Taiwan is set to increase its defence spending to a record level in 2027, with President Lai Ching-te describing the move as an investment in peace and regional stability.
The proposed defence budget is expected to reach T$1.1225 trillion ($35.2 billion), surpassing 3% of Taiwan’s gross domestic product and exceeding T$1 trillion for the first time.
President Lai said the increased spending demonstrates Taiwan’s determination to strengthen its self-defence capabilities and maintain peace and stability across the Taiwan Strait.
“Investing in defence is investing in peace,” Lai said, stressing that Taiwan would continue building a stronger military force in response to growing security challenges.
The move comes amid increasing military and political pressure from China, which claims Taiwan as part of its territory. Beijing has stepped up military activities around the island, including operations in waters and skies near Taiwan.
Taiwan has also intensified military modernisation efforts, including plans to develop domestically built submarines and strengthen its ability to respond to potential threats.
The announcement follows Taiwan’s annual Han Kuang military exercises, which included simulations of various conflict scenarios, including efforts to counter a possible Chinese maritime blockade.
China has criticised Taiwan’s military drills, describing them as provocative and accusing Taipei of increasing tensions in the region.
The proposed defence spending will still face scrutiny from Taiwan’s opposition-controlled parliament, where opposition parties have warned against giving the government unrestricted funding.