TAIPEI (Taiwan News) — Taiwan’s domestic submarine program will be severely delayed if a budget freeze proposed by an opposition party is approved, the Navy said on Monday.
The submarine prototype, Narwhal, is proceeding on schedule and undergoing intensive tests. The Navy said a budget freeze could delay the timeline for subsequent submarines, degrade the cross-strait combat power imbalance, and send wrong signals to the international community, CNA reported. It would also lead to reduced export permits from foreign governments and the loss of shipbuilding personnel, it added.
KMT legislators reportedly considered freezing NT$1.8 billion (US$54.90 million) from the submarine program and releasing it after the prototype passed its sea trials. However, the defense ministry said it never approved this proposal.
The Navy said NT$2 billion was allocated in fiscal year 2025 for equipment procurement contracts, shipyard agreements, and hiring foreign technical advisors. As legislators continue to deliberate over the national budget, defense spending will likely be cut by 3%.
Submarines are critical asymmetric assets for protecting sea lines of communication and maintaining Taiwan Strait security, the Navy said. They also demonstrate Taiwan's determination to strengthen its defense.
The Navy called for the original budget to be restored. This would facilitate continued assistance from international allies and build credible deterrence to ensure peace and stability in the Taiwan Strait, it said.
The Narwhal is currently undergoing Harbor Acceptance Tests and is scheduled to begin Sea Acceptance Tests in April. Delivery to the Navy is expected by November.