US Companies to Invest $1 Billion in Philippines, Raimondo Says

(Bloomberg) -- US companies that joined the trade and investment mission organized by President Joe Biden will invest more than $1 billion in the Philippines, according to US Commerce Secretary Gina Raimondo who leads the delegation.

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The US and Philippines alliance is “ironclad,” Raimondo said in a joint briefing by the US group and Philippine officials Monday. The commerce secretary leads an investment mission with about 20 American executives to strengthen economic relations.

Microsoft Corp. announced new partnerships and programs to accelerate AI adoption in the Philippines, according to a separate statement. Other US investments include in the areas of digital upskilling, solar and nuclear projects, and a new airline route to Cebu province, Raimondo said.

Raimondo is also heading to Thailand this week, as the US seeks to bolster influence in Southeast Asia — a region that’s trying to balance longstanding relations with the US and close economic ties with China — amid the intensifying rivalry between Washington and Beijing.

Asked about the US push to clip China’s domestic chip capabilities, Raimondo said that the US will do what it takes to protect its interest. Washington has no interest to decouple from China, she added.

President Ferdinand Marcos Jr., for his part, said he expects his nation to benefit from the US’s potential support under the CHIPS Act. The Philippines under Marcos has been boosting its security alliance with the US by granting expanded access to American soldiers and holding joint patrols in the South China Sea.

“We are poised to churn out a robust talent pool of 128,000 semiconductor engineers and technicians by the year 2028 ready to meet the expanding needs of high-technology industries,” Marcos said Monday in his address during the courtesy call of the US delegation.

The South China Sea has been the site of clashes between Philippine and Chinese vessels as they assert overlapping claims in a vital trade route that holds significant energy potential.

Now, Manila wants to leverage its longstanding defense alliance with the US to reap economic gains, including tapping the disputed sea’s oil and gas resources. Marcos has been trying to woo investments to the Philippines to keep the nation’s luster as one of the region’s economic growth stars.

“President Marcos has said that he can’t imagine the Philippines’ future without the close bond with the US. I want to say here today, the feeling is mutual,” Raimondo told the briefing.

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