21 December 2009

Subic Freeport Oct-Nov investments reach $44.42M

Investments generated in this free port in the months of October and November have reached $44.42 million, putting the cumulative total in the last 11 months at $166.64 million.

Figures from the Subic Bay Metropolitan Authority (SBMA) indicated that a total of $23.1 million were committed by 12 investor-companies here in October, while 22 firms pledged a total of $21.32 million in November for their projects.

Among the top investors in the two-month period is real estate developer Ayala Land, Inc. , which pledged $21.4 million for the construction, development and operation of a retail and commercial center here.

Other investors with substantial project commitments included Aeroframe Composites, Inc., which pledged $465,000 for the processing of composite parts and materials; Hamomo Corp., with $385,274 for the operation of a real estate business; and Honey & Money Subic Corp., with $321,062 for the development, management, and operations of a condominium, hotel and commercial complex.

SBMA Administrator Armand Arreza, who noted the resurgence of investments here following a slowdown late last year until early this year due to the global economic crisis, said this is “an encouraging sign.”

“As far as we can tell, Subic is fast regaining its footing in terms of investment generation,” Arreza said.

“While there has been a noticeable drop in FDIs (foreign direct investments), Filipino companies like Ayala Land have more than made up for the slump,” Arreza added.

According to Arreza, FDIs recorded in the Subic Bay Freeport actually fell by more than 67 percent in January-November this year compared to the total in the same period last year. The 2008 figure for the first 11 months was $224.82 million, while the 2009 tally was only $73.82 million.

On the other hand, 139 investment projects put up by Filipino companies contributed a total of $96.22 million in investment pledges, or 57.74 percent of the $166.64 million total for January-November..

After the Filipino investment commitments, the next biggest pledges were put up by 26 Korean firms with a total of $55.86 million, or 33.52 percent; a Swiss project worth $7 million, or 4.2 percent; six Taiwanese projects totaling $2.86 million; and four Japanese projects with a total of $1.27 million.

The ten biggest investments in the 11-month period were committed by Ocean Nine Philkor, Inc., a Korean company that pledged $52.38 million; Filipino developer Ayala Land, Inc., with $21.4 million; Tountzis Shipping Inc. (Filipino), with $20.23 million; Jadelink Subic Inc. (Filipino), $16.85 million; Philip Morris Philippines Manufacturing, Inc. (Swiss), $7 million; Pure Petroleum Corp. (Filipino), $6.22 million; Subic Business and Technology College (Filipino), $4.29 million; Bonsure Evergreen International Corp. (Filipino), $2.21 million; Chifil International Import-Export Manufacturing Co., Inc. (Filipino), $1.41 million; and Eastern Subic Fuel Depot Corp. (Filipino), with $1.05 million.

The 163 projects approved so far by the SBMA this year are expected to contribute a total of 6,340 new jobs.

As of November this year, there are a total of 1,310 approved investment projects in the Subic Bay Freeport Zone. The cumulative investment commitments generated by these projects now total $5.918 billion. (SBMA Corporate Communications)