SBMA records P3.47-Billion operating revenue

The Subic Bay Metropolitan Authority (SBMA) registered a revenue of P3.47 billion last year, capping the second year of the Covid-19 pandemic with an 8% growth in income and other major accomplishments in key performance areas.

In her 2021 annual report to President Duterte, SBMA Chairman and Administrator Wilma T. Eisma said that “while a few indicators remain impacted by the Covid-19 pandemic, the general trend is upward where the SBMA was able to accelerate growth and surpass its performance in the previous year.”

Foremost among the top performances Eisma told the President about was the operating revenue of the agency, which stood at P3.47 billion for the period ending December 2021. This was P270M or 8% higher compared to revenue in the same period in 2020, she added.

Eisma pointed out that most of the SBMA revenue came from leases and port operations, with land and building leases growing by 2% and contributing P1.38 billion, and seaport operations growing by 14% and generating P1.37 billion.

She also reported that the agency’s regulatory income increased by 11% and provided P408 million in revenue, while airport operations grew by 26% and contributed P79 million.

The SBMA chief likewise provided positive reports in investment and employment generation, tourism, imports and exports.

She said the SBMA recorded a total of 142,177 Subic Bay Freeport workers as of December 31, showing an employment increase of 2.31% from 138,966 workers in 2020. SBFZ business locators, meanwhile, numbered 1,737 SBFZ as of December 31, “continuing a slight upward trend since 2019,” Eisma said.

She added that new investments, including expansions, totaled P17.29 billion, higher than the 2020 record by P15.74 billion, or 1,011%. The 2021 record even topped the pre-pandemic 2019 level by P8.05 billion, or 87%, with the bulk comprised by a P15-billion commitment from a business locator, which proposed to develop the SBFZ marshalling yard.

Meanwhile, Eisma said that the pandemic-hit tourism industry in Subic “is recovering and has recorded a total of 7.3 million same-day visitors in 2021.” This was also higher than the 2020 record by 2.18 million or 42%, but still lower than the 2019 record by 2.2 million or 23%.

In terms of trade, Eisma said the Subic Bay Freeport “defied the negative impact of the pandemic by recording a total of US$1.58 billion import value in 2021, which was 49.53% higher than the 2020 import value of US$1.12 billion.”

On the other hand, Subic’s export value reached a total of US$1.37 billion, which was 32.42% higher than the 2020 export value of US$1.03 billion. Both import and export values respectively exceeded the 2019 pre-pandemic records by 8.12% and 6.73%, Eisma added.

At the same time, Chairman Eisma reported to President Duterte that the Subic Bay International Airport, which was tapped by the Department of Transportation last year to accommodate “Bayanihan” flights has recorded a total of 53 flights as of December 31, bringing home a total of 14,312 overseas Filipino workers (OFWs) and returning overseas Filipinos, and generating P3.17 million in direct revenues for the SBMA.

Eisma likewise reported that the SBMA’s Covid-19 vaccine rollout, which was a joint project with the Department of Health, has resulted in the administration of 22,251 vaccine doses as of the end of 2021.

Eisma assured the President that the SBMA “is doing its best to be more competitive and maintain a business-friendly environment in the Freeport, as we continue to support all the programs of the government to ensure the well-being and safety of everyone in the Subic Bay Freeport.” (MPD-SBMA)

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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: 2015 4th successive record year

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

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

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

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

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

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

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

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

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

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

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

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SBMA reports P202-M revenue in trade facilitation

The Subic Bay Metropolitan Authority (SBMA) announced that it posted a total of P202 million in revenue from trade facilitation and compliance fees collected last year from importers, brokers, processors, and other stakeholders in this free port.

SBMA Chairman Roberto Garcia said that based on the annual report submitted by SBMA's Trade and Facilitation and Compliance Department (TFCD), the department’s revenue for 2015 represented an increase of P51 million, or 34 percent, compared to the P151 million recorded in 2014.

Garcia said the increase in earnings is the direct result of the implementation of key objectives and strategies in all SBMA departments to deliver the best services to clients and to sustain the agency’s positive performance in the last three years.

The measures include promotion of good governance, where SBMA has institutionalized the integrity pledge (IP) among employees in support of the agency’s crusade against graft and corruption; transparency in communicating with importers, brokers, processors, and other stakeholders through consultative meetings; and fiscal responsibility by implementing stricter collection procedures and monitoring of the same.

“The satisfaction of our locators and investors with regards to the services they received from SBMA is to some measure reflected on the upward movement in our statistics,” Garcia explained.

“It’s good to know that the figures are all positive,” he added.

TFCD officer-in-charge Anna Joy Quito meanwhile said that better service to customers had, indeed, resulted in better earnings for the department.

She said that export value freight on board (FOB) reached a total of US$2.52 billion in 2015, which is 11 percent higher than the US$2.26 billion in 2014.

Quito explained that under SBMA’s good governance initiatives, the department has succeeded in providing services in a much shorter period of time than the minimum requirement.

She cited as example that while the target time for issuing an admission permit from time of application is 16 hours, the department has lately managed to shorten this to an average of 7.9 hours, or a decrease in processing time of 51 percent.

Another area where the TFCD successfully introduced faster processing time is in Export Declaration clearance, where actual processing time is now 30 minutes, or down by 94 percent from the target time of eight hours.

Quito added that the department will conduct benchmarking with other ports and ecozones in the country to establish and adopt best practices in trade facilitation to increase further the efficiency of the Subic port.

The TFCD facilitates admission of goods into the Subic Bay Freeport through efficient delivery of frontline services, such as processing of permits on imports and exports, and keeping locators or investors in step with all procedural guidelines implemented by the SBMA. (RAV/MPD-SBMA)

PHOTO:
SBMA Chairman and Administrator Roberto V. Garcia (AMD/MPD-SBMA)

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SBMA posted 12-percent revenue increase last year

The Subic Bay Metropolitan Authority (SBMA) has again broken its own record of sterling performance in the past three years with a bigger growth upsurge in 2015, which rode on the swell of opportunities in the transshipment and maritime logistics sector.

SBMA Chairman Roberto V. Garcia said in a media briefing on Monday that the Subic agency had coaxed a broad-based revenue growth across all strategic business units (SBUs) in 2015, posting a 12-percent revenue growth and achieving an 8-percent increase in operating profit for the same period.

Previously, SBMA’s gross revenue stood at P2.44 billion in 2014, the highest for the agency since it began operations in 1992, while its operating profit or earnings before interest, taxes, depreciation and amortization last year was at P1.39 billion, also the highest since 1992.

“The seaport/airport sector is now the leading SBU in Subic, with a 28- percent growth last year,” Garcia said during the news briefing.

He added that the growing transshipment and logistics revenue was bolstered by a 56-percent increase in the volume of containerized cargo processed in Subic, which rose from 77,000 twenty-foot equivalent units (TEUs) in 2014 to 120,000 TEUs in 2015.

Garcia said that, apparently, Subic has begun attracting legitimate shippers last year after being categorized as an extension for the Port of Manila in 2014.

“According to Secretary [Jose Rene] Almendras, there was no port congestion in Manila last year. However, Subic’s container volume still increased, so this can only mean that we have already attracted the legitimate shippers,” Garcia said.

Because of this, Garcia said SBMA is looking forward to bigger container volume in 2016. A 150,000-TEU target, he added, “would be easy [to achieve] this year.”

Aside from the growing transshipment and logistics revenue, Subic’s tourism sector also performed better in 2015, as it posted a 12-percent increase in tourist arrivals, bringing the year’s cumulative total to more than 6 million.

Nature theme parks, like Ocean Adventure and Zoobic Safari, contributed about 2.2 million to the 6 million arrivals for Subic in 2015, Garcia said.

Subic also posted in 2015 the highest hotel-occupancy rate in Central Luzon at 66 percent, as the meeting, incentive, conference and exhibition, and sports tourism niches gained more visitors.

“This is why more new hotels are being built here, and existing ones are expanding because there is a demand,” Garcia said.

He said that after several hotels and restaurants opened along Subic’s waterfront area in mid-2015, the Best Western Hotel was inaugurated late last year while the newest addition, The Reef Hotel, began construction.

Meanwhile, because of better financial performance in the last four years, SBMA was able to increase its capital expenditures from P30 million in 2014 to P40 million in 2015, as well as implement a 10-percent retroactive salary increase for all its personnel.

Garcia also said that, with better financial standing in 2015, SBMA contributed an estimated P630 million in dividends to the national government, an increase of 11 percent over its P570-million contribution in 2014.

SBMA’s outstanding performance in 2015, Garcia added, was capped by Subic’s recognition by fDi Magazine, a publication of The Financial Times of London, as “Global Free Zone of the Year” for Asia.

Subic also received two special awards from fDi last year: one for infrastructure development and another for reinvestment. (Henry Empeño, Business Mirror)

http://www.businessmirror.com.ph/sbma-posted-12-percent-revenue-increase-last-year/

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SBMA net income doubles in 1st sem

After hitting record highs in financial performance for three consecutive years, the Subic Bay Metropolitan Authority (SBMA) recently reported another substantial increase of 104 per cent in its net income for the first half of the current year.

According to SBMA Chairman Roberto Garcia, unaudited figures from the agency’s Finance group placed the agency’s January-to-June net income at P687 million, showing a significant improvement from P337 million for the same period last year.

“Revenues for the first semester were pretty good as well,” Chairman Garcia said, referring to a 15 per cent revenue increase from last year’s level.

Sharing the agency’s operating revenue pie were port services and regulatory fees, which increased by 29 per cent and 24 percent, respectively over the same period last year.

Also contributing substantially to the agency’s financial health, according to Chairman Garcia, were a 33 per cent buildup in current assets, including a 38 per cent increase in cash assets, and a 56 per cent increase in miscellaneous assets such as prepaid expenses, guaranty deposits, mobilization funds given in advance to contractors, and others. Tight control was also implemented as far as operating expenses were concerned.

“Meanwhile, SBMA’s earnings before interest, taxes, depreciation, and
amortization (EBITDA) increased by 18 per cent. This means that the agency is not only pursuing effective strategic initiatives, but is implementing them efficiently as well," Garcia added.

The top SBMA executive also noted that the first semester saw a much improved business climate in the Freeport, which led to better bottom lines for the Subic agency and its locators, as well as the start-up operations of many new ones and a much bigger workforce that would soon breach the 100,000-mark.

With this profit increase, Garcia said the SBMA is “looking forward to a more positive outcome to further strengthen and sustain the agency’s financial turnaround over the past three years record performances.

“We need to provide funds for our strategic plans, including the implementation of the long-overdue salary increases for SBMA employees and the procurement of badly needed equipment for security, maintenance and infrastructure development work,” the SBMA chairman said. (AMF/CorComm-SBMA)

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SBMA commended for its financial and investment gains

The Regional Development Council of Region 3 (RDC 3) recently cited the Subic Bay Metropolitan Authority (SBMA) for the financial and investment strides it had achieved in the past three years.

In a resolution passed by the RDC 3 last January, the council commended the SBMA for “the financial viability of the authority, improving the collection of customs duties and other taxes, as well as increasing investment commitments within the Freeport and Special Economic Zone, and for optimizing container traffic at Subic Port”.

According to the same resolution, “SBMA was able to restore the financial viability of the authority by posting annual net incomes ranging from Php0.8 billion to Php1.3 billion from 2012 to 2014, a complete turnaround from the negative income streams ranging from Php0.2 billion for six (6) consecutive years starting 2006 to 2011”.

SBMA chairman and administrator Roberto V. Garcia recently reported that SBMA hit new record highs in its 2014 financial performance, as it scored a net income of P1.6 billion vs. its 2013 income of P1.1 billion for a substantial increase of 40 per cent.

The RDC 3, which serves as the counterpart of the National Economic and Development Authority (NEDA) Board at the sub-national level in Region 3, likewise noted in its resolution that the SBMA’s implementation of various trade facilitation measures and innovations in systems and procedures had boosted the collection of customs duties and other taxes.

Through these actions by SBMA, “...the collection of customs duties and other taxes in within SBF-SEZ increased dramatically from Php7.2 billion in 2011 to Php16.8 billion that corresponds to 233 percent growth”, the RDC 3 said.

The NEDA regional office likewise cited the Subic agency for maximizing container port traffic in the Subic port and for initiating ”business process improvements and promotion activities that boosted investment commitments fromPhp3.6 billion in 2-13 to Php9.7 billion in 2014”.

Due to the renewed business and manufacturing climate in the Freeport, the RDC 3 said that the gross revenue share of affected local government units correspondingly increased by 40 percent, from PhP145 milllion in 2011 to PhP203 million in 2014.

Garcia welcomed the RDC 3’s commendation and assurance of full support to SBMA’s development efforts geared toward making Central Luzon a leading regional transhipment and global gateway.

“The Agency’s sterling three-year record performance could be attributed to good governance, the implementation of its strategic initiatives, and the hard work of the Agency’s management and employees,” Garcia said. (AMF/CorComm/MPD-SBMA)

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Subic Bay Freeport tops tourist arrivals in Central Luzon

Subic Bay Freeport is Central Luzon's most visited tourist destination in 2014.

Department of Tourism (DOT) Regional Director Ronaldo Tiotuico, in a press statement, said "Subic Bay Freeport and Zambales was the most visited at 1.2 million arrivals followed by Clark Freeport, Pampanga and Angeles City- 621,000; Bataan- 199,000; Bulacan- 109,000; and Aurora- 108,000.”

DOT region III reported that tourist arrivals in Central Luzon rose to 21% in 2014 compared to 2013.

3.1 million domestic and foreign travellers went to the region last year compared to 2.7 million in 2013 based on monthly survey reports submitted by accommodation establishments.

Chinese topped the most number of foreign travelers in Central Luzon last year at 390,431 or 12.5% followed by Americans- 95,737 or 3.08%, Koreans- 55,692 or 1.8%, and Singaporeans- 31,200 or 1%.

Average occupancy rate for accommodation establishments in the region stood at 62% while length of stay for travellers was at 22 nights with over 1.2 available rooms during the year.

“The unprecedented increase can be attributed to the significant developments in Clark and Subic Bay Freeports along with the recent infrastructure improvement at the Clark International Airport which allows it to have the ability to welcome as high as four million passengers,” Tiotuico explained.

Also, the conduct of festival planning and management seminars for members of the Association of Tourism Officers of Central Luzon as well as the participation of DOT and government and private stakeholders in tourism and travel expositions in Makati, Cebu, and Davao were likewise named as contributory to the surge.

Source: http://news.pia.gov.ph/article/view/561425818418/tourist-arrivals-in-cl-up-by-21-

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Subic Freeport, Nayong Pilipino turning in profits

CLARK FREEPORT—The financial viability of the Subic Bay Metropolitan Authority (SBMA) and the Nayong Pilipino sa Clark Expo (Nayong Pilipino) appears to have turned for the better lately in spite of prevailing global economic uncertainties brought about by slow-downs in First World markets (the US and Europe) and political turmoil besetting the Middle East.

SBMA Chairman and Administrator Roberto V. Garcia reported that the country’s first free-port zone sustained a profitable operation this year that began in 2012 ending a losing streak since it opened for business in 1992.

But due to increased expenditures, this year’s SBMA gains would somewhat be lower than last year’s P800 million on the back of projected year-round total operating revenues of P1.476 billion. In 2012 operating revenues reached P1.151 billion.

On the other hand, the losing Nayong Pilipino also began posting moderate gains beginning in 2012, when gross revenues soared to P24 million.

Nayong Pilipino trustee and Executive Director lawyer Apolonio B. Anota Jr. said the facility is now stronger financially both in gross and net revenues.

Anota traced the turnaround in the cultural-cum-resort venture of Nayong Pilipino in this free port to increased visitor arrivals in the past 20 months from a measly annual number of 20,000 to 300,000 as a result of improved management and introduction of new attractions.

Both Garcia and Anota were guests in Friday’s double media forum “Balitaan,” hosted weekly by the Capampangan in Media Inc. at its headquarters at the Bale Balita (House of News) here.

Garcia reported that locators’ committed investments in the SBMA this year could hit P24.8 billion, a hefty jump from the preceding year’s P2.3 billion.

The SBMA’s current 1,000 locators, which provide some 89.921-percent employment opportunities, are forecast to register a 33-percent dip in export receipts to $650 million this year from $963 million the previous year due to the global economic slowdown.

But there’s excitement in the Subic free port, Garcia said, brought about by the rising number of prospective locators, as well as those that have actually implemented their plans, led by the rising P20-billion complex of Resom Resort City Subic and the expansion of the floating terminal of Vale Holding Shipping Pte. Ltd., which services major iron-ore suppliers to China.

The SBMA, together with this free port, has been picked to host the senior ministerial meeting of next year’s scheduled Apec summit the Philippines is hosting, which could trigger the realization of the planned Subic-Clark business corridor, Garcia said.

As envisioned, the land on both sides of the Subic-Clark-Tarlac Expressway connecting Clark and Subic is to be developed into commercial-industrial areas to attract more local and foreign business locators.

“We’re also looking forward to generating fresh revenues from the prospective transfer of some of the operation of the Philippine Air Force to Subic,” Garcia said.

With its improving financial muscle, Garcia expressed optimism that the free port could finally pursue the programmed upgrading of its port and other facilities, as well as an increase in the compensation of SBMA personnel.

Sources said that the SBMA management has submitted to the Office of the President its proposed P65-million wage-hike package for SBMA employees. (Ashley Manabat, Business Mirror)

http://www.businessmirror.com.ph/index.php/en/news/economy/22632-subic-freeport-nayong-pilipino-turning-in-profits

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SBMA posts record profit

The Subic Bay Metropolitan Authority has disclosed that the agency achieved last year the highest profit in its 20 year history.

Based on preliminary figures presented at the SBMA’s Strategic Planning conference last week, the Agency posted a record profit of P789 million in 2012. This is a drastic turnaround from the P1.2 billion loss in 2011

Chairman & Administrator Roberto V. Garcia said that the turnaround was due to increased revenues, reduced operating expenses and a favorable exchange rate.

The Agency revenue increase of 16% versus last year was brought about by new major projects in seaport operations such as the Vale ore transshipment project and the start of commercial operations of the Phase 2 new container port.

Coupled with an aggressive collection campaign on existing accounts, new revenue streams were created through increased admission fees on importations and the imposition of fees to defray municipal expenses that were previously subsidized.

Operating expenses decreased by 7% versus 2011 as the Agency implemented a comprehensive austerity program. Salaries dropped 7% as a freeze hiring policy was implemented and manpower count decreased.

Repairs and maintenance likewise decreased by 46% and advertising was slashed by 35% vs 2011. As a result earnings before interest, taxes and depreciation (EBITDA) jumped from P329 million in 2011 to P629 milliona 91% increase.

Due mainly to favorable exchange rates, unrealized foreign exchange posted a gain of P1.1 Billion from previous years forex loss of P566 million.

The 2013 Strategic Planning session focused on developing new initiatives to sustain and improve further SBMA’s financial position in the coming years. New strategic initiatives concentrating on the seaport, airport, tourism, and commercial and industrial leases were formulated, targets were set and detailed plans of action were submitted and approved by the SBMA Board.

SBMA wanted to ensure it was ready and able to take advantage of the present upsurge in the country’s strong economic performance especially in attracting foreign investments. (SBMA)

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SBMA seaport income surges to P130.21-M in 1st Qtr.

The Subic Bay Metropolitan Authority (SBMA) has reported an income of P130.21 million for the Subic sea port in the first three months, topping the P67.21-million target for the first quarter by 193.7 percent and posting an all-time record for the agency.

Calling the unprecedented record “a silver lining amidst the global recession,” SBMA seaport officials said the January to March sea port income surged to record high as actual collections from various revenue sources all exceeded first quarter targets.

“This is really record-breaking for the Seaport Department,” said SBMA senior deputy administrator for operations Ferdinand Hernandez, whose office oversees the Subic sea port.

“Historically, Subic seaport’s highest first quarter income was recorded in 2005 when we collected P51.6 million. But this year, our March revenue alone was already more than P51 million,” Hernandez explained.

He added that with the January-March revenue, the SBMA Seaport has already accounted for 41.17 percent of the agency’s P316.29-million revenue target for the whole 2009.

Capt. Perfecto Pascual, manager of the SBMA Seaport Department, meanwhile pointed out that the total of P130.21 million does not include accounts receivables in the amount of P17.2 million.

“Theoretically, therefore, Seaport’s first quarter income is P147.41 million,” Pascual added.

According to Hernandez, two new accounts this year boosted Subic’s seaport revenue collections: rental from the Subic Bay International Terminal Corp., which operates phase 1 of Subic’s New Container Terminal (NCT-1), and the additional income on vessel lay-ups.

The SBITC rentals already accounted for P12 million in the first quarter, while the running income this year from idle vessels parked at Subic Bay has reached P23.68 million, he said.

Another factor that helped increase the seaport revenue was wharfage fee for petroleum products, fertilizer, and grains like soya and wheat, said Hernandez.

Pascual also said that even without the two new accounts, the SBMA Seaport Department would still have posted a first quarter income of P94.53 million — still the biggest record for the department ever since the creation of the SBMA in 1992.

He said that SBMA Seaport’s six revenue sources all contributed positively to the rising revenue, with actual collections of P48.8 million for vessel charges, or an increase of 263.8 percent over the first quarter target; P38.15 million (173.7 percent increase) for cargo charges; P9.18 million (277.8 percent increase) for processing fees; P13.13 million (125.8 percent increase) for SBMA shares in port-related services; P16.38 million (128..9 percent increase) for lease/rentals; and P4.46 million (1,687.5 percent increase) for other charges.

Comparative figures from the SBMA meanwhile showed that despite the global recession, the Subic sea port has completed 83.5 percent of its first quarter target for containerized cargo volume — or 6,041 TEUs (twenty-foot equivalent units) out of the goal of 7,236 TEUs. This is broken down into 2,087 TEUs for January, 1,832 in February, and 2,122 in March.

Pascual said that to capture the much needed volume of cargo, the SBMA continues to strengthen its marketing efforts to entice shippers, importers, brokers and forwarders to use the Port of Subic.

Meanwhile, non-containerized cargo that passed through the Subic Bay Freeport in January-March reached a total of 679,153.16 metric tons, or 139.3 percent over the first quarter target of 487,698.81 metric tons.

In the same period, a total of 508 ship calls were made in Subic as more idle vessels were laid up in Subic Bay. This figure represented a 102.2 percent increase over the first quarter target of 497, SBMA data indicated. (SBMA Corporate Communications)

PHOTO: A cargo vessel unloads containers at the New Container Terminal-1 in the Subic Bay Freeport.

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SBMA approves P1.5-B new investments in 1st Qtr.

The global business outlook this year may be bleak, but officials of the Subic Bay Metropolitan Authority (SBMA) are counting on this free port’s strong domestic base to further economic growth during the global financial crisis.

According to SBMA Administrator Armand Arreza, the agency signed up a total of 30 new projects worth P1.5 billion for the first quarter this year, topping by 13.6 percent the recorded volume of new investments in the same period last year.

The new projects brought to 966 the total number of registered investors here, Arreza said during the mass contract signing held at the Subic Gateway Park here.

Some 580 workers are expected to be employed by the newly-registered Subic companies, he added.

With the continued influx of investments here despite the global economic slowdown, Arreza said the SBMA is optimistic that Subic will weather the current crisis.

"A 13.6 percent growth despite this global crisis indicates that the Subic Bay Freeport has achieved an excellent level of economic resiliency," said Arreza.

This is because the SBMA "has created a self-sustaining business environment for the Subic Bay Freeport, which, through the years, was directed towards various industries that require less, if not total dependence, on foreign markets," he added.

Arreza also pointed out that tourism has become a major economic driver for Subic Bay, and that the growing support industries for this sector, such as hotel construction, keep the local economy afloat.

He added that the maritime industry here still has a lot to offer, as proved by Filipino-owned Tountzis Shipping Inc. that committed a P975.3 million investment, the biggest among the investment projects approved in the first quarter this year.

According to Stef Saño, the SBMA senior deputy administrator for business, the biggest projects proposed by new Subic investors are related to the maritime and logistics industries.

Aside from Tountzis Shipping, which will engage in the buy-and-sell of shipping vessels and in other shipping services like logistics and warehousing, two other big investments are in maritime and logistics.

These are the 7,107 Islands Shipping Corp., which has made the Subic Bay Freeport as its home port, committing P201 million for its cruise ship operations; and Eastern Subic Fuel Depot Corp, which committed P50.8 million for the establishment of gasoline stations and retail outlets for petroleum products.

Saño also identified the other new investor-firms sharing the top ten list as: Subic Mobymix Concrete Industries Trading, Inc., which will invest P49.7 million for the production and supply of ready-mix concrete products, warehousing, import/export and trading of construction materials, equipment and machinery; R.A. Geigl Realty Construction Corp., P41 million, for the development of housing facilities; and Westcoast Automotive Corp., P39 million, for the sale and distribution of motor vehicles, spare parts, accessories and other related products, as well as repair, maintenance, and leasing of vehicles.

Also among the biggest projects are: HYS-Yacht Phils. Ltd. Co., P36.1 million, for the construction, development and operation of a marina restaurant, resort operation and yacht restoration facilities; Fuso Kasei Philippines Inc., P30.1 million, for the manufacturing of plastic products; Hankook Networks Philippines Corporation, P19.3 million; and Bongture Corporation, P18..2 million, `for real estate development, subleasing, management and marketing operations. (SBMA Corporate Communications)

PHOTO: Representatives of new investor-firms in the Subic Bay Freeport pose with SBMA Chairman Feliciano Salonga, SBMA administrator Armand Arreza, and SBMA senior deputy administrator for business Stef Saño (8th, 9th and 10th from right, respectively) after the mass contract signing ceremony at the Subic Gateway Park.

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17 years after RA 7227: SBMA cites Subic Freeport’s economic contributions

Officials of the Subic Bay Metropolitan Authority (SBMA) said that Subic Bay has significantly achieved its business objectives of attracting investments and generating employment opportunities after 17 years of existence as a special economic zone and free port.

SBMA Chairman Feliciano Salonga and SBMA Administrator Armand Arreza jointly cited Subic’s economic contributions on Thursday, after the agency marked the 17th year of the passage of Republic Act 7227, which created, among others, the Subic Special Economic and Freeport Zone (SSEFZ).

RA 7227, also known as the Bases Conversion Development Act of 1992, mandated the development of the SSEFZ into a self-sustaining, industrial, commercial, financial and investment center to generate employment opportunities in and around the zone and to attract and promote productive foreign investments.

It was signed into law by President Corazon C. Aquino on March 13, 1992, after its consolidated version was finally passed by both the House of Representatives and the Senate the month before.

“The Subic Bay Freeport, we are proud to say, has consistently delivered on its objectives in the past 17 years,” Salonga said. “And it will continue to deliver despite the hurdles brought about by the ongoing global economic slowdown,” he added.

“One bright note here is the continuing increase of our labor force, which grew by almost 18 percent last year. The biggest chunk of this – or more than 41 percent – are employed in the services sector; followed by shipbuilding/marine-related services, which employ some 35 percent of our work force,” Salonga said.

He also pointed out that the 87,502 jobs in the Subic Freeport as of December 2008 “is more than thrice the number of workers employed by the US Navy at the heydays of the then Subic Naval Base.”

Arreza said meanwhile that in the 17 years since the Subic Freeport has existed, the SBMA has generated $5.75 billion in committed investments, $11.21 billion in exports, and P2.21 billion in seaport revenues.

He added that with the operation of various investor-firms since 1992, the Subic Freeport had also contributed to the national treasury a total of P9.93 billion in collections by the Bureau of Internal Revenue (BIR), and P55.35 billion in cash and non-cash collections by the Bureau of Customs (BoC).

Arreza also revealed that despite the global economic downturn, the agency is actually eyeing further growth through a new development roadmap that has identified five major investment areas in the free port – namely, logistics, manufacturing, shipbuilding, tourism, and business process outsourcing and knowledge-based industries.

“After fulfilling our mandate of attracting investors and creating jobs, we have to re-invent the purpose of the SBMA. Now we’re aiming to take the Subic Freeport, as well as the neighboring communities, to a higher level — creating a multiplier effect in Central Luzon and the rest of the national economy,” said Arreza.

Arreza added that the importance for the SBMA to deliver on its key metrics cannot be overemphasized “because Subic has always been an enabler from the time it was born 17 years ago to today.”

“If Subic succeeds, it creates a positive image for the country as well. If Subic goes down, it can drag the rest of the country, too. This is why our biggest moral purpose is to unite around a sense of achievement for the sake of our country,” Arreza concluded. (SBMA Corporate Communications)

PHOTO:
The SBMA head office at the Subic Bay Freeport Zone: continuing to deliver 17 years after its creation in 1992.

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Subic sees modest growth despite global recession

Despite forecasts of an even grimmer economic picture this year as a compounded result of the global financial crisis in 2007, the Subic Bay Metropolitan Authority (SBMA) said it is optimistic of continued growth in “anchor industries” to keep the Subic Bay Freeport afloat even in turbulent waters.

SBMA Administrator Armand Arreza said that the agency expects modest growth in Subic’s tourism, manufacturing and maritime sectors as these “are likely to defy the global slowdown due to their firm foothold in the market.”

These sectors, he explained, turned out the bulk of the P4.21 billion total investments that the SBMA approved in December 2008 — fresh infusions that Subic managed to secure even after the impact of the global financial meltdown began to sink in.

The new investments, Arreza said, brought total committed investments in Subic to $5.75 billion as of end-2008, and are expected to add at least 1,000 new jobs to Subic’s active work force of about 85,000.

In the short term, Arreza said that growth may be generally flat in 2009, especially for certain companies in the manufacturing sector.

“But in the long haul, we expect the tide to turn and eventually lead to recovery,” Arreza said.
“There should even be opportunities in the lean months, as some firms would shift production to more cost-competitive locations like Subic,” he added.

In particular, Arreza said the tourism industry in Subic should prove to be resilient amid the expected slowdown because of its own local market niche.

In addition, he said that the SBMA and Subic business locators are now tapping the foreign market to bring in more tourism revenue.

An example of the more enterprising firms, Arreza said, is Subic golf course operator Hanafil, which was scheduled to bring in on Monday night the first planeload of golf players from South Korea under its “golf junket” program.

Arreza added that Subic is also eyeing the still emerging but potentially huge Chinese tourist market, which is expected to reach 100 million by 2015, by building more facilities and adding to Subic’s repertoire of nature theme parks and adventure sports attractions.

He said that Ocean Adventure, one of the popular tourist draws in Subic, is expanding this year and will build a hotel at the nearby Camayan beach resort that it also operates.

Anticipating bigger tourist turnouts in Subic this year, Puregold Duty Free also embarked recently on a $50-million expansion program for its duty-free retailing business here, Arreza added.

In the logistics sector, Philip Morris will be putting up in Subic this year a P1-billion warehouse to expand its tobacco leaf supply hub for Southeast Asia. This facility is expected to accommodate up to 24,500 metric tons of tobacco leaves.

Meanwhile, the manufacturing sector is also expected to provide its share in Subic’s continued growth, as indicated by expansion projects for factories and construction of new production facilities worth over $25 million.

Several manufacturing firms in Subic, including Japanese ATM manufacturer Hitachi Terminals, Taiwanese lock maker Tong Lung and abrasives producer Tailin, are slated to build or start operating bigger facilities this year.

On the other hand, the maritime industry, headlined by shipbuilder Hanjin Heavy Industries Co.-Philippines, is expected to continue boosting Subic’s revenue and employment generation programs by turning out 15 new container vessels this year.

The company had so far launched four 4,300-TEU container ships that cost around $60 million each from its Subic shipyard, and expects a faster pace of production in 2009 as its more than 15,000 Filipino workers become more familiar with the shipbuilding process.

“By and large, Subic’s core industries will see it through this economic slowdown,” Arreza said.

“Overall prospects may be dampened by some effects of the global crunch, but we expect modest gains — then possibly, full recovery in two to three years, as the new investment projects we signed in last year begin to kick off,” he added. (SBMA Corporate Communications)


PHOTO CAPTION:

NEW SUBIC INVESTORS: SBMA Chairman Feliciano Salonga (6th from left) and SBMA Administrator Armand Arreza (4th from right) pose with new investors, who are among the 34 business locators that signed investment contracts worth P4.21 billion with the SBMA last December.

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SBMA approves new investments worth $87.6-M

While financial slowdown has affected the global economy, this free port continues to welcome into its fold both foreign and local investors bullish about business potentials in this premier commercial, industrial and tourism center.

The Subic Bay Metropolitan Authority (SBMA) signed contracts with 34 locator companies that committed a total of US$87.63 million in fresh investments.

SBMA Chairman Feliciano Salonga and Administrator Armand Arreza, who signed the new business contracts at the Subic Bay Gateway Park here, said the fresh capital infusions were for 28 new projects and four expansion programs.

The newly-approved investments will generate about 1,000 new jobs once operational.

"This is a very challenging time that we face, but despite negative news in the financial market, the SBMA continues to be optimistic as it continues to make the entire Subic Freeport more competitive," Arreza said.

"By continuously upgrading our facilities and infrastructure, which are very critical in the growth of every business, we make Subic a better and more effective investment haven," he added.

Leading the new batch of investors in terms of committed investments is Puregold Duty Free, which will start a $50-million expansion program for its duty-free retailing business in Subic.

Next are Sultan Ahmed Lootah Enterprise Corp., which is infusing $6.72 million for its corrugated cartons and duplex boards manufacturing plant; Pacific Ocean Underwater Solutions, Corp. ($5 million), which will provide various underwater services like repair and construction, salvaging and photography, as well as purifying and maintaining fishing fields; and Samahophir Corp. (also $5 million) for the manufacture, fabrication, installation, and repair of big doors for Hanjin projects.

Other new players in the manufacturing area are: Cheongwa Subic, Corp., which is investing $4.312 million in the manufacturing, import/export, assembly and fabrication of steel frames related to shipbuilding; Australasia Marine Alliance Corp. ($2.32 million), manufacturing of boats and other marine–related products and components; TECO Phils 3C and Appliances, Inc. ($1 million), for the importation and exportation of home appliances; and Ixion Corp., $800,000, for the importation and distribution of petroleum products.

In the tourism-related sector, several companies have signed in to engage in the operation and construction of leisure and recreational establishments: Magspeak, Inc., $1.1 million; World HDGD, $1.1 million; Janburlai Corp., $800,000; Freeport Skyworld, Inc., $640,000; and Molawinville Corp., $500,000.

In the warehousing and storage sector, the MSK Group Work Inc. will infuse $2.85 million, while Ocean Coast Shipping, Inc, will bring in $350,000 for a business in bunkering, brokerage, and other port services.

Arreza said the Subic Bay Freeport is now home to about 1,200 companies employing more than 85,000 workers. Total committed investments by these businesses have reached $6 billion.

"We are hoping to further increase these figures by the end of this year. With these new investments, we are very confident that Subic will reach new record levels," he said.

Meanwhile, Lawrence Lusung of the Bank of Commerce, which has also signed in as a new locator, said Subic is "one of the most dynamic places for business in the country."

"Bank of Commerce believes that for a bank to become one of the top financial institutions in the country, it must have a place here in Subic where great opportunities await every investor," Lusung said.

Pateek Tiwari of ED & F Commodities Phils., Inc., which will engage in the warehousing and storage of bio-fuels and other liquid products, meanwhile said the investor-friendly policies of the SBMA remains to be the main attraction of Subic. (SBMA Corporate Communications)

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15,300 new jobs created in Subic

A total of 15,330 new jobs were created in this free port in the first nine months after the Subic Bay Metropolitan Authority (SBMA) approved 141 new investment projects worth more than $239 million.

The new jobs include the 10,000 projected employment of Subic Neocove Corp., a joint venture between Korean and American firms for the construction and operation of an integrated sports and luxury resort facility at Subic's Redondo Peninsula.

SBMA Administrator Armand Arreza said the projected employment opportunities would increase Subic's active workforce by 18 percent.

According to the SBMA Labor Department, Subic's total labor force already stood at 83,428 as of September due to expansion programs undertaken by Subic-registered enterprises, as well as the operation of new investors..

While the bulk of the Subic workforce remains in the services sector with a total of 36,012 workers or 43.17 percent, employment in the shipbuilding and marine-related business is fast catching up, the SBMA said.

Already, maritime-related industries employ 26,438 or 31.69 percent of the workers in Subic, SBMA figures showed.

The maritime sector is followed by the manufacturing sector, with 14,804 or 17.74 percent; and construction, with 5,628 workers or 6.75 percent. The rest of the active workforce is composed of domestic helpers and caretakers, with a total of 546 or 1 percent.

Arreza said the entry of Neocove Corp. and other big-ticket tourism projects would most likely keep the services sector as the leading employer here in the next few years.

"Subic is basically service-oriented, so as more industries locate here — whether in maritime or manufacturing sectors — we expect a corresponding increase in jobs in the services sector," Arreza said.

He added that aside from Neocove, nine other big investors that signed in this year would also be also labor-intensive.

These include the Korean construction firm Hanil E&C Subic, Inc., which has a committed investment of $11 million; Sultan Ahmed Lootah Enterprises corp., with $6.72 million; George Dewey Medical and Wellness Center, Inc., with $6.58 million; Hanafil Golf and tour, Inc., with initial commitments of $3 million; Australasia Marine Alliance Corp., with $2.31 million; Pacific Pearl Airways Aviation School, with $2.13 million; Palmgold Int'l Ltd., with $1.98 million;
Grand Pillar Int'l Development, Inc., with $1.9 million; and Buma Subic Development and Management Corp., with $1.5 million.

The 141 new projects worth some $239 million placed the total committed investments in Subic at $5.74 billion, the SBMA said.

Arreza also said that SBMA's job-generation program has been instrumental in addressing unemployment and underemployment in the Central Luzon region.

Citing figures from the Department of Labor and Employment's Bureau of Labor and Employment Statistics (DOLE-BLES), Arreza noted that the region's unemployment rate had decreased from 11.5 percent in 2007 to 9..4 percent as of July this year.

In the same period, Central Luzon's underemployment figures went down from 14.1 percent in 2007 to 9.2 percent as of July.

"I think our efforts to minimize labor gaps are now gradually paying off," Arreza said, pointing out that the agency is also facilitating regional dialogues not only to address unemployment, but to promote skills matching and industrial peace in the region.

He said the that in 2005, the SBMA linked with the Department of Labor and Employment, Commission on Higher Education, Technical Education and Skills Development Agency, Public Employment Service Office, and the Regional Development Council to start a series of conferences on job-skills mismatch to help address labor concerns in Central Luzon. (SBMA Corporate Communications)

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Subic to exceed P5.3-B revenue record

Revenues derived from duties and taxes in this free port this year are expected to breach the P5.3-billion record in 2007, as total collections at the end of 3rd quarter 2008 already reached P4.08 billion.

Subic Bay Metropolitan Authority (SBMA) Administrator and CEO Armand Arreza said the 3rd quarter figure meant an increase of 6.41 percent over the P3.83-billion tally made in the same period last year.

With the 3rd quarter collection record just short by P1.2 billion from last year’s total, the SBMA expects to exceed the 2007 figure of P5.3-billion, he said.

“By all indications, Subic is defying the odds,” Arreza enthused. “While there is some slowdown in the global economy, we continue to make consistent growth in revenue, import, export, as well as investment and employment.”

“The continued growth of these indicators brings about the rise in the taxes and duties collected in Subic,” he said.

According to data released by the SBMA, the Bureau of Customs (BoC) reported a total cash collection of P2.97 billion from January to September 2008, while the Bureau of Internal Revenue (BIR) showed a P1.11 billion tally.

The BoC figure represented a growth of 5.82 percent over its P2.81 billion cash collection as of 3rd quarter 2007.

The Customs office in Subic traditionally sourced its earnings from importation duties and taxes on oil, motor vehilces, general merchandise and Fedex operations.

Arreza said that despite the current economic crisis, importations by manufacturers and traders here had grown steadily in the last two years, from $1.62 billion in 2006 to $1.79 last year.

Aside from its cash collection, the BoC reported non-cash receipts worth P4.53 billion, for a total of P7.5 billion in cash and non-cash transactions from January to September.

In the nine-month period, the Subic BoC made its highest collection in September with P430.7 million.

The BIR report, meanwhile, indicated that its P1.11 billion tax collection represented an increase of 8.02 percent when compared to the P1.02 billion accumulated in the first nine months last year.

The BIR office here derived its collections from income and profit taxes, value-added tax, percentage tax and other taxes paid for by employers and employees in the Subic Bay Freeport.

The revenue collection agency also reported that its collection peaked in the 2nd quarter when it recorded P423.4 million, with P210 million collected in April alone.

Arreza said that revenue collection in Subic will further increase with the entry of more than 141 new investment projects approved by the SBMA in the last nine months. (SBMA Corporate Communications)

photo caption: Container ships unload cargo at Subic’s Sattler Pier. The Subic Bay Metropolitan Authority said a steady growth in imports, as well as investments and employment, contributes to the rise of revenue collections in the Subic Bay Freeport.

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Subic Freeport workers now 81,700

Expansion programs by existing companies in Subic, as well as the entry of new business locators, has resulted in the continuing rise of employment here, with the active workforce augmented by more than a thousand workers each month since January this year.

According to figures from the Subic Bay Metropolitan Authority (SBMA), the active workforce in Subic stood at a total of 81,729 as of August this year.

This represented an increase of 11,321 new hires over the yearend 2007 figure of 70,408.

SBMA Administrator Armand Arreza said most of the new positions were created by companies expanding their operations.

"More jobs are about to be created in the coming months as we step up efforts to sign in more businesses and to coordinate job-skills matching with our locators," he said.

Arreza added that in the first eight months of this year, the SBMA has approved 130 new investment projects that will create a total of 5,177 new jobs.

SBMA data indicated that of the total 81,729 workers employed in the Subic Freeport, majority come from Olongapo City, which contributed a total 32,241, or 39.45%.

The second biggest number of Subic workers are those from Zambales, with 17,794 or 21.77%, followed by Bataan, with 10,803 or 13.22%; the National Capital Region, with 4,421 or 5.41%; Pampanga, 2,837 or 3.47%; Tarlac, 1,153 or 1.41%; and other areas, 12,480 or 15.27%.

Arreza said the SBMA's job creation initiatives will also receive a boost from an Internet-based job-skills matching program launched here on Friday by WOWCard, Inc., a business locator that conducted the first Internet-assisted job fair to be held here on September 26 to 27.

The project, Arreza added, will further strengthen job creation efforts for Central Luzon workers, and help address both unemployment and underemployment in the region.

WOWCard president Victorino Quiton said, meanwhile, that the Internet-based system dubbed as "Job@8s" will utilize an electronic database whereby investors and business locators in Subic could post job announcements and hiring requirements.

"This will make the whole recruitment and hiring process faster, more efficient and easier," he said.

Quiton explained that job-seekers availing of "Job@8s" services will be asked to list their qualifications and desired positions.

These will then be encoded and matched with available positions as listed by the more than 30 investor firms that have confirmed their participation in the job fair.

"This facility will also provide locators the window to hire highly qualified professionals even from outside the country, and, at the same time, is expected to attract more foreign investors when they learn that the recruitment and hiring process in Subic is less of a problem," Quiton added.

Quiton said the "Job@8s" facility will be made available for free to local job applicants even after the job fair. (SBMA Corporate Communications)

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Koreans top new Subic investors with $198.8-M

South Korean companies pledged some $198.8 million in new investments here in the first eight months of the year, making them the top-ranking group of new investors for the past three years.

The South Korean firms, with a total of 46 projects approved by the Subic Bay Metropolitan Authority (SBMA) from January to August, committed more than 85% of the $232.6 million worth of new investments for the said period.

Filipino investors, meanwhile, came in second with 67 projects worth $10 million, followed by Taiwanese firms with three projects worth $2.9 million, and Malaysians, with another three proposals amounting to $2 million.

SBMA Administrator Armand Arreza said the influx of Korean investors here came in the wake of the $1.6-billion investment infused by shipbuilder Hanjin Heavy Industries Corp.-Philippines in 2006 and 2007.

“Most of these Korean companies are either suppliers or subcontractors of Hanjin, and some are property developers that also target the growing Korean community not only in Subic, but in other parts of the country,” Arreza revealed.

“Subic’s biggest new investor so far this year, the Subic Neocove Corp., is also a Korean company which intends to develop a resort to cater mostly to Korean expatriates,” he added.

“Of course, Subic has a good mix of nationalities, who have been part of the local business community since the free port was established in 1992,” Arreza said.

Among the nationalities that put up new investments here this year are the Taiwanese, Japanese, American, Malaysian, Pakistan, Norwegian, Australian, British, Singaporean and Canadian.

SBMA records also indicate that in January to August this year, foreign direct investments (FDIs) composed the bulk of fresh capital infusions in Subic with a total of $208.8 million.

In the same period, the SBMA had approved a total of 130 projects, with projected employment totaling 5,177.

These increased the number of approved projects in the Subic Bay Freeport to 1,103, with committed investments totaling $5.73 billion.

Arreza said that for the past three years, Korean firms had topped other nationalities in terms of value of new investment projects.

In 2006, Korean companies put up a total of $1.36 billion, followed by Filipinos with $57 million, and Taiwanese with $9.8 million.

Last year, Koreans were again on the number one rank with $993 million worth of investments, followed by Filipinos with $355 million, and Taiwanese with $222 million.(SBMA Corporate Communications)

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Subic revenues hit P3.55-B in first 8 months

Revenue collections in this free port amounted to more than P3.55 billion in the first eight months of the year, boosted by positive growth in cash receipts by both the Bureau of Customs (BoC) and the Bureau of Internal Revenue (BIR).

Figures released by the Subic Bay Metropolitan Authority (SBMA) indicated that the two collection agencies here posted a combined increase of more than P251 million, or 7.61% over last year’s January to August revenue total of P3.3 billion.

The surge in tax and duties collection started in June this year, when a positive variance of 40.05% was recorded, followed by increases of 12.27% and 8.36%, respectively, in the next two months.

SBMA Administrator Armand Arreza said the positive tally is “reflective of the growth in business operations” by the more than 1,100 investor firms in the Subic Bay Freeport, as well as the increasing number of port users.

“The growing number of business locators in Subic also contributed to the growth in income taxes collected from Freeport employees, which now number to almost 82,000,” he said.

He added that in just the first eight months alone, the active workforce in the Subic Freeport rose by 11,321 from 70,408 at the end of 2007.

According to figures submitted by the BoC to the SBMA, the bureau’s cash receipts this year totaled P2,539,272,857.53 as of August, representing an increase of 8.11% over the P2,348,694,404.81 posted in the same period last year.

The overall growth was attained despite negative month-on-month variances posted in March, with –13.7%, and May, with –21.63%.

The highest monthly total in the eight-month period was recorded in July when BoC collected P393,074,394.64, followed by P367,591,192.46 in June, and P335,330,989.39 in August.

Meanwhile, non-cash revenues by the BoC, which are not included in the total cash receipts, amounted to P3.54 billion in the first eight months. This figure represented a percentage increase of 118.48 over the 2007 total of P1.58 billion.

As for the BIR, its income tax collections rose by 6.35% in January to August 2008, compared to its 2007 performance.

The BIR said it collected a total of P1,014,153,609.10 this year, compared to P953,566,367.74 in January to August 2007.

The bureau’s biggest tax haul was made in April when collections reached
P210,080,661.86.

The agency also posted a 61.8% month-on-month increase in March and 24.36% in August, despite negative variances in January (-28.83%) and February (-33.01%). (SBMA Corporate Communications)

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