New Zealand’s defense minister announced Friday that the country plans to gradually increase military expenditure to reach a target of 2% of GDP over the next eight years, representing nearly double current spending levels.
Defense Minister Chris Penk outlined the strategy during remarks in Singapore before the start of the Shangri-La Dialogue, Asia’s premier defense conference. He emphasized the government’s goal of maintaining consistent growth in military funding.
“As much as possible, it’s our intention to have a smooth and steady upward trajectory to 2 percent,” Penk stated during his interview with Reuters.
Penk acknowledged that spending patterns may fluctuate during periods when the country purchases major military equipment and platforms, but stressed the overall objective remains doubling New Zealand’s defense budget to strengthen military capabilities.
The defense minister assumed his role in April, taking over from Judith Collins following her retirement after an extensive political career.
These remarks follow the government’s announcement last week of NZ$1.58 billion ($924.62 million) in additional defense allocations for the 2026 budget as part of military modernization efforts.
The planned investments include acquiring two new surveillance and intelligence drones designed for operations in the South-West Pacific region and polar environments. New Zealand is also seeking long-term replacements for its aging pair of Anzac-class frigates and the multi-role vessel HMNZS Canterbury.
Essential maintenance work for the surface fleet is also in preparation phases.
Speaking during a panel at Saturday’s dialogue, Penk revealed that Wellington continues assessing British and Japanese alternatives for the frigate replacement program.
The defense spending increases are part of a broader budget that includes enhanced funding for education and healthcare, despite Prime Minister Chris Luxon’s conservative government implementing an otherwise restrictive fiscal approach this week.
Government projections show a budget deficit of NZ$15.06 billion for the fiscal year concluding June 30, 2026, representing an improvement from the NZ$16.93 billion deficit forecast in December’s mid-year review.
As a treaty partner with Australian forces, New Zealand has been expanding its presence throughout East Asia alongside Western military forces and their allies in response to China’s expanding military capabilities.
“I think the word inter-operability is an important one for us, and I would add inter-changeability, certainly with regard to Australia, who’s our nearest neighbour, but also a formal ally,” Penk explained.
“I think it’s important that we are very visibly present…in the Asian region, and we do things in conjunction with the likes of Korea and Japan,” he continued, emphasizing the importance of maintaining and exercising navigation freedoms.
