The Pacific Corridor
Issue 7
Editor’s Note
by Danica Jane Guieb, Lead Editor - Pacific Corridor Desk
In this issue, we look closely at the revolving dynamics of policy, public safety, and economic resilience across the Pacific Corridor region. From trade tensions to public health crises and environmental reforms, these developments reflect not only the challenges at hand, but the critical decisions shaping each nation’s path forward.
Eduardo Fajermo unpacks the implications of the U.S. tariff threat against the Philippines, situating it within a broader recalibration of global trade. More than a bilateral dispute, the threat raises urgent questions about ASEAN’s economic sovereignty and the need for stronger regional coordination.
In Singapore, Ryan Lim reports on the rise of “zombie vapes”— drug-laced e-vaporisers that have exposed legal and health blind spots. As policymakers move to respond, the article underscores the importance of agile regulation and cross-border enforcement in keeping up with emerging public health risks.
Turning to Vietnam, Hang Nguyen examines the country’s bold plan to phase out fossil-fueled motorcycles in major cities. While motivated by urgent environmental goals, the initiative raises complex questions about sustainability, equity, and the transition burdens borne by working-class communities.
Together, these reports capture a region that’s not only adapting to change, but actively shaping it—sometimes with urgency, sometimes with caution. We share them not just for context, but to show how today’s decisions may shape lives, communities, and futures across Southeast Asia.
The Philippines 🇵🇭
What the U.S. Tariff Threat Means for the Philippines
by Eduardo G. Fajermo Jr., in Angeles City
U.S. President Donald Trump, in a letter dated July 9, 2025, notified the Philippine President Ferdinand Marcos Jr. of a forthcoming 20% tariff on all Philippine exports to the United States beginning August 1st. The move, according to the letter, is a response to what Washington characterises as a sustained trade imbalance and persistent non-reciprocal trade barriers. President Trump, now in his second term, also proposed that Philippine companies could circumvent the tariff by relocating their manufacturing operations to the U.S. —promising expedited and professional handling of such investments. Philippines’ ambassador to the United States, Jose Manuel Romualdez, said a representative will be dispatched to Washington to explore options and renegotiate ahead of the implementation date.
In 2024, the Philippines recorded a trade surplus of $4.9 billion with the United States—a positive balance, though relatively modest compared to regional counterparts such as Vietnam.
JC Punongbayan, an economist at the University of the Philippines, questioned the economic rationale behind the proposed tariff, noting that trade deficits are not intrinsically negative and may reflect robust consumer demand or capital inflows. Punongbayan also described the 20% tariff rate as arbitrary and lacking any clear economic methodology. He said the measure departs from previous practices of trade cooperation between the two countries.
It can be remembered that the United States previously granted the Philippines duty-free access to over 3,500 products under the Generalized System of Preferences (GSP), a trade program that expired in 2020 and has yet to be renewed by Congress. The GSP epitomizes the past foundation of the U.S.–Philippine economic relationship, built on cooperative incentives rather than pressure-driven measures..
The Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) flagged the 20% U.S. tariff as a setback to its earlier export growth outlook. SEIPI President Danilo Lachica said the new rate threatens the sector’s competitiveness and could slow momentum in attracting investments and fulfilling global demand.
This development comes as ASEAN member states recalibrate trade strategies amid intensifying competition between major powers. The tariff threat against the Philippines could set a precedent for how larger economies engage with the region, highlighting the urgency for ASEAN to deepen intra-regional trade, coordinate policy responses, and reinforce collective resilience through frameworks like the ASEAN Economic Community (AEC) and the Regional Comprehensive Economic Partnership (RCEP).
Barring a last-minute agreement, the 20% tariff is expected to take effect on August 1st, and ultimately, the outcome of the Philippine delegation’s mission to Washington may shape how smaller economies navigate emerging trade frictions with dominant global players.
Eduardo is a faculty member at Holy Angel University, where he teaches courses on Philippine history and contemporary global issues. He is currently pursuing a Master’s degree in Political Science at the University of Santo Tomas, with a research focus on disaster governance, environmental politics, and the urban poor in the Philippines.
Singapore 🇸🇬
KPods: Singapore’s ‘Zombie Vapes’ Spark Regulatory Alarm?
by Ryan
Over the past year, Singapore has seen a disturbing shift in the narcotics industry. Beyond tobacco and traditional narcotics, a new threat has emerged: Kpods - a hybrid device combining e-vaporisers with potent sedatives such as etomidate, ketamine, and occasionally, even stronger illicit substances. These sleek devices, often dubbed in Singapore as “zombie vapes”, have induced severe symptoms such as muscle spasms, confusion, seizures, and even psychosis.
Vaping and the use of e-vaporisers have been banned in Singapore since 2018, with offenders facing fines of up to SG$2,000. The distribution of such products carries even harsher penalties, including fines of up to SG$10,000 and/or imprisonment for up to six months. One father recounted losing his 19-year-old daughter after suffering multiple injuries due to a fall from a height while intoxicated. Another woman shared how Kpods caused her husband to become violent which eventually traumatised their children.
However, Kpods are a new form of narcotics which have yet to be classified and therefore, exist in legal grey areas. For example, Etomidate, which is a common drug found in Kpods, is regulated under the Poisons Act instead of the Misuse of Drugs Act, which can complicate prosecutions. The Health Sciences Authority (HSA), Central Narcotics Bureau (CNB), Immigration & Checkpoints Authority (ICA), and the Singapore Police Force (SPF) have been ramping up operations and enforcement through targeted operations such as surveillance of online market places, border seizures, and frequent raids at hotspots. Roughly SG$41 million worth of e-vaporisers and components were seized between January 2024 and March 2025, a figure that far exceeds those of previous years.
Medical and legal experts have advocated for urgent legislative reforms. In Parliament, there has been growing emphasis on classifying drug-laced Kpods as narcotics under the Misuse of Drugs Act, a move that would enable the imposition of stricter penalties upon detection. Simultaneously, healthcare professionals have recommended standard protocols in hospitals, including the documentation of all Kpod-related cases, the confiscation of devices, and the conduct of targeted toxicology screenings.
The emergence of Kpods in Singapore is not an isolated phenomenon. It reflects a growing public health concern and enforcement challenge across Southeast Asia. Both Malaysia and Thailand have seen an increase in the number of users and arrests. In a recent bust in Bangkok, authorities arrested both Thai nationals and a Singaporean implicated in the distribution of drug-infused e-vaporisers which amassed an estimated SG627k in illegal profits.
Ryan is a final-year Finance student at the Singapore University of Social Sciences (SUSS) with experience across venture capital, venture debt, and business development. He also holds a diploma in Law and Management from Temasek Polytechnic. His interests lie in how emerging technologies and economic trends shape business ecosystems and regional development in Asia.
Vietnam 🇻🇳
Vietnam’s Bans Petrol Motorcycles: An Impractical Endeavor or Urgent Solution?
by Hang Nguyen, in Ho Chi Minh City
On July 12th, Prime Minister Pham Minh Chinh issued Directive No. 20/CT-TTg, which mandates Hanoi to effectively prohibit all fossil-fueled motorcycles and mopeds from traveling within the city’s inner Ring 1. This directive will be fully enforced by July 2026 and Ring Road 3 will be low-emission by 2030. At present, local governments and institutions are being encouraged to explore strategic frameworks for implementation.
The proposed ban on fossil-fueled motorcycles—a long-standing fixture in Vietnamese culture—has sparked considerable public and academic debate, particularly around two central issues: the feasibility of such a policy and the broader implications it poses for the country’s emerging electric vehicle (EV) market.
Environmental revitalization remains a critical and widely supported goal in sustainable development discourse. Hanoi and Ho Chi Minh City have consistently ranked among the top 30 and top 40 cities worldwide for hazardous air quality and pollution, respectively. IQAIR, a Swiss air quality index (AQI) monitoring company, recorded Hanoi’s average levels reaching a brown AQI of 307. On January 3rd this year, the city ranked as the most polluted in the world. Both residents and government officials voiced concern over health implications.
The Ministry of Health published a warning instructing citizens to refrain from prolonged outdoor activities and avoid traffic-heavy areas, as gas emissions from petrol-fueled vehicles are accountable for 60% of PM2.5 particles released into the atmosphere. Reducing fossil fuel emissions is key in combatting the prevalence of respiratory-related illnesses, particularly among vulnerable populations.
While the shift toward cleaner modes of transport is undeniably urgent to address environmental concerns, it also presents complex challenges for developing economies where motorcycles remain deeply embedded in daily life and livelihoods. In many communities, motorcycle ownership is near-universal, often serving as a primary means of mobility and income generation. By 2024, there were 77 million registered motorcycles in Vietnam that accounted for approximately 93% of transport on the road. Phasing out petrol and diesel vehicles would be time-consuming and burdensome, with financial constraints posing the biggest challenge. The average 2-person income household (15.2 million VNĐ , equivalent to $590 USD) does not suffice to afford a mid-range and high-quality electric motorcycle. This financial strain on locals necessitates government assistance.
On July 14th, Deputy Chairman of the Hanoi People’s Committee Duong Duc Tuan shared with the media the current proposals in circulation amongst Hanoi authorities. The proposed support policy aims to assist the EV conversion of approximately 450,000 petrol motorcycles and green transportation infrastructure like EV bus-lines and urban railway systems.
On July 16th, the Department of Construction delineated the following suggested financial aid package: 3 million VNĐ (~$114 USD) for regular-earning individuals, 4 million VNĐ (~$152 USD) for near-poor households, and 5 million VNĐ (~$191 USD) for low-income households. Additional incentives include fully-covered registration and licence plate issuance fees. More consideration is required to gain civilian approval and trust.
Upon the announcement of Directive No. 20/CT-TTg, the EV market has been gaining momentum while the petrol vehicle market is currently stalling. Purchase cancellations, returns and deposit forfeiting have increased due to consumers’ uncertainty. Local EV manufacturer VinFast LLC. can anticipate sales growth as consumer demand spikes. Popular foreign automobile manufacturers and distributors such as Honda and Yamaha are urged to swiftly adapt.
Hang is a young researcher with academic and lived experience in both Vietnam and the United States. She has previously worked in public relations at the U.S. Consulate General in Ho Chi Minh City and the YSEALI Academy. Her research focuses on ASEAN centrality in the evolving Asia-Pacific landscape, with particular attention to Vietnam’s pragmatic approach to trade, regional cooperation, and political economy in the face of external power dynamics and global volatility.
Editorial Deadline 22/07/2025 11:59 PM (UTC +8)
