Taiwan president says record defence spending is investment in peace

Addressing a meeting about next year's budget, Lai confirmed reports in official media earlier this month that 2027's overall defence budget will exceed T$1 trillion for the first time, reaching T$1.1225 trillion.

That will exceed 3% of gross domestic product, Lai said, according to a transcript of the remarks released by his office.

This "demonstrates Taiwan's determination to strengthen its self-defence capabilities", he added.

"Investing in defence is investing in peace; we will continue to build a more solid defence force to maintain peace and stability in the Taiwan Strait and the region," Lai said.

Taiwan's government has made military modernisation a key policy platform and has repeatedly pledged to spend more on its defences, including developing made-in-Taiwan submarines, given the rising threat from China.