US-based Cerberus acquires Hanjin shipyard in Subic Bay

United States-based private equity firm Cerberus Capital Management has completed its takeover of the shipyard previously run by Hanjin Philippines in Subic Bay with the recent conclusion of agreements on the facility, government officials confirmed.

"The completion of the Subic Bay shipyard will redound to benefits for the country, bring jobs to the local communities, increase economic activity, and at the same fortify our strategic security measure," Philippine Ambassador to the US Jose Manuel Romualdez was quoted as saying in a press release early Friday morning.

Manila's embassy in Washington said Romualdez made the remarks during a diplomatic reception on Apr. 19. The envoy also expressed his appreciation to officials of both countries along with executives of Cerberus for their efforts, which led to the conclusion of the deals.

"Great to see the completion of the acquisition of Hanjin shipyard in Subic Bay by a U.S.-based firm. An important example of U.S.-Philippine public-private partnership," Ely Ratner, U.S. assistant secretary of defense for Indo-Pacific security affairs, tweeted on Thursday.

Cerberus co-founder and co-chief executive officer Steve Feinberg also recognized the support offered by both the Philippine and American governments in ensuring the agreements' completion, said the embassy.

"Working with the United States on this project will help ensure that we are able to protect our interests not only for our country but the whole region," Romualdez said.

The facility at the former giant U.S. naval base has caught the attention of Chinese investors given its strategic location near the West Philippine Sea.

Details of the purchase, including the price, were not disclosed. Reuters reported last month that Cerberus was buying the debt-laden shipyard for $300 million.

Foreign Affairs chief Teddyboy Locsin called the transaction the "biggest public-private partnership in the 75-year history of Philippine-US relations." (CNN Philippines)

Source: https://www.cnnphilippines.com/news/2022/4/22/Cerberus-conclusion-agreements-Hanjin-shipyard-Subic-Bay.html 

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Taiwanese traders bullish on Subic business

Taiwanese investors have expressed confidence on the business outlook at the Subic Bay Freeport with the opening here last week of semi-conductor and electronics trader Yubantec, the latest Taiwanese company to locate in this free port.

Dr. Chin Der Ou, chairman of Subic Bay Development and Management Corporation, Inc. (SBDMC), which manages the Subic Gateway Park here, said the ongoing facilities improvement projects being undertaken by the Subic Bay Metropolitan Authority (SBMA) portend better business in Subic.

“There are many facilities improvement projects now. There are road construction and repairs, drainage improvement, as well as capacity expansion of the Subic Expressway. These are all good for investors,” Dr. Ou said during the Yubantec inauguration.

“I’m confident that Yubantec will do well in such a favorable business environment,” he added.

Taipei Economic and Cultural Office (TECO) representative Michael Hsu, meanwhile, said that more companies from Taiwan will locate in the Philippines, which he described as Taiwan’s “closest neighbor.”

“I assure you, the Taiwanese are willing to come to the Philippines to invest. And we have to find enough land for our locators especially in Subic Bay,” he added.

Yubantec, which is the latest addition to the Subic Gateway park locators, will engage in importing, designing, installing and after-sales services of air-conditioners, cold storage equipment and home appliances, as well as designing and sales of semi-conductors and electronic components.

SBMA Chairman and Administrator Wilma T. Eisma said the 61 Taiwanese firms in Subic now comprise the third biggest number of foreign investors here. Most are engaged in manufacturing and trading.

Taiwanese firms were among the pioneer investors in the Subic Bay Freeport Zone, she added, as the Subic Gateway Park, formerly known as the Subic Bay Industrial Park, was the first industrial park to be established in Subic.

Built in 1994, the Taiwanese-owned industrial park is now home to global names like computer giant Wistron Infocomm (Phils.) Corp., air-con specialist Johnson Controls-Hitachi, lock-maker Tong Lung (Phils.) Metal Industry, and footwear manufacturer Datian Subic Shoes, Inc.

Eisma said the entry of more Taiwanese companies helps Subic drive its momentum in investment and employment generation, pointing out that the SBMA approved 77 new projects in the first six months this year, compared to 45 in the first half of 2018.

The new investments, as well as the 21 expansion projects green-lighted in the first half, are projected to create more than 3,600 additional jobs in the Subic Bay Freeport.

Meanwhile, Senator Richard J. Gordon, who also graced the Yubantec opening, welcomed the entry of more Taiwanese investors here and pledged continued support to the SBMA.

Gordon said the government has a lot of infrastructure projects going on, as well as in the pipeline, for this area of Luzon which should also result in increased investments and business.

Gordon likewise called on the Subic business community to contribute in public discussion of issues that impact the Subic Bay Freeport and urged the Subic Bay Chamber of Commerce to drumbeat the advantages of the Subic Bay Freeport to investors abroad. (CAE/MPD-SBMA)

PHOTOS:

[1] SBDMC Chairman Chin Der Ou: “Improvement projects in Subic are good for investments”

[2] TECO Representative Michael Hsu: “More Taiwanese companies will come to the Philippines”

[3] Sen. Richard J. Gordon: “Drumbeat the advantages of Subic to investors abroad”

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More Taiwan investors eyeing Subic Bay Freeport

More Taiwan-based companies are now setting their sights on this premier free port, with eight firms expressing interest to invest here after talks with Subic Bay Metropolitan Authority (SBMA) officials in the recent Philippine Investment Forum held in Taipei.

SBMA Chairman and Administrator Wilma T. Eisma, who presented investment and business opportunities in the Subic Bay Freeport during the forum, said two Taiwanese companies had so far committed a total of $9 million in investments right away.

These are FTI Holdings Group (Milagros International Inc.), which plans to invest $6 million in Subic and to hire 600 workers within the year, and Grey Matter Industries Group, which had committed to invest $3 million and hire 200 workers.

FTI Group designs, manufactures and sells luggage, fashion handbags and backpacks, apparel and apparel accessories, outdoor products and pet products and accessories which are sold in the United States.

Eisma said FTI’s chief auditor, Paul Lee, already inspected a prospective factory site in Subic’s Tipo area on April 30, and will conduct another inspection with other company officials next month to finalize the new business venture.

Meanwhile, Grey Matter Industries Group, which is engaged in the manufacture of PET bottles, plastic films and other plastic products, has already sent the SBMA a letter of intent on April 29, Eisma added.

More than 250 Taiwanese investors attended the April 24-26 Taipei trade roadshow organized by the Philippine Investment Promotion Plan (PIPP) in coordination with the Philippine Trade and Investment Center (PTIC)-Taipei, the commercial affairs section of the Manila Economic and Cultural Office (MECO).

The forum showcased investment and business opportunities for Taiwanese industry players who are repositioning their strategy in light of the recent global trade and economic developments and conflicts between major global markets.

Eisma said that in the Taipei trade roadshow, six other Taiwanese firms expressed interest to locate in the Subic Bay Freeport and the Subic agency is now in touch with them to firm up investment plans here.

Among the prospective investors are Rong Shin Industrial Co., Ltd., which is recognized as the world’s leading manufacturer of lawn and garden power tool muffler system; Catcher Technology Co., Ltd., which is a major supplier of Taiwanese computer giant Wistron; Primax Electronic Ltd., which manufactures computer peripherals and accessories for the Taiwan, China and the United States markets; CDStar Co., Ltd., manufacturer of Skechers, Keen, Clarks, Asics, Salomon and Novi shoes; and Ya Horng Electronics Co., Ltd., producer of electrical appliances and audio-visual electronic products for the US, Hong Kong, Japan, Australia, and France.

Another prospective investor is Sagittarius Sporting Good Co., Ltd., (Xiamen Feipeng Industry Co. Ltd.), a manufacturer of sports and protective equipment, which said it intends to produce fishing and sports inflatable boats in Subic.

Eisma said most of the incoming Taiwanese investors will locate at the Tipo area, which is being developed by the SBMA as a major industrial site. (JRR/MPD-SBMA)

PHOTOS:

[1] SBMA Chairman and Administrator Wilma T. Eisma presents investment and business opportunities in the Subic Bay Freeport during the 2019 Philippine Business Forum in Taipei on March 26.

[2] More than 250 Taiwanese investors attended the Philippine Investment Forum organized by the Philippine Investment Promotion Plan (PIPP) in coordination with the Philippine Trade and Investment Center (PTIC)-Taipei.

[3] SBMA Chairman and Administrator Wilma T. Eisma discusses Subic business opportunities with CEO Eric Lin and COO Adu Wu of Grey Matter Industries Group, a prospective Subic investor, during the 2019 Philippine Business Forum in Taipei.

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SBMA signs business tie-up with Israeli port

The Subic Bay Metropolitan Authority (SBMA) has established an alliance for cooperation with the Port of Eilat in Israel under an agreement signed during the historic four-day visit of President Rodrigo Duterte to the Jewish state.

SBMA Chairman and Administrator Wilma T. Eisma signed the memorandum of agreement with Eilat Port Company Ltd. CEO Gideon Golber on September 4 during a ceremony witnessed by President Duterte and Israeli Prime Minister Benjamin Netanyahu at the King David Hotel in Jerusalem.

Eisma said the agreement for the promotion of an all-water route between Subic and Eilat, which is the only Israeli port on the Red Sea, “will open up doors in the area of port development and innovation between the two countries.”

“It will also serve to increase port traffic and revenue for Subic Bay, since trade routes for the movement of goods between Eilat and Subic will be firmly established,” she added.

Under the agreement, SBMA and Eilat Port Company Ltd. will cooperate to generate new shipping business by promoting the all-water route between Subic and Eilat, as well as to develop links to support trade and investment.

Specifically, the two parties will cooperate in the areas of marketing, data interchange, market studies, modernization and improvements, training, and technological exchange.

Eisma also said that the cooperation alliance with Eilat will further cement Subic’s global standing as a sea port and hub for maritime trade.

According to Philippine Ambassador to Israel Nathaniel Imperial, it was Eilat’s Golber who proposed last April a partnership between Eilat and a Philippine port in order for the latter “to become the bridge of Israel to the rest of the Far East.”

Imperial then referred the offer to the SBMA chief last May, pointing out that the SBMA “can work with the Eilat Port management to learn more about technological innovations of Israel, which ensure the efficient and professional services of the port to its international clients.”

The Port of Eilat, which is located at the northern tip of the Gulf of Aqaba, is mainly used for trading with Far East countries, as it allows vessels from Israel to reach the Indian Ocean without sailing through the Suez Canal. It is also Israel’s gateway to South Africa and Australia.

Imperial said Eilat Port was developed in 1965 and was privatized in 2013, with control going to American businessman Joseph Nakash, owner of Arkia Israeli Airlines, The Sitai boutique hotels, Jordache Enterprises, and Nakash Group of America.

About 60% of Israel’s vehicle imports from Japan, China, India, Thailand and Korea now enter through Eilat Port, he added.

President Duterte, who became the first sitting Philippine president to visit Israel, said the Philippines would seek a “robust relationship” with the Jewish state in areas of economic development, trade and investments, labor, as well as defense, security, and law enforcement.

The Subic-Eilat agreement was among the 11 memoranda of understanding, 3 memoranda of agreement, and 7 letters of intent signed during a forum attended by Duterte in Jerusalem last Tuesday. (HEE/MPD-SBMA)

PHOTO:

SBMA Chairman Wilma T. Eisma (right) and Eilat Port Company CEO Gideon Golber (left) confirm their agreement for port cooperation, as Trade Secretary Ramon M. Lopez looks on approvingly. 

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Central Luzon pushed as ideal site for Taiwan’s southbound trade

The Philippines is now pushing to establish Central Luzon as the ideal destination for Taiwanese investments under Taiwan’s New Southbound Policy that seeks enhanced economic collaboration with countries in Southeast Asia, South Asia and Australasia.

Speaking as a member of the Philippine delegation in the recent Philippine Investment Promotion Plan (PIPP) Investment Roadshow to Taiwan, Subic Bay Metropolitan Authority (SBMA) Administrator Wilma Eisma urged Taiwanese business groups in Taipei and Taichung City to take a closer look at the so-called Central Luzon Manufacturing and Logistics Zone (CMLZ) as a prime investment destination.

She said the CMLZ, which is composed of the Clark Freeport, the Subic Bay Freeport, and the Freeport Area of Bataan, covers a land area of more than 90,000 hectares, has several advantages that make it a haven for businesses, and is managed by devoted agencies that have come together as one unit.

The first advantage of locating in CMLZ, she told the businessmen, is its strategic location. Eisma said the CMLZ “is a critical entry point to the ASEAN region populated by some 650 million people, as well as a natural gateway to East Asian economies such as China, Japan, Hong Kong, Singapore, Taiwan and South Korea.”

Moreover, the CMLZ is at the crossroads of international shipping and air lanes, and accessible to the ASEAN region within three to four hours by plane via the Clark International Airport and four days by ship to and from the Port of Subic.

She added that the three free port zones in the CMLZ are perfect for targeted key industries like electronics, automotive parts and aerospace products for Clark; shipbuilding and maritime industries, including cruise ships for Subic; and high-end garments manufacturing for Bataan.

The Taiwan investment roadshow was organized by the PIPP, an aggrupation of 19 investments agencies that seeks to create quality jobs by attracting high-impact, innovative, and inclusive investments.

The SBMA is one of the seven investment promotion agencies that make up the manufacturing and logistics/IT-BPM cluster of the IPP. (HEE/MPD-SBMA)

Photos from Team Invest Philippines in Taiwan album c/o Ms. Jem Camba

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Chinese firm eager to invest in tourism ventures in Subic

A CHINESE firm is keen on investing in the Philippines, following the thawing of previously icy diplomatic ties between Manila and Beijing.

In a news statement, the Department of Tourism (DOT) said Bai Fan, CFO of the Beijing Tourism Group Co. Ltd. (BTG), expressed the company’s intent to invest in the Subic Bay free-port zone.

“Subic has many beautiful types of scenery and has a lot of potential to the market, and it is also close to Manila. I think this is the best time to invest in the Philippines, since you have good relationship with China,” Fan said. The DOT did not say, however, in what area of the tourism industry BTG intends to sink in its money.

The new Chinese investment was revealed on the heels of an agreement signed between the DOT and the China National Tourism Administration of Beijing to implement a tourism cooperation program from 2017 to 2022. The agreement includes, among others, a framework to encourage investments in tourism infrastructure, and a scheme to increase tourism traffic in both countries.

BTG is a holding firm based in Beijing that operates hotels, restaurants, travel agencies and other tourism-related enterprises, as well as catering, entertainment, department stores and shopping malls, through several subsidiaries.

According to its web site, the company was founded in 1998 and, since then, has grown to be one of China’s top 10 tourism companies, and ranks among the country’s top 500 firms. A budget hotel subsidiary, the Home Inns Group, is listed on the Nasdaq stock exchange in New York.

BTG was among the Chinese companies that met with Tourism Secretary Wanda Corazon T. Teo on Thursday. The DOT chief was part of the official delegation of President Duterte on his first state visit to China. In their meeting, Teo highlighted investment opportunities in the Philippines’s fast-growing tourism sector, especially in the hotel sector. She said the Philippines would also welcome Chinese investments in infrastructure and aviation.

Teo pointed out that the Philippines will need over 100,000 rooms, especially in the four- and five-star categories, as the DOT targets to increase tourist arrivals to 12 million by the end of President Duterte’s term in 2022.

“We encourage you to invest in the Philippines now, as our country and China strengthen our bilateral trade and business relations,” she said, adding that the Philippines “enjoys the highest growth rate in international arrivals in Southeast Asia.”

In the same meeting, Tourism Infrastructure and Enterprise Zone Authority (Tieza) Chief Operating Officer lawyer Guiller Asido discussed fiscal incentives available to tourism zone investors.

“We are offering a tax holiday for six years to investors, as well as tax exemption on equipment that you will bring in,” he said. Formerly known as the Philippine Tourism Authority, Tieza is a unit of the DOT tasked to “develop, manage and supervise tourism-infrastructure projects in the country,” as well as set up tourism economic zones.

The DOT secretary also encouraged the Chinese investors to consider other destinations in the Philippines, such as Samal Island in Davao; Bataan; Bohol; and Siargao in Surigao del Norte.

The Asean is composed of Brunei Darussalam, Myanmar, Cambodia, Indonesia, Lao PDR, Malaysia, Philippines, Singapore, Thailand and Vietnam. The regional group has a free-trade agreement with China, which was signed in November 2002. (Ma. Stella F. Arnaldo, BusinessMirror)

In Photo:
Philippine Tourism Secretary Wanda Corazon T. Teo (center) with members of the Philippine delegation, which includes Tourism Assistant Secretary Rolando Canizal (first from left, standing), and TIEZA’s Guiller Asido (right, seated), with key Chinese investors. (BusinessMirror)


Read More: http://www.businessmirror.com.ph/chinese-firm-eager-to-invest-in-tourism-ventures-in-subic/

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SBMA: 2015 4th successive record year

The Subic Bay Metropolitan Authority (SBMA) has recorded another chart-busting performance in 2015, as the Subic agency continued with its unparalleled growth since 2012.

SBMA Chairman Roberto Garcia, in his 4th State of the Freeport Address (SOFA) here on Wednesday, said the authority managing the country’s premier free port had successfully implemented new revenue initiatives last year, resulting in the biggest revenue and operating income since 1992.

The growth in various key areas, Garcia said, helped the SBMA shatter its own financial charts last year with the gross revenue of P2.75 billion and operating income of P1.48 billion the highest in the 23-year history of SBMA. Adjusted for unrealized foreign exchange losses, net income of the Agency increased by 26 percent.

The impressive financial performance by the SBMA included a 21 percent increase in revenue by the authority’s maritime and logistics business unit, which pulled out a P1.58-billion income last year; a 23-percent increase in committed investments, which grew to P22.8 billion in 2015; and a steady growth in exports, which reached $2.5 billion last year.

Garcia said that some of the major business developments in Subic last year were the launching of a $30-million mill project by the Singapore-based Interflour Group; the start-up of the 150-megawatt solar and wind energy project by Jobin Inc.; and the approval of a $10-million project by Datian Subic Shoes, Inc. for the manufacture of footwear, among others.

Meanwhile, employers in the Subic Bay Freeport generated 4,693 new jobs in 2015, increasing the local workforce to a total of 101,651 at the end of the year. SBMA’s contribution to the National government consisting of BOC, BIR collections and dividends of P19.3 grew by 8 percent over 2014.

Tourism also continued to grow, posting a 14 percent growth in 2015 and registering a total of 7.7 million in visitor arrivals.

With these developments, Garcia said the SBMA will aim this year to create new industrial parks, establish linkages with other global ports to further boost port utilization, increase revenue collections and capital expenditure program, and continue with its good governance initiatives.

“We must leave a legacy, and continue to take advantage of the present favorable economic environment,” Garcia told SBMA employees and members of the Subic Bay Freeport Chamber of Commerce, which sponsored the forum.

“The Philippines is projected to become one of the world’s 16 largest economies within the next 35 years — it is now at Number 39 — so the time for the Philippines is now; the opportunity for Subic is now,” Garcia also said. (HEE/MPD-SBMA)

PHOTO:
SBMA Chairman and Administrator Roberto V. Garcia reaffirms the commitment of the Subic Bay Metropolitan Authority to pursue the sustainable development of the Subic Bay Freeport Zone during his 2015 State of the Freeport Address (SOFA) on March 16 at the Subic Bay Exhibition and Convention Center. The SOFA is an annual event organized by the Subic Bay Freeport Chamber of Commerce. (AMD/MPD-SBMA)

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SBMA, Virginia Port Authority forge alliance of cooperation

WASHINGTON, D.C.- The Subic Bay Metropolitan Authority (SBMA) and Virginia Port Authority (VPA) established an Alliance of Cooperation on 05 March 2016 in a ceremony held at the Virginia International Gateway Terminal in Portsmouth, Virginia.

The Alliance was established by a Memorandum of Understanding signed by Roberto V. Garcia, SBMA Chairman and Administrator; and John F. Reinhart, VPA CEO and Executive Director.

The MOU will provide a framework for information sharing aimed at generating new business by promoting the all-water route between the Subic Bay Freeport and The Port of Virginia. The Alliance will also explore joint marketing efforts; share non-confidential data that may be useful for developing the bilateral relationship of the ports; exchange information resulting from market studies that may be mutually relevant; look at the possibility of developing joint- or cross-training seminars; and transfer technical or technological capabilities.

Chairman Garcia underscored the MOU’s importance to deepening the Philippines-US economic relationship.

“This MOU is landmark and pioneering. It provides an opportunity for Subic Bay Freeport and the Port of Virginia to learn from each other with a view to cooperating on areas of mutual interest and concern in pursuit of economic development. The choice of Subic Bay Freeport also reaffirms the long-standing historical ties and friendship between the Philippines and the United States,” Chairman Garcia said.

Russel J. Held, Vice President for Economic Development of the Virginia Port Authority, expressed optimism that the MOU will allow the two ports to share best practices with each other, and positively impact on jobs creation, tax space, and the economic well-being of the communities outside the gates of the two ports.

“Learning from each other is what the agreement is all about,” said Mr. Held.

The signing ceremony was witnessed by Benjamin Antonio III and Wilfredo Pineda, Members of the SBMA Board of Directors; Marcelino Sanqui, SBMA Senior Deputy Administrator for Operations; Ronnie Yambao, SBMA Deputy Administrator for Business and Investments; Warren Harris, Executive Director of the Virginia Beach Economic Development Office; Scott Hall, Deputy Executive Director; and Ms. Naomi Estaris, COO/VP of Sister Cities Association of Virginia Beach.

In a statement, Philippine Ambassador to the United States Jose L. Cuisia, Jr. also welcomed the signing of the MOU.

“This Alliance clearly reaffirms the dynamic and robust Philippine-US economic partnership. It is our hope that this Alliance of Cooperation between SBMA and VPA can deepen and strengthen not only the relationship of the Subic Bay Freeport and the Port of Virginia, but also trade and investment between the Philippines and the United States,” Ambassador Cuisia said.

At a meeting organized by the Virginia Beach Economic Development Office after the signing ceremony, Chairman Garcia and his delegation also met with Delegate Ron Villanueva, a Filipino-American member of the House of Delegates of the Commonwealth of Virginia, who is the Chairman of the House Committee on Transportation.

The Philippine delegation and Delegate Villanueva had a wide-ranging discussion on issues relating to transportation, shipping, port operations, and opportunities for investments in the Subic Bay Freeport Zone. At the same meeting, the delegation also fielded questions from the heads of a number of Virginia SMEs who are seriously interested in investing in the construction, real estate, and manufacturing sectors.

The SBMA is the Philippine agency that administers and manages the Subic Bay Freeport Zone, including the Subic Bay Freeport. The Port of Subic Bay is strategically located along major shipping routes in the South China Sea, which makes it an ideal transshipment point to and from the trans-Pacific, Japan, Korea, China, and the rest of Southeast Asia. It has a natural deep navigational channel with berthing facilities, and is easily accessible by land to and from Metro Manila as well as North and Central Luzon.

The VPA administers the Port of Virginia, which comprises six general cargo terminals. It is also strategic with deep shipping channels, zero air-draft restrictions, located in the US Mid-Atlantic with access to two-thirds of the US population within a day’s drive or two-day double-stack rail to/from the Midwest, quick access to the open sea and friendly labor relations.

The initial idea for such an Alliance was developed during a visit by a Virginia Beach delegation to SBMA. Olongapo City and Virginia Beach are sister cities.

PHOTOS:

[1] SBMA Chairman and Administrator Roberto V. Garcia and VPA President for Economic Development Russel J. Held exchanged copies of the Memorandum of Understanding establishing an Alliance of Cooperation between SBMA and VPA on 05 March 2016 at the Virginia International Gateway Terminal in Portsmouth, VA, USA.

[2] SBMA Chairman Roberto V. Garcia (2nd from right) exchanges views with Delegate Ron Villanueva, Chairman of the Transportation Committee of the Virginia House of Delegates (leftmost). At right is SBMA Director Benjamin Antonio III.

http://www.philippineembassy-usa.org/news/4907/300/SBMA-VIRGINIA-PORT-AUTHORITY-FORGE-ALLIANCE-OF-COOPERATION/d,phildet/

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Philippines' Subic seen as investment-worthy for Taiwan

Taiwanese businessmen are coming back to Subic Bay again after a previous investment craze in the 1990s, as the Philippines is once more being seen as an ideal springboard for tapping into the promising Southeast Asian market.

With lingering economic challenges in Europe and only moderate growth in the United States and Japan, developing Asian countries have become a major driving force for the global economy in recent years.

In particular, the Association of Southeast Asian Nations (ASEAN) economies seem to have brighter prospects because they are expected to transform into a single market and production base in the near future.

Jeff Lin (林繼武), president of Subic Bay Development Management Center Inc. (SBDMC), a joint venture between the local government authority and Taiwan's United Development Corp. (世華開發), told CNA that the ASEAN market looks promising in terms of its manufacturing sector and trade, thanks to the region's economic ties with China, Japan, South Korea, India, Australia and New Zealand.

Lin suggested that Taiwanese businessmen should take advantage of the Philippines as a springboard to the ASEAN market, which has a population of 640 million and a combined gross domestic product of US$2.4 trillion.

In the Subic Bay Special Economic Zone (SBSEZ), there are no taxes for investors except for a 5 percent tax on gross income, which can help save costs for investors, Lin said. If at least 40 percent of the investors' products are manufactured locally, their products will be duty-free when sold in the ASEAN market, he added.

Roberto Garcia, chairman of the Subic Bay Metropolitan Authority, said in a recent press conference that the Subic Bay Special Economic Zone is expanding its scale to neighboring areas because of an increasing number of investors who need more industrial land.

The first-phase complex of the Subic Bay Gateway Park, operated by SBDMC, has almost reached its full capacity with more than 170 companies currently operating there, of which roughly 30 percent are from Taiwan.

Taiwanese investment in Subic Bay is estimated at US$700 million. (CNA)

(By Emerson Lim and Jeffrey Wu)

PHOTO:
SBDMC headquarters at the Subic Gateway Park

http://focustaiwan.tw/news/aeco/201510040008.aspx

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Subic-Clark’s 11% GDP contribution cited

The Subic Bay Freeport and the Clark Freeport Zone in Pampanga remain to be major contributors to the country’s economic development, as their combined export values last year provided about 11 percent of the country’s gross domestic product (GDP).

In a report to Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia, SBMA acting deputy administrator for business group Ronnie Yambao said that the contribution of the two neighboring special economic zones to the Philippine GDP was between 10 and 11 percent.

“Clark's and Subic’s combined export value last year of US$6 Billion is very significant to the gross regional domestic product (GRDP), which contributed 11 percent to our GDP,” said Yambao.

Yambao added that according to a report from the International Monetary Fund (IMF), the Philippine GDP’s growth rate remained at 6.1 percent as of 2014.

Referring to the updated World Economic Outlook, Yambao also said that the IMF sees the Philippines to still become the fastest-growing economy in Southeast Asia this year after it was able to maintain its 6.1 percent GDP, outpacing Vietnam and Indonesia.

For Subic, Yambao said that among the major growth contributors is the South Korean shipbuilder Hanjin Heavy Industries Corporation (HHIC), which now has 29,000 direct workers.

“For this year, Hanjin is projecting to complete at least 17 ships worth over US$1.6 billion. This would mean hiring additional workers,” Yambao said.

Meanwhile, Yambao also named five new investment projects that the SBMA Board of Directors has approved this year. These include Harbor Star Subic Corp., which proposed a US$4.5-million investment for marine-related ancillary service operation, such as harbor assist, towage, oil spill, and underwater services.

Another project, Nanofixit Ventures Inc., will open a $5.32-million rebottling and packaging company for water-based liquid screen protector, while Subic Superfood Inc. will infuse $920,000 for a food processing plant that will use local pili nuts from the Bicol Region and Himalayan salt for the manufacture of so-called “super foods.” (RAV/MPD-SBMA)

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Central Luzon ‘well-poised’ for Asean economic integration

CITY OF SAN FERNANDO -- Central Luzon is in a strong position to partake in the economic integration of the Association of Southeast Asian Nations (Asean) next year, an official of the Regional Development Council (RDC-3) in Central Luzon assured, citing vigorous economic progress and positive image in the international community.

“What does it mean for us here in Central Luzon? First of all this is not an option for us because we are all involved here and all of us are stakeholders and are bound to feel the impacts of the integration,” RDC-3 chairman and Bulacan Governor Wilhelmino Sy-Alvarado clarified during the RDC-3 Forum on the Asean Economic Community (AEC) held recently at the National Economic and Development Authority (Neda-3) Central Luzon Office, Diosdado Macapagal Government Center, this city.

Alvarado revealed that the RDC-3, in particular, was tasked to determine the opportunities and challenges of establishing relevant programs, which will highlight the strengths of the Central Luzon within the context of the impending Asean economic integration.

“By December next year, the Asean Economic Community or AEC will take full effect, although this is not something new because we know that the initiative for integration was signed way back in 2000 during the Asean 2000 Summit,” he said.

The forum, which concurrently served as the 14th Session of the RDC-3, was participated in by key government and private stakeholders, including lawyer Jonas Leones, Undersecretary, Department of Environment and Natural Resources (DENR); Brenda Joyce Mendoza, Director, Neda Trade and Services and Industry Staff; Alberto Lina, Chairman, Lina Group of Companies; Severino Santos, Director, Neda-3; and other local officials of Central Luzon.

"The forum on Asean Economic Community of the RDC-3 aims to increase the level of awareness of RDC3 members and other stakeholders on AEC, particularly its implications to national and regional economy," said Santos.

Leones stressed the competitive edge of Central Luzon in the Asean economic integration in terms of its strategic location, covering both the Subic Bay Freeport Zone and the Clark Freeport Zone, which has its own international airport.

“Central Luzon has been identified as the new ‘epicenter’ of big investments because of the massive influx of opportunities here, especially in the Subic and Clark. It certainly has a high potential to perform well on the Asean economic integration next year,” Leones said.

Mendoza shared that the AEC offers massive business opportunities that both the public and the private sector must exploit to copiously benefit from its advantages.

"The asean Economic Community is something not to be feared about. AEC can be explored and taken advantage of," urged Mendoza.

Challenges ahead

Central Luzon may be a robust economic player in the international stage, especially in the Asia-Pacific region, but Alvarado said the government still has a long way to go in terms of creating development strategies that will ensure its readiness for AEC implementation.

“Most of us who have been with the RDC can attest that for many years now we have been working towards the realization of some very important critical infrastructures for Central Luzon such as the Clark International Airport, coastal highway that will link Sangley Point in Cavite to the Bataan Special Economic Zone, North Rail or mass transport system linking Metro Manila to the Clark International Airport and the Balog-balog dam to name a few,” cited Alvarado.

Small and Medium Enterprises (SMEs), according to Alvarado, are also expected to significantly gain from the trade and investment opportunities of this new arrangement but there are still some key economic issues that needs to be addressed.

“For example, on the target of eliminating or having zero tariff rates—as early as January 2010, more than 99 percent of tariff lines between ASEAN six member countries have been brought down to zero in line with the goals of ASEAN Free Trade Area or AFTA,” he said adding that ASEAN must work on further eliminating trade barriers and undertaking agreements with important economic powers, including China, India, Japan, South Korea, Australia and New Zealand.

Competitive advantages

Mendoza, nevertheless, mentioned that the country is already "well-poised" to compete with its neighbors in the Southeast Asian region.

"The Philippines has been gaining the confidence of international community as evidenced by the credit rating upgrades given by debt-watchers Moody's Investor Service and Fitch Ratings. This means that we are in a great position in terms of the economy," she said.

The growth from 2010 to 2013, according to Neda, recorded the highest four-year average growth since 1979 and this will ascertain that the Philippines will gain from the AEC.

Meanwhile, Alvarado supported this statement, citing the presence of many Filipinos abroad.

“Our network of Overseas Filipinos stands out as a distinct advantage over Asean counterparts because relatively, most of the Philippines’ work force is proficient in English. Another advantage is that we have the high average growth or Gross Domestic Product in the current decade,” he said.

The Asean integration puts in motion the materialization of the AEC, which envision Southeast Asia as "a single market and production base, a highly competitive economic region, a region of equitable economic development, and a region fully integrated into the global economy."

The Asean is a 10-nation regional bloc that includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. (Ferth Vandensteen Manaysay, Sun Star Pampanga)

http://www.sunstar.com.ph/pampanga/local-news/2014/12/22/central-luzon-well-poised-asean-economic-integration-383323

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Philippines' total approved foreign investments down by 44.4 percent in Q3 2014

MANILA - Total foreign investments (FI) approved in the third quarter of 2014 by the seven investment promotion agencies (IPAs), namely: Board of Investments (BOI), Clark Development Corporation (CDC), Philippine Economic Zone Authority (PEZA), and Subic Bay Metropolitan Authority (SBMA) as well as the Authority of the Freeport Area of Bataan (AFAB), BOI-Autonomous Region of Muslim Mindanao (BOI-ARMM), and Cagayan Economic Zone Authority (CEZA) amounted to P18.3 billion, 44.4 percent lower than the P32.9 billion recorded in the same period last year.

Meanwhile, total approved FI for the first nine months of 2014 reached P91.8 billion, declining by 35.4 percent from the amount recorded last year at P142.1 billion.

The top three prospective investing countries during the quarter include the Netherlands, Japan, and the United States of America (USA). Netherlands topped the list, pledging P4.4 billion or 24.3 percent share, followed by Japan and USA, committing P3.7 billion and P2.8 billion, or 20.1 percent and 15.3 percent of the total approved FI, respectively.

Manufacturing industry contributed the largest amount of committed foreign investments in the third quarter of 2014, with investment pledges recorded at P8.8 billion or 48.0 percent of the total FI. Administrative and support service activities came in second, contributing 20.8 percent or P3.8 billion worth of investment commitments, followed by real estate activities, which accounted for 13.3 percent or P2.4 billion.

Approved investments of foreign and Filipino nationals reached P159.6 billion during the period, declining by 15.7 percent from last year’s P189.3 billion. Filipino nationals continued to dominate the investments approved during the quarter, sharing 88.5 percent or P141.3 billion worth of pledges.

Bulk of the investments are intended to finance activities in manufacturing, contributing P67.6 billion and with a share of 42.4 percent, followed by real estate activities at P31.4 billion or 19.7 percent share, and construction at P24.8 billion or 15.5 percent share.

Total projects of foreign and Filipino investors approved by the seven IPAs in the third quarter of 2014 are expected to generate 54,606 jobs, an increase of 38.9 percent from last year’s projected employment of 39,314 jobs in the same period. Out of these anticipated jobs, 74.3 percent would come from projects with foreign interest. (PIA) 

http://news.pia.gov.ph/article/view/2131418721159/total-approved-foreign-investments-down-by-44-4-percent-in-q3-2014-

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Apple supplier Foxconn mulls a manufacturing facility in PH

Foxconn Technology Group, the world’s largest computer manufacturer and supplier to Apple Inc., is looking a closer look at the Philippines as company officials visited various economic zones in the country.

Amadeo R. Perez Jr., chairman of the Manila Economic and Cultural Office (MECO), told reporters that Foxconn officials came over three months ago and were brought to various ecozones, including the country’s Freeport zones Subic and Clark, and Calabarzon areas such as Batangas, Laguna and Cavite.

“They are looking into several areas and they have lots of considerations, including fung shui,” Perez said. So far, Perez said there has been no word yet from Foxconn.

Government investment promotion agencies Board of Investments and the Philippine Economic Zone Authority started courting this Taiwanese firm in 2012 yet.

Foxconn has been mulling about relocating some of its capacities outside of its production hub in mainland China due to rising wage rate and shortage of available workers and has included the Philippines in its shortlist of countries as investment destination.

The company employs 1.2 million people at its China facilities producing laptops, tables and PCs for the export market. Aside from the rising cost of wage, the lack of available manpower has turned off some of multinational firms, which relocated in China based on these attractions.

Foxconn is a multinational business group anchored by the Hon Hai Precision Industry Co., Ltd., a Republic of China-registered corporation headquartered in Tucheng, Taiwan.

As the world’s largest manufacturer of electronics and computer components, Foxconn mainly manufactures on contract to other companies. Among other things, Foxconn produces the Mac mini, the iPod, the iPad, and the iPhone for Apple Inc.; Intel-branded motherboards for Intel Corp.; various orders for American computer manufacturers Dell and Hewlett-Packard; motherboards for UK computer manufacturer Zoostorm; the PlayStation 2 and PlayStation 3 for Sony; the Wii for Nintendo; the Xbox 360 for Microsoft, cell phones for Motorola, the Amazon Kindle, and Cisco equipment.

It assembles an estimated 40 percent of the smartphones, computers and other electronic gadgets sold around the world. Foxconn’s decisions set standards other manufacturers must compete with.

It has 13 factories in nine Chinese cities employing 1.2 million. Foxconn is the world’s largest maker of electronic components and the largest exporter in Greater China. Foxconn is primarily an original design manufacturer and its clients include major American, European and Japanese electronics and information technology companies. Notable products which the company manufactures include the iPad, iPhone, Kindle, PlayStation 3, Wii and Xbox 360.

Foxconn has been identified by the Global Marketing Intelligence System (GMIS) of the Department of Trade and Industry as a potential investor. Companies targeted under GMIS for investment promotion must have four common characteristics: Mass employers, the technology used in their current production is within the capability of the Philippines and can be serviced by Filipinos; if a potential company is located outside of Asia, that company must have an existing operation in Asia; and if located in the Middle East or in the Americans, they must have operation abroad. (Manila Bulletin)

https://ph.news.yahoo.com/apple-supplier-foxconn-mulls-manufacturing-facility-ph-162738637.html

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US-based “Pusong Pinoy” traders eye business in Subic Freeport

United States (US)-based Filipino entrepreneurs belonging to the Federation of Philippine-American Chambers of Commerce (FPACC) are scouting for trade opportunities in the country of their birth and are considering putting up businesses in the Subic Bay Freeport.

A FPACC delegation of 65 members arrived here on Monday for the Luzon leg of the U.S. Trade and Investment Mission to the Philippines and met with officials of the Subic Bay Metropolitan Authority (SBMA), local industry leaders, and heads of local government units.

The mission, which was scheduled on October 17 to 24, was organized by the Central Luzon Growth Corridor Foundation, Inc. to help promote Central Luzon as an ideal investment destination.

Gus Mercado, head of mission and executive director of FPACC, said the trade mission aims to bridge and facilitate business and cultural ties between business people through the Philippine-American chamber network.

He said that the delegates represent various endeavors and businesses, but all are entrepreneurs in their own right and represent the crème dela crème of the Filipino community in the United States.

He said that the delegation have expressed interest in real estate, eco-tourism, manufacturing, light-industrial machinery, and retirement facility.

“The majority of us here were born in the Philippines, and we have what they call pusong Pinoy,” Mercado clarified.

“Our non-Filipino members of the delegation will understand why although we’ve been away for so long, we still have pusong Pinoy. Deep in our hearts, we are still Filipinos,” Mercado added.

He also noted that despite its conversion into a free port, Subic Bay “is probably the only place in the Philippines where the US traffic laws are still being enforced.”

In the same meeting, SBMA Chief Operating Officer Joven Reyes warmly welcomed the group and briefed them about the free port and the local business climate.

He said that the SBMA was created by virtue of Republic Act 7227 “to promote and develop the Subic Special Economic Zone into a self-sustaining industrial, commercial, financial and investment center.”

He added that with the SBMA’s mandate to generate employment and attract productive foreign investments, the agency has succeeded in turning Subic into a home of almost 1,500 business locators and more than 90,000 skilled workers.

Reyes also informed the visitors that the SBMA has performed well in the past few years, posting a net profit of P1.2 billion last year and increasing its net operating budget by 66 per cent as of August this year.

The event held at the Subic Bay Exhibition and Convention Center also provided an opportunity for members of the FPACC to meet their local counterparts for networking opportunities. Some local companies also put up an exhibit of products during the meeting.

Among those who met with the trade delegates were Olongapo City mayor Rolen Paulino, Zambales provincial administrator Jun Omar Ebdane, representatives of the Subic Bay Freeport Chamber of Commerce and the Olongapo City Chamber of Commerce, and officials of the Department of Trade and Industry-Zambales.

Paulino and Ebdane turned over symbolic keys to Olongapo and Zambales, respectively, to the mission head. (RFD-MPD-SBMA)

PHOTOS:

[1] SBMA Chief Operating Officer Joven Reyes (left) and Atty. Joy Alvarado, head of the SBMA Business Group, exchange views with a member of the US Trade Mission during a networking meeting on October 20 at the Subic Bay Exhibition and Convention Center. (AED)

[1] SBMA Chief Operating Officer Joven Reyes receives a certificate of appreciation from Ethel Reyes- Mercado, honorary Consul General of Texas, USA, during the visit of members of the US Trade Mission on October 20 at the Subic Bay Exhibition and Convention Center. Looking on is Gus Mercado (right), executive director of the Federation of Philippine-American Chambers of Commerce and head of mission. (AED)

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IPAs to set unified investments goal and strengthen referral system

The government’s investment promotion agencies (IPAs) are expected to come up with a unified investment target as they collaborate to further strengthen a referral system to promote each other in their various investment campaigns, including the huge agricultural potential for Bangsamoro provinces.

Trade and Industry Undersecretary Ponciano C. Manalo Jr. told reporters that heads of the various IPAs met recently in Zamboanga City and agreed to jointly promote the country as an investment destination with a single message “Invest Philippines”.

With that, Manalo said the IPAs should have a common investment target noting that the Board of Investments and the Philippine Economic Zone Authority are the ones accounting for the bulk of investments generation.

At present, each IPAs have individual targets which are later on combined but Manalo, as head of the DTI investment promotion group, said the IPAs, can adopt a unified target where there is a specific target for foreign direct investments and total projects approved.

The IPAs are led by the government’s premier investment premier investment promotion agency Board of Investments (BOI). Other IPAs include the Philippine Economic Zone Authority, Subic Bay Metropolitan Authority, Cagayan Economic Zone Authority, Zamboanga Special Economic Zone, Aurora Special Economic Zone, Philippine Retirement Authority, Phividec Industrial Estate, BOI-Autonomous Region of Muslim Mindanao and the Bases Conversion Development Authority.

In 2010, the IPAs had set an investments growth target of 10 percent in 2010 and 15 percent for 2011 to 2012 and 20 percent by 2013 to 2014. Investments generated by the government’s IPAs in 2009 reached P315.28 billion from P473.25 billion in 2008.

The setting of an investments target could help the IPAs measure their performance in light of the good reviews the country has been getting from the international business community.

“We should be running on all four cylinders,” Manalo stressed.

To push for an aggressive investment promotion campaigns, Manalo also urged the iPA members to work together by providing referrals for each other noting that not every IPA can accommodate all the specific needs of investors. There are small IPAs that can host small manufacturing operations.

“I encourage them to work together that even if they have specific mandate they can refer each other for projects that are suitable in another area,” Manalo said.

He cited the case of the recent P9 billion investment of Panhua Group Co. Ltd. in Subic Bay. The Chinese firm plans to build a pre-paint could and metal sheets factory for export and domestic markets.

The Panhua investment was actually an effort of the BOI, which was referred to the more appropriate Subic Bay Metropolitan Authority because Subic can appropriately serve the requirements of this manufacturing firm.

Manalo also cited the Authority of the Freeport Authority of Bataan, which has already an established players of garments and leather goods making it easier in terms of materials sourcing.

In the case of the Bangsamoro, Manalo was positive that once the law is passed, there will be more investments inflow particularly in agriculture in this region

“I am very hopeful, Mindanao is very rich in agriculture and agri processing,” he said.

It is rich in fisheries, rubber, seaweed manufacturing, tuna and sardines processing.

“Once the Bangsamoro is completed with a plebiscite, I am very hopeful for Zamboanga,” he added.

The incentives to be granted by IPAs to investors will depend on the list of economic activities listed under the Investment Priorities Plan (IPP), an annual list of priority projects that are entitled to government incentives.

Manalo further said the 2014 IPP has identified sectors that need reinvestments the most. (Bernie Magkilat, Manila Bulletin)

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