“The government is committed to supporting the growth of the aerospace and defense manufacturing sectors, recognizing their importance in national security and economic development.”
This was stated by Department of Trade and Industry (DTI) Secretary Alfredo Pascual to streamline the government’s ambition to enhance defense capabilities through both domestic development and international cooperation.
The Philippine defense sector is at a critical juncture and faces significant limitations. Valued at approximately PHP200 billion (USD 3.6 billion), the country’s defense industry remains underdeveloped and lacks substantial large-scale manufacturing capabilities to produce advanced weaponry, military vehicles or naval vessels.
Although there has been progress in manufacturing small arms and specific military equipment, the broader capacity for large-scale production, such as shipbuilding, remains limited.
The Department of National Defense (DND) oversees defense policies and budget allocations, while the National Security Council (NSC) aids in strategic planning. Budget constraints and procurement delays, however, have hindered the implementation of the Revised Armed Forces of the Philippines Modernization Program (RAFPMP), which aims to upgrade military capabilities through modern equipment and technology.
Key players in the Philippine defense sector include Armscor Global Defense Inc. which manufactures small arms like pistols, rifles and shotguns; the Philippine Aerospace Development Corporation (PADC) for aerospace technology and the production of military aircraft components and Philippine Navy Systems Inc. (PNSI) that provides naval equipment, although it is hampered by the lack of advanced shipbuilding facilities.
International companies also play a crucial role: Rheinmetall Defense, a German contractor, supplies advanced armaments and military technology, while Advanced Combat Systems (ACS) and Aviation Technology Solutions, Inc. (ATSI) offer specialized military gear and aircraft services.
To address its defense gaps, the Philippines frequently turns to international purchases. Recent acquisitions include maritime patrol vessels and military aircraft, often funded by foreign aid and loans. The Reciprocal Access Agreement (RAA) with Japan, which was signed last July, is particularly significant.
Under this agreement, Japan is set to provide maritime patrol vessels to enhance the Philippines’ maritime security, along with coastal radars to improve surveillance of its coastal and territorial waters. Additionally, the former is expected to assist in building and supplying vessels for the Philippine Coast Guard to bolster maritime law enforcement and search and rescue operations.
Surveillance technologies and air defense systems, including potential anti-aircraft missiles, are also part of the discussions, aiming to enhance the country’s capability to monitor and protect its air and sea domains.
The Enhanced Defense Cooperation Agreement (EDCA) with the United States also has substantial benefits since it allows for the rotational deployment of U.S. forces and advanced equipment.
Under the EDCA, the Philippines has received a range of equipment, including small arms like M4 Carbines and M16 rifles; artillery such as M119 howitzers and M252 mortars, as well as Humvees and MRAPs.
Uncle Sam also provided C-130 Hercules transport planes, UH-1 Huey helicopters, Coast Guard cutters, RHIBs, unmanned aerial systems (UAS) and advanced radar systems.
While progress has been made, the Philippine defense sector continues to face challenges, including gaps in large-scale manufacturing capabilities and equipment coverage.
The reliance on international purchases and cooperation underscores ongoing efforts to address these limitations and improve the country’s defense capabilities.
