The US considers Guam a key strategic military base in the Pacific. Photo credit: RNZ Pacific / Eleisha Foon.
Source: RNZ Pacific
The Government of Guam is in talks with the United States territory’s airport authority to allocate land for a dedicated industrial park in its efforts to position the island as a logistics and defence hub in the Indo-Pacific.
This was revealed by Guam Governor Lourdes Leon Guerrero during her welcome remarks at the Pacific Islands Development Bank (PIDB) Board of Governors meeting, in Saipan, on Wednesday.
Governor Leon Guerrero has outlined her administration’s efforts to diversify the US territory’s economy, speaking extensively on Guam’s plans to attract Taiwan-based computer chip manufacturers and support 3D printing technology for rapid naval vessel repairs.
The Governor says she spoke to the President of Taiwan about bringing chip manufacturing to Guam.
She says such initiatives would enhance Guam’s capacity to support the US military presence in the Pacific, especially with regard to shortening supply chains for ship and submarine repairs.
“We are looking at diversifying our economy,” Governor Leon Guerrero says.
“And that added manufacturing will improve the supply chain, especially very beneficial for the military build-up because ships and submarines, in terms of needing parts to be repaired, can be repaired quickly.”
While welcoming Pacific leaders to Saipan, Governor Leon Guerrero acknowledges persistent challenges in Guam’s tourism sector due to global economic uncertainties, currency fluctuations, and air service limitations.
“We are still slowly recovering from the [Covid-19] pandemic,” she says.
“It is slow to come back because of global issues – the yen, the dollar – and air connectivity is a concern,” she adds, noting Federal regulations have also constrained certain tourism activities.
The Governor says Guam is working with low-cost carriers and international markets, like Taiwan, to restore travel demand.
She points to recent increased flight arrivals from Taipei as a sign of progress.
“People from Taiwan love to travel, but they are not going to China because of the issues between China and Taiwan,” she says.
“Let’s take that opportunity to entice them to come to our part of the Pacific.”
She reiterates Guam’s strategic importance to national defence, noting billions of dollars in military spending are flowing into the island.
However, she emphasizes the need for shared responsibility between the Federal Government and Guam in building critical infrastructure.
“The military buildup is ongoing and we’re working closely with them to finance infrastructure-electricity, utilities.
“We also want them to give their share for the burden of peace,” she says.
Governor Leon Guerrero flags workforce development as a key economic priority, especially with ongoing construction and business activity.
“We have been very innovative in our training,” she says, noting that boot camps and upskilling programmes have been deployed.
“But that still isn’t enough,” she adds, saying Guam is also pushing for more H-2B visas to fill gaps in the construction workforce.
She acknowledges competition with the Federal Government for public sector employees and notes recent local pay raises have helped retain police officers, nurses, and teachers.
“Workforce is one of the biggest challenges for us and we are also dealing with issues of housing shortages, drug addiction, and telecommunications,” she says, noting that new investments, including a modern hospital, are also part of Guam’s strategic buildout.
Governor Leon Guerrero urges regional unity among the Pacific nations, especially amid global power shifts and growing emphasis on the Indo-Pacific.
“When we stand together in a united voice, we will win this part of the Indo-Pacific for national security,” she says.
“Let’s leverage that as much as we can so both parties can benefit from it.”
She also mentions the importance of framing climate change discussions with care in a shifting US political environment.
“We need to be careful of what we say in languages and words so that we can continue the relationship with the United States,” she says.
Governor Leon Guerrero has thanked Pacific leaders from Palau and the Federated States of Micronesia, reaffirming her commitment to collaborative development and security partnerships across the region.
The PIDB Board of Governors meeting was attended by executive and legislative leaders from around Micronesia.
Its agenda included review of the bank’s independent audit report, updates on strategic priorities, and each jurisdiction’s economic conditions.
Multiple speakers cited tourism stagnation, housing gaps, and inflation as common challenges.
