From sea power to industrial power: Shipbuilding can spark a Filipino industrial revolution

From sea power to industrial power: Shipbuilding can spark a Filipino industrial revolution
Ambassador Franz-Michael Mellbin -November 12, 2025 https://www.philstar.com/opinion/2025/11/12/2486508/sea-power-industrial...

New technology has opened a channel for the world’s most trusted maritime nation to redraw the map of global shipbuilding — anchoring jobs, innovation, green growth, and large-scale manufacturing in the Philippines.

The Philippines has long powered the world’s fleets with its people. Now it has the chance to power the global shipbuilding industry itself.

A joint Philippine–Danish initiative is charting that course — positioning the Philippines as a new hub for shipbuilding innovation and industrial growth in Asia. The ambition is bold, but the evidence is on our side.

A recent OECD peer review, backed by a World Bank report, concludes that the Philippines can become globally competitive in shipbuilding, potentially adding over 100,000 skilled jobs and around 4% to GDP. It is a critical vote of confidence — proof that the country has the skills, manpower, and potential to become a major maritime manufacturing power.

This week, that potential will be put to the test. Because the Philippines must work hard to convince private investors and international partners that it is ready to do its part to transform opportunity into results.

Since discussing this potential with President Ferdinand Marcos Jr. earlier this year, I have been working closely with key Philippine government agencies — including the Office of the Presidential Adviser for Investment and Economic Affairs, the Department of Transportation and Maritime Industry Authority (MARINA), and the Anti-Red Tape Authority (ARTA) — to plot the path for action.
A global shipbuilding conference

On 12–13 November 2025, the Philippine government will host the global conference “Revitalizing the Philippine Shipbuilding and Ship Repair Industry”, gathering over 200 international and local participants spanning the entire value chain — from shipyards and shipowners to designers, steel producers, financiers, and logistics providers.

The conference’s aim is simple but ambitious: to bring every link in the supply chain on board.

Private-sector leaders, Philippine government officials, and representatives from like-minded and allied governments will meet to discuss what it will take to turn the Philippines into a true global shipbuilding nation.

The event will cover both civilian and naval/coast guard shipbuilding, reflecting the sector’s full strategic importance. It will also mark the government’s first step in presenting specific proposals to improve the ease of doing business in shipbuilding and repair — from permits and regulation to incentives and industrial zoning.

There is no doubt of the government’s strong commitment to deliver, and the proposal has been met with growing enthusiasm from industry actors. International interest is also accelerating, as China’s near-monopoly in large-scale shipbuilding becomes an increasing concern for global trade and security.

The ambition for the conference is to form an international “coalition of the willing” to partner with the Philippine government and to commission a joint feasibility study that translates conference discussions into a concrete roadmap for national and international investors alike.
Technology as the pivot point

No one can compete with China’s massive shipbuilding capacity on existing terms. To do so would be to fight yesterday’s battle.

The only path forward is through new shipbuilding technology that can redefine how the world builds ships — and this is where the Philippines has a unique, time-sensitive opportunity.

Traditionally, shipyards have produced vessels in small, bespoke series — a strength in flexibility, but a limitation in scale. That model is now changing as shipowners increasingly embrace standardized designs, unlocking the efficiency of mass production.

The future lies in modular, factory-style shipbuilding, already proven at the Osborne Naval Shipyard in Australia, where multiple ships are built simultaneously in standardized segments.

It was precisely such a technological pivot that allowed Airbus to challenge Boeing’s dominance — combining composite materials, modular design, and decentralized production to cut costs, raise quality, and transform aviation itself.

The Philippines, with its skilled workforce and strong maritime culture, can make the same leap — producing ships faster, greener, and at competitive cost, while attracting key maritime partners looking to diversify global production.
A strategic and industrial imperative

This Shipbuilding Initiative is not merely an economic project; it is a strategic realignment among like-minded partners.

China now builds almost 60% of all large ships, leading to an increasingly narrow and risky global supply chain on which the world’s trade depends. The Philippines offers a trusted alternative — a maritime nation at the crossroads of the Indo-Pacific, capable of serving both commercial and defense needs.

The international shipbuilding industry is already looking at the Philippines as a strategic production and repair platform. For allied nations seeking to strengthen maritime resilience and diversify supply chains, a modern Philippine shipbuilding base offers both long-term strategic value and compelling industrial opportunity.
The manufacturing dividend

A thriving shipbuilding sector strengthens an entire industrial ecosystem.

Each new shipyard drives demand for skilled labor, steel, machinery, electronics, design, logistics, and fabrication. If the Philippines can establish a domestic source of high-quality, low-carbon steel, it could supply not only shipyards but also construction, manufacturing, and export industries.

This would reinforce the Philippines’ position as an emerging manufacturing hub for firms seeking to diversify, anchoring both industrial scale and supply-chain depth across the economy.

Once the shipyards are operational, they will create the critical mass needed to attract new investments in manufacturing — the kind of investments the Philippines has long sought but rarely secured.
A circular and green maritime future

Equally important is sustainability. By pairing modern shipbuilding with responsible ship recycling, the Philippines can develop a circular maritime industry — where materials from retired vessels are recovered, reused, and refitted into new, more efficient ships.

This approach aligns with the Hong Kong Convention on Ship Recycling and the maritime sector’s global decarbonization drive. The Philippines could lead Asia in green and circular shipbuilding, combining industrial progress with environmental stewardship.
Industry can lead, government must deliver

The Philippine government has already set its course. The forthcoming Shipbuilding and Ship Repair Development Act, together with CREATE MORE and ARTA’s Ease of Doing Business reforms, signals genuine commitment to attract investment and streamline regulation.

But key leadership must come from the shipbuilding industry itself — from companies ready to innovate, invest, and take on the challenge. It is the private sector’s ambition and ingenuity that will determine whether the Philippines can become a leading global shipbuilding nation.

The government’s role is to prove its readiness to act and support take-off when needed: to ensure predictability, reduce red tape, align agency inputs, and deliver on its promises to improve the business environment for shipbuilding. If it can do that, investors — existing and new — will not hesitate to follow.
The tide is incoming

This week’s Global Shipbuilding and Ship Repair Conference represents a moment of convergence — where technology, partnership, and policy meet. The Philippines has the validation, the know-how, and the global attention. Now it must show resolve.

Shipbuilding is more than an industry; it is a national capability and a statement of ambition — one that can ignite a new industrial revolution, create tens of thousands of skilled jobs, and secure the Philippines’ place among the world’s great maritime nations.

The tide is incoming — swift, imposing, and full of promise.

The question is whether industry and government together will seize it — and reshape not only the ships that carry the world’s trade, but the industrial future of the Philippines itself.

This week, we will see how high the tide can rise.

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Danish Ambassador Franz-Michael Skjold Mellbin was appointed Ambassador to the Philippines and Palau in 2022. He has previously served as Danish Ambassador to Afghanistan, Japan, UAE and Qatar, as well as being Permanent Representative in the International Renewable Energy Agency.