Philippines races to turn Pax Silica into reality before political changes derail dreams

The Philippines has less than two years to turn its ambitious Pax Silica project from a US-backed plan into a functioning industrial hub before a change of government in Manila – and potentially Washington – puts its future to the test.

Pax Silica is an initiative by US President Donald Trump’s administration to diversify US supplies of critical minerals and semiconductors. The Philippines is seeking to position itself as a manufacturing base for companies looking to reduce their dependence on China.

With Philippine President Ferdinand Marcos Jnr due to leave office in 2028 and Trump facing midterm elections next year that could change control of Congress, the project needs to move quickly to establish agreements and infrastructure that can survive political change, according to Jonathan Ravelas, a former chief market strategist at the Philippines’ largest bank, BDO.

“The faster the government can institutionalise agreements and deliver infrastructure, the lower the political risk,” Ravelas, now managing director of eManagement for Business and Marketing Services, told This Week in Asia.