The Philippines is ambitiously positioning itself as the next manufacturing and logistics hub in Asia, driven by strengthened ties with the United States. President Ferdinand Marcos Jr. announced this strategic vision at the 6th Indo-Pacific Business Forum in Manila, highlighting the nation’s increasing defence and economic engagements with Washington.
Recently, the US pledged support to accelerate investments in the Philippines, focusing on transport infrastructure, clean energy, and semiconductor supply chains through the Luzon Economic Corridor. These initiatives aim to enhance freight transport services, mobility, and access to key economic zones, ensuring business continuity and establishing the Philippines as a pivotal hub for agribusiness and logistics in the Asia Pacific.
Marcos emphasized that the country’s infrastructure program, which includes 185 priority projects worth 9.5 trillion pesos (RM766.16 billion), is integral to this vision. This ambitious plan positions the Philippines in competition with regional neighbors like Vietnam and Indonesia, who are also vying for a share of significant investments driven by de-risking efforts from the US and its allies away from China.
Despite being one of the fastest-growing economies in the region and opening more sectors to foreign investors, the Philippines has lagged in attracting foreign funds to build new factories. Net inflows of foreign direct investments dropped 7% to USD 8.9 billion (RM41.74 billion) last year.
The business forum underscores Washington’s efforts to deepen economic relations with the Philippines as both nations strengthen defence ties amid rising tensions in the South China Sea. This follows the first-ever trilateral summit between the US, the Philippines, and Japan at the White House, where the allies committed to growing investment partnerships.
US Assistant Secretary of State for East Asian and Pacific Affairs, Daniel Kritenbrink, remarked at the forum, “We believe fundamentally that the prosperity of everyday Americans is inextricably linked to the Indo-Pacific.”
Marcos reiterated the Philippines’ commitment to greater participation in global value chains and attracting increased foreign direct investments to sustain economic growth. “An economically strong Philippines will be a valuable ally in the region,” he added.
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