SEN. Panfilo Lacson said the Department of National Defense (DND) should develop cost-effective defense capabilities because the Philippines cannot match the military spending of China.
“There seems to be a glaring disparity in our defense spending compared to our regional peers, particularly China. Their defense expenditure is 52 times that of ours — about $335 billion or P21 trillion. How do we compensate? How do we do a David against a Goliath in this regard? There is no choice for us but to improvise,” Lacson said during a Senate Finance Subcommittee hearing on the DND’s proposed 2027 budget on Monday.
“We should embark on a similar program that is less costly but effective. Aside from alliances, including mutual defense treaties, status of visiting forces agreements and our treaty with France, we cannot solely rely on our allies because they have their own national interests to contend with in the first place,” he added.
The DND is seeking P324.632 billion under the proposed National Expenditure Program, including P312.777 billion for the Armed Forces of the Philippines (AFP).
Lacson added that the DND may need to consider cutting losses from some off-budget revenues including "golf course tourism," if it projects P2.5 billion receipts, yet P2.9 billion in expenditures.
"If this is the case, we might as well close the golf courses," he said, to which Teodoro replied they may be constrained to stop that practice due to base security issues, or to scale it appropriately.
Teodoro noted that China’s reported defense spending could be understated, saying that some funding goes to its maritime militia and China Coast Guard, which he said are linked to the People’s Liberation Army but are not officially included in reported military expenditure.
“There is no substitute but to build a level of resilience which will make it very unattractive for them,” Teodoro said, referring to the need to make the Philippines an unattractive target for aggression.
"We never match China in pound-for-pound capability but we will make the decision calculus as unfavorable as possible. That is the goal," he added.
Meanwhile, Lacson pushed for a deeper look into a possible link between sleeper agents and the potential misuse of the late birth registration system.
Teodoro said that some of the late registrants are "second-generation" cases, having been registered by their parents who entered the country earlier. He cited dismissed Bamban Mayor Alice Guo as an example.
Lacson asked Teodoro to follow up on the analysis of surveillance equipment seized during anti-espionage activities, including a Chinese national arrested near the Commission on Elections in Manila in April 2025, and another arrest made near AFP headquarters in Camp Aguinaldo.
Lacson, the author and principal sponsor of the National ID law, said the proper implementation of the National ID could help strengthen identity verification and authentication.
"I don't think this is being implemented because of failure in full implementation. I don't want this to be a dead letter law," he said.
Lacson commended Teodoro for defending the Philippines’ position on the West Philippine Sea in international forums.
“In the forums he attended, no one can match Teodoro’s brilliance. That’s why those he stood up to try to get back at him by way of troll attacks. So I second the motion in commending you for standing up in a manner where no one can rebut our position,” Lacson said.
