Taiwan proposes extra $5.8 billion in defence spending for 2026
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Taiwan’s government has made defence modernisation and increased spending a core policy.
PHOTO: REUTERS
- Taiwan's Cabinet proposed an extra T$145.7 billion (S$5.8 billion) defence budget for 2026, including drones and anti-ballistic missile systems like the domestically developed Strong Bow.
- Parliament approved a six-year US$240 billion drone plan and in May added US$25 billion for US weapons, reflecting increased focus on defence modernisation amid Chinese pressure.
- The government aims for defence spending to exceed US$1 trillion in 2027, emphasising urgency in national security and self-reliance, with President Lai rejecting Beijing's sovereignty claims.
AI generated
TAIPEI – Taiwan’s Cabinet on Sept 3 proposed an additional NT$145.7 billion (S$5.8 billion) in defence spending for 2026 for systems, including drones and anti-ballistic missiles.
The government has made defence modernisation and increased spending a core policy given stepped-up military pressure from China, which views the democratically governed island as its own territory.
In May, Taiwan’s opposition-controlled Parliament approved extra defence spending of US$25 billion (S$31.7 billion), about two-thirds of what the government had sought in a special budget, and only for spending on US weapons, rather than also for domestic systems.
In a statement following a weekly meeting, the Cabinet said “there can be no gap in national defence” and plans originally sought under the previous special budget were now being incorporated into 2026’s new supplementary budget.
Systems to be bought will include a medium-tier, anti-tactical ballistic missile system, it said, which Taiwan’s Defence Ministry has previously said is the domestically developed Strong Bow missile.
Spending plans incorporate more than 600 coastal surveillance and reconnaissance drones, over 40,000 coastal attack drones, and the first batch of over 100 small suicide drone boats, it added.
“National security cannot wait, the defence budget cannot wait and defence self-reliance cannot wait either,” the Cabinet said.
In August, Parliament approved a six-year plan to spend US$240 billion on drones, which in principle sets annual spending at US$40 billion, and rejected a competing government plan for US$210 billion.
For 2027, the government has proposed overall defence spending to top US$1 trillion for the first time.
Taiwan, like US allies in Europe and elsewhere, faces calls from Washington to spend more on its own defence, something President Lai Ching-te has enthusiastically embraced.
Lai rejects Beijing’s sovereignty claims, saying only the island’s people can decide their future. REUTERS
