MANILA, April 23 (Reuters) - The Philippines expects Maoist-led guerrillas to step up attacks on mines, logging areas, plantations and other businesses in an attempt to raise funds and boost morale, the head of the armed forces said on Wednesday.

General Hermogenes Esperon said the rebels would step up extortion demands in the wake of the attacks, hoping to raise cash and keep numbers up.

Many rebels had surrendered or abandoned armed struggle since the start of 2008 due to military pressure, he said.

"With these major setbacks, we expect the rebels to step up attacks on government forces and on mines and business establishments so that they could generate funds and stop the haemorrhage on its manpower," Esperon told reporters.

He said the military had dismantled eight guerrilla bases in the first three months of the year and reduced rebel numbers by about 300 people.

Active in 69 of 81 provinces across the country, the 5,000-member rebel National People's Army is viewed by the government as its most serious security threat.

President Gloria Macapagal Arroyo has vowed to crush the near 40-year-old insurgency by the time her final term ends in June 2010, but the NPA continues to engage in tit-for-tat attacks on the military and police and extortion.

Since the start of the year, at least three mines, two banana plantations and four telecommunications towers have been attacked by communist rebels. (Reporting by Manny Mogato; Editing by Raju Gopalakrishnan and Alex Richardson)

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