The Philippines Expands Military Modernization Amid Rising Tensions
The Philippines has also conducted notable recent engagements towards military modernization, defense procurement, and strategic partnerships. With a 12.3% defense budget hike signed into law on December 30, a notice of award for 60 South Korean armored vehicles was issued last month with an expected near-term deal for 12 FA-50 Block 20 light fighters. Future potential procurement opportunities include multirole fighters, aeromedical helicopters, and a $613 million cyber systems acquisition project to improve defenses and integration.
Beyond procurement, the Philippines has also intensified joint military exercises, such as training with U.S. Marines on the Typhon intermediate-range missile system, conducting joint air patrols over the South China Sea, and planning multilateral exercises with the United States, Australia, Japan. Manila is also negotiating new defense pacts with New Zealand and Canada and recently participated in a large-scale, week-long exercise with the United States, Japan, and France in the South China Sea.
This military expansion is a direct result of President Marcos Jr.’s strategic push to modernize the country’s armed forces in response to growing tensions in the South China Sea. The modernization program is backed by a $35 billion initiative launched last year, which will be implemented over the next decade and illustrates Manila’s intent in addressing longstanding capability gaps and its seriousness about regional security. Combined with deepening security ties with Washington, this presents strong opportunities for U.S. companies to supply advanced military hardware, technology, and training programs, and to enhance integration, cybersecurity, and intelligence solutions as partners in the Philippines’ military transformation. Moreover, as the country seeks to enhance its domestic defense industry, they will likely seek new opportunities for technology transfers, joint ventures, and localized production agreements.
