Forging the Philippine Local Defense Industry (SRDP and R.A. 12024)

A country usually comes with a decent armed force that implements its national policy of preserving the sovereignty and territorial integrity of its domain, while ensuring the best interest of its citizenry by securing the entire nation's land, sea, and air domain against multiple threats. And with this usually comes with investment into securing sophisticated and effective military hardware that comes from other countries that help developed and produce these tools, with instances adhering to the specifications of a military end-user.

And as the military capabilities grow, so does the desire of securing the materiel supply chain, going to the rationale that the country has its own defense industry that produces the tools that its own armed forces require. The Philippines has provided that significant step of improving its own defense industry through this important piece of legislation that will make it possible.

AS REPORTED IN THE NEWS

The assembly of the ninth (9th) Acero-class (Shaldag V) Fast Attack Interdiction Craft come as part of the Philippines' desire for Self Reliance Defense Posture.
Image screen grab from Naval Sea Systems Command video.

Self-reliance is a key for a country to improve and enhance its armed forces, without relying too much on alliances and suppliers originated from foreign countries for its defense, as the responsibility of the national government to foster and improve its local defense industry not only gives the country its capacity to sustain its logistical and production requirements in an event of a conflict, but also in bolstering its economy should its defense industry opts to export military hardware later on. 

This is the aim of the newly enacted Republic Act 12024 or the Self Reliance Defense Posture Revitalization Act, of which President Ferdinand R Marcos Jnr signed the legislation into an actual law on October 8, 2024. 

At a glance, this encourages the country to produce its military hardware of various types, supporting the Armed Forces of the Philippines with locally made weaponry, and revitalizing the country’s defense industry that contributes to its overall economic development.

The effort itself will probably face its hurdles, specifically that the Philippines itself does not have a matured industry that can produce advanced weaponry, or a defense industry that goes beyond the manufacturing of firearms and ammunition like the ones that a local company like Armscor Global Defense (formerly Arms Corporation of the Philippines) does on its core business portfolio. The law itself, from this point on, serves as a foundation for the defense industry's development.

Apparently, the enactment of the law gives preference to local companies like Armscor Global Defense in procuring military hardware, with the SRDP Revitalization Act being a complementary law to the other newly enacted legislation, which is the New Government Procurement Act (NGPA) or the Republic Act 12009. As the Revised AFP Modernization Program, under the Republic Act 10349, sets into motion, there is a likelihood of local companies expressing their interest in joining this new type of industry.

Given that setting up the country’s defense industry is relatively new in the Philippine economy, it might be the chance for local industries to forge partnerships with foreign defense partners in setting up local production facilities in the country, taking the advantage of the law’s preference on locally made military hardware and materiel that the Armed Forces of the Philippines and other relevant agencies needs in their respective duties and responsibilities.

On this topic, the discussion will delve more on the key salient points of the Self Reliance Defense Posture Revitalization Act, along with the reported developments that revolve around the increasing defense relationships that the Philippines have with other like-minded countries that might have this type of partnership in mind. This comes as the country’s defense capabilities are needing a boost amidst an increasing aggression by the red country in the Indo-Pacific Region.

The first point provides a summarized writeup regarding the provisions and technicalities that have included in the law, providing an insight as to the type and scope of how and what will the Philippine defense industry might look like in the succeeding years, along with perks and benefits that might have benefit any business entity that sees interest in taking part within this industry, while boosting the country’s economy that produces additional jobs for the citizenry to join and contribute in the nation’s overall development.

KEY SALIENT POINTS

The Philippine Navy's Multipurpose Attack Crafts (MPACs) counts as locally produced vessels from Propmech, in partnership with a Taiwanese entity.
File Image.

The Republic Act 12014 or the Self Reliance Defense Posture Revitalization Act introduced measures and guidelines that will help develop and enhance the local Philippine defense industry, particularly with the salient provisions that have come with the legislation and enactment of this law for implementation. 

Each of the provisions at hand comes with a range of benefits and organizational structures in hand, all aiming to have a guiding principle for the country to develop and mature its own defense production.

First key salient point is the establishment of the Office of the Undersecretary for Defense Technology Research and Industry Development or ‘DTRID’ under Sections 4 and 5, an attached unit within the Department of National Defense that has the responsibility to the full implementation of the Republic Act 12014, and the compliance of any deals, plans, programs, and development partnerships under the Self Reliance Defense Posture arrangement. More emphasis on this office’s scope on the next sub-topic.

The second key salient point is on the National Defense Industry under Section 6 of the law, of which it clearly expresses the government’s role in supporting and developing the country’s defense industry with the following provisions, such as giving local companies preference on both procurement and technical support on research and development, together with securing foreign-sourced materials if the same is not available in the country. This provision and the next one emphasize the need for tech transfers.

The next provision, under Section 7 of the law, points to the Self-Reliance Defense Posture program itself, of which the promotion of the technology transfer gets highly emphasized, along with the development and securing the country’s access on resilient supply chains of highly essential and critical technologies necessary for its defense industry to flourish. Development and modernization of government arsenal, military bases, camps, and shipyards, come included in this law as a complementary measure, compatible with the measures and provisions of the Revised AFP Modernization Program or R.A. 10349.

This means that private entities, particularly with foreign technologies not available in the country, might go into development partnerships later on, effectively providing technology transfer that enables these local companies to supply the same to the end-user like the Department of National Defense, using local production facilities and Filipino workforce to accomplish a defense materiel contract while contributing to the economic well-being of this employed workforce and the economy at-large.

There are more provisions on this law that might help the country develop its own technology, through the Section 9 or the Development of Technology and Systems to Counter Unconventional Threats that address CBRNE and cybersecurity matters, Section 10 that addresses emerging advanced technologies like artificial intelligence (AI) and advanced military equipment, and Section 11 for securing military and defense-related technology patents through the Intellectual Property Office (IPO) property lane.

In the salient points presented come the required guidelines that enable the efforts of establishing and improving the Self Reliance Defense Posture or SRDP efforts of the government even more significant, particularly with the interest groups and current bilateral defense relationships that the Philippine government has with other countries might enable to give a bit of support, particularly in areas that will help improve the capabilities of the Philippine Armed Forces and the local defense industry at-large.

DEFENSE TECHNOLOGY RESEARCH AND INDUSTRY DEVELOPMENT (DTRID) OFFICE

At one point, Austal shipbuilding promoted its Offshore Patrol Vessels with local production perks, which should be an advantage for Self Reliance Defense Posture efforts.
From Austal.

One crucial provision for enforcing the Self Reliance Defense Posture Revitalization Act is the establishment of the Defense Technology Research and Industry Development or DTRID Office, itself being a unit under the Department of National Defense. At a glance, this will probably be the Philippine equivalent to the South Korean Defense Acquisition Program Administration or DAPA, or the United States Defense Advanced Research Projects Agency or DARPA.

Responsible to the enforcement and monitoring of its application in military and defense-related industrial development, the Office of the Undersecretary of the DTRID, under the Section 5 of the law, has the function that ranges from adopting a defense policy in establishing defense stockpiles to sustain defense operations during the state of emergency which is pertaining to storing ammunitions (Section 5-A), to an advisory recommendation on policies dealing with the National Defense Industry (Section 5-H).

One important highlight of the office’s duties and responsibilities as stipulated in the law’s own provisions is the promotion of having Technology Transfer for local industrial production purposes. This means that any acquisition project that the Philippine military pushes in the upcoming years under the Revised AFP Modernization Program might need this provision that prompts foreign suppliers to comply, which is ideal if the deal comes with bulk orders that takes the economies of scale into consideration.

As a formulator and implementer of the policies within the scope of the Self Reliance Defense Posture Revitalization Act, the DTRID office will be the one who will craft and implement the Implementing Rules and Regulations or IRR of this law, providing the sets of guidelines and provisions that will set direction and limitation for any future defense industrial development that may partake for the country’s burgeoning defense acquisition and industrial efforts.

Of course, the guidelines set by the Office of the Undersecretary of the Defense Technology Research And Industry Development will need to align with other established laws, such as the Republic Act No. 11293 or the "Philippine Innovation Act," along with the provisions set under the Revised AFP Modernization Program or the Republic Act No. 10349 as part of its ongoing efforts to modernize and enhance its overall capabilities into the current standards.

Aside from promoting Tech Transfers and partnerships on research and development, DTRID also promotes the idea of exporting locally made materiel overseas, especially if the Philippine Defense Industry itself gets matured through time through the full supervision and monitoring of the office. 

While the idea is currently far-fetched from the time this writeup gets published, the guidelines provided give precedent that enables the future Philippine Defense Industry to get a significant portion of the global defense market.

With the establishment of the Defense Technology Research and Industry Development Office as an attached unit of the Department of National Defense, the Self-Reliance Defense Posture efforts will now have an office that oversees, monitors, and promotes the local production, research, development, and eventually the export of defense materiel made in the Philippines, while nourishing and improving the Philippine Defense Industry as one key field of the country’s economy, alongside agriculture and office services.

SRDP ACCOMPLISHMENTS AND PROPOSALS

Isuzu Philippines, F. Cura Industries, and FMC Motors, will provide locally produced light carriers for the Philippine Army's own requirements. 
Image from Overland Kings, Instagram.

In this portion of the article that discusses the Self Reliance Defense Posture efforts of the Philippine government through the Department of National Defense regarding the country’s local production of military hardware intended to the Armed Forces of the Philippines and other relevant agencies, the points will delve more on the recent accomplishments, reports, plans, and programs that aims to achieve the vision that the Republic Act 12024 tries to achieve.

One recent development is the presentation of a Troop Carrier Light Truck concept likely for the Philippine Army’s use, of which the winning bidder for this project is a partnership of local business entities between Isuzu Philippines, FMC Trucks, and F. Cura Industries. 

There is a likelihood that under the new SRDP law, this partnership will get the preferential treatment in awarding of contracts, which will help the Armed Forces of the Philippines improve its capabilities with locally produced military materiel.

The advantage of securing orders from local business entities like the partnership aforementioned is with the readiness and availability of spare parts for the continuous repair and maintenance support of the military hardware such as a local Troop Carrier Light Truck derived from Isuzu’s N-series of trucks, in which all of its components can get locally sourced, with commonality shared with the civilian version of the trucks commonly seen traversing on Philippine roads.

Another development relating to Self Reliance Defense Posture efforts is on the local production and assembly of the Acero-class Fast Attack Interdiction Crafts - Missile (FAIC-M) vessels of the Philippine Navy, whereby the final units produced under the first batch got locally produced in the service branch’s Cavite Yard. There is a likelihood that the plans for the next batch of the Israeli-developed fast attack interdiction crafts will also have its production done in the country.

The local production of the Philippine Navy’s Acero-class Fast Attack Interdiction Crafts - Missile (FAIC-M) vessels, of which being the country’s derivative of the Shaldag V patrol vessels marketed by Israel Shipyards Limited, come as one of an excellent example for the country’s Self Reliance Defense Posture efforts, of which the contract for the first batch of vessels come with the provision for the Technology Transfer that enabled the Cavite Yard arrangements on production and assembly of future FAIC-M vessel orders.

Another example is with the Philippine Aerospace Development Corporation or PADC, whereby they locally assemble the RV-10 and RV-12 aircraft, primarily catering to local flying schools that will hone local pilots into having the skills in flying, taking off, and landing an aircraft. 

With this development, there is the likelihood that this might expand into providing the same to government agencies like the Philippine Armed Forces and the Philippine Coast Guard, both to train their pilots and for extra surveillance operations.

The three (3) presented examples are a clear evidence of an ongoing effort related to the Self Reliance Defense Posture or SRDP, especially now that the law related to this posture has now enacted and will probably receive added support in the upcoming years along with the ongoing efforts relating to the Revised AFP Modernization Program. This means that the overall push to have a matured Philippine Defense Industry is in the right direction, eventually helping the Philippine military source its hardware locally.

LOOKING FORWARD

The BRP Tagbanua LC-296 (image above) is a locally produced Philippine Navy ship.
(c) Philippine Fleet.

Upon the enactment of the Self Reliance Defense Posture Revitalization Act or the Republic Act 12024, the Philippine Defense Industry sees a chance to have a head start with the law being its foundation, which will eventually promote and fostering the local research, development, and production of military materials that is proudly made in the Philippines. It aims to improve the country’s military capabilities, while bolstering a portion of its economy and providing sufficient jobs to the local citizenry.

Local Philippine firms and joint development partnerships are sprouting from the prospect of improving the country’s own defense industry, where countries like Japan aims to establish a comprehensive framework that not only enables them to export military materiel to the Philippines to improve the capabilities of the country’s armed forces, but also in helping the country improving its defense industry, addressing the limitations stipulated by Japan’s law on defense exports.

As the law complements the guidelines and provisions pushed by both the Revised AFP Modernization Program or the Republic Act 10349, and the New Government Procurement Act or the Republic Act 12009, there might be a likely trend that the future acquisition projects of each branch belonging to the Armed Forces of the Philippines will include provisions that mentions Technology Transfer or local production of military hardware, both are primary aims of the newly enacted law.

With the preference pointing to local companies, this might encourage other local firms to secure a joint venture with foreign defense entities to secure a contract with the Armed Forces of the Philippines at a certain project, both aiming to get the needed tools and materiel that the country has, while the locally sourced one's gets integrated on the final product that a local company makes according to the specifications as part of the requirements pushed by the end-user.

Through the years, the Philippines always has the potential to foster and improve its Self Reliance Defense Posture even before the enactment that will set this effort into an official government policy, especially with the endeavors accomplished by various local entities in the past. 

One notable example was with the Philippine Aerospace Development Corporation’s license production of Norman Britten Islander Aircraft for various government entities like the Philippine Coast Guard.

Then there’s the recent accomplishment that have not mentioned in this writeup that will add to the displayed potential for an improved and matured Philippine Defense Industry, such as the Philippine Navy’s BUHAWI Project for an automated gun mount or a Remote-Controlled Weapons System or RCWS, or the success brought by production of the largest locally produced naval asset that serves the service branch to date, which is the BRP Tagbanua (LC-296, see image above).

Ultimately, the enactment of the Republic Act 12024 provides a promising future for the efforts revolving around the Self Reliance Defense Posture as pushed by the Department of National Defense, as a growing Philippine Defense Industry will decrease the country’s reliance from importing foreign-made military hardware in the country, while assuring its tip-top shape performance with a robust facility on maintaining and repair the purchased platforms, while having an ensured logistics chain of its own.

(c) 2025 PDA.

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