Taipei, Taiwan - Taiwan's government is set to propose record defense spending for 2027, President Lai Ching-te announced on Monday, as the island nation faces growing pressure from the US and China.

Taipei's announcement comes as governments around the world boost defense spending in the face of intensifying conflicts, and growing concern about US commitment to the Asia-Pacific region.

"Next year's total defense budget – including both the annual budget and the special budget – will exceed NT$1 trillion ($31.4 billion) for the first time, reaching NT$1.1225 trillion ($35.2 billion)," Lai said in a statement issued by the Presidential Office.

Defense spending will account for more than three percent of GDP, "demonstrating Taiwan's resolve to strengthen its self-defense capabilities," Lai said. "Investing in national defense is an investment in peace."

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"We will continue to build a more robust defense force to maintain peace and stability in the Taiwan Strait and the region."

Taiwan has been boosting defense spending for years and acquiring smaller and more nimble weaponry, including drones, to enable its military to wage asymmetric warfare against China and counter a potential invasion.

Under intense US pressure to cough up more on security, Lai's government has vowed to increase defense spending to 5% of GDP by 2030.

But Lai's government has been at loggerheads with Taiwan's opposition parties, which have a majority in parliament, over how much to spend on boosting the island's defense capabilities.

The main opposition party Kuomintang and the Taiwan People's Party passed a $25 billion special defense budget in May, slashing a third of the spending sought by Lai.

The opposition stripped out around $15 billion that the government had wanted to use for domestic drone procurement and other efforts to boost defenses.

Lawmakers are now considering rival proposals for drone investment worth billions of dollars that could be passed as early as this week.