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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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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P220-m Subic Isuzu showroom breaks ground

Automotive trader Velocity Motor Sales Corp. recently broke ground here on Friday for a P220-million full-scale Isuzu dealership that targets the growing automotive market in the Subic Bay Freeport area and the province of Zambales.

Subic Bay Metropolitan Authority Chairman and Administrator Wilma T. Eisma graced the ground-breaking rites led by Velocity Motors president Jason Hao and company director Jeffrey Hao Lin at the Subic Gateway District along with guests Isuzu Philippines Corp. president Hajime Koso and Isuzu Philippines Corp. sales division head Joseph Bautista.

“This is a landmark day for all of us, as this shows us how vibrant the business climate in Subic Freeport is,” Eisma said in her congratulatory message.

“This is a signal of the kind of confidence that investors like you have in the Subic Bay Freeport,” she also told Velocity and Isuzu officials.

Velocity top honcho Jason Hao said the company will put up an Isuzu dealership with display showroom and parts and service center.

The dealership will conduct all ancillary and related activities for the popular automotive brand.

The company signed a lease term of 50 years for a 5,000-square meter lot at the Subic Gateway District to house the showroom and service center. The facilities are expected to be completed within two years at a total construction cost of P100 million.

Isuzu Philippines President Koso said: “Today we are marking here a milestone for the Isuzu Philippines Corporation, as we break the ground for the construction of the new Isuzu dealership. Subic is primed to become the most competitive international service and logistics center in Southeast Asia.”

“With this opportunity, Subic is positioned to become an automotive and transportation solution hub for the growing transportation needs in the province of Zambales,” he added.

Established in 1995, Isuzu Philippines Corp. is into the assembly of commercial vehicles such as the Crosswind AUV and D-MAX pickup truck, along with light- to heavy-duty trucks and buses that provide maximum performance and reliability while on the road.

Isuzu’s Subic dealer is expected to supply much-needed commercial vehicles and trucks for the growing automotive market in the Subic Bay area. (MPD-SBMA)

PHOTO:

SBMA Chairman & Administrator Wilma T. Eisma and Senior Deputy Administrator for Business & Investment Renato Lee III (far right) along with Isuzu officials at the groundbreaking of Isuzu's dealership in Subic Bay. (MPD-SBMA)

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