For many leaders, digital transformation has long been something to tackle when time allowed, after the next funding round, after the next product launch, after the next operational fire was put out.

Marcin Pichur, Docuware, Regional Vice President Sales, UK/IRE, Spain, Italy, Poland, explains that the UK and Ireland now setting firm timelines for mandatory e‑invoicing, the era of “digital later” has officially ended.

In the UK, April 2029 has become the defining milestone for finance and IT teams. In Ireland, the deadlines arrive even sooner. Large organisations must comply by late 2028, and every business -regardless of size – must be capable of receiving structured e‑invoices by November of that year. For businesses, this means the countdown has already begun. Even if you only issue a handful of invoices a month, your systems will still need to handle structured data, not PDFs that merely mimic digital progress.

What’s often overlooked is that this shift is not simply a compliance exercise. This is a rare opportunity to modernise finance operations, eliminate manual friction and build a more resilient, data‑driven business. Those who act early will gain a meaningful operational advantage. Those who wait will find themselves scrambling to comply while competitors quietly accelerate.

Europe has already proven the model works

The UK and Ireland are not stepping into uncharted territory. Across Europe, e‑invoicing has already transformed how businesses operate. Italy’s Sistema di Interscambio (SdI) has shown how real‑time reporting can dramatically reduce VAT fraud while forcing a step‑change in business digitisation. France, Spain and Poland are following suit, each using structured invoicing to modernise B2B trade and improve tax transparency.

The results are consistent: real‑time visibility, fewer errors, faster payments and a more predictable cash‑flow environment. For SMEs, where cash flow is often the difference between growth and survival, this level of visibility is truly nothing short of transformative.

One misconception persists, however – the belief that emailing a PDF is digital enough. A PDF is not an e‑invoice. It is digital paper. It still requires manual keying, error‑prone OCR and endless reconciliation work. True e‑invoicing uses structured data (typically XML following the EN 16931 standard) that flows directly from one system to another without human intervention. This is the leap UK and Irish businesses must prepare for, and one that exposes the fragility of many finance processes.

IDP: the missing link that makes e‑invoicing viable

This is precisely where Intelligent Document Processing (IDP) becomes indispensable. If e‑invoicing is the destination, IDP is the engine that can get you there without chaos.

Most SMEs do not operate with pristine data, perfectly aligned supplier records or a single unified ERP. They operate with a blend of accounting tools, spreadsheets, legacy systems and manual workarounds. IDP provides the orchestration layer that makes structured invoicing viable in the real world, not just in policy documents.

Modern IDP platforms can extract, validate and match data across the likes of invoices, purchase orders, goods‑received notes and statements. They can identify discrepancies before they become problems, flag exceptions automatically and create touchless workflows that eliminate manual checking. Crucially, IDP validates data before an invoice leaves your system, ensuring that VAT numbers, line items and PO references are correct. This prevents the rejection loops that drain resources and delay payments, a hidden cost that many underestimate until it becomes a crisis.

For businesses with lean finance teams, IDP is a realistic way to scale without adding headcount. It protects your business from the administrative burden of compliance while laying the foundations for automation that goes far beyond invoicing.

Avoiding the “integration tax”

The challenge for many SMEs is what some call the “integration tax”. Large enterprises have transformation budgets and IT teams. Start‑ups have agility. SMEs often have neither. They are caught between ambition and legacy systems, between the desire to modernise and the reality of limited resources.

Waiting until 2028 or 2029 will only make this worse. A last‑minute scramble leads to rushed implementations, bolt‑on tools that don’t integrate and processes that meet the mandate but do nothing to improve the business. Early adopters, on the other hand, can use the mandate as a driving force to fix long‑standing inefficiencies. They can clean supplier data, eliminate spreadsheet‑driven processes, standardise approvals and build a finance stack that supports growth rather than constraining it. This is where SMEs can turn compliance into a competitive advantage, by treating the mandate not as an obligation but as an opportunity.

For SMEs trading across borders, the complexity increases. Each country has its own tax authority, schema updates and technical requirements. Trying to manage this with multiple tools creates inconsistency and unnecessary risk. The smarter approach is to adopt a single e‑invoicing gateway that manages multi‑country compliance and shields core systems from constant regulatory change, giving businesses the stability to focus on growth rather than chasing tax updates – an outcome an e‑invoicing service like DocuWare’s is designed to deliver.

E‑invoicing is only the beginning

Once structured invoice data flows into your business in real time, the benefits extend far beyond compliance. Cash‑flow forecasting becomes more accurate. Month‑end closes become faster. Supplier relationships improve. Audit trails strengthen. Financial reporting becomes more reliable. And, perhaps most importantly, you can gain the data foundation required for AI‑driven analytics and automation. Finance shifts from a reactive function to a strategic one.

For UK and Irish SMEs, the e‑invoicing mandate is a once‑in‑a‑generation chance to modernise. Those who start now will reduce manual workload, improve cash flow, strengthen compliance and build scalable finance operations long before the mandate arrives. Those who wait will face a rushed, expensive, compliance‑only project that delivers none of the upside.

The shift from digital paper to structured data is already underway. The only decision left is whether your business uses this moment to get ahead or simply to catch up.

At DocuWare, we anticipate regulatory shifts long before they become urgent, giving you the power to act while others scramble. Speak with our experts today and claim your competitive advantage.

OMAHA, Neb. — Greg Abel will step onto the stage at the CHI Health Center on Saturday, May 2, 2026, for his first Berkshire Hathaway annual shareholder meeting as CEO, marking the end of Warren Buffett’s six-decade dominance over the event and ushering in a new era for one of the world’s most iconic conglomerates.

The gathering, often called the “Woodstock of Capitalism,” will draw tens of thousands of shareholders to Omaha for what promises to be a historic transition. Buffett, 95, stepped down as CEO at the end of 2025 but remains chairman of the board. Abel, 63, took over as chief executive on Jan. 1, 2026, after years of careful grooming by Buffett as his chosen successor.

This year’s meeting will feature a restructured format. Abel will deliver a business update, followed by two separate Q&A sessions. The first pairs him with Ajit Jain, vice chairman for insurance operations. The second includes Katie Farmer, CEO of BNSF Railway, and Adam Johnson, who leads consumer products, services and retailing. The traditional open-microphone shareholder questions remain, supplemented by queries selected by CNBC’s Becky Quick.

Abel’s first shareholder letter, released in March, emphasized continuity while acknowledging the challenge of following Buffett. “I am honored by our board’s decision to appoint me CEO of Berkshire and humbled to succeed Warren,” he wrote. The letter highlighted Berkshire’s decentralized culture, long-term focus and commitment to quality businesses.

Shareholders expect Abel to address several pressing topics. Key questions include Berkshire’s capital allocation strategy with its record cash pile, potential acquisitions, succession planning beyond Abel, and the performance of major holdings such as Apple, Occidental Petroleum and the insurance operations.

The meeting comes at a pivotal time for Berkshire. The company reported strong operating results in 2025, with insurance underwriting profits and growth in its non-insurance businesses. However, investors will closely watch Abel’s approach to deploying the massive cash reserve and whether Berkshire will pursue larger deals after years of relative caution.

Buffett is expected to attend but will not host the Q&A. His presence will add emotional weight to the event, as shareholders reflect on his legendary tenure. The annual meeting has long served as both a business update and a celebration of Buffett’s folksy wisdom and investment philosophy.

Preparations in Omaha are well underway. Shareholder badges featuring the tagline “The Legacy Continues” show Buffett and Abel side by side. Hotels are booked solid, and local businesses are preparing for the annual influx of visitors. The event remains free for shareholders, though tickets are required and limited.

Analysts and long-time Berkshire watchers view Abel’s debut as a critical test. He must demonstrate command of Berkshire’s complex operations while reassuring investors that the company’s culture of autonomy, patience and value investing will endure. Abel has spent decades at Berkshire, most recently overseeing the non-insurance businesses, giving him deep institutional knowledge.

The format changes signal a shift toward a more operational focus. Bringing division leaders like Farmer and Johnson onstage highlights Berkshire’s diverse portfolio and distributes the spotlight. This approach may become the new normal, reducing reliance on a single charismatic figure.

For shareholders, the meeting offers more than business updates. It serves as a pilgrimage for value investors, with exhibits from Berkshire subsidiaries including See’s Candies, GEICO and BNSF. The weekend also features smaller events, panels and networking opportunities throughout Omaha.

Abel has emphasized continuity in public statements. In his shareholder letter, he stressed Berkshire’s decentralized model, where subsidiary managers run their businesses with minimal interference from headquarters. This hands-off philosophy has been central to Berkshire’s success and is expected to remain intact.

Yet subtle changes may emerge. Observers anticipate a more structured approach to capital allocation and possibly greater emphasis on technology and sustainability. Abel’s background in energy and utilities could influence future investments as Berkshire navigates the energy transition.

The 2026 meeting will also feature the formal election of directors and advisory votes on executive compensation and frequency of such votes. Proxy materials were mailed in March, with voting available online or by mail.

As anticipation builds, CNBC will provide live coverage starting at 9:15 a.m. ET on May 2. The event typically runs from morning until early afternoon, followed by shopping at the exhibit hall.

Greg Abel’s first annual meeting represents both continuity and evolution for Berkshire Hathaway. While Buffett’s shadow will loom large, Abel has the opportunity to define his leadership style before the world’s most dedicated investor audience. How he handles questions, articulates strategy and balances tradition with forward momentum will set the tone for his tenure.

For Berkshire shareholders, the weekend offers a chance to celebrate the company’s remarkable history while looking ahead to its next chapter. As the “Woodstock of Capitalism” convenes once more, all eyes will be on the new CEO taking center stage in Omaha.

Billionaire business tycoon Elon Musk indicated last year that he would donate to support Rep. Thomas Massie’s, R-Ky., re-election bid — but Massie told Fox News Digital on Tuesday that, as far as he is aware, Musk never donated to his campaign.

The congressman emphasized that he still holds Musk in high regard.

“Elon’s done more for America than any other entrepreneur-inventor this century. I think he found it’s easier to land rockets backwards, provide internet to every inch of the planet, and get cars to drive themselves than it is to fix a broken Washington, D.C., and I don’t blame him a bit for stepping away from this mess,” Massie wrote to Fox News Digital on Tuesday.

“Most of my colleagues, and the guy I’m running against, are just not serious about cutting the waste, fraud, and abuse in government,” he continued.

SNUBBED BY TRUMP, GOP CANDIDATES FIGHTING FOR RE-ELECTION ACT LIKE THEY HAVE HIS BACKING ANYWAY

Left: Elon Musk during the US-Saudi Investment Forum at the Kennedy Center in Washington, D.C., on Wednesday, Nov. 19, 2025. Right: Rep. Thomas Massie prepares to testify during the Senate Homeland Security and Governmental Affairs Committee Second A (Stefani Reynolds/Bloomberg via Getty Images | Luke Johnson/Getty Images / Getty Images)

“To my knowledge, he has not donated to my campaign,” Massie noted of Musk. “If he’s donated to a separate superPAC, I’m unaware of that as well. I want to reiterate though that I still have massive respect for him and no animosity whatsoever.”

On June 30, 2025, former Rep. Justin Amash urged Musk to support Massie, writing in a post on X, “Please support @RepThomasMassie. The establishment is working to primary him because he’s a genuine fiscal conservative and opposes the Big, Bloated Scam.”

“I will,” Musk replied.

TECH TITANS ELON MUSK AND SAM ALTMAN HEAD TO COURT IN TRIAL OVER OPENAI: WHAT TO KNOW

Sen. Rand Paul, center, takes a brief break from the floor of the U.S. Senate to pose for a photo with Rep. Justin Amash, left, and Rep. Thomas Massie, right, at the U.S. Capitol Feb. 8, 2018, in Washington, D.C. (Win McNamee/Getty Images / Getty Images)

Then Musk shared a post in which someone had written, “I donated again to @RepThomasMassie’s re-election campaign. Who’s next?”

“Me,” Musk wrote when sharing the post on July 1, 2025.

Massie, who has served in the House since late 2012, is facing former Navy SEAL Ed Gallrein in the Republican primary in Kentucky’s 4th Congressional District. 

ELON MUSK REPORTEDLY BEGINS FUNDING REPUBLICANS FOR 2026 MIDTERMS

Former U.S. Navy SEAL Ed Gallrein speaks as President Donald Trump looks on during their visit to Verst Logistics in Hebron, Kentucky, on March 11, 2026. (Jim WATSON / AFP via Getty Images / Getty Images)

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Gallrein is backed by President Donald Trump, a vociferous Massie critic.

Cardiff-based Elmatic has been acquired by NIBE Industrier AB.

One of the UK’s oldest manufacturers of industrial electric heating elements, Cardiff-based Elmatic, has been Swedish corporate giant NIBE Industrier AB.

Founded in 1949, Elmatic (Cardiff) Ltd has operated as a family-run business dedicated to producing custom-built heating solutions for diverse industries.

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NIBE Industrier AB brings more than 70 years of international industry leadership, originating in Markaryd, Sweden, and expanding to become a global group with a focus on sustainable, energy-efficient heating, climate and control solutions.

John Skalitzky, former owner of Elmatic (Cardiff) Ltd, “On behalf of my family and myself, we are reassured by the knowledge that Elmatic’s future will continue under the leadership of NIBE’s group of companies. I would like to thank the exceptional team of employees, who will continue their work in very capable hands.”

Following the acquisition, the value of which has not been disclosed, Elmatic will continue to operate with the same management team,

To support the transition and strengthen strategic alignment within the NIBE Element business area, Simon Ellam, managing director of Backer Heatrod and Heat Trace , will take on a chairman role supporting Elmatic’s leadership team. His extensive industry expertise and experience within NIBE Element’s UK operations will help guide Elmatic through its next chapter of growth.

Mr Ellam said “It’s clear that industrial heating technology has been at the heart of Elmatic’s strategy from the start and combining this core strength with both our UK and group capabilities will only go to strengthen the industrial heating solutions we can provide. John took the business on from his father and has continued to innovate from both a business and technology perspective ever since. I’m excited to learn from the team and to help guide Elmatic in the coming years.”

Cardiff-based Gambit Corporate Finance acted as lead advisor to the shareholders of Elmatic on initiating, negotiating, structuring and project managing the transaction. The Gambit team comprised Frank Holmes (partner), Cen Thomas (director), Sean David (executive) and Leo Crawford (analyst).

Mr Skalitzky added, “I would like to thank the team at Gambit for their role in advising us throughout the transaction. From the inception of the process to completion, their commercial experience and guidance was invaluable and they took a “sleeves-rolled up” approach to supporting us every step of the way.”

Mr Thomas, director at Gambit, said: “Elmatic is a great example of a leading industrial business with a strong family heritage and its acquisition by NIBE provides a strong platform for its future growth. We are delighted to have advised the shareholders of Elmatic with this landmark transaction.”

Geldards provided legal advice to the shareholders and its team was led by Alex Butler, Mina Dimitrova (corporate) and Henry Bright (commercial property)

It would be inconsistent to encourage Welsh businesses to embrace AI without doing the same ourselves says CEO of the Development Bank of Wales Giles Thorley

Artificial intelligence (AI) is rarely out of the headlines. Depending on who you listen to, it is either the defining opportunity of our time or a disruptive force we are only beginning to understand. The reality, as ever, sits somewhere in between.

What is clear is that AI is no longer a distant concept or a niche technology. It is already shaping how businesses operate, how decisions are made and how new ideas come to market.

The question for Wales is not whether AI will have an impact, but how we make that impact work for our economy, our businesses and our communities.

From our vantage point at the Development Bank of Wales, we are seeing that shift happen in real time.

The leading Large Language Model (LLM) providers are leapfrogging each other with extraordinary speed and frankly startling progress in capability. Innovation is accelerating – with AI driving it.

READ MORE: The South Wales compound semiconductor cluster targeting 6,000 jobs by 2030READ MORE: The verdict on Plaid Cymru’s plans for the Welsh economy

One of the most encouraging trends we see is the growing number of Welsh businesses using AI as part of their core proposition.

These are not abstract ideas or speculative concepts. They are practical applications. These are companies using data, automation and machine learning to solve real-world problems. In sectors as diverse as energy, life sciences, fintech and advanced manufacturing, founders are building products and services that would have been far harder to develop even a few years ago.

AI, in that sense, is acting as an accelerator. It is helping businesses move faster from concept to commercialisation, test ideas more quickly and operate at a scale that would previously have required far greater resource.

Wales has always had strong foundations in innovation, from industrial heritage to academic research and emerging technology clusters. AI adds another layer to that capability.

But it is important to be clear-eyed. Not every business with “AI” in its pitch deck is investable, and the fundamentals still matter. At the Development Bank of Wales, we assess every opportunity on its individual merit; this includes the strength of the team, the clarity of the market need, and the path to sustainable growth.

AI can enhance a proposition. It cannot replace one. Productivity matters just as much as innovation.

What investors seek in an AI proposition

Just as importantly, investors are paying closer attention to the practicalities: cost, delivery and risk. AI can introduce new ongoing costs (such as token costs, software licenses, cloud storage and specialist skills), and it can create new responsibilities around security, privacy and quality control.

The most investable teams can explain the business case clearly, show how the technology will be used safely with customer data, and set out sensible checks and governance from day one, particularly in sectors such as finance, healthcare and the public sector.

Used well, AI can take on routine, time-consuming tasks that sit behind almost every business. Administrative processes, data handling, reporting, customer queries, all areas where time is often stretched and margins are tight.

The benefit is not simply about doing things faster. It is about freeing up capacity for the work that actually drives value: judgement, creativity, sales, marketing and building relationships.

For a small business owner, that might mean spending less time on paperwork and more time with customers. For a growing company, it could mean scaling operations without immediately increasing headcount. For established firms, it offers a way to improve efficiency and remain competitive in changing markets.

In a nation like Wales, where many businesses are SMEs operating with finite resource, those gains matter.

We are already seeing examples of Welsh firms using AI in practical, grounded ways — not as a headline feature, but as a tool embedded into everyday operations. That quiet adoption may ultimately prove more transformative than the headline-grabbing breakthroughs.

The challenge, as with finance, is often not awareness but confidence. Knowing where to start, which tools to trust and how to integrate them safely into existing processes can be a barrier. That is where support, guidance and shared learning become important.

However, there are risks with AI too. Ideas can become infinitely copyable. Simple short-cuts using AI will ultimately be used by everyone. Where, historically, a business might have had barriers to entry that protected their market niche, those barriers may not provide the same level of protection and may be breached much more easily. Complacent businesses will struggle.

The technology is moving so fast that there is an attitude among some that there is no need to rush to jump in. “Let’s wait to see who /what comes out as a winner” is the mantra of some. Unfortunately, however, few businesses can afford to wait. Just ask one of the LLMs a detailed question about your own business and be amazed at the result.

Putting AI to work at the Development Bank of Wales

It would be inconsistent to encourage Welsh businesses to embrace AI without doing the same ourselves.

Within the Development Bank of Wales, our approach is deliberately calm and practical. We are not looking for technology for its own sake. We are focused on how AI can strengthen the way our teams work and add value to the roles they perform every day.

That starts with making sure colleagues have access to the right, approved tools, supported by clear guidance and guardrails. Confidence matters. People need to understand not only what AI can do, but how to use it responsibly and effectively.

As a result, every colleague has been put through initial training and encouraged to use AI in their daily tasks. Within the business we have already identified 30 AI champions positioned throughout the business, given enhanced training and more AI tools to see what they can deliver but also to support their colleagues.

Our initial objective is for AI to act as a personal productivity enabler across the organisation – to help reduce administrative and repetitive tasks, freeing up time for the areas where we believe that human judgement is essential. That is particularly relevant in a development bank. Our role is not simply transactional. It relies on insight, experience and local understanding. If AI can help us spend more time on those elements, then it is doing its job.

It is also possible that this type of human judgement such as assessing businesses on the ground, understanding risk, building relationships and supporting customers will become increasingly rare as AI influences other investors and lenders.

We are also seeing potential to use AI to support better decision-making, not by replacing human input, but by enhancing it. Better use of data, clearer analysis and more efficient processes all contribute to stronger outcomes for the businesses we support.

A practical opportunity available now

There is a tendency, with technologies like AI, to frame them as something that will transform the economy at some point in the future.

In reality, that transformation is already under way, but it is happening incrementally, through thousands of small, practical changes rather than a single defining moment. But, perhaps unusually, it is you and your colleagues that have far greater control – ideas that required expert input, process, time and cost are available at your fingertips.

For Wales, the opportunity is clear. We have innovative businesses already using AI to build new solutions. We have a broad base of companies that can benefit from improved productivity. And we have institutions, including ourselves, that can help create the conditions for that adoption to happen responsibly and at pace.

As ever, this is not about one organisation or one sector. It is about an ecosystem: businesses, funders, educators and policymakers working together to build confidence and capability.

AI will not solve every challenge facing the Welsh economy. But used well, it can help us do more with the strengths we already have. Not being used at all risks businesses being left behind by a market that will be accelerating away faster than ever.

The more challenging research analysis on the impact of AI presents a bleak picture of a dramatic reduction in personnel in many roles, replaced by an algorithm. A more aspirational analysis is that the algorithm replaces the mundane and allows colleagues to increase their focus on adding value – it is this model that we are seeking to achieve for our customers.

Wales has never lacked ideas or ambition. The task now is to apply the tools available to us – including AI – in a way that turns that ambition into sustained, practical growth.

• Giles Thorley is chief executive of the Development Bank of Wales

Shares dropped to a 13-year low after costs warning

Housebuilder Taylor Wimpey has warned that escalating costs are filtering through its supply chain as the Middle East conflict drives energy prices upwards.

It’s the latest property developer to face headwinds from a mix of softer house prices, hesitant buyers and mounting construction costs.

Ahead of its annual general meeting on Tuesday, Taylor Wimpey informed investors that build cost inflation is “now expected to be low to mid-single digit for 2026”, with cost pressures and surcharges “starting to come through from our supply chain”. The firm had previously projected build cost inflation in the low-single digits.

The update came as the housebuilder reported a net private sales rate of 0.74 per outlet each week for the year to 26 April, down from 0.77 a year earlier.

Meanwhile, Taylor Wimpey also posted a total order book valued at £2.23 billion, down from £2.33 billion year-on-year. The group pointed to “resilient” customer demand but acknowledged it has also experienced “some underlying price pressure”, with pricing across its order book declining 1% year-on-year.

Last month, the business said earnings were set to fall in 2026 amid the challenging property market. Jennie Daly, chief executive, said: “Sales in the year to date have been steady and our teams continue to work extremely hard to support customers through their homebuying journeys against ongoing affordability challenges and an increasingly uncertain macro backdrop.

“We are committed to delivering high-quality homes and driving our assets and continue to see good progress on planning and outlet openings whilst maintaining strict operational discipline.

“With highly experienced teams, a high-quality landbank and a healthy balance sheet, we remain focused on delivering growth over the medium term and value for all our stakeholders.”

Dan Coatsworth, head of markets at AJ Bell, said: “Taylor Wimpey’s update implies a small step back in terms of sales and pricing.

“It is watching inflation closely as there is a risk that materials to build a home become a lot pricier – which is not good news when Taylor Wimpey’s home selling prices are in retreat.

“It’s no wonder investors are displeased with the update as it suggests harder times ahead.”

Shares in the FTSE 250 company dipped in early trading as a consequence of the update, falling to their lowest point in some 13 years.

To find all the planning applications, traffic diversions, road layout changes, alcohol licence applications and more in your community, visit the Public Notices Portal.

By Dr. Matthew Pajares-Yngson, Filipino Dominican diplomat and a Caribbean Asean Council envoy.

On 18 April, Australia finalised its acquisition of 11 Mogami-class frigates from Japan in a $10 billion deal which Defence Minister Richard Marles called fundamental for the Royal Australian Navy.

The frigates, the first three of which will be built in Japan, and the remaining eight in Western Australia, will significantly bolster Canberra’s operational reach and maritime security.

The announcement was soon followed by Prime Minister Takaichi’s sweeping reforms Japan’s arms export rules. Lethal weapons are now available for export, subject to case-by-case approval by the National Security Council. Previously, exports had been limited to five non-lethal categories.

Australia’s major naval purchase, and Japan’s defence export rule change, are emblematic of a change in posture by both countries – one motivated by the growing and relentless threats to a Free and Open Indo-Pacific (FOIP).

FOIP is a concept, envisioned in Tokyo, that seeks to uphold international order based on stability, the rule of law, and freedom of navigation comes under grave threat.

It is in this context that deepened cooperation between Australia and Japan has become essential. Threats to the Indo-Pacific are driven by wider conflict in the Middle East, but also by dangers much closer to home: China and North Korea.

Just last month, in a clear demonstration of its intent to destabilise the region, North Korea launched ten ballistic missiles capable of carrying weapons of mass destruction. In April, it fired another ballistic missile with a range of up to 700 kilometres.

Most worrying is the persistent threat that an aggressive Beijing poses. Last year, China conducted live fire drills near the Australian seaboard and Chinese fighter jets dropped flares near one of Australia’s maritime patrol planes.

Prime Minister Anthony Albanese expressed concern over the flare incident, while Defence Minister Marles has warned that maintaining FOIP is becoming increasingly challenging due to China’s large-scale military buildup.

Targeting Tokyo, Beijing recklessly locked on to Japanese fighter jets last year and has leveraged its economic might to reduce Japan’s access to rare earths and dual-use goods.

Of further concern is that China is expanding its preparations for potential conflict. It is currently conducting extensive seabed surveys across the Pacific, Indian, and Arctic Oceans, collecting data essential for submarine warfare against the United States and its allies. Beijing also continues to carry out joint naval transits and bomber flights with Russia.

The whole Indo-Pacific is firmly in China’s sights, from Australia to Japan.

It is no wonder that in this deeply concerning regional context, Japan’s promotion of FOIP is viewed positively in Australia, while China’s assertiveness has generated deep mistrust.

In the Lowy Institute’s 2025 ‘feelings thermometer’, Beijing’s favourability rating is now ’37’ out of 100, whereas Japan climbed to ’76’, making Tokyo the most trusted Asian power in Australia.

This alignment in public sentiment has translated into deeper collaboration.

Bilateral and multilateral exercises have demonstrated growing cooperation and shared resolve. Last September’s Exercise Bushido Guardian emphasised ‘fifth-generation integration’ and brought together over 700 personnel from the air forces of the US, Japan, and Australia. A naval exercise last month between Australia and Japan, Nichi Gou Trident, enhanced communications and interoperability.

Tokyo and Canberra are also signalling an active and engaged approach to Washington and New Delhi, the other two members of the Quad.

A web of partnerships across the region with likeminded partners is imperative to contain China’s hostile regional ambitions.

Alongside cooperation, both Australia and Japan are taking security matters into their own hands.

Canberra’s defence expenditure is projected to grow from $44.6 billion in 2026 to $56.2 billion by 2030 and Treasurer Jim Chalmers is working on a package containing billions more in spending for the May 2026 budget.

The procurement of 11 Mogami-class frigates from Japan, the investment of $3.9 billion in nuclear-powered submarine shipbuilding facilities, and the securing of GMLRS production capacity represent important steps in the right direction.

These developments place Australia in a good position to draw the often-forgotten Melanesian and Polynesian regions into the Western strategic sphere. As the area China threatens increases, the significance of cooperation between Japan and Australia across all areas of the Indo-Pacific grows more important.

However, Canberra must do more. Should Australia be attacked by a foreign military, as almost half of Australians think will happen within five years, current progress is not enough.

With a strong electoral mandate, the Takaichi administration has made security its top priority, securing a record defence budget of over ¥9 trillion ($82.1 billion) for 2026.

Japan has begun procuring stand-off missiles from the United States and Norway while also equipping its destroyers with Tomahawk launch capabilities and deploying domestically produced new guided munitions.

On top of increased defence spending, the government plans to revise the “Three Strategic Documents” this year, with the aim of further strengthening the capabilities of the Self-Defence Forces.

These are extraordinary times. Not since World War II has the global security landscape been so unstable.

To counter Beijing’s hegemonic intentions, Australia must improve its own military capabilities and advance cooperation with likeminded regional powers.

Considering Japan’s industrial capability, willingness to cooperate, and the Australian public’s favourable view of the country, Tokyo is an ideal partner for the job.