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Republic Act 7898 (RA 7898) or the AFP Modernization Act of 1995 signifies the country’s intent to make the AFP a worthy player in any regional or international security arrangement. Since its passage, the Armed Forces of the Philippines has made the modernization act as the core of initiatives to improve its capabilities. Dynamism in the regional security environment meant that the AFP needed to expand and enhance its capabilities in order to respond to the wide spectrum of possible security challenges to include non-traditional concerns such as terrorism. This is to ensure that the AFP’s focus on ISO would not result in diminished capabilities for territorial defense. Domestically, modernization would instill in the people increased pride with the armed forces and denies prospective putschists the issue of poor equipage to rationalize their attempts to grab power.
In short, a more capable armed forces would be better placed to contribute to nation-building by ensuring security from any internal and external challenges.
The objectives of the program are presented in Section 3 of the Modernization Act, to wit: 
- To develop the AFP’s capability to uphold the sovereignty of and territorial integrity of the Republic and to secure the national territory from all forms of intrusion and encroachment;
- To develop the AFP’s capability to assist civilian agencies in the preservation of the national patrimony, including the country’s living and non-living marine, submarine, mineral, forest and other natural resources located within its territory and its Exclusive Economic Zone;
- To enhance the AFP’s capability to fulfill its mandate to protect the Filipino people not only from armed threats but the ill effects of life-threatening and destructive consequences of natural and man-made disasters and calamities, including typhoons, earthquakes, volcanic eruptions, major accidents in far-flung or inaccessible terrain or at sea from all forms of ecological damage;
- To improve the AFP’s capability to assist other agencies in the enforcement of domestic and foreign policies as well as international covenants against piracy, white slavery, smuggling, drug trafficking, hijacking of aircraft and sea craft and the transport of toxic and other ecologically-harmful substance taking place in or through Philippine territory;
- To enhance the AFP’s capability to assist the Philippine National Police in law enforcement and internal security operations;
- To enhance the AFP’s capability to fulfill the country’s international commitments; and
- To develop the AFP’s capability to support national development.
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