economic growth – Page 2 – Author Carlo Carrasco

New Philippines Domestic Tourism Program Launched With Over 3,000 Travel Deals

July 4, 2026July 2, 2026carlocarrasco

In what is clearly a serious attempt by the Department of Tourism (DOT) to boost domestic tourism a lot, the new program Discover More To Love was recently launched with more than three thousand travel deals from varied hotels, tour operators and airlines, according to a news report by the Manila Standard.

To put things in perspective, posted below is an excerpt from the report of the Manila Standard. Some parts in boldface…

The Department of Tourism (DOT) launched a new campaign offering more than 3,000 travel deals from hotels, tour operators, and airlines to boost domestic travel during off-peak months and support local businesses.

The campaign, named “Discover More to Love,” runs from July to November 2026 to stimulate year-round travel, sustain bookings, preserve jobs, and strengthen local economies during the industry’s traditional lean period.

The initiative serves as an extension of the country’s official tourism brand, “Love the Philippines,” rather than a replacement.

Travelers can access discounts of up to 70 percent from more than 70 hotels and resorts through the Hotels Sales and Marketing Association. The campaign also features more than 250 nationwide travel packages alongside discounted fares from carriers Philippine Airlines, Cebu Pacific, AirAsia Philippines, and Sunlight Air.

Online platforms AirAsia MOVE and Klook are providing exclusive deals, while Mastercard offers special payment privileges for cardholders. Travelers can access the promotional room packages, staycation deals, dining credits, and flexible booking options directly through the department’s enhanced website at http://www.tourism.gov.ph.

Tourism Secretary Dita Angara-Mathay said the agency wants to evolve the initiative through feedback from travelers and industry partners.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you support the DOT’s renewed focus on domestic tourism?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Philippines At Risk Of Losing Ground In Global Supply Chain

July 4, 2026June 29, 2026carlocarrasco

If the Philippines fails to address the high costs of energy and the ongoing corruption connected with infrastructure projects, it could lose ground in global supply chains, according to a news report by BusinessWorld.

To put things in perspective, posted below is an excerpt from the report of BusinessWorld. Some parts in boldface…

THE PHILIPPINES risks losing ground in global supply chains unless it addresses high energy costs and unresolved corruption issues surrounding infrastructure projects, which continue to weigh on investor sentiment, according to UK-based risk intelligence firm Verisk Maplecroft.

“The Philippines’ biggest infrastructure challenge is its relatively high cost of energy, which has been exacerbated by the Hormuz crisis,” Laura Schwartz, a senior Asia analyst at Verisk Maplecroft, said in an e-mailed reply to BusinessWorld.

“Following the onset of the crisis, there was some movement in fast-tracking renewable energy projects, but more will be needed,” she added.

The Philippines, which sources at least 90% of its oil supply from the Middle East, has been one of the most affected by the global oil crisis.

Ms. Schwartz also said last year’s corruption scandal — which linked state officials and contractors in substandard or nonexistent flood control projects — may deter companies that are seeking to diversify their supply chains from investing in the Philippines.

“High-profile governance issues, particularly the widespread public works corruption allegations and political jockeying, are one of the top factors leading to investor hesitation in the near term,” she said.

In its 2026 Supply Chain Risk Outlook, Verisk Maplecroft identified the Philippines, Thailand, Argentina, Chile, and Uruguay as “rising stars” in the global supply chain.

“Relative to the established hubs, these ‘rising stars’ offer different mixes of sector capability, market openness, regulatory strengths, and labor-risk trajectories for organizations looking to realign their supply chains,” it said in the report released on June 23.

“The businesses that move first — screening these markets now, building supplier relationships before demand spikes, and stress-testing entry strategies against external risk data — will find themselves better positioned to act when faced with disruptive geopolitical realignment, trade restrictions, or conflict outbreaks,” Verisk Maplecroft said.

A third of the world’s busiest ports and airports are vulnerable to disruption amid ongoing geopolitical conflicts, environmental challenges, and domestic security threats, the firm noted.

The closing of the Strait of Hormuz has created near-term headwinds for the Philippines and Thailand, Verisk Maplecroft said.

Despite this, “procurement teams willing to take a longer-term view will find these markets worth their attention,” the company added.

The report cited the Philippines’ strong potential in the global supply chain due to improvements in its market openness, its competitive labor costs, and its young, English-fluent workforce.

“The Philippines performs second-best across the Southeast Asian economies analyzed due to significant improvement in our market openness pillar,” it said.

“Despite lower infrastructure quality and governance challenges, including recent corruption scandals, the Philippines shows notable opportunities in sectors like electronics, auto parts, and food manufacturing,” Verisk Maplecroft said.

Other Southeast Asian economies assessed in the report were Singapore, Cambodia, Indonesia, Malaysia, Vietnam, Thailand, and Myanmar.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the government of the Philippines has the will to resolve high energy costs and the ongoing corruption on infrastructure projects? Do you think the Philippines could get more affordable oil from places other than the Middle East?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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ANZ Research Slashes Philippines Economic Growth Forecasts

July 1, 2026June 24, 2026carlocarrasco

It seems that economic disappointment lack of breakthroughs will keep hounding the Philippines in the short term as ANZ Research slashed its economic growth forecasts for 2026 and 2027, according to a BusinessWorld news report.

To put things in perspective, posted below is an excerpt from the report of BusinessWorld. Some parts in boldface…

THE PHILIPPINE ECONOMY could see its weakest post-pandemic growth this year as last year’s corruption controversies continue to weigh on confidence, compounded by accelerating inflation and rising interest rates amid the Middle East conflict, ANZ Research said.

In its latest outlook for the third quarter, the New Zealand-based think tank slashed its 2026 gross domestic product (GDP) growth forecast for the Philippines to 3.9% from 4.7%.

It likewise cut its growth outlook for 2027 to 5% from 5.6% previously.

“The Philippines’ outlook is more constrained by weak household and business confidence, elevated inflation, and higher interest rates,” ANZ Research Chief Economist for Southeast Asia and India Sanjay Mathur said on Tuesday.

Economy, Planning, and Development Secretary Arsenio M. Balisacan said on Monday that the economy may grow by 3.5-4.5% this year, due to underspending and the fallout from the US-Iran war.

ANZ’s projections are below the government’s original targets of 5-6% for this year and 5.5%-6.5% next year. The Development Budget Coordination Committee has yet to release revised macroeconomic assumptions.

For 2028, ANZ sees the Philippine economy expanding by 5.5%, still below the government’s 6%-7% goal for the year.

Mr. Mathur noted that the weaker outlook also reflects expectations that lingering governance issues from last year’s flood control mess will prevent any significant rebound in public spending.

“Public spending likely bottomed in (the first quarter of) 2026, but a material recovery is unlikely until governance issues surrounding infrastructure projects are fully resolved,” he said.

In the first quarter, government spending grew by 3.22% year on year to P1.491 trillion from P1.444 trillion. It slightly improved at end-April after rising by 5.12% to P1.996.2 trillion from P1.899 trillion a year ago.

In late 2025, a flood control corruption scandal involving Public Works officials, private contractors and lawmakers took a major toll on public and business sentiment and dampened investments and government spending. This dragged the economy to its weakest growth since the COVID-19 pandemic at 4.4% last year from 5.7% in 2024.

“The Philippines stands out with negligible fiscal support, reflecting tight fiscal constraints and legal rigidities in fuel and utility pricing,” Mr. Mathur said.

Let me end this post by asking you readers: What is your reaction to this recent development? Are you convinced that the national economy will not achieve 6% growth rate during the final years of the Marcos administration? Do you think the administration’s hosting of the ASEAN Summit and participation in a big meeting with Vladimir Putin in Russia will not result in economic breakthroughs for the Philippines?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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S&P Global Slashes Philippines GDP Growth Forecast

June 29, 2026June 24, 2026carlocarrasco

In its latest analysis and assessment, S&P Global predicts weaker gross domestic product (GDP) growth for the Philippines at 4.1% this year, according to a news report by BusinessWorld.

To put things in perspective, posted below is an excerpt from the report of BusinessWorld. Some parts in boldface…

The economic drag from the Middle East-war driven oil shocks and last year’s flood control mess fallout could slow the Philippines’ growth to 4.1% this year, S&P Global said.

In its latest economic outlook for Asia-Pacific, the debt watcher cut its gross domestic product (GDP) growth forecast for the Philippines to 4.1% for this year, from 5.8% previously.

S&P Global Asia-Pacific Chief Economist Louis Kuijs and Senior Economist Vishrut Rana noted that the Philippines emerged as a laggard in the region, which was largely resilient at the start of the year.

“Asia-Pacific economic growth largely held up in early 2026. In the first quarter, GDP growth met or exceeded expectations in most economies, with generally solid contributions from both exports and domestic demand,” Mr. Kujis and Mr. Rana said.

“However, growth significantly lagged expectations in the Philippines, where the energy shock combines with a sharp reduction in public infrastructure spending related to misutilization of funds,” they added.

In the first quarter, the economy unexpectedly grew by 2.8%, its weakest growth since the COVID-19 pandemic, due to spiraling oil prices and the lingering effects of last year’s corruption scandal.

The S&P economists noted that countries in the Asia-Pacific, including the Philippines, are heavily reliant on oil imports from the Middle East, which made them vulnerable to disruptions in the region’s key energy facilities and the Strait of Hormuz.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the government has any plans to stimulate economic growth? Do you see the GDP of the Philippines growing at a slower rate over the next several quarters? Do you think the economic managers of the current administration should be replaced?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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World Bank Sees Below-Target Philippine Economic Growth In 2028

June 18, 2026June 15, 2026carlocarrasco

In its latest analysis of the economy of the Philippines, the World Bank (WB) predicts a below-target economic growth will happen in 2028, according to a news report by BusinessWorld.

To put things in perspective, posted below is an excerpt from the BusinessWorld news report. Some parts in boldface…

THE WORLD BANK said the Philippine economy is likely to expand by 5.6% in 2028, still below the government’s 6-7% target, amid an expected recovery in public investment.

In the latest Global Economic Prospects report, the World Bank said it retained its gross domestic product (GDP) growth forecasts for the Philippines at 3.7% in 2026 and 5.6% in 2027.

If realized, growth would fall short of the government’s 5-6% target for 2026 but would be at the lower end of its 5.5-6.5% goal for 2027.

“Growth in East Asia and the Pacific excluding China is forecast to improve to 4.9% in 2027-28 as geopolitical uncertainty dissipates, energy prices settle, and demand improves,” the World Bank said.

“Public investment is expected to recuperate in the Philippines, and Indonesia’s growth will be supported by state-led investment initiatives,” it added.

The Philippine economy expanded by a weaker-than-expected 2.8% in the first quarter, the slowest pace since the pandemic, amid lingering uncertainty from last year’s corruption scandal and higher oil prices linked to the Middle East conflict.

“The World Bank’s outlook is plausible, but I would not treat it as the only reasonable scenario,” Ateneo Center for Economic Research and Development Senior Research Fellow Ser Percival K. Peña-Reyes told BusinessWorld.

He said the weak 2026 forecast reflects uncertain global conditions, elevated geopolitical and trade tensions, fiscal consolidation, weather-related disruptions, and food price shocks.

However, Mr. Peña-Reyes said economic expansion this year could be stronger if household consumption remains resilient, inflation continues to ease, infrastructure spending is sustained, investment reforms gain traction, and monetary policy becomes more accommodative.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the economy of the Philippines will keep on growing below the targets set by the government? Could it be possible that an economic recession can still happen in the Philippines in 2028?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Tourism’s Contribution To Philippines GDP The Lowest In 3 Years

June 7, 2026June 2, 2026carlocarrasco

Given the fact that the Philippines has been having trouble attracting foreign tourists and their money, it has been confirmed that the tourism industry’s contribution to the national economy in 2025 fell down to a 3-year low, according to a news report by BusinessWorld. For insight, the Philippines attracted 5.94 million foreign tourists in 2025 while Indonesia attracted 15.39 million, Vietnam attracted a record-high 21.2 million and Thailand attracted almost 33 million.

To put things in perspective, posted below is an excerpt from the news report of BusinessWorld. Some parts in boldface…

THE TOURISM industry’s contribution to the Philippine economy fell to its lowest level in three years in 2025, weighed down by weaker tourism spending by foreign visitors, according to data from the statistics agency.

Preliminary data from the Philippine Statistics Authority (PSA) showed tourism’s direct gross value added (TDGVA) accounted for 8.1% of the gross domestic product (GDP) in 2025, down from 8.7% of GDP in 2024.

This was tourism’s lowest contribution to the national output in at least three years or since 2022 when it contributed 6.3% to the country’s GDP.

The country’s TDGVA was estimated at P2.27 trillion last year, down by 1.4% from the revised P2.3 trillion in 2024.

The TDGVA measures the value generated from various tourism-related activities and is based on the results of the Philippine Tourism Satellite Accounts report, which the PSA compiles from the Department of Tourism.

Tourism Congress of the Philippines President James M. Montenegro said the drop reflected external pressures, structural constraints and a weaker recovery in international tourism relative to the rest of the Philippine economy.

“While domestic tourism remained resilient, inbound tourism weakened significantly in 2025, which pulled down overall tourism value creation,” Mr. Montenegro said in a Viber message.

He said a major factor was the slower-than-expected recovery of inbound tourism from key Asian markets such as China and India even after the Philippine government eased visa requirement for Chinese and Indian nationals.

Mr. Montenegro said another challenge is the Philippine tourism industry’s ability to remain competitive in attracting foreign tourists. He said the Philippines should prioritize making key destinations more accessible to major regional markets.

“Many neighboring countries accelerated aggressive tourism recovery programs, including visa-free access, expanded airline incentives, stronger destination marketing, and airport infrastructure improvements. The Philippines continued to face challenges in air connectivity, airport capacity, inter-island transport efficiency, and tourist friction points,” Mr. Montenegro said.

He said that while the Philippines’ tourism sector has one of the highest contributions to GDP in Southeast Asia, it continues to lag behind regional peers in attracting tourists.

Let me end this post by asking you readers: What is your reaction to this recent development? Were you surprised that the Philippines remained weak on attracting foreign tourists even though some reforms were implemented? Do you think the local tourism authorities should focus more on domestic tourism which itself remains strong and growing? What are the biggest hassles that tourists experience here in the Philippines when it comes to traveling by air, sea and land today?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Philippines’ Bid For United Nations Security Council Seat Rejected

June 5, 2026June 4, 2026carlocarrasco

The Philippines, which previously supported the creation of a Palestinian state and discussed cooperation with the Islamic terrorist regime of Iran, badly lost in its bid for a non-permanent seat in the United Nations Security Council (UNSC) as only forty-nine nations voted for them, according to a news report by GMA News. One hundred and forty-two other nations chose Kyrgyzstan over the Philippines during the fourth round of voting.

It should be recalled that no less than Philippine President Ferdinand “Bongbong” Marcos, Jr., himself told the United Nations General Assembly (UNGA) last March that the Philippines is a voice for principled peace and expressed confidence that the nation has an advantage in its bid for a UNSC non-permanent seat.

To put things in perspective, posted below is an excerpt from the GMA News report. Some parts in boldface…

The Philippines failed in its bid to attain a seat in the United Nations Security Council (UNSC) as a non-permanent member.

Zimbabwe, Austria, Portugal, Trinidad and Tobago, and Kyrgyzstan were named new members of the UNSC, which can issue legally binding resolutions that may include military action, economic sanctions, and deployment of peacekeeping operations.

A fourth round of votes was cast for UNSC members to choose between the Philippines and Kyrgyzstan, in the Asia-Pacific Group, after they failed to reach the required two-thirds of the majority.

Kyrgyzstan eventually achieving the necessary two-thirds majority and securing its first-ever Security Council seat by 142 votes to 49.

The remaining 10 members are elected, with five new members joining every year. This year, one comes from the Africa Group, one from the Latin American and Caribbean Group, one from the Asia-Pacific Group, and two from the Western European and Others Group.

Zimbabwe will replace Somalia and Trinidad and Tobago will replace Panama, while Portugal and Austria will replace Denmark and Greece. Kyrgyzstan will replace Pakistan.

Bahrain, Colombia, Democratic Republic of Congo, Latvia and Liberia will continue to serve as non-permanent members of the Security Council until the end of 2027.

The Permanent Members are: China, France, Russia, the United Kingdom, and the United States.

The rest of the non-permanent members are: Bahrain, Colombia, Democratic Republic of the Congo, Latvia, and Liberia.

Last March, President Ferdinand Marcos Jr. made a personal pitch for the Philippines’ candidacy for a non-permanent seat on the United Nations (UN) Security Council, saying the country is ready to contribute as a voice of balance among the world’s nations and as a “voice for principled peace.”

Marcos Jr. expressed confidence that the Philippines has an advantage in its bid for a non-permanent seat on the United Nations Security Council.

As a concerned citizen, I do not like what the Philippines did at the wicked United Nations and on other international affairs. Apart from supporting the creation of a Palestinian state, their diplomats formalized a mechanism to boost bilateral cooperation with the Palestinians (which practices apartheid). When the ASEAN Summit was hosted in Cebu province, the Philippines acted as if it was a highly credible player on global diplomacy (click here and here). The Philippines deplored Israel’s strike on Qatar which made them look like they were defending the Hamas terrorists in Doha.

The loss at the UN is the latest setback for the Philippines and 2026 has been a pretty bad year so far. Apart from diplomacy, the Philippines is experiencing weakening economic growth, rapid inflation and it remains very vulnerable on energy as it imports most of its oil from the Middle East. The warning signs about the national economy are only growing.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you consider the Philippines a highly credible participant in international affairs? Do you think the Philippines deserves a seat at the United Nations Security Council under the current administration?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Economy Of The Philippines Expected To Rebound In 2nd Half Of 2026

June 1, 2026May 28, 2026carlocarrasco

While the economists of a particular university predict slower economic growth for the Philippines this year, the University of Asia and the Pacific (UA&P) see the national economy growing stronger in the 2^nd half of this year, according to a news report by BusinessWorld.

To put things in perspective, posted below is an excerpt from the BusinessWorld report. Some parts in boldface…

THE PHILIPPINE ECONOMY could grow by around 5% in the second half of the year, driven by base effects and an expected acceleration in government infrastructure spending, according to the University of Asia and the Pacific (UA&P).

“Growth could recover to around 5% in the second half on base effects and a ramp-up in National Government infrastructure spending,” UA&P said in its The Market Call report this month.

Government officials earlier signaled a pickup in disbursements and project implementation as agencies roll out catch-up programs.

UA&P cautioned, however, that growth will remain subdued in the first half amid unresolved issues surrounding last year’s flood control scandal and elevated oil prices.

“Weak gross domestic product growth and faster inflation will weigh on the economy in the first half amid the unresolved flood control scandal and high oil prices from the Middle East conflict,” it said.

“Flip-flopping US-Iran talks may keep fuel prices elevated, hitting the Philippines harder than its ASEAN (Association of Southeast Asian Nations) peers,” it added.

The Philippine economy expanded by a slower-than-expected 2.8% in the first quarter. This was below the government’s target range of 5-6% for the year.

For the entire year of 2026, UA&P said growth will be slow “but pose some resilience in the face of near-term global and local headwinds that will likely moderate activity in the first half of the year.”

“While cautious business sentiment and lingering geopolitical uncertainties may weigh on household and investment spending, the domestic economy continues to benefit from strong structural drivers such as steady household consumption, a healthy labor market, and sustained remittance inflows,” it added.

Meanwhile, UA&P said that it expects inflation to accelerate further amid second-round effects from the oil shock, “but likely not to (reach) double digits year on year.”

Inflation accelerated to 7.2% in April, marking the second consecutive month that it settled above the Bangko Sentral ng Pilipinas’ (BSP) 2%-4% target. It also breached the BSP’s 5.6%-6.4% forecast for the month.

“The BSP took on a more hawkish tone because of above-estimate inflation, raising rates and its inflation forecast to 6.3% for 2026,” it said.

“We likewise see above-target inflation for the rest of 2026, with the possibility of double-digit inflation rates due to base and second-round effects creeping into succeeding readings,” it added.

As inflation is expected to settle above the target for the rest of the year, UA&P expects the BSP to further tighten.

“Our outlook pencils in 75 basis points (bps) more of rate hikes for this year, bringing the policy rate to 5.25%, especially as the April inflation reading trumped even the BSP’s upper inflation bound,” it said.

The central bank last month raised rates for the first time in nearly two years by 25 bps to 4.5%, with BSP Governor Eli M. Remolona, Jr. saying the Monetary Board remains open to extending the tightening cycle to anchor inflation expectations.

NO STAGFLATION – Despite weaker growth and high inflation, UA&P said the country is not experiencing stagflation.

“Despite inflation negative commentary from some analysts, the Philippine economy is not in stagflation mode,” it said.

“Inflation, while elevated, will continually trek downwards after a peace deal gets signed, and growth will return when infrastructure spending resumes along with consumer and business confidence,” it added.

Meanwhile, the peso remains under pressure as crude oil prices surge.

“The peso-dollar rate remained under pressure amid the rebound in crude oil prices (i.e., close to $100/barrel for West Texas Intermediate, and $110/barrel for Brent) in April,” it said.

On Tuesday, the local currency closed P61.56 versus the greenback, weakening by 9.5 centavos from its P61.465 finish on Monday.

UA&P said it expects bonds with longer tenors to deliver higher returns amid elevated interest rates, after investors cautiously returned to the local bond market in April.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the economy of the Philippines will truly rebound in the 2^nd half of this year? What do you think will help boost the national economy apart from foreign investments?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Japanese Business Leaders Pledge $3.4 Billion Worth Of Investments For The Philippines

May 29, 2026May 28, 2026carlocarrasco

The Philippines, which is already struggling with weak economic growth, high fuel prices and rapid inflation, got a boost thanks to Japanese business leaders who pledged investments worth $3.4 billion for the country, according to a news report by GMA News.

To put things in perspective, posted below is an excerpt from the news report of GMA News. Some parts in boldface…

President Ferdinand Marcos Jr. on Wednesday secured stronger commitments for deeper economic integration during a high-level roundtable meeting with top Japanese business executives at the Imperial Hotel in Tokyo.

In his meeting with leaders of Japan’s largest conglomerates and financial institutions, Marcos bagged an aggregate investment commitment of $3.4 billion (approximately P210 billion) from participating Japanese corporations.

In a statement, the Presidential Communications Office (PCO) said these combined capital inflows are “projected to catalyze substantive macroeconomic benefits, expanding domestic industrial capacity and directly generating thousands of high-quality, specialized jobs for Filipinos.”

The PCO added that the infusion “underscores the resilience of the Philippine market, promising long-term economic dividends by fortifying local supply chains, upgrading tourism infrastructure, and accelerating technology transfers across critical growth sectors.”

The President is in Tokyo for a four-day state visit upon the invitation of the Japanese government.

In his remarks, Marcos said a robust Philippine-Japan economic corridor is critical and that laying the groundwork for an enhanced, unified partnership is essential to navigate global difficulties, build resilience, and sustain momentum.

“As we mark 70 years of the normalization of our diplomatic relations, we are no longer simply commemorating history. We are entering a new chapter – a chapter defined not only by friendship, but by deeper integration, shared growth, and a common belief in the future,” the President told the leaders of Japan’s largest conglomerates and financial institutions.

He outlined a unified government approach spearheaded by the Department of Trade and Industry (DTI) and the Department of Tourism (DOT).

“The Philippines is pursuing a clear national direction: building an economy where infrastructure, industry, finance, human capital, and connectivity move together as one system of growth,” Marcos said.

“Increasingly, we recognize that trade and tourism will be among the most important engines of that growth.”

He underscored the importance of stronger trade and tourism linkages, saying these are not supporting sectors but “core drivers of economic expansion in the Philippines moving forward.”

“This is a philosophy our two countries understand deeply,” the President said.

He also acknowledged the foundational contributions of several Japanese firms operating in the Philippines, such as All Nippon Airways, Toyota, Mitsubishi Corporation, Marubeni, Panasonic, and Fast Retailing.

He thanked these Japanese investors for their continued confidence in the Philippine economy and for helping create high-quality opportunities for Filipino workers and industries.

“You are no longer just investors in our economy. You are builders of it,” Marcos told the Japanese business leaders.

Let me end this piece by asking you readers: What is your reaction to this development? Do you think the $3.4 billion investment pledge by Japanese corporations will be a huge boost for the Philippines’ economy? Do you consider the ties of Japan and the Philippines healthy today?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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America’s Pax Silica Prompts P7 Billion Power Expansion In New Clark City

May 28, 2026May 25, 2026carlocarrasco

Pax Silica – the United States’ Pax Silica flagship effort on artificial intelligence (AI) and supply chain security that includes the Philippines – prompted the P7 billion investment of the National Grid Corporation of the Philippines (NGCP) to ensure a stable power supply for New Clark City in Tarlac province, according to a news report by the Manila Bulletin.

To put things in perspective, posted below is an excerpt from the Manila Bulletin report. Some parts in boldface…

The National Grid Corporation of the Philippines (NGCP) plans to invest nearly ₱7 billion in a dedicated substation to guarantee a stable power supply for New Clark City in Capas, Tarlac, anticipating a surge in demand from a planned artificial intelligence (AI) industrial hub.

Joshua Bingcang, president and chief executive officer of the Bases Conversion and Development Authority (BCDA), said the investment promotion agency is currently in talks with NGCP to finalize the project’s details. The grid operator is drafting the alignment plan for the substation, which Bingcang noted should be finalized “soon.”

“Our target with them is by [the] end of 2028, the dedicated power connection should be already installed in New Clark City,” he told reporters last week.

Bingcang added that the BCDA initially offered to fund the project to jump-start construction, with NGCP reimbursing the agency later. However, NGCP declined the offer because the substation is already integrated into its capital expenditures.

Under its Transmission Development Plan 2024 to 2050, NGCP outlined plans to construct the Capas 230-kilovolt (kV) substation to meet the growing power needs of the emerging metropolis. According to the plan, NGCP will allocate ₱6.95 billion to develop the facility.

To facilitate the project, Bingcang said the BCDA is offering land along the Subic-Clark-Tarlac Expressway (SCTEX) to ensure an unimpeded route for the transmission line into New Clark City. Once operational, the substation is expected to give locators in the AI hub the confidence to manufacture high-value inputs without risking operational pauses due to power shortages.

The AI hub will span more than 1,600 hectares within New Clark City as part of the United States-led Pax Silica partnership, which aims to encourage investment among member countries to bolster the global AI supply chain.

To meet the site’s massive energy requirements, Bingcang said the BCDA expects a foreign investor to build a solar energy project capable of generating up to 500 megawatts. Furthermore, the agency is drafting plans for an embedded power plant to secure baseload power and enhance the hub’s overall energy reliability.

In a separate interview with Business 360, Bingcang disclosed that the BCDA is also negotiating with US investors to construct a dedicated pipeline to transport jet fuel from Subic Bay to Clark International Airport, supporting the logistics needs of companies within the AI hub. The agency is also exploring a separate pipeline along SCTEX to deliver fuel or liquefied natural gas.

Additionally, the BCDA is advancing a public-private partnership (PPP) project for New Clark City’s information and communications technology (ICT) infrastructure. According to a bid bulletin published by the PPP Center, the agency aims to conclude the procurement process for a joint venture partner to lay fiber-optic cables across the city by August.

Bingcang noted that all of these infrastructure projects were requested by the US during preliminary talks for the AI hub. Following a visit to the 1,600-hectare site last week, the US will send engineering personnel next month to conduct a site assessment and design a concept plan for the industrial zone.

“Parallel to these technical studies, we will also finalize the commercial arrangement and contractual framework for the project. Within the year, we will be announcing a definitive contract arrangement [with the US],” Bingcang said.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think Pax Silica will prompt further infrastructure and energy developments related with New Clark City as the initiative develops further? Do you think there is room for nuclear power to considered in the years to come?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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