Israeli defense firms lament a chill from erstwhile client Philippines

Israeli defense firms lament a chill from erstwhile client Philippines

JERUSALEM — Israeli defense companies have begun questioning their government about a chill in relations with the Philippines, as officials in Manila appear to be turning away from a longtime supplier of defense equipment.

The source of the bilateral freeze is murky, with some executives here blaming the Israeli government’s unwillingness to back Filipino sovereignty claims in the South China Sea.

The Israeli Ministry of Defense’s mandate of prioritizing equipment deliveries to Israeli forces amid the Gaza war – at the expense of international customers – also is to blame, industry officials have said.

“The competitors are already aware and have begun to act on it,” one executive told Defense News, speaking on condition of anonymity while discussing the sensitive matter.

Israeli companies were most recently observing the Manila chill during the DSEI Japan defense exhibition, which ran from May 21 to May 23, according to an Israeli industry insider who said Filipino representatives appeared interested in Japanese products instead.

The Philippines is the third-largest defense buyer from Israel, accounting for about 8.1% of total exports after the United States (13%) and India (34%). That is according to the Stockholm International Peace Research Institute (SIPRI) report from last March.

Defense purchases from Israel intensified during the period of Rodrigo Duterte as president of the Philippines. In his visit to Israel in September 2018 he said during a speech at a joint event with then-Israeli President Reuven Rivlin: “I instructed my military personnel that in the field of military equipment and weapons, there is only one country to buy from, and that is Israel.”

Among the Israeli defense systems purchased by the Philippines are the Spyder air defense systems from Rafael, Sabrah 2 light tanks from Elbit, Shaldag boats from Israel Shipyards, and Hermes-type drones.

Israeli defense companies declined to comment on the record. The Israeli Foreign Ministry wrote in a statement that “the issue is known and is in discussion with security officials and defense industries.”

A ministry spokesperson denied that Israel’s position on South China Sea claims is at the center of any disagreements.

The Philippine Embassy in Tel Aviv did not return a request for comment by press time.

Tzally Greenberg is the Israel correspondent for Defense News. He has experience reporting on economic affairs as well as defense and cyber companies.

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