Japan Defence and Security Report Q3 2009

Executive Summary .............5
SWOT Analysis....6
Japan Security SWOT........... 6
Japan Defence Industry SWOT.............. 6
Japan Political SWOT .......... 7
Japan Economic SWOT ........ 7
Political Overview.................8
Security Risk Analysis.......13
BMI’s Security Ratings ............ 13
Table: Asia Pacific Regional Security Ratings........ 13
Table: Asia Pacific State Vulnerability To Terrorism Index .... 14
City Terrorism Rating.............. 15
Methodological Overview... 16
Table: Methodology............ 17
Table: BMI’s Asia City Terrorism Index................. 18
Japan’s Security Ratings.......... 19
Terrorism Risk Ratings ....... 19
Physical Safety Risk Ratings ................ 19
Conflict Risk Ratings .......... 19
South East Asia Security Overview....20
Security Overview ..............24
Internal Security Situation .. 24
Table: Japan – Non-State Armed Groups ............... 25
External Security Situation . 25
Territorial Disputes ............ 26
External Diplomatic Relations............. 27
US-Japan Relations ............ 27
Relations With North Korea And China.................. 28
Armed Forces And Government Spending ..........30
Armed Forces .... 30
Normalisation Of Japan’s Defence Forces ............. 31
Defence Budget.. 33
International Deployments.. 34
Table: Regional Military Strength, 2007 (‘000)...... 35
Weapons Of Mass Destruction............. 35
Market Overview.................37
Table: Japan’s Defence R&D Trends .... 37
Industry Trends And Developments ..... 38
Procurement Trends And Developments................. 39
Competitive Landscape....... 40
Industry Forecast Scenario .................42
Army Enlargements............. 42
Table: Japan’s Armed Forces, 2004-2013 (‘000 personnel).... 43
Table: Japan’s Defence Expenditure, 2004-2013 ... 43
Government Defence Expenditure ....... 44
Macroeconomic Forecast ... 45
Table: Japan – Macroeconomic Activity, 2006-2013............... 46
Company Profiles...............47
Mitsubishi Heavy Industries (MHI)...... 47
Kawasaki Heavy Industries (KHI) ....... 48
Ishikawajima-Harima Heavy Industries (IHI) ........ 49
Fuji Heavy Industries (FHI) ................ 50
Country Snapshot: Japan Demographic Data......51
Section 1: Population.......... 51
Table: Demographic Indicators, 2005-2030........... 51
Table: Rural/Urban Breakdown, 2005-2030 .......... 52
Section 2: Education And Healthcare.... 52
Table: Education, 2002-2005 .............. 52
Table: Vital Statistics, 2005-2030........ 52
Section 3: Labour Market And Spending Power ..... 53
Table: Employment Indicators, 2001-2006............. 53
Table: Consumer Expenditure, 2000-2012 (US$) ... 54
Table: Average Annual Wages, 2000-2012............. 54
BMI Forecast Modelling.....55
How We Generate Our Industry Forecasts ............. 55
Defence Industry................. 55
Sources .............. 56