By The Straits Times | Created at 2026-08-17 07:32:07 | Updated at 2026-08-18 06:45:40
23 hours ago
TAIPEI – Taiwan is determined to strengthen its defences as an investment in peace, President Lai Ching-te said on Aug 17, confirming that proposed defence spending for 2027 will rise by 16 per cent and exceed NT$1 trillion (S$40 billion) for the first time.
Taiwan’s cabinet will formally unveil the 2027 budget on Aug 20, including a breakdown of where defence spending will go.
The announcement comes as China, which views democratically governed Taiwan as its own territory, has ramped up military and political pressure over the past few years to assert its claims, which Taipei strongly rejects.
But Taiwan also faces calls from Washington to spend more on its own defence, mirroring US pressure on Europe, something Lai has enthusiastically embraced.
Addressing a meeting about the 2027 budget, Lai confirmed reports in official media earlier in August that 2027’s overall defence budget will exceed NT$1 trillion for the first time, reaching NT$1.1225 trillion.
That will exceed 3 per cent of gross domestic product, Lai said, according to a transcript of the remarks released by his office.
This “demonstrates Taiwan’s determination to strengthen its self-defence capabilities”, he added.
“Investing in defence is investing in peace; we will continue to build a more solid defence force to maintain peace and stability in the Taiwan Strait and the region,” Lai said.
Taiwan’s government has made military modernisation a key policy platform and has repeatedly pledged to spend more on its defences, including developing made-in-Taiwan submarines, given the rising threat from China.
China’s military operates almost daily around Taiwan, and holds periodic war games, the last in late December.
But Lai also faces a challenge from Taiwan’s opposition-dominated Parliament, which only passed the 2026 budget late on Aug 14 after months of delays.
The two main opposition parties say they will not write blank cheques for the government and have a duty to scrutinise spending plans and cut waste.
Lai on Aug 14 called on Parliament to review the budget on the principles of “professionalism, reasonableness, and proportionality”. REUTERS
