SBMA bats for two-point program to attract more investors

The Subic Bay Metropolitan Authority (SBMA) has disclosed a two-point program which is expected to put the Subic Bay Freeport in a more competitive investment position over its Asian neighbors.

In a meeting with executives of the Investment Promotion Agencies (IPA) composing the Technical Working Group of the Philippine Investment Promotion Plan (PIPP), SBMA Chairman Roberto Garcia said that he is now working on two points that will encourage investors to come in.

The first point, he said, is the rationalization of investment incentives, which, when approved, will be given to all investors equally by all investment promotion agencies in the country.

“Here at the SBMA, we are not allowed to offer income tax holidays and that is a disadvantage [on our part] versus the PEZA (Philippine Economic Zone Authority). The incentives for investors should be the same as with the other agencies. Otherwise, investors will withdraw their proposals because we don’t have income tax holidays,” Garcia said.

Second, Garcia said that his administration is currently working on making the incentives in Subic competitive with the incentives given in other countries in the region, specifically Vietnam and Cambodia.

He noted that government investment agencies should not compete with each other, but with Vietnam and Cambodia which are now developing their economy faster than the Philippines does.

According to Garcia, the Philippines’ foreign direct investment (FDI) last year reached only less than a billion dollars, while Vietnam made US$4 billion.

“We should take a closer look at what the other countries are offering, so that we may, at least, have equal footing,” he said.

IPAs are tasked to formulate and develop strategies to position the Philippines as among the prime investment destinations in the world through the creation of the PIPP, which serves as the blueprint in creating a world-class brand image of the Philippines based on promotional approaches of image building, investment generation and investment generation.

Among those who attended the PIPP meeting were executives from the Board of Investment (BOI), Philippine Economic Zone Authority (PEZA), SBMA, Clark Development Corp. (CDC), Cagayan Economic Zone Authority (CEZA), Regional Board of Investments of the ARMM, and Authority of Freeport Area of Bataan (AFAB).

Garcia told IPA executives that during Pres. Aquino’s visit to China, it was learned that there were about US$13 billion worth of potential investment waiting to be tapped.

“Although they are all merely potential investments, if we make ourselves competitive, we might be able to get them all. And they all will be coming to us,” he stressed.

“So, just imagine the multiplier effect of that (US$13-billion worth of) investment when it would come to the Philippines. Wow, we would go through the roof,” Garcia said.

In concluding his address, the SBMA official also remarked that the Philippines is in a prime position to compete, and that investment promotion is one of the factors that can help the country accomplish its economic goals.

“The urgency is already there, and the investors who are really interested to come to the Philippines are there. So, all we have to do is make it happen,” Garcia said. (SBMA Corporate Communications)