Korean firm puts up P890-million ‘conficetel’ projects

Seeing the rising demand in the past three years for commercial and residential spaces here in this free port, Korean property developer Subic Daesung Corp. (SDC) has now introduced the “conficetel” concept: a combination of condominium, office and hotel units.

Subic Daesung inaugurated on Tuesday the P120-million, three-story Subic World Plaza (SWP), its first “conficetel” project, and at the same time broke ground for the P770-million, 13-story Wellis Conficetel project.

Both projects are mixed-use commercial buildings that include condominium and hotel units, restaurant and retail shops, SDC chairman Kim Tae Wan explained.

The SWP, which is located within Subic’s central business district, offers 13 commercial spaces at its ground floor, while its second and third floors have 54 office units and 20 residential units.

The 13-story Wellis, on the other hand, will have 384 hotel and condominium units and a state-of-the-art elevator parking — a first in the country, Kim added.

Construction for the Subic World Plaza project started just eight months ago, and units therein are now ready to be leased. Units at the Wellis Conficetel, meanwhile, will be available 18 months after the groundbreaking, Kim said.

The Korean developer added that because of the “tremendous opportunities” in Subic, his firm is eyeing the construction of five 17-storey conficetels on a three-hectare lot at Subic’s Boton Heights commercial area.

The proposed conficetels would be worth a total of P6.75 billion, Kim revealed, also noting the influx of Korean investors and retirees here, and the upward trend of tourist arrivals since the opening of the Subic-Clark-Tarlac Expressway (SCTEx).

“Subic has become the Philippines’ prime tourist destination. Koreans prefer the Philippines, especially Subic, as their place for retirement,” Kim pointed out.

Subic Bay Metropolitan Authority (SBMA) chairman Feliciano Salonga, meanwhile, gave assurances of the agency’s continued support to the Korean property developer, as well as other Korean investors present during the groundbreaking.

“Although the weather didn’t cooperate, the spirit of cooperation between Korea and Philippines continues without hesitation,” said Salonga, referring to the downpour that beset the ceremony.

Meanwhile, SWP project consultant Leonardo Mesiano credited the growth of property development projects here to the SBMA’s effective marketing program and the agency’s partnership with operators of Subic’s tourism facilities.

He said the resulting influx in tourist arrivals as well as retirees here has provided challenge for Subic Daesung to come up with innovative ideas like the “conficetel” concept. (SBMA Corporate Communications)

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Subic Generates P2.5-B Revenue in 6 months

Total revenue generated in the Subic Bay Freeport in the first six months of the year has reached more than P2.5 billion, a slight increase from Subic’s duties and taxes collection performance in the same period last year.

SBMA Administrator and CEO Armand Arreza said total cash receipts by the Bureau of Customs (BOC) and the Bureau of Internal Revenue (BIR) offices here amounted to P1.81 billion and P753 million, respectively.

He added that both agencies surpassed their collection figures by one percent compared to their collection performances in January-June 2007.

According to the periodical report from the BOC, the bureau’s collection performance during the first six months this year grew by P133 million over its P1.68-billion record in the same period last year.

BOC’s collections were largely derived from duties and taxes paid by the Federal Express and other Subic locators trading in oil, motor vehicles and general merchandise.

The BOC office here also reported that that aside from its cash collection, the agency also posted a total of P2.3 billion in non-cash receipts, placing its combined cash and non-cash collections at a total of P4.1 billion.

In the same six-month period, the BOC said its collection performance peaked in June when it collected a total of P368 million. It also registered the biggest month-on-month percentage increase in June, with 40 percent or a variance of P130 million between the 2007 and 2008 figures.

Meanwhile, the BIR reported that its January-June 2008 collection record stood at P753 million, or four percent more than last year’s collection for the same period, which was P727 million.

The bureau’s receipts were derived from the income taxes of Freeport employees, profit taxes of locators, value-added taxes (VAT), as well as percentage taxes.

The BIR’s highest collection was recorded In April, when it received P210 million in taxes.

Arreza also expressed optimism that with the intensified marketing program undertaken by the SBMA, more companies could be expected to invest and create jobs in the Subic Freeport.

The growing number of business locators here would help boost the government’s revenue collection efforts as well, Arreza said. (SBMA Corporate Communications)

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Subic Bay, the New Windsurfing and Kiteboarding Mecca

A new kind of water sports was introduced here over the weekend by sports enthusiasts, who sought to help promote Subic as a year-round tourism destination.

Aptly called kiteboarding because it uses kite for propulsion and surfboard to ride out the waves, this water sports promises to lure into this free port more sports and adventure tourists who want some challenging, yet safe sports activity.

According to Araceli Araneta-Bradley, chairperson of Windsurfing Subic Bay (WSB), kiteboarding is a popular sporting event in the island of Boracay, although not “properly recognized” elsewhere in the country.

She said, however, that with her organization’s ties to international groups, the WSB and the Philippine Windsurfing Association (PWA) hope to make Subic another kiteboarding mecca.

“Subic has beautiful waters, which is very conducive to water sports,” Bradley noted during the opening here of the PWA-SBMA Windsurfing & Kiteboarding Speed Dash Open on Saturday.

“The players themselves would see and feel that Subic is a good venue to showcase their skills. The event will be a bigger one next time,” Bradley added.

The event, which is the fourth of a five-leg tour in the PWA’s 2008 sailing calendar, was joined by some 70 participants coming from other water sports centers like Boracay Island, Puerto Galera, Anilao, Lake Caliraya, Bacolod City and Marinduque.

The Philippine windsurfing team, which was a gold medallist in the recent SEA Games, also participated in the two-day skills contest.

Bradley said the winners in the kiteboarding events were: Tyron Mangakahia of Team Caliraya, novice class champion from New Zealand; Fele Kyanko of Team Boracay, ladies class champion; and Jay Ortiz of Team Caliraya, men’s class champion.

The judges also declared Doque delos Santos of Team Boracay as overall champion for kiteboarding, and Reneric Moreno, overall champion for windsurfing.

Kiteboarding, which first saw action here in Subic during the PWA-sponsored event, is expected to help boost Subic as a year-round tourism draw, said SBMA deputy administrator for tourism Raul Marcelo.

“What’s good about kiteboarding and windsurfing is that they could be held here under whatever kind of weather,” Marcelo noted.(SBMA Corporate Communications)

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SBMA Slaps Hanjin with Another Cease and Desist Order

Confronted with another fatal accident at the Hanjin Heavy Industries Corp.-Philippines (HHIC-Phil) shipyard here on Saturday, the Subic Bay Metropolitan Authority (SBMA) stopped operations of the Korean company on Monday and warned that it will impose further “legal and regulatory measures” should the shipbuilder fail to comply with health and safety requirements.

In a cease and desist order (CDO) issued by Atty. Ramon Agregado, SBMA senior deputy administrator for support services, the Subic authority told Hanjin to stop further activities and operations at its Assembly Shop C, the site of the latest accident.

The cease and desist order will be in effect for seven days.

Agregado also issued a seven-day CDO against Subic Han Sung Inc., a Hanjin subcontractor that employed Benje Gamolo, the latest victim of mishaps at the Hanjin facility, and ordered the firm to explain within 48 hours why its registration with the SBMA should not be suspended or revoked.

Agregado addressed the separate orders to HHIC-Phil president Jeong Sup Shim and Han Sung president Ryoo Kwon Taek on Monday.

According to SBMA investigators, the latest accident occurred on Saturday while Gamolo was working atop a beam at the Y2 section of the assembly shop.

An eight-ton girder assembly being lifted by a crane reportedly swayed parallel to Gamolo’s position and hit the victim’s back and left side of the body.

Gamolo, a 31-year old structural erector from Tatalon, Quezon City, died from the injuries the next day at the James L. Gordon Memorial Hospital in Olongapo City.

Agregado said the latest incident raises questions about compliance with occupational safety and health rules and regulations at Hanjin’s $1.6-billion shipyard, which has recorded a total of 13 fatal accidents since 2006.

He said that during the seven-day work stoppage, the SBMA and other concerned government agencies shall conduct a comprehensive and detailed inspection and investigation to determine whether HHIC-Phil Inc.’s Assembly Shop c is safe for the conduct of further operations.

“This shall be without prejudice to other sanctions, fines and penalties that may be imposed against HHIC-Phil Inc. as principal of Subic Han Sung Inc. should the latter be found guilty or remiss of its obligations to fully provide for the safety and health of its workers,” Agregado stressed.

At the same time, the SBMA official reminded Hanjin of the 30-day compliance period the agency has set jointly with the Department of Labor and Employment (DOLE) on June 18.

The DOLE-SBMA directive, Agregado said, required Hanjin to complete various occupational health and safety requirements, and to immediately enforce full compliance by its contractors, subcontractors, agents and other entities working in its premises.

“Should the 30-day period given to HHIC-Phil Inc. lapse without full implementation and compliance with all occupational health and safety requirements, SBMA shall be constrained to proceed with imposing the appropriate legal and regulatory measures to ensure the safety of all workers at HHIC-Phil Inc.’s shipyard and construction operations,” Agregado added.

This was the third time that the SBMA issued a work stoppage at the Hanjin project since the Korean firm began operations here in 2006.

Last June 20, the SBMA also slapped the Korean shipbuilder with a CDO after a steel formwork collapsed due to strong winds, killing one worker and injuring four others.

SBMA Administrator Armand Arreza, who ordered a suspension of work just minutes after the June 20 accident, had described the safety situation at the shipyard as “alarming” and warned that both Hanjin’s shipyard and construction operations would be suspended if the firm failed to comply with health and safety requirements.

Arreza had also recommended to the SBMA board the termination of contracts of three subcontractors who were found to have been remiss in implementing safety requirements at the project site. (SBMA Corporate Communications)

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SBMA Chairman Bats for Revival of Maritime Sciences

Subic Bay Metropolitan Authority (SBMA) Chairman Feliciano Salonga stressed the need to revive interest in maritime sciences on Friday, as Hanjin Heavy Industries Corp.-Philippines (HHIC-Phil) launched MV Argolikos, the first ship that the Korean shipbuilder has manufactured in its shipyard here.

Speaking in the sidelines of the formal naming ceremony for Argolikos, Salonga said that current developments in the maritime industry, especially in Subic, demand program upgrades in the education sector.

“The presence of Hanjin here, for example, should compel maritime schools to offer courses such as naval architecture, design and construction,” said Salonga, an engineering graduate of the United States Merchant Marine Academy (USMMC) and former president of the Philippine Shipyard and Engineering Co. (Philseco) in Subic, Zambales.

“There should be a renaissance in the maritime sciences if we are to enhance and sustain growth in the country’s maritime industry,” the SBMA official pointed out.

Salonga said that in support of the SBMA’s thrust to develop Subic as a premier maritime logistics and services hub in the Asia-Pacific region, the agency has initiated the creation last year of the SBMA Scholarship Foundation, Inc. (SBMASFI) to provide financial support to qualified college and post-graduate students, primarily those taking up maritime courses.

The foundation is headed by Salonga as chairman, with the board of trustees composed of SBMA Administrator Armand Arreza, Unesco Ambassador Preciosa Soliven, Hanjin director and general manager Jeong Sup Shim, Subic Services Terminal Inc. president Eduardo Aliño, Nicera Phils. Inc. general manager Takashi Morimoto, former SBMA director Jose Vicente Magsaysay, Keihin general manager Edgardo Austria, and Subic Drydock Corp. officials Catalino BondOc, Gerald Hammond and Victor Mamon.

The scholarship program covers fields such as maritime management, maritime engineering, business, finance, and other support disciplines like environmental conservation.

Salonga said the SBMASFI raised about P1 million last year through fund-raising activities in cooperation with the SBMA, business locators in the Subic Freeport, and local government units (LGUs) in the neighboring communities.

He said the foundation is now eyeing tie-ups with known maritime education schools both here and abroad, although “resource-building” would have to continue for another year before programs could be effectively carried out.

The foundation is headed by Salonga as chairman, with the board of trustees composed by SBMA Administrator Armand Arreza, Unesco Ambassador Preciosa Soliven, Hanjin director and general manager Jeong Sup Shim, Subic Services Terminal Inc. president Eduardo Aliño, Nicera Phils. Inc. general manager Takashi Morimoto, former SBMA director Jose Vicente Magsaysay, Keihin general manager Edgardo Austria, and Subic Drydock Corp. officials Catalino Bondic, Gerald Hammond, and Victor Mamon.

Salonga said there should be an emphasis on maritime education in the Philippines because the country produces more than 30 percent of the seafarers worldwide.

He added that Filipino seafarers should improve their edge over other nationalities and not settle for just being crew members of oceangoing vessels, since the international maritime industry would need at least 30,000 entry-level officers by 2010.

“If Filipino seamen could fill up these entry-level positions, the Philippine economy stands to gain about $200 million annually,” Salonga stressed.

The SBMA official also noted that Filipinos naturally excel in the maritime industry because the country is an archipelago.

“Given the knowledge and the technology, we can even build some of the biggest ships in the world — as Subic is now proving with the launching today of MV Argolikos,” Salonga said.

The 41,000-ton MV Argolikos, the first Subic-made vessel, is also the first container ship to be built in the country.

It was formally named by President Gloria Macapagal-Arroyo, prior to its delivery to the Greek shipping firm Dioryx Maritime Corp. sometime this month. (SBMA Corporate Communications)

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First Subic-made Ship Launched

President Gloria Macapagal-Arroyo has launched the first ship to be built in this Freeport by Hanjin Heavy Industries Corp.-Philippines (HHIC-Phil), calling it “a milestone achievement in shipbuilding” and a showcase of excellence for Filipino ship workers.

In the formal naming ceremony for MV Argolikos at the HHIC-Phil shipyard here, President Arroyo lauded the Korean shipbuilder and its workers for completing the 41,000-ton vessel six months ahead of schedule.

“We are elated and proud,” the President said.

“This very first ship that sails out of the Hanjin shipyard — the largest ever built in the Philippines — is a marvelous showcase of sound engineering and design. It brings pride to its owner, it brings pride to its creator, and it brings pride to us as the host of its creation,” she said.

“MV Argolikos shows off to the world the excellence of the Filipino workforce in building vessels sailing the seven seas,” she added.

Arroyo also said that the $1.7-billion Hanjin shipyard here is “a massive boost” to the country’s bid to be the best value for investment in Asia, with projected jobs expected to reach 21,000 during full operations.

She also noted that Hanjin is helping secure the country’s place as an attractive investment destination, and displays the Filipinos’ skills and work ethic.

In recognition of Hanjin’s contribution to the Philippine economy, President Arroyo conferred the Presidential Medal of Merit to Hanjin chairman Nam Ho Cho.

MV Argolikos, which is also the first container ship to be built in the country, will be delivered sometime this month to Dioryx, a Greek shipping firm that has placed the first six orders for ships to be built by Hanjin in Subic.

Reportedly costing $60 million, MV Argolikos has a cargo capacity of 4,300 TEUs (twenty-foot equivalent units), has a length of 258.9 meters, a width of 32 meters, a height of 19 meters, and an actual speed of 24.6 knots.

Hanjin officials said the ship has passed the required sea trials on May 29-29, and “performed well beyond expectations.”

“Today we now have all the components to become a major shipbuilding power in the ASEAN region,” Arreza said, pointing out that aside from Hanjin’s shipbuilding facility, the Subic area has two dry docks and ship repair facilities.

Arreza added that with the full operation of the Hanjin shipyard, the Subic Freeport expects to double its export production to about $3 billion annually.

In the same occasion, Dioryx chairman Dimitri Papadimitrou said the launching of the Argolikos ushers in “a new era for Hanjin and for the Philippines as well.”

“My company takes pride in being the first client of Hanjin,” Papadimitrou said, confirming that Dioryx has placed a total order of six container ships to be built in Subic. (SBMA Corporate Communications)

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PGMA to Name 1st RP-made Container Ship

President Gloria Macapagal-Arroyo is guest of honor on July 4's formal naming ceremony of the first ship to be built in this free port by Korean shipbuilder Hanjin Heavy Industries Corp.-Philippines (HHIC-Phil).

The ship, which will be named MV Argolikos, is also the first container carrier to be built in the country, said Subic Bay Metropolitan Authority (SBMA) Chairman Feliciano Salonga.

This ship is named after Argolikos, a small gulf located at the east coast of Peloponnese, Greece, which opens into the Aegean Sea.

Following the naming ceremony, the 41,000-ton carrier will be delivered to its Greek owner, the Dioryx Maritime Corporation.

Aside from President Arroyo, Korean ambassador Jong Ki Hong and Greek ambassador Georges Chrysostomos Nicolaidis are expected to attend the ceremony today.

She will be welcomed at the Hanjin shipyard here by HHIC-Phil chairman Nam Ho Cho, HHIC-Phil president Jeong Sup Shim, Sec. Edgardo Pamintuan of the Subic-Clark Alliance for Development (SCAD), Zambales Gov. Amor Deloso, and SBMA officials led by Salonga and Administrator Armand Arreza.

According to Hanjin officials, the MV Argolikos has a market price of about US$60 million.

It weighs 41,000 tons, has a length of 258.9 meters, a width of 32 meters, a height of 19 meters, and an actual speed of 24.6 knots.

The ship underwent the required sea trials on May 27-29, and “performed well beyond expectations,” said Pyeong Jong Yu, head of HHIC-Phil’s Outside Business Department.

Yu also said that prior to the sea trial, the vessel has been issued an attestation from the Bureau Veritas, a vessel certification agency.

Hanjin has also secured for the ship a cargo ship safety equipment certificate, a complete crew list, and a certificate of competency for the Korean crew from the Busan Regional Maritime Affairs and Fisheries Office, Yu added.

Salonga said meanwhile that the MV Argolikos has made local maritime history when it was completed six months ahead of schedule after the keel was laid in September last year.

He added that while Cebu was ahead of Subic in shipbuilding, after its Japanese-owned shipyard in Balamban began building ships in 1994, the largest ships will be built in the Subic Bay Freeport.

“This is where big ships for exports to other countries will be made,” he said.

Salonga also said that the Argolikos will just be the first of six units of container vessels lined up for delivery to Dioryx starting 2009.

He added that HHIC-Phil is also eyeing the manufacture in Subic of some of the largest container ships in the world, with gross tonnage of more or less 100,000 tons. (SBMA Corporate Communications)

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Taiwan Firms Keen on Subic IT Parks

Two leading Taiwanese electronic manufacturing firms will spearhead the establishment here of information technology (IT) parks to jumpstart Subic’s high-technology ventures in connection with rent-free incentives approved during the Philippines-Taiwan joint economic conference last month.

Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza said that Gongin Precision Industrial Co. Ltd., and the TECO Group of Companies have both expressed interest to build IT parks patterned after Taiwan’s progressive Nankang Software Park (NSP).

“We want Subic to move upstream into the electronic industry,” Arreza said. “Instead of the usual testing and packaging, Subic will now provide software design and manufacture complete electronic products.”

The NSP, which focuses mainly on software development, integrated circuit (IC) design and biotechnology, “would serve as a good model for Subic’s push to high value-added industries,” Arreza added.

According to initial talks with the SBMA, Gongin will set up a cluster of factories in a 10-hectare lot to produce precision tools and electronic products.

It will also introduce in this free port a one-stop-shop customer support concept for companies such as General Electric, Seneca, Applied Materials, Philips, Hitachi, Mitsubishi and TDK.

Gongin, which is a major player in Taiwan’s machinery and equipment industry, has core operations that range from high precision plating and stamping, to injection-forming molds for aerospace, opto-electronics, automation and semiconductor applications.

Arreza said that IT-related manufacturing firms in the Clark Freeport are in need of support industries to supply precision tooling for IC chips. Subic will create a cluster of suppliers of electronic parts and components, he said.

On the other hand, the TECO Group of Companies has committed to establish a software development park at Subic’s Redondo Peninsula to produce digitalized flat-screen television sets and components.

Arreza said that TECO, which is a leading manufacturer of home appliances, telecommunications equipment, IT systems, electromechanical components, and commercial electronics, also plans to use the Subic Freeport as staging area to train electronic engineers and software designers to fill up the manpower shortage in Taiwan.

“Taiwan does not have enough engineers to support its growth,” Arreza said, pointing out the reciprocal economic agreements that bolster the Philippine-Taiwan economic growth corridor.

TECO will be training Filipino engineers in Taiwan as part of an “inter-company transfer” scheme that will not be subject to Taiwan’s foreign workers quota, he added.

Arreza said the SBMA is bullish about the establishment of Subic’s IT parks after Philippine trade officials agreed to offer rent-free incentives in both the Subic and Clark free ports to high-technology firms from Taiwan.

The incentives, which will be good for five years in Subic and three in Clark, will apply to companies investing at least $25 million, he said.

Arreza said the proposed software parks will not only boost investments in Subic, but will also increase its export production and job creation.

He added that the Philippines should take the opportunity to attract more Taiwanese investments after Vietnam, which has been a leading destination for Taiwanese firms, has experienced a higher inflation rate.

Arreza also noted that China, another major investment center in Asia, has lately become “very selective” in terms of what businesses they would allow to come in.

“The Philippines, specifically Subic and Clark, should now grab this opportunity to go after these high value-added industries from Taiwan,” he said. (SBMA Corporate Communications)

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Subic Bags Top Tourism Marketing Awards

Serious efforts by the Subic Bay Metropolitan Authority (SBMA) to promote Subic as a major tourism destination paid off considerably when it won the top marketing award in the 2nd Philippine International Tourism Fair (PITF) held in Cebu over the weekend.

Team Subic Bay, headed by the SBMA Tourism Department and the Corporate Communications Group and boosted by 10 tourism companies here, received the “Best in Marketing Effort” award during the PITF awards night on June 28, besting more than 100 local and foreign exhibitors in the three-day tourism fair.

The award was presented by PITF 2008 chairman Angel Ramos-Bognot, who earlier joined Tourism Secretary Joseph Ace Durano and Cebu Gov. Gwendolyn Garcia in visiting Subic ’s exhibit booth.

Durano was “wowed” by both the concept and style of Team Subic Bay’s exhibits and presentations, said Raul Marcelo, SBMA deputy administrator for tourism.

Marcelo and other members of Team Subic Bay presented the crystal PITF trophy to SBMA Chairman Feliciano Salonga and SBMA Administrator Armand Arreza on Monday, pointing out that the event became a venue for tourism stakeholders in Subic to showcase Subic’s best.

Aside from the SBMA, Team Subic Bay was represented by operators of six hotels, three theme parks, and one golf course in the Subic Bay Freeport.

“The fair was all about marketing really,” Marcelo said. “We came out on top because we’ve been doing serious marketing for Subic tourism for a long time. This only proved that hard work really pays off.”

In addition to the exhibit booth, Team Subic Bay put up audio-visual presentations and performances by dancers and singers that depicted the culture of Subic’s indigenous Ayta tribe, said SBMA tourism department OIC Portia Zabala.

“We’ve come up with a lot of marketing gimmicks — raffle draws, giveaways, mascots, and the SBMA Day. Perhaps these gave us the critical mass to clinch the award,” she added.

Salonga and Arreza, meanwhile, remarked that the PITF award only shows how serious the SBMA is in its efforts to strengthen Subic’s tourism industry.

“We consider tourism as a cornerstone of Subic’s attraction as an investment and commercial hub, and we’re aiming to bring this industry to a higher level by working closely with business locators and tourism stakeholders,” Arreza said.

“That’s the Subic spirit,” Salonga added. “Our tourism people used Subic’s natural attractions — which is a gift of Nature — and turned it into a winnable resource. Nature has helped a lot in our marketing efforts.” (SBMA Corporate Communications)

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Subic Offers Three-Month Rent-Free Perks to Hi-Tech Investors

In addition to a generous incentives package to investors here, the Subic Bay Metropolitan Authority (SBMA) will now offer rent-free locations to Taiwanese companies engaged in high-technology ventures.


According to SBMA Armand Arreza, the rent-free incentive was agreed upon during the joint economic conference between Taiwan and the Philippines.

During the conference, Philippine officials led by Trade Undersecretary Thomas Aquino also forged an agreement with Taiwanese counterparts to grant Taiwanese manufacturers in Subic and the nearby ClarkFreeport reduced tariffs under the ASEAN Free Trade Area’s common effective preferential tariff scheme.

Taiwanese experts, meanwhile, will be sent to the Philippines to assist in training integrated circuit designers, according to the same agreement.

The rent-free incentive, which will apply in the Subic and Clark freeports, will be good for 3 to 5 yearsand will cover firms that will each commit a minimum investment of US$25 million, Arreza clarified. He said the inducement was meant to spur the entry of more high-technology firms in the hope of putting the country’s technological capability at par with major Asian economies.

“This is the logical next step that we have to take,”said Arreza, who joined the Philippine investment mission to Taiwan on June 12-14.“We’ve been pushing to attract companies in information and communication technology, software design, biotechnology and the like, and this new incentive is a concrete manifestation of our intentions to build our capabilities and be globally-competitive,” he added.

According to Taiwan’s Ministry of Economic Affairs,there are now 79 Taiwanese firms in Subic, with total investment commitments worth US$780 million. In Clark, eight Taiwanese companies have put up ventures worth US$360 million. SBMA records, meanwhile, put Taiwanese firms as the second biggest investor group in Subic in terms of investment value.

Arreza said that with the new rent-free incentive, the SBMA hopes to realize its long-term “Cyber-Subic”program, which focuses on developing ICT facilities in Subic and roping in investors in the so-called knowledge industries.

He said that the agency has already reserved locations for ICT industrial clusters in coordination with the Subic Bay Development and Management Corp. (SBDMC),owner of the industrial park where most Taiwanese firms in Subic are now located. (SBMA Corporate Communications)

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Subic Day at the Philippine Int’l Tourism Fair

Tourism Secretary Ace Durano takes time to pose at the Subic Bay Freeport booth along with Jungle Joe and the SBMA delegates led by Deputy Administrator for Tourism Raul Marcelo during the Philippine International Tourism Fair (PITF) at Cebu International Convention Center in Mandaue City, Cebu.

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Philippine Labor Department clears Hanjin

The Department of Labor and Employment says Hanjin Heavy Industries Construction Co. Ltd. was not to blame for a shipyard accident last week.

An investigation undertaken by DoLE showed that the accident was a case of “force majeure” or circumstances beyond the control of the company. The results of the investigation were made known Friday. Hanjin vowed to strictly implement DoLE recommendations to achieve a “zero accident” status in its shipyard.

In a report to Region III Director Nathaniel V. Lacambra on June 22, the DoLE investigating team headed by Alvin M. Villamor, DoLE assistant regional director for Central Luzon, said “strong gusty winds caused the steel forms to fall over the workers who went there to shield themselves from the rain.”

”This initial inspection showed that there were no other factors that caused the collapse of the said forms other than the strong winds,” the report added.

The DoLE team conducted the investigation within 24 hours of the June 20 accident that killed Mario Atrero, 52, an employee of HHIC, and injured four other workers identified as Joel Alido, Darvin Silva, David Alcayaga, and Leody Abad.

Meanwhile, the Hanjin management welcomed the DoLE findings and announced that it will “strictly take action” on DoLE’s safety recommendations. Jeong Sup Shim, president of HHIC-Phil Inc., said the company is committed to strictly observe and strengthen its declared occupational safety and health policy, reinforce the safety monitoring of subcontractors and put emphasis on the orientation of workers on personal safety precaution. (SBMA Corporate Communications)

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SBMA okays P9.3-B new investments in Jan-May 2008

Subic Bay Metropolitan Authority approved 85 new projects with investment commitments of $210 million, or about P9.32 billion, from January to May this year.

"If this trend keeps up, we can hope to breach the $1-billion mark this year, just like we did in 2006 and 2007" says Freeport administrator and chief executive Armand Arreza in a statement.

Arreza says about 94 percent of the commitments, or about $199 million, were foreign direct investments. The number of projects approved this year, he added, was higher by 52 percent than the 56 business ventures approved in the same period last year.

"We are now eyeing the continued growth of investments by Korean firms, and adding to that the expected resurgence of big-ticket investments from Taiwan, I'd say that our confidence level remains high that we can again reach the billion level this year," Arreza says.

Data from the SBMA Business Group showed that Korean companies continued to provide the biggest investments in Subic, with shipbuilder Hanjin Heavy Industries Corp.-Philippines pouring in $1.6 billion over the last two years.

Subic Neocove Corp. topped the list of biggest investors in the first five months of the year. Subic Neocove is putting up a resort facility and other tourism-related projects with an initial budget of $175.2 million.

Hanil E&C Subic Inc., which pledged $11 million to develop and construct medium- to high-rise commercial residential buildings, and Hanafil Golf & Tour Inc., with initial commitments of $3 million to redevelop the 18-hole Subic golf course, placed the second and third biggest investments for the period, respectively.

Other big investments were that of Palmgold International Ltd., with committed investments of $1.94 million; Grand Pillar International Development Inc. with $1.9 million; Buma Subic Development & Management Corp. with $1.5 million; World HDGD Federation Philippine Association with $1.22 million; Philkor Utopia Corp. with $1.2 million; Janburlai Corp., M. Waseem International Corp., and Ta Zon (Phils.) Color Paper Corp. all with $800,000; and Kumboindustry Corp. with $725,000.Among the biggest new investors, World HDGD Federation Philippine Association is Filipino-owned. It will construct and develop a training facility, complete with facilities such as gym, sauna, spa and restaurant.Meanwhil e, Ta Zon-Philippines, which will venture in imports and exports, manufacture, assembly and printing of corrugated boxes, cartons and other packaging materials, is a Taiwanese enterprise. (SBMA Corporate Communications)

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Freeport Service Corporation Goes Lean & Mean

The Freeport Service Corp. (FSC), the wholly owned subsidiary of the Subic Bay Metropolitan Authority (SBMA) providing manpower and allied services needs of the Freeport and its locators, is optimistic of attaining profitable operations for this year.

Antonio S.Chan, FSC president and SBMA senior director, expressed confidence over the weekend as he announced FSC's new profit-oriented projects, boosting existing tourism facilities managed by the firm such as the full promotion of its beach resorts at the Cubi Point area, namely Dungaree and All hands and the eco-tourism Jungle Survival theme park(JEST).

FSC undertook a major reorganization of its top management following the death of Ret. Lt. Gen. Jose Calimlim, who headed the FSC as president since 2004. Chan, who held various posts at SBMA and currently a member of the SBMA Board of Directors, has been tapped to head the service oriented subsidiary.

Chan's first task upon assuming the post was to reduce the administrative staff of FSC from 710 people to 266. Chan explained that out of 710, about 280 employees availed of the voluntary retirement package offered while the others' employment contracts expired and were not renewed.

With a "lean and mean" support staff, FSC was able to reduce its huge monthly payroll budget amounting to P2 million, which was a big drain on its revenues. Aside from the administrative staff, FSC also provides 1,800 to 3,000 of the workers to SBMA, handling office and environment activities of the Freeport.

Moreover, after five months of Chan's leadership, FSC has achieved more than P30 million in revenue earnings from a zero balance, aside from its debt servicing with the Land Bank and its fuel suppliers. FSC operates two gas stations at the Freeport, which incurred huge losses under the former management.

In view of the increasing number of locators at Subic, FSC management is going into the outsourcing business to hasten the manpower needs of foreign and local firms setting up activities at the Freeport. (SBMA Corporate Communications)

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