Securing New Zealand’s Future: Defence, industry, and resilience
Partnering with industry and building domestic capability critical to New Zealand’s defence, writes Minister of Defence Hon Chris Penk MP.
As we move swiftly through this year, it is both clear and striking how rapidly New Zealand’s strategic environment is evolving. Our recent announcements and investment reflect our increased commitment to defence as we move to modernise our capability.
On that note, I first want to take an opportunity to again recognise and thank the amazing men and women who form our Defence Force, for their contribution to New Zealand. It is also important to recognise the eagerness of New Zealand’s industry to support our country’s defence.
The assumptions that once underpinned our security down here in the South Pacific – our distance, predictability, and stable supply chains – continue to be under increasing strain.
With our region becoming more contested, we are seeing increased disruption to global shipping, growing competition in the Indo-Pacific, and increasing pressure on supply chains.
These all point to a simple reality: we must be more deliberate in how we secure both our national and our economic security. Those two priorities are inseparable – defence capability and economic resilience go hand in hand, and the partnerships we build with industry will be central to both.
“New Zealand’s industry has deep expertise across advanced manufacturing. That includes in digital technologies, and emerging capabilities like autonomous and uncrewed systems.“
A more complex strategic environment
Our exports help form the powerhouse and the backbone of our small but successful country, and being a trading nation situated where we are, our prosperity depends on secure sea lines of communication and access to our global markets. As we have experienced, disruptions, whether geopolitical or economic, are felt quickly and directly at home.
For decades, New Zealanders have taken some assurance from our geographic distance, but recent global events have shown that distance is no longer a guarantee of security.
This is why maritime security remains a central focus of our investment. Budget 2026 includes $880 million in operating funding and $700 million in capital funding for New Zealand Defence Force activities, including projects identified in the Defence Capability Plan (DCP). These investments support critical fleet maintenance, renewal of maritime capability, and the introduction of uncrewed systems to enhance surveillance and awareness.
As we move forward, these changes will help to ensure New Zealand maintains a credible, interoperable force, one which is able to work alongside partners and protect our interests at home and abroad.
Building resilience and investing through the Defence Capability Plan
Defence plays a key role in strengthening our resilience. A more robust domestic industrial base, supported by closer collaboration with Defence, will ensure we can sustain capability, respond to crises, and surge when required.
Equally important is our engagement with partners across the Indo-Pacific.
At the Shangri-La Dialogue in Singapore in May, I met with defence counterparts from across the region and a consistent theme in those discussions was the shared assessment of our increasingly complex strategic environment, tied with the corresponding need to invest more deliberately in defence capability.
Our Defence Capability Plan was a central part of those conversations. It signalled clearly that New Zealand is prepared to play its part, working alongside partners to uphold shared interests and regional stability.
New Zealand’s Defence Capability Plan sets out our pathway to a modern, combat-capable New Zealand Defence Force.
Since its release, the Government has committed $5.8 billion in total investment in Defence capability and people, representing a significant uplift in investment that also reflects the challenges we face.
Needless to say, delivery is not just about acquiring platforms and upgrading systems. Modernising our defence force also means ensuring those investments generate long-term value, operationally, economically, and strategically. That includes building stronger domestic capability, investing in people, and ensuring we can sustain and support our force over time.
Defence as an economic enabler
Defence is already a major contributor to the New Zealand economy, and its potential is even greater.
Currently, more than 80 percent of NZDF spending is directed into the domestic economy. That supports businesses, jobs, and communities right across New Zealand.
Increasingly, we are viewing defence investment not just as a cost, but as a driver of economic activity, innovation, and regional growth.
A recent example is the Homes for Families programme, which I had the privilege of opening at Linton Military Camp. This $7.8 million development is delivering modern, high-quality housing for Defence personnel and their families. This of course supports local jobs, contractors, and suppliers, bringing a direct economic boost to the region.
To build on this when it comes to delivering broader benefits nationally, we are taking a more deliberate approach to industry engagement.
Through Budget 2026, we are investing in strengthened engagement capability, including the establishment of a Technology Accelerator programme from July 2026. The initiative will connect Defence directly with New Zealand businesses to solve operational challenges and accelerate innovation. Our aim is to bring that innovation into the Defence capability lifecycle more consistently, from earlier on, and with clearer pathways to scale.
New Zealand’s industry has deep expertise across advanced manufacturing. That includes in digital technologies, and emerging capabilities like autonomous and uncrewed systems. We are seeing this in firms developing drone and simulation technologies and in the growing number of businesses supporting Defence operations.
They are great examples of how local innovation can support modern defence capability, and it is partnerships like these that can support Defence while also creating skilled jobs, strengthening high-value industries, and building resilience in our national technology base.
Outside of defence, this is about resilience as much as it is about growth – ensuring New Zealand retains critical expertise and capability that we depend on.
A stronger future through partnership
Ultimately, the challenges we face will require a coordinated effort across government, industry, and our international partners. The Defence Capability Plan provides the direction and our investment through ongoing Budgets will continue to create tangible and meaningful action from that. But it is partnership – particularly with industry – that will help determine our success.
If we get this right, we will do more than strengthen New Zealand’s security. We will help build a more innovative, resilient, and prosperous nation – one that is better prepared for the challenges ahead.
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