The Philippines is proposing a 14 percent increase in defense spending next year to buy new ships and aircraft to boost its fight against Islamist militants and enhance maritime security in the disputed South China Sea.

According to internal documents seen by Reuters on Monday, about 130 billion pesos ($2.8 billion) or 96 percent of the proposed defense budget will go to the armed forces.

The push to beef up military spending reflects regional concern about China's maritime assertiveness and the new government's determination to crush the entrenched and lucrative network of the Islamic State-linked Abu Sayyaf rebels behind a spree of kidnappings.