By Kenneth Christian L. Basilio, reporter
Should the Philippine government secure binding technology-transfer provisions if the US allows construction of a US-backed ammunition facility in the country, political analysts argued that the project should primarily advance Manila's self-reliant defense posture rather than act as a supply-chain node for Washington.
The US Defense Department said a defense industry partnership in the Indo-Pacific region is evaluating the Philippines as a potential host for an ammunition production site aimed at supporting weapons widely used by military aircraft and ground forces. The plan is part of a broader effort to spread manufacturing capacity among partner states in the region.
Michael Henry LL said, “It should be treated as a self-reliant defense initiative.” Yusingco, a senior research fellow at the Ateneo Policy Center, said in a Facebook Messenger chat. “It cannot be presented simply as foreign direct investment or an accommodation to US interests.”
President Ferdinand R. Marcos Jr. signed a law in 2024 directing the government to adopt a defense stance relying on domestic manufacturing, as the Philippines looks to strengthen its production base amid tensions with China in the South China Sea.
The Self-Reliant Defense Exchange Revival Act allows foreign companies to operate through joint ventures with local companies, provided Filipinos retain at least 60% ownership.
It also offers incentives, including exemption from value added tax and import duties on raw materials and equipment used for defense manufacturing, reducing startup costs while promoting local participation.
Sherwin E. Ona, international fellow at Taiwan's Institute for National Defense and Security Research, said the proposal provides an opportunity to jump-start the Philippines' self-reliance program, which has faced the constraints of limited capital and industrial depth.
Analysts say the government should emphasize on extensive technology transfer to ensure lasting benefits. “Establishing a manufacturing facility should be part of a broader effort to build the defense industry in the country,” Mr Yusingko said. “There should be a complete transfer of production know-how to Filipino partners.”
That requirement, he said, should include practical training throughout the production chain, so that local workers can gain expertise in loading, assembly and packaging, rather than being limited to support roles.
Workforce development is essential if the facility is to contribute to industrial capacity rather than operate as an enclave.
Mr. Ona said producing ammunition domestically would improve supply stability for the Philippine military, especially for calibers used extensively by its air and ground units.
He said Manila should negotiate firm purchase agreements so that a portion of the production is reserved for the armed forces at predictable prices.
The government may also study the feasibility of producing howitzer rounds at the site, expanding its market and aligning the capacity with the Army's modernization plans. Mr Ona said that over time, as skills and supplier networks expand, related industries could emerge, including unmanned systems manufacturing.
The Pentagon said the 16-nation Partnership for Indo-Pacific Industrial Resilience, which includes the Philippines, is also examining co-production arrangements for aerial drones, indicating that ammunition manufacturing could be an element of a broader industrial footprint in the region.
China has criticized this proposal. Its Foreign Ministry warned last week that ammunition production in the Philippines could destabilize the region and invite “the chaos of conflict and war”, Agence France Presse reported.
Beijing claims sovereignty over much of the South China Sea based on a so-called nine-dash line map from the 1940s. The claim overlaps with the exclusive economic zone of the Philippines, where Chinese coast guard and maritime militia vessels have penetrated those claims, despite a 2016 ruling by a U.N.-backed arbitral tribunal. China has rejected this decision.
Opposition has also emerged within the Philippines. Leftist organizations and a group of minority lawmakers in the House of Representatives said the facility could expose the country to retaliation from America's adversaries.
“The Philippines has a mutual defense treaty with the United States, so there is always a risk of retaliation from Washington's adversaries, whether or not ammunition facilities are established in the Philippines,” Francis Rico C. Domingo, an associate professor in the political science department of the University of the Philippines, said in an e-mailed response to questions.
While Manila could not quickly achieve defense self-reliance, he said, the government must ensure that the military is operationally and strategically aligned.