MAP wants 'protected approach' for Pax Silica
The Management Association of the Philippines (MAP), a group of top-level executives and business leaders, is backing the Philippines’ participation in the US-led Pax Silica initiative, but with reservations.
“MAP supports the pursuit of the Pax Silica Initiative because it presents a potentially transformative opportunity to accelerate industrial development, create quality jobs, develop Filipino talent, and strengthen the nation’s position in the global economy,” the group said.
“However, support for the initiative must be accompanied by clear safeguards that ensure technology transfer, environmental sustainability, inclusive growth, Filipino capability building, and the protection of national interests,” it said.
Pax Silica is the US Department of State's flagship initiative on artificial intelligence and supply chain security, aimed at advancing a new economic security framework among allies and trusted partners.
The Philippines in April officially joined the Pax Silica initiative, cementing its place among other 23 global signatories, including the European Union, Japan, India, Singapore, South Korea, and the United Kingdom
As part of the initiative, Manila and Washington are working to establish a 4,000-acre industrial hub that is envisioned as a new model for AI-focused investment within the Luzon Economic Corridor.
EXPLAINER: What is Pax Silica and why are people worried?
‘Strategic negotiation’
For MAP, the Philippines “should neither approach Pax Silica with blind optimism nor reflexive opposition,” adding that the country should approach it as “a strategic negotiation.”
“MAP therefore supports a ‘Proceed, but Protected’ approach: actively pursue the opportunity, negotiate from a position of national interest, and establish the guardrails necessary to ensure that the benefits are broad-based, sustainable, and unmistakably Filipino,” the group said.
The top-level business leaders’ group added that it recognizes the legitimate concerns raised by various sectors regarding environmental sustainability, resource utilization, community impact, economic sovereignty, and the long-term strategic interests of the Philippines.
Critics of the Pax Silica initiative, such as the Makabayan Bloc, claimed that the project could have negative effects on the environment because AI facilities require massive amounts of water and electricity.
“As the country’s leading organization of management professionals, MAP believes that the discussion should not be framed as whether the Philippines should categorically embrace or reject Pax Silica. Rather, the critical issue is whether the agreements, governance structures, and implementation mechanisms can be designed in a manner that maximizes value to the Filipino people while effectively managing economic, social, environmental, and geopolitical risks,” it said.
MAP recommended the establishment of an independent multi-stakeholder oversight structure composed of representatives from government, business, academia, labor, civil society, and relevant technical experts.
“This body should regularly monitor progress against commitments relating to investments delivered, jobs created, Filipino workforce participation, technology transfer, environmental performance, community impact, and economic value generated for the Philippines,” the group said.
“Public disclosure of key performance indicators will help build trust, strengthen accountability, and foster informed public dialogue,” it said.
MAP listed the following “guardrails” for the country’s adoption of the Pax Silica initiative:
Industrialization and value addition must be a core objective: The Philippines should ensure that Pax Silica contributes to domestic industrial capabilities rather than merely serving as a location for extraction, assembly, or low-value activity. The agreements should encourage progressive value addition in mineral processing, component manufacturing, technology development, advanced manufacturing, and research activities.
Technology transfer and capability building must be measurable: Long-term success should be measured not only by investment inflows but also by capabilities developed among Filipinos. MAP advocates commitments on local R&D, university and research partnerships, workforce development, scholarships, internships, technical training, and pathways for Filipino technical and managerial leadership.
Filipino employment and leadership participation must be prioritized: Employment targets should focus on quality jobs and career progression. Foreign expertise may be necessary at the outset, but there should be clear localization plans to increase Filipino participation in technical, professional, supervisory, and leadership roles over time.
Strong environmental stewardship must be non-negotiable: Economic progress and environmental responsibility must advance together. Given concerns on water use, power demand, emissions, biodiversity, and resource utilization, MAP supports rigorous safeguards, transparency measures, independent monitoring, and compliance with Philippine laws and international best practices.
Community protection and inclusive growth must be guaranteed: The benefits of Pax Silica should extend beyond investors and large corporations. Implementation should promote local hiring, SME participation in supply chains, skills development programs, community infrastructure investments, and transparent stakeholder engagement.
National sovereignty and Philippine jurisdiction must be preserved: All activities within Pax Silica should remain fully subject to Philippine laws, regulations, taxation rules, labor standards, environmental requirements, and judicial processes. Economic partnerships should strengthen—not diminish—the Philippines’ policy autonomy.
— RSJ, GMA News