Detailing the 2025 Philippine Coast Guard Budget

At the first weeks of the year 2025, the Philippine government, through the Department of Budget and Management or DBM, released the full details surrounding the General Appropriations Act for that year, and with that usually comes with the highlights surrounding the budget of the Department of National Defense, as in the case for outlets like this one.

In another quick discussion in this short-written entry, we will continue covering the 2025 budget relating to the country's national security purposes, only this time this will encompass the Philippine Coast Guard and projects under the Department of Transportation (DOTr) involving the West Philippine Sea.

DISCUSSION OVERVIEW

The Cessna C208CX Grand Caravan Aircraft is currently the mainstay fixed-wing aircraft of the Philippine Coast Guard.
Image Source.

The Philippine Coast Guard’s annual budget, just like those for the Armed Forces of the Philippines, always comes with an ongoing evolution, a focus primarily on its mandate for external defense and orientation to that phase of national security. 

Both budgets belong to the annually enacted General Appropriations Act, of which the 2025 iteration of the law got the signature of Philippine President Ferdinand R. Marcos Jnr on Rizal Day, December 30, 2024.

This article comes as the continuation of the discussions surrounding the 2025 General Appropriations Act, particularly pointing to its implications in relation to the current national defense efforts of the Philippine government, through the Department of National Defense and the Armed Forces of the Philippines. 

To recall, the Revised AFP Modernization Program received an important increase, although the bulk of its allotment aligns at Un-programmed Appropriations, depending on annual government revenue.

As the purpose of this writeup also delves in the country’s push and resolve on its territorial integrity, sovereignty, and national interest that encompasses beyond the scope of the core mandate of the Armed Forces of the Philippines, the duties and responsibilities of the Philippine Coast Guard in the West Philippine Sea also plays a role that the country showed its presence and perseverance in what’s rightfully part of the Philippine Exclusive Economic Zone, even before a more powerful adversary.

With an increasing trend of China’s assertiveness in securing what they claim as ‘theirs’ through the use of their own coast guard, maritime militia, and even naval assets belonging to the People’s Liberation Army Navy at sea, the budget encompassing the Philippine Coast Guard and the projects that the Department of Transportation at-large in the West Philippine Sea are helpful in cementing the country’s interest in West Philippine Sea, securing its marine resources for the citizenry to benefit.

Coming as usual, this article will delve into the plans, programs, and projects presented under the 2025 General Appropriations Act for the Philippine Coast Guard, while relating to the ongoing developments and that the maritime law enforcement agency has at present, such as in purchasing additional white hull assets as part of its fleet expansion. This, coupled with new facilities getting constructed, aims to help the agency uphold its core mandate, especially in increased tensions in the West Philippine Sea.

THE PCG BUDGET IN THE 2025 NATIONAL EXPENDITURE PROGRAM

The budget breakdown of the Philippine Coast Guard's National Expenditure Program, spanning three (3) years.

At a glance, there is a positive trend in the overall allotments presented for the Philippine Coast Guard’s financial requirements under the 2025 National Expenditure Program, as it has highlighted the growing responsibility of the maritime law enforcement agency in enforcing its presence in areas like the West Philippine Sea, along with its efforts to expand its existing Maritime Domain Awareness in securing the Philippine Territorial and Exclusive Economic Zone waters.

The budget of the Philippine Coast Guard in the 2025 National Expenditure Program comes at around Php 31,268,928,000.00 or Php 31.268 Billion, in which it is higher than the 2024’s Php 29,420,681,000.00 or Php 29.421 Billion allotment in the presentation, which itself is higher than the 2023’s Php 21,908,100,000.00 or Php 21.908 Billion allotment. This means that there is at least a 6.39% increase in the 2025 budget, lower than the 25.54% increase in the 2024 proposal as compared to the 2023 budget proposal.

With the positive trend also comes the same picture on the specific expenditure clusters that describe an operational component of a government agency like the Philippine Coast Guard, whereby there’s a general increase on both Personnel Services (PS) and Maintenance and Other Operating Expenses (MOOE), while there’s a general decrease on the maritime law enforcement’s Capital Outlay (CO) allotments as compared to the previous year. The breakdown of each expenditure cluster comes as follows.

The overall allotments for Personnel Services (PS) for basic salary and benefits for the Philippine Coast Guard’s uniform and civilian personnel composition comes at around Php 23,112,726,000.00 or Php 23.112 Billion, of which it comprise the largest percentage of the agency’s 2025 National Expenditure Program allotments that is at around 73.92% of the total budget allotted in this presentation. It is higher than 2024’s Php 19,739,399,000.00 or Php 19.739 Billion, and 2023’s Php 19,857,096,000.00 or Php 19.857 Billion.

Aside from Personnel Services or PS, another thing to point out is the composition of allotments under the Maintenance and Other Operating Expenses or MOOE, whereby it has the proposed figures under the National Expenditure Program for 2025 amounting to Php 7,086,919,000.00 or Php 7.086 Billion, composing about 22.66% of the total proposed budget in this presentation. It is higher than 2024’s Php 4,744,045,000.00 or Php 4.744 Billion, and 2023’s Php 3,571,565,000.00 or Php 3.572 Billion.

Completing this composition is the budget allotments under Capital Outlay or CO, whereby it saw a decrease in figures as compared to the first two (2) budgetary clusters, as discussed. For the year 2025, the figures provided under the National Expenditure Program of the said fiscal year amounts to Php 1,081,228,000.00, or Php 1.081 Billion, comprising only about 3.46% of the total budget. For comparison, figures for 2024 and 2023 are at around Php 4,744 Billion and Php 1.327 Billion, respectively.

The general increase of both Personnel Services (PS) and Maintenance and Other Operating Expenses (MOOE) sees as the ongoing increase on the number of hired personnel to the maritime law enforcement agency, along with the operational and repair requirements for the agency’s facilities and white hull vessels that is likely to receive in the succeeding years. While the National Expenditure Program provides the amounts as proposed at a glance, the 2025 General Appropriations Act gives a full picture.

THE ACTUAL BREAKDOWN UNDER THE 2025 GENERAL APPROPRIATIONS ACT

Here is the actual breakdown of allotments for the Philippine Coast Guard under the 2025 General Appropriations Act.

As the budgetary figures provided under the 2025 National Expenditure Program comes as an initial and also a sneak peek into what will the budget of a certain government agency will look like, the 2025 General Appropriations Act provide as the final budgetary figure that a government agency like the Philippine Coast Guard will see as a basis for its allotment, which will be its budget to use for its personnel and operating expense requirements for the said fiscal period.

The budget of the Philippine Coast Guard in the 2025 General Appropriations Act comes at around Php 33,251,928,000.00 or Php 33.252 Billion, which is actually higher than the figures presented under the National Expenditure Program of the maritime law enforcement agency with the aforementioned figures provided in this writeup. This means that the budget of the Philippine Coast Guard saw an increase of Php 1,983,000,000.00 or Php 1.983 Billion.

Going further, the breakdown between the expenditure cluster goes as follows - Php 23,100,781,000.00 or Php 23.101 Billion for Personnel Services or PS, Php 7,086,919,000.00 or Php 7.087 Billion for Maintenance and Other Operating Expenses or MOOE, and Php 3,064,228,000.00 or Php 3.064 Billion for Capital Outlay or CO, totaling to the aforementioned figure that saw an increase as compared to the proposed ones under the National Expenditure Program.

This means that the budget for the Personnel Services comes with a minor decrease of Php 11,945,000.00, likely pointing to the number of personnel separating from the service through multiple means such as resignation, transfer of agency, reaching the mandatory age for retirement, or applying for the optional retirement package. Budgetary numbers provided usually correspond to the actual number of personnel in service, with data originating from the agency’s Human Resource directorate.

Meanwhile, there are no changes on the overall allotment to the Philippine Coast Guard’s own Maintenance and Other Operating Expenses (MOOE) requirements, which stayed at Php 7,086,919,000.00 or Php 7.087 Billion for both the 2025 National Expenditure Program and the 2025 General Appropriations Act. 

This means that their requirements for upkeep facilities and operating PCG equipment lines up into what should be their actual expenditure projections on the said fiscal period.

Finally, the Philippine Coast Guard’s Capital Outlay, under the 2025 General Appropriations Act, saw more than a twofold increase, as it saw the increase from Php 1,081,228,000.00 or Php 1.081 Billion in the 2025 National Expenditure Program increased into Php 3,064,228,000.00 or Php 3.064 Billion, with a difference being at Php 1,983,000,000.00 or Php 1.983 Billion. This will enable the agency to improve its capabilities by acquiring more hardware and building new facilities.

From the provided figures, the overall increase in allotments for the Philippine Coast Guard under the 2025 General Appropriations Act directly attributed to the increase in allotments under its Capital Outlay (CO) funding cluster, while there is a decrease and no change on the allotments of both the Personnel Services (PS) and Maintenance and Other Operating Expenses (MOOE), respectively. 

Not mentioned here are the funding resources done through Official Development Aid or ODA loans, like the additional Teresa Magbanua class Multirole Response Vessels (MRRVs).

DOTR'S WEST PHILIPPINE SEA PROJECTS IN 2025

Pag-asa island now comes with a hangar and an air traffic control tower.
Screen grab from ABS-CBN News Channel.

As the Philippine Coast Guard falls under the organizational jurisdiction of the Department of Transportation or DOTR, it is as well worth discussing and delving with the projects that the transportation department have that has a relation with national security push, particularly on matters that correlates to the entire government’s push into cementing its presence in highly contested areas like the Kalayaan Island Group in the West Philippine Sea.

Based on the projects list provided by the 2025 General Appropriations Act for the earmarked programs set by the Department of Transportation or DOTR, one highlighted project on the list is the Airport Development and Expansion of Pag-Asa Island Airport (in Kalayaan Island Group), which amounts to Php 1,650,000,000.00, or Php 1.650 Billion Pesos. This budget is likely to provide continuous work on the airport facilities on the island, such as the air traffic control building and hangar facilities (see image above).

Another highlighted project is the Pag-Asa sheltered port project amounting to Php 300 Million, which refers to the dredged part of the island that can accommodate Philippine vessels of both civilian and government enforcement in nature, making it convenient to provide the much needed sustainment supplies for the troops and inhabitants of the island, along with an immediate deployment of heavy equipment and armaments that cement the country’s presence in an island part of the Kalayaan Island Group.

Finally, completing the list is the construction of Sheltered Port at Lawak Island, which is part of the Kalayaan Island Group municipality as the Pag-Asa island itself. Currently, the island, internationally named as Nanshan Island, comes with a small contingent of Philippine Coast Guard and Armed Forces personnel deployed in the area, and having a sheltered port in the island will help not only to cement the country’s presence but also to give added protection among Filipino fisherfolk during harsh storms.

Amounting to Php 1,080,000,000.00 or Php 1.080 Billion, the Phase 2 of the construction of a Sheltered Port at Lawak island is the continuation of what has already invested there, whereby an amount of Php 800,000,000.00 or Php 800 Million has already provided for the construction of the facility as part of the 2024 General Appropriations Act. Likewise, both the airport expansion and the sheltered port on Pag-Asa island are a mere continuation of the plans earmarked by the Transportation Department in prior years.

All the aforementioned projects aimed to improve not only the well-being of the troops and inhabitants within the Kalayaan Island Group in the West Philippine Sea, but it gives additional presence and resolve that the Philippine government and citizenry at-large provides attention and added support in protecting the country’s national interest and sovereign rights in the West Philippine Sea area, all of which are within bounds of the 1982 United Nations Convention on the Law of the Sea or UNCLOS.

Coupled with the current efforts by both the Philippine Coast Guard and the Armed Forces of the Philippines to improve their capabilities further for territorial defense purposes, the projects set by the Department of Transportation as mentioned play a vital role in providing support in further improving and fortifying the Philippine positions in the West Philippine Sea, all despite having incursions from both the China Coast Guard together with accompanying Chinese Maritime Militia ships.

LOOKING FORWARD

A scale model of the HDP-500 OPV as presented by HD Hyundai during the ADAS 2024 Exhibition.
File Image.

The budget of the Philippine Coast Guard in the 2025 General Appropriations Act, as opposed to its proposals under the 2025 National Expenditure Program, shows that the budget allotment increase, especially on its Capital Outlay related expenditures, are helpful for the maritime law enforcement agency under the Department of Transportation to further fulfill its mandate, especially that it plays a crucial role as the current frontline component in challenging Chinese elements in the West Philippine Sea.

The increase fully reflects the general trend on its budgetary requirements, all of which saw a constant increase on its needed budget allotments through encompassing years mentioned in the first parts of this writeup. 

The trend as presented is not that surprising, given that there is also a general increase of white hulls entering the service, along with the establishment of new facilities and recruiting the pool of aspiring applicants that wanted to join the service.

As mentioned earlier on the detailed breakdown of the expenditure cluster of the Philippine Coast Guard’s own budget, the numbers do not cover any soft loan or similarly arranged scheme that correlates to the agency’s improvement of its own capabilities, particularly to the recent purchase of Japanese-made Multirole Response Vessels and additional Teresa Magbanua-class MRRVs, all of which having the JICA Official Development Aid loan as the source of funds.

Adding to this is the ensured continuity with the ongoing rehabilitation and facility improvement projects in various Philippine outposts in the West Philippine Sea that is currently defined as part of the Kalayaan Island Group municipality of the Province of Palawan. Pag-Asa island’s current improvement of both of its airport and sheltered port emphasizes the importance of those facilities that increase the flow of logistics on goods, supplies, and much-needed goods from the Philippine mainland.

Aside from Pag-Asa island, the improvement in Lawak island, which is another Philippine outpost in the West Philippine Sea and as part of Kalayaan Island Group, also gives expanded presence for the country’s resolve in ensuring its national interest within its designated Exclusive Economic Zone or EEZ, whereby the national government sees its importance that the said projects have included in the 2025 budget of the Department of Transportation that also benefiting the country’s defense prospects.

The role of the Philippine Coast Guard, along with the budgets allocated by the Department of Transportation in the West Philippine Sea projects, shows that the country’s national defense efforts encompass the national government at-large, and not just the ones in the front-lines like the Armed Forces of the Philippines. 

The support among government agencies ensures that territorial integrity also comes with improving presence by providing better infrastructure for the assigned outposts to benefit.

Ultimately, the whole of nation approach in deterring the encroachment of a regional superpower in the country’s doorstep will come as a welcoming way forward in ensuring that the country’s citizenry and national interest will benefit, while making sure that the country is safe from threats that are now involving multiple domains, as the Chief of Staff of the Armed Forces of the Philippines mentions. As a country, the Philippines, with its citizens being united, stands against aggression posed against its own sovereignty.

To access the following documents, here are the following links below.

1. GAA 2025 - Philippine Coast Guard, under Volume 1-B, Chapter XXVI (archived).

2. GAA 2025 - Department of Transportation (Office of the Secretary), under Volume 1-B, Chapter XXVI (archived).

Here is an archived version of Volume 1-B webpage of the Department of Budget and Management or DBM.

(c) 2025 PDA.

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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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HD Hyundai Heavy Industries' Philippine Coast Guard Offers on ADAS 2024

In the recently concluded Asian Defense And Security Exhibition or ADAS 2024 that held from September 25 to 28, 2024, various military and defense companies are pitching their recent defense technology and upping their respective offers, hoping to secure a significant chunk of the Philippine defense market, whether it may be the one belonging to the Armed Forces of the Philippines or with other relevant agencies such as the Philippine National Police or the Philippine Coast Guard.

This topic go separately to the previously crafted entry for a possible HDP-2200 Offshore Patrol Vessel offer for the Philippine Coast Guard, as the booth of HD Hyundai Heavy Industries now presents multiple vessel solutions that the maritime law enforcement agency might need, from small vessels similar in size to the Parola-class Multirole Response Vessels, to gigantic ones that can counter the Chinese monster ships and can stay for months at contested areas like the Escoda Shoal.

HD HYUNDAI HEAVY INDUSTRIES IN ADAS 2024

Scale model designs of different vessel options provided by HD Hyundai Heavy Industries for the Philippine Coast Guard during the Asian Defense And Security Exhibition or ADAS 2024.
Image from Department of National Defense.

The 2024 Asian Defense And Security (ADAS) exhibition that took place in the World Trade Center convention hall on September 25-27 presented opportunities for the defense industries and companies to present their respective product lines and scale models, while presenting the vision that they have in taking part in the Philippine defense establishment’s enlarged push to improve its overall capabilities in the name of national defense and security.

Each defense industry that aims to secure the ever-growing Philippine defense market set up their respective booths in the exhibition, notably among companies that are actively taking part in some of the Armed Forces of the Philippines’ modernization-related acquisition projects. Some of the defense firms involved already delivered goods to a certain project of the Philippine Military, now actively taking part in expanding their business in the local defense market.

Among those who took part in the ADAS 2024 Exhibition is the South Korean shipbuilder HD Hyundai Heavy Industries, whereby they fielded various scale model designs of different ships that cater to both the needs of the Philippine Navy and the Philippine Coast Guard. 

Their offer to the former is a given, since the South Korean shipbuilder took part in the first Frigate Acquisition Project, the Corvette Acquisition Project, and the Offshore Patrol Vessel Acquisition Project.

The three projects are now what define the Jose Rizal-class Frigates, Miguel Malvar-class frigates (now bearing the FFG designation after getting an initial FF designation during the launch of BRP Miguel Malvar FFG/FF-06), and the HDP-2200+ Offshore Patrol Vessels, totaling at least ten (10) vessels delivered upon completion of all units from the time this writeup has published. This might increase further to twelve (12) units as the second Frigate Acquisition Project is getting likely to be another HD Hyundai preference.

As for their offer to the latter, the Philippine Coast Guard has a promising prospect of expanding its fleet further, especially with its crucial role in deterring against the provocative and intrusive China Coast Guard and Chinese Maritime Militia that illegally entering the 200 nautical mile Exclusive Economic Zone in the West Philippine Sea, while challenging the Philippines legal control into areas rightfully part of the country such as the Panatag (Scarborough) Shoal and the Kalayaan Island Group.

The South Korean shipbuilder presented a wider array of shipping solutions that the Philippine Coast Guard might consider, although this might also mean countering the current preference of the maritime law enforcement agency leaning on the Japanese built vessels. 

Currently, the Philippine Coast Guard has at least ten (10) 44-meter Parola-class Multirole Response Vessels or MRRVs and two (2) 97-meter Teresa Magbanua-class Multirole Response Vessels, with five (5) more coming on its way to the country.

In this writeup, the only focus is on the different scale model ship designs that HD Hyundai Heavy Industries displayed during the ADAS 2024 Exhibition for the Philippine Coast Guard, as the ones presented for the Philippine Navy will come as an entirely different topic, with its own set of discussion and other details to cover. Ultimately, the premise will provide the size and capability of each model presented, correlating to the plans of the Philippine Coast Guard for its fleet expansion.

THE PRESENTED PRODUCT LINE

In the scale models presented by HD Hyundai Heavy Industries in its podium during the 2024 Asian Defense And Security Exhibition, the following ones that sport the Philippine Coast Guard colors will be the one that will delve into in this part of the discussion, with each vessels come with various shapes and sizes, ranging from the smaller vessels weighing 500 tons to the large 4,000 ton vessels. 

Each scale model presented has its marketing points for the Philippine Coast Guard might consider for its capability.

1. HDP-500

The HDP-500 come as the smallest one offered by the South Korean shipbuilder.
(c) Frances Mangosing, X (formerly Twitter).

The smallest among the designs offered by HD Hyundai Heavy Industries in this exhibition for the Philippine Coast Guard, its size is actually larger than the 44-meter Parola-class Multirole Response Vessels that the maritime law enforcement bought from Japan through a financial line provided through the Official Development Aid Loan. Coming at 55 meters long, the HDP-500 design provides some extra space for the Philippine Coast Guard’s Unmanned Aerial Vehicles or UAV, if it needs one to deploy.

Other information presented for this ship is that it comes with the weight of 570 tons and a maximum speed of twenty-four (24) knots, sufficient for its performance in the high seas particularly if it goes for a tit for tat chase between the white hulls deployed by both China and the Philippines in the West Philippine Sea. Compared to the Parola-class MRRVs, the HDP-500 comes slower by only one (1) knot, although the significant size gain might give added space for additional improvement on the Philippine Coast Guard capabilities for both accommodation and added subcomponents onboard.

Completing the details, the Parola-class Multirole Response Vessels that are currently serving the Philippine Coast Guard also comes as lighter compared to the HD-500 patrol vessel design of the HD Hyundai Heavy Industries in terms of tonnage, as the former comes at around 321 tons or 249 tons lighter than what the South Korean white hull ship design comes in mind. Given a larger size while having a small variance on speed, this vessel might be worth a consideration for the agency’s aims for an expanded fleet.

2. HDP-1500

The HDP-1500 Offshore Patrol Vessel originally come as an offer to the Philippine Navy's project for its own Offshore Patrol Vessels.
(c) Frances Mangosing, X (formerly Twitter).

The next on the list is a vessel that is at one point offered to the Philippine Navy’s Offshore Patrol Vessel Acquisition Project, although this gets eventually increased in tonnage and its hull stretched out that is now become a separate design of its own being the HDP-2200+ Offshore Patrol Vessel. Despite the change, HD Hyundai Heavy Industries still keep this design, in which it looks forward to that agencies like the Philippine Coast Guard might consider it for their respective requirements.

Coming at around eighty-one (81) meters long, 1,700 tons, and the speed of around twenty-four (24) knots, the HDP-1500 comes as shorter to the Philippine Coast Guard’s BRP Gabriela Silang (OPV-8301), the eighty-three (83) meter vessel that the maritime law enforcement agency bought from France’s OCEA, and is also currently the largest aluminum-hulled vessel that the agency operates at present. Having an aluminum hull, the BRP Gabriela Silang is likely lighter compared to the steel-based hull of the HDP-1500 ship design, although the speed of the French-made ship varies from 20 to 30 knots.

Additional information for this ship includes having a beam of 13.1 meters and a draught of 3.5 meters, although its endurance and range might go higher than 28 days and 5,500 nautical miles, respectively, given that the specifications provided are for the Philippine Navy’s Offshore Patrol Vessel purposes. The variance has the onboard subcomponents into consideration, especially that the Philippine Coast Guard vessels do not come with weapons that usually come with the Philippine Navy’s own requirements.

3. HDP-2200

The HDP-2200 Offshore Patrol Vessel design is actually the likely preferred design for the Philippine Coast Guard's own white hull requirements.
(c) Frances Mangosing, X (formerly Twitter).

This following ship in the list is also the one that might likely be the design that gets offered to the Philippine Coast Guard from the South Korean shipbuilder, citing that it shares similar design commonality and logistical chains with the Offshore Patrol Vessels currently produced for the Philippine Navy’s own requirements. Apparently, the one offered to the Philippine Coast Guard is a slight derivative of the design provided for the Philippine Navy, with the former likely having a helicopter hangar accommodation.

As this go similarly to the Offshore Patrol Vessel design of the Philippine Navy with slight variations, its specifications go with the following information - it has a weight displacement of 2,450 tons, overall length of 94.4 meters, beam of 14.3 meters, draught of 3.7 meters, speed of 22 knots, range of 5,500 nautical miles, and the maximum endurance of 30 knots. This is slightly smaller than the Teresa Magbanua-class Multirole Response Vessels that the Philippine Coast Guard bought from Japan through an Official Development Aid (soft loan) arrangement, although the South Korean design has an expanded range compared to the 4,000 nautical miles that the current flagship have.

Among the scale model designs offered, the HDP-2200 stands as a greater chance for the Philippine Coast Guard to consider, particularly that it may improve commonality, interoperability, and spare parts logistics chain with their counterparts in the Philippine Navy. This means that it encourages subject exchanges and training between the personnel of both the Philippine Navy and Coast Guard, while simplifying the learning curve on the vessel’s operation in the high seas.

4. HDP-3300

This scale model has a main gun that large South Korean Coast Guard vessels usually have.
(c) Frances Mangosing, X (formerly Twitter).

The following vessel design presented here has its specifications go beyond the current flagships of the Philippine Coast Guard and goes on par with the Philippine Navy’s Jose Rizal-class frigate in terms of its size, and Miguel Malvar-class frigate in terms of its tonnage. It shares some design attributes with both the HDP-1500 and the HDP-2200 offshore patrol vessel design, with this design getting a full Coast Guard cutter treatment with having a main gun onboard that Chinese and United States CG vessels have.

Having a size of at least 106 meters long, weight displacement of 3,300 tons, and speed of around 24 knots, the HDP-3300 vessel design that HD Hyundai Heavy Industries presented to the Philippine Coast Guard comes a meter short to the Jose Rizal-class frigates’ 107-meter long hull (overall), while being having one hundred (100) tons heavier than the Miguel Malvar-class frigates’ 3,200 tons weight displacement. Compared to the first three (3) designs, it bears more weapons aside from the mentioned main gun.

The size of this ship, along with its armaments, can help the Philippine Coast Guard expand its capabilities and prolonged presence in areas like the West Philippine Sea, although this modification might come without the armaments like a main gun. This comes as the HDP-2200 design for the Philippine Coast Guard lacks the 76mm main gun armament that the Philippine Navy Offshore Patrol Vessels have, clearly signifying the difference on the mandates of both maritime entities of the Philippine government.

5. HDP-5500

The HDP-5500 can provide expanded deployment that the Philippine Coast Guard needs in areas like the West Philippine Sea.
(c) Frances Mangosing, X (formerly Twitter).

Completing the list is the largest ship that HD Hyundai Heavy Industries presented in its scale model design, one in which can help the Philippine Coast Guard counter the largest Coast Guard vessel that China has fielded in the West Philippine Sea and the broader South China Sea area in recent times. Its size can also double as the primary ship that the Philippine Coast Guard needs in prolonged deployment in the West Philippine Sea, in a manner it has done with the BRP Teresa Magbanua in Escoda Shoal for months.

The HDP-5500 coast guard vessel design comes with the following specifications - it has the size of around 140 meters long, 5,500 tons, and has a speed of around 25 knots. There is no substantiated information about its crew capacity, its beam and draught, or its range and endurance, but the scale model presented makes this a vessel capable of providing near-permanent presence in the West Philippine Sea, but still less ideal than constructing and installing permanent structures and outposts in areas near or around Kalayaan Island Group and Panatag Shoal.

For comparison, the Chinese Cutter “Nansha”, the monster ship that the Philippine media reports and also calls by its hull number CCG-5907, comes with its displacement of around 12,000 tons, basically more than twice than what HDP-5500 presents for the Philippine Coast Guard. Also, the size of the Chinese monster ship’s hull comes at around 164.89 meters, or at least 24.89 meters longer than the South Korean design. Finally, this vessel’s deployment in the West Philippine Sea might give this vessel design a consideration.

IN SUMMARY

The HD Hyundai Heavy Industries has unveiled the scale model of the HDP-2200 Offshore Patrol Vessel design with the Philippine Coast Guard insignia during the Korea Ocean Expo (KOE) 2024.
Image Source.

The presentation of HD Hyundai Heavy Industries for the Philippine Coast Guard on its booth during the 2024 Asian Defense and Security or ADAS Exhibition highlights its desire to take part with the maritime law enforcement agency’s ongoing modernization push, particularly with the number of white hulls it pursues in the upcoming years. The number of scale model designs presented gives a wide range of options that the Philippine Coast Guard may choose to expand its present capabilities.

From the small HDP-500 vessel design to the largest HDP-5500 design that helps counter the Chinese monster ship mooring in the West Philippine Sea for prolonged deployment, the South Korean shipbuilder provided its ships portfolio as an attempt to enter the Philippine Coast Guard’s own fleet market, in a way that it succeedingly get the significant portion of the Philippine Navy’s own fleet requirements by producing the orders booked for frigates, offshore patrol vessels, and guided missile frigates (corvettes).

One important salient feature that HD Hyundai Heavy Industries market to the Philippine Coast Guard is on interoperability and streamlined spare parts hulk with their counterparts in the Philippine Navy, as this is how they market the HDP-2200 Offshore Patrol Vessel design for the maritime law enforcement agency to consider. Should this option get considered, there will be an effective commonality in skills and maintenance between both entities in getting this type of vessel design.

While this South Korean shipbuilder has promising prospects in selling the ship designs for the Philippine Coast Guard to consider, there are still obstacles for them to achieve or secure a portion of the maritime law enforcement agency’s fleet composition. One highlight is the Philippine Coast Guard’s preference for French and Japanese-made vessels, with the latter comprising the bulk of the agency’s operating white hulls such as the Parola-class and Teresa Magbanua-class Multirole Response Vessels (MRRVs).

The preference also comes that the projects mentioned for the two (2) aforementioned Multirole Response Vessel class made in Japan have purchased through the Official Development Aid loan, making it difficult for HD Hyundai Heavy Industries to market its ships to the Philippine Coast Guard unless if it has the backing of any soft loan or financing facility equivalent from the South Korean government in order for their offers to get enticing for the maritime agency to consider.

It remains to see the extent of HD Hyundai Heavy Industries’ extent into marketing its ship designs for the Philippine Coast Guard for consideration, as the competition is stiff into securing contracts in this agency that is predominantly composed of French and Japanese white hulls, both of which came with soft loans and lessening financial stress in mind. Still, the designs presented by the South Korean shipbuilder provide a promising prospect that its decision makers might consider later on. 

Ultimately, all the ships that HD Hyundai Heavy Industries presented in ADAS 2024 do not only presented their likely offers that the Philippine Coast Guard might consider, but also the continuous partnership that they have with the Philippine Navy, in which it has the chance of getting expanded with their offers particularly with the naval service branch of the Philippine military’s plan to buy additional full complement frigates. All designs presented help the Philippines improve its own maritime domain awareness.

(c) 2025 PDA.

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