Israel’s defense industry loses major Asian customer

Israel’s defense industry loses major Asian customer
Elbit tanks in Philippines credit: Facebook page

Philippine Defense Minister Gilbert Tudoro in Parliament in Manila announced yesterday that his boycott aims to stop the purchase of weapons from Israel. After that, after the political pressure on the government to stop the deals with Israel due to the war in the Gaza Strip.

The Philippines is an important agent for Israeli defense companies. According to the Stockholm International Peace Research Institute, between 2019 and 2023, the country was second around the world to buy weapons from Israel, which represents 12 % of the total. India was primarily, by 37 %, while the United States was third, by 8.7 %.

“We have learned a lesson.” Yesterday’s discussion in Parliament focused on a relatively small deal signed with Elbit Systems a month ago to buy 155 mm shells of up to 250 million Philippine pesos for ATMOS Howitzers that have been purchased long ago. This deal was concluded despite Tudoro’s announcement of the suspension of contracts. “It is simply a continuation of the current contracts,” he said.

The Philippines step may reflect the deep trends that affect Israeli defense exports in general. Figures from the International Defense Cooperation Directorate (SIBAT) appear in the Ministry of Defense that while Israeli defense exports reached 14.795 billion dollars last year, 11.7 % more than 2023 represents a double within five years, the sales rate in the Far East decreases during the year 48 % to only 23 %. Sales to Europe grew from 35 % to 54 %.

Tudoro said the Philippines did not buy new systems from Israel, but only equipment for current systems. “Getting the same systems will require a great allocation of modernization. So it was more wise to continue the current systems,” he said.

As part of the Military Modernization Program, the Philippine Navy promoted its fleet through contracts with Israeli companies. Exactly a year ago, the FAIC’s rapid attack craft of Israeli shipbuilding ponds received the RAFAAEL and Spike NLOS electric missile. Israeli cooperation was part of the Manilla’s Horizon 3 (2023-2028) to modernize its security forces. In the previous two programs, which included marine ships, aircraft and artillery, Israeli defense companies played a major role.

Tudoro admitted that his country’s army will continue to use the equipment purchased from Elbit Systems for another twenty years, but he said that this contract would be a test of the need to diversify the supply chain in the country. He said: “It was a lesson that was also learned for us in who we contract with, how we contract with him, and what we write in the contract. Therefore, at the present time, we are not in a situation that allows us to save the capabilities, and because of the arrangement that was made before, which may have been good at that time, we are now stuck in that.”

It was published by Globes, Israel Business News – En.globles.co.il – on September 17, 2025.

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