Establishment and operation of govt arsenal

The Secretary of National Defense has supervisory and control authority over the government arsenal.
Authorized to establish, operate, and maintain the government arsenal and accessory plants for design, research, development, manufacture, and repair of small arms, mortars, weapons, ammunition, and munitions.
Creation of the Office of the Undersecretary of Defense for Munitions within the Department of National Defense.
The Undersecretary's responsibilities include continuous study and advisory functions concerning design, development, manufacture, procurement, stockpiling, and allocation of armaments.
The Undersecretary recommends policies, rules, and regulations for efficient operation and security of the arsenal.
Tasked with mobilizing civilian industry production capacity during emergencies.
Appointment of the Undersecretary is made by the President with Commission on Appointments' consent.
Requirements for the Undersecretary: natural-born Filipino citizen, technical education, minimum of five years’ experience in munitions.
The office may have military and civilian personnel as deemed necessary, with preference for detail from the Armed Forces of the Philippines.
The Undersecretary receives an annual salary of nine thousand pesos.

All plant locations must be strategically chosen to ensure community safety and security.
Plant construction must consider principles of modern warfare and security requirements.

An initial funding of 5,645,193 pesos allocated from the National Treasury over three fiscal years.
Expenditure limits within the appropriation include a maximum of 200,000 pesos for overhead expenses, 3,357,000 pesos for fixed assets, and 2,087,745 pesos for working capital.