SBMA approves P4.48-billion new investments, P555-million expansion projects in 1st half

The Subic Bay Metropolitan Authority (SBMA) approved new investment projects worth P4.48 billion in the first half of this year, eclipsing by 42% last year’s new investments record of P3.15 billion for the same period.

SBMA Chairman and Administrator Wilma T. Eisma said a total of 77 new investment projects were recorded from January to June 2019, with 41 approvals worth P3.57 billion in the first quarter and 36 projects worth P902.1 million in the second quarter.

In contrast, 45 new investment projects were approved in the Subic Bay Freeport Zone in the first half of 2018, with P1.17 billion worth of projects in January to March and P1.98 billion in April to June.

Meanwhile, the SBMA also green-lighted 21 expansion projects in the first six months this year, generating investment commitments totaling P555.2 million, Eisma said.

These included 9 expansions worth P515.3 million in the first quarter and 12 expansion projects valued at P39.8 million in the second quarter.

The number of expansion projects in Subic increased from 10 in the first half of 2018 to 21 this year, with committed investments growing from P276.2 million in 2018 to P555.2 million in 2019, or a growth of more than 100%.

The continuing entry of investor-companies in Subic, Eisma said, had resulted from the hard work of the agency to draw more business despite stiff global competition for foreign direct investments.

“More investor companies are coming to Subic, but we have to ensure that they get the right environment so that they will continue to bring their business here,” Eisma said in the Subic Labor Congress held here recently.

“The SBMA is working very hard to ensure jobs for local workers, but I challenge you to have the necessary skills,” she also told participants in the assembly.

Figures from the SBMA Business and Investment Group indicated that the 77 new investment projects in the first half of 2019 gave a projected employment total of 2,003, while expansion projects yielded 1,670 new jobs for a total of 3,673.

Following the established trend, leisure projects comprised most of the new investments with 15 approvals in the first quarter and 14 in the second quarter for a total of 29 projects.

Projects under general business had the second most approvals at 16, followed by logistics projects at 15, maritime and manufacturing at 11, and information and communications technology at 6.

Among the new projects, the five biggest in terms of committed investments are those of Sinoinvest Resources, Inc., which pledged P1.2 billion for a leisure project; Smart & Plan Subic Logistics and Development Corp. with P1 billion for another leisure venture; Arjuna Sand Trading, Inc., with P628.9 million for a logistics project; Worldwide Grace, Inc., with P515 million for general business; and Taiyo Subic Philippines Corp., with P392.5 million for a manufacturing project.

For the expansion projects, Datian Subic Shoes, Inc. has the biggest investment commitment at P316.6 million, while servo-motor manufacturer Sanyo Denki Phils., Inc. pledged the second biggest at P119.6 million.

Datian Subic Shoes, Inc.’s expansion project is also expected to turn out the most number of new jobs at 1,500.

The next biggest projection came from Sinoinvest Resources with 500 new jobs; Juan Fong Industrial Corp., 305; and Philippines Easepal Technology with 270. (HEE/MPD-SBMA)

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Subic 1st sem investment pledges hit P2.85 billion

The Subic Bay Metropolitan Authority (SBMA) approved 45 new investment projects worth a total of P2.85 billion from January to June this year, bringing the cumulative investment commitments here to P499.6 billion.

SBMA Chairman and Administrator Wilma T. Eisma said the total investment pledges in the first semester of 2018 was 290 percent higher than the P731 million generated in the same period last year.

The first semester projects are also expected to generate 2,439 new jobs in the Subic Bay Freeport Zone, she added.

“This is a significant harvest of business commitments and opportunities for Subic, and it only goes to show that this free port remains to be one of the strongest economic drivers in the country today,” Eisma said.

“It also goes to show that businesses continue to grow in Subic, because 13 business locators here have proposed expansion projects in the first 6 months,” she added.

The expansion projects are worth a total of P276 million and are projected to generate 286 new jobs.

According to Kenneth Rementilla, SBMA deputy administrator for business and investment, the biggest investment commitment the SBMA signed up in the first semester was made by Citic Hotels and Leisures Corporation, a brand that carries the world-renowned five-star hotel chain Wyndham Hotel.

The Citic proposal was worth P1.34 billion and will generate 2,000 new jobs.

The second biggest new project was proposed by Air Juan Aviation for the operation of air transportation services and charter passenger flights to various points in the country. The firm will invest P671.47 million and hire 10 workers.

GGG Technology Inc., meanwhile, proposed a P200-million project that will involve an initial workforce of 110 to engage in manufacturing, assembly and refurbishing of high-technology consumer electronics.

The fourth largest project was that of First Aviation Academy Inc., an operator of aviation-related training and skills assessment center. It will offer various aviation-related courses to airline and non-airline employees and individuals, infuse P156.6 million into the business, and hire 28 workers.

The fifth biggest proposal came from Vortex Oil and Gas Solutions Corp., which will operate an office for the import and export, trading, selling and distribution of petroleum products with a committed investment of P100 million and a workforce of five employees.

Chairman Eisma said the Subic agency hopes to create more business opportunities here, as it arranges cooperation programs with neighboring communities to host additional investment projects.

As of June this year, the Subic Bay Freeport Zone hosts a total of 1,596 business locators that employ a total workforce of 133,940. (RFD/MPD-SBMA)

PHOTOS:

[1] SBMA Chairman and Administrator Wilma T. Eisma signs a memorandum of agreement with China National Heavy Machinery Corp. (CNHMC) Chairman and President Xiao Ping (2nd, left), CNHMC Vice President Zhang Fei, and Hermosa, Bataan Mayor Jopet Inton (right) for the development of a techno-industrial facility at the Subic Bay Freeport. (AMD/MPD-SBMA)

[2] Citic President Chi Jian Li and SBMA Chairman and Administrator Wilma T. Eisma sign an investment contract for the development of a 5-star hotel in the Subic Bay Freeport. (AMD/MPD-SBMA)

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SBMA bullish on 2018 investments

The Subic Bay Metropolitan Authority (SBMA) is optimistic that renewed investor confidence in the Subic Bay Freeport would sustain an upbeat mood here in what has been hailed last year as the fastest growing free trade zone in Asia.

According to SBMA Chairman and Administrator Wilma T. Eisma, the Subic agency expects more investment projects in 2018 to top the P2.54 billion in total committed investments generated here in 2017.

“We recorded a total of 176 new investment proposals and 63 expansion projects proposed by existing investor-companies last year, but we anticipate more investments this year because we’re opening new areas for development and, at the same time, putting more value into existing facilities so that we could attract more takers,” Eisma said.

According to figures from the SBMA Business and Investment Group (SBMA-BIG), the Subic agency processed 56 new investment projects in the first quarter of 2017, 27 in the second quarter, 49 in the third, and 44 in the last quarter to generate a total of P1,448,358,341 in committed investments last year.

The 2017 investment projects also yielded a projected employment total of 2,667.

On the other hand, the 63 expansion projects proposed last year by existing firms here brought a total of P1,088,313,616 in new investments and a total of 821 additional jobs.

With these, the SBMA-BIG processed last year a total of 1,221 certificates of registration (CRs) and certificates of registration and tax exemption (CRTEs), compared to its target of 806 certificates. The certificates allowed holders to operate as business entities inside the Subic Bay Freeport Zone.

Eisma also pointed out that the SBMA Business and Investment Group as of November 2017 reported actual revenue generated at P1.23 billion, which was P353 million more than the target of P913 million for last year.

“Compared to the actual revenue of P1.15 billion in 2016, the P1.23 billion that SBMA-BIG earned last year was higher by P83.2 million, or 7.23 percent,” Eisma added.

The SBMA official also said that the agency should have recorded much bigger investment commitments and projected employment had the Dynamic Konstruk project at the Redondo Peninsula pushed through.

“That alone would have brought in P40 billion in investments and 50,000 new jobs, but we revoked the lease and development agreement after the project proponent failed to meet its obligations,” Eisma added.

She said, however, that the Subic agency will open up the Redondo Peninsula for development upon the completion of a new master plan for the area. The SBMA has identified some 3,000 hectares at Redondo, which would be ideal for projects in port, fuel depot, wind and solar energy generation, and industrial estate operations.

“We’re also seeking to invest in new road networks to increase the value of idle land and facilities within the Freeport and to move away from the ‘as-is-where-is’ policy that leaves investors to develop the area they were leasing,” Eisma revealed.

She added that the SBMA is also looking into the proposed measure to extend the validity of business registration from one to three years to promote customer satisfaction, improve business operations in the Subic Freeport, and attract more investments.

The Subic Bay Freeport is now home to more than 1,500 investor-companies with more than $11 billion in total cumulative investments and employing a total workforce of more than 124,000 employees. (HEE/MPD-SBMA)

PHOTO:

SBMA Chairman and Administrator Wilma T. Eisma discusses business prospects in the Subic Bay Freeport with officials of the Subic Bay Freeport Chamber of Commerce on Wednesday.

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SBMA keeps upbeat mood in 1st half

Good news kept coming out of the Subic Bay Freeport in the first half of this year, as the Subic Bay Metropolitan Authority reported continuing growth in revenue, dividends, investments, exports and tourism.

In a report to President Rodrigo Duterte, who is set to make his first State of the Nation Address on July 24, the SBMA indicated increases in all aspects of its performance from January to May this year, said SBMA Administrator Wilma Eisma.

She said that in terms of the agency’s financial performance, it recorded a 7.7 percent growth in revenue from a total of P1.16 billion in the first five months last year to P1.25 billion in January-May 2017, and a 3.4 percent increase in operating income for the same period.

“But the most revealing item here is SBMA’s net income which went up by more than 126 percent, because from the P106.27 million that was recorded in January-May 2016, we’re now at P240.21 million in just the first five months this year,” Eisma said.

“Apparently—and this cannot be denied—the SBMA has continued well in its growth path in the last few years and we are actually breaking old records here,” she added.

Eisma also said that because of the upsurge in its financial performance, the SBMA has managed to contribute bigger shares to the government than ever before.

This includes a 30.58 percent increase in the revenue shares to local government units that went from P115.22 million in the first half last year to P150.46 million this year; and a 30.42 percent increase in the government’s 3% share from the gross income earned in the Subic Bay Freeport, which rose from P178.37 million in January-May 2016 to P232.63 million in the same period in 2017.

Still, the dividends paid by the SBMA to the national government through the Bureau of Treasury, Eisma added, reached a huge 352.7 percent increase, as actual remittances grew from P145.91 million to P660.69 million.

Eisma said the favorable financial picture in Subic also extended to new investment commitments, which surged by 642 percent from P5.6 billion in January to May 2016, to P40.55 billion in January-May 2017. Likewise, the number of new business locators grew by 58, bringing the total number of Subic-registered businesses to 1,527, while expansion projects of existing locators jumped by 85 percent, or from 13 last year to 24 this year.

“The huge increase in new investment commitments is due primarily to the approval of the investment project of Dynamic Konstruk International Eco Builders Corp. (DKIEBC), which amounts to P39.92 billion,” Eisma explained.

DKIEBC will engage in general construction, renewable energy and industrial hub development at the Rodondo Peninsula, with projected employment ranging from a minimum of 10,000 to a maximum of 50,000.

Eisma said other major business developments in Subic this year included the soft opening of Datian Subic Corp.’s shoe factory, which now employs 1,000 workers; the ground-breaking of Toyota Subic, Inc.’s P150-million multi-level showroom and service center; the start of Teekay Swan’s and JOVO’s ship-to-ship transfer operations with an expected annual port revenue of P200 million; and the start of DM Leisure Corp.’s P4.6-billion golf course and leisure complex project.

Meanwhile, the SBMA also gave positive reports in tourism, with a 1 percent increase in visitor arrivals and a 3 percent growth in actual revenues that stood at P10.54 million in January-May 2017.

Relative to tourism, Eisma also reported that the Subic Bay Freeport became the first free port zone in the country to have declared non-smoking zones in compliance with President Duterte’s EO 26 that called for the establishment of smoke-free environments in public and enclosed places. (HEE/MPD-SBMA)

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SBMA okays US$798-M solar farm and industrial city project

More manufacturing companies and light to heavy industries are expected to locate in this premier Freeport, as the Subic Bay Metropolitan Authority (SBMA) approved the development of a 982-hectare industrial estate at Subic’s Redondo Peninsula.

SBMA Chairman Martin B. Diño and SBMA Administrator Wilma T. Eisma announced the approval of the US$798-milion project proposed by Dynamic Konstruct International ECO Builders Corp. (DKIEBC), a duly-registered enterprise inside the Subic Bay Freeport Zone.

The proposed project site for the solar farm and industrial city at the Redondo Peninsula

“This project is our answer to the inquiry of investors looking for thousands of hectares of flat land for manufacturing and light to heavy industries inside the Subic Bay Freeport Zone,” Chairman Diño said during the State of the Freeport Address (SOFA) hosted by the Subic Bay Freeport Chamber of Commerce (SBFCC) last Monday.

He added that the SBMA has been conferring with nearby local government units to identify more areas suitable for the development of industrial estates that will be under the Subic Bay Freeport’s tax- and duty-free regime.

Administrator Eisma meanwhile pointed out that the proposed solar farm and industrial city, when fully realized, will generate about 50,000 new jobs.

“When the Subic Naval Base closed down in 1992, we were all so depressed to be losing the 35,000 jobs generated by the US Navy. But under the SBMA we have long surpassed those numbers— as of February 2017 our active workforce within the Freeport is 115,272—and we keep on working to bring about more employment,” she added.

The SBMA officials also clarified that out of the $798-million investment commitment, the DKIEBC will spend about $300 million for the proposed 402-hectare solar farm, which is designed to produce 200 megawatts of green energy to primarily supply the proposed 580-hectare industrial city.

The industrial city project will include commercial buildings, factories, warehouses, utilities for water and electricity, fire and law enforcement facilities, and sanitation and landfill facilities.

According to DKIEBC, the solar farm shall primarily benefit the investors and locators of the industrial city with green and low-cost energy supply and reduce the risk of exposure from the spot market. (NBM/MPD-SBMA)

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SBMA signs in new investments worth $14.4 million

The Subic Bay Metropolitan Authority (SBMA) on Wednesday has approved 43 contracts of new investment commitments, as well as renewal of leases for investor-companies, worth some $14.4 million (P720 M).

“SBMA is on its way to another record-breaking year in terms of investment generation,” SBMA OIC Administrator Randy Escolango said during a mass contract-signing ceremony held at the Subic Bay Exhibition and Convention Center.

Escolango added that since the year 2012, SBMA has also sustained record revenue collections that saw the agency rise from a bleeding agency to become a top contributor to the national coffers among Government Owned & Controlled Corporations (OGCC), with accumulated funds of some P4B in the bank.

The new contracts and renewals involved 12 projects under the general business and investment department; two for information and communications technology; 18 for leisure; seven for logistics; and another two for manufacturing and maritime.

The new investments, Escolango said, manifest the continuing confidence of the investor community in the Subic Bay Freeport, pointing out that the SBMA has already approved a total of P111.5-billion worth of investments since January until September this year.

“With a 7% growth in the country’s gross domestic product (GDP) forecast for next year, and with Central Luzon contributing about 10-12% of the GDP, it cannot be denied that the Subic Bay Freeport Zone contributes significantly to national economic growth,” Escolango also said.

According to Ronnie Yambao, OIC Deputy Administrator for the SBMA Business Group, the projected investments to be generated under the 43 new contracts totaled $14,409,443. This is on top of the $728.6 million total that the said firms have initially committed to invest in this free port.

Leading the list of new companies with significant committed investments are Broadband Broadcast Services, Pte. Ltd., with P220 million for a cable and pay television services venture that would employ 88 personnel; and Autokid Subic Trading Corp., which has set aside P25 million for a project that would employ 25 workers.

Meanwhile, companies with substantial commitments for expansion projects include Subic Horizon Hotel, which has set aside P60 million for additional hotel facilities; Royal Duty Free Shops, which allotted P50 million for the renovation of its main store in this free port; and GigaMare Inc., with $204,500 worth of additional investments for its maritime training facility here.

It was the first time in almost six years that the SBMA again conducted a mass contract-signing ceremony for Subic-registered companies.

Rose Baldeo, president of Global Terminals & Development Inc. and chairperson of the Subic Bay Freeport Chamber of Commerce, said the occasion “is a sign that the SBMA is moving forward” despite a recent leadership row in the agency that has reportedly stalled some investor-related business operations.

In response, Yambao assured the business locators here that the SBMA is ready to provide them with “fast, flexible and friendly” service.

SBMA Sr. Deputy Administrator for Support Services Ramon Agregado also assured the agency's unwavering support to locators and its commitment to transparency, citing the recent launch of the one-stop shop and SBMA's continuous ISO and management reforms. (HEE/NBM/MPD-SBMA)

PHOTOS:
[1] SBMA OIC Administrator Randy Escolango (left) congratulates GigaMare President & CEO Jari Ullakonoja after signing a contract for business expansion during a mass contract-signing ceremony for Subic Freeport investors on Wednesday. (AMD/MPD-SBMA)

[2] SBMA OIC Administrator Randy Escolango (left) signs the contract with an official of Triboa Medtech, Inc., which renewed its lease contract with the SBMA during a mass contract-signing ceremony for Subic Freeport investors on Wednesday. (AMD/MPD-SBMA)

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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 earned P1.07 billion in 2013

The Subic Bay Metropolitan Authority (SBMA), which manages the Subic Bay Freeport Zone, continues to improve its financial performance, keeping its financial books in the black for the second year straight, recording more than P1 billion in net income, and increasing the level of investments by eightfold last year.

In a preliminary accomplishment report released last week, the agency said that as of November 2013, it has raked in a total of P1.85 billion in revenue, which represents a 25-percent increase over the P1.48-billion total recorded in November 2012.

This, minus expenses and taxes, left the SBMA with P1.078 billion in net income, a 100-percent increase over the P538-million net income in November 2012 that came after a P1.2-billion loss in 2011.

SBMA Chairman Roberto Garcia said his administration delivered the financial turnaround beginning 2012 when it drastically reduced operating expenses that resulted in a 91-percent increase in earnings before interest, taxes and depreciation.

“2013 was another banner year for the SBMA—particularly as to financial performance, investment promotion and other key performance areas,” the SBMA report said.

“We are pleased to report that based on the numbers as of November 2013 and as projected, the financial performance of the SBMA continued to improve substantially and investments significantly exceeded 2012 levels,” the report added.

The SBMA added in its report that its actual 2013 revenue and net income broke the agency’s all-time record because figures posted as of November 2013 “are actually higher than levels for the entire year of 2012.”

The report said the administration’s sound fiscal management was further proven by the fact that the agency paid all three foreign loan amortizations for 2013 and managed to secure approval by the Bangko Sentral ng Pilipinas last December 16 for the restructuring of SBMA’s $27-million loan.

The restructuring is expected to reduce interest expense and allow the agency to invest in badly needed infrastructure, thus strengthening further the fiscal position of the Subic authority.

“These strides in the financial stability and viability of SBMA complements the substantial 8.9 percent increase in Bureau of Internal Revenue collections from roughly P1.278 billion in 2012 to approximately P1.392 billion in 2013, and the country-wide best Bureau of Customs collection of approximately P10.840 billion in 2013, a staggering 71-percent increase from roughly P6.329 billion in 2012,” the SBMA said.

Meanwhile, in terms of investment promotion the SBMA reported that its actual performance has exceeded 2013 projections.

“By the end of 2012, the agency predicted that investment promotion in 2013 would increase fivefold. The agency did not increase investments in the Subic Bay Freeport Zone fivefold in 2013—it increased investments eightfold,” the SBMA said in its report.

It added that from the P3-billion year-end record in 2012, fresh investment commitments in tourism, export industries and other businesses increased to more than P24 billion by the end of the third quarter of 2013.

To further enhance investment promotion and revenue generation in the Subic Bay Freeport, the SBMA also said it has negotiated for the expansion of the free port in neighboring communities.

The additional areas for development included 650 hectares in the municipality of Subic, which is ideal for shipbuilding and ship repair, and 10,000 hectares in San Antonio, Zambales, which is ideal for tourism and resort development. (Henry Empeño, Business Mirror)

http://businessmirror.com.ph/index.php/en/news/economy/26361-sbma-earned-p1-07-billion-in-2013

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More office, residential dev’t seen in Clark, Subic

MANILA - Development of more office spaces and residential properties are seen in Clark and Subic with the upcoming investments and expansion of manufacturing and business process outsourcing (BPO) firms in these areas which in turn would drive higher demand, property consultancy firm CBRE Philippines said.

CBRE Philippines said that due to infrastructure developments, businesses have started to expand from Metro Manila to peripheries, making Central Luzon a major investment destination.

With increased economic activity seen in the areas of Clark in Pampanga and Subic in Zambales, in particular, more office spaces and residential properties are also expected to be developed there.

The firm noted that new areas of investments for the manufacturing sector have been opened in the two areas due to the tensions between Japan, Taiwan and China amid territorial disputes, as well as the continuous development of infrastructure between the freeport zones there.

It said renewed growth in the manufacturing industry was seen with foreign firms choosing to locate in the Clark and Subic Freeport zones.

Apart from manufacturing, growth in the BPO industry in the two areas has also been observed.

With the Philippine Economic Zone Authority (PEZA) removing the fiscal incentives for new developers of information technology (IT) parks in Metro Manila and in Cebu, CBRE Philippines said Metro Clark remains an attractive area for new IT facilities.

“The PEZA resolution has emphasized Metro Clark as a high potential investment destination,” it said.

As new locators and existing BPO firms expand in these areas, more developments are likewise expected.

“With the entrance of new locators and expansion of previous tenants in the BPO industry, the real estate office segment is seen to expand in the coming years,” CBRE Philippines said.

As more investments are made in these areas, expatriates would also demand for quality residential developments.

“Residential demand is seen to grow with the upcoming investments and expansion,” it said.

“Vertical residential developments are now seen rising in the area as developers try to maximize their investment on land,” it said further. (Louella D. Desiderio, Philippine Star)

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$70m pledged to Subic Bay Freeport in 2012

The Subic Bay Freeport recorded $70 million in committed investments in 2012 with a total of 351 new projects, raising its total cumulative investments since 1992 to $7.9 billion, Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia said in a recent speech.

In contrast, Subic’s net committed investments in 2011 only reached $51 million, Garcia said.

In 2012 it recorded a freight-on-board (FOB) value of $1.927 billion, or a 133-percent increase over the 2011 figure of $0.826 billion.

The biggest exporters in 2012 were South Korean shipbuilder Hanjin Heavy Industries Corp.-Phils. with $1.1 billion, Japanese precision motor manufacturer Sanyo Denki with $0.144 billion and Japanese wood products specialist Juken Sangyo with $0.083 billion.

Garcia also announced positive figures in employment generation, with a total of 89,104 jobs created in 2012, compared with 88,957 in 2011. Most of the new jobs were in the services sector with 42.64 percent, and shipbuilding and marine-related sector with 30.61 percent.

The Subic free port remitted a total of P7.615 billion last year, of which P6.329 billion was collected by the Bureau of Customs, and P1.286 billion by the Bureau of Internal Revenue.

The SBMA recorded last year a 170-percent increase in net income, with P811 million, the highest profit the agency had made in its 20-year history. This also allowed SBMA to increase its net operating profit by 91 percent last year, or from P328 million in 2011 to P628 million in 2012.

In his speech, Garcia outlined a six-point strategic plan to fully turn the agency’s direction toward “building the new Subic.”

He said the plan calls for the SBMA, as manager of the Subic Bay Freeport, to maximize the land-use potentials of the free port; aggressively pursue the use of Subic as alternate port to decongest Manila; develop the airport for general aviation, aircraft repair, jet charters and other allied aviation activities; fully exploit tourism potentials by creating new attractions and destinations, promoting MICE, sports and theme parks to attract more tourists; invest in new equipment and infrastructure needed to support the SBMA’s strategic initiatives; and improve the agency’s financial performance to provide funds for the strategic plan.

Garcia added that the SBMA expects to further develop the tourism industry here this year, since most of the projects proposed for implementation in 2013 are tourism-related.

He said the free port, and the entire province of Zambales in general, was identified by the Department of Tourism in December last year as one of the top destinations in the country because of the availability of quality-standard tourist facilities in the area and the high volume of arrivals among local and foreign tourists.

The positive developments in the tourism sector, Garcia added, led to a 513-percent increase in the number of leisure-related new and expansion projects in 2012, the same year when the Subic Bay Freeport was cited by DOT-Region III as “Premier Convention Capital of Central Luzon.”

He reported that in order to maximize the land-use potentials of the Subic Freeport, the SBMA is expanding the Subic territory at the Redondo Peninsula to accommodate new shipbuilders, as well as in Hermosa, Bataan, for ecotourism projects.

Garcia said that because of the SBMA’s aggressive marketing of the Subic Bay International Airport, Astro Air International Inc. will open this June the Taiwan-Subic-Taiwan and Subic-Boracay-Subic commercial routes.

Aiming to duplicate its good financial performance last year, the SBMA is set to undertake more necessary measures to ensure profitability and sustainable operations.

These measures include creation of a joint SBMA-BOC Technical Working Group to more effectively combat smuggling; streamlining of business processes to reduce requirements and improve delivery of services; amending existing agreements with other agencies or implementation of new agreements; and enhancing safety culture through community watch campaign and installation of law-enforcement surveillance and security systems. (Henry Empeño, BusinessMirror)

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SBMA approves US$57.74-M new investment projects

The Subic Bay Metropolitan Authority (SBMA) recently approved new investment projects worth a total of $57.74 million, as this free port continues to beat the odds of the global economic downturn and attract fresh capital infusion from both foreign and Filipino investors.

In ceremonies at the conference hall of the Subic Bay Development and Management Corp. on Wednesday, SBMA chairman Feliciano Salonga and SBMA administrator Armand Arreza formally signed in 17 new projects in four different industry sectors here.

These included six new projects in leisure industry worth a total of $ 53.59 million, three in manufacturing and maritime with total investments of $1.3 million, three in general business at a total of $266,274, and five in logistics with a total of $2.57 million.

According to Arreza, the latest additions to Subic’s growing business community “only proves the resiliency of the Subic Bay Freeport in attracting new investors despite the global economic crisis.”

He added that as of August this year, 65 new accounts have been added by the agency to the list of investor firms here that totaled 948 at the end of 2008.

Arreza also said that most of the 17 new investment contracts were signed by new business locators, while a few were by existing Subic firms that opted to expand operations.

The biggest investment commitments in this latest batch of approved projects is the P2.5-billion (about $50 million) commitment by Ocean Nine Philkor, Inc., a South Korean firm involved in the development and operation of hotels, casinos and resorts.

The firm, under its short-term plan, will be renovating a hotel complex in Subic’s Cubi area to start its hotel and casino operation by January 2010, Ocean Nine manager Charles Kim said during the contract-signing ceremony.

The second biggest project in this batch is the P70-million construction of a four-story hotel and expansion of a dining facility by Innasia Corp., which operates Courtyard Inn in this free port. This is followed by the P50-million expansion of Puregold Duty Free (Subic) Corp., and the $1-million project of Lionair Subic Philippines, Inc. for the servicing and maintenance of fixed- and rotary-wing aircraft here.

The new investors whose project proposals were approved by the SBMA under the leisure sector are: Aggressive North Developers, Inc., with P30 million for hotel and restaurant operation; Goltongne Subic, Corp., $368,333 for a restaurant and gift shop; Innasia, P70 million; LG Digital Plaza, Inc., P11.25 million for an authentic Ilonggo restaurant, wholesale and retail operations, and import/export services; Ocean Nine, P2.5 billion; and Puregold Duty Free, P50 million.

Under the manufacturing and maritime sector, the new projects are: Consummare, Inc., with $562,478 for the production of specialty wood products; Pacific Metal Works Corp., for steel fabrication; and Shang Min Construction Corp., $580,000 for trading of construction-related materials and equipment.

Under general business, the new locators are: Golden AI Trucking, with committed investments of $215,074; I Will Communicate, Inc., $30,000; and M&M Subic Bay Development Corp., $21,200.

Meanwhile, five new investments were approved under the logistics sector: Food Entrepreneur and Exporters of the Phil., with $470,000 for trading in grains and meat products; Lionair Subic, $1 million; Omni Aviation Corp., $700,000; Solutions Advancing Global Enterprise International Import-Export Corp., $300,000; and Subic Bay Merlion Trading, Inc., with P5 million for the transshipment of wines and liquors.

In the same occasion, SBMA Chairman Feliciano Salonga thanked the new business locators “for having confidence in the Subic Bay Freeport”, and vowed the agency’s full support and cooperation. (SBMA Corporate Communications)

PHOTO:
SBMA Chairman Feliciano Salonga (3rd from right, second row) and SBMA Administrator Armand Arreza (7th from left, second row) join representatives of new investor-companies at the Subic Bay Freeport Zone after a mass contract-signing on Wednesday.

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SBMA says over 85,000 workers now in Freeport

Subic Bay Metropolitan Authority (SBMA) officials said that more than 85,200 workers are now employed in different companies in this Freeport.

SBMA Administrator Armand Arreza said the continued confidence by foreign investors, particularly Korean companies, in the business competitiveness in the Freeport led to the doubling in the number of workers here in just two years.

Arreza said the number of workers could easily jump to double the current figure once projects proposed by several Korean firms are realized in the next two years.

He cited in particular the planned construction of a $1-billion resort complex here by M Castle Inc., a Korean developer of environment- friendly luxury resorts, and the scheduled $86-million project by Hanjin Heavy Industries and Construction Corp. to locally produce ship components.

“These will be major employment-boosters ,” Arreza said.

He said aside from the jobs that would be directly created by these projects, there will be thousands of employment opportunities to be generated downstream.

Reports indicated earlier that M Castle Inc. will invest in a 615-hectare property in Subic, aside from another property development project in Palawan to be undertaken with the Philippine Economic Zone Authority (PEZA).

Around 7,000 direct and 16,000 indirect jobs are said to be made available when the construction of the billion-dollar luxury resort starts, according to M Castle chairman Sang Soo Shin.

Arreza said the planned investment “would not only boost the tourism market in the country, but would also up the ante for Subic in terms of income.”

The M Castle proposal reportedly includes the development of beach and forest condominiums, a beach hotel, a casino-hotel and villas with 2,400 rooms, a 36-hole golf course, a marina club for 50 yachts, a medical center for oriental and western medicine, a water park, a shopping mall, and an English-language learning house.

The SBMA administrator said that from the planned resort complex in Subic, the local production by Hanjin of ship components will increase Subic’s active workforce by 4,000 positions.

He said the projected increase in Hanjin labor requirements was announced by company officials when they met with President Arroyo in Korea recently. (Ric Sapnu, PhilStar)

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Koreans plan $1-b, 615-hectare resort complex in Subic, Zambales

JEJU ISLAND, South Korea — President Arroyo has secured a commitment from a Korean company to invest $1 billion in a resort complex in Subic, Zambales, that is expected to create 144,000 jobs during its construction.

Mrs. Arroyo met representatives from M Castle Inc., a Korean developer of environment- friendly luxury resorts, at the Shilla Hotel Tuesday afternoon to discuss the company’s plan to develop a 615-hectare property in Subic.

M Castle chairman Sang Soo Shin told Mrs. Arroyo that the company also planned to develop a piece of property in Palawan with the help of the Philippine Economic Zone Authority.

“I welcome M Castle’s potential investments in the Philippines and I am glad that it considered the Philippines, specifically Subic and Palawan, as the choice destinations for your business projects,” Mrs. Arroyo said.

The resort complex in Subic is expected to generate 7,000 direct and 16,000 indirect jobs once it starts operations.

Earlier, Mrs. Arroyo received assurances from Hanjin Heavy Industries and Construction Co. Inc. that it would start producing ship components worth $29 million at its Subic shipyard starting in September.

The President agreed to a request from Hanjin President Nam Ho Cho for discounted power rates for its shipyards in Subic and Misamis Oriental for the next 10 years.

Cho called on the President Monday at the Shilla Hotel with former Hanjin Philippines president Jeong Sup Shim.

The Subic Bay Metropolitan Authority has approved in principle the business plan that M Castle submitted on March 10.

In that plan, M Castle said the Subic-based facilities would include beach and forest condominiums, a beach hotel, and a casino hotel and villas with 2,400 rooms; a 36-hole golf course; a Marina club for 50 yachts; a medical center for oriental and western medicine; a water park; a shopping mall, and an academy house for English-language training.

The membership fees would range from $25,000 to $700,000, would assure clients 30 days of time share per year.

The Philippines has been experiencing a boom in the hotel and tourism industry, with a total of 1,231 additional rooms being opened during the first quarter at a cost of more than P8 billion.

Tourist arrivals grew 10.33 percent to 1.3 million in the same period, and of which Subic accounted for 7 percent.

Meanwhile, Mrs. Arroyo left Tuesday for Moscow, where she is to meet representatives from the Russian travel industry and members of the Filipino community.

From Moscow, she will proceed to St. Petersburg where she will deliver a talk on the lessons learned from the global economic crisis during the two-day St. Petersburg Economic Forum.

Mrs. Arroyo will also meet Russian President Dmitri Medvedev before returning to Manila on Saturday. [Joyce Pangco Pañares, Manila Standard Today (Via PLDT)]

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SBMA signs in 185 new investments, creates 13,321 more jobs in 2008

Investment and employment figures in this free port continued to soar in 2008 despite a slowing global economy, as the Subic Bay Metropolitan Authority (SBMA) approved a total of 185 new investment projects last year and increased the Subic workforce by 13,321 more workers.

Yearend reports from the SBMA Business Group indicated that investment projects grew by six percent last year, or from a total of 175 in 2007 to 185 in 2008. This brought a total of 1,147 approved projects in Subic as of the yearend with cumulative committed investments worth $5.75 billion.

The new projects, worth $249 million in committed investments, were mostly in the tourism, manufacturing and services sectors, which "historically employed the most number of workers in Subic," said SBMA Administrator Armand Arreza.

He said the fresh investments are projected to add 6,260 more jobs to Subic's active workforce that, as of December 2008, already stood at a total of 87,502.

Arreza added that while last year's total value of investments significantly dropped from Subic's all-time records of $1.71 billion in 2007 and $1.44 billion in 2006, "Subic continued to attract some big-ticket projects, while remaining one of the biggest employers in the whole Central Luzon region."

Citing data from the SBMA Business Group, Arreza said the top 10 investments in 2008 was headlined by Subic Neocove Corp., a Korean-led consortium that pledged $175 million to build a high-end leisure facility at Subic's Cawag area, a short distance from the Hanjin shipyard.

Following Neocove is Hanil E & C Subic, Inc., with commitments of $11 million for medium to high-rise commercial residential buildings; Sultan Ahmed Lootah Enterprises Corp., with $6.72 million to manufacture corrugated cartons, sheets, rolls, paper cores, corner pads, trays and duplex boards; George Dewey Medical and Wellness Center, Inc., $6.58 million to operate a hospital, medical and nursing school, wellness center, and research center; and Hanafil Golf & tour, Inc., with $3 million as initial investments to operate golf, tour & other related recreational facilities.

The rest in the top 10 list are: boats and marine-related products manufacturer Australasia Marine Alliance Corp., with $2.32 million; Pacific Pearl Airways Aviation School, with $2.3 million for an aviation technical/ vocational school; Taiwan Cogeneration Corp.'s Subic Bay branch office, with $2 million to design and engineer power plant, transmission and substation projects; Palmgold Int'l Ltd., with $1.94 million for the importation of gaming equipment and operation of slot machine arcade; and Grand Pillar International Development, Inc., with $1.9 million for a real estate venture.

Arreza said the top 10 biggest projects alone made up 85.43 percent of the total committed investments approved by the SBMA Board last year. Foreign direct investments (FDIs), meanwhile, composed 90.74 percent of the $249-million total.

Most of the FDIs were pledged by Korean firms, with a total of 61 projects worth $201.8 million. Filipino firms, however, still placed second to Koreans in terms of total investments in 2008, followed by companies from the United Arab Emirates, Taiwan, Malaysia, Norway, United States of America, Pakistan, and Japan.

Meanwhile, Subic's active workforce, which increased by 18 percent from the 2007 record of 74,181 to 87,502 in 2008, was still dominated by those in the services sector, with a total of 36,203 workers as of the yearend.

Workers in the shipbuilding and marine-related services, however, were catching up in numbers over the last two years, and totaled 30,728 or 35 percent in 2008. A total of 14,545 or 17 percent were recorded in the manufacturing sector; 5,480 or six percent in the construction sector; while 546 or less than one percent were employed as domestic helpers or caretakers.

In terms of manpower distribution, Olongapo City still occupied the number one slot, with 32,620 or 37 percent of Subic's workforce in 2008; Bataan with 11,412 or 13 percent; Zambales with 19,578 or 22 percent; Pampanga, 2,942 or 3 percent; the National Capital Region, 4,289 or five percent; and Tarlac, with 2,220 or three percent.

Arreza also said that Subic's employment generation efforts, a well as its joint program with various agencies to reduce job-skills mismatch, have successfully provided more livelihood opportunities for residents of communities near the free port.

Data from the Department of Labor and Employment's Bureau of Labor and Employment Statistics (DOLE-BLES) showed that the total labor force in the entire Central Luzon region increased by 2.4 percent last year, from 3.4 million in 2007 to 3.5 million as of October 2008.

During the same period, unemployment rate in Central Luzon declined from 8.6 percent in 2007 to 8.1 percent last October.

Labor statistics also indicated that out of the 3.5 million workers in the region in October, only 226,135 or 6.5 percent are underemployed. Underemployment rate in the region decreased by one percent from 254,700 or 7.5 percent in 2007, giving Central Luzon the least underemployment rate among the 17 regions in the country. (SBMA Corporate Communications)

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