The value of true partners
In April 2024, the Luzon Economic Corridor (LEC) was launched, touted as the first Partnership for Global Infrastructure corridor in the region. The corridor, which runs from Subic Bay, Clark, Manila, and on to Batangas, is expected to create thousands of high-quality jobs for Filipinos. The enhanced connectivity and cooperation in areas of transport infrastructure, energy systems, digital connectivity, and manufacturing supply chains are expected to make Luzon more prosperous and prepared for greater economic heights.
The LEC was originally a tripartite venture among the Philippines, the United States, and Japan.
But this month, Manila, Washington, and Tokyo announced the expansion of the LEC to include several new countries. Australia, Canada, Denmark, France, Italy, South Korea, Sweden, and the United Kingdom, have pledged technical and financial resources to ensure the success of the LEC, especially in light of current global economic developments.
Australia has committed a P1.9 billion ($32.6 million) funding to mobilize investments through the Manila Deal Team. Denmark is targeting the creation of 10,000 jobs in the shipbuilding industry and green maritime. France is financing the construction of 100 bridges and pouring foreign direct investment in the aeronautics sector. Italy has pledged to facilitate investments in semiconductors, transport, and manufacturing. South Korea has committed to provide a P1.5 billion ($25.6 million) grant for the National Cyber Security Center and Ninoy Aquino International Airport modernization. Sweden is undertaking a P74-million ($1.2 million) feasibility study for the Subic-Clark-Manila-Batangas freight railway. And the UK is providing P411 billion ($6.8 billion) in export finance for infrastructure and energy.
In a Stratbase-commissioned survey conducted in September 2025, Filipinos identified the US, Japan, Australia, the UK, Canada, South Korea, and the European Union as the Philippines’ most important partners for economic security amid global risks.
Clearly, Filipinos are aware of who our true friends are.
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The entry of these seven countries reinforces two key ideas: first, that progress and prosperity can never be achieved in isolation. Second, it is important to not be too dependent on any single power.
Today’s geopolitical situation has become so volatile and threats to people’s lives come in many forms. Physical threats wield potential harm on one’s person. Democratic threats are acts and decisions made that endanger the political system that is supposed to be by the people and for the people. Information threats undermine their capacity to make enlightened decisions.
At the core lie economic threats that prevent the people from leading dignified lives.
Collaboration measures such as the expanded LEC show us that like-minded countries are trusted partners that help build and finance critical infrastructure, strengthen resilient supply chains, and help position the Philippines as a key economic and logistics hub in the Indo-Pacific. These commitments from like-minded friends are a good complement to the Philippines’ democratic and geographic advantage: a young and skilled workforce, a strategic maritime location, and a growing domestic market.
The collaborative, multilateral nature of the LEC underscores the importance of a common commitment to transparency and rules-based trade. Traditional infrastructure programs are good, of course. But the LEC maximizes opportunities that are anchored on shared values, genuine collaboration, and empowerment. For its part, this is the Philippines’ broader strategy to attract foreign investment and to expand its role in regional manufacturing amid uncertain global supply chains. It seeks to have a more meaningful role as a regional economic hub, powered by resilience, stability, and strategic autonomy across critical sectors such as energy, transport, digital connectivity, and advanced manufacturing.
In all this, energy security has emerged as a central pillar of the corridor. Investments in grid modernization, fuel logistics, energy storage, modular power systems, and civil nuclear cooperation–including small modular reactor feasibility studies–are designed to improve long-term energy resilience and reduce vulnerabilities to external shocks.
But having these like-minded friends cast their lot on an important economic corridor is only an initial gain. Moving forward, much will depend on policy continuity and implementation. Reforms such as the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act, improved public-private partnership frameworks, streamlined permitting processes, and accelerated right-of-way mechanisms are essential to sustaining investor confidence and realizing the aims of the partnerships.
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Dindo Manhit is the founder and CEO of Stratbase Group.
