The Duterte administration will jump-start its program to modernize the Philippine Armed Forces by developing defense industrial complexes through the Philippine Economic Zone Authority (Peza).

According to the investment promotion agency’s new director general, Charito B. Plaza, the country’s first defense industrial estate—initiated by the previous administration—is now being built in Bataan. Once completed, it will form part of the local arms industry that will produce weapons and equipment for the Armed Forces of the Philippines (AFP).

Plaza, a decorated military officer, said other defense industrial zones will also rise in other parts of the country, where global arms and military equipment makers will locate to buttress our arms-making and military equipment-manufacturing capability.

“This is not just for the transfer of technology. We have military-reservation areas that can be used as defense industrial complexes where global arms makers can locate,” Plaza told reporters during the seventh anniversary of property consultancy firm, KMC Savills recently.

The Peza is currently coordinating with the Department of National Defense  (DND) on the areas to be developed as defense industrial ecozones to determine viable locations. “I suggested we put up defense industrial complexes in vulnerable areas. There could be one in Palawan, facing the Spratlys; one in Zambales facing the Scarborough Shoal… I suggested to put up at least two in Mindanao,” Plaza said.

The Peza, an investment-promotion agency mandated to create special economic zones for export-oriented industries, said it is now talking to locators in view of the defense zone being constructed in the Special Economic Zone in Mariveles, Bataan.

“We have an existing arsenal owned by the Armed Forces of the Philippines and the DND. We’re inviting global players in the defense industry to come over. It will be manufacturing; we’re thinking of drones, equipment, both hardware and software needed by the AFP and police,” Plaza said.

Plaza added that he already promoted the Philippines in a recently held military and police exhibit in Qatar, participated in by defense suppliers of about 86 countries.

The Peza is finalizing a list of available areas for defense industrial complex development to be ready by January.

With the administration’s push for an independent foreign policy, the Peza said it is encouraging defense industry players from other countries to consider the Philippines as a site for arms and defense-equipment manufacturing.

Plaza said these defense industrial economic zones will have to secure the approval of President Duterte as mandated by the Special Economic Zone Act.

Source: www.businessmirror.com.ph