Taiwan approves special funds for ships, drones to deter China
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A drone model is displayed at Ocean Aero during a sea drone event in Yilan, Taiwan on June 17.
PHOTO: REUTERS
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TAIPEI – Taiwan has approved special funding to strengthen “national resilience” that includes money for more ships and drones, underscoring a push by President Lai Ching-te to better counter China’s aggression.
The NT$550 billion (S$23.3 billion) approved on Sept 11 includes NT$150 billion for boosting the self-ruled archipelago’s defences, the Cabinet said in a statement on Sept 11, listing items like new patrol vessels and drones. Funds would also go towards industries hit by US tariffs and cash handouts.
The spending would help “increase our combat readiness”, Defence Minister Wellington Koo said at a briefing in Taipei, “while also strengthening our reserve force training and one-year mandatory service training”.
In 2024, Taiwan extended its compulsory service to one year from four months.
Mr Lai has made preparing Taiwan for a conflict with China a hallmark of his year-plus in power, including by holding its most expansive military drills ever in July. Beijing sees the democracy of 23 million people as part of its territory, to be brought under its control by force if necessary.
The US is Taiwan’s main military backer, and as with Nato members, President Donald Trump has encouraged Taiwan to do more to defend itself. In August, Mr Lai said military spending is expected to reach 5 per cent of gross domestic product by 2030. His government earlier proposed military spending of NT$949.5 billion for 2026, a 23 per cent increase from the equivalent outlay in 2024.
Taiwan is a very sensitive issue in ties between the world’s two economic superpowers, along with trade ties and tech sharing. In a call with his US counterpart Pete Hegseth on Sept 9, Chinese Defence Minister Dong Jun warned that any attempt to support Taiwan’s independence would fail.
The funding that the Cabinet announced on Sept 11 also includes NT$236 billion for cash handouts to the public. The overall spending will be funded by previous budget surpluses and by selling some debt.
The plans must be reviewed by lawmakers before taking effect. Taiwan’s opposition holds a slim majority in the legislature, meaning its passage could face challenges. Bloomberg
