The continuing tensions in the Middle East may be disrupting global trade and investment flows, but for East Asia Business Council 2026 Chair Jay Yuvallos, the uncertainty is also creating new opportunities for Southeast Asia — particularly for the Philippines.
Speaking about the evolving global economic landscape, Yuvallos said periods of disruption often force investors to seek new markets, new supply chains, and safer long-term bases 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 economic powerhouses such as China, Japan, and South Korea continue to dominate East Asia, Yuvallos noted that international investors are increasingly turning their attention toward Southeast Asia.
Countries like Singapore and Vietnam have emerged as strong investment magnets in recent years, but he believes the Philippines remains an “undervalued” market with significant upside 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.”
For Yuvallos, the country’s strengths go beyond population size and geography. He pointed to infrastructure, logistics, manufacturing, tourism, education, and technology as sectors that could benefit from shifting global capital.
The challenge, he said, is to stop looking at development in isolation and instead focus on building interconnected “ecosystems.”
“I always emphasize ecosystem, ecosystem, ecosystem,” Yuvallos said. “Infrastructure, technology, talent development, education pipelines, logistics — these must work together.”
He cited Cebu as an example of how ecosystem thinking can transform regional economies. According to Yuvallos, Metro Cebu already possesses many of the foundations needed for growth: export manufacturing, tourism, education hubs, and strategic port access. What is needed now is identifying the gaps and investing around them.
He sees strong potential for manufacturing in northern Cebu and for shipbuilding industries in Western Cebu. Companies such as Mitsumi have already established a manufacturing presence in Danao City while Cebu’s maritime heritage gives it a natural advantage for shipbuilding and marine-related industries.
“Cebu could become a shipbuilding capital of Asia,” he said.
But achieving this, he stressed, will require government support in technical education, engineering training, supply chain development, and infrastructure connectivity.
“We need welders, technical expertise, engineering, ship design,” he said. “Government and the private sector must support the ecosystem so it matures.”
Yuvallos also highlighted southern Cebu’s potential for tourism, retirement living, and residential developments anchored on heritage and natural attractions.
Rather than treating industries separately, he believes the province should connect them into one integrated economic network — linking logistics hubs, ports, manufacturing centers, tourism zones, and industrial corridors.
“When you connect manufacturing, logistics, tourism, and infrastructure together, the ecosystems become stronger,” he explained.
Part of this vision includes building infrastructure that directly supports industry growth. Yuvallos pointed to the importance of international ports, transport corridors, and road networks that can reduce logistics costs and attract foreign manufacturers.
He noted that investors from countries such as Japan are constantly evaluating efficiency, transport costs, and supply chain reliability before entering new markets.
“The government must allow and build infrastructure that supports the ecosystem,” he said. “It makes the Philippines more attractive for investment.”
Yuvallos also urged policymakers and business leaders to think more creatively and competitively, especially as neighboring countries aggressively position themselves for global manufacturing and supply chain expansion.
Thailand, he said, offers a useful model through its layered manufacturing ecosystem, where major global brands are supported by direct suppliers and small and medium enterprises integrated into the supply chain.
“That is how you build value chains,” he explained. “You think of the supply chain, infrastructure, technology transfer, and talent pipelines.”
For Yuvallos, the Middle East crisis is ultimately reshaping the global investment map. The question for the Philippines is whether it can move fast enough to capture the opportunities emerging from those changes.
“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.”