Indo-Pacific Monitor No. 57

TOKYO DRONES ON
Japan is increasingly adapting its military to new methods of warfare. Tokyo's latest annual defense white paper, released last month, emphasizes the need to develop domestically produced combat drones for coastal defense, to operate alongside Japan's growing arsenal of long-range missiles. Japan's Acquisition, Technology and Logistics Agency has already selected four drone manufacturers for a rapid development program, and their systems are in advanced testing by the Japanese navy. Major corporations such as Toshiba are also establishing programs and partnerships in the drone industry. (Associated Press, August 5, 2026)

AUSTRALIA DIVERSIFIES ITS AIR DEFENSES
Australia is moving toward a unique hybrid air defense system that integrates a variety of U.S. and indigenous systems and capabilities. During exercise Taipan Strike 2026 in July, an SM-2 missile downed a target drone, controlled by a miniaturized version of Lockheed Martin’s Aegis system and guided by an Australian-made radar. The combination of these systems is unique. Aegis, for example, is a missile defense system used almost exclusively on warships; its land deployment signals Australia's goal of flexibility and interoperability across its air defense platforms. The test also underscores Canberra's efforts to counter the rising threat of long-range ballistic missile capabilities fielded by China and North Korea. (Defense News, July 23, 2026)

DELHI AND DHAKA AT ODDS OVER HASINA
Tensions erupted last month between India and Bangladesh after Bangladesh's ex-Prime Minister and current "fugitive," Sheikh Hasina, took to the air in New Delhi in her first televised address since losing power. Hasina, who fled to India in 2024 during a student-led uprising against her government, was later charged with crimes against humanity and sentenced to death in absentia by Bangladeshi courts. In her address from Indian soil, Yasina signaled her intent to return to Bangladesh regardless of the consequences and repudiated the charges against her as politically motivated and untrue. She also claimed that Bangladesh's new government had violently suppressed her supporters.

The speech served to exacerbate existing tensions between Dhaka and New Delhi over India's decision to provide Hasina with asylum. Bangladesh's foreign ministry expressed outrage at Hasina's "fascist" rhetoric, which it argued undermined Bangladeshi sovereignty. India, for its part, has denied any role in facilitating Yasina's divisive address. (The Guardian, August 6, 2026; BBC, August 5, 2026)

NORTH KOREAN HACKERS INFILTRATE CORPORATE INFRASTRUCTURE
Amazon recently announced that it found a North-Korean linked hacking group was likely responsible for the high-volume compromise of software "building blocks" in an organized cyber campaign dating back to 2025. One of the incidents was already known, but Amazon's report unveiled three others – and a much broader reach for the hacking group than previously assumed. In the attacks, the hackers embedded malicious code into software that, when downloaded by various companies and firms, would allow wide accessibility to intelligence and organizational data. The breaches highlight the range of North Korea's long-term cyber operations. (Defense One, July 29, 2026)

SEOUL PUTS PEACE RAIL BACK ON TRACK
South Korea's Unification Ministry has announced that it will restart construction on a section of the Gyeongwong Line, a railway that eventually could extend into eastern North Korea. The Ministry said that the line could expand access to "peace and ecological tourism" in the Demilitarized Zone and border regions. South Korean President Lee Jae Myung expressed frustration with North Korea's lack of commitment to engage in talks over such projects. Foreign Minister Cho Hyun separately noted that multilateral talks with North Korea, the U.S. and China were made difficult by geopolitical tensions. Nonetheless, he said, South Korea remains committed to renewed construction along with several other proposed peace and humanitarian projects. (Reuters, August 5, 2026)