SBMA calls for ‘Kaizen’ after impressive 2013 performance

“Let us all practice Kaizen. Let us not be contended with what we have achieved. Let us always aim to surpass our achievement.”

This was the appeal of Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia to employees of the agency and stakeholders of the Subic Bay Freeport during his State of the Freeport Address (SOFA) on Thursday (Feb. 27).

Kaizen, Garcia explained, is a Japanese word that means continuous improvement.

Garcia said that even as the SBMA posted an impressive performance in 2013, it should aspire for even greater accomplishments in order to remain competitive as a trade and tourism hub.

In delivering his third SOFA as head of SBMA, Garcia reported that the positive investment promotion performance of the agency in 2013 has paved the way for a financial boost for 2014.

He pointed out that in 2013, the SBMA board of directors approved a total of P27 billion in terms of investment pledges, which was 800 percent more than the P3 billion recorded in the previous year.

Topping all other investment pledges in 2013 was the Korean firm Resom Resort, which committed P21.4 billion out of the total P27 billion pledges.

The rest of the top 10 new investors for 2013 were: PTT Philippines Trading Corp., with a P1.9-billion commitment; FFC Subic Seafoods Corp., P848.9 million; Johanna-Subic Seafood Corp., P795.6 million; Glowbal Outlets Philippines, Inc., P212.2 million; Simon & Stanley Int’l Trading & Dev’t Co., Inc.; P215.6 million; APG Int’l Aviation Academy Inc., P135.5 million; Alpha Primero Services Manufacturing, Inc., P84.7 million; Associated Freight Consolidators, P83.1 million; and Platinum Skies Aviation, Inc., P80 million.

Garcia also said that the SBMA will be developing more areas for investment this year following the turnover by the municipal council of San Antonio, Zambales of the 10,000-hectare San Antonio Economic Development Area for conversion into an additional secured area of the Subic Bay Freeport Zone.

Aside from this, the SBMA has also worked out with the local government of Subic, Zambales for the free port expansion into a 650-hectare coastal land in the municipality that will be ideal for shipbuilding and ship repair.

Both territorial expansion projects will be utilized to accommodate the growing investment proposals being received by the agency, Garcia said.

Meanwhile, Garcia also reported that the SBMA posted last year a net profit of P1.079 billion, its highest in its entire 21-year history. The SBMA’s 2013 gross revenue of P2.09 billion and earnings before interest, taxes, depreciation and amortization (EBITDA) of P992 million likewise became the highest in the agency's history.

“These paved the way for a financial boost for 2014,” Garcia added.

Recently, the SBMA board approved the agency’s budget for capital expenditures worth P620 million to further improve infrastructures and facilities in the Subic Bay Freeport, as well as to further promote investment and tourism.

Garcia said the 2014 capex schedule was approved based on the strength of the agency’s record-breaking financial performance for 2013.

With these in place, Garcia challenged SBMA employees and Subic stakeholders to help surpass what was achieved in 2013. (RFD/MPD-SBMA)

PHOTO:
SBMA Chairman Roberto V. Garcia presents a report on the accomplishments of his administration before Subic Bay Freeport business locators, employees, and stakeholders in the Subic community during his State of the Freeport Address held on Thursday (Feb. 27) at the Subic Bay Exhibition and Convention Center. (AMD)

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SBMA eyes P23 billion in new investments

Riding on its record-breaking accomplishments last year and the strengthening of systems in the past two years, the Subic Bay Metropolitan Authority (SBMA) has set its sights on generating P23 billion in new investments in 2014.

In his State of the Freeport Address (Sofa) on Thursday, SBMA Chairman Roberto Garcia said the agency had set investment promotion as a major program to capitalize on the successful capacity-building efforts of his administration in the past two years.

“Let us unite to make Subic a better place,” Garcia told members of the Subic Bay Freeport Chamber of Commerce, which hosts the annual Sofa event, as well as officials and employees of locator-companies here, and other community stakeholders who attended the forum at the Subic Bay Exhibition and Convention Center.

He added that achieving excellence must be a continuing effort for everybody in the Subic Freeport, as he unveiled the agency’s major program for 2014.

Garcia also said that aside from targeting new investments, the SBMA would focus on creating new jobs to achieve inclusive growth; aggressively pursue the use of Subic’s container port to decongest Manila ports and vehicular traffic; and attract more tourists and visitors by launching a creative tourism campaign and hosting more events.

He said the SBMA would also implement “major reorganization” to effectively achieve its strategic initiatives; simplify business processes to deliver better service to locators and residents; improve the status of agency employees by implementing the long-delayed salary increases; and intensify its good governance program.

As one means to promote the attractiveness of Subic as an investment hub, the SBMA has “substantially increased capital expenditures from P9 million in 2013 to P620 million this year,” Garcia said.

The programmed expenses, Garcia added, include more than P90 million for land and land improvements; P2.6 million in buildings and structures; P133.96 million in information-technology equipment; and P393.4 million in equipment outlay.

In his address, the SBMA head largely painted a rosy picture of increasing opportunities and potentials in this premier free port brought about by the agency’s record-breaking performance in investment generation, tourism promotion and revenue collection last year.

Starting with the agency’s investment-promotion performance, Garcia said total committed investments in Subic substantially increased by 800 percent from P3 billion in 2012 to P27 billion in 2013, thus increasing cumulative investments here by 7 percent, or from $8.8 billion in 2012 to $9.4 billion last year.

The new investment projects also created a total of 2,597 new jobs, the SBMA official said.

To further generate new investments, the SBMA acquired new additional areas for development last year, Garcia said. These consist of 10,000 hectares in San Antonio, Zambales, which is ideal for tourism and resort development; and a 650-hectare expansion area in Subic town, which was set for shipbuilding and ship repair.

In other areas, Garcia said the Subic Bay Freeport registered a 3-percent increase in tourist arrivals, a 6-percent growth in sports events, an 8.7-percent increase in ship calls, and a 56-percent increase in seaport revenue, an 8.9-percent growth in income-tax collection, a 71-percent increase in customs collection, a 0.5-percent increase in manpower, a 13-percent increase in remittances to the National Treasury, and a 12-percent increase in revenue shares given to neighboring local government units.

Garcia also pointed out that the SBMA broke several records in financial performance last year: its P2.09-billion gross revenue was the highest ever in the 21 years of the Subic Bay Freeport; a 52-percent increase in earnings before interest, taxes, depreciation and amortization, was also the highest in SBMA history; a 35-percent increase in SBMA net income became the biggest in 21 years; and its P1.15-billion cash position also was the highest since 2005. (Henry Empeño, Business Mirror)
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http://www.businessmirror.com.ph/index.php/en/news/economy/28244-sbma-eyes-p23-billion-in-new-investments

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