By Focus and AFP | 2025-05-07

New Zealand is undertaking a sweeping transformation of its defense strategy, committing to nearly double military spending by 2032 and signing its first-ever defense cooperation agreement with the Philippines.

These moves reflect Wellington's growing concern over the increasingly complex security landscape in the Indo-Pacific region, particularly as China becomes more assertive.

Prime Minister Christopher Luxon unveiled the long-anticipated Defense Capability Plan (DCP) on April 7, pledging to raise defense expenditure to 2% of GDP by fiscal year 2032-2033, up from just over 1% currently.

Funding urgency

"Global tensions are increasing rapidly, and New Zealand has stepped up on the world stage, but our current defense spending is simply too low," Luxon said, marking a departure from the nation's traditionally low defense profile.

Defense Minister Judith Collins echoed the urgency. "There is no economic security without national security," she said.

The DCP outlines a comprehensive modernization of the New Zealand Defense Force, including investments in advanced weaponry, cybersecurity, surveillance systems, and next-generation aircraft and helicopters.

"Defense personnel need the right equipment and conditions to do their jobs," Collins said.

A headline item within the plan is the replacement of New Zealand's aging SH-2G(I) Seasprite maritime helicopters. Announced on May 5, the 2 billion NZD ($1.2 billion) procurement for eight new helicopters is one of the country's most expensive defense acquisitions recently.

Collins highlighted the enhanced capabilities these assets will bring.

"The new helicopters will be able to go further and carry larger loads, including weapons, personnel and equipment -- all of which is critical for defense to protect New Zealand and New Zealanders," she said.

'Unwanted' presence

The acquisition is expected to significantly expand the country's naval operational capacity, supporting maritime patrols, disaster relief and joint operations.

The modernization effort emphasizes emerging military technologies such as drones, satellite surveillance and cybersecurity infrastructure, which are crucial for adapting to evolving defense challenges.

New Zealand's commitment to stronger defense capabilities comes as the Pacific region faces an increasingly complex security environment.

While officials avoided naming specific countries, the drivers behind this strategic pivot are clear. The DCP identifies China's assertive pursuit of strategic objectives and growing influence in the Pacific as key factors shaping New Zealand's strategy.

Wellington has previously voiced concerns about Beijing's actions in the South China Sea and its activities in the Pacific islands.

In an interview with 1News in April, Collins acknowledged the complexity of the relationship. "China has been, and is, a very good friend to New Zealand," she said. However, she cited "an increasing presence that is, in many cases, unwanted."

This dual observation highlights New Zealand's delicate balancing act between economic ties and security imperatives.

Strategic accord

Alongside enhancing its own military capabilities, New Zealand is actively strengthening security partnerships.

During Collins' visit to Manila on April 30, officials of the two countries signed their first-ever defense cooperation agreement.

While not a mutual defense treaty, the pact facilitates joint military training, intelligence sharing and maritime security cooperation between the two nations.

The pact is the latest for Manila as it navigates heightened tensions with Beijing and in the South China Sea.

New Zealand's signing of this visiting force pact -- allowing troop deployment on each other's territory -- reflects its broader Southeast Asia engagement and commitment to regional stability amid a perceived "deteriorating" strategic environment.

Wellington views the region as vital for security and trade, particularly given New Zealand's position at the end of global supply chains.

It relies on Southeast Asia for trade stability and as a "bulwark against conflict," Orson Tan, an Asia-Pacific policy analyst, noted in a 2024 article for The Interpreter.

New Zealand 'pulling its weight'

This strategic importance is reflected in Wellington's growing involvement in regional security initiatives, including increased participation in multilateral naval exercises and humanitarian missions with ASEAN nations in recent years.

New Zealand's actions reflect a broader trend of mid-sized powers adapting to a volatile Indo-Pacific through preparedness and partnerships, analysts say.

Collins reinforced this perspective.

"Just because we're small doesn't mean we're insignificant," she said, highlighting New Zealand's intent to play a meaningful role despite its limited size.

This strategic shift signals a deeper commitment to safeguarding national sovereignty while contributing more visibly to regional stability. It demonstrates, as Luxon termed it, that New Zealand intends to "pull its weight" in the region.