The continuity the Luzon Economic Corridor demands

This week, the Philippines, along with Japan and the United States, co-hosted the 2026 Luzon Economic Corridor (LEC) Investment Forum. Hundreds of international investors, industry leaders, and senior government officials got together during the two-day event.

From the original tripartite agreement, the multinational coalition of investors in the LEC has now expanded to 13, with the European Union and Spain now joining Australia, Canada, France, Italy, Denmark, Korea, Sweden, and the United Kingdom lending their support to the three original countries.

The LEC links specific economic hubs on the biggest island in the archipelago. From Subic to Clark to Manila to Batangas, the corridor traverses the region of the country that contributes greatest to the national economy. This is the core strength of the initiative, combining the investment-driven areas of Luzon that have distinct but complementary strengths: Central Luzon that has a maritime and industrial gateway in Subic and a center of aviation and industrialization in Clark. Metro Manila is the country’s commercial and financial center, and the Southern Luzon is also the major manufacturing and energy trade hub.

One million jobs for Filipinos are expected to be created along the corridor, largely by building major infrastructure, upgrading logistics and attracting high-tech manufacturing investments across the four geographical areas. The goal is to turn the corridor into a platform for long-term, foreign direct investment, particularly in advanced manufacturing, logistics, semiconductors, clean energy, and other high-value industries.

Already, there are several large-scale projects in the pipeline, such as the reopening of the Subic Airport, the planned expansion of the Clark International Airport and a possible cargo railway from Subic to Clark that will hopefully later on connect to Metro Manila and to Southern Luzon. These will not only connect the region but will naturally create direct jobs in construction, engineering and transport.

Meanwhile, plans to upgrade the country’s energy grids and digital connectivity are also underway.

But for the LEC to truly materialize and achieve the gains we have envisioned, there remain certain challenges to be overcome. Specifically, infrastructure must keep pace with the investments it seeks to attract. A primary concern are bottlenecks in connecting Subic, Clark, Manila, and Batangas.

One example is the issue of right-of-way acquisition. Last year, President Marcos already signed the Accelerated and Reformed Right of Way (ARROW) Act precisely to expedite and ensure fairness in state acquisition of land for infrastructure projects; it must be implemented effectively to hurdle what is the biggest bottleneck of the country’s infrastructure projects. I am hopeful with the strong interest in the Luzon Economic Corridor Right of Way issues in the North South Commuter Railway will progress faster.  

Other laws are geared toward creating a favorable legislative and economic framework to ensure the stability of the LEC.

The CREATE MORE Act, for instance, offers up to 40 years of fiscal and non-fiscal incentives for strategic investments in priority sectors. The Investors’ Lease Act allows qualified foreign investors to lease private land for up to 99 years, providing greater certainty for long-term investments.

From experience we know that it is one thing to enact good laws and quite another to ensure their consistent implementation so that they achieve the aims toward which they were proposed in the first place.

Beyond implementation is institutionalization.

We want investors to know – and be assured – that their projects would survive political transitions no matter who gets to enjoy political power. Election year 2028 is fast approaching and the leading candidate is a valid concern. Executive Order No. 18 and its Green Lane mechanism provide a good model for streamlining and accelerating strategic investments. This EO might be suddenly overturned. The government should build on this by making the Green Lane mechanism a law, ensuring that it will not be easily changed or discontinued with every change in administration. If we want investors to make commitments that span decades, we must give them policy certainty that extends beyond the term of any one president.

The promise and potential of the LEC are undeniable. It also makes perfect sense, given the innate strengths of the Philippines: its young and dynamic population, its rich natural resources, and its strategic location at the heart of the Indo-Pacific region. The growing interest of more and more countries is also a reflection of how the world is recognizing the Philippines as a reliable partner and attractive destination for long-term investments.

This early, however, we must change the way we look at and regard the LEC. It is not merely a collection of infrastructure projects. It is instead best viewed as an investment magnet that taps our domestic market, major trade routes, young workforce and strong economic relationships. It is an initiative that, if managed well, will propel the Philippine’s stature in the global economic stage while also having considerable impact on the lives of ordinary Filipinos.

With the LEC now just in its initial stages, this is a good time to lay down how its success will be measured. Is it the aggregate amount of investment commitments we generate? The number of countries who will ultimately join the coalition? Is it the high praises that we expect to get from investors, saying how much the business environment in the Philippines has improved and how they feel secure about their capital?

It could be these things, but ultimately the success of the LEC should be measured by the opportunities it creates for Filipinos. Attracting more investments and building better infrastructure should translate into more and better jobs that develop skills, raise productivity, and give Filipinos access to higher-value careers. Better jobs today will help build a more talented and competitive Filipino workforce for the next generation, creating a cycle where talent attracts more investment and investment creates even better opportunities.

Let us not make the LEC a simple campaign touting the Philippines as the next hot investment destination. It must instead be seen for what it could be: a lasting engine of sustainable economic growth that translates into a better life for Filipinos.

The operative words are “lasting” and “sustainable.” These will be made possible only if we institutionalize the policies and mechanisms that enable these investments. Administrations have fixed terms. The economic life of a nation does not.

Beyond the arduous task of attracting investments, we must provide long-term certainty that investors will ultimately find the same conditions and commitments they originally signed up for.

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Rupert Paul Manhit is the COO and managing director of think tank Stratbase Group. He is the executive director of Philippine Trade Foundation (Phils Inc.)