Taiwan president says record defence spending is investment in peace
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- Taiwan plans a record defence budget of T$1.1225 trillion in 2027, exceeding 3% of GDP, to strengthen self-defence and maintain peace in the Taiwan Strait
- President Lai described the proposed military spending as an investment in peace, citing rising military pressure from China and US calls for Taiwan to boost its defence capabilities
- China has intensified military activity around Taiwan, including daily operations near the island and coastguard patrols off its east coast, which analysts say serve psychological, training, and intelligence purposes
- Taiwan’s Cabinet will formally unveil the 2027 budget on Aug 20, with details on how the record defence funds will be allocated across modernisation efforts
- Opposition parties in Taiwan’s Parliament have delayed past budgets and warn they will not approve unchecked spending, demanding scrutiny over the scale and use of defence funds
Why it matters: Taiwan is materially escalating its military preparedness with a historic budget that crosses the symbolic 3% of GDP threshold, increasing pressure on opposition lawmakers to justify delays while signaling resolve to both Beijing and Washington. The funding enables concrete advances in submarine development and blockade-response drills amid intensifying Chinese operations.
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