Philippines boosts military self-sufficiency with new defense law 

As the Philippines takes bold strides toward military self-sufficiency, a new law is set to reshape the country’s defense capabilities and economic future. President Ferdinand Marcos Jr signed the Self-Reliant Defense Posture (SRDP) Act into law during a ceremony in Malacañang on October 8.

The new law develops the country’s defense industry by creating pathways to boost local production of defense equipment, including materiel and ammunition. This initiative strengthens both the defense sector and the Philippines’ economic independence.

The law also supports the recently adopted Comprehensive Archipelagic Defense Concept, which aims to enhance maritime security and strengthen the country’s defensive posture in response to Chinese aggression in the West Philippine Sea.

“With the signing of the Self-Reliant Defense Posture Revitalization Act, we are anchoring our defense strategy firmly in the strength of our own resources and capabilities,” Marcos Jr said in his speech during the signing ceremony.

The president said that the law goes beyond the development of weapons or equipment, as it seeks “to create a framework that makes us less dependent, more resilient, better prepared.”

“It is a commitment to a long-term growth trajectory for a national defense industry that will support the defense requirements of our country. It’s a logical move forward for a country that finds itself at the fulcrum of geopolitical shifts and volatilities,” said Marcos Jr.

According to Marcos Jr, the newly signed law broadens the nation’s perspective on defense, and “We are not just looking at tanks and rifles; we are building capacities that address these unconventional dangers head-on.

“This means developing systems and strategies that are reactive and predictive, allowing us to stay a step ahead of those who wish harm to the Philippines.”

Enhancing local defense industry

On October 7, Senate President Francis G. Escudero highlighted how the law will enhance the country’s ability to produce advanced weaponry and equipment for the armed forces.

Escudero expressed optimism about the revival of Senate Bill 2455 and House Bill 9713, known as the SRDP Act, which will empower the Philippines to build its defense industry. This, in turn, will significantly contribute to the country’s independent foreign policy by reducing its dependence on allies for defense supplies.

Under the SRDP, the government will prioritize domestic suppliers and incentivize manufacturers to establish or relocate their production within the Philippines.

“It is high time for the Philippines to reduce its reliance on its allies for the supply of its defense requirements. We have the capability to produce materiel that matches the quality of our international suppliers, and with the right amount of support, they will one day be able to scale up their production and supply 100 percent of our needs,” Escudero said.

The SRDP Act will give preference to Filipino-owned enterprises that engage in the development, production, manufacturing, assembly, and servicing of military materiel, including military technology, weapon systems, arms, ammunition, combat clothing, armor, vehicles, and other similar equipment.

The bill pushes for the country’s defense needs to rely on locally produced or readily available materiel, strengthening self-sufficiency.

In August, the Philippine Senate ratified the bicameral conference committee report on the SRDP Act, reconciling differing provisions of the bill. The Legislative-Executive Development Advisory Council had earlier identified the SRDP as a priority measure.

The bill created the Office of the Undersecretary for Defense Technology Research and Industry Development (DTRID), which will lead research and development efforts to promote the defense industry.

Escudero also emphasized the importance of countertrade and offset provisions in the SRDP, which will foster technology transfer and improve manufacturing processes, standards, and efficiency.

“With the development of local industries, their market will expand, and the income of our citizens belonging to these industries will also increase,” the senator added in Tagalog.

The SRDP will improve the country’s defense capabilities while creating jobs and stimulating local industries, Escudero said.

The Department of National Defense (DND) reported that the Philippines relied heavily on government-to-government procurements, with military-related imports valued at around US$305 million in 2022.

Escudero noted that defense enterprises based in the Philippines would benefit from tax exemptions, including exemptions from national internal revenue taxes, value-added tax, and customs duties on imported capital equipment and raw materials, provided these supplies are unavailable locally.

Defense enterprises selling products to the DND or other government agencies will also be exempt from the Single Largest Completed Contract’s requirements and the stipulation that their products must be used by at least two foreign militaries.

Modern military technologies 

Defense Secretary Gilberto Teodoro Jr. emphasized the need for modern military technologies in his vision for the SRDP Act during his speech at the Blue Economy Annual Trade and Conference (BEACON) Expo 2024 on October 2.

Speaking at the event, which was attended by Maritime Fairtrade, Teodoro underscored the importance of prioritizing advanced technologies over outdated industries.

“My vision of the SRDP is not to subsidize obsolescent technologies and backyard industries because that is not the asymmetry that our armed forces need. Our armed forces need asymmetric capabilities. We need higher technology capabilities,” he said.

Teodoro pointed out the significance of shipbuilding, particularly the need for durability in military vessels, as tensions in the West Philippine Sea grow.

“In shipbuilding, we need durability. You see the current ramming incidents against our vessels. If these vessels were steel-hulled and reinforced, I guess we know what the conclusion is,” he said, referencing incidents involving Chinese maritime forces.

Asymmetric capabilities refer to unconventional strategies or technologies that allow a smaller or weaker force to counter a more powerful adversary. 

This could include cyber warfare tools, advanced drones, or specialized maritime assets. The SRDP Act traces its origins to Presidential Decree 415, issued in 1974, and later amended by Presidential Decree 1081 in 1977.

With the revival of the SRDP program, the Philippines aims to strengthen its self-reliance in defense production and reduce its dependence on foreign suppliers.

Once enacted, the DND, through the DTRID, will oversee the implementation of the SRDP program, which aims to revitalize the defense industry, strengthen allied industries, and meet the country’s short, medium, and long-term defense requirements.

The new law will likely shape the country’s military strategy for years to come, ensuring the Philippines can protect its territorial integrity and contribute to global maritime security.

The SRDP Act represents a crucial step in securing the Philippines’ future, supporting local industries, and enhancing the capabilities of the Armed Forces of the Philippines.

Photo credit: Presidential Communications Office. Philippine President Ferdinand Marcos Jr. officially signs the Self-Reliant Defense Posture (SRDP) Revitalization Act on October 8, 2024.

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