Israel defense firm eyes deals in Philippines military upgrade

Israel Aerospace Industries Ltd. aims to clinch contracts under the Philippines’ ambitious military upgrade that seeks to bolster the nation’s defenses in the disputed South China Sea.

One of Israel’s major defense companies has held talks with Philippine officials on supplying coastal and aerial defense equipment, Senior Vice President for Marketing for Asia and Africa Maxim Zemer said in an interview on Wednesday. The company also sees opportunities in Vietnam and Thailand, he added.

“We are working according to the requirements of the Philippines,” Zemer said on the sidelines of the Asian Defense and Security Exhibition in Manila, which was attended by Philippine Defense Secretary Gilberto Teodoro and military chief Romeo Brawner Jr.

President Ferdinand Marcos Jr. has approved a 2-trillion peso ($36 billion) modernization plan spread over the next decade. The modernization program aims to bolster the Philippine military’s naval, aerial and surveillance capabilities amid tensions with China over the disputed South China Sea.

“This region is understanding the threats. They see what’s going on in the other parts of the world. That war is going on in other parts of the world. They want to be ready,” Zemer said. But budgetary constraints and changes in government are challenges for the company, he added.

Asked if Israel’s conflict with Hamas has affected sales in Asia, Zemer said the state-owned company is supporting both the needs of the Israel military and overseas clients.

“That means that our customers will not suffer from anything related to what’s going on between Hamas and Israel,” Zemer said.