Bright outlook for Subic all the way to 2016

The stability of the SBMA (Subic Bay Metropolitan Authority) and its unyielding performance, coupled with the current business in-flow in the Freeport will definitely create a strong economic surge in the Freeport Zone in 2015 and in 2016.

This was the prediction of Subic Bay Freeport Chamber of Commerce (SBFCC) President Rose Baldeo during the Subic Bay Outlook Towards 2016 Economic Employment Summit held at the Olongapo City Convention Center last week.


The prediction Baldeo made was based on SBMA’s accomplishment of besting 2012’s net profit record of P824 million with last year’s P1.2-billion net profit, highest in the entire 21 years of existence.

SBMA Chairman Roberto Garcia also stated that the agency’s gross revenue last year of P2.09 billion and the Earnings Before Interest Taxes Depreciation Amortization (EBITDA) of P992 million are the highest levels in the history of the SBMA.

Garcia also pointed out the increase in port traffic as this Subic Freeport became the alternative port for Manila, thanks to Executive Order 172. Garcia said that Subic’s cargo volume is expected to hit more than 70,000 TEUs this year from 38,000 TEUs last year.

Nippon Yusen Kaisha (NYK) Line made its first direct call at the Subic Port to help solve the current concerns in Manila. According to NYK Manager Mary Grace Golez, the Subic call is marked by many firsts, opening more opportunities for Philippine shipping.

“This will be the first service in the Philippines to make a direct call from Japan to Subic, in addition to the regular Taiwan-Subic call. It will also be the first service to call from Subic to Singapore, a major transshipment port providing numerous connections to East Asia, the Middle East, South Asia, Europe, Africa, North America, Australia and New Zealand ports,” she said.

Baldeo said, “Outlook-wise, we as locators and investors are beginning to feel the change of the business climate in the Subic Bay Freeport. Slowly and steadily, the SBMA has begun to adjust to the needs of its investors businesses.”

“But these positive outlooks require a great cooperation; we the locators see the need for an improved working relationship or partnership with the local governments, the educational institutions, the SBMA, and other concerned government agencies including the local businesses in the city and in the nearby provinces,” she said.

To help entice more shipping lines to use Subic, the SBMA cut its port fees starting October 1, even if this would result in losses of about $10 million to $15 million for the state agency. (Jonas Reyes, Manila Bulletin)

PHOTO:
SUBIC SHIPPING SHAPES UP — A truck hauls off a cargo container from the ‘M/V Jakarta Tower,’ a cargo vessel chartered by the Nippon Yusen Kaisha (NYK) Line, after docking at the NCT-1 of Subic Bay Freeport. The NYK Line made its first direct call at the Subic Port to help solve the current concerns in Manila.

http://www.mb.com.ph/bright-outlook-for-subic-all-the-way-to-2016/

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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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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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SBMA sets P617-million capex for 2014

The Subic Bay Metropolitan Authority (SBMA) has set aside a total of P617 million for its capital expenditure (capex) program this year, as the agency embarks on more projects to improve infrastructures and facilities, as well as to further promote the Subic Bay Freeport.

SBMA Chairman and Administrator Roberto Garcia said the 2014 capex schedule was approved by the SBMA board of directors recently on the strength of the agency’s record-breaking financial performance for 2013.

“Because we achieved last year an all-time net profit of P1 billion, which is the biggest in the last 21 years that the SBMA existed, our board of directors approved our capital expenditure budget as presented,” Garcia said.

“Our capex this year is really a big departure from past allocations, but we really worked hard for this,” he added.

“We will be spending for dump trucks, for more service vehicles, beautification of the Freeport, roads, repair of infrastructure, for our airport, and other projects to make the Freeport more attractive to foreign investors,” Garcia said.

According to figures released by the SBMA Finance Group, the agency’s 2014 capex budget of P617 million represents a whopping 6,740 percent increase over last year’s capex of P9 million.

Of this, around P2.6 billion will be spent on buildings and structures; P90 million on land and land improvements; P391 million on equipment outlay; and P134 million on information technology equipment, which received a budget of only P13,000 in 2013.

Last week, as Garcia presented eight new pickup trucks that were acquired as initial purchases under the 2014 capex, he also appealed to SBMA officials and employees for them to continue looking for new sources of revenue to further improve the agency’s financial performance.

“We are already here at this level where we can provide for what we need. We are committed to spend not only for equipment and facilities, but for our people most especially,” Garcia assured. “But we must help each other to take SBMA up to a higher level,” he added. (RFD/MPD-SBMA)

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Subic tourism prospects for 2014 ‘very positive’

The Subic Bay Metropolitan Authority (SBMA) is expecting another “record-breaking year” in tourism this year, as it intends to ride on last year’s accomplishments and whip up greater momentum with bigger events and more attractions this year.

SBMA Chairman and Administrator Roberto Garcia said in a recent report to tourism stakeholders here that Subic faces a “very positive” period this year because of increasing tourist arrivals brought about by the hosting of more sports events, as well as meetings and conventions, in the free port.

“We have been gaining much ground in tourism in the past three years, and in 2014 we intend to do better as we host several major events here in Subic,” Garcia said.

“We have the product—the Subic Bay Freeport, and we just need to get it out there so that we can maintain, if not surpass, the big numbers we attained in 2013,” he added.

According to figures released by the SBMA last week, there was a 20-percent increase in sports-oriented events staged in the Subic Bay Freeport in 2013.

These major events included the Subic Bay to Boracay Race on February 16, the Commodore’s Cup Regatta from April 2 to 6, the Asian Triathlon Championship and the TRAP National Triathlon Championship from April 26 to 29, the Century Tuna 5i50 Triathlon on June 23, the Safeguard 5i50 Triathlon on October 6 and the Subic Duathlon Open Championships on December 1.

Garcia said the unprecedented 134-percent increase in the number of participants joining sports events here has made Subic Bay “arguably the sports tourism capital of the Philippines.”

He added that Subic also hosted several meetings, incentives, conventions and exhibitions (MICE) events in 2013, leading to a 52-percent increase in participants as of September, compared to the level of participation as of September 2012.

“Visitor, tourist and hotel guest arrivals have all increased respectively by 8.3 percent, 0.86 percent and 0.89 percent as of October 2013, as compared to levels as of October 2012,” Garcia also said in his report.

Garcia also said aside from aggressively promoting Subic Bay as a must-see tourist destination, the SBMA had undertaken regular projects to protect and enhance the natural environment of the free port, which is Subic’s core tourism product.

Among the measures SBMA had taken for the environment in 2013 was the full implementation of a “no plastics” policy in January, regular beach and river clean-up projects in coordination with neighbor-communities, and the holding of a water summit to ensure adequate clean water supply in the area.

To provide more momentum to SBMA’s tourism initiative for 2014, the agency had booked major events like the 1st Asia-Pacific Drive Tourism Conference, Auto and Travel Show, which opened here on Tuesday.

Subic will also be the venue of the Ad Summit Pilipinas 2014 scheduled from May 7 to 11, and is eyeing to host the International Table Tennis World Championships this year, Garcia said.

The “Drive Tourism” event, which will last until Sunday, February 2, is a joint project of the Department of Tourism and the Automobile Association Philippines.

The Ad Summit Pilipinas, which is touted to rock the core of the country’s advertising industry, is organized by the Association of Accredited Advertising Agencies of the Philippines. (Henry Empeno, Business Mirror)

http://www.businessmirror.com.ph/index.php/en/news/economy/26699-subic-tourism-prospects-for-2014-very-positive

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