JAPAN: Defense Ministry modifies equipment procurement policy Defence and Security

A new strategy has been adopted by Ministry of Defense (MoD) to amend the procurement process for defense equipment, reinstating a 44 year old strategy that aimed on domestic development.

In order to boost the economy and the international competitiveness of Japan’s defense industry, the new policy tends to encourage collective development of defense equipment and technologies with other nations.

Defense Minister, Itsunori Onodera, commented there is a strong need for Japan to upgrade its defense equipment and technologies to match up with the rest of the world.

The change in focus comes at a duration when high-tech defense equipment, like stealth fighters, is mainly being developed involving numerous countries under joint projects.

Japan faced deflation blow in April, finally abated its blanket ban on exports of defense equipment to encourage joint development with other nations and target the lucrative arms market.

According to the Ministry, the domestic defense industry is facing a shift, such as changeover of European and U.S defense contractors and growth in international joint development as a result of the new policy.

The Japanese defense industry is subjected to encourage operations where it has comparative edge, to get a hold in international competitive market. By joining international joint development projects the underdeveloped areas can be strengthen.

As an effort to concrete the domestic industry, the policy called for tapping government funds, such as “Zaito” the fiscal investment and loan plan, to assist finance the construction of maintenance industries overseas for Japanese companies that export defense equipment.

The policy also involves setting up an Asia-Pacific maintenance base in Japan for the F-35 stealth jet, which is expected to be the next mainstay fighter of the Air Self-Defense Force.

The ministry projects to design a road map for developing and deploying defense items that are likely to grow into mainstay equipment 20 years from now on, with drones included.