TOKYO (REUTERS) - Japan's government on Friday (Dec 20) approved an eighth straight annual increase in defence spending to a record high as it buys US-made stealth fighters, interceptor missiles and other equipment to counter military build-ups by North Korea and China.
Japan's defence budget will rise 1.1 per cent to a record 5.31 trillion yen (S$65.87 billion) in the year starting April 1.
Japan's Parliament, which is dominated by Prime Minister Shinzo Abe's ruling Liberal Democratic Party, will vote on the spending plan next year.
Despite a Constitution that forbids the possession of offensive weapons, Japan is one of the world's biggest military spenders.
Outlays on defence have increased by almost 15 per cent in less than a decade, spurred on by neighbouring China modernising its military and North Korea developing nuclear weapons and missiles that could deliver them anywhere in Japan.
Much of Japan's recent defence spending splurge has gone on equipment supplied by US defence contractors such as Lockheed Martin Corp and Raytheon Co. Local makers such as Mitsubishi Heavy Industries have seen their share of defence spending shrink.
President Donald Trump has thanked Mr Abe for buying the US equipment, helping ease trade tensions between the allies.
Big-ticket purchases next year will include nine Lockheed Martin F-35 stealth fighters, including six short take-off and vertical landing (STOVL) B variants it wants to fly off aircraft carriers, for 107 billion yen. Japan plans to deploy them to extend the operational range of its Self Defence Forces.
Japan's Ministry of Defence will also spend more than US$1 billion (S$1.36 billion) to strengthen its ballistic missile defences (BMD), including the purchase of a new generation of missiles designed by Raytheon to shoot down incoming warheads in space.
It is also appropriating funds to begin building two ground-based Aegis Ashore missile tracking stations with powerful new radars.