Philippines Defence and Security Report Q4 2008

The Philippines continues to have numerous insurgent threats from militant Islamic groups including the Abu Sayyaf Group (ASG), the National People's Army (NPA) and the Moro Islamic Liberation Front (MILF). Peace talks have been ongoing but these discussions usually break down and no landmark agreements have yet been made.

The country's political system is moderately stable. Although President Gloria Macapagal Arroyo has been under intense international and domestic pressure, her position appears secure. Crucially, Arroyo retains the support of the military and her allies dominate the House of Representatives. Thus a full military coup against her would be unlikely to succeed.

Economically, defence expenditure has risen notably in response to growing security concerns. However, the government remains heavily reliant on foreign financial assistance, mainly from the US. Last year the Philippines' defence industry remained relatively small compared with other regional defence industries, especially Australia and Singapore. In Q407, the government announced the creation of the new Department of National Defence (DND). As part of this initiative the government is now seeking to enhance the capabilities of the armed forces through manufacturing its own weapons.

Recently, we have seen less international media coverage of security in the Philippines as situations in Myanmar and China dominate. Nevertheless, the broader international community has continued to work quietly alongside the Philippine government to promote domestic stability. For example, in July 2008 the Philippine Government signed a partnership with the Canadian government to strengthen the country's disaster response capability. Other international support is ongoing.