National defense expenditure is to increase substantially next year, with research and development accounting for more than 3 percent of overall defense spending, which is expected to lead to a major increase in the Chungshan Institute of Science and Technology’s business operations.
Minister of National Defense Yen De-fa (嚴德發), who also serves as the institute’s president, last month said that it could see its business next year exceed NT$50 billion (US$1.63 billion), a source familiar with the institute quoted Yen as saying.
Yen made the remark on Nov. 9 at an event to mark the institute’s 49th anniversary, the source said on condition of anonymity.
Photo: Peter Lo, Taipei Times
National defense expenditure is to increase by NT$18.3 billion next year, including NT$13.9 billion for research and development, which would be more than 3 percent of overall defense spending, marking the attainment of a major policy milestone, Yen was quoted as saying.
The institute’s scale of business has also grown significantly, from about NT$18 billion in 2014 to about NT$40 billion this year, the source said.
National defense spending is entering a peak period, with new indigenous military jet and warship programs set to begin next year, the source said.
As many of the armed forces’ weapons systems and equipment near the end of their life cycle or run out of suppliers for spare parts, developing a self-reliant national defense industry is particularly important, the source quoted Yen as saying.
The institute’s efforts are part of a government-wide effort to encourage innovation across industries and form links necessary for the nation to prosper, the source said.
The institute also provides a platform to cultivate technological expertise, the source said, adding that it hired 638 people this year, including 38 with doctorates and 272 with master’s degrees, with graduates of public colleges and universities accounting for 79.5 percent of new employees in the past three years.
As Beijing continues to modernize the Chinese People’s Liberation Army, budget increases are a crucial step toward enhancing the nation’s military strength and its ability to deter adversaries, the source said.
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