Taipei: The Legislative Yuan has approved a significant budget bill focusing on the procurement of indigenous unmanned vehicles, establishing a spending cap of NT$240 billion (US$7.56 billion) while permitting additional funding pending legislative approval. The Act on Strengthening Defense Autonomy and Developing the Unmanned Vehicles Industry, led by the opposition, passed with a 60-50 vote in the 113-seat Legislature.
According to Focus Taiwan, the act mandates the Ministry of National Defense (MND) to prioritize procuring domestically produced unmanned systems. It requires the central government to allocate NT$40 billion annually over six years from its general budget to procure these vehicles, aiming to enhance national defense and stimulate industrial growth.
The main opposition Kuomintang (KMT) caucus had advocated for funding through annual budgets to accommodate the rapid evolution of drone technologies, allowing phased procurement and preventing obsolescence. The Cabinet's proposal for a NT$210 billion special budget over six years was rejected by the KMT and the Taiwan People's Party (TPP), who collectively hold a legislative majority.
The act defines unmanned vehicles as autonomous or remotely controlled systems operating in various environments, including air, sea, and land. They are intended for use in diverse scenarios such as attacks, reconnaissance, logistics, and electronic warfare.
A rare compromise emerged as the act included coastal attack drones, coastal reconnaissance drones, and small suicide unmanned surface vehicles requested by the MND, which were initially excluded by the KMT and TPP. This addition followed persistent advocacy by Democratic Progressive Party (DPP) lawmakers.
The legislation also emphasizes industrial regulation and development, setting provisions for unmanned vehicle testing sites, indigenous production levels, and cybersecurity compliance. The Ministry of Economic Affairs (MOEA) will oversee the implementation alongside the MND, defining "indigenous" systems and ensuring supply chain security. The MOEA is tasked with establishing test sites and accrediting local manufacturers that meet production and security standards.
A national committee, formed by the Cabinet with members nominated by legislative caucuses, will oversee policies for developing the unmanned vehicle industry. Annual updates on procurement progress and domestic production targets are mandated for the Cabinet and Legislature.
DPP Legislator Chung Chia-pin criticized the establishment of the committee, fearing it could enable Beijing's influence through politically nominated members, potentially leading to information leaks to China.
The MND expressed regret over the rejection of the Cabinet's special budget proposal, noting it could delay acquiring essential combat capabilities. KMT caucus leader Fu Kun-chi emphasized the act's role in solidifying Taiwan's position as a global drone manufacturing hub. Despite the setback, Cabinet spokesperson Michelle Lee affirmed the Cabinet's commitment to planning procurement budgets to swiftly acquire defense capabilities and foster industry technological development.