Japan flexes defence ambitions at arms show
A mock model of an upgraded Type-12 SSM being displayed during the Defence Security Equipment International (DSEI) Japan. PHOTO: REUTERS
TOKYO - Japan opened one of its largest-ever arms shows on May 21 in a display that Defence Minister Gen Nakatani said marked the pacifist nation's deepening push for overseas defence cooperation and weapons exports.
The Defence and Security Equipment International (DSEI) Japan exhibition near Tokyo showcased Japanese missiles, warships and research into lasers and electromagnetic railguns. The event, double the size of the 2023 show, drew 471 firms from 33 countries, including 169 from Japan – twice as many as two years ago, according to organiser Clarion Defence and Security.
'I sincerely hope that this exhibition will provide a new opportunity for cooperation and exchange between national delegations and companies, help sustain defence industry development, drive innovation and promote peace and stability,' Mr Nakatani said during a speech at the event.
Japan has been gradually stepping back from the pacifism that was the cornerstone of decades of defence planning after the country's defeat in World War II.
It lifted a military export ban in 2014, and is taking its first steps into global defence cooperation encouraged by the United States and European partners eager to share development costs and tap Japan's industrial base.
'Strength comes from expanding and elevating the alliance's capabilities and capacity, which means leveraging our respective skills and our specialties in co-development, co-production, and co-sustainment,' US Ambassador to Japan George Glass said as he opened the US pavilion at the arms show.
Amid threats from China, North Korea and Russia, Japanese firms have become more willing to seek out military business.
'Our foundation goes back over 70 years with industry here. That's with the big and large heavy industry players, which makes sense, but we are seeing that now at multiple tier levels, tier one, tier two companies, even startups,' said Mr William Blair, the regional chief in Asia and India for Lockheed Martin, which supplies F-35 stealth fighters, air defence radars and other equipment to Japan.
Japan's partnerships in Europe include the Global Combat Air Programme jet fighter project with Britain and Italy.
'With today's increasingly uncertain security environment, I believe we must respond not just domestically, but with a broader international perspective,' said Mr Katsuyuki Nabeta, a general manager at the defence and space unit of Mitsubishi Heavy Industries, which is leading the Japanese portion of that advanced fighter project.
'We are pleased to have the opportunity to showcase our technologies and reach a wider audience, he added at the company booth next to a model of the Mogami warship it wants to sell to Australia. REUTERS
Join ST's Telegram channel and get the latest breaking news delivered to you.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
an hour ago
- Straits Times
Singapore bonds lifted by pullback from US Treasuries
Melbourne – Asia's top-rated bonds in Singapore and Australia are getting a lift from rising questions about the appeal of Treasuries, as fears that a proposed US tax bill may hit foreign investors add to pressure following a recent ratings downgrade. Strategists and portfolio managers are re-examining whether Treasuries are offering enough compensation, a rare challenge to the place of the world's largest bond market in global portfolios. Taiwanese insurers are making plans to back away from US dollar assets, while Hong Kong pension funds have been told to draw up contingency plans for a further rating downgrade of the United States. 'A huge amount of fiscal risk is not priced into US bonds – the downgrade, the fiscal package, investors stepping away from lending the US government money,' said Kellie Wood, head of fixed income at Schroders in Sydney. 'The potential for a fiscal misstep is increasing.' That is adding to the appeal of the world's dwindling supply of AAA rated bonds. The spread between Australian 30-year bonds and equivalent Treasuries is around its narrowest level in a year, a sign that investors are putting more of their money into the Australian debt. The gap between the same 30-year bonds from Singapore and the US is near a record discount. Australian 10-year yields declined 11 basis points on Friday (May 30), before slightly paring on Monday (June 2). Demand for the bonds is also being fuelled by bets on more interest rate cuts by the Reserve Bank of Australia, which has signaled further easing to soften the blow of global economic turmoil. Fiscal risk Taiwanese and Japanese insurers, and Australian pension funds, have for years piled into the US bond market as the obvious play to pick up safe long-term assets. But recent market volatility and continued questions about the US fiscal position are forcing a re-think. When Moody's Ratings downgraded the US in the middle of May – becoming the last of the three big credit rating companies to lower its ratings from the highest level – it warned that the country's fiscal deficit, government debt and interest burden would all rise over the coming years. It was just the latest sign of growing fears about Washington's fiscal position. Some institutional investors will be hunting for alternatives in the wake of the downgrade, said Ding Yifei, a senior fixed income portfolio manager at Invesco in Hong Kong, adding that AAA bonds in Asia Pacific will be among the winners. A tumble in the value of the US dollar has also put pressure on investors across Asia to find alternatives. When Taiwan's currency surged against the greenback last month, it raised questions about the damage to the island's US$1.2 trillion (S$1.5 trillion) life insurance sector. Regulators have moved to calm nerves, and are now considering easing rules on how insurers report their assets to soften the blow of the US dollar's decline. One large Taiwanese insurer has already begun building a small position in top-rated Australian and UK corporate bonds to diversify from US dollar-denominated assets, according to a money manager at the firm who declined to be identified because they aren't authorised to discuss investment decisions. Reserve managers are likely to shift toward the Singapore dollar market over time given it's the only AAA market in Asia, according to Goldman Sachs. Meanwhile, foreign investors in Australia's government bond market are set to face competition from local pension funds, whose demand for Aussie notes may outpace issuance, according to Bank of America. BLOOMBERG Join ST's WhatsApp Channel and get the latest news and must-reads.
Business Times
an hour ago
- Business Times
Asia's top-rated bonds lifted by pullback from US Treasuries
[MELBOURNE] Bonds in Australia and Singapore are getting a lift from rising questions about the appeal of Treasuries, as fears that a proposed US tax bill may hit foreign investors add to pressure following a recent ratings downgrade. Strategists and portfolio managers are re-examining whether Treasuries are offering enough compensation, a rare challenge to the place of the world's largest bond market in global portfolios. Taiwanese insurers are making plans to back away from US dollar assets, while Hong Kong pension funds have been told to draw up contingency plans for a further downgrade of the US. 'A huge amount of fiscal risk is not priced into US bonds – the downgrade, the fiscal package, investors stepping away from lending the US government money,' said Kellie Wood, head of fixed income at Schroders in Sydney. 'The potential for a fiscal misstep is increasing.' That is adding to the appeal of the world's dwindling supply of AAA rated bonds. The spread between Australian 30-year bonds and equivalent Treasuries is around its narrowest level in a year, a sign that investors are putting more of their money into the Australian debt. The gap between the same maturity bonds from Singapore and the US is near a record discount. Australian 10-year yields declined 11 basis points on Friday (May 30), before slightly paring on Monday. Demand for the bonds is also being fuelled by bets on more interest rate cuts by the Reserve Bank of Australia, which has signalled further easing to soften the blow of global economic turmoil. Fiscal risk Taiwanese and Japanese insurers, and Australian pension funds, have for years piled into the US bond market as the obvious play to pick up safe long-term assets. But recent market volatility and continued questions about the US fiscal position are forcing a re-think. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up When Moody's Ratings downgraded the US in the middle of May – becoming the last of the three big credit rating companies to lower its ratings from the highest level – it warned that the country's fiscal deficit, government debt and interest burden would all rise over the coming years. It was just the latest sign of growing fears about Washington's fiscal position. Some institutional investors will be hunting for alternatives in the wake of the downgrade, said Yifei Ding, a senior fixed income portfolio manager at Invesco in Hong Kong, adding that AAA bonds in Asia Pacific will be among the winners. A tumble in the value of the US dollar has also put pressure on investors across Asia to find alternatives. When Taiwan's currency surged against the greenback last month, it raised questions about the damage to the island's $1.2 trillion life insurance sector. Regulators have moved to calm nerves, and are now considering easing rules on how insurers report their assets to soften the blow of the US dollar's decline. One large Taiwanese insurer has already begun building a small position in top-rated Australian and UK corporate bonds to diversify from US dollar-denominated assets, according to a money manager at the firm who declined to be identified because they aren't authorised to discuss investment decisions. Reserve managers are likely to shift toward the Singapore dollar market over time given it's the only AAA market in Asia, according to Goldman Sachs. Meanwhile, foreign investors in Australia's government bond market are set to face competition from local pension funds, whose demand for Aussie notes may outpace issuance, according to Bank of America. BLOOMBERG
Straits Times
an hour ago
- Straits Times
Trump says Iran deal would not allow ‘any' uranium enrichment
US President Donald Trump ruled out allowing Iran to enrich uranium under any nuclear deal between the foes. PHOTO: REUTERS Trump says Iran deal would not allow 'any' uranium enrichment WASHINGTON - US President Donald Trump on June 2 ruled out allowing Iran to enrich uranium under any nuclear deal between the foes – as Tehran defended what it said was its 'peaceful' pursuit of fuel for power generation. Uranium enrichment has remained a key point of contention in five rounds of talks since April to ink a new accord to replace the deal with major powers that Mr Trump abandoned during his first term in 2018. 'Under our potential Agreement - WE WILL NOT ALLOW ANY ENRICHMENT OF URANIUM!' Mr Trump said on his Truth Social network after the Axios news outlet said Washington's offer would let Tehran enrich some of the nuclear fuel. Republican Trump also blamed predecessor Joe Biden for the impasse, saying the Democrat 'should have stopped Iran a long time ago from 'enriching.'' Axios said the latest proposal that Washington had sent Tehran on May 31 would allow limited low-level uranium enrichment on Iranian soil, for an amount of time that has yet to be determined. Iran has insisted that Iran has 'nothing to hide' on its nuclear programme. Speaking in Cairo, where he met the UN nuclear watchdog's chief Rafael Grossi, Iran's Foreign Minister Abbas Araghchi said: 'If the goal is to deprive Iran of its peaceful activities, then certainly no agreement will be reached.' The remarks came after Mr Grossi of the International Atomic Energy Agency (IAEA) on June 2 called for more transparency from Iran following a leaked report that showed Tehran had stepped up uranium enrichment. The IAEA report showed that Iran has ramped up production of uranium enriched up to 60 per cent – close to the roughly 90 per cent level needed for atomic weapons. 'There is a need for more transparency – this is very, very clear – in Iran, and nothing will bring us to this confidence (besides) full explanations of a number of activities,' Mr Grossi said ahead of meeting Mr Araghchi. Mr Grossi added that some of the report's findings 'may be uncomfortable for some, and we are... used to being criticised'. Iran has rejected the report, warning it would retaliate if European powers that have threatened to reimpose nuclear sanctions 'exploit' it. 'Some countries are trying to abuse this agency to pave the way for escalation with Iran. I hope that this agency does not fall into this trap,' Mr Araghchi said of the IAEA. Iran meanwhile pushed for the United States to drop sanctions that have crippled its economy as a condition for a nuclear agreement with Mr Trump's administration. Mr Araghchi said on May 31 that he had received 'elements' of the US proposal for a nuclear deal following the five rounds of talks, mediated by Oman. 'With or without a deal' Both Mr Araghchi and Mr Grossi met Egyptian President Abdel Fattah al-Sisi, who praised the US-Iran talks and called for 'de-escalation in order to prevent a slide into a full-fledged regional war'. On June 2, Iranian foreign ministry spokesman Esmaeil Baqaei told a news conference: 'We want to guarantee that the sanctions are effectively lifted.' 'So far, the American side has not wanted to clarify this issue,' he said. The US envoy in the nuclear talks said in May that Trump's administration would oppose any Iranian enrichment. 'An enrichment programme can never exist in the state of Iran ever again. That's our red line. No enrichment,' Mr Steve Witkoff told Breitbart News. Following a phone call with Mr Witkoff the day before about the ongoing nuclear talks, Egyptian Foreign Minister Badr Abdelatty urged a peaceful solution and a nuclear-weapon-free Middle East, saying in a June 2 press conference that 'the region is already experiencing enough problems and crises'. He warned that military confrontation would create 'a state of chaos from which no one will be spared'. Iran has vowed to keep enriching uranium 'with or without a deal' on its nuclear programme. The United States has sent Iran a proposal for a nuclear deal that the White House called 'acceptable' and in Tehran's 'best interest' to accept, US media reported on May 31. The New York Times, citing officials familiar with the diplomatic exchanges, said the proposal calls on Iran to stop all enrichment and suggests creating a regional grouping to produce nuclear power. AFP Join ST's Telegram channel and get the latest breaking news delivered to you.
