President Lai Ching-te (賴清德) said at the Taipei Neihu Technology Park Development Association year-end banquet on Wednesday that Taiwan’s accumulated economic achievements “must be backed by stronger national defense.” The government will push a special defense budget of NT$1.25 trillion (US$39.5 billion) over eight years to build a defense system, dubbed the “T-Dome.”

The president urged the Legislature to swiftly assign and deliberate on the central government's total budget and the special defense ordinance draft. Taiwan has seen significant economic performance over the past decade, with bank and insurance assets surging and total financial assets nearing NT$130 trillion (US$4.15 trillion). The government will continue to invest in infrastructure to balance development, plans to inject NT$1 trillion (US$31.9 billion) in private funds for public projects, and advance the Asia-Pacific Asset Management Center (AAMC). 

President Lai explained that the government is developing five trusted industries — semiconductors, AI, military, security and surveillance, and next-gen communications — while boosting bio-tech and pharmaceuticals. He said the defense budget “is not only for protecting the country and people, but also for economic development,” combining machine tools, basic industry, and defense industry to upgrade sectors.

Lai noted that the U.S. 2027 defense budget will hit US$1.5 trillion, with nations like Japan, South Korea, the Philippines, and Australia raising theirs – a global trend. The government also advances welfare, like national childcare from 0-6, private university tuition, Long-term Care 3.0, birth subsidies, elderly farmer allowances, and national pension. 

Lai called on the Legislature to act and ensure Taiwan’s safety, economic growth, better care, and greater international recognition.