Philippines’ military upgrade gets boost from US$500 million aid amid South China Sea row

A recent announcement by the United States to allocate half a billion dollars in military funding to the Philippines is seen as timely by analysts as Manila is facing financial constraints to address the complex challenges posed by the South China Sea dispute.

Analysts say the financing is critical in enhancing the Philippines’ military infrastructure, troop capabilities, diplomatic initiatives and overall deterrence.

On Tuesday, US Secretary of State Antony Blinken and Defence Secretary Lloyd Austin, who were in Manila for the annual 2+2 Ministerial Dialogue with their Philippine counterparts, announced the US$500 million in military aid from Washington.

Blinken told a joint news conference after the meeting that the money would be used to “boost security collaboration with our oldest treaty ally in this region” and help modernise the Philippine armed forces and coastguard.

Asked by reporters how Manila would spend the funds, President Ferdinand Marcos Jnr’s defence secretary, Gilbert Teodoro Jnr, said the priorities of both countries would be outlined in a new bilateral security road map.

“Naturally, a lot of our inherent hardening capabilities are included, like cyber capabilities and the like. These and all Enhanced Defence Cooperation Agreement [EDCA] investments will serve to secure the Philippines’ credible deterrent posture,” Teodoro said.

First signed in 2014, the EDCA allows the US to rotate troops into the Philippines for extended stays and operate facilities in Philippine bases. In February 2023, Marcos Jnr increased the number of EDCA designated bases to nine.

Around US$128 million of the funds would go towards EDCA infrastructure projects, including boosting disaster relief response measures, according to Blinken.