FX.co ★ New Zealand to Boost Defence Spending, Launch Tech Fund

New Zealand is preparing to substantially boost its defense budget, as Defense Minister Judith Collins has revealed plans for a NZD 9 billion increase in expenditure over the next four years. The goal is to nearly double the defense budget to reach 2% of GDP within the coming eight years. In conjunction with this financial commitment, the government has introduced a new Defense Industry Strategy, featuring updated procurement guidelines. These regulations will mandate that multinational suppliers collaborate with local companies for the provision and upkeep of defense capabilities. To promote innovation, Wellington plans to establish a military technology fund ranging from NZD 100 to 300 million, fostering the development of advanced defense technologies. According to Collins, these initiatives are designed to "redefine local industry partnerships" and bolster New Zealand's ability to meet future strategic challenges, while simultaneously stimulating the domestic industry through increased participation in defense projects.