Palacios Welcomes Investor Interest, Supports Military as Anchor Tenant

Gov. Arnold I. Palacios has expressed optimism over a recent wave of investor interest in the CNMI, citing a successful overseas campaign by the Commonwealth Economic Development Authority and growing attention from industries ranging from clean energy to high-tech manufacturing.

Speaking to the press shortly after signing the Ocean Month Proclamation last June 4 in Garapan, Palacios reacted to CEDA executive director Derek Sasamoto’s presentation earlier that day at the Saipan Chamber of Commerce meeting, where Sasamoto detailed the strong interest shown by potential investors at last month’s SelectUSA Investment Summit in Maryland.

“There’s been at least a dozen serious inquiries—Silicon Valley tech firms, Japanese auto part manufacturers, even agribusinesses from Africa,” Palacios said. “Some of them have already come back multiple times to assess whether the CNMI is the right fit.”

Palacios credited a decision made two months ago to designate CEDA as the lead agency for handling investor inquiries and streamlining inter-agency coordination. “We’re moving beyond just tourism,” he said, while still affirming that tourism would remain the Commonwealth’s economic bedrock.

The governor confirmed that CNMI representatives at SelectUSA—led by Sasamoto, officials from the Department of Commerce, and Sen. Corina Magofna—presented a new investment package touting tax advantages, regulatory exemptions, and strategic positioning as key selling points. “They had a very successful engagement. There’s real traction,” he added.

Palacios also addressed comments made by businessman Joe Ayuyu in a recent Marianas Press interview, suggesting that the U.S. military should be considered the CNMI’s “anchor tenant.” The governor agreed.

“I said that two years ago,” Palacios said. “The Department of Defense is investing billions across the Indo-Pacific. That includes us, Guam, and our neighbors. Joe’s right—we’ve had these discussions with Pentagon officials, and we need to pay close attention.”

When asked about Ayuyu’s push to streamline the CNMI’s permitting process for investors, Palacios said reforms are already in motion.

“I’m probably going to move permitting oversight to the first floor of the Governor’s Office,” he said. “We need to bird-dog the process and make sure permits don’t sit on desks. Environmental permits should be out within 30 days, business licenses in less than a week. That’s the standard we’re aiming for.”

Palacios emphasized that creating a more efficient investment environment is key to diversifying the CNMI’s economy and building investor confidence. “We have to show we’re serious about reform and follow-through,” he said.

For now, Palacios said he remains cautiously optimistic but hopeful that several investor leads will turn into job-creating ventures for the Commonwealth, which is still recovering from the COVID-19 pandemic and affected by geopolitical tensions between the U.S. and People’s Republic of China. Before the pandemic, China was one of the CNMI’s main tourist markets.