The United States, the Philippines and Japan recently announced the expansion of the Luzon Economic Corridor (LEC) partnership to include Australia, Denmark, France, Italy, South Korea, Sweden and the United Kingdom.

The Luzon Economic Corridor, announced in April 2024 as the first Partnership for Global Infrastructure and Investment (PGI) corridor in the Indo-Pacific, enhances connectivity between Subic Bay, Clark, Manila and Batangas.

Through coordinated investments in transport infrastructure, energy systems, digital connectivity and advanced manufacturing supply chains, the LEC will create thousands of high-quality jobs and transform Luzon into a more prosperous and interconnected region, a release from the US embassy in the Philippines said.

The US, the Philippines and Japan have announced the expansion of the Luzon Economic Corridor partnership to include Australia, Denmark, France, Italy, South Korea, Sweden and the UK.
Through coordinated investments in transport infrastructure, energy systems, digital connectivity and advanced manufacturing supply chains, the corridor will transform Luzon into a more prosperous and interconnected region.

“The expansion of the LEC partnership demonstrates the power of collaboration among likeminded nations committed to transparency and shared prosperity,” said Philippine secretary of finance Frederick D. Go, co-chair of the LEC steering committee.

“Together, we are building infrastructure that will improve daily life for millions of Filipinos and create new opportunities for businesses, industries, and communities in our partner countries and across the region,” he said.

LEC partners share a commitment to a free and open Indo-Pacific and pledge to promote fair and transparent economic development. Partners will contribute through technical assistance, financing, and facilitation of private sector investments, while actively participating in working groups focused on transport, energy and digital infrastructure.

Australia is mobilising investment in the LEC through Australia’s Manila Deal Team, reinforced by technical assistance under the Partnerships for Infrastructure programme and a new $32.6-million partnership with the Philippines on inclusive economic growth.

Denmark is contributing to the LEC by revitalising Philippine shipbuilding, advancing green maritime innovation and fostering investments, jobs and sustainable industrial development. Working with the government and the private sector, Denmark’s shipbuilding initiative aims at creating 10,000 jobs.

France is strengthening connectivity in the LEC by financing 100 bridges through official development assistance, and industrial capacity building through a foreign direct investment project in the aeronautics sector.

Italy is contributing to the development of quality, resilient and sustainable infrastructure by increasing its public financial support to facilitate private sector investment from Italian companies in the transport, semiconductors and manufacturing sectors.

South Korea is contributing to enhanced transport and digital connectivity, and sustained economic growth along the LEC, through official development assistance and public-private partnership initiatives, including a $25.6-million grant to establish the National Cyber Security Centre and the Ninoy Aquino International Airport modernisation PPP project.

Sweden is contributing to Luzon’s Subic-Clark-Manila-Batangas freight railway through a $1.2-million grant to fund a feasibility study on signalling systems and operational models.

The United Kingdom is deploying its full Growth and Investment Partnerships (GIP+) toolkit in the LEC, providing technical assistance, $6.8 billion in export finance and mobilising capital towards infrastructure and energy projects.

Fibre2Fashion News Desk (DS)

Despite global headwinds, the Indian economy has maintained strong growth momentum, according to a newsletter released by State Bank of India (SBI), which said high-frequency activity data indicates resilient economic activity, with minor decline in the fourth quarter (Q4) of fiscal 2025-26 (FY26).

Rural consumption remains strong, driven by positive signals from farm and non-farm activity. Supported by fiscal stimulus, urban consumption shows a consistent uptick since the last festive season, the newsletter noted.

Overall, it expects Q4 FY26 real gross domestic product (GDP) growth of closer to 7.2 per cent and nowcasts full year FY27 GDP growth rate of 6.6 per cent. FY26 GDP growth is likely to be at 7.5 per cent.

Despite global headwinds, India has maintained strong growth momentum, an SBI newsletter said.
Rural consumption remains strong and urban consumption shows a consistent uptick since the last festive season.
It expects Q4 FY26 real GDP growth of closer to 7.2 per cent and nowcasts FY27 GDP growth rate of 6.6 per cent.
FY26 GDP growth is likely to be at 7.5 per cent.

It is high time for the country to rededicate towards artificial intelligence-led productivity gains, competitiveness and global value chain integration, the newsletter mentioned.

With a consumption boost by the government through goods and services tax, credit continued to grow in the second half (H2) of FY26. The same trend is continuing now, and credit grew by 16 per cent as of April 30, 2026.

However, the credit growth is expected to remain robust during the H1 FY27 and will decline in H2 with high base effect. The full year, credit growth is expected at 13-14 per cent, as per the newsletter.

Domestic consumption is expected to hold GDP growth upwards, despite external crisis, especially the Middle East crisis.

Fibre2Fashion News Desk (DS)

Bangladesh’s readymade garment (RMG) sector is set to adopt blockchain-based transparency and Digital Product Passport (DPP) capabilities after the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) signed a memorandum of understanding (MoU) with Dutch supply chain traceability platform AWARE.

The initiative aims to help Bangladesh’s garment exporters comply with the European Union’s mandatory DPP regulation, which will come into force in 2027. The agreement was signed in Dhaka by BGMEA Vice President Vidiya Amrit Khan and AWARE Founder and Managing Director Feico van der Veen.

Bangladesh’s readymade garment (RMG) sector is set to adopt blockchain-based transparency and Digital Product Passport (DPP) systems ahead of the European Union’s 2027 regulations.
BGMEA and Dutch traceability platform AWARE signed an MoU to enable end-to-end traceability of fibres, yarns, and garments through blockchain-backed digital records, helping exporters strengthen compliance.

Under the partnership, BGMEA member factories will be able to generate blockchain-anchored digital records tracing garments from fibre origin to finished products. The system will provide verified information on raw material sourcing, production processes, and environmental footprint through QR-code-enabled Digital Product Passports.

The move is significant for Bangladesh’s garment industry, which depends heavily on imported fibres and yarns from countries such as China and India. Through blockchain-backed data tokens created at the fibre and yarn production stage, traceable information will move across borders along with physical shipments, enabling end-to-end supply chain visibility.

According to BGMEA, the adoption of blockchain-based traceability will help garment manufacturers improve transparency, strengthen compliance, and position Bangladesh as a reliable sourcing destination for European brands facing stricter sustainability and traceability requirements under the EU’s Ecodesign for Sustainable Products Regulation (ESPR).

The agreement also ensures that factories retain ownership and control over all production data generated through the platform. Pilot projects involving selected spinners and garment manufacturers are expected to begin immediately to develop cross-border fibre-to-garment DPP supply chains connecting Bangladesh with European buyers.

Fibre2Fashion News Desk (CG)