Congress is being urged to get its act together on pending measures seeking the creation of defense economic zones, which are seen as key to attracting foreign investors, particularly in military equipment manufacturing, logistics, and MRO (maintenance, repair, and overhaul) operations, in support of the ongoing modernization of the Armed Forces of the Philippines (AFP).
This was emphasized by Maj. Gen. Ivan Papera, chief systems engineering and modernization officer of the AFP, during a panel discussion at the “Building Credible Deterrence Through a Multi-Domain Armed Forces of the Philippines Modernization” forum attended by ambassadors and dignitaries from various embassies in the country. The forum, organized by think tank Stratbase, was held today, Thursday, at the Manila Polo Club.
“We need those economic zones, especially for the defense industry,” he said, citing the need to partner with the private sector to address gaps in the AFP’s sustainment program. The AFP official also pointed to significant opportunities for private sector participation, particularly in the establishment of manufacturing operations and MRO facilities.
He then called on leaders in the legislative branch to work together in determining which bills to prioritize and to fully support the AFP modernization program.
Otherwise, he said, the years those bills have spent pending in Congress will just keep increasing and, “We will never see these economic zones established— especially the defense economic zones.”
“Hopefully, the defense industry can also be a reality,” he added.
During the panel discussion, a representative from the Board of Investments highlighted the potential for manufacturing investments under the Self-Reliant Defense Posture (SRDP) Revitalization Act, considered a cornerstone of the country’s shift in AFP modernization efforts. The measure seeks to move military procurement away from heavy dependence on imported off-the-shelf equipment toward localized manufacturing, research and development, and strategic technology transfers.
In line with this, the AFP has been coordinating closely with government agencies, particularly the Department of Trade and Industry, to revive the domestic defense industries.
The proposed law updates the original 1974 SRDP program by incentivizing local enterprises to manufacture military hardware.
The initiative aims to build indigenous production capabilities for AFP requirements, ranging from small arms and ammunition to missile technology, drones, and naval vessels.
Meanwhile, the Aurora Pacific Economic Zone and Freeport Authority (APECO) said during the forum that it is positioning its ecozone as the national defense hub of the Philippines.
