SBMA bares record-breaking 2018 corporate performance

With a seven-year high investment figure of P29.6 billion, the Subic Bay Metropolitan Authority (SBMA) on Wednesday announced a record-breaking corporate performance last year in the Subic Bay Freeport Zone.

SBMA Chairman and Administrator Wilma T. Eisma declared in her State of the Freeport Address (SOFA) on Wednesday that the agency hit the highest level of annual committed investment in the last seven years with P29.6 billion in 2018, or an increase of 1,066% over the P2.5 billion generated in 2017.

She said the SBMA also posted record-breaking outputs in the 26-year history of the agency: the highest revenue ever at P3.45 billion; the highest net income at P1.45 billion; and the biggest EBITDA, or earnings before interest, tax, depreciation and amortization, at P1.84 billion.

The revenue level in 2018 represented a 12% increase over the P3.08 billion in 2017; the net income a 60% surge from P907.9 million in 2017, and also the first time to breach the P1-billion mark; and for EBITDA, an 18.98% growth over the P1.55 billion in 2017.

Eisma also pointed out that the growth in expansion projects in Subic, which exponentially jumped from P926.6 million in 2017 to P25.05 billion in 2018 for an overwhelming year-on-year increase of 2,603%, was the more telling sign of investor confidence on Subic.

“This means that (investors) who are already here in Subic remain to be committed, and trust that good things will happen again this year,” she told members of the Subic Bay Freeport Chamber of Commerce, which is hosting the annual SOFA presentation.

The biggest fresh infusions last year were for a five-star hotel, industrial parks, warehouses, and a golf course and retirement community, she said.

As a portent of continuing favorable business climate in the Subic Bay Freeport, the SBMA also drew a strong import and export performance in 2018, signifying Subic’s progressive role as an engine of growth.

Eisma said that Subic’s import value increased by 3.6% from P1.77 billion in 2017 to P1.84 billion in 2018, while export value rose by 8.2% from P2.3 billion to P2.5 billion.

Meanwhile, total debt decreased by 1.7% from P6.2 billion to P6.1 billion due to the volatile exchange rate in 2018.

Subic made another record-breaking performance in port operations when it handled 212,103 TEUs in containerized cargo volume and 7,052 metric tons of bulk and non-containerized cargo in 2018. Subic seaport’s robust growth last year, which was up 50% from the 2017 level, brought in total revenue of P1.23 billion.

The local tourism industry, on the other hand, continued with its impressive performance with an 8.2% increase in walk-in visitor arrivals from 8.5 million to 9.2 million, and a 2.2% rise in overnight tourist arrivals from 1.68 million to P1.72 million. The tourist arrivals also increased hotel occupancy to 68.46%.

Eisma added that the 19 cruise ship arrivals in 2018—compared to a single arrival in 2017—ignited a whole new tourism niche for Subic, which also made a huge P129-million economic impact in the Central Luzon region.

With the continuous growth in Subic, SBMA’s contributions to the national treasury in the form of tax collections, customs duties, and government dividends also went up by 27% from P19.9 billion in 2017 to P25.3 billion in 2018, Eisma also said during the SOFA. (RFD/MPD-SBMA)

PHOTO:

SBMA Chairman and Administrator Wilma T. Eisma reports on the record-breaking 2018 performance of the Subic Bay Freeport Zone during her State of the Freeport Address on Wednesday, March 6. (AMD/MPD-SBMA)

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Central Luzon sustains economic growth in 2018

The year 2018 saw the economy of Central Luzon in a sustainable growth level primarily pushed by major developments in the region.

Amid the mild domestic and external challenges that the Philippines experienced in the past months, Central Luzon remained one of the core regions contributing significantly to the overall growth of the country as fueled by the impressive performances of the region’s emerging cities and special economic zones.

The biggest contributors to the region’s steady growth this year are the three Freeport zones, namely the Clark Freeport Zone, Subic Freeport Zone and the Bataan Freeport Zone.

Investments and Job Opportunities

The Clark Freeport Zone is becoming the next economic haven of Luzon with unprecedented gains in investments, revenues, employment and other significant achievements.

Noel F. Manankil, president and CEO of the Clark Development Corporation (CDC), said the impressive accomplishments in the freeport can be attributed to the sound business climate that attracted more investors.

CDC’s latest number of locator-firms totaled 949, most of them in the information communication technology (ICT), service and developers’ industries. This resulted in the creation of jobs for 108,000 workers.

“With its extensive involvement in the government’s Build, Build, Build, program, Clark will be able to provide more jobs and opportunities for the Filipinos,” Manankil said.

The Subic Bay Freeport, on the other hand, has a total of 1,596 business locators that employ a total workforce of 133,940.

“There is a significant harvest of business commitments and opportunities for Subic, and it only goes to show that this freeport remains to be one of the strongest economic drivers in the country today,” SBMA chairman and administrator Wilma T. Eisma said.

For the first half of the year, the SBMA has approved 45 new investment projects worth a total of PHP2.85 billion, bringing the cumulative investment commitments to PHP499.6 billion.

Eisma said the SBMA hopes to create more business opportunities as it arranges cooperation programs with neighboring communities to host additional investment projects.

Meanwhile, the number of approved and registered locators at the Authority of the Freeport Area of Bataan (AFAB) reached 163 as of September this year.

“The continuous influx of new and interested locators in the FAB means an increased number of job opportunities for the community,” AFAB chairman and administrator Emmanuel D. Pineda said.

So far, the number of workforce in the Freeport totaled 40,567 wherein 35,116 are from Bataan and 5,451 from other regions even as far as Visayas and Mindanao.

Data showed that AFAB likewise managed to contribute bigger shares to the government from PHP98 million in 2017 to PHP141 million this year.

“We all decided to move forward together as we aim to reach new frontiers and trail blaze an amazing future for the next generations. Two years later, we have succeeded in sustaining this growth and now we continue to expand towards new possibilities,” Pineda said.

Agriculture

The agriculture sector of Central Luzon experienced a slowdown this year following the effect of typhoons the past months.

The Department of Agriculture (DA)-Central Luzon reported that damage to agriculture in the region due to typhoons Henry, Inday and Josie was placed at PHP770 million.

Likewise, some 110,698 hectares of farmlands in the region were affected by the onslaught of Typhoon Ompong, causing destruction to crops amounting to some PHP2.05 billion.

As a result, Central Luzon is one of the four typhoon-affected regions placed under the state of calamity to mitigate the economic impact of the typhoon to the affected residents.

The member-agencies of the Regional Disaster Risk Reduction and Management Council in Central Luzon have also provided various assistance to the typhoon-affected families.

Despite the slowdown in the agriculture sector, Central Luzon plays a big role to the country’s economy due to diversification developments in the region.

Tourism

A spike in tourist volume in Central Luzon this year was noted due to improved infrastructures such as the integration of the North Luzon Expressway (NLEX) and the Subic-Clark-Tarlac Expressway that paved the way for an easier and accessible travel to and from the provinces in the region.

The passenger traffic at the Clark International Airport is expected to hit the 2.5 million mark in the number of passengers before the year ends.

“The Clark International Airport is now one of the country’s busiest airports and this 2.5-million passenger mark is another record-breaking milestone for Clark,” Jaime Melo, president and chief executive officer of the Clark International Airport Corporation (CIAC) said in a statement.

At present, the Clark International Airport sustains 390 domestic and 184 international flights weekly.

“We are also targeting at least 11 domestic and 24 international destinations for next year,” Melo said.

The emergence of Subic as a hub for cruise ships was also cited.

The Subic Bay Metropolitan Authority (SBMA) is seeking to integrate tourist destinations in the neighboring provinces of Pampanga, Tarlac, Bataan and Zambales to boost cruise tourism program of the Subic Bay Freeport and create inclusive growth in the region.

“Our strategy is for Subic to become the anchor cruise ship destination, but it’s actually not only for Subic but for the inclusive growth of all of us as well,” Eisma earlier said.

So far, the number of Subic’s cruise ship arrivals this year was placed at 20, each bringing in some 2,000 to 5,000 tourists at every port call.

The construction of the Subic-Clark Railway, the North-South Railway spanning Laguna-Manila-Clark, and the expansion of the Clark International Airport will also serve as come-on for businessmen and tourists.

Economic outlook for 2019

With the high-impact projects in the region under the Duterte administration’s “Build, Build, Build" infrastructure program, particularly in Clark Freeport Zone, another good year is expected to come in for the economy in Central Luzon.

Jess Nicdao, president of the Pampanga Chamber of Commerce and Industry, Inc. said the major infrastructure projects are the key to sustaining the economic growth of the region.

He lauded the Duterte administration for making Clark a part of the country’s economic strategy which is expected to experience an influx of new businesses and investments.

The country’s hosting of the 30th Southeast Asian Games where some of the games will be held in Clark next year, is likewise seen to give a multiplier effect that could help sustain the vibrant economy of Central Luzon. (PNA)

http://www.pna.gov.ph/articles/1056863

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BoC Subic posts record collection

The Port of Subic district collection unit of the Bureau of Customs achieved last month its highest revenue collection performance in its 20-year history after generating P2.347 billion, or 12.8 percent over its target for the period.

The BOC district unit headed by lawyer Ma. Rhea M. Gregorio registered a surplus of P265.429 million, according to the data gathered on the revenue performance of the district. Its target was P2.082 billion.

This is the third consecutive month that the district achieved positive collections record since September when Gregorio assumed the post as district collector.

BOC Subic accomplished the double-digit revenue targets by upgrading trade facilitation and closer dialogs with both Subic Freeport locators and port users.

Subic raised P2.182 billion revenues on import duties and taxes in October, netting P87.733 million, or a surplus of 4.2 percent. (Joel E. Zurbano, Manila Standard)

http://manilastandard.net/business/power-technology/282110/boc-subic-posts-record-collection.html

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Subic 1st sem investment pledges hit P2.85 billion

The Subic Bay Metropolitan Authority (SBMA) approved 45 new investment projects worth a total of P2.85 billion from January to June this year, bringing the cumulative investment commitments here to P499.6 billion.

SBMA Chairman and Administrator Wilma T. Eisma said the total investment pledges in the first semester of 2018 was 290 percent higher than the P731 million generated in the same period last year.

The first semester projects are also expected to generate 2,439 new jobs in the Subic Bay Freeport Zone, she added.

“This is a significant harvest of business commitments and opportunities for Subic, and it only goes to show that this free port remains to be one of the strongest economic drivers in the country today,” Eisma said.

“It also goes to show that businesses continue to grow in Subic, because 13 business locators here have proposed expansion projects in the first 6 months,” she added.

The expansion projects are worth a total of P276 million and are projected to generate 286 new jobs.

According to Kenneth Rementilla, SBMA deputy administrator for business and investment, the biggest investment commitment the SBMA signed up in the first semester was made by Citic Hotels and Leisures Corporation, a brand that carries the world-renowned five-star hotel chain Wyndham Hotel.

The Citic proposal was worth P1.34 billion and will generate 2,000 new jobs.

The second biggest new project was proposed by Air Juan Aviation for the operation of air transportation services and charter passenger flights to various points in the country. The firm will invest P671.47 million and hire 10 workers.

GGG Technology Inc., meanwhile, proposed a P200-million project that will involve an initial workforce of 110 to engage in manufacturing, assembly and refurbishing of high-technology consumer electronics.

The fourth largest project was that of First Aviation Academy Inc., an operator of aviation-related training and skills assessment center. It will offer various aviation-related courses to airline and non-airline employees and individuals, infuse P156.6 million into the business, and hire 28 workers.

The fifth biggest proposal came from Vortex Oil and Gas Solutions Corp., which will operate an office for the import and export, trading, selling and distribution of petroleum products with a committed investment of P100 million and a workforce of five employees.

Chairman Eisma said the Subic agency hopes to create more business opportunities here, as it arranges cooperation programs with neighboring communities to host additional investment projects.

As of June this year, the Subic Bay Freeport Zone hosts a total of 1,596 business locators that employ a total workforce of 133,940. (RFD/MPD-SBMA)

PHOTOS:

[1] SBMA Chairman and Administrator Wilma T. Eisma signs a memorandum of agreement with China National Heavy Machinery Corp. (CNHMC) Chairman and President Xiao Ping (2nd, left), CNHMC Vice President Zhang Fei, and Hermosa, Bataan Mayor Jopet Inton (right) for the development of a techno-industrial facility at the Subic Bay Freeport. (AMD/MPD-SBMA)

[2] Citic President Chi Jian Li and SBMA Chairman and Administrator Wilma T. Eisma sign an investment contract for the development of a 5-star hotel in the Subic Bay Freeport. (AMD/MPD-SBMA)

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SBMA goes after debtor-firms, collects P148M

The Subic Bay Metropolitan Authority’s resolve to go after stale debts and past-due accounts of business locators in the Subic Bay Freeport is handsomely paying off in millions of fresh funds for the State-owned agency.

Figures from the SBMA Finance Group indicated that the agency collected a total of P148.6 million from rentals, sublease shares, common use service area (CUSA) fees and other accounts receivable in the last 15 months that an aggressive collection program was instituted by the new administration.

The collection included long-time debt payments by Freeport-registered companies in the amount of P101.9 million and $593,118, and housing payments of P6.5 million and $172,922.

SBMA accounting officials said some of these debts have been incurred as early as year 2000, but have remained unsettled in the past 17 years.

“This is proof that just by consistently applying existing laws and policies and actively engaging our stakeholders in Subic—listening to them and figuring out mutually-acceptable solutions, we can accomplish much,” said SBMA Chairman and Administrator Wilma T. Eisma.

“Besides, looking after the interest of the government as regards the operation of the Subic Bay Freeport Zone is a duty we cannot shirk. we have to go after those who have debts, and we have to do this decisively,” she added.

Eisma said the campaign has only met support from business executives here who understood the purpose and approved the reform measures.

SBMA records showed that a lot of indebted companies have availed of payment schemes approved by the SBMA Board of Directors, allowing them to amortize past-due accounts over a certain period of time.

Some of the biggest locators that recently made upfront payments or availed of payment schemes included the Lyceum of Subic Bay, which paid P31.5 million for both arrears and advance rent; Global Daeil Subic, Inc., which signed a payment deal for P16.6 million; and Subic Bay Yacht Club, Inc., which availed of a similar repayment scheme for P11.8 million.

Meanwhile, SBMA records indicated that the agency issued billings to business locators totalling P3.88 billion from January 2016 to December 2017. From this, the agency was able to collect P3.12 billion, thus posting a collection efficiency of 80 percent.

On the other hand, the agency recorded a collection efficiency of 83 percent for its housing accounts in the same two-year period, when it netted P167.7 million from total billings of P201.4 million.

Eisma likewise said that as part of the agency’s collection thrust, the SBMA initiated an audit last year that had so far yielded P18.3 million in new billings for gross revenue shares from several business locators in the zone.

“The audit is still on-going, and everyone in the business community here can expect that they will be treated equally and fairly within the policy framework,” she added.

Earlier, the SBMA chief announced the strict but consistent implementation of existing policies covering the use of areas and facilities leased to business locators, which are operating in Subic under a tax- and duty-free regime.

She said that along this line, the SBMA has already repossessed facilities that some business locators have left idle and unimproved, revoked the lease and development contract of investors that failed to meet their obligations, and implemented a stringent policy to collect SBMA receivables, as approved by the Board of Directors.

Eisma explained that the strict measures, coupled with the streamlining of business processes in the free port zone, are meant to improve the business climate in Subic, and foster economic sustainability and equal opportunity for all. (HEE/MPD-SBMA)

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