MANILA, Philippines — Malacañang has urged groups opposing the proposed Pax Silica initiative to pursue dialogue instead of violence after a protest outside a Taguig hotel turned confrontational while President Ferdinand Marcos Jr. attended a forum focused on investments in the Luzon Economic Corridor.
Palace Press Officer Claire Castro said the Marcos administration recognizes the protesters’ right to express their views but stressed that freedom of expression should not involve actions that could hurt others or trigger violence.
The Palace appeal came after protesters and police clashed outside the Grand Hyatt Manila in Taguig during the Luzon Economic Corridor Investment Forum on Thursday. The demonstration was aimed at raising opposition to Pax Silica, a US-led initiative that the Philippine government says could transform the country into a major hub for advanced manufacturing, semiconductors, artificial intelligence and critical-mineral processing.
Protesters raise concerns over Pax Silica
More than 300 activists reportedly gathered outside the hotel, with some protesters attempting to breach the police security line and enter the venue. Philstar reported that as many as 43 police officers and activists were injured, while five people were arrested during the confrontation.
The protesters have questioned whether the proposed project could expose the country to excessive foreign influence and potentially affect communities, land, natural resources and national interests.
Some groups have also expressed concern about the possible development of energy- and water-intensive technology facilities associated with the broader high-tech ecosystem envisioned under Pax Silica.
Those concerns have gained additional attention because the government has previously discussed the possibility of data centers being established in connection with the initiative. However, Malacañang has clarified that there is currently no formal proposal for an AI data center inside the proposed New Clark City industrial hub.
Palace: Talk to government agencies
Castro said protesters who have questions about Pax Silica should bring their concerns to the government agencies responsible for the project.
The Palace maintains that disagreements over the initiative should be addressed through proper evaluation, consultation and decision-making rather than violent demonstrations.
The administration’s position comes as the government attempts to balance two competing pressures: attracting massive foreign investment while assuring Filipinos that the project will not come at the expense of their rights, communities or the environment.
Why Pax Silica matters to the government
Pax Silica is being positioned as one of the Philippines’ major bets for moving higher up the global technology and manufacturing value chain.
The proposed development in New Clark City, Capas, Tarlac, forms part of the broader Luzon Economic Corridor and is intended to attract companies involved in semiconductors, artificial intelligence, advanced manufacturing, critical minerals and other high-value industries.
Government estimates put the potential investment at between US$40 billion and US$70 billion once the project is fully developed. The project has also been projected to generate more than 130,000 high-quality jobs, with other government estimates putting potential employment as high as 190,000 depending on the eventual scale of development.
The Bases Conversion and Development Authority has described the project as a potential way to create a “brain gain” by giving Filipino engineers, researchers, technology specialists and other highly skilled workers more opportunities to build careers in the Philippines rather than seeking employment abroad.
But the investment pitch comes with major questions
Despite the government’s economic projections, Pax Silica remains controversial.
Among the issues raised are the potential effects on local communities, indigenous peoples, land use, environmental protection, water resources and the country’s ability to ensure that foreign investors operate within Philippine laws.
The National Commission on Indigenous Peoples has already conducted a dialogue with Aeta Indigenous Cultural Communities and Indigenous Peoples in Tarlac after community representatives raised concerns involving livelihoods, possible disruption of homes and an ancestral-domain claim.
The BCDA, for its part, has said the proposed development would be subject to Philippine laws and environmental regulations. It has also said project components would have to secure the necessary Environmental Compliance Certificates before construction and that environmental monitoring would continue during implementation.
BCDA has additionally said that the proposed site is public land already titled to the agency and designated for industrial development.
Government says project is not a mining operation
Another issue surrounding Pax Silica is the role of critical minerals.
BCDA President and CEO Joshua Bingcang has clarified that the proposed project area will not host mining activities. Instead, the initiative is intended to support processing and manufacturing activities that can turn critical minerals into higher-value products used by advanced industries such as semiconductor manufacturing and artificial intelligence.
The agency has also described the proposed development as commercial rather than military or defense-related.
Construction is still years away
Despite the size of the proposed investment, Pax Silica is not yet an operational industrial complex.
The BCDA previously said contract negotiations are expected this year, with planning targeted for 2027 and construction potentially beginning in early 2028.
That timeline means many of the concerns currently being raised are occurring while the government and potential investors are still working through the project’s structure, agreements and implementation details.
The administration has repeatedly said that any eventual agreement must protect Philippine interests.
Marcos earlier described Pax Silica as a “good deal” provided investments deliver mutual benefits, create jobs and contribute to economic growth. Malacañang has likewise said the government will not accept arrangements that disadvantage the Philippines or Filipino citizens.
The bigger battle may be about more than one industrial park
The dispute over Pax Silica is increasingly becoming a debate over what kind of economic future the Philippines wants.
Supporters see the initiative as a chance to attract billions of dollars, strengthen semiconductor and AI capabilities, create high-skilled employment and move the country beyond lower-value manufacturing.
Critics, meanwhile, are demanding stronger guarantees on sovereignty, environmental protection, community rights and the distribution of economic benefits.
Analysts have also argued that the Philippines will need major improvements in fiber networks, data centers, cybersecurity infrastructure, connectivity and other digital infrastructure if it wants to capture the full economic potential of Pax Silica and other technology-intensive investments.
For now, the government is asking opponents to put their concerns on the negotiating table rather than in confrontations on the streets.
But as billions of dollars in potential investment—and thousands of hectares of land—remain at stake, the controversy surrounding Pax Silica is unlikely to disappear anytime soon.
The question now is no longer simply whether Pax Silica will bring investment to the Philippines. It is whether the government can convince the public that the price of that investment will be worth paying.
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