Post #62: Entering the Southeast Asian Blue Economy – Why the Philippines Matters

Through my involvement with Narwhale Ventures and the NOA2025 accelerator, I thought this would be a good time to explore the SEA landscape.

There’s growing global attention on the region, and for good reason: Southeast Asia isn’t just rich in biodiversity, it’s also becoming a proving ground for ocean tech, circular economy models, and sustainable coastal development. But for startups looking to expand into this space, the path isn’t always obvious.

This week’s post is a brief scan of why Southeast Asia — and particularly the Philippines — is becoming a focal point for blue economy innovation, and what founders should keep in mind when thinking about entering the market.

Why Southeast Asia – And Why Now?

Southeast Asia is one of the most ocean-dependent regions in the world — both in terms of economic value and community livelihoods. It sits at the heart of the Coral Triangle, is home to over 600 million people, and supports everything from industrial ports to small-scale fisheries, mangrove reforestation, and marine biodiversity reserves.

But alongside its ecological significance is a growing wave of investment, policy, and partnership interest aimed at transitioning the region’s coastal economies toward more sustainable models.

Here’s why:

• Environmental urgency: Climate change, overfishing, plastic pollution, and sea-level rise are putting enormous pressure on coastal ecosystems — and countries are now actively seeking solutions.

• Growing public-private coordination: Governments (through blue economy roadmaps), regional NGOs, and corporates are collaborating more openly with impact-driven startups.

• Capital flows are picking up: Funds like Ocean 14 Capital, the Asian Development Bank, and local angel networks are showing more interest in the region — particularly when tech and climate impact intersect.

• Southeast Asia = scale: From island electrification to aquaculture, scalable, tech-enabled blue economy solutions have a massive addressable market across this region.

  
  

It’s not just a story of climate adaptation — it’s a real, fast-growing market that startups are increasingly seeing as worth the complexity.

Zooming In on the Philippines

With over 7,000 islands and a population where the majority live near the coast, the Philippines is deeply tied to the ocean — economically, culturally, and environmentally. It’s one of the most promising but complex markets for blue economy startups looking to enter Southeast Asia.

Why it stands out:

Economic growth with marine relevance

• The Philippines is one of the fastest-growing economies in Southeast Asia, with GDP growth forecast to exceed 6% in 2025.

• Ocean-based industries — from coastal tourism and fisheries to marine transport and energy — make up a growing share of national economic output.

• Government agencies and economic planners are increasingly identifying blue economy sectors as key drivers of future inclusive growth, especially in rural and coastal areas.

  
  

Strong talent and academic support

• The country has a highly-educated, English-speaking workforce, which makes collaboration with international startups and investors smoother than in many emerging markets.

• Marine science institutions like UP Marine Science Institute, De La Salle University Dasmariñas, and Batangas State University are not only research leaders but increasingly open to startup partnerships.

• There’s also a deep cultural and professional knowledge of the sea — from artisanal fishing communities to port engineers and coastal planners.

Public sector momentum

• The Department of Science and Technology (DOST) and Department of Environment and Natural Resources (DENR) have been backing early marine innovation efforts — from plastics and pollution response to ocean observation systems.

• Local economic zones under PEZA (Philippine Economic Zone Authority) are offering incentives for innovation-led businesses in strategic regions.

• While regulatory navigation can still be challenging (with national and LGU coordination gaps), there’s clear progress and an openness to co-developing frameworks — especially if you're bringing local partners into the mix.

Sectors with opportunity

Startups building in or entering the Philippines should pay close attention to these areas:

• Aquaculture tech – hatcheries, disease prevention, feed innovation

• Ocean data tools – marine mapping, fisheries tracking, MPA management

• Clean maritime – vessel electrification, port logistics, alternative fuels

• Circular economy – localised waste solutions, new materials

• Coastal resilience – reef protection, eco-tourism, flood mitigation

The opportunity is real, but it's not plug-and-play. Tech needs to be paired with trust, and traction often comes from showing up — with intent to build locally, not just enter.

What Startups Should Know Before Entering

The Philippines is full of opportunity — but entering the market successfully requires more than just enthusiasm. The startup environment is dynamic but layered, and international teams often face friction when navigating regulation, partnerships, and localisation.

Here’s what founders should keep in mind:

• Local Partnerships Aren’t Optional — They’re Essential

Startups that succeed here almost always do so in partnership with local SMEs, NGOs, research institutions, or government agencies.This isn’t just about optics — it’s about access, trust, and execution.

72% of foreign ventures entering the Philippines in emerging sectors (incl. marine tech) reported faster regulatory clearance or pilot deployment when partnered with a local entity (source: DTI Philippines / 2023 case data).

• Know the Barriers — So You Can Design Around Them

While the ecosystem is growing, some recurring pain points include:

• Fragmented permitting: Coastal, municipal, and national approvals often overlap

• Long procurement timelines in public sector partnerships

• Data access gaps: Many marine or environmental datasets are outdated, incomplete, or offline

• Logistical limitations: Infrastructure in remote island regions remains underdeveloped

  
  

However, these are also where startups can add the most value — tools that streamline, digitise, or enable better decision-making are welcomed when built with the right partners.

• Test, Localise, Then Scale

Too many founders enter Southeast Asia thinking “APAC” is one market. It’s not — and even within the Philippines, regional differences in market readiness, logistics, and stakeholder priorities are significant.

The good news: it’s a great environment for low-cost pilots. University labs, regional cooperatives, and NGO-led projects often provide trusted platforms for early validation.

Suggested Entry Routes

• Apply to accelerators like Narwhale Ventures’ NOA2025, which offer built-in local access, expert navigation, and partner support

• Explore soft landing programmes through DTI or PEZA zones

• Collaborate with local research universities or cooperatives for co-development pilots

• Partner with NGOs active in plastic recovery, sustainable tourism, or coastal community engagement

The bottom line: the Philippines is not an “easy win” market — but it is a high-upside one. For startups that approach it with curiosity, patience, and respect for local context, the long-term opportunity is significant.

Concluding remarks

The Philippines — and Southeast Asia more broadly — is fast becoming one of the most compelling frontiers for blue economy innovation. With its mix of ecological urgency, policy momentum, and emerging capital, the region offers startups not just a market, but a meaningful place to build.

But entering this space takes more than a good deck and scalable tech. It requires understanding the nuance, showing up with a willingness to co-create, and staying long enough to be trusted.

If you're thinking about expanding into the region or already exploring partnerships — I’d love to hear from you. And if you're not, maybe it's time to consider it.

Until then — thanks for reading. 🌊

H