AFP, PNP suppliers are wary of changes in PHL policy, with the change of government
An Indian manufacturer of body armor and military electro-optic devices said on Thursday that their main challenge in deciding to manufacture in the Philippines is the uncertainty of policy with the impending change of government.
“Continuity is the challenge of building a facility here in the Philippines. An administration only six years. A president can come and go soon, “said Anton Chan, Jr., Indian defense contractor, speaking at a press conference, according to a local representative of MKU Limited.fing
“Any investor will need continuity and a return on investment,” he said, referring to previous incidents such as the cancellation of a UK armored vehicle deal.
According to Manish Khandelwal, a director at MKU, “In addition to continuity, developing a supply chain is also a problem here.” “These are two issues that prevent us from setting up a manufacturing site here.”
“Supply chain challenges may involve small components, including materials and product delivery.”
The company is keen to explore opportunities in the Philippines, he said.
“We want to invest in building the capacity of the Philippine defense (industry),” said Mr. Khandelwal. The goal is “this is one of our commitments to the market.”
In 2017, the company supplied helmets to the Philippines that were used in operations in the southern Philippines.
MKU has exported body armor and night vision devices to the Philippine Army and the Philippine National Police (PNP) through the government’s international purchasing arm, the Philippine International Trading Corporation.
Mr Chan said the company would only set up a manufacturing site in the Philippines under a joint venture agreement with the government.
“The Philippines may not be interested in investing in or pursuing a joint venture agreement in the near future because the world FJos আন্ত Antonio Custodio, a security and defense consultant, cited increased demand and production as a result of the war between Russia and Ukraine.
“We have the potential to buy surplus defense equipment because of the recent increase in production around the world.”
He said the Philippine defense spending has historically been “driven” fiScale policy, not political priorities. “
“The government can’t increase its defense spending when it doesn’t have the budget to do so,” he said in a messenger call.
Mr Custodio said the government needed to eliminate inefficiency in procurement in order to attract investment.
He said the government should organize an industry conference to plan its defense procurement.
“In that sense, the government can create a roadmap that will allow the continuation of the defense program.” – Kyle Aristophier T. Atienja
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