TAIPEI (TVBS News) — Taiwan will increase its defense spending beyond 3% of GDP in the coming year as part of efforts to strengthen the island's military readiness, President Lai Ching-te (賴清德) announced on Tuesday (Aug. 5). The president revealed this significant budget commitment while delivering the opening address at the Ketagalan Forum: 2025 Indo-Pacific Security Dialogue (凱達格蘭論壇：2025印太安全對話), an influential regional security conference that underscored Taiwan's crucial position in maintaining Indo-Pacific stability amid growing tensions.
Speaking in English to the international audience, President Lai outlined three core themes shaping the high-level dialogue: comprehensive Indo-Pacific security frameworks, whole-of-society defense approaches among democratic nations, and strategic diplomatic alignments. The president emphasized how these priorities directly complement Taiwan's national development strategy. He expressed his desire to build stronger consensus among democratic allies to advance regional security and worldwide economic prosperity.
President Lai characterized the past year as particularly volatile, referencing Russia's continued aggression in Ukraine and intensifying Middle East hostilities. He cited China's increasingly assertive military maneuvers throughout the Taiwan Strait, East China Sea, and South China Sea as serious challenges to international order. Lai emphasized Taiwan's strategically vital location within the first island chain—the line of Pacific archipelagos crucial for regional defense strategy—describing it as indispensable for maintaining Indo-Pacific stability.
The president detailed Taiwan's comprehensive approach to national resilience, highlighting the integration of the annual Han Kuang military exercises (漢光演習), Taiwan's largest military drills, with Urban Resilience Exercises (城鎮韌性演習). This merger reflects Taiwan's expanding focus on whole-of-society defense capabilities with broader citizen involvement. Lai reaffirmed his administration's dedication to military modernization, economic fortification, and technological advancement in critical sectors including semiconductor manufacturing and artificial intelligence.
