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Taiwan hikes defence spending to 3.32% of GDP, but it may not be enough to satisfy Trump

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Taiwan’s proposed defence spending for the 2026 fiscal year exceeds the 3 per cent mark for the first time since 2009.

Taiwan’s proposed defence spending for the 2026 fiscal year exceeds the 3 per cent mark for the first time since 2009.

PHOTO: REUTERS

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  • Taiwan proposes a NT$949.5 billion (S$40.1 billion) defence budget for 2026, a 23% increase, signalling its commitment to security amid rising China threats.
  • The proposed budget, at 3.32% of GDP, is a step towards meeting US expectations, though analysts note Trump wants between 5 and 10%.
  • The budget still faces legislative review and potential cuts, which experts warn could send the "wrong signal" to the US regarding Taiwan's defence seriousness.

AI generated

Taiwan’s plan to raise defence spending to 3.32 per cent of its gross domestic product (GDP) sends a strong signal of the island’s self-defence commitments, but the figure is unlikely to be enough to appease US President Donald Trump, analysts said. 

Washington has repeatedly

called on Taipei to boost its defence spending

amid concerns that the island is too complacent about its security in the face of rising threats from China, which claims Taiwan as its own territory.

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