The government expects the addition of seven partner nations to the Luzon Economic Corridor (LEC) to cement the region’s status as a primary investment magnet, a move officials say is vital for insulating the economy against persistent global volatility.

Finance Secretary Frederick Go said the expansion of the partnership to include Australia, Denmark, France, Italy, South Korea, Sweden, and the United Kingdom reflects the strong investment appeal of the LEC.

Launched in 2024, the LEC was originally a trilateral initiative among the Philippines, the United States (US), and Japan, aimed at boosting economic activity in Subic Bay, Clark, Manila, and Batangas through coordinated investments.

These investments are expected to develop projects in transport infrastructure, energy systems, digital connectivity, and advanced manufacturing supply chains.

Go, who also serves as co-chair of the LEC Steering Committee, said the addition of new partners will provide new sources of financing, technical assistance, and private sector investments to turn the LEC into a reality.

Once realized, he said, this will not only transform Luzon into a more prosperous region but, more importantly, create thousands of high-quality jobs.

“If you are talking about the resilience and sustainability of the growth of the economy, there's only one way to do it. And that's to provide jobs for everyone,” he said on the sidelines of a reception celebrating the LEC.

He said generating jobs at a time of ongoing external shocks could help provide much-needed momentum for economic growth.

“That's how you build resilience against external shocks because external shocks today are the norm. They're not extraordinary, they're not special. Shocks will happen and will keep happening,” added Go.

According to the Philippine Statistics Authority, the country’s economic growth slowed to its weakest pace in five years at 2.8 percent, driven by the ongoing oil crisis triggered by the Middle East conflict and the lingering effects of corruption issues from last year.

While the Philippines expects a strong economic lift from the LEC, US Senior Advisor for Economic, Energy, and Business Affairs Ambassador Heather Variava said development partners likewise stand to benefit from its investment appeal.

She said the LEC would be a dynamic economic corridor that would help the US, Japan, and the seven new members strengthen economic ties while fostering shared prosperity.

“The Luzon Economic Corridor represents a gateway to growth, innovation, and partnership that will benefit all of our economies,” said Variava.

The Asian Development Bank (ADB), which is already financing several projects under the LEC, is interested in funding other projects to address transport and logistics bottlenecks within the region.

With areas covered by the LEC accounting for roughly 60 percent of the country’s gross domestic product, ADB Country Director for the Philippines Andrew Jeffries said it is “a very important corridor to keep developing.”