Department of Trade and Industry (DTI) Secretary Alfredo Pascual underscored the rapid expansion of the country’s aerospace sector.
The recent Philippine delegation to the trilateral meeting with the United States and Japan cited the success of Collins Aerospace Philippines, a division of (RTX) and a Philippine Economic Zone Authority-registered company as a testament to the industry’s successful operation and growth.
Collins Aerospace, which has operation in Batangas, has been a leading global aerospace company.
Initially focused on manufacturing aircraft interior components, it has diversified to engineering, oxygen systems manufacturing and aircraft components repair.
The company began manufacturing aircraft seats for Boeing, Airbus and Embraer in 2023, and its first shipment of seats to Airbus started in January 2024.
Pascual outlined attractive investment incentives and emphasized the government’s commitment to supporting the growth of the defense industry.
He listed recent legislative developments aimed at enhancing the nation’s self-reliance posture.
“We offer a compelling suite of incentives and are dedicated to facilitating collaboration between the private sector and the government. This partnership aims to strengthen our national defense capabilities while bolstering our aerospace industry,” said Pascual.
The Philippines is accelerating its defense modernization efforts led by the Department of National Defense.
The comprehensive Armed Forces of the Philippines (AFP) Modernization Program aims to bolster the military’s capability to address counterterrorism, maritime security, and internal threats.
The DTI said companies investing in the Philippine defense sector can avail of attractive incentives under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
Defense-related activities qualify for Tier 2 incentives, offering 15 to 17 years of benefits depending on the project’s location and market orientation.