This post at Murdoc Online reports that the Philippines have retired the last of their fighter aircraft. As of October 1st, the Philippines are without any dedicated air defense planes. Some trainer aircraft have been modified to act as makeshift fighters, but I don’t think anyone expects them to do any good if a shooting war starts.
But the prospects of actual combat are very remote, and the reasons for that have much to do with the defense umbrella provided by the United States and Australia. Any foreign power looking to make war on the Philippines would essentially have to get permission from the Anglosphere, and I just don’t see that happening in the foreseeable future.
The stated reason for the decision to junk their fighters was economics. The Philippine government has to concern itself with two serious internal threats: Communist guerrillas in the back country and Islamic terrorists in the South. In both cases the enemy is dispersed, desperate to avoid a direct battle, and difficult to eradicate. Fighter aircraft are of little use in this sort of conflict, and the limited defense budget could be better spent on forces that are better suited to dealing with insurgents.
This decision by the Philippine government isn’t unprecedented. New Zealand decided in 2001 to disband their own air combat wing, and their reasons for doing so are also economic in nature. But, unlike the Philippines, New Zealand doesn’t face any internal threats. They wanted to use the cash to fund social welfare programs.