Government defends Philippines’ role in Pax Silica

BONIFACIO GLOBAL CITY, TAGUIG – The government has sought to clarify misconceptions regarding the Philippines’ participation in the Pax Silica framework, describing the initiative as an acceleration of the country’s existing goals while providing an opportunity to capture a share of the artificial intelligence (AI)-driven technological revolution.

Speaking at a forum organized by the Foreign Correspondents Association of the Philippines on Monday, Trade Undersecretary Ceferino “Perry” Rodolfo said the Philippines’ participation is meant to accelerate existing goals, noting that the government had already been working to advance the country’s semiconductor industry before joining the framework in April.

“The Philippines did not start thinking about semiconductors, IT design, advanced manufacturing, critical minerals, connectivity, renewable energy data centers, or AI because of Pax Silica. Far from it. Long before Pax Silica, the Philippines was already working on many of the building blocks of a future technology economy,” he said.

“We were already strengthening digital infrastructure. We were already working on advanced manufacturing. Already investing in human capital,” he added.

The planned 4,000-acre industrial hub in New Clark City, envisioned as a technology and manufacturing center within the Luzon Economic Corridor (LEC), has drawn criticism from some left-wing groups over the project's environmental, social and geopolitical implications.

Rodolfo also clarified that Pax Silica will fall under Philippine jurisdiction, with no diplomatic immunity provided for expatriates working at the site.

“The projects remain Philippine projects. The development objectives remain Philippine development objectives,” he said.

“Pax Silica can help accelerate them. Pax Silica allows us to finally monetize our being a trustworthy trading partner.”

Meanwhile, Bases Conversion and Development Authority (BCDA) President Engr. Joshua Bingcang said the initiative remains a “work in progress,” while clarifying that the project will involve critical mineral refinement, not extraction.

“It's not a mining site. We don't have nickel, we don't have copper in that area,” he said.

“It has to ensure that we comply with laws and regulations. That's the premise so that by 2027 we can start the development,” he added.

BCDA’s role in the planned Pax Silica initiative is to provide the land and develop the infrastructure and industrial ecosystem in New Clark City while coordinating with the Philippine government, US partners and private investors.

The backlash against the initiative culminated in a demonstration at the recent LEC Investment Forum, where hundreds of individuals marched to the Grand Hyatt around the same time President Ferdinand R. Marcos Jr. delivered his keynote address. Five individuals were arrested following alleged violent confrontations with police.

Rodolfo and Bingcang separately upheld Pax Silica’s viability as an important step for the Philippine economy.

“We started work on all of this long before April of this year when we became a partner in the Pax Silica partnership. They arose from our recognition that the Philippines must capture greater value from our natural resources and participate more actively in future technology supply chains,” Rodolfo said.

“The value proposition that this project brings is really tremendous in terms of investment, in terms of export potential in terms of earnings,” added Bingcang, who earlier noted Pax Silica could generate 130,000–190,000 direct jobs, plus an estimated 500,000–800,000 indirect and induced jobs.

The framework is expected to be formally signed in November, pending further deliberation by the parties involved.