Prominent business group Management Association of the Philippines (MAP) is pushing for the creation of an independent public-private body to monitor the proposed Pax Silica artificial intelligence (AI) industrial hub in New Clark City, as it expressed support for its development only if strong safeguards are in place.

In a statement on Thursday, July 30, MAP said the multi-stakeholder oversight body would be tasked with regularly monitoring the project’s progress against its commitments in terms of investments delivered, jobs created, environmental performance, community impact, and economic value generated.

The oversight body would be composed of representatives from the government, business, academe, labor, civil society, and relevant technical experts.

“Public disclosure of key performance indicators will help build trust, strengthen accountability, and foster informed public dialogue,” MAP said.

The AI industrial hub is part of the Philippines’ commitment under the United States (US)-led Pax Silica partnership, which the country joined in April as its 13th member.

Designated by the US as an economic security zone, the project is designed to attract investments in the global AI supply chain, including the processing of critical minerals, semiconductors, and data centers.

MAP said the AI industrial hub could be “one of the most consequential economic development opportunities presented to the Philippines” in decades.

However, the business group emphasized that it should only be pursued if proper safeguards are in place, anchored on national interest, shared prosperity, sustainability, and accountability.

It noted that concerns about the project’s impact on communities, environmental sustainability, resource utilization, and economic sovereignty must be taken into consideration by the government.

“MAP therefore supports a ‘proceed, but protected’ approach: actively pursue the opportunity, negotiate from a position of national interest, and establish the guardrails necessary to ensure that the benefits are broad-based, sustainable, and unmistakably Filipino,” the business group said.

“The Philippines should neither approach Pax Silica with blind optimism nor reflexive opposition. The country should approach it as a strategic negotiation,” it added.

MAP said the government should ensure that industrialization and value addition are core objectives of the industrial hub, rather than merely using it as a location for extraction, assembly, or low-value activities.

The business group added that technology transfer and capability building must be prioritized, particularly through initiatives such as partnerships with local universities and support for local research and development (R&D).

In the same vein, MAP stressed that while foreign expertise may be necessary at the outset, the government should have clear localization plans to increase local participation in technical, professional, supervisory, and leadership roles over time.

To promote inclusive growth, it said priority should be given to local hiring, the participation of small and medium enterprises (SMEs), skills development programs, and infrastructure investments in the communities surrounding New Clark City in Tarlac province.

On environmental concerns, the group said greater transparency measures should be implemented to monitor the project’s water use, power demand, emissions, biodiversity, and resource utilization.

MAP likewise said that all activities within the AI industrial hub should “remain fully subject to Philippine laws, regulations, taxation rules, labor standards, environmental requirements, and judicial processes.”

“If structured properly, Pax Silica can become more than a foreign investment project. It can become a platform for national development—one that helps the Philippines move up the value chain, strengthen its economic resilience, and create lasting prosperity for future generations of Filipinos,” MAP said.