The Philippines is facing a challenging situation as it aims to modernize its military amidst escalating tensions in the South China Sea. President Ferdinand Marcos Jr. approved a bold 1.39 trillion peso ($24.95 billion) modernization plan for the Armed Forces of the Philippines, shifting focus to external defense, particularly in the West Philippine Sea. However, a recent 16% budget cut by the Philippine House of Representatives for 2025 raises concerns about the military’s ability to defend national interests in disputed territories.
Despite setbacks, the government is dedicated to enhancing its defense capabilities. The proposed 2025 budget allocates 204.4 billion pesos ($3.67 billion) for defense programs, with an additional 50 billion pesos ($897.34 million) for the revised modernization plan, emphasizing external defense. The Philippine Coast Guard, crucial for operations in the South China Sea, will see a 6% budget increase.
Defense Secretary Gilberto Teodoro Jr. has suggested innovative financing solutions like ‘buy-now-pay-later’ schemes to address funding challenges and bridge the gap between modernization goals and budget constraints. These efforts are critical as the Philippines navigates regional tensions and upholds sovereignty in contested waters.
