Despite Financial Constraints, Philippines Military Modernization on Track

Manila’s military modernization program, driven by maritime skirmishes with Beijing, is on the right track, with more acquisitions of new military assets already in the pipeline.

In recent years, the Armed Forces of the Philippines has acquired jets, ships, tanks, artillery, hypersonic missiles, air defence systems, and radars, with plans also underway to secure its first submarines.

Just this year, South Korea delivered separately two new Malvar-class guided-missile frigates—the BRP Diego Silang (FFG-07) and BRP Miguel Malvar (FFG-06)—both acquired under a ₱28-billion (US$483.28 million) contract signed in 2021 between the Department of National Defense (DND) and shipbuilder HD Hyundai as part of the central government’s Horizon 2 modernization program.

Expressing Confidence

“It is a positive indicator that our modernization program is on track,” said Navy spokesperson for the West Philippine Sea, Rear Admiral Roy Vincent Trinidad.

Originally, when Manila announced its modernization plan in 2012, it aimed to acquire six anti-air warfare frigates, 12 anti-submarine corvettes, 18 offshore patrol vessels, 42 missile boats, and three attack submarines, along with various amphibious and auxiliary vessels.
But as of this year, the Philippine Navy has only four modern frigates – BRP Diego Silang (FFG-07), BRP Miguel Malvar, BRP José Rizal, and BRP Antonio Luna with anti-air, anti-surface, and anti-submarine capabilities; two sealift vessels - BRP Tarlac and BRP Davao del Sur; three corvettes including ships from South Korea; six offshore patrol vessels used for patrol and surveillance missions; and nine missile boats.

Insufficient Capacity

An analyst noted that capability alone is insufficient—frigates and submarines, no matter how advanced, have limited value if acquired in small numbers.

“They can’t just make sense within specific operational scenarios – they need to make sense as part of a broader strategy. If the Philippine Navy’s s goal is to safeguard the country’s maritime zones from encroachment and defend against China in an asymmetric conflict – then its current force structure is inadequate,” said Vincent Kyle Parada, a former defence analyst for the Philippine Navy.

“The problem really is not that the Philippines does not possess modern naval capabilities – it does, and it will – but that it does not have the capacity to leverage them to achieve its goals,” he added. “You can have a top-of-the-line frigate, but if you don’t have enough of them to form a squadron and fulfil their operational role within your defence strategy, then you’re not really ready.”

Despite that, President Ferdinand Marcos Jnr approved in January last year the "Re-Horizon 3" initiative, which revised the previous acquisition plans outlined in the original third phase of the military modernization program.

Ambitious Plan

The government allotted about USD 35 billion over the next decade for the military’s acquisition plan. Included in the military’s list are multi-role fighters, radars, frigates, missile systems and rescue helicopters.

General Romeo Brawner Jnr, Armed Forces of the Philippines chief, said the military would procure more missile systems, warships and fighter jets to boost the country’s deterrence force. “We are looking at acquiring more missile systems,” Brawner said at the Raisina Dialogue, an annual conference in India recently. “Alongside this, we will be purchasing more warships and multi-role fighter jets to build a strong and reliable deterrent force.”

Diverse Purchases

Currently, Manila operates two supersonic Brahmos anti-ship missiles from New Delhi that can travel at a speed of 2.8 Mach – almost triple the speed of sound. The first battery of Brahmos missile, manufactured by Indo-Russian multinational defence company BrahMos Aerospace, arrived last year under a US$375 million deal signed in 2022. India shipped the second of the three contracted BrahMos missile batteries to the Philippines in April this year.

Back in June, Manila signed a US$ 700 million deal with Korea Aerospace Industries (KAI) to acquire 12 upgraded FA-50 fighter jets to strengthen the country’s air defence and power projection in the contested South China Sea. The new FA-50 Block 70 jets, expected to be delivered between 2026 and 2030, will be equipped with an Active Electronically Scanned Array radar, aerial refuelling capability and advanced air-to-air and air-to-ground weapons systems, according to KAI.

The Philippine Air Force currently uses the FA-50 for both air patrol and strike missions. Manila bought 12 FA-50s in 2014 but only eleven remain in service after one crashed in March during a mission in the southern Philippines.

In March, Washington announced it had approved the sale of $5.58 billion (P318 billion) worth of 20 F-16 multirole fighters to Manila. However, Philippine Ambassador to the United States Jose Manuel Romualdez admitted the potential was put on hold due to budget constraints. “We are looking into local and foreign financing. And then we’re also looking at foreign financing. In fact, we have had some offers already,” he said.

Domestic Capabilities

As Manila continues its effort in acquiring new and modern weapons systems to boost its defence capabilities, it requires a robust defence industry to support the military modernization.

Defence Secretary Gilberto Teodoro has restarted the military’s Self-Reliant Défense Posture (SRDP) or Republic Act No. 12024 to create a local supply chain to support the military’s weapons system requirements.

In October last year, President Ferdinand Marcos Jnr signed the SRDP Act, aimed at strengthening the country’s defence industry by boosting local production of equipment such as materiel and ammunition.

Focusing on research and development, the SRDP Program will promote innovations and technological breakthroughs in the defense industry and dual-use technologies, while mandating the Department of National Defense to prioritize the procurement of locally made materials.

It also exempts local defence companies supplying products to the DND or other government agencies from the Single Largest Completed Contract requirement, as well as from the rule that a product must first be used by at least two foreign militaries before the Philippines can acquire it.