Clearer rules sought for defense investors

MANILA, Philippines – Spurred by rising interest in defense-related investments, the Board of Investments (BOI) is preparing a consolidated guide to incentives and rules for companies seeking to position the Philippines as a defense manufacturing hub.

According to Ernesto Delos Reyes Jr., director of investments assistance services at the BOI, interest in the country’s defense manufacturing potential has grown—especially after the passage of the Self-Reliant Defense Posture Revitalization Act in 2024—although investors still face unclear permitting and licensing requirements.

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“(There is) rising interest; there are intents because we have that self-reliance activity,” Delos Reyes said in a mix of English and Filipino. “What they (investors) are looking for is clear guidance.”

He said the agency was working on a defense-related investment guidebook that would map out the permits, licenses and agencies that investors must deal with when entering the industry, including possible joint ventures with local firms.

The agency has prepared sector-specific guidebooks for strategic industries, such as renewable energy and digital infrastructure.

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Delos Reyes said the BOI was also looking to prepare similar consolidated guides for investors in critical minerals, electric vehicle assembly and manufacturing, and agribusiness.

For the defense-focused guidebook, he said the target was to release it this year.

De los Reyes said the BOI was working with the Anti-Red Tape Authority, Department of Trade and Industry’s Strategic Trade Management Office, the Philippine National Police’s Firearms and Explosives Office, Armed Forces of the Philippines and Department of National Defense in preparing the guidebook. INQ