Philippines aims to be Asia’s next logistics hub with US support
According to President Ferdinand Marcos Jr, the Philippines is positioning itself as Asia’s next manufacturing and logistics hub, leveraging its strengthening relationship with the United States.
Under the leadership of Marcos, the Philippines has bolstered its defence and economic cooperation with Washington, which recently committed to accelerating investments in the nation’s transport infrastructure, clean energy, and semiconductor supply chains through the Luzon Economic Corridor.
“These initiatives will enhance freight transport services, mobility, and access to key economic zones, ensuring business continuity and positioning the Philippines as a regional hub for agribusiness and logistics in the Asia Pacific.”
President Marcos highlighted that the country’s infrastructure programme, which encompasses 185 priority projects valued at 9.5 trillion pesos (5.9 trillion baht), aims to establish the Philippines as the next logistics centre in Asia.
This ambition places the Philippines in direct competition with neighbouring countries like Vietnam and Indonesia, which are also intensifying their efforts in these sectors.
Southeast Asian nations, known for their skilled and affordable workforce, are vying for a share of the substantial investments likely to flow into the region as the US and its allies diversify away from China.
Despite being one of the fastest-growing economies in the region and opening more sectors to foreign investors, including renewable energy, the Philippines has trailed behind its neighbours in attracting foreign funds for factory construction.
Net foreign direct investment inflows to the country decreased by 7% to US$8.9 billion (323 billion baht) last year compared to 2022.
The business forum in Manila is part of Washington’s strategy to strengthen economic ties with the Philippines, alongside bolstering defence relations amidst rising tensions with Beijing over the South China Sea.
This forum follows the first trilateral summit between the US, Philippines, and Japan at the White House last month, where the allies committed to expanding investment partnerships while renewing security alliances.
US Assistant Secretary of State for East Asian and Pacific Affairs Daniel Kritenbrink believes that the prosperity of everyday Americans is inextricably linked to the Indo-Pacific.”
Marcos emphasised the Philippines’ goal of greater integration into global value chains and attracting increased foreign direct investments to sustain economic growth, stating that an economically strong Philippines will be a valuable ally in the region, reported Bangkok Post.
Latest Thailand News
Follow The Thaiger on Google News:
