TAIPEI, 17 August, 2026 (Ghufran) – Taiwan President Lai Ching-te said the country is determined to strengthen its defence capabilities and plans record military spending next year, describing the proposed budget as an investment in peace. Taiwan’s 2027 defence budget is expected to exceed T$1 trillion for the first time. According to Lai, defence spending in 2027 will reach T$1.1225 trillion, equivalent to more than 3% of the country’s gross domestic product (GDP). He said the increase demonstrates Taiwan’s determination to strengthen its self-defence capabilities amid growing military and political pressure from China, while Washington has also urged Taipei to increase defence spending. Lai said investing in defence was investing in peace and stressed that Taiwan would continue building a stronger defence force to maintain peace and stability across the Taiwan Strait and the wider region. The Taiwanese cabinet is scheduled to unveil the detailed budget on Thursday, including the allocation and use of defence funds.