Re-Horizon 3 is the program that would reorient the military modernization program to fit within a small defense budget. The revamped program costs $35 billion, or P1.75 trillion, for the expensive wishlist of two diesel-electric powered submarines, more than 12 multi-role fighter (MRF) aircraft preferably the F-16 C/D Block 70/72, an additional 12 FA-50 Fighting Eagle aircraft, two more corvettes or frigates, offshore patrol vessels, fast attack boats, S-70 Black Hawk helicopters, more air defense, surface/sub-surface and missile systems and cyber systems.

Amid the persistent external threats arising from the maritime conflict with China, the development of a credible defense posture had become a necessity. After two cycles of the Horizon program, however, our military remains woefully underdeveloped compared to our neighbors which all have robust defense armaments.

During the congressional bicameral conference committee hearings, fund allocations were adjusted, resulting in a P5 billion reduction in the modernization fund which was redirected to the ayuda programs and pork barrel projects of legislators.

Funding shortages have often led the Armed Forces of the Philippines (AFP) to seek suppliers other than the United States to procure defense equipment at lower prices while pursuing industrial cooperation at the government-to-government level.

The development of the country’s military industry has long been in the cards, but corruption in the form of kickbacks in procurements has held it back.

Included in Re-Horizon 3 is the development of a defense-industrial base and investments in research and development under the Self-Reliant Defense Posture Revitalization Act (SRDPRA) which was signed into law in October 2024.

The SRDPRA, however, contains vague language and lacks safeguards, which puts it at risk of continued corruption and exploitation by foreign companies.

The corruption in defense procurements has made the AFP overly reliant on foreign suppliers, rather than promoting domestic development.

Deals with international arms manufacturers, which often involve commissions or bribes, are far more lucrative than investing in local production.

Funds that could be used for technology transfers or local manufacturing are siphoned off or misallocated, which was how a substantial amount was lopped off the AFP budget in the bicam report.

The lack of transparency in defense contracts allows opportunists to prioritize personal gain over the national interest, creating a vicious cycle where a weak domestic industry is used as an excuse to rely on foreign suppliers, thereby perpetuating opportunities for kickbacks.

The corruption deters foreign and domestic investors from engaging in defense-related projects. Systemic corruption makes it risky for companies to commit to long-term investments, as they may face bureaucratic hurdles or unfair competition.

The absence of a domestic industry renders the AFP modernization a joke, as the country’s dependence on foreign purchases makes it vulnerable to the winds of geopolitics.

Only a domestic defense industry can create jobs, stimulate related sectors (e.g., electronics, materials science) and reduce reliance on costly imports.

History has shown that, given government support, a domestic defense industry, including the manufacture of aircraft and vessels, can thrive and flourish.

Embedded in the military and the government, however, are the arms contractors who will exert every effort to derail local production. The success of the Horizon program depends on the extrication of these crooks.