appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Sam Beltran

The Philippines has a rare opening to turn its geography, skilled workers and deepening ties with Japan into a stronger maritime industrial base, but analysts say Manila’s push to make shipbuilding a strategic industry will be judged by whether fresh investment can produce lasting capacity.
President Ferdinand Marcos Jnr gave that drive a concrete boost on June 3 when he ordered the addition of 64 hectares (158 acres) to the West Cebu Industrial Park (WCIP), one of the country’s key shipbuilding and heavy-industry hubs.
The proclamation expanded the special economic zone in Balamban, on Cebu’s western coast, to more than 600 hectares. This was Marcos’ third expansion of the industrial estate; a separate order last year covered seven parcels of land in the same municipality.
The expansion came shortly after Marcos’ state visit to Japan, where he met officials from Tsuneishi Group Corporation, a Japanese conglomerate with interests in shipbuilding, shipping, energy and other related industries.
Their discussions focused on Tsuneishi’s ongoing and planned investments in shipbuilding expansion, green maritime technologies and advanced maritime manufacturing in the Philippines.
Those plans include expanding Tsuneishi’s shipyard facilities at the WCIP and continuing the development of environmentally friendly next-generation vessels.

The WCIP, also known as West Cebu Estate, was established in 1992 and hosts 11 companies, from medium to heavy industries, that enjoy government tax incentives.
The ecozone is operated by Cebu Industrial Park Developers, a joint venture between the Aboitiz Group and Tsuneishi.
“The additional 64 hectares will be dedicated to supporting the continued growth of the shipbuilding industry within West Cebu Estate, further strengthening the estate’s integrated maritime and industrial ecosystem,” Aboitiz said in a statement.
The group said the industrial estate employed more than 14,000 skilled Filipino workers in its medium- and heavy-industry operations.
Chester Cabalza, founder and president of the International Development and Security Cooperation think tank in Manila, said the hub’s “long-awaited” expansion was positioned to cement the country as one of the top five global shipbuilding powerhouses, double its workforce and help prevent the loss of skilled workers to migration.
“By expanding the capacity of the heavy industries in the country’s shipbuilding capital, it expands the manufacturing and services sectors,” Cabalza said, adding that its focus on green technologies could develop Cebu into a “self-sustaining economic engine”.
Mark Manantan, a research fellow at La Trobe University’s Centre for Global Security, hailed the Marcos administration’s efforts to deepen cooperation with strategic partners like Japan and South Korea.
“Having such an anchor can guarantee institutional continuity, political momentum and cross-sectoral collaborations from government, industry and even academic research institutions within and beyond the Philippines,” Manantan said.
While defence and security “get the spotlight” from strengthening the shipbuilding industry, Manantan said the larger benefits included developing the Philippines’ maritime industry to tackle issues “concerning the blue economy, marine and biodiversity, counterterrorism, piracy and, increasingly, humanitarian and disaster response”.
In November, Danish Ambassador to the Philippines Franz-Michael Skjold Mellbin said Manila had the potential to generate 100,000 skilled jobs in its shipbuilding industry, with Danish investors keen to invest, local news outlet BusinessWorld reported.
The Philippines could serve as an alternative to China as a shipbuilder due to its skilled workforce and geographical location, Mellbin added.

For Manantan, however, it is “counterproductive” to frame the country’s shipbuilding industry as competing with China because the Philippines cannot compete in terms of scale and capital.
“Broadening the agenda beyond great-power competition to one that serves the Philippines’ national interest will bear more positive outcomes for its economic development and technological advancements,” Manantan said.
“With the rise of AI, the outgrowth from the shipbuilding industry can be enormous, including the development of unmanned autonomous vehicles operating above and below the waters.”
Japan and other players
Analysts say the hub’s expansion also highlights Japan’s role as a key player in the growth of the Philippines’ shipbuilding and maritime industry.
Manantan said bilateral ties had entered “a new Golden Era 2.0”, with Marcos’ recent state visit highlighting the countries’ enduring partnership due to shared geopolitical and economic concerns.
He also viewed it as an opportunity for the Philippines to capitalise on connections to other US allies and partners, including South Korea and Australia, to develop its strategic industry agenda.
Cabalza said elevating ties to a comprehensive strategic partnership showed high trust in maritime security and defence cooperation, which translated into commercial and maritime expansion in the Philippines.
Analysts said shoring up the shipbuilding industry could also help strengthen the Philippines’ self-reliant defence posture, though structural barriers would need to be overcome.
“Building ships domestically protects military procurement from geopolitical supply disruptions. Because of this, localised shipyards build defence assets tailored exactly to unique domestic archipelagic needs,” Cabalza said.
“High skills and natural geography are present, but the Philippines has to overcome severe structural bottlenecks. Manila must legislate the Shipbuilding and Ship Repair Development Act aimed at fast-tracking land leases and offer liberal financial lending to domestic builders. Aligning commercial yard output with the revitalised Self-Reliant Defence Posture Act guarantees a domestic customer base among local hulls.”

Manantan said the hub presented a window of opportunity for the Philippines.
“It protects the country’s territorial integrity and sovereignty against coercive actions, while also maximising its unique position as an integral player among US allies and partners to acquire cutting-edge capabilities and technology know-how to create its own defence industries,” he said.
However, he cautioned that Manila needed to address issues such as outdated infrastructure and limited supply chains.
“The country must also balance its export-oriented approach to foreign-owned yards to more domestically focused maintenance, repair and servicing facilities, while ultimately developing its own ships down the line,” he said.
Marcos’ administration also faces another challenge: ensuring the hub comes to fruition before the 2028 presidential election.
“What happens in 2028 is, of course, a determining factor in terms of continuity. And this is not unique to this particular administration alone,” Manantan said, adding that previous governments had made policy U-turns.
“So I think how much of these strategic partnerships really eventuate or come to life really depends on how much the Marcos administration is really going to lead a whole-of-government, a whole-of-political and whole-of-society approach, because this is really a once-in-a-lifetime opportunity that the Philippines cannot squander, given the current interest of many partners investing in the country.”


China trusted more than US, EU on AI regulation in Pew survey of middle-income countries

Taipei donates coastguard vessel to Manila as South China Sea tensions mount

Teodoro for president? Philippine defence chief draws 2028 election buzz after China clash

South Korean drug lord’s plan to use drone to escape Philippine prison foiled by test flight

The Philippines

Will Marcos’ shipbuilding push deliver lasting capacity for Philippines?

The West Cebu Industrial Park in Balamban town, Cebu, the Philippines. Photo: Handout

Philippine President Ferdinand Marcos Jnr and Japanese Prime Minister Sanae Takaichi shake hands before a summit meeting in Tokyo, Japan, on May 28. Photo: EPA

West Cebu Industrial Park is one of the Philippines’ key shipbuilding and heavy-industry hubs. Photo: Handout

A truck arrives at a container terminal in Navotas, Metro Manila. Shoring up the shipbuilding industry could also help strengthen the Philippines’ self-reliant defence posture, analysts say. Photo: Reuters

How Philippines and Japan future-proofed ties amid China tensions, US wavering

Philippine President Ferdinand Marcos Jnr meets Japanese Prime Minister Sanae Takaichi (right) at the Akasaka Palace state guest house in Tokyo on Thursday. Photo: EPA

Empress Masako (second right) greets Philippine first lady Liza Araneta Marcos at the Imperial Palace in Tokyo on Tuesday. Photo: AP

A Philippine Navy helicopter prepares to land on a Japanese destroyer during a joint maritime exercise held off the coast of the Philippines’ main island of Luzon last year. Photo: Kyodo

Why the Philippines wants Japan’s old Type 88 missiles

Japanese soldiers stand beside a Type 88 surface-to-ship missile system in Paoay, Ilocos Norte, the Philippines, on May 6. Photo: AFP

American and Filipino soldiers take part in a counter-landing live‑fire drill during Balikatan 2026 in Palawan province, the Philippines, last month. Photo: Reuters

A Type 88 surface-to-ship missile in flight after being launched as part this year’s Balikatan exercise on May 6. Photo: AFP

Officers watch as a Tarlac-class landing ship of the Philippine Navy docks in Surabaya, Indonesia, in 2017. Analysts say the Philippines lacks sufficient surface ships. Photo: AFP

Philippines shifts defence strategy with Japan, eyes wider security focus

Philippine troops take part in counter-landing live‑fire exercises during the Balikatan joint military exercises at Long Point Beach in  Palawan, the Philippines, on April 27. Photo: Reuters

Japanese Defence Minister Shinjiro Koizumi (centre) greets troopers beside his Philippine counterpart Gilberto Teodoro Jnr during the Balikatan drills in Paoay on Wednesday. Photo: Philippine Department of National Defence via AP

A Japan Ground Self-Defence Force Type 88 surface-to-ship missile launcher fires during the Balikatan joint military exercises in Paoay, the Philippines, on Wednesday. Photo: Reuters

A Japan Maritime Self-Defence Force surveillance plane flies over the disputed Diaoyu Islands, called the Senkaku Islands in Japan, in the East China Sea, Photo: Kyodo News via AP

Japan offers Indonesia and the Philippines lethal muscle to counter China

Japan’s Defence Minister Shinjiro Koizumi and his Indonesian counterpart Sjafrie Sjamsoeddin inspect an honour guard before their meeting in Jakarta on Monday. Photo: EPA

Japan’s Defence Minister Shinjiro Koizumi (right) and his Indonesian counterpart Sjafrie Sjamsoeddin inspect an honour guard before their meeting in Jakarta on Monday. Photo: EPA

Indonesian Defence Minister Sjafrie Sjamsoeddin (second from right) greets Japan’s Shinjiro Koizumi (right) upon his arrival in Jakarta on Monday. Photo: EPA

A Japanese Mogami-class frigate seen in an undated handout photo released by the Australian military. Photo: Australian Defence Force/AFP

A Soryu-class diesel-electric submarine is seen in an undated handout photo released by Japan’s military. Photo: Japan Maritime Self-Defence Force/Reuters

This Week in Asia

Politics

News

Asia

Southeast Asia

The expansion of the West Cebu Industrial Park aims to strengthen the Philippines’ defence and economy, and cement dominance in shipbuilding


The expansion of the West Cebu Industrial Park aims to strengthen the Philippines’ defence and economy, and cement dominance in shipbuilding.


Will Marcos’ shipbuilding push deliver lasting capacity for Philippines?

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The expansion of the West Cebu Industrial Park aims to strengthen the Philippines’ defence and economy, and cement dominance in shipbuilding

The expansion of the West Cebu Industrial Park aims to strengthen the Philippines’ defence and economy, and cement dominance in shipbuilding