Windfall benefits from the trilateral summit

We Filipinos have waited a lifetime for our era of investment-led prosperity. We watched, with equal amounts of gladness and envy, as our neighbors developed on the back of investments and exports. We, on the other hand, survived by deploying our people abroad and waiting on their remittances.

Here is the game changing news. All indications show that our time as an investment laggard is coming to an end. The investment “gods” have smiled upon us and massive investments are coming our way. “Gods,” in this case, is a metaphor for the world’s first and fourth largest economies, the US and Japan.

Following the trilateral summit four weeks ago, our trilateral allies committed to invest some $100 billion into the Philippines over the next five years. Investments will come in the form of physical and digital infrastructure, semiconductor manufacturing, defense hardware, mining of rare minerals, renewable energy, nuclear power, advanced biology, next generation communications (the open Radio Access Network is already in its trial stage) and advanced technologies like quantum computing.

For context, $100 billion is 11 times the amount of foreign investments generated last year.

Japan is also investing to capacitate our workforce. Training programs are afoot for specialized disciplines such as mobile application engineering, data science, AI, cloud computing, cyber security, IOT engineering, server engineering and IT project management.

The geographical focus of all these investments is the Luzon Economic Corridor. This traverses Subic, Clark, Metro Manila and Batangas.

On top of this, a bill was filed in the US Senate to grant the Philippines $2.5 billion over the next five years and another $2.5 billion thereafter to modernize the Philippine armed forces.

I recently spoke to a high ranking Japanese official and asked him why the sudden focus on the Philippines. He offered four reasons.

First, the US and Japan both acknowledge the Philippines’ excellent economic fundamentals and prospects for sustained high growth for at least a decade. Our allies are committed to take advantage of this favorable momentum.

Second, Japan, the US and the Philippines have a strong, long-standing history of partnership and friendship. We share the same ocean, values, principles and geopolitical interests. As for Japan, our friendship started as early as the Muromachi period in the 15th century.

Japan views the Filipino people differently from the rest of the region. While the entire Southeast Asia is important, the partnership with the Philippines is “irreplaceable.” Correspondingly, an overwhelming 84 percent of Filipinos view Japan favorably.

Third, the three countries are committed to build resilient, reliable and diversified supply chains as a defensive measure against economic security threats.

Fourth, a stronger Philippines means a stronger line of defense against countries wanting to disrupt the peace and stability of the region.

On security

The trilateral summit is the culmination of the close relations of the three countries. It was the first time that such a historical summit has taken place.

At the heart of the summit were discussions on matters relating to security, strengthening economic ties and technological cooperation. It was a gathering among equals and trusted friends. All share the vision of a free and open Indo-Pacific and an international order based on the rule of law.

The three countries expressed their concerns about China’s aggressive behavior in the East and South China Seas. All are concerned about China’s unlawful maritime claims and its militarization of the disputed waters.

The three nations reaffirmed the importance of peace and stability across the Taiwan Strait as an indispensable element of global security. All called for a peaceful resolution of cross-strait issues.

The three allies reiterated their strong opposition to China’s attempts to unilaterally change the status quo by force and coercion. This applies too to China’s attempt to undermine Japan’s longstanding and peaceful administration of the Senkaku Islands.

All three steadfastly oppose the dangerous and coercive use of coast guards and maritime militia vessels in the South China Sea as well as efforts to disrupt the offshore resource exploitation of other countries. They emphasized their concern over China’s repeated obstruction of Philippine vessels in the Second Thomas (Ayungin) Shoal. China has displayed destabilizing conduct not becoming of a good global citizen.

The three countries called for China to abide by the final and legally binding July 12, 2016 ruling of the Permanent Court of Arbitration.

Japan and the US pledged to develop and support Philippine defense capabilities. For Japan’s part, it is doing so by way of the Official Security Assistance (OSA) cooperation framework. Through the OSA, Japan is transferring critical defense equipment and training to the Philippines. Again, a stronger Philippines means a stronger line of deterrence against China.

The three also agreed to strengthen their coordination to promote maritime domain awareness and deepen cooperation on humanitarian assistance and disaster relief. Balikatan will take place in 2025 to ensure all three countries are ready and able to work together seamlessly during crisis or contingency. The three nations will advance trilateral defense cooperation through combined naval training exercises with other like-minded partners.

Finally and more significantly, President Biden reaffirmed America’s ironclad alliance commitment to both Japan and the Philippines. Biden said that an armed attack against Japan or the Philippines will trigger our respective mutual defense treaties.

The summit ended with the three countries reiterating their commitment to democracy, to the rule of law, to human rights, equality and human dignity. United by these values, the three are committed to continue the work to address the consequential issues of our time.

Meanwhile, the Philippines is seen to greatly benefit as a trilateral partner of the US and Japan. Our time of rapid development is on the horizon. Thanks to President Marcos’ pivot to the alliance of democracy, we now have reason to be optimistic.

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Email: [email protected]. Follow him on Twitter @aj_masigan