Pax Silica and the pursuit of Philippine economic security

The Philippines joined Pax Silica in April this year as its 13th signatory. The initiative, formed in December 2025, now counts 24 countries as signatories. These are, aside from the United States, Argentina, Australia, Chile, Costa Rica, El Salvador, the European Union, Finland, Germany, Greece, India, Israel, Italy, Japan, Kazakhstan, Netherlands, Norway, Panama, Qatar, the Republic of Korea, Singapore, Sweden, the United Arab Emirates and the United Kingdom.

Pax Silica brings together countries working to build secure and resilient technology supply chains across artificial intelligence, critical minerals, energy, manufacturing, technological hardware, and infrastructure.

Specific to Pax Silica in the Philippines is the proposed Advanced Manufacturing Park in New Clark City, serving as a concrete investment platform. This park can support investments in AI infrastructure, semiconductors, advanced manufacturing, data centers, energy, logistics, and related industries. The objective should be to develop an integrated industrial ecosystem that can attract multiple investments and create linkages across sectors.

To be sure, the Philippines already has important policy tools to support strategic investments. Among these are the CREATE MORE Act, Executive Order 18 and its Green Lanes for Strategic Investments, the Public-Private Partnership framework, and reforms allowing longer-term foreign participation. All of these aim to strengthen the investment environment in the country.

But the collective result of these national policies cannot as yet be measured. Effective implementation will be critical to ensuring that investors experience these reforms on the ground.

These national policies are best complemented by initiatives that reflect the changes being undergone by the global economy. Geopolitical tensions and supply-chain disruptions are pushing companies to look for reliable locations and trusted partners. Companies are looking to diversify their supply chains.

This thus creates a great opportunity for the Philippines to attract new investments and strengthen its role in global supply chains. Finally, the Philippines can take its rightful place in the global marketplace and demonstrate how it is a viable, competitive investment destination.

Our participation should help attract companies looking to establish factories, technology facilities, regional operations and supply-chain investments in the Philippines while strengthening the country’s long-term competitiveness and economic resilience.

Pax Silica is a global initiative, but it is also close to Filipinos’ daily existence. It should bring us closer to markets. Foreign investment should create stronger linkages with Philippine companies. Multinational investors can be encouraged to develop local suppliers, partner with Philippine universities and research institutions, and invest in workforce development. Technology transfer and supplier development can help Filipino companies participate in higher-value segments of emerging supply chains.

Filipinos themselves acknowledge that we need trusted partners to advance our economic interests. In June 2026, a Stratbase Institute-commissioned survey conducted by Pulse Asia Research, Inc. found that Filipinos identified the United States (71%) as the most important partner for Philippine economic security amid global risks, followed by Japan (52%) and Australia (35%). These partnerships can be leveraged to generate greater investment, technology, and market opportunities for the Philippines.

Pax Silica is but one vehicle to reinforce the benefits of partnering with trusted economic partners. Specifically, through this initiative, the Philippines can explore economic opportunities in a sector that has not been traditionally seen, much less optimized. Critical minerals can also support greater domestic value creation. The Philippines can move beyond the export of raw materials by attracting investments in processing, refining, and downstream manufacturing. This can strengthen our position in global technology supply chains while creating more economic value within the country.

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Of course, it would be foolhardy to think that merely joining the Pax Silica initiative would immediately provide a boost to the economy. Or that professing commitment to economic cooperation with other countries would automatically boost our stature as an investment destination.

The work does not end with signing the pact. On the contrary, this is just a point in the long saga of our efforts to maximize our investment potential using our nation’s inherent strengths and the opportunities that are available in the current environment.

Our experience in electronics and semiconductor-related activities provides a strong foundation for attracting higher-value investments in advanced manufacturing, semiconductor production, engineering, research and development, and AI-related infrastructure. Thus, it is important that the Philippines is aware of – and builds on – its existing strengths so it could move up the value chain.

We also have to be aware of the areas that still need additional work. We have to communicate to the world that we know we have to work on reliable power, connectivity, logistics, skilled workers, available industrial space, and predictable regulations. We have to ensure that Green Lanes and other investment reforms translate into faster approvals, reduced transaction costs, and greater certainty for strategic projects.

We cannot just say we aim to be competitive. We have to execute plans that demonstrate we are already on a clear and solid path toward it.

In the end, how will Filipinos be able to judge whether economic initiatives such as the Pax Silica are working for them?

Only concrete economic outcomes should be the measure of success. Specifically, these should include new investments, capital committed, quality jobs created, Filipino companies integrated into global supply chains, technology transferred, and new industrial capabilities developed in the country. All of these measures could be directly linked to benefits not only for the national and local economy, but on the very lives of citizens.

In the end, we join Pax Silica with keen awareness of what it could mean for the country and what it would take to truly succeed. We can use the Pax Silica network to engage companies looking to diversify manufacturing, establish regional operations, secure critical inputs, and expand their technology and AI infrastructure.

By joining this club of like-minded countries and articulating our commitment to the great role of technology in improving the lives of people, when used correctly and ethically, we can attract companies looking to diversify their supply chains, strengthen our manufacturing base, and position the Philippines as a competitive destination for critical technologies.

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Rupert Paul Manhit is the COO and managing director of think tank Stratbase Group. He is the executive director of Philippine Trade Foundation (Phils Inc.)