Japan's current intelligence system is fragmented, with police, defence and foreign affairs departments all gathering information but not always sharing it across agencies. A new expert panel, convened by the Prime Minister, has been tasked with creating a long-term intelligence strategy.
Panel member Osawa Jun, a senior research fellow at the Nakasone Peace Institute, told the ABC the old system had failed to ensure that the nation as a whole carried out intelligence gathering and analysis in a properly coordinated manner.
Already this year, the government has established a new overarching security council headed by the prime minister, along with a National Intelligence Bureau. The next step is to set up an independent foreign intelligence agency.
"If we are to possess intelligence capabilities truly on a par with those of the US or the [United Kingdom], it will be necessary to gather intelligence abroad," Mr Osawa said. "Conceptually, this would be akin to the world of the CIA or Britain's 007."
Prime Minister Takaichi raised concerns about the unauthorised leakage of cutting-edge technology involving foreign intelligence agents, cyber attacks on the public and private sectors, and disinformation campaigns aimed at manipulating public opinion.
The intelligence reforms come amid a broader expansion of Japan's defence capabilities. However, the effort faces challenges including a cultural aversion to intelligence gathering within some parts of government and public concerns about secrecy and an increase in government surveillance powers. The government has yet to detail oversight mechanisms for the proposed agency.