MANILA – Department of National Defense (DND) Secretary Gilberto Teodoro Jr. has called on business leaders to assist the national government in developing “creative financing solutions” to alleviate the financial burden of the Armed Forces of the Philippines’ (AFP) ongoing modernization program.

Speaking to the Management Association of the Philippines (MAP) on Wednesday (10 July 2024), Teodoro highlighted the significant resources required for the AFP’s continuous modernization efforts. He emphasized the need for the government to balance spending on the military with other essential areas like infrastructure, social services, and education.

“We need to find off-budget, non-traditional financing sources for modernization, avoiding old models like the Bases Conversion and Development Authority (BCDA) where land was traded for modernization. I urge your assistance in devising creative financing strategies that allow us to spread out financial commitments, making them more manageable for the national government,” Teodoro stated.

He further explained the necessity of bolstering the country’s defense amid global geopolitical challenges such as the situations in Ukraine, the Red Sea, and the tensions in the West Philippine Sea, which have affected business cycles in the Philippines and undermined confidence in regional stability.

“These are realities we must confront as a nation. Volatility is a constant in geopolitics, and we must adapt accordingly,” he emphasized.

Teodoro also underscored the importance of enhancing the Philippines’ credible deterrent posture. He noted that the new Comprehensive Archipelagic Defense Concept aims to secure not just the land territories of the Philippines but also its exclusive economic zone and other areas under its jurisdiction.

He dismissed claims that the increased frequency of AFP’s bilateral and multilateral training exercises is a preparation for war or a provocation. “That is not true and it unnecessarily scares our people. The truth is, the AFP has never trained to the level it should. It has never tested its equipment adequately to ensure its effectiveness,” he clarified.

Teodoro expressed gratitude to the members of MAP and the private sector for their ongoing support of the AFP, especially following the June 17 aggressive actions by the China Coast Guard in Ayungin Shoal.

(el Amigo/mnm)