US-led Luzon corridor in Philippines faces growing scrutiny over real local benefits

While Philippine President Ferdinand Marcos Jnr was pitching the Luzon Economic Corridor to a 600-strong delegation of foreign investors and officials last week, protesters outside were clashing with police, accusing the US-backed initiative of exploiting the country’s resources.

The backlash mirrored opposition against the Pax Silica AI supply chain drive – a separate proposal but again, American-led. It underscored mounting tension over the ambitious corridor, since expanded from a transport and logistics project into development plans for energy, digital infrastructure, critical minerals and advanced manufacturing.

Analysts say the pushback does not necessarily signal a wider rejection of Washington in a country where public trust in the US remains relatively strong. But the latest stirrings point to scepticism over local benefit from such foreign investments.

The inaugural Luzon Economic Corridor Investment Forum on Thursday and Friday at the Grand Hyatt Hotel in Bonifacio Global City was sponsored by the US Trade and Development Authority and co-hosted by the Philippines, the United States and Japan – countries that had announced the initiative during a summit in 2024.

Tensions erupted outside the venue, with human rights group Karapatan claiming that over two dozen supporters were injured and five paralegals arrested while protesting what the group called a “US-backed open house for the plunder of Philippine resources”.