PH needs an interconnected ecosystem strategy to attract global investment

CEBU CITY— The Philippines needs to stop looking at development in isolation and instead focus on building interconnected ecosystems strategy to attract global investment amid the continuing tensions in the Middle East.

“The evolving global economic landscape creates periods of disruption in the global trade and investment flows, and this uncertainty often force investors to seek new markets, new supply chains, and safer long-term bases for expansion, and is also creating new opportunities for Southeast Asia — particularly for the Philippines,” Jay Yuvallos, East Asia Business Council (EABC)-2026 chair said, in a side interview with Manila Standard.

The conflict changes the flow of capital and investments. Investors are now looking into other markets, and the Philippines has always been one of them. While economic powerhouses such as China, Japan, and South Korea continue to dominate East Asia, Yuvallos noted that international investors are increasingly turning their attention toward Southeast Asia.

Countries like Singapore and Vietnam have emerged as strong investment magnets in recent years, but he believes the Philippines remains an “undervalued” market with significant upside potential.

“The Philippines has always been undervalued, there are many opportunities here, pockets of opportunities, and if invested properly, the upside is very high,” he added.

Yuvallos said that the Philippines’ strengths go beyond population size and geography, he pointed to infrastructure, logistics, manufacturing, tourism, education, and technology as sectors that could benefit from shifting global capital. 

Interconnected ecosystem in place in Cebu

Infrastructure, technology, talent development, education pipelines, logistics, these constitute an ecosystem that work closely together and Cebu is an example of how ecosystem thinking can transform regional economies.

Metro Cebu already possesses many of the foundations needed for growth: export manufacturing, tourism, education hubs, and strategic port access. What is needed now is identifying the gaps and investing around them, he said.

According to Yuvallos, there is a strong potential for manufacturing in northern Cebu and for shipbuilding industries in Western Cebu.   Companies such as Mitsumi have already established a manufacturing presence in Danao City while Cebu’s maritime heritage gives it a natural advantage for shipbuilding and marine-related industries.

“Cebu could become a shipbuilding capital of Asia and to achieve this will require government support in technical education, engineering training, supply chain development, and infrastructure connectivity.  We need welders, technical expertise, engineering, ship design. Government and the private sector must support the ecosystem so it matures,” Yuvallos said.

He also highlighted southern Cebu’s potential for tourism, retirement living, and residential developments anchored on heritage and natural attractions.  Rather than treating industries separately, he believes the province should connect them into one integrated economic network — linking logistics hubs, ports, manufacturing centers, tourism zones, and industrial corridor.

“When you connect manufacturing, logistics, tourism, and infrastructure together, the ecosystems become stronger,” he explained.

EABC’s vision for PH

Part of EABC’s vision includes building infrastructure that directly supports industry growth, noting the importance of international ports, transport corridors, and road networks that can reduce logistics costs and attract foreign manufacturers.

Yuvallos said that investors from countries such as Japan are constantly evaluating efficiency, transport costs, and supply chain reliability before entering new markets.  The government must allow and build infrastructure that supports the ecosystem, making the Philippines more attractive for investment.

The EABC Chair also urged policymakers and business leaders to think more creatively and competitively, especially as neighboring countries aggressively position themselves for global manufacturing and supply chain expansions.

Thailand offers a useful model through its layered manufacturing ecosystem, where major global brands are supported by direct suppliers and small and medium enterprises integrated into the supply chain, he said.

The Middle East crisis is ultimately reshaping the global investment map. The question for the Philippines is whether it can move fast enough to capture the opportunities emerging from those changes.

“We have to think beyond the traditional way, we cannot just compare ourselves to others. We have to think creatively, build ecosystems, and position the Philippines as a serious investment destination,” Yuvallos concluded. (Photos: Google Images)