Finance chief counters ‘fake news’ on Pax Silica

MANILA, Philippines — Finance Secretary Frederick Go pushed back against “fake news” surrounding the Philippines’ planned participation in the Pax Silica initiative, citing the “once-in-a-lifetime” opportunity to establish a high-tech manufacturing hub and participate in the global artificial intelligence (AI) boom.

“If we can build that industrial estate to service the tech and AI industry, for me it’s generational. It’s something the future generations can boast that, (for example), their phone is made in the Philippines,” Go told Inquirer editors and reporters in a roundtable discussion on Friday.

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“There’s nothing now we can actually say is made in the Philippines. It’s a once-in-a-lifetime opportunity where we can actually participate in a future technology, a future trend,” he added.

London-based research firm Capital Economics said the Philippines risks falling behind the AI race because it is neither benefiting significantly from the AI boom nor is it well positioned to capture the productivity gains.

The Philippines joined the US-led Pax Silica coalition in April, with the government earmarking a 1,619-hectare site in New Clark City for the development of a high-tech innovation hub. The project is expected to cover critical minerals, semiconductors, AI and advanced manufacturing, potentially strengthening the Philippines’ role in global technology supply chains.

‘Fake news’

The initiative, however, has drawn scrutiny over its potential impact on farmers and indigenous Aeta communities, as well as environmental concerns over its potentially large water and energy requirements.

For Go, however, these concerns are based on what he described as “fake news.”

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“There’s not a single Aeta in the property. There’s not a single farmer in the 1,600-hectare area. There was no discussion of building a data center in Pax Silica,” he said.

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Go’s remarks contrast with concerns raised by advocacy, indigenous and farmer groups, with an online petition opposing the project garnering more than half a million signatures already.

Inquirer earlier reported that Petronila Capiz-Muñoz, an Aeta community member, appealed for the protection of their ancestral domain, while Tarlac farmer Miriam Ventura said around 500 families in Barangay Sta. Lucia could be affected by the project.

Data centers

The Bases Conversion and Development Authority (BCDA), which is leading the initiative, has acknowledged that some farmers occupy portions of the site earmarked for the high-tech hub, although it has said they will not be displaced in the near term.

Regarding data centers, the BCDA has said there would be no hyperscale facilities in the area for now, citing New Clark City’s existing power infrastructure, which cannot support the requirements of such facilities.

Conditions, caveats

This differs from the Department of Information and Communications Technology’s statement that the site could eventually support up to 400 megawatts of data center capacity.

Go did not rule out the possibility of data centers being built in the area in the future, but said businesses putting them up have to be “self-sufficient.”

“[They] have to put up [their] own power source, [their] own water source. That’s a simple workaround for that,” he said.

Senate President Sherwin Gatchalian, meanwhile, backed the Pax Silica initiative but warned against its environmental and displacement risks.

“Personally, I support Pax Silica, but I also have many conditions and caveats,” he said on Friday. “I see this as a once in a lifetime opportunity for our country … At a time when our economy is growing very slowly, having investors come into our country is a big thing for our long-term growth.”

Gatchalian made the statement during a hearing of the Senate committee on environment and natural resources and climate change, where concerns about the initiative were discussed.

But he said the project must comply with national and local laws, address water and electricity issues, and protect farmers and indigenous peoples from displacement.

He also called for technology transfer, saying the Philippines should gain knowledge and capabilities from the investment rather than simply host the industry.

“The industry cannot simply come in and leave without us learning anything from it,” he said. —WITH A REPORT FROM ISABELLE PECHAY