Marcos Highlights Expected Economic Gains From Pax Silica

President Marcos highlighted the expected economic gains from the Pax Silica during his fifth State of the Nation Address on Monday, July 27, as the US-led initiative faces intense opposition over its supposed negative impact on security, environment and local livelihood.

According to Marcos, the Philippines continues to strive for “bigger and greater things” as it ventures into “areas heretofore unimaginable.”

He cited strategic and emerging industries that position the country in the global value-chain, like pharmaceuticals, advanced manufacturing, luxury goods, technology and logistics.

The President went on to mention the proposed Pax Silica Industrial Hub, which is envisioned as a strategic component of the Luzon Economic Corridor and an advanced manufacturing and logistics center in the global artificial intelligence (AI) and technology value chain.

“A product of the 23-member strong and US-led Pax Silica Initiative, the Pax Silica Industrial Hub will create an eco-system that will have AI at its core. It will bring quality jobs to our people, accelerate our industrial competitiveness, and revitalize our economy,” the President said.

The Pax Silica project aims to bring together US partners to build secure, trusted and resilient supply chains for critical minerals, advanced manufacturing and other inputs needed for AI-driven industries. The Philippines joined the initiative last April. 

The project involves the establishment of the Pax Silica New Clark City, a 1,620-hectare industrial and innovation district that integrates semiconductor packaging, electronics, AI computing, research and development and mineral processing.

But various groups are worried that the Pax Silica would displace farmers, expose the country to security hazards and damage the environment.

Officials have allayed the concerns, saying the project would comply with existing Philippine laws and regulations.

Earlier this week, the Bases Conversion and Development Authority said Pax Silica may generate 130,000 to 190,000 direct jobs and 500,000 to 800,000 indirect or induced jobs. It is also expected to contribute P68-billion tax revenues annually and earn P60-billion lease income over 25 years.

In the same address, Marcos said foreign investments continue to pour in because of the Philippines' beneficial policies, especially those promoting ease of doing business and accelerating digital transformation that curb red tape and corruption.

“Over the past three years, more than P6- trillion pesos in investments have been facilitated through our green lanes. These are estimated to create over 400,000 jobs for our fellow Filipinos,” he said.

“Our productive ecozones lay down the fertile groundwork that brings these investments into actual fruition, posting consistent growth rates over the past three years. Extending beyond Metro Manila – from Luzon to Mindanao – promising new areas have been recently proclaimed, such as in Dumaguete and Misamis Oriental. And soon, we’ll also present a strong case for Palawan and for the halal industry.”