Taiwan plans defence budget increase to over 3% of GDP
Taipei has ramped up investment in military equipment and weapons over the past decade in response to intensifying pressure from China, which claims the democratic island as part of its territory and has threatened to seize it by force.
Premier Cho Jung-tai said the latest hike was 'another concrete demonstration to the world and the people of Taiwan of our resolve and ability to safeguard national sovereignty and security'.
The proposed spending needs to be approved by the opposition-controlled parliament before it can take effect.
Taiwan's cabinet has allocated NT$949.5 billion (US$31.1 billion), or 3.32 percent of GDP, for defence spending next year, the government's budget documents show.
'Our total defence budget is calculated using NATO's model and standards, including the budget for... the coast guard,' Cho told reporters.
Cho gave the figure 3.23 percent during the news conference but the cabinet later confirmed to AFP that 3.32 percent is the correct number.
Cho said overall expenditure for 2026 was budgeted at just over NT$3 trillion -- up NT$110 billion or around 3.8 percent from 2025.
President Lai Ching-te has previously vowed to increase defence spending to more than three percent of GDP as Washington pressured the island and other governments around the world to spend more on their own security.
The announcement comes as Taipei seeks to strike an agreement with US President Donald Trump's administration for a lower tariff on Taiwanese shipments to the United States.
Earlier this month, Trump imposed a temporary 20 percent tariff on Taiwan's imports as part of his global trade war.
The two sides are still trying to reach an agreement.
The China-friendly Kuomintang party which controls the island's legislature with the help of the Taiwan People's Party, slashed the Lai government's 2025 budget.
It had planned to increase defence spending to a record NT$647 billion, or around 2.5 percent of GDP. However, some items were cut or frozen.
The KMT has defended the reductions, saying the party was seeking to stop wasteful spending.
Trump has previously suggested Taiwan should pay the United States for its protection and accused the island of stealing the US semiconductor industry.
While Taiwan has a homegrown defence industry and has been upgrading its equipment, it would be outgunned in a conflict with China and relies heavily on US arms sales to bolster its security capabilities.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
30 minutes ago
- The Star
Weaponising the feed: Inside Kenya's online war against activists
NAIROBI: When software developer Rose Njeri created a pro-democracy tool to help Kenyans object to a contested finance bill, she was thrown in jail and targeted by an online smear campaign. Njeri is the latest victim of a sophisticated online apparatus that targets and harasses government critics in Kenya, where rights groups warn of an escalating crackdown on public dissent. "I got to sleep in a cell for four days," the 35-year-old told AFP. "I was just making tools that aligned with my beliefs." The east African country has seen a wave of deadly protests against President William Ruto and police brutality that have left dozens dead and thousands of businesses destroyed. Although Njeri's arrest in May sparked outrage, prompting a wave of solidarity under the hashtag #FreeRoseNjeri on X, she also became the subject of foreign-agent conspiracies. Around the same time, two human rights campaigners, including Kenya's Boniface Mwangi – a long-standing critic of Ruto – were detained in Tanzania, where they were attending the treason trial of opposition leader Tundu Lissu. Held incommunicado for several days before being dumped at the border, both activists alleged torture and sexual assault by security forces. Tanzanian President Samia Suluhu Hassan, who prior to Mwangi's release spoke of "ill-mannered activists" interfering in the country's affairs, seemingly received praise online, with the hashtag #AsanteSamia (#ThankyouSamia) amassing roughly 1.5 million views. Some of these posts falsely claimed that Njeri had trained in "ethical hacking" in Estonia and linked her to a Russian cyber-operations group. Others alleged Mwangi had been re-abducted and falsely reported that videos of his assault had leaked. Another hashtag, #DogsOfWar, accused the deported activists of being part of a "digitally coordinated, foreign-funded disruption" financed by American philanthropist George Soros. These were two of seven hashtags identified by AFP's fact-checking team ahead of deadly protests in June 2025, when coordinated online disinformation campaigns targeting activists surged on X. Such campaigns manipulate hashtags to manufacture the illusion of widespread public sentiment. "There is evidence of coordinated amplification due to the multiple posts being published at the same time or within seconds of each other," Moffin Njoroge, data analyst and disinformation expert at Code for Africa, told AFP. 'Automated behaviour' Dissidents initially held the upper hand on social media during Kenya's landmark 2024 anti-tax protests, which culminated in parliament being breached on June 25 and resulted in the deaths of dozens during clashes with police. But they now face growing opposition online. In April, following the BBC documentary Blood Parliament, which exposed police brutality during last year's protests, the hashtags #BBCForChaos and #ToxicActivists garnered 5.3 million and 365,000 estimated views. Posts framed activists, including Mwangi, as "paid puppets" pushing "donor-funded anarchy". Right before the anniversary of the June 25, 2024, protests, the hashtags #PaidActivism, #CommercialActivismKE and #ShunFakeActivismKE recycled claims that activists were exploiting the youth-led movement "for cameras and grants". Njoroge noted "automated behaviour", with some accounts posting "over 100 posts under a hashtag in a day". For instance, the accounts @essy_2128 and @tonymkenya7 posted 226 and 140 posts respectively under #AsanteSamia, while the account @darsil254 published 104 times with #ShunFakeActivismKE. According to Njoroge, some of the "patient zero" accounts for these narratives have a history of pushing "pro-government hashtags". One such account, @MurimiJeff_, which started #ToxicActivists, previously published hashtags such #BoldRuto backing the Finance Bill 2025. Past Kenyan disinformation campaigns have relied on fake graphics with false quotes, altered newspaper covers and fabricated articles attributed to local media outlets. Now, AI-generated propaganda videos and doctored news bulletins are part of the arsenal. For instance, #DogsOfwar contained a fake video of CNN's Fareed Zakaria commenting on the "foreign-funded" activists deported from Tanzania, while #AsanteSamia pushed a clip mimicking a major Kenyan media outlet's anchor reporting on Mwangi's alleged re-abduction. 'Authoritarian playbook' Drawing parallels from his past research on Kenyan state-sponsored disinformation, Alphonce Shiundu, Africa Check's Kenya editor, believes these campaigns are state-affiliated. "You just have to look at the political rhetoric, the statements by senior government officials and the online chatter. There's always a confluence," Shiundu told AFP. True to this, the digital offensive coincided with government warnings against "coup attempts", the filing of terror charges against protesters and a proposed bill requiring mandatory social media user ID verification. Authorities also allocated a US$1.15mil spyware budget to the Directorate of Criminal Investigations to boost social media surveillance. Irungu Houghton, Amnesty International Kenya executive director, described these tactics as the "oldest game in the authoritarian playbook". "Disinformation is designed to discredit human rights defenders and deflect the concerns they raise. Characterising activists as 'paid' erodes their authenticity and calling them 'anarchists' frames them as destructive," Houghton told AFP. For Shiundu the "paid" narrative is a "low-hanging trope". "The tactic here is to create a bogeyman as being behind the organic campaigns for accountable and transparent governance. It becomes easier to attack activists as threats to national interest and blunt the high-handed government response to legitimate protests," he said. 'I do not feel free' Shiundu noted that tracking disinformation networks has become "harder and more expensive" due to platform changes and the defunding of fact-checking and media literacy. With elections approaching, Njoroge anticipates more "pro-government campaigns targeting opposition politicians and activists". Mwangi has previously defended activism as a "holy calling done out of love", dismissing the "paid activist" narrative as "government propaganda". For Njeri, too, the costs are personal. "I have been getting followed by people who I can only suspect are state operatives. I do not feel free," she said. Still, she soldiers on. "Why is it that they want me silent? What are they so afraid of? Let me continue until Kenya is free from this current tyrannical system," she said. – AFP
New Straits Times
an hour ago
- New Straits Times
Trump weighs using US$2bil in Chips Act funding for critical minerals
WASHINGTON: The Trump administration is considering a plan to reallocate at least US$2 billion from the Chips Act to fund critical minerals projects and boost Commerce Secretary Howard Lutnick's influence over the strategic sector, two sources familiar with the matter told Reuters. The proposed move would take from funds already allocated by Congress for semiconductor research and chip factory construction, avoiding a fresh spending request as it seeks to reduce US dependence on China for critical minerals used widely in the electronics and defence industries. Boosting Lutnick's role over critical minerals financing would also help centralise the administration's approach to the sector, a push sought by White House officials after the rollout of the Pentagon investment in rare earths company MP Materials last month sparked questions about the US government's minerals strategy, one source said. The White House did not respond to requests for comment. Pentagon officials were not immediately available to comment. MP Materials declined to comment. The Commerce Department oversees the US$52.70 billion Chips Act, formally known as the Chips and Science Act. The Act, signed into law by then-President Joe Biden in 2022, has provided funding so far for research while also seeking to lure chip production away from Asia and boost American domestic semiconductor production. But since taking office in January, Trump has moved to change the Chips Act – legislation he has called "a horrible, horrible thing" that amounts to a giveaway to companies – largely by renegotiating grants to chipmakers. Repurposing some funds for mining-related projects would align in part with the spirit of the Chips Act as the semiconductor industry requires abundant supplies of germanium, gallium and other critical minerals over which China has tightened its market control, said the sources, who are not permitted to speak publicly about the deliberations. "The administration is creatively trying to find ways to fund the critical minerals sector," said the first source. The plans are under discussion and could change, the sources added. Mining companies themselves could benefit, but also processing and recycling firms. Most of the minerals considered critical by the US government are not processed inside the country. Kent Masters, CEO of North Carolina-based Albemarle, the world's largest producer of lithium for rechargeable batteries, told Reuters last month that the company's stalled plans to build a US lithium refinery are "difficult now without some type of government support or partnership. " It was not immediately clear if the Trump administration aimed to use the funds for grants or equity stakes in mining companies, but Lutnick aims to "get the US$2 billion out the door" as soon as possible, the first source said, adding that the administration aims to find other funds to reallocate in the near future. A former US official said the Biden administration considered using Chips Act grants for rare earths but decided it was uneconomical, required many environmental exemptions and was best left for the Department of Energy to handle. The administration is also looking to use Chips Act-related funding to take equity stakes in Intel and other chipmakers in exchange for cash grants, Reuters reported on Tuesday. Trump moved quickly to expand US critical minerals production since taking office in January by signing executive orders to boost deep-sea mining and domestic projects. On Tuesday he met with the CEOs of Rio Tinto and BHP at the White House despite the ongoing negotiations with European leaders over Russia's invasion of Ukraine, a move aimed at underscoring his support for US mining. The Chips Act deliberations come after the Energy Department last week proposed US$1 billion in spending for some critical minerals projects, with funds tied to the 2021 Bipartisan Infrastructure Law. LUTNICK The White House aims to give Lutnick a greater role over funding decisions for critical minerals by giving him oversight of the decision-making process within the administration, the sources said. The Pentagon's multibillion-dollar investment in MP Materials and its move to extend a price support mechanism – a deal negotiated by Deputy Defence Secretary Steve Feinberg – was seen by White House Chief of Staff Susie Wiles as uncoordinated, as it sparked confusion over whether Washington would guarantee a price floor for all miners and forced the administration to clarify that it does not intend for MP to have a rare earths monopoly, the two sources said. Much of the funding for MP's deal – including Washington's equity stake, loans and purchase agreements – still needs to be allocated by Congress. Two weeks after the Pentagon announced its MP investment, administration officials rushed to meet at the White House with rare earths firms and their customers to underscore broad support for the entire sector, Reuters reported. Lutnick will now help coordinate the administration's funding decisions, taking the lead from the Pentagon and other agencies, the sources said. Lutnick ran brokerage firm Cantor Fitzgerald before he joined Trump's cabinet. Cantor is a large shareholder in Critical Metals Corp, which Reuters reported in June is under consideration for a loan from the US Export-Import Bank.
Borneo Post
an hour ago
- Borneo Post
Thailand's ex-PM Thaksin faces verdict in royal insult case
The exact details of his release are not clear, but Thaksin may be subject to monitoring and restrictions on his right to travel. – AFP photo BANGKOK (Aug 22): Thailand's former prime minister Thaksin Shinawatra will learn his fate on Friday in a royal insult case that could see him jailed, as the political dynasty he founded falters after two decades of dominating Thai politics. The 76-year-old faces up to 15 years in prison if the Bangkok court finds him guilty of breaching Thailand's strict lese-majeste laws that criminalise almost any criticism of King Maha Vajiralongkorn and his family. The verdict, expected from 10:00 am (0300 GMT), comes a week before another court rules whether Thaksin's daughter, Paetongtarn Shinawatra, will be thrown out of office as prime minister. If both verdicts go against them, it would be a watershed for Thai politics, spelling the end of the family's time in high office after a 20-year period that has seen three Shinawatra prime ministers. Thaksin's royal defamation case stems from remarks he made in an interview with South Korean media in 2015, relating to the 2014 military coup that overthrew his sister Yingluck. AFP is not able to report Thaksin's comments in detail because the lese-majeste law is so strict that doing so could in itself constitute a criminal offence. – Years of tussle – Thaksin, who testified in his own defence last month, has been the defining figure of Thai politics for a quarter of a century. The country has been roiled by a succession of coups, street protests and court orders as Thaksin and his followers tussled for power with the traditional pro-royalist, pro-military elite that sees him as corrupt, nepotistic and a threat to Thailand's traditional social order. Twice elected prime minister in the early 2000s, Thaksin fled Thailand and lived in self-imposed exile for 15 years after he was ousted in a military coup, finally returning to the kingdom in August 2023. He landed in Bangkok on the same day his family's Pheu Thai party took office at the head of a coalition government backed by their conservative former enemies, fuelling suspicions a backroom deal had been struck. On arrival, Thaksin was immediately sentenced to eight years in prison on graft and abuse of power charges dating back to his time in office. But instead of going to jail, he was whisked to a private room at a police hospital because of health problems. Days later, the king cut his sentence to one year, and in February 2024, he was freed as part of an early release scheme for elderly prisoners. His handling has led to another legal case, set to conclude on September 9, arguing that because he never served time in a jail cell, he was not eligible for early release. – Rise in prosecutions – Prosecutions for lese-majeste, known as 112 in Thailand for its section in the criminal code, have increased sharply since anti-government protests in 2020, some of which openly criticised the monarchy. Thai Lawyers for Human Rights, a group providing legal services in many of the cases, says that more than 280 people have been prosecuted under section 112 in the last five years. The law says anyone who 'defames, insults or threatens' the king, queen, heir or regent can face up to 15 years in prison. Rights groups and critics say the law is now interpreted so broadly as to stifle dissent and legitimate debate. — AFP lese-majeste law Thaksin Shinawatra
