US$60 million in foreign assistance funding was committed to the Philippines in July 2025, a quarter of which was dedicated to developing the economic corridor. In April, a 4,000-acre (about 1,620ha) high-tech industrial hub was announced in New Clark City, undergoing development north of Manila.
That same month, the Philippines joined Pax Silica, a US-led initiative to secure artificial intelligence supply chains, in which Singapore also participates. While meant to promote US economic security and reduce Chinese dependency, the coalition also promises to help countries climb the tech value chain and attract investments.
This is good news for Manila, and a welcome sign for the rest of the region. Washington’s approach to the Philippines shows a viable blueprint for how it intends to work with Southeast Asian partners. But whether it is a durable strategy under a volatile Washington is the bigger question.
A HEAVY DEFENCE FOCUS
The industrial hub and Manila’s membership in Pax Silica bears the hallmarks of US economic initiatives under Mr Trump. These initiatives are not guided by altruism, but business opportunities and economic security.
Such an economic focus would be a welcome change for the Philippines. The driving force behind US-Philippine ties over the past 16 years has been defence and security issues, with Manila seeking US support for its maritime claims and Washington wanting arrangements to aid it in the event of a Taiwan contingency. However, the concern has been that this defence focus came at the expense of economic engagement.