The Philippines, under increasing pressure from China’s growing assertiveness in the South China Sea, is moving forward with plans to strengthen its military posture. In a significant development, the Philippines is considering building a second, larger military base at Subic Bay, aimed at bolstering its naval and aerial capabilities. This strategic expansion will enable the country to project power and defend its interests in the contested waters more effectively.
Defense Secretary Gilbert Teodoro Jr., in a recent Senate hearing, outlined the government’s intent to create a new naval facility at Subic Bay. The base would be larger and more capable than the current Philippine Navy presence in the area. Teodoro was addressing lawmakers on the projected ₱254.1 billion ($4.5 billion) budget for the Department of National Defense (DND) for 2025, where he provided insights into the ongoing military upgrades.
According to Teodoro, the process of acquiring land within the Subic Bay Metropolitan Authority (SBMA) boundaries has already begun. He emphasized that President Ferdinand Marcos Jr. had directed him to expedite negotiations with the SBMA to secure the necessary space for the new Philippine Navy base.
“We have identified an area suitable for a main operating base. We have secured presidential approval to pursue the acquisition process, and we aim to complete it by the end of 2028,” said Teodoro. He added that the current Navy facility in Subic could be leased out to commercial entities, preserving income streams once the new base is operational.
This new base will play a crucial role in supporting the Navy’s future acquisitions, which include ten corvettes and frigates, all expected to arrive by 2028. The facility will also be a key element in Manila’s long-term strategy to develop additional Forward Operating Bases (FOBs) in Luzon, Visayas, and Mindanao, further enhancing the Philippines’ military presence in vital areas.
Why Subic Bay?
Subic Bay holds a special place in the Philippines’ defense architecture, both for its geographical advantages and its historical significance. Located on the western coast of Luzon, Subic Bay is only about 100 kilometers northwest of Manila, providing quick access to the contested Scarborough Shoal in the South China Sea. The bay’s proximity to Taiwan, just an hour’s flight away, and the South China Sea make it an ideal location for military operations.
This naturally deep harbor can accommodate a wide variety of vessels, from patrol boats to large naval ships, including aircraft carriers and submarines. Given these attributes, Subic Bay was a prime location for the U.S. Navy for nearly a century, serving as a major military hub until the 1990s when it was handed back to the Philippine government.
Since then, Subic has transformed into a commercial and industrial hub, though its military significance has never fully waned. In May 2022, the Philippine Navy leased the old Hanjin Heavy Industries shipyard for ₱1.1 billion annually, part of which it has already started using as a naval base. The strategic value of Subic Bay for military operations has only increased in recent years, particularly as tensions in the South China Sea have escalated.
South China Sea: A Hotbed of Tensions
The South China Sea has become one of the most volatile regions in Asia. China claims sovereignty over nearly the entire body of water through its controversial “nine-dash line,” which overlaps with the exclusive economic zones (EEZs) of several Southeast Asian nations, including the Philippines. These conflicting territorial claims have led to numerous confrontations between Chinese and Filipino vessels.
In particular, disputes over features such as the Second Thomas Shoal, Sabina Shoal, and the Scarborough Shoal have resulted in dangerous encounters. Chinese Coast Guard ships have reportedly rammed Filipino boats, used water cannons against Philippine vessels, and harassed Filipino fishermen. More recently, Chinese aircraft have engaged in aggressive maneuvers, shadowing Philippine aircraft conducting routine patrols over the disputed waters.
These incidents have heightened concerns that the ongoing disputes could spiral into a broader conflict. With China’s military capabilities far outmatching those of the Philippines, Manila has been forced to rethink its defense strategy and bolster its presence in the region.
The construction of a new naval base at Subic Bay forms a key part of the Philippines’ broader military modernization efforts. This initiative, launched by the Marcos administration, aims to equip the Armed Forces of the Philippines (AFP) with modern hardware and expand its presence in strategically significant areas. The acquisition of new naval vessels, the development of air reconnaissance capabilities, and the construction of modern facilities are all part of this push.
Teodoro has confirmed that beyond Subic Bay, another major operating base is planned for the eastern portion of the Philippines. In addition to building permanent military bases, the Philippines also intends to establish Forward Operating Bases (FOBs) to facilitate rapid deployment and resupply in case of conflict. The strategic placement of these bases across Luzon, Visayas, and Mindanao will ensure that the Philippines can respond to security threats on multiple fronts.
This military upgrade is not happening in isolation. Manila has increasingly looked to its allies for support. The United States, a longstanding security partner, has played a pivotal role in helping the Philippines modernize its military. In August, U.S. Defense Secretary Lloyd Austin visited the Philippines, signaling Washington’s ongoing commitment to the alliance. The U.S. has expressed support for the Philippines’ plans to develop a new naval pier at Subic Bay, a project that will likely involve cooperation with U.S. forces stationed in the region.
The Return of U.S. Forces?
Speculation has been rife about a potential U.S. military return to Subic Bay. While no formal agreements have been reached, the visit by Defense Secretary Austin and other high-level military officials has fueled rumors that the U.S. may seek to re-establish a presence at its former World War-era base.
Such a move would not be unprecedented. The U.S. has maintained close military ties with the Philippines since it closed its Subic Bay base in the early 1990s. The two countries continue to hold joint military exercises, and the Enhanced Defense Cooperation Agreement (EDCA), signed in 2014, has allowed the U.S. to rotate troops and equipment through Philippine military bases.
In response to China’s growing assertiveness in the region, the U.S. has also reaffirmed its commitment to defending the Philippines under the Mutual Defense Treaty. This treaty obligates the U.S. to come to the Philippines’ aid if its forces are attacked in the Pacific, including the South China Sea. A return to Subic Bay could further cement the U.S. military’s ability to respond quickly to regional threats and support Philippine efforts to maintain sovereignty over its waters.
Strategic Importance of Subic Bay
The new Philippine base at Subic Bay is more than just a military facility; it is a symbol of Manila’s resolve to stand up to China’s aggressive posturing in the South China Sea. As one of Asia’s best natural harbors, Subic Bay offers the Philippines an unmatched ability to project power into contested waters, secure vital sea lanes, and protect its national interests.
Moreover, the base’s redevelopment will allow the Philippine Navy to operate more sophisticated vessels, including frigates and corvettes, that can challenge Chinese naval forces in the region. By establishing a larger and more capable presence in Subic Bay, Manila is sending a message that it will not back down in the face of Chinese provocations.
The Philippines’ military strategy, centered around expanding its bases and modernizing its fleet, is a direct response to the evolving security landscape in the South China Sea. As China continues to assert its claims, Manila is seeking to balance the power dynamic by enhancing its own capabilities, working with allies like the U.S., and ensuring its forces can operate effectively in this contested area.
While tensions in the South China Sea are unlikely to dissipate anytime soon, the Philippines’ proactive stance in securing its territory and fortifying its military presence signals that it is prepared to defend its sovereignty. With the backing of allies and a growing military infrastructure, the Philippines is positioning itself to play a critical role in maintaining stability in the region.
In the coming years, the completion of the new Subic Bay military base, along with other strategic initiatives, will undoubtedly reshape the military balance in the South China Sea. It remains to be seen how China will respond, but one thing is clear: the Philippines is no longer willing to stand by passively as the region’s tensions escalate.
