By Greg Torode
SINGAPORE, May 29 (Reuters) - New Zealand is aiming for "smooth and steady" rises in defence expenditure to meet its target of spending 2% of GDP on the military within 8 years, its new defence minister said on Friday.
Chris Penk said there might be peaks and troughs amid the acquisition of new weapons and platforms but the overall aim was to nearly double New Zealand's military spending as it sought to boost defence capabilities.
"As much as possible, it's our intention to have a smooth and steady upward trajectory to 2 percent," Penk told Reuters in Singapore ahead of the opening of the Shangri-La Dialogue, Asia's largest defence meeting.
Penk became defence minister in April, replacing Judith Collins who retired after a long political career.
Penk's comments come after announcements last week that the government had allocated NZ$1.58 billion ($924.62 million) in new defence funding in its 2026 budget as it upgrades its forces.
New Zealand is planning two new drones for intelligence and surveillance in the South-West Pacific as well as for polar deployment. Wellington is also looking for long-term replacements for its two ageing Anzac-class frigates and the multi-role support ship HMNZS Canterbury.
Critical maintenance work on its surface fleet is also being prepared for.
The increases are being planned along with boosts to education and health care spending in an otherwise austere budget from Prime Minister Chris Luxon's conservative government announced this week.
The government forecast a budget deficit of NZ$15.06 billion for the fiscal year ending June 30, 2026, tighter than a deficit of NZ$16.93 billion in its half-year update in December.
New Zealand is a treaty ally of Australian forces and is gradually deploying increasingly across East Asia in support of Western militaries and their partners amid China's rapid military rise.
"I think the word inter-operability is an important one for us, and I would add inter-changeability, certainly with regard to Australia, who's our nearest neighbour, but also a formal ally," Penk said.
"I think it's important that we are very visibly present...in the Asian region, and we do things in conjunction with the likes of Korea and Japan," he said, adding it was important to maintain and exercise freedoms of navigation.
(Reporting By Greg Torode in Singapore; additional reporting by Lucy Cramer in Wellington; Editing by Raju Gopalakrishnan)
