PH pushes AI, green manufacturing gateway bid

The Philippines is positioning itself as a regional gateway for artificial intelligence, renewable energy and resilient manufacturing as ASEAN economies confront geopolitical shocks, energy risks and shifting global supply chains.

The outlook was presented during the second day of the ASEAN Business Media Exchange 2026, held May 7 at the Bagong Pilipinas Studio.

The forum gathered business leaders, trade officials and economic experts who expressed optimism over the country’s investment prospects as the government expands its push for AI and renewable energy development.

The exchange was a side event of the 48th ASEAN Summit in Cebu, held May 6–8 under the Philippines’ 2026 ASEAN chairship.

The event was organized by the ASEAN Committee on Business and Investment Promotion, led by the Department of Trade and Industry and the Board of Investments, in partnership with the Presidential Communications Office.

The forum examined emerging opportunities for ASEAN as the region faces geopolitical and economic headwinds, including the Middle East crisis and its impact on energy security.

Trade Undersecretary and BOI Managing Head Ceferino Rodolfo led and moderated the first panel discussion, which focused on the evolving geopolitical landscape and its effects on the global economy and ASEAN.

Panelists said accelerating renewable energy investments is critical to strengthening regional energy security as shocks from the Middle East crisis continue.

Discussions also highlighted the Philippines’ reserves of green metals, including nickel, copper and cobalt, which officials said could support sustainable energy development.

Rodolfo said the Philippines is making progress in renewable energy and electric vehicle development.

He said Mitsubishi Motors is set to establish a hybrid assembly manufacturing facility in the country, reflecting investor confidence in the Philippine market.

After the second panel discussion, Adam Schwarz, founder and CEO of Asia Group Advisors, said the Philippines has strong potential as a renewable energy investment destination because of its role in strengthening regional energy resilience.

“Across the region, we’re seeing countries looking to make these investments and attract investments that will help contribute to that resilience,” Schwarz said. “With its geography and its capacity to build renewable energy, the Philippines should be right at the forefront.”

Schwarz said the Philippines, as this year’s ASEAN chair, must balance national priorities with deeper regional cooperation to build a more unified ASEAN response to global disruptions.

Jonas Marie Dumdum, senior consultant for the NRI Singapore-Manila branch, urged the government to sustain its focus on renewable energy at both large-scale and commercial levels.

“We bring our energy closer to home. It is important that we harmonize and coordinate this shared vision so that we can harness what we already have here in the Philippines,” Dumdum said.

Dumdum also stressed the need for investments in battery manufacturing to maximize the country’s resources.

“Try to see what’s important to them and address these because we have the strengths as Southeast Asia, as a Filipino, and I believe that we do have the skills, the knowledge, it’s really just more of enhancing, innovating, and really harnessing the talent we have,” he added.

Energy security was also the focus of the third panel discussion, which featured Felix William B. Fuentebella Jr., undersecretary of the Department of Energy; Ruben Camba, managing director for Southeast Asia of ACCIONA; and Violeta Dominguez, head of Spanish Cooperation in the Philippines, AECID PH.

James Villafuerte, regional lead economist for ASEAN of the Asian Development Bank, said targeted subsidies and reduced excise taxes are needed to cushion vulnerable households from the economic effects of the Middle East crisis.

Villafuerte also called for stronger social protection systems to serve as safety nets during periods of global instability.

“Let’s not waste a crisis. This crisis is big enough that we need to work together to mitigate its impact and build a more resilient and sustainable future for ASEAN,” Villafuerte said.

Villafuerte identified regional self-insurance, integrated supply chains and innovative technologies as key pillars of recovery.

Camba said ACCIONA remains bullish on the Philippines, citing ongoing investments in wind and solar farms in Luzon and the Visayas.

He said the company plans to expand further in 2027.

“The administration is doing good, that’s why we are here, we want to be here, and we want to stay,” Camba said.

Camba also praised the government’s focus on energy resilience through renewable energy.

Dominguez said renewable energy presents significant opportunities for inclusive growth and social stability in the Philippines.

The second session examined how the Philippines is building on partnerships to accelerate its emergence as a premier investment destination in the region.

Rodolfo joined Hiroyasu Kanda, managing director and country head of Sumitomo Mitsui Banking Corp. Manila Branch, in discussing the country’s investment positioning.

Rodolfo said the Philippines is joining a global alliance of trusted partners for AI technology.

He cited the creation of a 4,000-acre AI industrial acceleration zone in New Clark City called “Pax Silica,” described as the first AI-native industrial acceleration hub.

The United States and the Philippines announced in April that the 4,000-acre industrial hub in New Clark City would support supply chain security in AI and semiconductor sectors under the Pax Silica initiative.

“What’s very exciting as we move forward the future would be our integration into the AI tech ecosystem. Now, we have the opportunity for our manufacturing sector to be part of those that are making the components, that hardware for the AI ecosystem, and those that go into data centers, chips, and connectors,” Rodolfo added.

Rodolfo said the country has already laid the groundwork for investment acceleration through the Green Lane Initiative.

“We are not starting from scratch,” Rodolfo said.

The government has prioritized renewable energy, mining and mineral processing, digital infrastructure, tourism, and high-value manufacturing, including semiconductors.

Kanda said he is confident the Philippines can still attract Japanese investors.

He said logistics infrastructure and digitalization should be government priorities to draw more investment into the country.

The final session focused on the impact of the Middle East crisis on ASEAN’s manufacturing landscape.

Panelists included Tereso O. Panga, director general of the Philippine Economic Zone Authority; Bobby Batungbacal, vice president for industry development at SteelAsia; and Greg Banzon, executive vice president and chief operating officer of Century Pacific Agricultural Ventures.

The panelists emphasized government support and regional collaboration as key to strengthening the Philippine manufacturing sector.

They also called for more intra-regional trade in ASEAN, particularly in green sectors such as automotive and electronics.

The panelists said ASEAN can use complementary stages of development to improve competitiveness and diversify supply chains.

Batungbacal said manufacturing remains an anchor industry for ASEAN.

He said SteelAsia produces green steel with a lower carbon footprint.

Batungbacal said the company’s Calaca plant uses geothermal energy, demonstrating the Philippines’ renewable energy potential.

SteelAsia’s Calaca plant is the only integrated steel works facility in the Philippines.

“We see that the government is much more involved in the industrial development,” Batungbacal said, underscoring the importance of regionalization in ASEAN.

Banzon said trade associations can help strengthen regional manufacturers’ ability to compete.

“Here in the Philippines, trade associations band together and generate a stronger ability to market. Imagine if Thailand, Indonesia, Malaysia, Singapore, and the Philippines, the manufacturers, banded together to harness their strengths to be able to compete and serve the global market. That would be a dream,” Banzon said.