SBF committed investments and expansion projects skyrocket in 2022

Committed investments infused by new investors and expansion projects in the Subic Bay Freeport have surged dramatically in 2022 following the easing of pandemic restrictions in the country. 

The Business and Investment Group of the Subic Bay Metropolitan Authority (SBMA), in its yearend report, said that committed investments in 2022 accrued to ₱50,408,031,828.06, which is 2,128 percent more than committed investments in 2021 of ₱2,262,774,109.78.

The report said that the number of new investors has increased from 115 companies in 2021, to 133 in 2022 whose committed investment amounted to ₱14,063,061,938.70.

These 133 new companies aim to employ 1,874 new workers that will add to the workforce of this premier Freeport.

Northern Palawan Power Generation Corporation tops the list of new investors, committing a total of Php7-billion in new investments. the company will locate at Cawag, Redondo Peninsula to engage in real estate development for power generation and other energy sources. 

This was followed by UNCO United Oil and Gas Philippines with ₱1,948,096,000 and Tawi Tawian Petroleum Trading Corporation with ₱1,500,000,000. Both companies are engaged in petroleum importation and trading.

On the other hand, expansion projects of existing SBF locators committed in 2022 has accrued to ₱36,344,969,889.30, which is 6,040 percent more than 2021’s ₱591,914,600.00.

Existing locators with the biggest committed investments in expansion projects include Vectrus Subic Corporation with ₱14,522,658,219.30, Agila South Inc. with ₱10,737,616,537, Agila NY Naval Inc. with ₱6,283,079,863, and Nidec Subic Philippines Corporation, which was recently signed during President Ferdinand Marcos, Jr.’s official visit to Japan, with ₱4,200,000,000. 

The number of investors who plan to implement expansion projects have increased from 24 in 2021 to 38 in 2022. The expansion projects of these 38 investors will hire 2,832 additional workers.

“This proves that my appointment as SBMA Chairman and Administrator is indeed a very big blessing. I am so blessed to be working with a team of hard-working men and women; equally blessed to be appointed at a time when pandemic restrictions started to ease up,” SBMA Chairman and Administrator Rolen C. Paulino said.

This manifestation of investor confidence, he said, makes the Subic Bay Freeport Zone more attractive to foreign and local investments who want to make it happen in the Philippines by doing it in Subic Bay.

Meanwhile, SBMA Senior Deputy Administrator for Business and Investment Renato Lee III said that the operating expenses of the agency recorded as of November 2022 is at 4.14 percent, citing that the agency was able to generate ₱24.17 in revenues for every ₱1 spent.

He added that the revenue from January to November has reached ₱1,690,541,578.00, which is 134.81 percent higher than the target ₱719,949,783.68, resulting in a difference of ₱970,591,794.33.

Lee also said that the number of Certificates of Registration and Tax Exemption (CRTEs) that were processed almost doubled from the target CRTEs, disclosing an increase of 84.91 percent. He added that the target this year was pegged at 464, while the actual number of processed CRTEs have a total of 858.

The official also revealed that the 879 term sheets processed by the SBMA’s Business and Investment Departments (BIDs) has surpassed the target of 448, a discrepancy of 431 term sheets, or 96.21 percent surplus.

Paulino said that the agency will continue to follow the directive of President Ferdinand Marcos Jr. aiming to make this premier Freeport into the country's bastion of economic prowess. He added that with President Marcos at the helm, foreign investor confidence in Subic Freeport will remain strong. (SNL)