Philippine Gov’t Rallies Private Sector for AFP Modernization

2024 became a pivotal year for private sector engagement in the Philippine government’s efforts to modernize the Armed Forces of the Philippines (AFP). As regional security challenges intensified and tensions within territorial waters grew, the administration took significant steps to strengthen national defense through partnerships with corporate leaders.

In July 2024, Department of National Defense (DND) Secretary Gilberto Teodoro Jr. called on business leaders to support the AFP modernization program. He emphasized the need for “creative financing solutions” to enhance military capabilities while maintaining economic stability, urging the private sector to contribute to a credible and self-reliant defense posture.

This appeal came shortly after 17 prominent business organizations from the country, including the Makati Business Club and the Management Association of the Philippines, issued a joint statement in June 2024. The statement condemned aggressive actions in the South China Sea and called for the transformation of the AFP into a “modern and self-reliant force” to protect national sovereignty and economic stability.

By October, President Ferdinand Marcos Jr. signed the Self-Reliant Defense Posture (SRDP) Revitalization Act, a landmark legislation that aims to develop the country’s local defense industry by reducing reliance on imported military equipment and fostering collaboration with private enterprises.

“This is an invitation to the private sector to build a lasting defense industry,” President Marcos said during the signing.

In the same month, the Philippines hosted the Asia Defense and Security (ADAS) exhibition in Manila. The event drew nearly 300 global defense firms, showcasing advanced military technologies and providing a platform for the AFP to forge partnerships with international and local industry players.

Beyond equipment and training, corporations like Ayala Corporation have also contributed by focusing on the welfare of AFP personnel. In late 2024, Ayala launched initiatives to provide support and benefits to uniformed personnel and their families.

This effort underscores the private sector’s role in not only modernizing the AFP but also improving the lives of its members.

These developments demonstrate a multifaceted approach to national defense, combining the modernization of military capabilities with improved welfare for personnel and showcasing the critical role of public-private collaboration in securing the country’s future.