Czech defense and security companies are keenly eyeing the Philippines for the supply of their military hardware and equipment, the country’s natural and long expertise, just in time for the government’s efforts to boost the country’s defense capabilities.
Czech Prime Minister Petr Fiala is currently in the country leading a top-level Czech business delegation comprising of 20 companies largely involved in arms production, agriculture, renewable energy, IT and communications, financial services, among others. The Philippine is part of the Czech business mission to select countries including Indonesia, Singapore, Vietnam, Kazakhstan, and Uzbekistan from April 15-25.
In a speech at the joint meeting of the Philippine Chamber of Commerce and Industry (PCCI) and the Czech Chamber of Commerce on Monday, April 17, the visiting
Czech Prime Minister expressed optimism for a potential government to government deal between the two countries.
“We are a strong and reliable player in the defense industry, producing a range of military technologies from firearms to advanced radars,” the prime minister said in his message.
Among the Czech defense companies in the delegation are Colt CZ Group SE (the world’s largest firearms manufacturer), Excalibur Army s.r.o. (producer of wide range of military vehicles and equipment – APC, battle tanks, self-propelled howitzers, rocket launchers, engineering vehicles, etc.) and Excalibur International a.s. (export agency supporting complete portfolio of the Czechoslovak Group whether for military hardware, aerospace technology, project financing, etc), Omnipol a.s. (producer of NG turboprop transport aircraft, jet trainer aircraft, aircraft instruments and equipment, spare parts, and modernization projects), Rescue Trailers s.r.o. (producer of rescue trailers for the military), and, STV Group a.s. (manufacturer of ammunition and military material).
Other members of the Czech business mission include the Czech Export Bank, EGT Express CZ , s.r.o. (logistics and transport company), Export Guarantee and Insurance Corp., IQS Group s.r.o., PETROF, spol. s.r.o., PPF a.s., Phonexia s.r.o., ZDAs, a.s., Vrgineers Inc., TELMO a.s., TAMDA Foods s.r.o. SKODA Transportation a.s., Pamco Int. a.s., IQS Group s.r.o., FAIR Ltd., InClaris Consulting s.r.o., and Armex Group s.r.o.
On defense supply, Czech Chamber of Commerce President Vladimir Dlouhy noted that the security industry is Czech’s expertise that its firms have developed for a long time. Compared to military supplies from other countries, he noted that Czech is a member of NATO and their military equipment are already compliant with the NATO countries’ standards.
Dlouhy noted that defense is an important part of the Czech economy although they have other industries also such as construction, logistics, finance, agriculture, among others.
There were also three memoranda of understanding signed at the business meeting. One is between the PCCI and the Czech Chamber of Commerce; and two MOUs between Smart Citi Teknologi and Tesla Technologies for their Smart City project, and the Smart City and Traslovka agreement on technology solutions venture for the mining sector.
For its two MOUs, Smart Citi Teknologi President and CEO Mario Marcos, a second cousin of President Ferdinand R. Marcos Jr., said the first agreement formalizes the partnership of his Smart Citi Teknologi with Czech’s Tesla Technology for their Smart City project.
The second MOU is between the Smart Citi group and Traslovka to bring in technology that will make the mining industry more environment friendly.
Marcos explained that instead of mining nickel, copper and gold mining firms using chemicals for their extraction and refining operations, the Czech group is offering a better technology to be used for the first time in the Philippines.
Marcos expects the mining technology and equipment to be brought into the country in two months. He said they will be discussing with members of the Chambers of Mines of the Philippines.
PCCI President George T. Barcelon noted that the Czech had their first exposure in the Philippine business with the signing of an MOU two years ago for their participation in the country’s mass transport projects, but which did not materialize.
Barcelon, however, advised the group not to focus in the Metro Manila railway projects but to look at the railway projects in Mindanao and Visayas and to ensure completion of their projects during the timeframe of one administration.
On the defense cooperation potential, he said that Former Defense Secretary Eduardo Ano, who is now a member of the National Security Council, is expected to have some discussions with the Czech defense and security firms. Ano was also present at the business meeting with the Prime Minister.
While it would be mostly supply of military equipment, Barcelon said he urged the visiting defense firms to look at arms production in the country, noting that there is a local firm producing and even exporting rifles.
On agriculture, he said, it is mostly on the mechanization of local food production.
Meantime, the PCCI MOU with the Czech Chamber is a broad understanding on the exchange of information and more collaboration to facilitate two-way trade.
In 2021, bilateral trade volume between the two countries reached a total of $700 million. Philippine exports to Czech are mostly electronics products covered by the EU-GSP plus scheme.