The live-fire drill, part of the annual “Balikatan” exercises, was conducted about 75 km off the coast of Paoay in northern Philippines. Philippine military officials said two missile volleys hit the target ship, the BRP Quezon, within six minutes of launch.

Japan’s Defense Minister Shinjiro Koizumi and Philippine Defense Secretary Gilberto Teodoro observed the exercise on site, while President Ferdinand Marcos Jr. monitored the operation via live feed from Manila, according to the Philippine government.

The exercise coincided with ongoing talks between Tokyo and Manila on a potential transfer of defense equipment, following Japan’s decision to ease restrictions on military exports. Discussions include the possible provision of Abukuma-class destroyers and TC-90 aircraft to the Philippines, Koizumi said.

In a statement, the Philippine military said the drill demonstrated coordinated maritime strike capabilities among allied forces and underscored efforts to enhance interoperability and regional security, particularly in safeguarding freedom of navigation.

The Type 88 missile system, designed for coastal defense, was deployed as part of broader efforts to deter maritime threats in contested waters.More than 17,000 troops are participating in this year’s Balikatan exercises, including approximately 10,000 from the United States and around 1,400 from Japan.

Several countries, including Australia, Canada, France and New Zealand, are taking part as active participants for the first time, reflecting expanding defense cooperation.

Earlier in the exercises, US and Philippine forces deployed the NMESIS anti-ship missile system in Batanes province near Taiwan, amid rising regional tensions linked to competing territorial claims.

China has repeatedly criticized such joint drills, saying they escalate tensions in the region.

Koizumi met Ferdinand Marcos Jr. in Manila, alongside Defense Secretary Gilberto Teodoro Jr., with discussions expected to include potential transfers of used Japanese naval vessels to the Philippines, officials said.The visit comes as both countries expand security cooperation under a 2024 Reciprocal Access Agreement that allows their forces to conduct large-scale joint exercises.

The pact has enabled Japan to deploy around 1,400 personnel to regularly participate in the annual Balikatan drills alongside US and Philippine forces.Koizumi is scheduled to join representatives from 16 countries observing a key exercise in Paoay, where allied forces will conduct a live-fire drill simulating an attack on a decommissioned warship off the coast. Japanese forces are expected to fire Type 88 missiles as part of the operation.

The drills, involving US, Japanese, Canadian and Philippine forces, are aimed at strengthening interoperability and deterring growing maritime assertiveness by China in the region, particularly in the contested South China Sea.Officials said Japan’s recent policy shift lifting restrictions on lethal weapons exports could allow the transfer of up to six Abukuma-class destroyers to the Philippines, though details remain under discussion.

Before arriving in Manila, Koizumi visited Jakarta, where he signed a defense cooperation agreement with Indonesian authorities, reflecting Tokyo’s broader effort to build a network of security partnerships in Asia.China has criticized Japan’s evolving defense posture, warning against what it described as moves toward militarization, while US and regional allies have welcomed Tokyo’s expanded role in regional security.