ARS Editorial Staff

11 Jan 2022

"In recent years, the Philippines has developed a keener sense of its national security and has endeavored to augment its defense posture. The final Kwentong Mandaragat webinar of 2021, held on 16 December, brought together experts from the Philippines and abroad to discuss the feasibility and potential impacts of submarine acquisition... Whether the Philippines pursues submarine acquisition or not, these decisions must be made after extensive consultation and cooperation with allies and partners, and after careful consideration of the recommendations provided by international experts."

The Foundation for the National Interest (FNI) together with Amador Research Services (ARS) continues the Kwentong Mandaragat webinar series with the subject of the Philippines’ submarine acquisition. The webinar titled “The Philippines’ Submarine Acquisition: Costs, Opportunities, and Learning Curve” was held last 16 December 2021 and highlighted the nature of the submarine ecosystem, the various considerations the Philippines needs to decide upon, and the potential impact on the Philippine defense posture.

The webinar was designed to provide an overview of the submarine ecosystem, the considerations
and costs involved, and the implications for the Philippines.

A major policy recommendation is to lift stresses and burdens on the Philippines' security and economic machineries by achieving four critical conditions:

1. That the [submarine] program does not dampen consumption and private investments, hence, additional public burden – tax increases – need not be imposed;
2. That the program does not solely rely on annual appropriations that may entail special taxation;
3. That revenues are generated in industries with long-term payouts (i.e., offshore oil exploration, offshore mining, and government and real estate management); and
4. A model for industrial offsets that can generate real revenues in the long run is developed.

Examining the Feasibility of the Philippines' Submarine Acquisition: Executive Report