Public Policy & GovernanceDecember 21, 2025

Japan's Defense Policy Shifts Spark Domestic and International Controversy

Japan's defense policies face controversy as ruling and opposition parties debate military equipment transfer guidelines while a government official's nuclear weapons comments draw international criticism.

A Cabinet Office survey shows 73% of Japanese residents worry about inflation, the highest since 1998. Rising costs affect groceries, utilities, and daily expenses, with particular impact on expats lacking local support networks.

Multiple earthquakes hit Japan on December 21, including intensity 4 shaking in northeastern regions. New research reveals major earthquakes may occur more frequently than previously thought, emphasizing ongoing preparedness needs.

Japan's FY2025 budget reaches record ¥120 trillion, driven by aging society costs, healthcare fee increases, defense spending, and ¥1 trillion AI investment over five years starting April 2025.

New government assessment reveals significant challenges in disaster support for foreign residents and tourists, particularly concerning a major Tokyo earthquake. Language barriers and system gaps leave expats vulnerable.

Japan is establishing a Financial Crime Prevention Center bringing police and bank staff together to track and recover fraud losses. The initiative addresses rising special fraud cases affecting residents including expats.

Japan's disabled workforce exceeded 700,000 for the first time, but only 46% of companies meet legal employment quotas. New government guidelines also address women's workplace health needs.

Hokkaido Shinkansen faces ¥1.2 trillion cost increase, potentially delaying Sapporo extension. Meanwhile, US car imports become easier with simplified testing requirements starting late January.

Japan projects up to 18,000 deaths and 83 trillion yen in damage from a major Tokyo earthquake. The government will revise disaster plans while urging residents to enhance personal preparedness.

Japan's national university hospitals report major deficits while the government plans a 3.09% medical fee increase, the largest in 30 years, potentially affecting patient costs.

Japan raises income tax threshold to 1.78 million yen, benefiting part-time workers and expats. The LDP and Ishin no Kai approved the reform on December 19, 2024, marking a major adjustment to personal taxation.

The BOJ raised rates to 0.75%, but the yen weakened to 157 per dollar as markets expect slow future hikes. Variable mortgage rates will rise while currency volatility affects international transfers.

Japan's Smartphone Law took effect December 18, requiring Apple and Google to open their app ecosystems to third-party stores and alternative payment systems, promoting competition and potentially lowering costs.