A Sensible Middle Road on My Stance with Pax Silica?

Britanica

The Pax Silica deal can set out many false dichotomies. We can think about dichotomies like pro-AI vs. anti-AI. Filipino Pride vs. Colonial Mentality, etc. However, it's possible that a person can be for FDI, for AI, and oppose Pax Silica on other grounds. For example, I found some people who actually comment on Facebook like:

• "Yes to FDI but let's be careful about what we allow."
• "We can allow 100% FDI, but I don't think the Philippines is fit for Pax Silica."
  
• "I'm for AI, but let's face it, we need to think about nature first." 

It's a good thing that I'm reading some who oppose Pax Silica aren't raising alarmism like Kabataan Partylist is apparently doing. Right now, I can't really say if I'm for Pax Silica or against Pax Silica. It's because I'm for FDI, but I'm not for FDI without reasonable restrictions. What I want to do now is to do some analysis on the situation.

Why I definitely won't side with Makabayan Bloc even if I'm ever against Pax Silica

Bagong Alansyang Makabayan

I can be against Pax Silica and not side with Bayan Muna. I was reading through the member states. The Manila Bulletin reveals this detail on Pax Silica, and this information may explain the berserk reaction of the Makabayan Bloc, such as those of Bayan Muna and Kabataan Partylist:

What Is Pax Silica?

Pax Silica members include the United States, Japan, Australia, India, Israel, South Korea, the United Kingdom, and several European nations, with the Netherlands and the EU among the more recent entrants. The Philippines signed on in April 2026 as roughly the 13th member, becoming one of only two Southeast Asian countries in the coalition alongside Singapore.

At the center of the Philippine deal is a proposed 4,000-acre (about 1,620-hectare) "Economic Security Zone" inside New Clark City, Tarlac province, on land administered by the Bases Conversion and Development Authority (BCDA). The site is billed as the first "AI-native industrial acceleration hub" under the initiative, intended to host semiconductor assembly, testing and packaging, advanced manufacturing, and AI infrastructure development.

Liza Maza Facebook Page

This makes me think that Makabayan Bloc's opposition may have some other agenda. When I read that Singapore signed the Pax Silica agreement, I can't help but think that Makabayan Bloc (and groups like Migrante International) are still allergic to Singapore. Let's face it, it's already been 30+ years since Flor was executed in Singapore. However, these Flor Contemplacion crybabies have been spreading the fake news since 1995 and it's already 2026. This gives me the right to ask, "Is Makabayan Bloc opposing Pax Silica for a good reason but only because the word Singapore showed up? Are it already members of Makabayan Bloc saying, "We shall never associate ourselves with Singapore for Flor Contemplacion's death!" Just think that The Flor Contemplacion Story was made available on YouTube during constitutional reform talks!

It's valid to raise issues like environmental concerns, such as these need to be addressed as it's people first, profits next. Also from Manila Bulletin, which I can agree:

Mass displacement. Estimates cited by advocacy groups suggest as many as 20,000 residents and 15,000 farmers could be displaced by the New Clark City hub. Critics argue that the absence of formal land titles, common among communities that have lived on the land for generations, is being used to erase their claims rather than protect them.

Water scarcity. The Sacobia watershed, the primary water source for New Clark City, has reportedly shown signs of strain since 2020. Environmental advocates warn that a large industrial and semiconductor hub could worsen water stress for surrounding communities, even as government officials insist supply is sufficient and that local needs will remain the priority.

Mining expansion and pollution. Because the initiative depends on securing critical minerals, opponents fear it will accelerate large-scale mining in provinces such as Zambales, Palawan, and Nueva Vizcaya — areas that have already suffered from deforestation, contaminated rivers, and mine tailings from decades of extraction. The farmers' group Kilusang Magbubukid ng Pilipinas (KMP) has also pointed to soil and groundwater contamination linked to former US military bases in Clark and Subic as a warning sign of what could recur.

Food security. Much of the land under discussion supports rice, coconut, and other food production. Converting agricultural and coastal land into industrial and mining corridors, critics say, could undermine local food supplies.

 

However, the Makabayan Bloc seems to go with the all-or-nothing approach or false dichotomies. The way that Atty. Renee M. Co of Kabataan Partylist is talking, it's as if she is saying something like, "Either you support local industries or the foreign industries." Honestly, she's really living like she has that Vietnam War mentality. It's crazy to think that the Kabataan Partylist are dressed up like the Ho Chi Minh Communist Youth Union aka Doan Thanh Nien. However, unlike Doan Thanh Nien, Kabataan Partylist continues to live like it's still the Vietnam War days. 

I'm for Pax Silica, but there's always room to reconsider how to get into it; otherwise, I'm out

Thankfully, some people on Facebook have actually raised, "We can be for Pax Silica, but there has to be some reasonable agreements." This is one thing that was also raised by Manila Bulletin, which should be of topmost concern:

Sovereignty and legal jurisdiction. A separate controversy erupted in May 2026 after BCDA president Joshua Bingcang said the United States had requested that the zone operate under US law with diplomatic immunity for American personnel, a request the Philippine government said it rejected. A US State Department official later said the remarks were "taken out of context," insisting the request was about legal predictability for investors rather than immunity. The episode nonetheless fueled concerns, echoed in a House resolution filed by the Makabayan bloc, that the zone could compound foreign—particularly US military and economic—influence over Philippine territory. 

In the US, there have been concerns of data centers affecting communities. Such as losing water, increased heat, and noise pollution. 

On top of this, it has been forecasted that by 2035, about nine years from now, data centers will be consuming about four times as much electricity than today, which may increase electricity bills, contribute to air pollution, and strain electric grids.

This makes me think that Pax Silica might make the late Lee Kuan Yew roll in his grave. It's because LKY advocated for a green Singapore in his book From Third World to First. I was reading the paperback, and honestly, I can agree that environmental preservation is vital for long-term profits. After all, money becomes useless when there's nothing to spend it on because the last river was poisoned, the last fish was caught, and the last tree was cut down. After all, you need natural materials to make the very money, such as cotton and abaca. Polymers still require natural resources to make them, meaning that without nature, money couldn't be produced at all! 

Creating data processing requires plenty of resources. It can become problematic because the amount of water and electricity may not be enough. I was thinking about the problem of the Philippines' electrical supply. People tend to use really idiotic measures and reasoning. For example, it's easy to blame corrupt officials for using air conditioners 24/7 when that's just a ripple to the grid compared to the amount of energy used by shopping malls (centralized air conditioners) and factories). In short, if President Ferdinand "Bongbong" Marcos Jr. ran Bongbong's Piaya (joke reference) and operated Hacienda Bongbong (with 24/7 aircon), the chances are his bill from running Bongbong's Piaya will still be bigger. The real issue is that the demand for electricity in the Philippines (which exponentially increaes with the more electricity is needed) is larger than the supply. Naturally, the cost of electricity has to increase because of the cost of maintaining it, and keeping it running has become congested. 

Would the proposed 4,000-hectare lot at New Clark City be good or not? What about the minerals in Zambales and Tarlac? I'm not saying, Atty. Co is completely wrong in her statements. What I'm thinking about is that Atty. Co may have overlooked Vietnam's policy on FDI, instead choosing what . Pax Silica could succeed if we first invite more FDIs to supply and take a different approach.

Learning from Vietnam's mineral diplomacy in developing the Philippines

As said, it's indeed ironic Doan Thanh Nien actually outpaced Kabataan Partylist's thinking. Doan Thanh Nien is the youth wing of the Communist Party of Vietnam. However, Vietnam prefers a practical approach with FDI. The late Nguyen Duy Cong aka Do Muoi, decided to ask LKY on how to attract FDIs. However, Vietnam also practiced strategic usage since FDI is useful, but it can also become exploitative. An FDI is like a tenant and the country is like a commercial lease. A good tenant can make you rich, while a bad tenant can make you poor. 

The Vietnam Briefing article written by  Sudhanshu Singh, offers this alternative that could help make Pax Silica work in favor of the Philippines, or reject Pax Silica if the agreement doesn't want to honor these boundaries:

Rare earths become a strategic priority for Vietnam 

Rare earths are increasingly moving to the forefront of Vietnam’s industrial development strategy as the government seeks to strengthen the country’s position in global high-tech manufacturing and critical mineral supply chains.

Alongside semiconductor materials, battery and energy storage materials, advanced construction materials, and other strategic inputs, rare earths have been identified as a priority area for future industrial development. The government’s focus reflects the growing importance of these materials in sectors such as electronics, clean energy, electric vehicles, and semiconductor manufacturing.

Vietnam is estimated to possess some of the world’s largest rare earth reserves, with deposits concentrated primarily in northern provinces including Lai Chau, Lao Cai, and Yen Bai. Despite this resource advantage, much of the sector remains underdeveloped, with limited refining capacity and relatively low participation in higher-value segments of the global supply chain.

To address this gap, policymakers are increasingly emphasizing deep processing and value-added production rather than the export of raw or minimally processed minerals. The objective is to develop domestic capabilities in refining, processing, and advanced materials manufacturing, while attracting technology-intensive investment and strengthening Vietnam’s role in strategic global supply chains.

In fact, it should be ironic that, according to Vietnam Briefing article also written by Singh, Vietnam has also been focused on semiconductors. Vietnam also has this move that has caused it to defeat the democratic Philippines behind:

Foreign direct investment and key players

Vietnam has attracted significant FDI in its semiconductor ecosystem. Intel’s assembly and test facility in Ho Chi Minh City is one of its largest global operations, while Amkor Technology invested over US$ 1.07 billion in Bac Ninh for a semiconductor packaging facility. Additionally, Foxconn Circuit Precision is developing a US$ 383.33 million factory, and Dutch semiconductor company BE Semiconductor Industries (BESI) is set to launch a new US$ 4.9 million project in Saigon Hi-Tech Park by early 2025.

In December 2024, Nvidia and the Vietnamese government signed an AI cooperation agreement to establish an AI research and development center and an AI data center. Moreover, Nvidia’s acquisition of VinBrain, a health-tech startup under Vingroup, underscores Vietnam’s growing role in AI-integrated semiconductor applications.

It would be to learn how to strategically invite FDIs and implement them. For one, there may be safer ways for the Philippines to be part of Pax Silica or may not even need to be part of Pax Silica. Both the Philippines and Vietnam are rich in natural resources. Vietnam accepts FDIs while also doing green investment projects. The Vietnam Briefing article written by Arendse Huld writes this:

Investment projects must be verified as falling within this list to access preferential tax policies and state support for green credit and green bonds.

Establishing a standardized framework for the green taxonomy is crucial, as investment projects deemed “green” become eligible for specific incentives in Vietnam, including lower corporate income tax (CIT), import tax exemptions, and VAT benefits. Without a robust system to determine which projects qualify as “green,” there is a risk of greenwashing and misallocation of financing to projects that are not environmentally friendly.

Furthermore, the Decision provides financial institutions with a clear framework to verify the eligibility of investment projects for green bonds and other green financing products. Credit institutions and branches of foreign banks in Vietnam are encouraged to apply the Decision’s provisions to identify and grant green credit to investment projects on the green classification list, in line with their internal policies.

The Decision took effect on August 22, 2025.

Instead of hating Vietnam (and yes, the Philippines will never get richer by blaming its richer Asian neighbors), why not see why Doi Moi triumphed over the Filipino First Policy instead?