RP to seek inclusion of Subic-Clark-Kaohsiung corridor in Taiwan-China free-trade area

TAIPEI—Not wanting to be left behind, the Philippines will be seeking to gain a ticket to the proposed Taiwan-China Economic Cooperation and Framework Agreement (Ecfa) by asking Taipei to include the Subic-Clark-Kaohsiung economic corridor in the negotiations for the planned free-trade area (FTA).

Ambassador Antonio Basilio, resident representative of the Manila Economic and Cultural Office (Meco) here, said there are now concerns that most of the Taiwanese investments that are supposed to go to the Philippines will just again be diverted to China with the forging of the Ecfa.

This, he said, makes it more pressing for Meco to ask the Taiwanese government to consider expanding the Subic-Clark-Kaohsiung economic corridor to include some southern provinces of Mainland China and have it incorporated in the proposed Taiwan-China FTA.

“So this will be our assurance. We will probably formalize this proposal in the next JEC [Joint Economic Conference] meeting [of the Philippines and Taiwan],” Basilio told the BusinessMirror.

The next JEC, which serves as the venue for the Philippines and Taiwan in coming up with new bilateral cooperation programs, is scheduled early next year.

Taiwan and China, on the other hand, are scheduled to negotiate the terms of the Ecfa, which is the initial step in the opening up of trade between the Chinese nations, in the first half of 2010.

Basilio said all the three countries will benefit from the expanded economic corridor because they will be able to complement each other in manufacturing through seamless production lines in their respective economic zones, aside from according all parties larger markets.

He said with the addition of the Philippines in the picture, the products to be produced by China and Taiwan will gain access to the 600-million Asean market. They will also be able to gain benefit from the skilled work force of the Philippines, particularly in the higher end of the value chain.

The Philippines, meanwhile, will be able to get some of the investments.

He said aside from the fears of diversion of Taiwanese investments to China, the Philippines will also lose out more Taiwanese tourists to the Mainland with the Ecfa. “In tourism, we are feeling it now,” he said.

To prevent this from happening, Basilio said the Philippines will have to sell the idea of an expanded version of the economic corridor involving southern China.

The Philippines and Taiwan are now in the final stages of the completion of the requirements in the Subic-Clark-Kaohsiung economic corridor, which is supposed to funnel Taiwanese investments to the economic zones of Subic and Clark, where they will enjoy preferential treatment. (Max V. de Leon, Business Mirror)

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Duty-free privileges key to Ayala Land’s Olongapo development plan

The tax- and duty-free regime that has made this free port one of the biggest generators of foreign direct investment in the country would also be crucial to the realization of a 7,000-sq-meter Ayala Land development project in this free port and nearby Olongapo City.

Armand Arreza, administrator of the Subic Bay Metropolitan Authority (SBMA), said the project proponent has stressed that Subic’s tax- and duty-free privileges would be “a key component in realizing the P3-billion development project proposed by Ayala Land Inc. [ALI].”

According to ALI president and CEO Anthony Aquino, fiscal incentives like Subic’s minimal 5-percent gross income tax, if successfully extended to the 7,000-sq-meter Olongapo City Central Business District (CBD) Triangle, “would set the stage for robust trade in the area.” He added that the tax- and duty-free incentives would be part of the package that the developer could offer to prospective investors and business locators.

Aquino also said that the developer is eyeing the participation of businessmen from Olongapo for the proposed CBD Triangle project, adding that local investments would be the “lifeblood of this development.”

Arreza said he has assured Aquino that tax- and duty-free perks will be applied to the CBD project as soon as President Arroyo approves the implementing rules and regulations (IRR) of Executive Order (EO) 675.

Arreza also said that the IRR for EO 675 has become a collaborative work of the SBMA and the Bureau of Customs (BOC) office in this free port.

The IRR details the process of identifying, administering and regulating the areas where said incentives can be extended, he added.

Arroyo signed the said EO on Nov. 5, 2007, citing the need to expand the area where Subic’s tax- and duty-free privileges would apply.

Arreza said that EO 675 provides that tax- and duty-free privileges within the Subic Special Economic and Free Port Zone “shall apply within the secured area consisting of the presently fenced-in former Subic Naval Base and such other areas that may be identified, fenced, secured, or declared as additional secured area by the SBMA.”

“Once the President gives her approval, it is up to the city of Olongapo to decide what particular incentives to offer,” he said.

Arreza, Aquino and Olongapo City Mayor James Gordon Jr. signed a Memorandum of understanding last week for the proposed Olongapo CBD Triangle project.

Under the agreement, ALI will commission the master plan for free, granted that the Olongapo government would give ALI the option to develop or purchase, subject to applicable laws, the city’s properties inside the 7,000-sq-meter project area.

Arreza, who has pushed for the expansion of Subic’s free-port regime to nearby communities, said the proposed project will be the first step in the agency’s push to develop areas beyond Subic’s secured area.

The CBD Triangle project aims to develop adjoining portions of the Subic Bay Free Port and Olongapo City “into a green, environment-friendly residential, commercial and institutional area.”

The project is expected to boost Subic’s drive to gain more investments and create more livelihood opportunities for local residents.

Arreza also said that among the incentives offered to Subic business locators are tax- and duty-free importation; exemption from all local and national taxes, with only a 5-percent corporate tax on gross income; unrestricted entry of foreign investments; no foreign exchange control; visas for foreign nationals; and expanded allowable deduction and higher percentage of income allowable from sources within the Customs territory for regional enterprises. (Henry Empeño, Business Mirror)

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Subic media condemn ‘monsters’ of Maguindanao massacre

Members of the Olongapo City-Subic Bay chapter of the Union of Journalists of the Philippines (UJP-OS) last week set lighted candles adrift on Subic Bay as a symbolic petition for justice for media colleagues slain in the infamous Maguindanao massacre last month.

Calling for an end to impunity and demanding immediate justice for the massacre victims, the UJP-OS said that media killings are a “direct assault on our democracy and way of life as peace-loving and law-abiding citizens.”

“As journalists fall prey to the dangers inherent in our profession, the freedoms that the public enjoy also became diminished and undermined,” said UJP-OS chairman Jun Dumaguing.

“The death of our colleagues in the media should now signal our call to arms against the reign of violence and impunity perpetrated by those who wield power without regard for the sanctity of human life,” Dumaguing said.

The UJP-OS, in a statement, also expressed outrage at the “monsters who perpetrated the Maguindanao massacre,” adding that the culprits must be brought to justice.

“We condemn with equal fury the government that has condoned the culture of guns, goons and gold in various areas of the country for political reasons,” it added.

The UJP-OS said the Maguindanao killings “could well be the biggest single massacre of journalists in the world, unparalleled in its brutality and ruthlessness, and unequalled in its brazen disregard for life and liberty.”

But while the local media “cringe in shame” for this episode, “make no mistake that the media will be cowed by wanton brutality and insane violence,” the UJP-OS warned.

“Our colleagues who have fallen in the massacre are now martyrs in the eyes of the Philippine press and of the world. This has only made us stronger,” the local media added.

The UJP-OS conducted its candle-lighting rites here at the Subic Boardwalk Park in time for the “International Day of Global Action” that was called for by the International Federation of Journalists, the mother organization of the UJP.

After the media ceremony, a healing Mass conducted at the same venue by Fr. Jerry Orbos also prayed for the victims of the Maguindanao massacre. (Henry Empeño, Business Mirror)

IN PHOTO -- BUT will the journalists’ plea and the lighted candles reach Malacañang? Zoe Zephyr, 10, and sister Ziya Aerin, 7, daughters of BusinessMirror’s Zambales correspondent, float candles at Subic’s Boardwalk Park during a symbolic petition for justice for the victims of the Maguindanao massacre. The ceremony was initiated by the Olongapo City-Subic Bay chapter of the Union of Journalists of the Philippines.

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Ayala Land eyes free port perks for Olongapo project

The extension of Subic Bay Freeport’s tax and duty-free privileges to the City of Olongapo will be a key component in realizing the P3-billion development project proposed by Ayala Land, Inc. (ALI) for the city’s business district.

ALI president and CEO Antonino Aquino said that fiscal incentives like Subic’s minimal five percent gross income tax, if successfully extended to the 7,000-square meter Olongapo City Central Business District (CBD) Triangle, would set the stage for robust trade in the area.

Aquino said these tax and duty-free incentives would enable the planned tripartite committee to offer attractive deals to win the cooperation of Olongapeños, particularly the business group, which he said would be the “lifeblood of this development.”

SBMA administrator Armand Arreza assured Aquino that this prospect would be realized as soon as President Arroyo approved the implementing rules and regulations (IRR) of Executive Order No. 675, which was signed by the President on November 05, 2007 to expand the area where tax and duty-free privileges would apply.

“Once the President gives her approval, it is up to the City of Olongapo to decide what particular incentives to offer,” said Arreza.

Arreza and Aquino signed a memorandum of understanding with Olongapo Mayor James Gordon Jr. last week for the proposed Olongapo CBD Triangle project.

Per agreement, ALI will commission the master plan for the project free of charge, granted that the city government would give ALI the option to develop or purchase, subject to applicable laws, Olongapo City’s properties inside the 7,000-square meter project area.

The Ayala firm announced recently that it would invest P3 billion for a mixed-use master-planned community in the Subic Bay Freeport — a 7.5-hectare property separated from the proposed Olongapo City CBD Triangle only by a man-made channel.

Arreza, who pushed for the expansion of Subic’s free port regime to nearby communities, said the proposed project would boost Subic’s drive to gain more investments and create more livelihood opportunities for local residents.

He added that the recent moves of ALI, one of the biggest real estate developers in the country today, “clearly demonstrates what EO 675 can do to the regions between Subic and Clark.”

Arreza explained that under the EO 675, tax- and duty-free privileges within the Subic Special Economic and Free Port Zone (SSEFPZ) “shall apply within the secured area consisting of the presently fenced-in former Subic Naval Base and such other areas that may be identified, fenced, secured, or declared as additional secured area by the SBMA.”

The IRR for EO 675, a collaborative work of the SBMA and the Bureau of Customs (BOC) here, details the process of identifying, administering, and regulating the areas where said incentives can be extended.

Among the incentives the SBMA offers to investors registering in the Subic Bay Freeport are tax- and duty-free importation; exemption from all local and national taxes, with only a five percent corporate tax on gross income; unrestricted entry of foreign investments; no foreign exchange control; visas for foreign nationals; and expanded allowable deduction and higher percentage of income allowable from sources within the Customs territory for regional enterprises. (SBMA Corporate Communications)

Photo:
SUBIC-OLONGAPO BUSINESS TRIANGLE: SBMA Administrator Armand Arreza, Olongapo City Mayor James Gordon Jr., and Ayala Land, Inc. president Anthony Aquino sign an agreement for the development of a master plan for the Subic-Olongapo Central Business District Triangle project.

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Ayala Land Inc. to craft master plan for Subic-Olongapo business triangle

Ayala Land Inc. (ALI), one of the biggest property developers in the country, will be drawing up the master plan for a unique business-development project in this free port and the neighboring city of Olongapo.

The project, to be called the Central Business District (CBD) Triangle, will straddle the boundary between the Subic Bay Free Port and Olongapo City near the free port’s main gate.

Armand Arreza, administrator of the Subic Bay Metropolitan Authority (SBMA), said the project will cover about 7,000 square meters of prime business land and will be the first step in the agency’s push to develop areas beyond Subic’s “secured area.”

ALI has formally committed to draw the project’s master plan in a memorandum of understanding signed on Wednesday by ALI president Anthony Aquino, Olongapo City Mayor James Gordon Jr. and Arreza.

Arreza said in a statement on Thursday that the CBD Triangle project aims to make the adjoining portions of Subic Free Port and Olongapo City “into a green, environment-friendly residential, commercial and institutional area.”

“This will be the initial project in accordance with the SBMA’s thrust to extend the physical boundaries of the Subic Free Port, and in the process generate more livelihood opportunities for people in the surrounding communities,” Arreza said.

The CBD Triangle project “will effectively generate economic activities in the city, provide more jobs, and improve the quality of life of the residents,” he said.
According to a land-use plan presented by ALI, the project will be located inside the triangle formed by Magsaysay Dr., Rizal Ave. Ext., and Perimeter Rd. in Olongapo City.

It will also include the former SubCom area inside the free port, which will be transformed into a mixed-use area, but predominantly for retail establishments.

Olongapo’s famous entertainment district which is bounded by Magsaysay Dr. and Rizal Ave., will be transformed into a commercial-office block.

Nearby, an institutional area will rise within the area bounded by Fendler, Third, Hansen and First Sts., also in Olongapo.

ALI’s Aquino said all the construction projects in the CBD Triangle “will be relevant to the history, culture and dynamics of Subic Bay and Olongapo City.”

The project will be environment-friendly, with the banks of the Kalalake River inside the CBD Triangle turned into a waterfront garden for relaxation, picnics and small-group activities.

“Any transformation should be planned well. Otherwise, the deterioration of the environment will continue,” Aquino added.

Arreza said the SBMA began entertaining the expansion project into Olongapo after President Arroyo signed on Nov. 5, 2007, Executive Order 675, which granted tax and duty-free privileges to investors locating beyond the “secured area,” but within the Subic Special Economic and Free Port Zone.

He added that aside from undertaking the master plan for the CBD Triangle, ALI has also volunteered to draw the plans for beach areas in Olongapo City that are eyed for development into world-class tourist resorts. (Henry Empeño, Business Mirror)

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Legenda told to vacate Subic casino-hotel

A foreign investor that has defaulted on rentals for its casino and hotel buildings in this free port has been ordered by the court to vacate the premises and remove all its personnel and belongings from the buildings.

Legend International Resort Limited (LIRL), which operates the Legenda Hotel and Casino here, was given three days to move out, said Sheriff Rogel Pagayon of the Regional Trial Court’s Branch 74 in Olongapo City.

The “notice to vacate”, which was served by Pagayon last Friday, was based on a writ of execution issued by the RTC that also ordered the LIRL to pay back rentals to the Subic Bay Metropolitan Authority (SBMA).

The one-page notice issued by Pagayon asked the LIRL to abide by the court order, and warned that in case of non-compliance, “the undersigned will be constrained to remove you and your belongings, from the premises in question, by the arm of the law.”

The notice to vacate was addressed to the LIRL “and all persons claiming rights under them”.

According to the writ of execution issued by RTC Branch 75 on December 3, the issue of LIRL’s obligations to the SBMA has already been resolved by Branch 4 of the Municipal Trial Court in Cities (MTCC).

The dipositive portion of the MTCC decision ordered the LIRL to vacate four properties that it leased from the SBMA.

Aside from vacating the premises, the LIRL was also ordered to pay the SBMA $225,886 for base rent and unpaid sublease shares on the Legenda hotel properties for the period April 2002-January 2003; P872.5 million as rent for casino facilities for the period September 2000-May 2009; and P941,562 as sublease share for the long-term occupancy agreement between the LIRL and its concessionaire GYU International, Inc. for the period September 2007-May 2009.

The MTCC ruling also compelled the LIRL to pay the SBMA a total of P10.96 million for the cost of the lawsuit.

According to Marian Ravelo, clerk of court at RTC Branch 75, the SBMA filed a motion for execution on November 16, more than one month after the October 8, 2009 ruling by the MTCC.

The motion, in turn, was granted by the RTC on December 2, Ravelo added. (SBMA Corporate Communications)

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P131-M fertilizer grant for Luzon shipped thru Subic port

A total of 120,000 bags of fertilizer from Japan, weighing some 6,000 metric tons and costing about P130.7 million, arrived here recently at the Subic seaport on their way to various destinations in the island of Luzon.

The delivery of the fertilizer shipment through the port of Subic “only proves that when it comes to transshipment and cargo deliveries in Luzon, Subic offers the best option because of its strategic location,” said Feliciano Salonga, chairman of the Subic Bay Metropolitan Authority (SBMA).

The shipment, which comprised the third of four deliveries of ammonium sulfate fertilizer under a P253-million grant from the Japanese government, was turned over by Japan’s ambassador to the Philippines Makoto Katsura to Undersecretary Bernie Fondevilla of the Department of Agriculture (DA).

Fondevilla reportedly interceded with the Japanese government to have the third and fourth shipments unloaded at Subic, in order to facilitate their delivery to farmers in the Ilocos, Cagayan and Central Luzon regions.

The third and fourth lots that were supposed to be unloaded in Iloilo and Batangas ports, respectively, were intended for typhoon-affected provinces in Luzon.

The third shipment that arrived here last week was intended for farmers in Ilocos Sur, Ilocos Norte, La Union, Isabela and Cagayan Valley, while the last lot of 7,500 metric tons that will arrive early next week will be for the provinces of Tarlac, Pangasinan and Nueva Ecija.

During the turnover, Makoto said that the Japanese fertilizer assistance this year totals 26,135 metric tons or 522,700 bags of ammonium sulfate fertilizer, as contained in an agreement that he signed last March with Foreign Affairs Secretary Alberto Romulo.

Makoto added that the assistance “serves as a continuing testimony to the cordial friendship and cooperation shared between the Philippines and Japan.”

Specifically, it is designed to alleviate the plight of low-income farmers who were severely affected by recent typhoons, he added.

Makoto also recounted that the first two lots, totaling 252,700 bags or 12,635 metric tons, were coursed through the ports of Davao in September and Iloilo in October.

The Davao shipment was intended for selected low-income farmers in Mindanao, particularly in Agusan del Sur, Bukidnon, Davao del Norte and South Cotabato, he said. The Iloilo shipment was for underprivileged farmer-beneficiaries in Iloilo and Negros Occidental provinces.

The new fertilizer deliveries, meanwhile, would be crucial to turn around agricultural lands in Luzon that were affected by the recent floods, said Daniel Oñate, vice president for marketing of Agrotech Agricultural Products, Inc.

Juanio Mallari, a farmers’ representative, said the fertilizer donations would greatly help the farmers improve agricultural yield and boost the country’s program for self-sufficiency in rice production.

Salonga, meanwhile, urged port users in the Luzon area “to discover for themselves the advantages of using the Subic port.”

He said the port of Subic port has a total of nine piers and wharves that specialize in various shipping requirements. Among them are Leyte Wharf, which serves as bulk grain terminal; Sattler Pier, which is ideal for containerized and break-bulk cargoes; Alava Pier, which serves as a passenger terminal; Boton Wharf, which unloads fertilizers and petroleum products; and the New Container Terminal 1 and 2, which are designed for use by huge cargo vessels.

Salonga added that the port of Subic not only provides an alternative facility to ports in Metro Manila, but also seeks to become a globally-competitive service and maritime logistics center. (SBMA Corporate Communications)

PHOTO: Agriculture undersecretary Bernie Fondevilla (right) receives the P131-milion shipment of ammonium sulfate fertilizer from Japanese ambassador Makoto Katsura after they were unloaded at the Subic Bay Freeport. The shipment is bound to various typhoon-affected provinces in Central Luzon, Ilocos, and Cagayan regions.

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GMA to address press congress in Subic

PRESIDENT Arroyo will address the 14th National Press Congress on Thursday at the Subic Bay Free Port Zone’s Convention Center.

Arroyo is expected to speak on “The Challenge of the Information- Driven Age,” particularly on the role of the new media machine in 2010 elections, the gravity and threats of global warming and climate change, career options for youth and students, the Ampatuan Massacre and other issues.

Earlier, the President issued a message hailing the Publishers
Association of the Philippines for constructive and significant initiatives which will highlight the national press congress in Subic.

The President has also issued Proclamation 1187 declaring December as “National Press Congress Month and the Month of the Community Press in the Service of the Nation.” The proclamation designates Papi as lead agency for the month-long observance.

Presidential candidate Gilbert “Gibo” Teodoro on the other hand will address the press congress on Saturday.This was announced by Lelia Chua-Sy, Papi executive vice which hosts the annual event every December in cooperation with the National Commission on Culture and the Arts (NCCA).

Teodoro, former national defense secretary and chairman of National Disaster Coordinating Council, is expected to speak on natural disaster management and new dimension in public governance, particularly on his agenda as presidential candidate in 2010.

Aside from Teodoro, the National Press Congress has also invited other presidential bets in the presidential forum set during the event to be participated in by around 400 mediamen and communicators from all over the country including school campus journalists from various colleges and universities (Subic Bay News).

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Subic Freeport honors outstanding workers

Ten workers, who have demonstrated excellence in their respective fields, were recognized recently by the Subic Bay Workforce Development Foundation, Inc. (SBWDFI) and the Subic Bay Metropolitan Authority (SBMA) — the eighth batch of workers to be honored under the annual “10 Outstanding Freeport Workers” awards.

SBMA chairman Feliciano Salonga led Subic officials in recognizing the outstanding workers, noting that “the quality of a person's life is in direct proportion to his commitment to excellence, regardless of his chosen field of endeavor.”

“It is therefore our great honor to have with us the best workers in the country who contributed their talents and wisdom to make Subic as it is now — progressive and one of the top investment and tourism destinations in Asia,” Salonga added.

SBMA administrator Armand Arreza, meanwhile, noted that perseverance, initiative, and concern for the common good are characteristics shared by Subic’s best workers — the same attributes of a globally competitive worker.

“These stemmed from the spirit of volunteerism that has empowered the Subic workers ever since,” he added.

This year’s search for the 10 outstanding workers in the Subic Bay Freeport began in July when the SBWDFI sent out nomination forms to all companies in the free port, as well as the different departments of the SBMA, said SBMA labor department head Severo Pastor Jr. Pastor also heads the SBWDFI.

Pastor revealed that from a field of more than a hundred nominees, only 25 advanced to the final selection process that was carried out by a three-man panel chaired by Dr. Julia Mallari, director of the University of the Philippines Subic/Clark program.

From the 25 finalists, the 10 outstanding workers were chosen.

They are: Juan Afidchao, electronics technician supervisor (SBMA TransComm Department), who is credited for the efficient installation, repair, rehabilitation and maintenance of SBMA telephone lines and units. The work he did from January to August this year alone has resulted in savings of more than P100,000.

Melvin Bactad, training specialist (SBMA HRMD), has contributed greatly to the empowerment of his fellow workers and to the development of a highly proficient and committed work force in the SBMA. Bactad facilitated 35 courses in the past year, or an average of three per month — one of SBMA’S most productive years in terms of internal trainings.

Edmond David, process shift engineer (Subic Water & Sewerage Company), saved the free port from a disastrous situation with his expertise and exceptional ability to handle a crisis, preventing a water outage in March 2009. For three days, he directed the operation of the Binictican Water Treatment Plant to ensure unhampered water supply in the Subic Bay Freeport.

Florante Frias, bulk operations superintendent (Philippine Coastal Storage and Pipeline Corp.), was instrumental in the discovery of pilferage cases in the petroleum tank farm and stopped a crime of economic sabotage. This fortified their clients’ confidence in the company and earned him the respect of his fellow workers, management and the Freeport community.

Mariel Go, industrial engineering technician (Wistron Infocomm, Phils.), provided real-time support to the production line, helping improve manpower efficiency, line productivity and yield rate, thereby notably enhancing the efficiency rate of new cell lines to 99.58 percent within six weeks.

Magnolia Lagrama, production worker (Nicera, Phils. Inc.), was twice named as the best production worker of Nicera in the frequency adjustment process. Lagrama does not refuse any assignment and performs well in whatever task she is given in the product line, thus making her name synonymous with assured output at any given time.

Virgilio Manzano, fire marshall (SBMA Fire Dept.), is one of the gallant firefighters whose participation in major emergency operations earned for the SBMA Fire Department the “Gawad Kalasag” special citation from the National Disaster Coordinating Council. He has, time and again, risked his own life to save others. Manzano is also an expert in automotive repair and maintenance, who gets old fire trucks and support vehicles back in shape.

Relly Nicolas, electronics communication engineer, (Wistron Infocomm, Phils.), has done various research and implemented many innovations that saved his company millions of pesos. He is credited for enabling Wistron to meet quality standards and on-time delivery, thereby increasing productivity and reducing “failure machine” complaints from customers.

Sharon Pasion, production worker (Nicera, Phils.), was one of the company’s employee of the year awardees in 2008, and was chosen twice last year as model production worker of the month. Being part of the final inspection group exposes her to stress and long hours of work, given the tight shipment schedules they must meet.

Joy Seridon, chemical engineer (Juken Sangyo-Phils., Corp.), was recently promoted as line leader, and has helped reduce product rejection ratio by as much as 60 percent through improved monitoring, inspection and coordination activities. She was also instrumental in establishing the company’s internal calibration team. Seridon was one of the key personnel who worked on the company’s ISO certification and succeeded in getting the renewal of the company’s ISO certification in just one audit. (SBMA Corporate Communications)

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Nicera transfers China operations to Subic; infuses additional $1M for expansion

Ultrasonic sensor-manufacturer Nicera Philippines, Inc. formally announced its second expansion project in this free port, committing another $1 million for its Subic facility after the firm decided to close down its China operations and transfer it here.

“We will expand our current product line with new merchandise because we are going to transfer our China plant to Philippines,” said Takashi Morimoto, president and general manager of Nicera Philippines, during the formal contract signing with the Subic Bay Metropolitan Authority (SBMA) on Tuesday.

He added that the relocation to Subic was prompted by the one-child policy of the Chinese government, which had resulted in “insufficient workforce” for the firm’s China factory.

SBMA administrator Armand Arreza welcomed the $1-million expansion project and lauded Nicera for “taking successful steps in meeting the challenges posed by recession head-on.”

Arreza also said that the transfer of Nicera’s China operations to the local facility would hasten the resurgence of export production in Subic Bay.

Takashi said that upon completion of its expansion project, Nicera will be hiring 110 additional workers for its Subic facility where it would manufacture new electronics products such as pyrosensor modules and pyroelectric infrared sensors used in home-security lighting systems.

These products are used in the assembly of the so-called Ecopa ball and stick, that combined with another system with voice recorder, allows the detection of motion in the dark. The system emits white light diodes upon detection and activates the playback of a recorded message.

Takashi said this new product line would be manufactured in a new building to be built in a 15,000-square meter lot at the Subic Techno Park (STEP) sometime next year.

He added that the firm aims to produce 50,000 pieces of pyrosensor modules and one million pieces of pyroelectric infrared sensors a month.

As of now, Nicera employs 136 direct workers and 553 employees from sub-contractors. By 2010, Nicera is aiming to raise its employment to 2,000 as the company embarks on manufacturing another product line of gas sensors.

Starting out with 22 employees, Nicera began its Philippine operations in the Subic Bay Freeport in 2001, infusing $25 million to manufacture ceramic sensors called ultrasonic transducers that were installed in bumpers as a safety gadget for Japan-made vehicles.

Utrasonic transducers are designed to detect obstructions from different ranges, producing varied warning sounds depending on the distance of the obstruction.

In September 2007, Nicera undertook a $4-million expansion project to meet the growing demand for high-tech products in the global market. It hired additional 400 workers for this expansion.

Aside from electronic sensors, the Nicera group of companies also produce ceramic filters, traps, discriminators and resonators, top quality ferrite core for power switches and transformers, micro-chip components for CR-ROM, floppy drives and precision motors, and fly-back transformers.

During the contract signing, STEP executive vice president Shintaro Tsuji also expressed confidence that more Japanese investors would be coming to Subic because of its nice environment, a supportive SBMA administration, good seaport facilities, and its proximity to the airport in the Clark Freeport.

“Subic Technopark is recovering [from the recession],” Tsuji said. “In the middle of the worldwide recession, Nicera is still investing more. That is very good proof of Subic’s potential,” he added.

A total of 45 companies, out of the 1,028 firms operating in the Subic Bay Freeport, are Japanese-owned, with most of them located in the Subic Technopark. Fifteen of these firms are Japanese-Filipino joint ventures. (SBMA Corporate Communications)

PHOTO: Subic Techno Park representative Ichiro Tsuji (left), Nicera Phils. president and general manager Takashi Morimoto, and SBMA administrator and CEO Armand Arreza sign an investment contract for Nicera’s $1-million expansion project.

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P2-B expansion fund for Subic and Clark proposed

The Subic Bay Metropolitan Authority (SBMA) has proposed the creation of a P2-billion fund to enable the development of new economic zones in areas near the Subic Bay Freeport and the Clark Freeport.

The proposal was made by SBMA administrator Armand Arreza during a meeting with the Senate Committee on Government Corporations and Public Enterprises, chaired by Sen. Richard Gordon, and representatives of the Clark Development Corporation (CDC) and the Bases Conversion and Development Authority (BCDA).

Gordon, who has filed Senate Bill 0143, or the “3-3-1 Luzon Global Corridor Act of 2009”, has earlier proposed to develop other special economic zones in Luzon to optimize the three airports in Manila, Subic, and Clark, the three
seaports in Manila, Subic and Mariveles, and the highway and railway connecting these major ports.

The bill also seeks to strengthen the power of the SBMA and CDC, giving them the mandate to develop nearby areas into new economic zones.

To speed up the process, Arreza then proposed the creation of a fund to develop new zones.

“If we wanted for Subic and Clark to reach the level of Singapore, we will need investments the equivalent of either seven Texas Instruments or four Hanjins a year. But to start all these, we need to build roads first,” Arreza said.

Arreza recalled that when SBMA and CDC were formed, the primary intention was to create jobs for those affected by the eruption of Mt. Pinatubo in 1991 and the pull-out of the U.S. military from Subic and Clark in 1992.

However, he pointed out that the business model that supports the growth of Subic and Clark “to a certain level, is very limited, as they rely primarily on leases or income from land, which is a finite resource.”

Arreza noted that to carry out their new mandate of developing nearby communities, Subic and Clark would require a tremendous amount of annual investments in the next 10 years to fund various public infrastructures, such as roads, water and sewerage systems, as well as technical schools that would help reduce skills mismatch.

He also stressed that an eco-metric study made by the SBMA showed that Vietnam and China invested anywhere between 7-8 percent of their annual gross domestic product in infrastructure to boost their edge as investment sites.

In contrast, the Philippines spends only 3 percent of its GDP for the same purpose, Arreza added.

Responding to Arreza’s proposal, Gordon said he would file a bill that would set aside part of the taxes collected by SBMA and CDC in the next 20 years to develop more eco-zones in their areas.

Gordon added that Subic and Clark should be allowed to set aside parts of their income solely for infrastructure development within the area to make the Subic-Clark growth corridor constantly competitive.

Noting that Subic is remitting about P6 billion from its income each year to government coffers, Gordon said the contribution should be waived.

“Huwag na munang magbayad ang Subic (Subic should be allowed to waive payment),” said Gordon, who also served as the first SBMA chairman. “Can you imagine if we put the money generated from taxes and spread this in those areas to make industrial parks? We’ll have accelerated development,” he added.

Under his 3-3-1 Bill, Gordon has also identified other areas for development, aside from the Manila-Subic-Clark triangle. These include parts of Bataan, Zambales, Tarlac
and Pangasinan.

Gordon said these areas are ideal FOR THE development of industrial parks for factories, as well as heavy- and light to medium industries. He also wants “open skies” or a liberalized air transport system in these areas in order to attract more commercial planes and maximize the potentials of the existing air facilities.

“This will ensure development, because the more you improve the ports, the more investments will come in, and that is basically the use of this law,” the senator also said. (SBMA Corporate Communications)

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Subic draws praises for Ad Congress success

Organizers of the 21st Philippine Advertising Congress (PAC) have praised the Subic Bay Metropolitan Authority (SBMA) and the City of Olongapo for their “crucial support” in the successful staging of the event at the Subic Bay Exhibition and Convention Center (SBECC) recently.

Charmaine Canillas, chairperson of the Philippine Advertising Board, which manages the biennial Ad Congress, said that with the assistance from SBMA and Olongapo the event was successfully held even with only a three-week preparation period.

“It was easy to simply duplicate what was done two years ago,” Canillas said, recalling the fact that Subic hosted the 20th PAC in 2007 but again became the host this year after roads leading to Baguio City were damaged in the recent typhoons.

“The SBMA really came out to help, and showed a very high level of professionalism. We expected it, and we knew they would deliver,” she added.

Canillas also said the 21st PAC exceeded the number of delegates expected this year, drawing in more than 3,000 participants, aside from thousands who separately came to Subic to witness the event’s culminating feature — the advertising industry’s Araw Awards.

Canillas said the organizers were looking at less than 3,000 delegates this year, considering that the ad industry is still recovering from the global economic crunch.

The “Ondoy-Pepeng” tragedy, she added, even compounded the scenario, forcing the 21st PAC committee to transfer the venue to Subic Bay with less than a month before the actual staging.

Surprisingly, the outcome exceeded the committee’s expectations, a visibly elated Canillas added.

The Ad Board official also noted the Subic-Clark-Tarlac Expressway (SCTEx) significantly helped in keeping a high attendance level in the congress, even as this year’s figure fell short of the record 3,423 delegates that attended the Subic congress in 2007.

“Delegates from Manila can go to Subic for the sessions they want to attend, and come back to their Manila offices right on the same day,” was how she described the ease brought about by the road network leading to this free port.

Aside from this, the 21st PAC committee also found a way to maximize the outdoor space at the SBECC, giving rise to a bigger exhibit area this year.

According to Alvin Trono, one of the 21st PAC committee heads for venue, when it comes to managing convention facilities for their biennial meet, Subic comes close to being an ideal site.

Trono, who helped organize the PAC installments previously held in Cebu, Baguio, and Subic Bay, said they always had an easier time preparing the venue in Subic, compared to other locations.

“In terms of managing the facility, the best so far has always been Subic,” Trono said, pointing out that the Subic convention facility is capable of putting about 3,500 delegates under one roof.

Other factors that give Subic its competitive edge are the abundant spaces available for exhibits, the green environment surrounding the venue, and the support of SBMA personnel, he added.

Trono also suggested that Subic’s drive to become a top convention venue could be boosted if the free port had more five-star hotels that could accommodate high-end customers who attend events like the Ad Congress. (SBMA Corporate Communications)


PHOTO: The Subic Bay Exhibition and Convention Center, which served as the venue of the 21st Philippine Advertising Congress, is now among the best convention sites in the country today.

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SBMA caps 17th year with $5.92-B investments

Bucking the downtrend caused by global recession, the Subic Bay Metropolitan Authority (SBMA) drew closer to the $6-billion mark for committed investments this month as it observed the 17th year of Subic turnover from the U.S. Navy on Tuesday.

SBMA officials said that as of November 15, the agency has notched a cumulative total of $5.925 billion in investment commitments since it was created in 1992 to manage and operate the Subic Bay Freeport Zone.

In today’s exchange rate, that amount is equivalent to P276.79 billion, or an average of P16.28 billion each year in investment pledges recorded in the past 17 years.

“Our track record speaks for itself,” said SBMA chairman Feliciano Salonga, as the agency held a simple commemorative program for Subic’s 17th year anniversary.

“While the past year or so has been a difficult time, Subic has never wavered in its pursuit of more investments and continued its dogged pursuit of new investment niches,” Salonga asserted.

Salonga also attributed Subic’s continuing resiliency “to the faith of investors in the growing competitiveness of the Subic Bay Freeport.”

According to SBMA administrator Armand Arreza, the Subic Bay Freeport “continued to defy the odds with positive performance in investment generation, job creation and revenue production even as the global economy wobbled starting last year.”

This has led the SBMA to embark on a new mission to expand into nearby areas and develop new economic zones there, he added.

Arreza pointed out that despite growing economic uncertainties in the first quarter of 2009, the SBMA managed to squeeze in a total of $31.72 million in new investments even as major economies suffered major income reversals.

Thereafter, Subic followed it up with $60.46 million in the second quarter, $41.12 million in the third quarter, and $26.45 million from October to the first half of November.

“We have stayed in the black all along despite the recession,” Arreza said, pointing out that as of November 15 Subic has a total of 1,301 investment projects approved by the SBMA board.

“The continuing entry of investors also revved up employment generation, so that as of September Subic had a total active workforce of 86,229. This represents an increase of 3.36 percent over the September 2008 figure of 83,428, and that’s despite the recession that affected quite a number of companies here,” he added.

Arreza said most of the Subic firms affected by the downturn had since recovered, while other companies, fueled by the resurgence of the electronics sector, “have been, in fact, undertaking expansion projects.”

According to SBMA data, most of the investments recorded in the Subic Bay Freeport Zone have been generated under the Salonga-Arreza administration that began in September 2005.

The total investment commitments generated in this period amounted to $3.55 billion, or more than 52 percent of the cumulative amount.

Subic’s biggest year-on-year investment was made in 2007 when a total of $1.71 billion was approved by the SBMA. In 2006, Hanjin pledged its initial $1-billion commitment for its shipyard project, cranking Subic’s investment generation that year to a total of $1.44 billion.

Arreza said that in the next few years, the SBMA will be focusing on projects that would expand the physical boundaries of the Subic Bay Freeport and allow the SBMA to generate more investments.

“This will be the new mission for the SBMA,” Arreza said. “We have already exceeded by more than four times the number of jobs lost in Subic when the U.S. Navy left in 1992. Now we’re looking at bringing development outside of the free port, to the communities that have helped nurture the Subic dream since 1992.”

Arreza had lately proposed the creation of a P2-billion fund to allow both Subic and the neighboring Clark Freeport to expand and develop new economic zones in nearby areas. (SBMA Corporate Communications)

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SBMA, PCG call for greater cooperation in maritime safety

The Subic Bay Metropolitan Authority (SBMA) and the Philippine Coast Guard (PCG) jointly called for greater cooperation and public support in the promotion of safety of life at sea and the protection of the marine environment.

SBMA chairman Feliciano Salonga and Admiral Wilfredo Tamayo, commandant of the PCG, both pressed for improved coordination in addressing problems in maritime safety during the Subic Bay Fire, Search & Rescue and Marine Pollution Joint Exercise (Marpolex) 2009 conducted here last week.

The maritime exercises were also joined by the 102nd Squadron of the Philippine Coast Guard Auxiliary (PCGA), which is based in Subic Bay, and some business locators in this free port.

The Subic Bay Marpolex was aimed at evaluating the integrated response capabilities of the participating agencies during maritime disasters that may occur near or within the Subic Bay Freeport Zone.

It also sought to enhance cooperation and capability in firefighting, rescue and oil spill containment and recovery operations; to train participants in planning, command and control, and conduct of integrated operation; and to establish a firm and effective working relationship among the participants.

Salonga, who holds the rank of a commodore in the PCGA and is deputy national director for aid to navigation, also urged members of the Subic Bay PCGA to expand its membership and conduct rigorous training.

He said that since Subic Bay has about 88,000 workers from both the locators and the SBMA, the 100-odd members of the Subic squadron “is but the proverbial tip of the iceberg that we can tap as members”

“I believe we should be big enough to be mobilized at short notice, whenever and wherever the need for our services arises,” Salonga said. “We should be big enough to be counted and recognized as a force in assisting the Coast Guard.”

Salonga reminded everyone that the Subic squadron needs to have the right training in order to equip members with the required knowledge and skills.

“Only with the right training can we prepare them to respond effectively and well to the call of service,” Salonga also said.

In the same occasion, Admiral Tamayo called for improved coordination and unity in promoting safety of life at sea, and cited the SBMA for its support to the PCG.

“We have managed to open our borders and work side by side to address maritime challenges, specifically during maritime disasters and oil spills that may occur near or within the Subic Bay Freeport,” Tamayo said.

“As our nation’s leading maritime safety agencies, our goal is to strive towards minimizing maritime incidents and dangers. Should these happen though, we can be sure that we have each other to depend upon in order to institute an effective and efficient fire/search and rescue/marine pollution operation,” Tamayo added.

Aside from Coast Guard vessels, the exercise involved the deployment of seven SBMA boats that have recently been placed under the management of Subic’s 102nd PCGA Squadron commanded by PCGA Capt. Armand Arreza, who is also the administrator of the SBMA.

Subic locators Malayan Towage and Salvage Co. and Philippine Coastal Storage and Pipeline Corp. meanwhile deployed two tugboats and an oil spill on-shore protection team, respectively.

The SBMA also provided medical, fire, communication and oil spill on-shore protection teams for the exercise. (SBMA Corporate Communications)

PHOTO: SBMA fireboats suppress a fire onboard a tugboat during a maritime safety and pollution control exercise conducted with the Philippine Coast Guard at the Subic Bay Freeport.

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Solon pushes making Subic, Clark, Manila as new hubs for Asia-Pacific

A Party-list representative has pushed for the approval of a bill seeking to fully utilize Subic, Clark and Manila as international service and logistics centers in the Asia-Pacific region.

Party-list Rep. Ma. Carissa Coscolluela of Buhay said House Bill 6784 will strengthen and expand the powers of the Subic Bay Metropolitan Authority (SBMA) and Clark Development Corp. (CDC) to allow them to develop more economic zones in Luzon and ensure local growth and nationwide economic success.

Another measure pending approval in the lower chamber is House Bill 6779 that also proposes that the powers of the SBMA and CDC be strengthened and expanded so they can develop other special economic zones in Luzon to optimize the three airports in Subic, Clark and Manila and two seaports in Subic and Manila and one connecting highway and railway in Luzon. In her proposal, Coscolluela said the development of special economic zones in municipalities nearby, bordering the highway and railway, and connected to the airports and seaports in Subic, Clark and Manila, must be encouraged to bring jobs to the people and promote a higher standard of living and an improved quality of life for all.

She said the development of special economic zones will promote a decentralized local government and private sector-led development that will display the potential that can be achieved when local people set their own priorities and initiatives. Legislators emphasized the need for the state to become aggressive in taking advantage of the strategic infrastructure in Subic, Clark and Manila as international transportation hubs. They said that overcrowded areas will be decongested as industries will be dispersed to other locations in Luzon because of the global accessibility and direct access of Subic, Clark and Manila to domestic and foreign markets worldwide by air.

Both bills provide that the Subic Special Economic and Free-port Zone consists of Olongapo City, Subic, the province of Zambales, the lands occupied by the Subic Naval Base and its contiguous extensions as embraced, covered and defined by the 1947 Military Bases Agreement between the Philippines and the United States, as amended; and within the territorial jurisdiction of Morong and Hermosa in Bataan.

As embodied in the measures, the SBMA shall develop, administer and manage the Subic Special Economic and Free-port Zone, ensuring the free flow of goods and capital based on prescribed rules and regulations, generate employment opportunities in and around the zone, and attract and promote productive local and foreign investments based on the proposals.

As for the role of the CDC, the bills provide that it shall manage, operate and administer the Clark Special Economic Zone which consists of the Clark military reservations and its contiguous extensions as embraced, covered and defined by the 1974 MBA located within the territorial jurisdiction of Angeles City, Mabalacat and Porac and the province of Pampanga, and the municipality of Capas, Tarlac.

The SBMA and CDC shall also have the power to develop other Special Economic Zones in Luzon within the same legal framework and mechanisms as Republic Act 7916 or the Special Economic Zone Act of 1995 and manage and operate these zones and other development programs and project based on the bills. (Fernan Marasigan, Business Mirror)

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