PAG Plans $13 Billion Japan Investment

Japan is charting a strategic buildup of a domestic drone industry within its national defense plans. This move aligns with broader regional security shifts in the Asia-Pacific. Japan has allocated specific funding for the 2026 fiscal year to support joint drone operations. The cooperation follows a September 2025 agreement between Australia and Japan. The current project timeline runs from April 2026 to March 2027. The MQ-28 drone is a Boeing-related model. This initiative is reportedly supported by the United States. Japan is strengthening its independent research capabilities for advanced aviation technology, specifically regarding fighter jets. The country may now sell weapons and equipment to nations in conflict zones or at war, provided they follow official permit processes. The shift follows Japan's efforts to bolster autonomous military technology development. PAG intends to invest approximately ¥2 trillion ($13 billion) into Japanese real estate and private equity deals. The investment strategy is slated to occur over the next three to four years.