The recently concluded Balikatan joint drills have marked a shift in the Philippines’ defence strategy alongside Japan, with Tokyo offering the transfer of warships to its Southeast Asian ally, while a top Filipino official for the first time voiced “serious concern” over islands claimed by Beijing and Tokyo.

Philippine Defence Secretary Gilberto Teodoro Jnr on Wednesday said Manila now considered the uninhabited Diaoyu Islands, which Japan calls the Senkaku Islands, a security flashpoint in the East China Sea.

During the closing ceremonies of the operations on Friday, Armed Forces Chief of Staff General Romeo Brawner Jnr also revealed that future war games would not be confined to waters within the South China Sea that Manila considered under its territory.

Brawner said planning for next year’s drills would be done by the “Squad”, an informal military alliance comprising American and Filipino forces, joined by Australia and Japan. Canberra signed a Status of Forces Agreement with Manila in 2012, while Tokyo sealed a Reciprocal Access Agreement last year. Both pacts enable troops to train together.

“This afternoon the four of us will be meeting as the Squad, so that we will discuss among ourselves how we will move forward in expanding the Balikatan exercise that will not just be focused or just located here in the Philippines, but we are going to expand the area of operations as well,” Brawner said on Friday.

Teodoro and his visiting Japanese counterpart Shinjiro Koizumi had mentioned the Diaoyu Islands during a joint press conference on Tuesday following bilateral talks.