The Republic of the Philippines is an archipelago of more than 7,000 islands located in the western Pacific Ocean and has a coastline of 36,289 kilometers and has a population of over 103 million people. With political problems in the region coupled with its fast growing economy, the Philippines has now become the focus of the international Defense, Security and the Civil Defense Industries.
The World Bank forecasting an economic growth of 6.9% for 2017 and 2018 confirms that the Philippines has enjoyed strong growth due to strong domestic demand and the government’s pledge to boost infrastructure spending. Manila is targeting 6.5-7.5 % GDP growth for 2017.
Sustained high non-agricultural growth and effective government programs are helping to improve the welfare of the poor. With solid macroeconomic fundamentals and significant fiscal space in place, the Philippines can now accelerate the reforms needed to achieve more inclusive growth to reduce poverty and boost shared prosperity.
Bloomberg recently reported that the Philippines, gifted with a young population and supported by $50 billion of revenue from remittances and outsourcing, plus an additional boost from President Duterte’s $160 billion-worth of infrastructure projects covering 64 big-ticket infrastructure projects in the pipeline will create many jobs and will undoubtedly reduce unemployment. The International Monetary Fund estimates the Philippine economy to be worth $311 billion.
On December 11, 2012, Republic Act no. 10349 known as the ‘AFP Modernization Act’ under then President Aquino came into force. It is a 15-year defense modernization program with initial funding of 75 billion pesos being allocated for the first period of the program. Unlike previous defense modernization efforts in the Philippines, this time, contracts are being awarded and money is being spent. With the First Phase of the Modernization Program almost fully completed, the Agencies have now embarked on the “Second Horizon” of the Program. All of these have resulted in the Philippines rapidly becoming one of the most active and progressive defense and security marketplaces in Southeast Asia.
The importance of the Philippine defense market is reflected by the decision of all of the major stakeholders in the Defense Modernization Program to continue to actively support and endorse ADAS 2018.
Look up the Market Potential and the Modernization Program of the Philippine Armed Forces to find out more.