Philippines pushes bigger defence spending as China spat lingers
It wants to catch up with its neighbours at a time when its military assets are sustaining damage from frequent clashes with Beijing in contested waters
THE Philippines will continue increasing defence spending as it seeks private sector’s support in safeguarding the nation’s claims in the disputed South China Sea.
Defence Secretary Gilberto Teodoro said he has been pushing for his department’s budget to rise to more than 1 per cent of economic output, excluding military pensions.
The Philippines is trying to upgrade its defence capabilities and catch up with its neighbours at a time when its military assets are sustaining damage from frequent clashes with Beijing in contested waters. Defence budget was increased to US$4.8 billion in 2024.
The defence chief is also asking the private sector to structure the sale of debt instruments to raise funds that help support the South-east Asian nation’s claims in the South China Sea.
“It’s up to them to see what the appetite of the market is at any particular time,” he told reporters at the sidelines of a business forum on Wednesday (Jul 10).
The target buyers are investors looking to gain from a potential improvement in the country’s credit rating and other defence industry ventures, he said, adding that “there are a lot of creative ways” to raise funds.
“The important thing is to ease the fiscal position of the government and not sacrifice modernisation,” Teodoro said. BLOOMBERG
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