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INSIGHTS

Research and Markets: Philippines Defense and Security Market to See Substantial Growth

Research and Markets has added the "Philippines Defense and Security Report Q4 2010" report to their offering. The report provides industry professionals and strategists, corporate analysts, defense and security associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the Philippines defense and security industry.

Research and Markets has added the "Philippines Defense and Security Report Q4 2010" report to their offering.

The report provides industry professionals and strategists, corporate analysts, defense and security associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the Philippines defense and security industry.

The Philippines Department of Budget and Management proposed a substantial increase in defense spending to more than US$2.3 billion, a rise of 81 percent year-to-year. It is expected to be approved by parliament before the end of 2010. The increase is seen as a means to counter domestic insurgency as well as to contain China's military expansion.

The expenditure items will be $1.8 billion for personal services including military operations, $380 million for maintenance operations and $116 million for purchasing. $230 million will be allocated to the Air Force, more than $250 million to the Navy and $790 million for the Armed Forces headquarters. It is not clear whether some of this increased spending is actually a reworking of the existing budget allocation.

President Aquino has appointed Marvic Leonen, the Dean of the University of the Philippines' College of Law, as Chief of the Government's peace panel. Leonen's appointment will aid the Aquino administration in sealing a final peace agreement with the Moro Islamic Liberation Front, due to his expertise in Philippine indigenous law as well as natural resources law, two key knowledge areas that will be crucial for the talks in the coming months.

Communist rebels of the New People's Army (NPA) in August launched a spate of ambushes against the Philippine military and police, resulting in scores of deaths in places such as Northern Samar, Surigao del Sur and Negros Occidental. The most deadly attack was the strike on the police in Northern Samar, which led to the loss of the lives of eight policemen and a district official. Despite the strikes by the militants, the government will continue its efforts in holding peace talks with the NPA.

Although the Philippines is one of Asia's longest-established democracies, it is arguably one of the less mature ones. More than most other Asian states, the Philippines is prone to public unrest and either attempted military coups or rumors of such disturbances. There have been two “People Power” uprisings against corrupt presidents in 1986 and 2001, and several repeated attempts during the 2000s.

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