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The Philippines' Department of National Defense (DND) is advocating for the removal of the $300 million cap on foreign loans and the 15-year limit on the Armed Forces of the Philippines' (AFP) modernization program. Defense Assistant Secretary Erik Dy stated that current financing restrictions hinder the acquisition of high-cost defense systems.

The DND wants to shift towards needs-based acquisitions rather than fixed timelines. The Philippine military's modernization, initiated in 2012, has a budget of about $35 billion over the next decade. Recent reports indicate a continued Chinese presence in the disputed Scarborough Shoal, although no new land reclamation activities have been observed.