Senate President Francis ‘Chiz’ G. Escudero sees the Philippines taking a major step toward an independent foreign policy with the development of the local defense industry through the revival of the Self-Reliant Defense Posture (SRDP) program.
Escudero said the SRDP, which will be signed into law by President Ferdinand Marcos Jr. tomorrow October 8, 2024, will “have a huge impact on the economy because not only will it create new jobs but also result in foreign currency savings for the government.”
“It is high time for the Philippines to reduce its reliance on its allies for the supply of its defense requirements. We have the capability to produce material that matches the quality of our international suppliers and with the right amount of support, they will one day be able to scale up their production and supply 100 percent of our needs,” Escudero said.
A priority measure under the Philippine Development Plan 2023 to 2028 and the Legislative-Executive Development Advisory Council, the SRDP seeks to ensure the country’s defense requirements are met through the development of the domestic defense industry.
Preference will be given to domestic suppliers and in-country enterprises and only in cases when the manufacturing, servicing, or operation of materiel or components cannot be done locally will foreign bidders be considered.
The SRDP provides incentives to manufacturers to establish or relocate production or assembly of materiel in the Philippines, while ensuring protection of local counterparts against unfair competition.
Another key provision in the law is on countertrade and offset, which Escudero said will “promote technology transfer” that will “ultimately result in the improvement of processes, standards, and efficiency in the manufacturing of materiel.”
“Isa sa hangarin ng SRDP ay ang pagiging exporter ang Pilipinas ng mga kagamitang militar. Sa pag-unlad ng lokal na industriya, lalawak ang kanilang merkado at lalaki rin ang kita ng ating mga mamamayan na kabilang sa mga industriyang ito,” he said.
The law creates the Office of the Undersecretary for Defense Technology Research and Industry Development within the Department of National Defense (DND).
The SRDP program originated from Presidential Decree 415 on March 19, 1974, and was later amended by PD 1081 on February 1, 1977.
During the public hearings of the Committee on National Defense and Security, Peace, Unification and Reconciliation on the measure, the DND noted that the Philippines relies primarily on government-to-government procurements for its requirements. The estimated value of military-related imports was $305-M in 2022.
“Isang malaking hakbang din ito sa pagpapatupad ng hangarin ng administrasyong Marcos na magkaroon tayo ng independent foreign policy. We will no longer be at the mercy of the whims of our ally suppliers whose sentiments toward us could shift abruptly with a change in leadership,” Escudero said.
Senate Bill No. 2455 was sponsored by Senate President Pro Tempore Jinggoy Estrada and has as its authors Senators Juan Miguel Zubiri, Joel Villanueva, Loren Legarda, Ramon Revilla Jr., Imee Marcos, and Estrada.