Defence Minister Chris Penk holds the line on defence spending, pushes for dialogue

Sunday, 31 May 2026

SINGAPORE: Defence Minister Chris Penk has kicked questions about increasing New Zealand’s spend on defence to a future government, saying his focus is on lifting it to 2% of GDP.

New Zealand’s defence investment was in the spotlight at the Shangri-La Dialogue in Singapore on Saturday morning, after US Secretary of War Pete Hegseth was asked if New Zealand was doing enough.

“I appreciate the question … if I’m being honest though, 2% is not enough and so 2% is free loading, but I don't have anything against New Zealand,” Hegseth told the defence summit.

Penk - one month into the job - was sitting in the room - surrounded by hundreds of his counterparts, military heads and industry leaders.

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He front-footed his response on a panel shortly afterwards, telling the crowd, “it seems to me that we are poised to play an even greater part in this region and throughout the globe, but I would emphasise that historically New Zealand has played its part strongly”.

New Zealand’s defence spending is on track to reach 2% of GDP by 2032/33, largely due to some looming big ticket purchases like new frigates.

Hegseth said the US administration demanded its friends and allies spend 3.5% of GDP on defence in his speech, heaping praise on Australia for “stepping up”.

“Together, we are expanding the rotational presence of US forces and collaborating to ensure our defence industrial base build and sustain weapons required for a high-end fight.”

Hegseth predictably criticised European allies for “hollowing out” their militaries and said he was “optimistic” America’s Pacific allies would “step up, and step up for real” to respond to strategic competition in the region.

“We don't need more conferences, we need more combat power. I'm sorry to say this here, less Shangri-La, more ships, more subs.”

The Post asked Penk if 3.5% of GDP was feasible for New Zealand.

“It may or may not be at some point in the future, but because we've mapped out a trajectory from 1% to 2% by the year 2032/33, I think that would be a question for five or 10 years from now,” he said.

Penk has been clear New Zealand doesn’t think dialogue and defence spending are “mutually exclusive”.

He said he reiterated as much - and what New Zealand has to offer above cold hard cash - to Hegseth in person, in a pre-arranged meeting shortly after the “free loading” comments.

“It was clear when we had the opportunity to talk directly with Secretary Hegseth that he and the US administration know that there's an important role that we're playing, including that we play a role that is different from that which the US can play, and even potentially a bit different from the role that Australia can play,” he told The Post.

“It’s not just about the dollars or the percentage of GDP, it's actually about the kind of value we can provide, and some of the influence, as opposed to power or military power, that New Zealand is able to exercise we think is useful for the aims that he talked about in his remarks, along the lines that we want peace and stability through strength where necessary, but of course to avoid war in any way that we can.”

New Zealand is still tossing up what frigates - Japan’s Mogami-class or the United Kingdom’s Type 31 - it will buy in the coming years and that position hasn’t changed, at least publicly, since Shangri-La.

Penk sat down with his Japanese and Australian counterpart on Saturday, but said only he had “swapped notes” with Australia on its new vessels.

He was leaving his first Shangri-La Dialogue confident New Zealand was in a good place despite being a surprise talking point at the defence summit.

“Notwithstanding the headline that will have inevitably been generated by the question around 2% being less than others, we have respect for the fact that we've committed to a trajectory of doubling our spending and we've demonstrated, as recently as the Budget just released, that we do exactly that, so New Zealand's reputation is strong.”

Anneke Smith’s travel to the Shangri-La Dialogue has been made possible by support from the Asia New Zealand Foundation.