In photo: Collins Vice President and General Manager Alison Davidson, Department of Trade and Industry Secretary Fred Pascual, and International Government Relations Director Kyle Ballard

WASHINGTON, D.C.–On 12 April 2024, the Philippine delegation, led by President Ferdinand R. Marcos Jr. and Department of Trade and Industry (DTI) Secretary Fred Pascual, highlighted the rapid expansion of the country’s aerospace sector. They cited the success of Collins Aerospace Philippines, a division of (RTX) and a PEZA registered company, as a testament to the industry’s successful operation and growth in the country.

Since its establishment in Batangas, Collins Aerospace has been a leading global aerospace company, expanding its operations in the Philippines. Initially focused on manufacturing aircraft interior components, it has diversified its operations to include engineering, oxygen systems manufacturing, and aircraft components repair. In 2023, the company began manufacturing aircraft seats for Boeing, Airbus and Embraer, and its first shipment of seats to Airbus started in January 2024.

 In photo: (from the Collins Aerospace side) International Government Relations Director Kyle Ballard, and Collins Vice President and General Manager Alison Davidson; (from the Philippine side) PTIC Washington D.C. Commercial Counselor Kenneth Yap, Department of Trade and Industry Secretary Fred Pascual, and PTIC New York Commercial Counselor Benedict Uy

In his remarks, Secretary Pascual outlined attractive investment incentives and emphasized the government’s commitment to supporting the growth of the defense industry. The DTI chief also underscored 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,” highlighted Secretary Pascual.

To date, 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.

Companies investing in the Philippine defense sector can avail themselves of attractive incentives under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. Defense-related activities qualify for Tier 2 incentives, offering 15-17 years of benefits depending on the project’s location and market orientation.

Additionally, the DTI, through its Strategic Trade Management Office (STMO), is at the forefront of regulating the trade of strategic goods, ensuring streamlined export and import procedures. The STMO has already partnered with RTX/Collins Aerospace’s local partner, OnSemi Philippines, to facilitate the export of strategic goods. Companies like RTX/Collins Aerospace Philippines can also avail of the STMO’s Global Authorization license for streamlined global exports.

Stressing the DTI’s commitment to encourage investments in the aerospace and defense sector, Secretary Pascual said, “In partnership with the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA), we stand ready to assist companies seeking to invest and expand in the Philippines’ growing aerospace and defense industry.” ♦

Date of release: 13 April 2024