In this webinar, Professor Herman Joseph S. Kraft, Mr. Jesse Pascasio and Mr. Meneleo Carlos III discuss and examine the possible contributions of the private sector and commercial firms in improving Philippine national defense.
PHILIPPINE STUDIES PROGRAMME WEBINAR
Thursday, 9 May 2024 – Since the end of the Cold War, the Philippine military has undertaken multiple cycles of defense modernization that sought to create a modern armed forces capable of a credible defense posture in the 21st century. Reforms were sought not only to infuse a higher degree of professionalism and civilian control as well as the enormous challenge of capacity-building, equipment procurement, and more high-quality training. In recent years, there is increasing attention to tap the private sector and make it an active role-player in the country’s defense build-up. Under the Marcos Jr. Administration, the Armed Forces of the Philippines (AFP) plans to realize the Comprehensive Archipelagic Defense Concept (CADC) using a whole-of-nation approach that includes the private sector.
The ISEAS-Yusof Ishak Institute invited Professor Herman Joseph S. Kraft, Mr. Jesse Pascasio and Mr. Meneleo Carlos III for the webinar “Building a Defense Industry in the Philippines: Challenges and Opportunities”. The webinar was moderated by Dianne Faye C. Despi from the University of Delaware and the Armed Forces of the Philippines. Around 127 participants attended the webinar.
The panel was composed of the following:
- Professor Herman Joseph S. Kraft is a Professor at the Department of Political Science at the University of the Philippines at Diliman, Quezon City. He is concurrently a Convenor of the Strategic Studies Program of the Center for Integrative and Development Studies at the University of the Philippines. His research expertise is on international security, ASEAN regionalism, and strategic studies.
- Mr. Jesse Pascasio is a defense analyst in the Philippines who has served in various offices in the Office of the President, Department of National Defense, the Armed Forces of the Philippines, and the Philippine Navy. His focus areas are on strategic policy analysis, defense economics, marine policy, and maritime security. He was also a member of various legislative technical working groups on strategic marine and defense issues.
- Mr. Meneleo Carlos III is Chairman of the Shipyard Association of the Philippines (SHAP). Since 2016, he is also President of the Philippine Iron Construction and Marine Works, Inc. He received his education from Ateneo de Manila University & Cornell University.
Prof. Kraft first gave the audience an overview of the Philippine defense industry, such as its current trajectory and invested projects. He then argued that the country’s defense should consider the constantly evolving strategic environment of the Philippines, which has been predominantly influenced by the ongoing China-US rivalry. Prof. Kraft also recognized the need to build a credible defense posture by taking geography into consideration as well as emphasize the country’s capacity to project its presence in its maritime domains. Moreover, he also elaborated that building a credible defense posture will take some time to fully develop. Prof. Kraft explained several factors contribute to a robust defense posture, such as: Technological development relative to geography and security, extensive R & D, and education—particularly STEM track students. He wrapped up his overview by proposing that there is a need to increase collaboration between the civilian and military sectors as well as focus on the external aspect of Philippine security, having been troubled with internal threats such as insurgencies.
Mr. Pascasio then proceeded to discuss the prospects for international partnerships for a Philippine self-reliant defense program. His presentation had four main points. Mr. Pascasio first argued that a self-reliance program is driven by a state’s threat perception, using South Korea, India, Japan, and Europe as examples. In the same line, he echoed Prof. Kraft’s statement regarding increased civil-military collaboration; Mr. Pascasio stated that successful self-reliant programs are embedded in commercial and industrial sectors. The second point of his presentation argued that there are four elements of a self-reliant industrial base, namely: (1) The defined role of government (2) Private sector investment (3) Innovative financing sources (4) Insurance for investment risks. Meanwhile, his third point emphasized that successful programs require international cooperation, connectivity, complementarity, and interoperability. Lastly, Mr. Pascasio argued a major driver of self-reliant programs is regional flashpoints; if the country’s defense posture will be internal, it will not develop—echoing Prof. Kraft’s point regarding the Philippines’ need to focus on external security.
Mr. Carlos of the SHAP then discussed the various aspects of the shipyard industry in the Philippines, such its brief history, its scope and investments, and its importance. According to Mr. Carlos, there are three main clusters of shipyards in the Philippines, particularly at Manila Bay, Cebu Strait, and General Santos. He also discussed the recent implementation of the Maritime Industry Development Plan 2028 (MIDP 2028) and other industrial developments such as the redevelopment of the previous Hanjin Philippines facilities and proposed maritime hubs. Mr. Carlos then discussed the prospects of shipyards to participate in defense building. He proposed there should a road map to self-reliance based on the framework of assembling, building, sustaining, and designing. Mr. Carlos also emphasized the importance transferring knowledge on operating considerations, design calculations, and system development processes, among others. He then argued that there must be a separation of procuring specialty items—such as sensors and weapons—from the rest of ship-building and integration contract. Governments must contract directly with specialty supplies in order to reduce risks to domestic systems.
The Q & A portion mainly revolved around the sustainability of the future of the Philippine defense industry, both in terms of economic capability and research. In terms of having economic resources, all three speakers collectively argued that at present, the Philippine government is capable of funding the development of the country’s defense industry though some factors must be considered. Prof. Kraft noted that a caveat of investing more in defense-building might mean a bigger economic debt for the Philippines, while Mr. Pascasio emphasized that the government should know its role when collaborating with private companies vis-à-vis defense development. In terms of R & D, Mr. Pascasio reemphasized one of his previous points, and that is to let the private sector do its part on innovation while Mr. Carlos posited that defense procurement should have its own ecosphere and learn from the best practices. He also added that when purchasing, the government should buy capabilities over specificity.