The ongoing tensions in the Middle East are reshaping global trade and investment flows, but East Asia Business Council 2026 Chair Jay Yuvallos said the disruptions could open new opportunities for Southeast Asia, including the Philippines, if the country strengthens its long-term economic positioning.
Yuvallos said periods of uncertainty often push investors to diversify markets and reconfigure supply chains, making emerging economies more attractive for expansion.
“If there is disruption, there is also opportunity,” Yuvallos said.
“The conflict changes the flow of capital and investments. Investors are now looking into other markets, and the Philippines has always been one of them.”
While major Asian economies such as China, Japan, and South Korea continue to lead regional investment activity, he noted that Southeast Asia is gaining stronger attention, with countries like Singapore and Vietnam already establishing themselves as key investment hubs.
However, he said the Philippines remains an “undervalued” market despite its long-term growth potential.
“The Philippines has always been undervalued,” he said.
“There are many opportunities here, pockets of opportunities, and if invested in properly, the upside is very high.”
Yuvallos said the country’s competitiveness is not limited to population size or location, but spans multiple sectors including infrastructure, logistics, manufacturing, tourism, education, and technology.
He stressed the need for a shift in development thinking toward building interconnected “ecosystems” rather than isolated projects.
“I always emphasize ecosystem, ecosystem, ecosystem,” he said, citing the need to integrate infrastructure, technology, talent development, education pipelines, and logistics.
He pointed to Cebu as an example of a province with strong foundational industries, including export manufacturing, tourism, education hubs, and port access, but said gaps must still be addressed to maximize growth.
Yuvallos said northern Cebu has potential for manufacturing expansion, while western Cebu could develop stronger shipbuilding industries, citing existing firms such as Mitsumi in Danao City and the province’s maritime tradition.
“Cebu could become a shipbuilding capital of Asia,” he said.
He added that achieving this would require stronger government support in technical education, engineering training, supply chain development, and infrastructure connectivity.
“We need welders, technical expertise, engineering, ship design,” he said, emphasizing the need for coordinated public and private sector efforts.
Yuvallos also identified southern Cebu as a potential hub for tourism, retirement living, and residential development anchored on natural and heritage assets.
He said industries should not be developed in isolation but linked into an integrated system connecting logistics, manufacturing, tourism, and infrastructure corridors.
“When you connect manufacturing, logistics, tourism, and infrastructure together, the ecosystems become stronger,” he said.
He also underscored the importance of infrastructure such as ports, road networks, and transport corridors in lowering logistics costs and attracting foreign investors.
Yuvallos noted that international investors, particularly from Japan, closely evaluate efficiency and supply chain reliability before entering new markets.
“The government must allow and build infrastructure that supports the ecosystem,” he said, adding that this would enhance the country’s investment appeal.
He urged policymakers and industry leaders to adopt more competitive and innovative approaches as neighboring countries continue to aggressively position themselves in global supply chains.
He cited Thailand as an example of a strong manufacturing ecosystem where global firms are supported by integrated supplier networks and small and medium enterprises.
“That is how you build value chains,” he said.
Yuvallos said the shifting global landscape driven by geopolitical tensions presents both risks and opportunities, depending on how quickly countries adapt.
“We have to think beyond the traditional way,” he said. “We cannot just compare ourselves to others. We have to think creatively, build ecosystems, and position the Philippines as a serious investment destination.”
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