Taiwan’s government recently announced a substantial new defence budget of US$40 billion (S$52 million), with plans for significant arms purchases from the United States. This move underscores Taiwan’s commitment to self-defence as it faces escalating military pressures from China. President Lai Ching-te emphasized the importance of this initiative in a Washington Post op-ed, as Taipei seeks to enhance its deterrence capabilities.
Key Features of the New Defence Plan
- Budget Details: The supplementary budget will span from 2026 to 2033 and aims to bolster military strength.
- GDP Investment: Lai expressed a goal to increase defence spending to five per cent of Taiwan’s gross domestic product by 2030.
- Job Creation: The budget is expected to generate 90,000 jobs and contribute T$400 billion (S$16 billion) to Taiwan’s economy.
International Support and Military Procurement
Defence Minister Wellington Koo confirmed that preliminary discussions with the U.S. have already taken place regarding what military equipment Taiwan intends to procure. The Taiwanese government has received crucial details from the U.S. Department of Defence, although specifics remain confidential until official notification is delivered to the U.S. Congress.
The U.S. has historically been Taiwan’s most significant backer, providing military resources despite a lack of formal diplomatic ties. With increased pressure from the U.S. on Taiwan to enhance its defence, this new budget marks a strategic shift in Taiwan’s security policy.
Political Reactions and Challenges Ahead
While the new budget reflects a robust stance against Chinese aggression, reactions in Taiwan have been mixed. The opposition party, the Kuomintang, criticized the announcement for not first consulting the parliament. They argue that substantial borrowing for defence spending may not be fiscally responsible.
Premier Cho Jung-tai urged for legislative support, reinforcing the notion that a strong defence is essential for Taiwan’s sovereignty. The tension with China is ongoing, and despite Lai’s repeated calls for dialogue, Beijing has consistently rebuffed such overtures, labelling his administration as ‘separatist’.
As Taiwan navigates this complex geopolitical landscape, the coming years will be crucial in determining its defence strategy and overall stability.