New Zealand has announced plans to revamp defense procurement rules and create a military technology fund aimed at strengthening the local defense sector, Reuters reported.
Under the new strategy, international suppliers will be required to demonstrate how they will involve local industry in delivering and sustaining defense capabilities.
The initiative also directs the New Zealand Defence Force to explore opportunities for small and local businesses to supply equipment and systems, often as subcontractors to major manufacturers.
While New Zealand’s industrial base includes around 800 suppliers, most major equipment purchases currently come from multinational firms.
In addition, Wellington plans to establish a fund to support advanced military technologies, expected to range between 100 million and 300 million New Zealand dollars ($58 million to $174 million).
“When the world around us is changing at such a pace, we need to change our approach to how we equip our Defence Force, and we need to work in partnership with industry to be better together,” stated New Zealand Defence Minister Judith Collins.
“We have the talent and the will. We now need to build the support and clear the way for innovation,” added Collins.
Boosting Defense
The announcement aligns with Wellington’s broader efforts to update its military strategy, increase defense spending, and boost security.
To modernize the New Zealand Defence Force, the government has outlined the Defence Capability Plan, a 15-year strategy prioritizing key investments over the next four years to maintain readiness and address evolving global security challenges.
In April, the government announced plans to increase defense spending by $5 billion over the next four years and to raise it from 1 percent to over 2 percent of GDP within the next decade.
The plan also emphasizes closer military cooperation with regional ally Australia.
