‘AI boom opens growth opportunities for Philippines’

June 7, 2026 | 12:00am

MANILA, Philippines — The Philippines should capitalize on the growing artificial intelligence (AI) infrastructure boom to support the country’s economic growth, an official of the World Bank said.

Zafer Mustafaoglu, World Bank division director for the Philippines, Malaysia and Brunei, East Asia and Pacific, said the Philippines could attract more foreign investments, create more businesses and play a larger role in the AI value chain.

“The country already has a foothold, through semiconductors and intermediate inputs. The Philippines is already connected to the hardware side of AI, but it is not yet capturing the full opportunity,” he said during a BusinessWorld Economic Forum, noting that its regional peers are moving faster in AI related exports.

He said the Philippines must step up and improve its role in the AI value chain amid the slowdown in economic growth and the surge in prices due to the conflict in the Middle East.

“When investment weakens, it means fewer plans, fewer firm upgrades, less logistic improvements, less follow-up digital systems and ultimately fewer better jobs,” the WB official said.

The country’s economic growth slowed to 2.8 percent in the first quarter due to oil supply constraints and a slowdown in infrastructure spending.

Mustafaoglu added the Philippines must move up beyond the manufacturing of semiconductors into the advanced testing and improving engineering and design services.

He noted that the Philippines must also expand into AI-enabled business services, as data services and finance analytics.

The Philippines and the US are seeking to establish a manufacturing hub for the creation of components used for artificial intelligence infrastructure.

The hub is set to be located within New Clark City, Tarlac and is part of the Philippines’ commitment to the Washington-led Pax Silica initiative, which aims to create a global supply chain for AI through the Luzon Economic Corridor.

The World Bank official stressed that the Philippines must also improve its operating environment to enable more companies to investment, foster upgrades and sustain growth.

Mustafaoglu said the Philippines should make it easier for newer companies to enter the marker, make trade faster and more predictable, as well as increase free trade agreements to raise productivity and reach wider buyers.

“It means lower costs, faster decisions, better logistics, stronger worker skills and a clearer path from investment to returns. It’s about making Philippines ASEAN’s next economic engine,” said.