DEPDev: Pax Silica can help diversify PH economy, not limited to AI

Department of Economy, Planning and Development Secretary Arsenio Balisacan said the Philippines’ participation in the US-led Pax Silica initiative could help diversify the economy by attracting investments in industrialization and value-adding activities.

Balisacan said discussions on Pax Silica are still ongoing but pointed to the potential of the initiative to bring in investments that could strengthen higher-value economic activities in the country.

“Moving discussion pa ‘yan sa Pax Silica but let’s say, you have seen my presentation, right? We have to diversify the economy, and things like Pax Silica, to the extent that we’re able to attract investors that promote industrialization, value-adding activities, economic activities," Baliscan said in an ambush interview during the Economic Journalists Association of the Philippines (EJAP) Forum on Friday.

(The discussion on Pax Silica is still ongoing, but as you have seen in my presentation, we have to diversify the economy. Initiatives like Pax Silica, to the extent that we are able to attract investors that promote industrialization, value-adding activities, and economic activities.)

He said such investments could improve the quality of the country’s economic growth.

Balisacan was also asked about environmental concerns surrounding the initiative, including its potential use of water and energy.

He said environmental safeguards had been discussed and that, based on his understanding, technologies and measures are being considered to protect the environment.

“I think… those have been properly discussed. And according to the BCDA, which has been preparing the master plan, there are technologies and there are assurances that there are safeguards to ensure that the environment is protected,” he said.

Balisacan also clarified tha based on his understanding, Pax Silica is not limited to artificial intelligence or data centers.

“Again, as I understand it, the Pax Silica is not about AI or data centers which uses a lot of water and power. It’s much more than that,” he said.

Pax Silica is a US-led economic security framework focused on strengthening supply chains for artificial intelligence and the semiconductor industry. The Philippines is among the 24 countries that have signed the agreement.

An AI-focused industrial hub spanning 1,600 hectares is being eyed in New Clark City in Tarlac as part of the initiative.

The proposed project aims to process critical minerals and develop high-tech components for the AI and semiconductor industries.

The government has said the initiative is intended to strengthen high-value manufacturing rather than simply establish AI data centers.

Environmental groups, however, have raised concerns over the potential consumption of water and energy, as well as possible effects on communities and the environment.

The Bases Conversion and Development Authority, which is preparing the master plan, has said environmental safeguards will be observed. — Sherylin Untalan/RSJ, GMA News