Japanese industrial park to double dividends for SBMA

Japanese developer partners at the Subic Techno Park (STEP) have agreed to double the dividend payments for the Subic Bay Metropolitan Authority (SBMA), which will amount to almost US$1-million.

This was revealed by SBMA Chairman and Administrator Jonathan D. Tan. The consensus came about during a STEP board meeting held in Tokyo, Japan on November 17, 2023.  STEP is a Joint Venture Agreement (JVA) between the SBMA, Japan International Development Organization (JAIDO) and Toyo Construction Co. Ltd. (TOYO) that was executed in April 1996. The JVA was executed for the planning, development, construction, operation and maintenance of STEP’s 74-hectare industrial estate inside the Subic Bay Freeport Zone.

As agreed in the JV, SBMA will maintain the 49.97% share equity and Japanese developers led by STEP President Ichiro Tsuji and his associates will have 50.03% equity.

Moreover, Tan cited that last year, the SBMA only received dividends of almost half million USD from STEP. This year, the official shared that the agency stands to receive dividends in the amount of $999,333.64.

Chairman Tan and SBMA Director Kenneth G. Rementilla led the SBMA delegation during the Tokyo board meeting recently. The two represented the agency and are nominees to the STEP.

President Tsuji disclosed that over the years, STEP has worked diligently to achieve its vision as evidenced by the presence of eight major Japanese locators and ten smaller companies, collectively occupying more than 70% of the leasable areas within the industrial estate.

“This, in turn, has led to the employment of approximately 10,000 local and foreign workers, who significantly contribute to the growth of the local economy,” he added.

Meanwhile, companies inside the STEP are now expanding their operations due to the Corporate Recovery and Tax Incentives for Enterprises Act (Create) law. One of the companies, Nidec Subic Philippines Corporation, is set to generate employment from its P4.2-billion expansion project in this Freeport.

Nidec Subic President Takeshi Yamamoto said that the company’s expansion project is already seen to generate close to 5,000 jobs until the last incentivized year as the Japanese manufacturing firm currently has a workforce of 622.

Japanese firm Sanyo Denki also held a groundbreaking for a 30-hectare complex for its US$10 million expansion of its computer parts manufacturing this year inside the STEP. Sanyo Denki is expected to hire additional 1,000 workers initially for the production of computer parts that are exported globally. (MPD/SBMA)

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Senate gives SBMA's 2024 budget a speedy nod

Without any hesitation, the Senate has approved the proposed budget of P681 Million for fiscal year 2024 of the Subic Bay Metropolitan Authority (SBMA) during a plenary session at the Senate of the Philippines on Tuesday.

The proposed budget sponsored by Senator Joseph Victor Ejercito was approved without further interpolation by the Senate during Plenary Session No. 30 presided by Senate President Senator Juan Miguel Zubiri.

According to Ejercito, the recommended appropriations for the SBMA for fiscal year 2024 will focus primarily on the rehabilitation of Subic Bay Freeport and its facilities, and will fund two continuing projects, mostly road and infrastructure projects.

Minority Floor Leader Senator Koko Pimentel readily approved the proposed budget citing that he will no longer post questions regarding the said budget stating that it was a reasonable amount of subsidy.  

Senator Pimentel also expressed his admiration for SBMA Chairman Jonathan D. Tan noting the official’s friendly, pleasant and unassuming disposition, and as a former mayor, Sen. Pimentel said that Tan is competent to run the Freeport zone.

Pimentel also shared that the SBMA Chief also revealed his plans on how to fight smuggling “to the fullest extent of his authority as SBMA Chairman and Administrator.”

Meanwhile, Senate President Zubiri said that the Senate is in the process of amending the CREATE law purposely to return the powers to the economic zones which is now a priority measure of President Ferdinand Marcos Jr.

He added that the Ways and Means committee of the House has just passed and approved the version, “which basically brought it back to the old regime, because the new regime was not working unfortunately.”

He then congratulated the SBMA for the two-minute interpellation and approval of the Agency budget. (MPD-SBMA)

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SBMA takes over leased land of erring truck trading company

In consonance with the objective of President Ferdinand R. Marcos, Jr. to attain increased economic activity, Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Jonathan D. Tan has adopted a position to buckle down on erring locators, giving way to upright investors for more revenues and employment opportunities.

Earlier today, the agency Chief thru SBMA Senior Deputy Administrator Atty. Ramon Agregado led the repossession of the leased premises of the Nile Niigata Subic, a truck trading company located along Boton Highway, Subic Bay Freeport Zone.

In a letter to Nile Niigata President Muhammad Kafeel, Chairman Tan cited that the lease term of the company had already expired last January 31, 2022.

He further noted that the company has unsettled accounts with the SBMA amounting to almost P5Million. The said arrears represented the company’s unpaid lease rentals, Common Use Service Area (CUSA) fees, and the five percent share of the Aeta indigenous cultural community which had already accrued interests and penalties as of November 8, 2023.

Tan also mentioned that despite the foregoing defaults, he granted a final grace to fully settle their outstanding obligations and comply with the rules of the SBMA, on or before October 31. “Unfortunately, they failed to make a settlement despite the utmost liberality the SBMA has extended,” he added.

“While we try to understand the financial predicament of our locators, still, this is a business we need to run efficiently for our stakeholders and the country in general. This is why we are hell-bent and determined now more than ever, on taking over properties of erring locators so we can offer them to other legitimate companies that can help steer the country’s economy on an upward trend. The “how” is called “tough love.”

Nile Niigata was engaged in trading, import and export of trucks, buses and heavy equipment, including spare parts. It is also into trading of industrial construction and agricultural machineries and equipment, including conversion and repair parts. The company occupied 1,588 square meters of area of leased property, with a direct lease with the SBMA. (MPD-SBMA)

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Smuggled vegetables seized in Subic Freeport

In line with the mandate of President Ferdinand Marcos Jr. to run after agricultural smugglers, the Subic Bay Metropolitan Authority (SBMA) and the Bureau of Customs (BOC) Port of Subic apprehended nine 40-foot container trucks at the Port of Subic on Wednesday.

SBMA Chairman and Administrator Jonathan D. Tan, who personally went to the Freeport's container terminal for the inspection, said the nine containers were all declared as frozen lobster balls, which were consigned to Rianne Food Products.

The SBMA Chief added that the seized cargo arrived on November 3 with a declaration that the shipments all  contained at least 40, 000 cartons of frozen lobster balls.

Tan revealed that upon cargo check, the SBMA and the BOC found that the shipments contained fresh potatoes, carrots, radish, and broccoli in the amount of more than 42.6 Million Pesos.

The BOC Port of Subic seized the misdeclared shipments for proper disposition and appropriate action. Six other containers, also consigned to the same company, will be subjected to the same inspection procedure by the port authority and the customs bureau.

Meanwhile, Chairman Tan lauded the vigilance of the two agencies, stating that both the SBMA and the BOC Port of Subic are very much serious in implementing the President's mandate to go after agricultural smugglers and end illicit trade in the country. (MPD-SBMA)

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SBMA Chairman warns unscrupulous traders to follow protocol or get banned

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Jonathan D. Tan warned port users here engaged in truck trading to follow protocol or get banned from doing business inside the Freeport.

Chairman Tan in a meeting with 100 stakeholders on Thursday said that the agency is clamping down on illegal activities that are proliferating in the Freeport.

One of the most common is underdeclaration of the weight of shipped trucks to reduce the payment of their duties and taxes. Also common is the fraudulent upgrading of the trucks' year model through bribery, aside from the irregular shortening of process time or skirting of port policies by truckers who want their shipments processed earlier than scheduled.

“This is a fair warning to everyone. The President told me to give you a chance, he told me to save the truck industry. The processing of imported trucks should be done as stated by law,” he said.

“Most of the truckers here use bribes to speed up the processing of their papers. We will stop this illegal activity and will abide by the process on the releasing of trucks,” he added.

The SBMA is in the process of procuring a weighing scale that will be used on November 15, providing the agency equipment to determine the actual weight of imported vehicles and improve the deterrence of illegal activities in the port area.

“You have until November 15 to straighten your businesses or we will revoke your permit. This order is coming from the President, and I will coordinate with BOC Commissioner Bienvenido Rubio to ensure that you are all following the protocols,” he said.

The agency chief further admonished that no one should ask for money using his name, that he will give his number to the truckers so that if anyone tries to ask for money, they can contact him.

Tan said that for the past 30 plus years, this has been the norm in the Subic Freeport, adding that things will be different. “Ngayon bago na, kung hindi niyo magawa ng tama yan, I will have to revoke your permit,” he concluded. (MPD-SBMA)

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11 cruise ships to drop anchor at Subic Freeport after 3-year hiatus

The tourism industry is now on its feet as a cruise ship from Xiamen, China made its maiden voyage to the Subic Bay Freeport with a thousand passengers.

The Blue Dream Star is the first luxury vessel of the eleven scheduled voyages to drop anchor at the Freeport from October 12 to November 21, 2023.

The said cruise line is the first to offer outbound cruises from China since the onset of the pandemic.

The arrival of this cruise ship was made possible through the determination and keen efforts of SBMA Chairman and Administrator Jonathan Tan, whose thrust is to boost the tourism industry in the Freeport. 

Yesterday, Malacañang issued Executive Order Nos. 271 and 72 regarding the admission and stay of foreign nationals in the Subic Bay Freeport Zone as Temporary Visitors, who can stay for a maximum period of 14 days.

Ten more cruise ships are expected to arrive at Subic Bay bringing approximately 20 thousand tourists to the Freeport. (MPD-SBMA)

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SBMA hosts 1st Central Luzon Sustainable Tourism Summit

About 400 individuals from various sectors attended the 1st Central Luzon Sustainable Tourism Summit at Subic Bay Exhibition and Convention Center.

This is a project of the Subic Bay Metropolitan Authority Tourism Department, in partnership with the Department of Tourism (DOT) and Tourism Promotions Board.

In his message, DOT Regional Director Richard Daenos emphasized that sustainable tourism is a commitment.

“Sustainable Tourism is no longer just a concept but a commitment we make to the environment, our communities, and future generations,” he said,

Daenos furthered that tourism becomes a force for good if it benefits local economies and empowers the people and the planet.

Anchored on the theme "Practical Approaches Towards a Greener Philippines", the two-day event provided an avenue for industry experts, visionaries, and other partners to spark dialogues and educate on the topics circling sustainable tourism.

Among the highlights of the summit was the Central Luzon activation of Bisita, Be My Guest (BBMG) of DOT and Department of Migrant Workers.

BBMG is an incentivized promotional campaign wherein Filipinos, especially Overseas Filipino Workers and Overseas and Former Filipinos, who invite foreigners to visit the country will be entitled to a raffle ticket and have a chance to win special prizes.

It will run until April 30, 2024. (SNL)

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SBMA repossesses former Duty Free Shop for multiple violations

The Subic Bay Metropolitan Authority (SBMA) has taken over the property of Duty Free Superstore, Inc. (DFSI) on Wednesday as the agency continues to clamp down on companies with contractual defaults.

The DFSI formerly occupies Building 332 and its adjacent lot at Burgos St., Naval Station. With an area of 651 square meters, while the adjacent lot has an area of 463 square meters.

Duty Free Superstore Inc. has a contractual default of non-payment of lease rentals, common use service area (CUSA) fees, and other charges that amounted to P15,932,595.16 as of March 2017.

“We conducted a clearing/ transfer of personal properties from the premises,” SBMA Chairman and Administrator Jonathan D. Tan,

The company has a lease agreement with the SBMA dated September 16, 2003, with a 25-year lease term that should have ended on September 15, 2028. The building and the adjacent lot was previously repossessed by the SBMA Legal Department on April 11, 2017.

Duty Free Superstore, Inc. has subsequently filed a Petition for Voluntary Insolvency at the Olongapo City Regional Trial Court, which was dismissed on September 2, 2020.

We want to continue with our thrust to repossess and reutilize idle lands inside the Freeport to promote a more efficient and vibrant business climate here,” Tan added.

During a hearing with Senator JV Ejercito, Tan said that the agency has currently repossessed 10 parcels of unused land, with 20 more lined up for repossession, adding that the agency is conducting audits to ensure business vibrancy at the Freeport. (MPD-SBMA)

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Senate lauds SBMA Chief for new policies in the Freeport

Deputy Majority Floor Leader Senator Joseph Victor ‘JV’ Ejercito during the latest senate budget hearing on Thursday publicly congratulated Subic Bay Metropolitan Authority Chairman and Administrator Jonathan Tan for introducing new policies that will shape a brighter and more vibrant future for the free port.

Ejercito particularly cited the land auditing and repossession of properties of erring locators.

“Congratulations on your efforts to steer Subic Bay Freeport into becoming an active catalyst for economic growth and development. I am confident that Subic will soon regain its once brilliant past!” Sen. Ejercito said.

Since Chairman Tan assumed office, he has been working on various initiatives which include the audit and repossession of erring locators. Aside from this, he is also keen on implementing a streamlined business process in compliance with the Ease of Doing Business Act to attract more investors, increase revenues and generate more employment. He has also ordered the strict monitoring of illegal trade and the conduct of anti-smuggling activities.

Tan assumed office in May this year and has been working with an open door policy since then. His office warmly welcomes locators with various concerns and finds resolutions to them.

Tan is extremely keen in going after landbankers and erring locators. He also introduced the EASE OF DOING BUSINESS in the freeport to bring more investors in.

Chairman Tan expressed his sincere gratitude to the Senate particularly to Sen. Ejercito for acknowledging the effort his administration has initiated. Tan promises a more dynamic and investor-friendly SBMA in the days to come. (MPD-SBMA)

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911 emergency hotline launched in Subic Freeport

In line with the agency's SMART Subic Project, the Subic Bay Metropolitan Authority (SBMA) inaugurated the Go Live SBMA 911 at this premier Freeport on Thursday morning.

According to SBMA Chairman and Administrator Jonathan D. Tan, the Go Live SBMA 911 is part of the Philippine Emergency Hotline 911 and is in partnership with the Department of Interior and Local Government (DILG) and the IC Bestlink Telecoms Corporation.

Tan led the inauguration of the Go Live SBMA 911 along with DILG Patrol 911 Executive Director Diosdado T. Valeroso and IC Bestlink Telecoms Corporation officer Danny Dela Cruz at the Regulatory Building of the agency.

“I am excited for the activation and full operation of the Philippine Emergency Hotline 911 here in Subic Bay Freeport, in partnership with the DILG. This will make our emergency response assistance more efficient and systematic,” he said.

“Likewise, with the training received by SBMA employees from the DILG, I am confident that they are more competent, capable, and prepared to handle and respond to emergency situations anytime,” he added.

The DILG Community Development Team conducted the said training to employees from various SBMA departments involved in emergency response such as the Telecommunications Department, Law Enforcement Department, Fire Department, and the Public Health and Safety Department.

The Go Live SBMA 911 is a prelude to the implementation of the SMART Subic Project currently being conceptualized by the agency. “We want a safe and secure community in the Freeport, and we can achieve this by turning our community into a Smart City,” Tan said.

The official also cited that the agency will continue to protect investors and businesses, employees, workers, residents and other stakeholders of the Subic Bay Freeport. (MPD-SBMA)

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Royal Canadian Navy in Subic Bay Freeport for goodwill visit

The Royal Canadian Navy (RCN) docked at the Rivera Wharf in this premier Freeport Thursday (Sept. 14) for a goodwill visit as part of Canada’s defense engagement in the Indo-Pacific region.

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Jonathan D. Tan, together with Ambassador of Canada to the Philippines David Bruce Hartman, welcomed the ship and its crew.

His Majesty’s Canadian Ship (HMCS) Ottawa (FFH 341), a Halifax-class frigate of the Royal Canadian Navy will be here until September 19.

According to Ambassador Hartman, HMCS Ottawa is the first of the three Canadian ships to visit the Philippines this month.

“The arrival of HMCS Ottawa is a demonstration of the close and growing relationship between Canada and the Philippines, and of Canada’s commitment to stability and security in Southeast Asia and the broader Indo-Pacific region,” Hartman said.

The official added, that as maritime nations, Canada and the Philippines share a common interest in upholding a rules-based international order and maintaining a free and open Indo-Pacific.

Hartman also disclosed that during HMCS Ottawa’s visit to Subic Bay, a full program will be executed including professional development opportunities with the Philippine Navy, community outreach, and local engagements including a fun run and an exchange of the ship’s cooks. Port visits are ideal occasions for our sailors, soldiers, and aviators to explore and strengthen the deep connection that Canadians have with the Indo-Pacific through its people.

Commander Samuel Patchell, Commanding Officer of HMCS Ottawa, said, “Through our ongoing engagements in the Indo-Pacific, the Royal Canadian Navy is reinforcing partnerships with navies from across the region. I look forward to working closely with the Philippine Navy throughout our visit to Subic Bay in pursuit of our shared goal of a free and open Indo-Pacific.”

HMCS Ottawa continues the tradition of RCN ships visiting the Philippines, after HMCS Vancouver’s successful visit last year. HMCS Ottawa has been deployed since August, and Subic Bay is its second port visit. Throughout the last quarter of 2023, HMCS Ottawa will conduct forward naval presence operations, cooperative deployments and participate in international naval exercises with partner nations.

“These activities build interoperability between Navies, while reaffirming our shared commitment to a free and open Indo-Pacific,” Patchell added.

Meanwhile, a second Canadian vessel, the MV Asterix, an auxiliary supply vessel leased to the RCN, will also arrive in Subic Bay on Saturday, September 16.  The Asterix has been in and out of the region since March, 2023 to provide replenishment and resupply services to RCN ships.  The Asterix supports RCN vessels with capabilities in at-sea oiler replenishment, aviation support, medical and humanitarian assistance and disaster relief, among others. 

Also, a third Canadian ship, HMCS Vancouver, will arrive in Manila at the end of the month. 

HMCS Ottawa, together with an embarked air detachment operating a CH-148 Cyclone helicopter, has 250 highly trained and professional sailors, soldiers, and aviators. It is one of twelve Halifax-class frigates of the RCN. The ship is equipped with extensive anti-submarine warfare and anti-surface warfare weapons and sensors to complement their substantial anti-air warfare defenses. The combination of these weapon and sensor systems, coupled with state-of-the-art damage control and machinery control systems, makes these frigates one of the most advanced warship designs in the world.

The ship’s namesake is the City of Ottawa, the capital of Canada, where approximately 15,000 Filipinos and Filipino-Canadians reside. (MPD-SBMA)

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SBMA repossess 3 more properties of erring locators

True to its mandate of utilizing land areas efficiently, the Subic Bay Metropolitan Authority (SBMA) has taken over three more properties inside this premier Freeport on Tuesday.

According to SBMA Chairman and Administrator Jonathan D. Tan, the agency took over two buildings from Parabion, Inc. at the Cubi Triboa District within the Subic Bay Freeport Zone, adding that the area has a size of 1,176 square meters.

“The company has committed contractual defaults that prompted the SBMA to take over their properties. One is failure to comply with development commitments, and two for non-payment of lease rentals and Common Use of Service Area (CUSA) fees,” he said.

The company has amassed a debt in CUSA close to 10 million pesos as of July 28 of this year.

“We already sent them a final notice of default with demand to pay on November 22, 2022, then we sent them a notice of pre-termination and repossession on July 28 that was served on August 10. This is pursuant to SBMA Board Resolution No. 23-07-0173 that was approved last July 4,” Tan added.

Tan also pointed out that the agency took over Bldg. 8321 along Zambales Highway, Cubi Triboa District, and Bldg. 8359 along Bataan Road, also in the Cubi Triboa District.

The third property that was taken over by the agency was owned by Ramphos Corporation, a company that manufactures and sells amphibious ultralight aircraft.

The property is a 966-square-meter portion of Bldg. 8045-C at the Subic Bay International Airport (SBIA).

The company has an expired lease agreement with the SBMA since September 11, 2020, prompting the eventual take over by the SBMA last September 5, 2023.

The chairman confirmed that the company has contractual defaults such as non-payment of lease rentals (building spaces), CUSA fees, ACC and SOA fees amounting nearly PhP10 Million as of July 28 of this year.

The SBMA chief urged companies inside the Subic Bay Freeport to pay their dues diligently to ensure their seamless business operations inside this premier Freeport. (MPD-SBMA)

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First - ever hybrid workspace in Zambales opened

The first-ever hybrid workspace in Zambales has opened at the Pacific Ace Building in this premiere freeport on Thursday. 

SBMA Chairman and Administrator Jonathan D. Tan, International Workplace Group (IWG) Country Manager Lars B. Wittig and Pacific Ace Subic Bay Corporation (PASBC) President Virginia S. Dio led the ribbon-cutting ceremony of the Regus Subic center at the Pacific Ace Building.

The Regus Subic center is the first-ever hybrid workspace in the Subic Bay Freeport Zone. It is located at the second floor of The Gardens by Pacific Ace.

Tan said that the establishment of shared workspace inside the Subic Bay Freeport Zone would entice more companies to locate here while initially testing the waters before going full-scale. “This shared workspace provides investors a platform for exploratory activities before deciding on whether they will be expanding to a bigger facility or undertake something else,” he said.

The Agency chief also lauded the efforts of IWG and Pacific Ace in establishing this virtual platform while incorporating the “green advocacy” of PASBC President Dio. 

“This will help startup companies to grow as the Regus Subic center shared workspace becomes an incubator that provides them an area to grow and develop before investing heavily in Subic Bay Freeport,” he added.

Meanwhile, Pacific Ace President Dio said that the shared workplace consists of co-working desks, meeting rooms, and private offices. She added that the Green Building is environmentally responsible to lessen the negative impact of our footprint to the environment.

“We provide a superior indoor environment that can enhance air and water quality to improve health, productivity, and the energy of the people in the premises. Such conditions are certainly conducive not only to its users but more importantly, to the environment,” she said.

The shared workspace inside the Green Building includes co-working desks, meeting rooms, and private offices. The area bears a design that has a green center with live decorative plants. It is located at the Central Business District (CBD) area of the Subic Bay Freeport Zone.

“Subic Freeport is a strategic location that we have targeted for expansion since the opening of Regus (shared workplace) in Clark Freeport in 2015. Clark is the gateway, driving from Metro Manila in the northern direction, and Subic is the logical extension that offers excellent logistics, free port and development zones in the same manner as Clark,” Wittig said. 

He added that with the inclusion of Subic Bay Freeport in the Regus brand of IWG, we can expect more investments and developments in this premier Freeport since the location will be a most valued addition to the IWG network. 

IWG is the global leader in hybrid work solutions and workspace brands. The company utilizes hybrid working platforms to increase productivity, efficiency, agility and market proximity of its clientele. It has a network coverage that includes 3,500 locations across more than 120 countries and 83 percent of Fortune 500 companies are part of their customer base. (MPD-SBMA)

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₱4-B Nidec Subic Investment to generate close to 5,000 jobs in the Freeport

Nidec Subic Philippines Corporation will soon be opening approximately 5,000 jobs from its expansion here in Subic Bay Freeport.

This was disclosed by Nidec President Takeshi Yamamoto in a simple awarding ceremony of the Certificate of Registration (COR) with Incentives under the CREATE law to Japanese company Nidec Subic Philippines Corporation for its ₱4.2-billion expansion project.

While Nidec Subic currently has a workforce of 622 employees, the company’s expansion project is expected to generate close to 5,000 job opportunities until the last incentivized year.

Yamamoto proudly shared that the company chose Subic Bay Freeport for its expansion due to its strategic location, making it possible for them to market their product to the European Union, United States, Brazil, Korea and China.

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Jonathan D. Tan led the simple ceremony, together with Senior Deputy Administrator for Business and Investment (SDA) Renato Lee III and Business and Investment Department (BID) for Manufacturing and Maritime manager Karen Magno, in awarding the COR to Nidec Subic President Yamamoto and General Manager Marissa Tamayo.

Tan explained that Kinematix is a new product that is a high accuracy gearbox used as base, arm or shoulder for industrial robots for auto tool changer/ loader of machines. He added that the aim of the expansion of Nidec Subic Philippines is to produce these gearboxes outside of Japan.

“This is certainly a milestone for Subic Freeport as this new product will be solely manufactured by Nidec Subic,” the official cited, adding that these gearboxes will be “Gawang Pinoy.”

He further stated that this is the first expansion of the company outside of Japan which was made possible due to the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) law, revealing that the tax incentives have made it easier for them to expand in the Philippines.

Lee explained that the CREATE law has enabled the granting of the company tax incentives namely: a six-year income tax holiday; ten-year special corporate income tax; 16-year Customs Duty Exemption on Importation of Capital Equipment, Raw Materials, Spare Parts and Accessories; 16-year value-added tax (VAT) zero-rating on local purchase; and a 16-year VAT exemption on importation.

Meanwhile, Tamayo also averred that the company decided to expand its operations in the Philippines because of its highly-skilled and resilient Filipino labor force, plus the fact that the Philippines is an English-speaking country.

Nidec Subic is a Japanese manufacturing company that was established inside Subic Freeport on July 14, 1998. It is located at the Subic Technopark, Argonaut Highway, Boton Area, occupying a total of 96,472 square meters of land area.

The expansion project dubbed as Project Kinematix aims to manufacture and assemble medium to large size gearboxes for industrial robotics gears. Valued at ₱5.065 billion, Nidec will be directly exporting 100% of its annual production of 288,000 gearboxes overseas. (MPD-SBMA)

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SBMA hosts the Guinness World Record for the Largest Car Horn Ensemble

An ensemble of 1,077 Ford Everest sports utility vehicles (SUVs) made its way to the Subic Bay International Airport (SBIA) over the weekend in a convoy to highlight an important milestone.

Ford Everest Club Philippines (FECP), a mid-size SUV club with 15,000 active members and one of the largest and most active car clubs in the country, succeeded in its attempt to smash the Guinness World Record for the “Largest Car Horn Ensemble.”

“Today, Ford Everest Club Philippines not only created an awe-inspiring symphony of horns, but also brought excitement along with the unique experience that came with it. I am thrilled and delighted to have witnessed and become a part of this event,” said Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Jonathan D. Tan during the awarding ceremony at the SBIA tarmac.

An estimated crowd of 5,000 club members, their families, organizers, sponsors and spectators took part in the event, visitor arrivals peaked before, during, and after the event.

Tan also shared that the attempt kicked off at the New Clark City Aquatics Center where the 1,077 Ford Everest SUVs simultaneously blew their horns to the tune of "Philippine Jeepney/Let's Go" for a duration of one minute and six seconds, before heading off to Subic Bay Freeport where the certificate was awarded to the FECP by the Guinness World Records Official Adjudicator.

The MINI Club of Grand Rapids, Michigan, USA held the former record of the Largest Car Horn Ensemble in August 2013. (MPD-SBMA)

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SBMA re-certified ISO compliant by International Auditors

DQS Certification Phils. Inc. has recently re-certified the Subic Bay Metropolitan Authority (SBMA) for its compliance with ISO 9001:2015 and 14001:2015 standards.

According to Vicente Evidente, Jr., SBMA Planning and Development Office (PDO) manager and the agency’s Quality Management Representative (QMR), the third-party surveillance audit is the DQS’s first face-to-face audit here since the pandemic, with the previous audit held online.

“We just had the second surveillance audit by the DQS, our first face-to-face audit since the pandemic. It entailed a more rigorous inspection than the online audit,” Evidente said.

“The DQS audit team found that the SBMA is compliant with the ISO standards, with special mention of the Seaport department for its compliance with the International Ship & Port Facility Security (ISPS) that contributed to its high compliance ratings,” he said.

Evidente also explained that an ISPS code establishes essential security requirements for ships, ports, terminals, carriers, seafarers, and cargo as a means to prevent maritime security hazards or any mishaps.  

During the two-day audit of ISO 9001:2015 and ISO 14001:2015, the agency’s frontliner-departments were scrutinized for their compliance with the standards of Quality Management System and Environmental Management System, respectively.

Meanwhile, SBMA Chairman and Administrator Jonathan D. Tan lauded the men and women of the agency for successfully fulfilling the requirements for the said standards.

Tan added that this would boost the agency’s thrusts namely, to attract more investments, create more employment and earn revenues.

“The SBMA’s compliance with the international standards of Quality Management and Environmental Management would definitely translate to higher investor confidence and the achievement of our objectives,” Tan said.

Tan also announced that another certification, the ISO 45001:2015 or the Occupational Health and Safety Management, is being documented by the SBMA Public Health and Safety Department (PHSD). (MPD-SBMA) 

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SBMA releases ₱203-M revenue shares; new chief forges strong partnerships with neighboring LGUs

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Jonathan D. Tan and mayors of the eight local government units (LGUs) adjacent to this free port forged strong partnerships as the Subic agency formally turned over revenue shares for localities contiguous to and affected by the operations of this premier freeport.

 

LGU shares are derived from the 2% of the 5% corporate taxes paid by Subic Bay Freeport-registered enterprises from January to June 2023, which amounted to ₱207.65 million.

 

Less net retention amount of Php4.62 million, LGU shares in the amount of ₱203 million were turned over by Tan for the first time during a simple ceremony at the Subic Bay Travelers Hotel.

 

Grateful for the positive turnout of LGU officials, Tan gave a briefing of the future development projects that the agency will be undertaking during the next few years of his term.

 

“These development projects will surely add value to the agency as it makes an effort to attract more investments; and with more investments, more jobs will be created not only for the residents of the neighboring towns of Subic, but also for the residents of neighboring provinces,” Tan assured.

 

With this, Tan also asked the beneficiary-LGUs for their help and cooperation in promoting Subic Bay Freeport to prospective investors.

 

“The more investments we get, the more jobs we create. The more revenues we generate, the more shares the LGUs get,” he added.

 

For the province of Zambales, Olongapo City mayor Rolen Paulino, Jr. received the highest share in the amount of ₱47.46 million; Subic mayor Jon Khonghun received ₱30.5 million; a representative of Castillejos mayor Jeff Khonghun received ₱18.5 million; San Marcelino mayor Elmer Soria received ₱24.38 million; and San Antonio mayor Edzel Lonzanida received ₱17.27 million.

 

Meanwhile, for the province of Bataan, Dinalupihan mayor German Santos, Jr. received ₱25.28 million; Hermosa mayor Joseph Inton received P21.7 million; and last but not the least, Morong mayor Cynthia Estanislao received ₱17.9 million.

 

The ₱207.65-million revenue share covers the first semester of 2023, with ₱16.14 million retention from the first semester 2021 collection, less ₱20.76 million for the current collection’s ten percent retention. 

 

These revenue shares are intended to supplement development projects in health, education, peace and order, and livelihood generation of the contiguous LGUs.

 

The SBMA started releasing the shares directly to LGUs in August 2010 to ensure their prompt remittance to the local communities. The LGU share is determined according to population (50 per cent), land area (25 per cent), and equal sharing (25 per cent), which are then released periodically in August, for the first semester, and February the following year, for the second semester. (MPD-SBMA)

 

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Erring company in Subic Freeport closed by SBMA

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Jonathan D. Tan led the repossession of a 1,500-square meter land area from an erring company as part of the agency’s thrust to regain areas for reutilization for other investors.

“We are repossessing leased areas of companies that do not comply with the agreement between them and the SBMA, and offer these areas to other investors,” Tan said.

The repossession of property transpired today at the Silver Arrow Import and Export Services, Inc. located at Lot 1, Boton Area, Argonaut Highway. The 1,500-sqm. land area of the company was repossessed due to contractual defaults.

According to Tan, the company failed to comply with its Investment and Development Commitment as provided in Section 7, Article II of the Lease Agreement between the company and the SBMA. Part of the said default is the failure of the company to develop the area with a funding allocation of at least US$1,000,000.

He added that the development commitment on the Leased Property should have a minimum cost of US$500,000 which includes the construction of a warehouse within two years from the issuance of its building permit.

“Aside from the Investment and Development Commitment, the company’s contractual default also includes non-compliance with the Omnibus Policy on Performance Bond, and failure to submit documents for the issuance of a building permit,” he said.

The said building permit is for the construction of a warehouse as stated under the company’s Development Commitment. Tan added that this is so despite the unreasonable length of time that had already lapsed since the execution of the lease agreement last July 28, 2015.

The SBMA had already served two notices before executing the repossession, with the Final Notice of Default with Demand to Pay dated June 19, 2023 that was served on June 26, 2023; and the Notice of Pre-termination and Repossession dated July 28, 2023.

“We are following President Ferdinand Marcos Jr.’s mandate to streamline operations within the Subic Bay Freeport Zone, and fully utilize land areas that are not being developed. But we are leaving space on the table for negotiations with the erring company so that they may continue with their operations efficiently,” Chairman Tan said.

The official said that this is the first of many repossessions that the SBMA will conduct as the agency clamps down on erring companies who have skimped on their obligations to the SBMA. (MPD-SBMA)

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