Philippines to buy India anti-ship missile system for $375M

The Philippines has finalised a deal to acquire a shore-based anti-ship missile system from India for nearly $375 million to strengthen its navy.

The country will receive three batteries, train operators and maintainers, and provide logistics support, Defence Secretary Delfin Lorenzana said in a Facebook post late on Friday.

The new anti-ship system will be delivered by Brahmos Aerospace Private Ltd under the deal negotiated with the government of India.

It was conceptualised in 2017, but faced delays in budget allocation and due to the coronavirus pandemic.

The system is aimed to deter foreign vessels from encroaching on the country's 200 nautical mile exclusive economic zone.

READ MORE: Xi: China won't seek dominance over Southeast Asia

Dispute over the South China Sea

The Philippines is in the late stages of a five-year, $5.85 billion (300 billion pesos) project to modernise its military's outdated hardware.

The hardware includes decades old warships from World War Two and helicopters used by the United States in the Vietnam War.

In 2018, the Philippines bought Israeli-made Spike ER missiles, its first-ever ship-borne missile systems for maritime deterrence.

Despite friendlier ties between China and the Philippines under President Rodrigo Duterte, Beijing has remained adamant in claiming large portions of the South China Sea.

The sea is a conduit for goods in excess of $3.4 trillion every year.

Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have lodged competing claims.

A 2016 international arbitration ruling, however, said the Chinese claims had no legal basis.