SBMA turns over ₱1.465B revenue earnings to the national coffers

The Subic Bay Metropolitan Authority (SBMA) officially handed over ₱1,465,478,485.70 in revenue earnings to the Department of Finance (DOF) at the DOF Building, Bangko Sentral ng Pilipinas (BSP) Complex in Manila on July 14, 2025.

In a simple ceremony, SBMA Chairman and Administrator Eduardo Jose L. Aliño presented a mock check for ₱1,465,478,485.70 to Finance Secretary Ralph Recto, which demonstrates a steady income flow of the business community within the Subic Bay Freeport Zone (SBFZ). 

Today, we once again gather to celebrate the strength of good governance and nation-building as the Subic Bay Metropolitan Authority officially hands over ₱1.4 billion in dividends to the National Treasury,” said Secretary Recto.

The secretary cited that dividends are his favorite source of revenue because they “help raise funds for government programs without raising taxes on our people.”

According to Chairman Aliño, the ₱1.465-billion dividends comprise 50 percent of the net earnings incurred in 2024 worth ₱798,267,923.24. 

“Aside from the dividend due, the ₱1.465-billion earnings also include the ₱667,210,562.46 as the last installment for dividends of 2022,” he added.

Meanwhile, the finance chef stated, “The SBMA was created to transform what was once a military base into a world-class economic engine – a self-sustaining investment hub that generates jobs and opportunities for our people.”

“As we look to the future, I urge the SBMA to take the next bold step. We have the talent, the location, the incentives, and the leadership to make Subic not just a regional hub, but a global player. So, let’s keep raising your standards, keep innovating, and keep making Subic the kind of place where investors would want to come, stay, and grow,” he added. (MPD-SBMA) 

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SBMA’s Passport on Wheels project yields 92 processed passports

The Subic Bay Metropolitan Authority’s (SBMA) Passport on Wheels (POW) project at the Harbor Point Ayala Mall on April 29, 2025, was able to process 92 passports in record time of 4 hours. 

SBMA Human Resource and Management Department (HRMD) Manager Vivian Abalos shared that the successful processing of the 92 passports was just a portion of the total 200 passport applications since the other 108 that were supposed to be processed did not materialize due to incomplete documents and payments.

  

Abalos extended her gratitude to the Department of Foreign Affairs (DFA), and Harbor Point Ayala Mall for their cooperation in the said corporate social responsibility (CSR) project of the agency.

The SBMA has been conducting the POW project even before the pandemic, and it has helped stakeholders within and around the Subic Bay Freeport Zone (SBFZ) in conveniently processing their passport applications and renewals. 

 

Meanwhile, SBMA Chairman and Administrator Eduardo Jose L. Aliño explained that the SBMA does not issue passports, but rather, the Department of Foreign Affairs (DFA). He said that this project is a part of the agency’s CSR program in collaboration with the DFA.

 

“This project aims to provide convenient access to passport services for individuals within the Subic Bay area. The SBMA brings passport application and processing services directly to Subic Bay Freeport to extend convenience to SBF residents, employees, and their dependents,” he added. (MPD-SBMA)

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SBMA sees more investments with CREATE MORE Act

Subic Bay Metropolitan Authority (SBMA) is now looking forward to more global investments after the bill on Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) was signed into law. 

SBMA Chairman and Administrator Eduardo Jose L. Aliño said that CREATE MORE, also known as Republic Act 12066, will make Subic Bay Freeport (SBF) a prime location for global investments. 

Aliño made this statement after the implementing rules and regulations (IRR) of the CREATE MORE Act was signed by Finance Secretary and Fiscal and Incentives Review Board (FIRB) chair Ralph Recto and Department of Trade and Industry (DTI) Secretary and FIRB co-chair Ma Cristina Roque at the Department of Finance on February 17, 2025. 

Senator Sherwin Gatchalian and FIRB Board Member Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go, and National Economic and Development Authority Secretary Arsenio Balisacan witnessed the signing. 

“Now that the IRR for the CREATE MORE Act is signed, it's back to work for us here in Subic Bay Freeport as we can now expect more foreign companies to invest here. This is certainly monumental since the IRR clarifies and refines the law’s smooth implementation provisions,” Aliño added.

The official cited that the CREATE MORE Act includes provisions for investors, giving them the option to choose either the Special Corporate Income Tax of 5% or Enhanced Deductions.

He said that more incentives would also be given to high-value investments with capitalization of more than P15 billion and in sectors that are considered import-substituting or export sales. 

He added that the CREATE MORE Act also provides additional relief to Registered Business Enterprises (RBEs) by reducing the Corporate Income Tax or CIT rate to 20% from 25%, with the law increasing the additional deduction on electricity from 50% to 100%.

“Tourism-related investments in the SBF will also benefit from the CREATE MORE Act, with the SBMA providing an additional 50% deduction for expenses related to trade fairs and tourism reinvestments until 2034,” Aliño said.

The law also maximizes the benefits of the Net Operating Loss Carry-Over by changing the reckoning period from “year of loss” to the “last year of the project’s income tax holiday (ITH) entitlement period.

Other provisions include tax and duty exemption on donations to public schools and government-owned and controlled corporations (GOCCs) and flexible work arrangements for call centers operating within economic zones and Freeports, without compromising their tax incentives.

Upon approval, local purchases of export-oriented enterprises become VAT zero-rated, while importations are VAT-exempt. VAT incentives will also be liberalized by shifting from “direct and exclusive use” to “directly attributable” requirements for goods and services. (MPD-SBMA)

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SBMA gets upgrade on GOCC Classification

President Ferdinand Marcos Jr. has approved the upgrade of the classification of the Subic Bay Metropolitan Authority (SBMA) as a Government Owned and Controlled Corporation (GOCC), pursuant to Executive Order no. 24 series of 2011.

The president also upgraded the classification of two other GOCCs - the Authority of the Freeport Area of Bataan (AFAB) and the Phividec Industrial Authority (Phividec).

In a Memorandum from Executive Secretary Lucas Bersamin to Finance Secretary Ralph G. Recto, the President has approved the classification upgrade of the SBMA from C to B.

SBMA Chairman and Administrator Eduardo Jose L. Aliño expressed his gratitude to President Marcos for approving the upgrade of the agency’s classification, and to Finance Secretary Recto for facilitating the request for classification upgrade of the concerned GOCCs.

Chairman Alino also stated that the upgrade will provide better incentives for the Board of Directors as stewards of the SBMA, and as caretakers of the best interests of stakeholders in the Subic Bay Freeport zone.

“Their expertise is very much needed in boosting the development of Subic Bay Freeport, be it infrastructure, revenue collection, operations, or attracting more tourists and investors. I want them to not just be a part of the decision-making body, but also a reliable and dependable source of invaluable ideas and insights,” he said.

The upgrade in classification was cemented by 2023’s collection of operating revenues, amounting to P4.116 billion, the highest recorded in the history of the agency. Aliño said that this is the second year that the SBMA has breached the P4-billion mark in operating revenues, specifically at P4.057 billion.

He added that last year’s P4.116 billion operating revenue is higher than 2022’s operating revenue by P59 million, which is 1.5 percent higher.

According to the said memo that was received by the SBMA on Wednesday, the request for classification upgrade was granted after careful and stringent evaluation based on the provisions contained in Section 6 of EO 24 s.2011 entitled GOCC Classification. The said provision determines the maximum allowable compensation of the members of the Board of Directors/Trustees in GOCCs and government financial institutions.

The same section also provides that, for a GOCC such as the SBMA to be upgraded from C to B, the Agency is required to have assets worth equal or more than P25billion and or less than P100 billion, and revenues  equal or more than P2.5 billion and less than P10 billion.

The classification of the two other GOCCs, namely AFAB and Phividec, was upgraded from D to C after proving to have satisfied the criteria in Section 6 of EO 24, with assets worth more than or equal to P5 billion and less than P25billion, and revenues of more than or equal to P500 million and less than P2.5 billion.

The memo by ES Bersamin was addressed to Finance Secretary Recto, with copies sent to Chairman Aliño, AFAB Chairman Pablo Gangcayco, and Phividec Chairman Jesus Guevarra II. (SNL) 

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Subic locator gets FIRB nod for duties, tax incentives

Nidec Subic Philippines Corporation, a registered enterprise here, gained the unanimous approval of the Fiscal Incentives Review Board (FIRB) in an en banc meeting last Friday, May 26.  

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Jonathan D. Tan reported that Nidec Subic had previously passed the scrutiny of the eight agency-member FIRB Technical Committee on May 18. 

He said that with the approval of the FIRB en banc, Nidec Subic will be entitled to Income Tax Holiday for six years, Special Corporate Income Tax for ten years, Duty-Exemption on Importation for 16 years, Value-Added Tax (VAT) Exemption on Importation for 16 years, and VAT Zero-Rating on Local Purchase for 16 years. 

Tan added that Nidec’s application for the said incentives complies with Republic Act No. 11534, or the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE), which aims to “develop the national economy towards global competitiveness by implementing tax policies instrumental in attracting investments.” 

The FIRB is an inter-agency government body authorized by the Philippine law to grant tax incentives to registered business enterprises, whose powers and functions was enhanced under CREATE law.

Meanwhile, SBMA Senior Deputy Administrator for Business & Investment Renato Lee III disclosed that the FIRB-approved incentives would be applicable to Nidec Subic’s Project Kinematex, which would involve the manufacture and assembly of medium- to large- size gearboxes for industrial robotics gears. 

Lee added that the ₱4.2-billion project’s product line is a high accuracy gearbox used as base, arm or shoulder for industrial robots and for auto tool changer/loader of machines. For this project alone, Nidec Subic will employ a maximum of 1,074 workers.

“We are taking this investor confidence as an opportunity to attract more foreign investors to make it happen in the Philippines while it is the top 10^th in the world’s most promising destinations of foreign investments in the next three years, according to the United Nations Conference of Trade and Development (UNCTAD),” Lee said. 

He said that this project would immediately commence this June to produce and export 288,000 pieces annually at the peak of production, valued at ₱ 5.064 billion.

Project Kinamatex is an expansion project of Nidec Subic, which landed the top four biggest expansion project in SBF in terms of additional investments in 2022. 

Nidec Subic is primarily engaged in manufacturing and assembly of reducer gears for robotic application and home appliances since 1999, and currently employs 622 workers. (MPD-SBMA) 

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FIRB approves tax perks for Project Agila, supports Hanjin shipyard rehabilitation

The Fiscal Incentives Review Board (FIRB), upon the endorsement of the Subic Bay Metropolitan Authority (SBMA), has approved the grant of tax incentives to Project AGILA for the redevelopment and operations of the Hanjin shipyard in the Subic Bay freeport zone.

This project is funded by United States (US)-based private equity firm Cerberus Capital Management.

Finance Secretary and FIRB Chairman Carlos Dominguez III supported the approval of the tax perks for Project AGILA with a total project cost of P17 billion as the rehabilitation of the Hanjin shipyard presents economic potential, given its strategic location near the West Philippine Sea (WPS).

The project was granted special corporate income tax (SCIT), value-added tax (VAT) exemption from importation, VAT zero-rating on local purchases, and duty exemption on importation.

“We expect the project to create jobs in the adjacent communities, increase economic activity as well as support the national government’s economic recovery efforts,” said Dominguez.

He added, “The resumption of operations in the shipyard will also prompt development and productivity in the area, which can attract more investment opportunities into the country.”

Furthermore, the project will cater to both the Philippine Navy (PN) and potential export locators.

It will be beneficial, specifically to the Navy, as it will involve the safety and efficiency of the Philippine government ships’ performance and, consequently, strengthen national security. (PR)

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Japan finalizes the Subic Bay Regional Development Masterplan

The Department of Finance (DOF), on Tuesday (April 26), unveiled the Subic Bay Regional Development Master Plan which was finalized with the assistance of a survey mission team of the Japan International Cooperation Agency (JICA).

The master plan will serve as a blueprint to maximize the economic development potentials of the Subic Bay and its surrounding areas.

The joint effort of the Philippines and Japan to formulate a regional development master plan for Subic Bay commenced with the decision by the two countries’ leaders in November 2019–and the Memorandum of Cooperation to that effect in Hakone, Japan, in December 2019.

The finalized Master Plan was furnished by Japanese Ambassador to the Philippines, H.E. Kazuhiko Koshikawa, to Secretary Dominguez on April 7 in Manila.

During Secretary Dominguez’s meeting on April 25 with Minister for Foreign Affairs of Japan, Hon. Hayashi Yoshimasa, both sides welcomed the successful completion of the Master Plan that was yet another epitome of bilateral strategic partnership between the Philippines and Japan.

“We deeply appreciate the Japanese Government’s close coordination and expeditious fulfillment of the commitment to the Subic Bay development masterplan, despite the challenges posed by the COVID-19 pandemic during its preparation,” said Secretary Dominguez.

The Master Plan envisages Subic Bay region’s economic future and concrete development proposals in both public and private sectors, with which the Philippine Government unlocks the full potentials of Subic Bay, including the port capacity and the connectivity with its hinterlands, with a view to helping continued efforts to decongest Metro Manila.

Minister Hayashi expressed hope that the publication of the Master Plan proves to be conducive to the enhancement of regional connectivity and coast guard capabilities of the Philippines.

The Philippines and Japan signed the Memorandum of Cooperation on Subic Bay Regional Development in December 2019 with the belief that such cooperation would serve both countries’ common interests.

To be specific, the Japanese side rendered technical support to the formulation of the Subic Bay Regional Development Master Plan that maximizes the economic development potentials of the Subic Bay by harmonizing logistics, industry and living functions, as well as existing assets and new investments.

The finalized master plan has covered possible development projects in the fields of road network for Olongapo’s Central Business District and Subic Bay West Coast, logistics terminals such as Alava Wharf, among others, and public utilities such as the Philippine Coast Guard’s new support facilities.

To date, Japan remains to be the country’s top Official Development Assistance (ODA) partner, with a net loan commitment of about USD 10.02 billion, and grant amount of USD 181.15 million, accounting for 31.84 percent of the country’s total ODA portfolio. (SNL)

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