PBBM revives the PH shipbuilding industry to reclaim its spot among the world’s great shipbuilding nations. He led the inauguration of the HD Hyundai Shipyard in Subic, Zambales, on September 2, 2025 | Photo by PCO
There is absolutely no doubt that the Philippines is facing significant challenges today, especially with the massive endemic corruption involving flood control projects that are now being investigated. It came about following President Marcos’ revelation that 15 contractors have cornered an estimated P100 billion out of the P545 billion allocated for government-funded flood control projects from 2022 to 2025 – prompting strong condemnation from Filipinos and Catholic Church leaders who described it as “a moral abomination that strikes at the heart of our people’s dignity.”
Big business groups also expressed their “outrage, disgust and disappointment” as well as their concern that the guilty ones among members of Congress, the Department of Public Works and Highways, and local government leaders could “continue their merry way of robbing the people and filling their pockets” – saying that justice can only be achieved by “punishing the corrupt.”
The flood control scandal put a spotlight on the systemic corruption in government, revealing patterns of fixed bidding, license selling, or renting with established contractors renting out construction licenses to smaller and less qualified companies; collusion among DPWH engineers, government officials, and unscrupulous contractors for overpriced but substandard or nonexistent projects; budget insertions and kickbacks from politicians and lawmakers.
DPWH Secretary Vince Dizon now faces the gargantuan task of “cleaning up the house.” Many fully approve of his initial steps, such as ordering DPWH officials from top to bottom to submit courtesy resignations, suspending bidding for locally funded projects, permanently blocklisting contractors implicated in ghost projects, and filing administrative cases against employees involved in ghost projects.
Finance Secretary Ralph Recto said the economy lost as much as P118.5 billion from 2023 to 2025 due to substandard and ghost projects. The economy could have expanded by as much as six percent if all that money had been “better spent,” he said, lamenting the loss of around 95,000 to 266,000 potential jobs annually.
The administration has taken significant steps to address these challenges, such as the creation of an independent body (with broad powers like the authority to issue subpoenas) to investigate anomalies; lifestyle checks on government officials; overhaul of the DPWH by Secretary Dizon; license revocation of contractors whose projects have been flagged for irregularities and the launching of a website where people can report corruption.
However, life must go on – we need to continue focusing on our economic diplomacy, pushing our economic agenda abroad by pursuing partnerships with other countries to boost trade and attract more foreign investment, benefiting our economy and the people.
While the primary objective of the President’s trip to New York is to attend the UN General Assembly and strengthen our bid for a non-permanent seat on the UN Security Council for 2027-2028 (which is key to our advocacy for peaceful resolutions to territorial claims), the President is scheduled to meet with top business executives who indicated interest in expanding or investing in the Philippines.
“However, life must go on – we need to continue focusing on our economic diplomacy, pushing our economic agenda abroad by pursuing partnerships with other countries to boost trade and attract more foreign investment, benefiting our economy and the people.”
As emphasized by US State Department principal deputy assistant secretary for East Asian and Pacific Affairs Jonathan Fritz, who was in Manila to discuss economic ties, the United States will continue to provide financial aid to the Philippines despite the realignment of official foreign assistance by President Trump.
The Philippines was, in fact, the first country to receive a funding pledge following the Trump administration’s review of foreign assistance programs, with Secretary of State Marco Rubio announcing at least $60 million in new assistance last July, with $15 million allocated for private sector development in the Luzon Economic Corridor (LEC).
Last June, the Department of Transportation and the US Trade and Development Agency signed a technical assistance grant to conduct pre-feasibility studies for the flagship Subic-Clark-Manila-Batangas Railway Project along the Luzon Economic Corridor.
Subic is essential to the LEC initiative because it serves as a critical trade and industrial hub, connecting major economic centers across Luzon. The strategic seaport serves as a vital gateway for cargo, while the special economic zone attracts many foreign investors.
Last Tuesday, President Marcos led the steel-cutting ceremony for HD Hyundai Heavy Industries, a major tenant of Agila Subic, a portfolio company of the US-based investment firm Cerberus Capital Management.
The Agila Subic facility used to be run by Hanjin Heavy Industries, which ceased operations in 2019 due to bankruptcy. In 2022, Cerberus acquired the previously distressed facility and then entered into a multi-year agreement with Agila Subic and HD Hyundai in 2024, under which HD Hyundai would lease a portion of the facility – signaling a historic milestone in the country’s efforts to revitalize primary maritime manufacturing operations in the Philippines.
In his remarks, the President expressed confidence that Hyundai’s presence would help revive shipbuilding in the country and “strengthen industries, promote livelihood and build a better, stronger future for the Philippines.”
Three years after acquisition, Agila Subic has transformed the 310-hectare shipyard into a multi-use facility positioned as a regional leader in shipbuilding logistics and storage services, with major tenants that include the Philippine Navy, leading fiber optic cables manufacturer SubCom, and V2X, an NYSE-listed logistics company.
Agila Subic’s revitalization of the facility has driven substantial economic benefits, with total investments expected to reach $1 billion. The local economy is also experiencing a boost, as seen in new restaurants, shops, and small businesses. Leading the transformation is a mainly Filipino team headed by general manager Mark Millan, a native of Zambales and former Philippine Navy officer who said they are committed to making the facility economically viable, with world-class locators creating thousands of jobs in Subic Bay and nearby communities – contributing to the country’s economic growth.
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