Philippines may become region’s ‘defense industry hub’

Philippines President Rodrigo Duterte brandishes an AK-47 assault rifle as Russian minister of defense Sergei Shoigu applauds. Russia is weighing up a possible partnership to manufacture AK-47 rifles in the Philippines. (Reuters)
Updated 20 September 2018
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Philippines may become region’s ‘defense industry hub’

  • Israel wants to manufacture UAVs in the Philippines
  • Russia and South Korea looking for arms and defense manufacturing facilities

MANILA: The Philippines may become the region’s defense industry hub after several countries expressed an interest in basing their arms and defense manufacturing facilities in the country.

Among the facilities are firearms and force protection plants, as well as ones for aviation maintenance, repair and overhaul.

Department of National Defense (DND) spokesperson, Arsenio Andolong, cited at least three countries — Israel, Russia and South Korea — as among those with a keen interest to undertake such projects.

However no agreement has been signed yet and proposals are still in the exploratory stage, Andolong said.

There are plans, however, to create a zone processing defense material at the 370-hectare Government Arsenal (GA) in Limay, Bataan. It will be called the Government Arsenal Defense Industrial Economic Zone (GADIEZ), which will accommodate foreign defense firms that want to establish their manufacturing plants in the Philippines.

With Israel, negotiations have been ongoing. “It all began when we purchased our latest acquisitions from them, the force protection equipment during the time of (then Defense Secretary Voltaire) Gazmin,” Andolong said.

“They became more aggressive when we started doing market research for the many things that we wanted. In one of our meetings the plan to put up an export processing zone for war materiel was discussed and that’s when they expressed interest,” he said.

But Israel now changed its focus; they now want to enter into partnership with Philippine Aerospace Development Corporation.

An agreement has yet to be signed however between the Philippine government and an Israeli firm for its entry through aircraft repair.

“I think eventually it will lead to setting up a UAV manufacturing facility,” a highly placed source said.

Russia, meanwhile, is more likely to have a firearms factory in Bataan province, in central Lozun region.

That is despite the ceremonial signing of a Letter of Intent (LoI) of Silver Shadow Advanced Security Systems (SASS) and Rayo Illuminar Corporation (RIC) to “explore opportunities in the manufacturing and refurbishment of small arms and ammunition,” during Duterte’s recent visit to Israel. The project is estimated to be worth $50 million.

Russia, according to Andolong, has been sending representatives to the country to discuss their offer for a joint production facility to produce Russian assault rifles, or AK47s.

“The Russians verbally communicated that they would like to go into a partnership with the GA to manufacture AK47 rifles in the Philippines. But at this time it’s still a verbal proposal. The Department of Budget and Management (DBM) has required them to submit a feasibility study.”

A proposal by a South Korean firm that also wanted to set up a firearms factory in the Philippines was put on hold after they gave terms and conditions that were not acceptable — such as “there will be capitalization from the government.”

“So everything is still fluid but Russia is in the running because they are offering many nice goodies,” the DND spokesperson said. “Like the submarines, for example; they said if the Philippines can’t afford to purchase then they can give a soft loan to finance it. And they also mentioned about packages they can use to start up the business.”

Andolong said that the reason that these countries chose the Philippines to set up their facilities was mainly because “they want to create a hub here in the Southeast since they don’t have a presence here yet.”

“It may also be “because of our location. Aside from that we are I think the first Southeast Asian country who offered this,” he said.

“The Philippines is close to many potential markets of Russia and Israel, because these two countries, their main exports really are armaments and they have no footprint in this region,” he said.


Somali militant-turned-politician arrested before regional vote

Updated 13 December 2018
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Somali militant-turned-politician arrested before regional vote

MOGADISHU: A former senior Somali militant leader was arrested on Thursday, the government said, less than a week before he was scheduled to run for a regional presidency.
The government accused Muktar Robow, who defected from the extremist Al-Shabab movement last year, of “organizing a militia” in Baidoa, the capital of the southwestern Bay region, and seeking to “undermine stability.”
“These actions indicate that he never relinquished his extremist ideologies and is ready to harm the Somali people again,” the government said in a statement.
Authorities had been attempting to prevent Robow from standing in the December 19 election because he remains subject to US sanctions for his time as deputy leader of Shabab.
The Al-Qaeda affiliate Shabab has been fighting to overthrow the internationally backed government for more than a decade.
Police sources speaking on condition of anonymity told AFP that Robow had been arrested in Baidoa and taken to the capital Mogadishu.
Baidoa residents told AFP that hundreds of supporters took to the streets in protest of the detention of Robow, who enjoys the support of several clans and is regarded as a serious candidate for the region’s leader.
Sporadic gunfire was heard in the city, the residents said.
“This is a violation of democracy, Robow was standing in his region and his people wanted him. The government has no right to arrest him, this will lead to violence,” said Mohamed Sheik Ali, a Baidoa resident told AFP.
“The people are burning tires and the police are firing gunshots to disperse them. There is gunfire and there are casualties as well,” said Osman Adan, another witness.
“Armed militia and supporters of Robow have reportedly clashed with the police and the situation in town is tense as we speak,” he added.
Robow’s run for office has exposed the tensions between Somalia’s federal states, which want greater autonomy from a national administration keen to safeguard its central powers.
Robow defected from the Shabab in August last year. For a time the US government had offered a $5 million (4.4 million euro) bounty for his capture.
In 2013 Robow split from former Shabab leader Ahmed Abdi Godane and sought refuge in the nearby region of Bakool, without completely breaking off links to the group.
Forced out of Mogadishu in 2011, the Shabab have since lost the bulk of their strongholds though they still control vast swathes of mainly rural zones from where they launch guerilla operations on government, security and civilian targets.