Philippines attracts $600 million in new foreign investment as Lufthansa Technik Philippines and FedEx Corp. open separate facilities on a former U.S. air base. The move signals Manila’s push to diversify its aviation infrastructure and draw global logistics players for long-term growth and regional connectivity in 2025.

Manila’s strategy follows a 2023 policy shift that relaxed foreign ownership limits in aviation and logistics. By leasing the former U.S. air base, the government offers tax incentives and streamlined permits, aiming to position the Philippines as a Southeast Asian hub for aircraft maintenance and freight forwarding.

Investors eye the deal for its potential to spur ancillary services, from spare‑parts suppliers to training academies. Analysts predict the new facilities could generate up to $1.2 billion in annual revenue for the local economy, boosting employment and strengthening supply chains.

Next steps include finalizing land‑use agreements and securing financing from regional banks. Stakeholders will monitor regulatory approvals, as any delay could push the project’s launch beyond 2026, affecting projected returns and the Philippines’ competitive edge in the region for global logistics operators and investors who seek efficient routes through Southeast Asia.