The Philippines is upgrading its facilities on Thitu Island, the only inhabited outpost it holds in the contested Spratly Islands, according to a report by the South China Morning Post.

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The country’s latest annual budget has allocated 1.65 billion pesos ($27.96 million) to improve the airport on Thitu, alongside an additional 300 million pesos ($5 million) for constructing a sheltered port. Separately, over 1 billion pesos has been set aside for a sheltered port facility on Nanshan Island, located approximately 160 kilometres (100 miles) east of Thitu.

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Upgrades to enhance the Philippines’ limited military capacity

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While these upgrades are unlikely to significantly shift the regional balance of power, analysts believe they will enhance the Philippines’ limited military capacity amid increasing pressure from Beijing in the South China Sea. According to the report, the funding will support extending the island’s sole airstrip to 1.5 kilometres, making it suitable for certain F-16 fighter variants as well as light combat and transport aircraft.

Analysts suggest Beijing would likely be alarmed if the facilities on Thitu Island were made available to US forces. Such a move might be viewed as Washington inserting itself into the territorial dispute between the Philippines and China.

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Philippines plays catch up with regional rivals

The Philippines, long criticised for its slow pace in upgrading infrastructure in the Spratlys, appears to be catching up with its regional rivals. Although Manila was one of the first claimants to occupy disputed reefs, decades of neglect and underinvestment have eroded any strategic advantages gained from its early actions. In contrast, China completed an extensive island-building programme over a decade ago and has consistently improved its facilities in the region.

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Known as Pag-asa in the Philippines and Zhongye in China, Thitu Island is the largest feature occupied by Manila in the area. It hosts a coastguard station equipped with radar and other monitoring systems, as well as a civilian population of around 200 people. The island, also claimed by Vietnam, is located roughly 500 kilometres (310 miles) west of Palawan and holds strategic significance in the disputed waters.

In the past year, clashes between Chinese and Philippine vessels have intensified near disputed areas, including incidents involving ship collisions and the use of water cannons by the Chinese coastguard.

(With inputs from agencies)