Marcos signs law boosting local defense industry
President Marcos signed into law on Tuesday a bill that aims to enhance the country’s defense capabilities through local resources and innovation to reduce its reliance on foreign sources and create military equipment tailored to its security challenges.
“For decades, our defense capabilities have relied upon what we could acquire from abroad. Every purchase, every negotiation, and every partnership — although necessary — reminded us that our strength depended on the supply chains and the interests of other parties,” he lamented.
Republic Act (RA) No. 12024, or the Self-Reliant Defense Posture (SRDP) Revitalization Act, will offer fiscal incentives ranging from tax breaks and government-backed financing to promote and encourage investments in the country’s defense technology and production, Mr. Marcos said.
Under the new law, locally owned companies will be given preference when it comes to the development, maintenance, and operation of critical military equipment.
The tax incentives are aimed at attracting foreign manufacturers to set up or move production to the Philippines.
“It’s a logical move forward for a country that finds itself at the fulcrum of geopolitical shifts and volatilities. At its core this act is about cultivating a robust and sustainable national defense industry,” the President said after signing the bill in Malacañang.
Multiple benefits
In Congress, Sen. Juan Miguel Zubiri highlighted the economic benefits of the SRDP Act, noting that the growth of a defense manufacturing industry will bring in investments, create jobs, and generate revenues for the country.
Senate President Pro Tempore Jinggoy Ejercito Estrada, chair of the committee on national defense and security, added that the new law is expected to enhance cooperation between the government, private sector and research institutions in developing new technologies.
The House of Representatives, according to Speaker Martin Romualdez, will make sure there is adequate budget for the full implementation of RA 12024.
Armed Forces of the Philippines spokesperson Col. Francel Margareth Padilla said the new measure would not only be about in-house production of arms and equipment but would also include cyber tools. WITH REPORTS FROM TINA G. SANTOS, JEANNETTE I. ANDRADE, NESTOR CORRALES AND REUTERS
