The Philippines will be in a position to become a regional manufacturer and exporter of weapons and other military equipment once President Marcos signs into law the Self-Reliant Defense Posture (SRDP) Act, according to one of the lawmakers behind the measure.
Senator Juan Miguel Zubiri said the SRDP’s aim is not just to help the domestic defense industry meet local demand, but growing its manufacturing capacity so, the Philippines can become a major producer of military materiel in Southeast Asia.
He asserted that the SRDP coupled with the Special Defense Economic Zone Act (SPEDEZA) will lay the legislative groundwork to turn the Philippines into a regional hub for defense manufacturing operations.
Zubiri pointed out that the SPEDEZA, which sets up a Special Defense Economic Zone in Limay, Bataan, has been approved at the committee level.
The senator explained that the Regional Comprehensive Economic Partnership (RCEP) has paved the way for the SRDP Act, which provides a framework for a revitalized in-country defense production industry.
Zubiri, who sponsored the Senate Resolution on the RCEP, says that the Philippines’ inclusion in the RCEP agreement is a key point of attraction for investors looking to invest in the country, particularly in the defense sector.
“Defense investors are not just interested in setting up shop here so they can sell to the Philippines. They also want to come here so they can export to other RCEP countries, like Korea, Japan, Australia, New Zealand, among others,” he noted.
With Southeast Asia emerging as the preferred investment hub of multinational corporations, Zubiri sees a lot of opportunities for the Philippines.
He expects an influx of defense investors once the SRDP Act is signed into law.
However, he cautioned that despite being an RCEP country, the Philippines is still a step behind other Southeast Asian countries in terms of defense investments.
“Vietnam is now giving lease-free land for a certain number of years, to jumpstart investments,” he said.
“We have to keep up with, if not get ahead, of our neighbors. The RCEP has opened the door for us, but we now have to charge forward on our own too. And I think there is great potential for us in the defense sector if we can make the Philippines a major defense hub in the region,” he explained.
Zubiri explained that because the Philippines will be competing against 10 other Southeast Asian nations seeking to entice foreign defense investors, it is necessary to put together a competitive incentives package.
“As a party to the Agreement, the Philippine government should formulate better investment pitches for prospective foreign investors to successfully land more investments for the country,” he said.
Be the first to comment