5 days ago
PH to US: Invest more so we become 'more reliable defense ally'
Manila on Thursday urged the United States to help the Philippines boost its economic strength through more American investments for it to become a "more reliable defense ally" of Washington.
Speaking at a business forum in Manila attended by close to 40 top American companies, Foreign Affairs Secretary Theresa Lazaro and Manila's Ambassador to Washington Jose Manuel Romualdez said a stronger Philippine economy would enable it to focus on strengthening its defense and security capabilities.
"The strength of our alliance is not just determined by the depth and frequency of our defense and security engagements. For our alliance to be strong politically, it must also be strong economically," Lazaro said during the Association of Southeast Asian Nations (ASEAN)-US Business Council meeting.
Romualdez said an increase in US business presence in the Philippines, given its strategic location, would further bolster America's position in the region, where a rapidly rising China aggressively expands its defense and economic clout.
"At a time when America is diversifying supply chains and rethinking global strategy, we are a natural choice–and a strategic necessity," Romualdez said.
"You are not only investors; you are trusted voices in Washington. I ask you to carry this message to the Trump administration: 'Every US dollar invested in the Philippines strengthens America's position in the Indo-Pacific.'"
"Show them how your projects here create jobs, transfer skills, and reinforce an ally that shares your security goals."
Among all possible economic partners in the region, Lazaro said the Philippine economy remains "strong, steady, and resilient, despite global uncertainties" as it is supported by strategic policy reforms and strong macroeconomic fundamentals.
In the second quarter of 2025, she said the Philippine economy grew 5.5%, slightly higher than the 5.4% growth recorded in the first quarter, outpacing many of its neighbors. On the production side, agriculture posted 7.0% growth, while services sector expanded by 6.9%, she said.
"Driven by strong domestic consumption, a diverse and skilled workforce, and a growing services industry, the Philippines is well-placed as a business processing, manufacturing, supply chain and innovation hub in Southeast Asia and the Asia Pacific region," said Lazaro.
Investment opportunities, she said, are available in various sectors, such as in IT and AI technology, food and agriculture, biomedical and pharmaceuticals, fintech, critical minerals, creative industries, defense industries and infrastructure, among others.
Romuladez said investments in strategic industries would complement and benefit America's defense interests in keeping an open and peaceful Indo-Pacific.
Infrastructure and logistics, he said, serve trade and naval readiness, while energy projects secure reliable power for both industry and defense.
Meanwhile, investments in technology and cybersecurity will protect commercial and military assets and defense industrial partnerships would keep American equipment ready in the region, the envoy added.
"Our alliance is built not just on shared history, but on shared purpose. In today's world, prosperity and security are inseparable," he said.
Last July, Washington has committed $60 million to reinforce the Philippines' energy, maritime, and economic growth programs.
It has also forged a trilateral bloc with Japan and the Philippines under the Biden administration to boost security, economic and investment engagements. Such alliances would help its two closest Asian allies, which both face similar territorial disputes with China, diversify their trading engagements as a buffer in case the disputes spill into the economic front.
"Economic strength is the foundation of strategic strength," said Romualdez. "When US companies invest here, it's not just about returns on capital–it's about returns on alliance. A stronger Philippine economy means a more capable and reliable defense partner for the United States." — VDV, GMA Integrated News
