Taiwan's leader says government to propose record defence spending for 2027

Taiwan's government will propose record defence spending for 2027, President Lai Ching-te said Monday, as the island democracy faces growing military pressure from China.

"Next year's total defence budget -- including both the annual budget and the special budget -- will exceed NT$1 trillion for the first time, reaching NT$1.1225 trillion ($35.2 billion)," Lai said in a statement issued by the Presidential Office.

Defence spending will account for more than three percent of GDP, "demonstrating Taiwan's resolve to strengthen its self-defense capabilities", Lai said.

"Investing in national defence is an investment in peace," Lai said.

"We will continue to build a more robust defence force to maintain peace and stability in the Taiwan Strait and the region."

China claims Taiwan is part of its territory and has threatened to use force to annex the island of 23 million people.