THE country could miss out on investments and industrial opportunities linked to the United States (US)-led Pax Silica initiative if it fails to put the necessary policies, infrastructure and workforce in place, according to the Makati Business Club (MBC).
MBC Chairman Edgar Chua said Thursday that the country needs to prepare early for the initiative while addressing concerns about its potential implications for the environment and the use of the country’s natural resources.
‘Pax Silica is not just an American initiative,’ Chua told reporters after the business group’s media get-together in Makati City. ‘It’s a US-led initiative, but it’s not the US alone.’
Chua warned that the Philippines could lose the opportunity altogether if it fails to act. ‘It could happen. It could not happen. It could be another missed opportunity. It’s up to us,’ he said.
Part of that preparation, he said, is determining what industries could emerge from Pax Silica so schools and training institutions can develop workers with the skills those industries will require.
‘We should already put in place the necessary framework. Some of them may be legislation, some of them may be infrastructure,’ Chua said.
‘We need to know what industries will come here so that our students can be trained on what is needed, and what kind of graduates we need to produce,’ he added.
Pax Silica is envisioned to support an advanced manufacturing complex in New Clark City focused on industries such as semiconductor production, including wafer fabrication and chip design, as well as critical minerals processing.
The proposed development is also linked to the Clark Advanced Manufacturing Park (CAMP), a physical development platform in New Clark City intended to attract advanced manufacturing and technology-related investments.
The Bases Conversion and Development Authority (BCDA) recently began updating its census of families and residents in Sitio Sapang Kawayan, Capas, Tarlac, as part of preparations for CAMP.
BCDA, however, has clarified that CAMP is the proposed physical development, while Pax Silica refers to the broader international strategic partnership covering critical minerals, semiconductors, advanced manufacturing and artificial intelligence infrastructure.
For Chua, one potential gain for the Philippines is moving up the value chain by processing more of its own mineral resources instead of exporting them in raw form.
‘All of our natural resources are exported as natural resources,’ he said, noting that about 90 percent of the country’s nickel is exported to China. ‘So what Pax Silica hopefully will do is, we can do processing here in the Philippines, rather than process outside. So there’s value added.’
The scale of the proposed development makes early preparation more important, he added.
Once the 1,620-hectare development reaches full buildout and becomes integrated into global supply chains for AI, semiconductors and advanced manufacturing, total investments are projected to reach $40 billion to $70 billion, according to BCDA.
‘There are many things that need to be done there,’ Chua said.
MBC has also engaged with the American Chamber of Commerce of the Philippines and the US Embassy as it discusses the initiative and its potential implications for the country.