered for introduction.

Conducted performance tests using UUV (for observation of water temperature structure, etc.) test equipment procured in FY2023.

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