Taiwan can afford the defense budget, Lai saysDEFENSE BOOST: Taiwan will use AI to establish a real-time defense system, and the budget would also aim for economic and industrial development, Lai saidBy Ben Blanchard / ReutersTaiwan can well afford a NT$1.25 trillion (US$39.16 billion) special defense budget given its booming economy, President William Lai (賴清德) said yesterday, citing US emphasis on collective burden-sharing. “With Taiwan’s economic growth, we can absolutely afford it,” he said of the eight-year special defense spending plan. The administration of US President Donald Trump has pushed its allies to boost defense spending, something Lai has enthusiastically embraced. Taiwan would use AI to establish a real-time defense system while promoting its defense industry, Lai said. “In other words, our defense budget is not only a budget for national defense, but also a budget for economic and industrial development,” he said.

Source: Taipei Times March 14, 2026 16:09 UTC