TAIPEI (Taiwan News) — President Lai Ching-te (賴清德) vowed Friday that Taiwan’s defense budget will reach 5% of GDP by 2030, starting with a 3.32% allocation next year under NATO’s definition.

In a visit to the Navy’s 168th fleet, Lai said the government is increasing investment in advanced weapons and service members’ welfare, per CNA. He added the plan will modernize the military while improving conditions for those serving in uniform.

Lai also said in a Facebook post that he recalled asking Defense Minister Wellington Koo (顧立雄) last year to improve military pay and benefits. This year, the government raised allowances for voluntary service and specialized units, and in July introduced new stipends for critical roles such as air traffic control.

He said the armed forces defend the nation according to the Constitution, and the government must uphold that same principle by supporting personnel. The commitment, Lai stressed, is to improve facilities, welfare, and readiness, rather than focusing on just one area.

The president added the growing defense budget will fund next-generation frigates and new unmanned systems, combining local defense production with foreign procurement. These efforts aim to both modernize combat capabilities and strengthen Taiwan’s defense industry.