TAIPEI (TVBS News) — Taiwan President Lai Ching-te (賴清德) marked his second year in office Wednesday (May 20) by announcing plans to bypass legislative opposition with a new defense spending proposal and a NT$1 trillion (around US$31.6 billion) package for small and medium enterprises, framing his presidency as a bulwark against external threats and domestic political paralysis.
The address comes one day after Taiwan's legislature, Taiwan's parliament, controlled by opposition parties, failed to impeach Lai. The speech also follows the legislature's rejection of portions of his special defense budget, creating a constitutional standoff over military spending as China continues military pressure on the island.
Speaking with a hoarse voice but unwavering resolve during a 45-minute press conference at the Presidential Office — 15 minutes longer than his previous anniversary address and allowing more questions from reporters — Lai outlined three priorities: defending Taiwan's democratic way of life, maintaining peace and stability across the Taiwan Strait, and ensuring economic growth reaches ordinary citizens. The speech coincided with the 30th anniversary of Taiwan's first direct presidential election in 1996, when voters defied Chinese missile tests to cast ballots.
"The government will remedy the situation by submitting an alternative special bill and using supplementary budgets to advance land, sea and air unmanned vehicles, building intelligent and sustainable defense capabilities," Lai said. The president did not provide details on the cost of the alternative defense bill, its legislative timeline or which specific military capabilities, beyond "drones," were affected by the budget impasse.
The president referenced his recent visit to the Hai Kun (海鯤), Taiwan's first domestically built submarine, as evidence of the island's defense self-reliance. The submarine program represents a major achievement given international pressure, particularly from China, that has historically blocked Taiwan's access to submarine technology.
On the economic front, Lai remarked that Taiwan's first-quarter growth rate reached 13.69 percent, the highest in 39 years, with full-year growth projected to exceed 7 percent. He said last year's annual growth was 8.6 percent, with consumer price index at 1.6 percent and per capita GDP surpassing Japan and South Korea.
"I deeply understand that impressive industry performance cannot only stay on spreadsheets," Lai said. "National economic growth is not about letting a few people stand higher, but must make people feel it, let more people stand more steadily."
The president announced he would soon propose the NT$1 trillion plan to accelerate upgrades for small and micro enterprises and traditional industries. The package aims to help businesses adopt digital tools, carbon reduction technology and access international markets. Lai provided no details on funding sources, eligibility criteria or implementation timelines.
Lai's speech emphasized that Taiwan's democratic way of life cannot be determined by external forces. "Taiwan's future cannot be decided by outside forces, nor can it be hijacked by fear, division or short-term interests," he said. "Taiwan's future must be decided by 23 million people together."
The president acknowledged domestic political divisions, with Taiwan's parliament deadlocked over personnel, budgets and legislation due to disagreements between the executive and legislative branches. He called for unity despite political competition, saying "positions can differ, but protecting Taiwan cannot differ."
Vice President Hsiao Bi-khim (蕭美琴) and Presidential Office Secretary-General Pan Men-an (潘孟安) attended the press conference alongside Lai. It was not immediately clear whether opposition legislators from the Kuomintang or Taiwan People's Party would respond to the president's proposals. ◼ (At time of reporting, US$1 equals approximately NT$31.68)