SBMA records P3.47-Billion operating revenue

The Subic Bay Metropolitan Authority (SBMA) registered a revenue of P3.47 billion last year, capping the second year of the Covid-19 pandemic with an 8% growth in income and other major accomplishments in key performance areas.

In her 2021 annual report to President Duterte, SBMA Chairman and Administrator Wilma T. Eisma said that “while a few indicators remain impacted by the Covid-19 pandemic, the general trend is upward where the SBMA was able to accelerate growth and surpass its performance in the previous year.”

Foremost among the top performances Eisma told the President about was the operating revenue of the agency, which stood at P3.47 billion for the period ending December 2021. This was P270M or 8% higher compared to revenue in the same period in 2020, she added.

Eisma pointed out that most of the SBMA revenue came from leases and port operations, with land and building leases growing by 2% and contributing P1.38 billion, and seaport operations growing by 14% and generating P1.37 billion.

She also reported that the agency’s regulatory income increased by 11% and provided P408 million in revenue, while airport operations grew by 26% and contributed P79 million.

The SBMA chief likewise provided positive reports in investment and employment generation, tourism, imports and exports.

She said the SBMA recorded a total of 142,177 Subic Bay Freeport workers as of December 31, showing an employment increase of 2.31% from 138,966 workers in 2020. SBFZ business locators, meanwhile, numbered 1,737 SBFZ as of December 31, “continuing a slight upward trend since 2019,” Eisma said.

She added that new investments, including expansions, totaled P17.29 billion, higher than the 2020 record by P15.74 billion, or 1,011%. The 2021 record even topped the pre-pandemic 2019 level by P8.05 billion, or 87%, with the bulk comprised by a P15-billion commitment from a business locator, which proposed to develop the SBFZ marshalling yard.

Meanwhile, Eisma said that the pandemic-hit tourism industry in Subic “is recovering and has recorded a total of 7.3 million same-day visitors in 2021.” This was also higher than the 2020 record by 2.18 million or 42%, but still lower than the 2019 record by 2.2 million or 23%.

In terms of trade, Eisma said the Subic Bay Freeport “defied the negative impact of the pandemic by recording a total of US$1.58 billion import value in 2021, which was 49.53% higher than the 2020 import value of US$1.12 billion.”

On the other hand, Subic’s export value reached a total of US$1.37 billion, which was 32.42% higher than the 2020 export value of US$1.03 billion. Both import and export values respectively exceeded the 2019 pre-pandemic records by 8.12% and 6.73%, Eisma added.

At the same time, Chairman Eisma reported to President Duterte that the Subic Bay International Airport, which was tapped by the Department of Transportation last year to accommodate “Bayanihan” flights has recorded a total of 53 flights as of December 31, bringing home a total of 14,312 overseas Filipino workers (OFWs) and returning overseas Filipinos, and generating P3.17 million in direct revenues for the SBMA.

Eisma likewise reported that the SBMA’s Covid-19 vaccine rollout, which was a joint project with the Department of Health, has resulted in the administration of 22,251 vaccine doses as of the end of 2021.

Eisma assured the President that the SBMA “is doing its best to be more competitive and maintain a business-friendly environment in the Freeport, as we continue to support all the programs of the government to ensure the well-being and safety of everyone in the Subic Bay Freeport.” (MPD-SBMA)

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Subic workforce grows to 142,177 in 2021

Despite some business difficulties during the time of the Covid-19 pandemic, the number of workers in the Subic Bay Freeport Zone registered a continuing growth and reached a yearend total of 142,177 last year.

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Wilma T. Eisma said Subic’s job generation effort was buoyed by new investments and expansions in the services and manufacturing sectors, which now respectively hire 72% and 15% of the current workforce in the Freeport.

Eisma said the 3,190 Subic-registered companies that now provide various services here employ a total of 102,540 workers, while 93 manufacturing firms have a total of 21,529 employees.

On the other hand, the 237 construction companies operating in Subic employ a total of 12,225 workers, while 112 companies engaged in shipbuilding and marine-related services hire a total of 5,884 workers.

 “It’s true that some of the companies here have closed or were forced to reduce their manpower complement because of the pandemic, but overall, the number of workers in Subic actually increased by 1.03% in 2020 and by 2.31% last year,” Eisma said.

“So, this means that Subic has been coping very well with the challenges posed by the current health crisis, and was finding new opportunities for businesses to survive and even prosper,” she added.

Eisma also pointed out that except for a .32% decrease in workforce count in 2009, the Subic Freeport has been riding an upward trend in job generation since 1999 when the total number of workers stood at 19,969.

“From there, our count continuously climbed to 55,875 in 2004; 88,450 in 2010; 112,653 in 2016; and finally, 142,177 in 2021,” Eisma said.

She added that even with the closure in 2019 of the Hanjin shipyard, which used to employ some 35,000 workers, Subic still registered a manpower increase of 1.37% that year.

“This was because job generation has been the top priority in Subic, as this was the reason for its being—to provide jobs, especially to those who lost theirs when the Subic Naval Base closed in 1992. And we’re proud that since then, Subic has been able to fulfill its mandate,” Eisma said.

According to SBMA Labor Department manager Melvin L. Varias, most of the workers employed in the Subic Freeport come from Olongapo City, which contributed a total of 62,201 or 43.75%, and Zambales, with 25,756 workers or 18.12% of the total.

Next is Bataan with 17,764 (12.49%); National Capital Region with 5,310 (3.73%); Pampanga, 4,388 (3.09%); Tarlac, 1,950 (1.37%); and other areas, 24,808 (17.45%).

Just last December, Varias said that a total of 2,062 workers were hired by Subic firms, mostly in the services (1,519) and manufacturing (494) sectors.

Varias said that as of December 2021, the Subic workforce is comprised of 101,113 male workers, or 71.12% of the total, and 41,064 females, or 28.88%.

He added that the biggest employers in Subic today are Datian Subic Shoes, Inc. with a total of 4,697 employees; Philippine Easepal Technology Ltd. Corp. with 2,766; EZ Set Tong Lung (Phils,) Metal Industry Co., 2,681; Sanyo Denki Phils. Inc., 1,375; and Exact Star Subic Bay Corp., 1,247 workers. (MPD-SBMA)

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SBMA racks up P16.67-B investments in 2021

The Subic Bay Metropolitan Authority (SBMA) persistently defied the economic downturn brought about by the continuing Covid-19 pandemic this year and registered a total of P16.67 billion in investments from January to December.

This amount represented a 1,099% increase over the P1.39-billion investment turnout approved by the Subic agency in 2020 and almost four times the P4.38-billion investment forecast for this year, said SBMA Chairman and Administrator Wilma T. Eisma.

The new investment projects are also projected to generate close to 72,000 new jobs in Subic, she said.

“We’re not yet there even with this P16.67-billion figure this year, but we are definitely on our way to pre-pandemic investment levels,” Eisma enthusiastically pointed out on Monday.

The key, she said when asked how the SBMA attracted more investments despite the pandemic, “is keeping Subic a safe haven for both business and leisure.”

“The people here—and that includes the workers and residents—have gotten used to the strict implementation of safety protocols by the SBMA, and this is apparently paying off,” Eisma added. “People are asking where does Subic’s economic vibrancy come from, and the simple answer is that it comes from keeping Subic safe for everybody.”

Figures from the SBMA Business and Investment Group indicated that 110 new business locators registered in the Subic Freeport this year.

These included 82 companies wholly owned by Filipinos; five Sri Lankan and Filipino partnerships; three Filipino-Chinese combines; two Dutch, American and Filipino joint ventures; two Sri Lankan firms; two Taiwanese-Filipino companies; an American enterprise; and 14 other projects between a Filipino and a foreign partner.

The biggest investment project in 2021 was the P201.2-million watercraft operation business proposed by Empress maritime Subic, Inc., a British-Filipino venture.

This was followed by a petroleum trading venture by Bicol Oil (International) & Shipping Corp., a Filipino form that pledged P179.3 million; Subic Spectron Energy Trading Corp., another Filipino petroleum trading firm with P101.39 million; MN3A Subic Trading Corp., a Filipino general trading firm with P80 million; and SBGP Food Services, Inc., a Taiwanese-Filipino trading and retailing business with P74.6 million.

Completing the top 10 new investors are: Da Fu Yuan Corp., a Filipino-Taiwanese-Chinese venture for real estate development with P57.28 million; Jung Fang Corp., a Taiwanese real estate firm with P38.44 million; Alquenes Petroleum Inc., Filipino, with P28.5 million; Vexio Corp., another Filipino petroleum trader, with P25.97 million; and CGD Medical Depot Inc., a Filipino trader of medical supplies and food products, with P19.7 million.

On the other hand, the biggest investment project in terms of employment is that of Subic Supreme Industries, Inc., with projected 71,250 jobs.

This Filipino venture with committed investments of P15.5 million will develop and operate the marshalling yard at the gateway area for mixed-use development and services.

 Eisma also said the success of Subic in generating more business commitments was underpinned by a community effort to practice minimum safety protocols, get vaccinated, and establish Covid-19 facilities like a testing center and RT-PCR laboratory, and a 500-bed quarantine facility.

“Our readiness and capability to fight Covid also brought more business to Subic,” Eisma said, pointing out that some sports and tourism events, as well as the crew-change and OFW repatriation programs of the national government, were held here under the bubble concept. (MPD-SBMA)

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SBMA OK’s P16.2-B new investments in 3rd Qtr.

The Subic Bay Metropolitan Authority (SBMA) approved new investment proposals worth a total of P16.2 billion in the third quarter of this year to reassert Subic Bay Freeport Zone’s claim as one of the biggest business destinations in the country.

SBMA Chairman and Administrator Wilma T. Eisma said the new investment commitments were made by 40 companies that sought registration as Subic business locators from July to September, as well as by three existing locators that pledged additional investments for expansion projects totaling P49.44 million.

The new investments consisted of 15 projects under the leisure industry, 13 in general business, 11 in logistics and one in information and communications technology, while the expansions were all under the manufacturing sector.

The new investments will bring in a total of 71,522 new jobs, while the expansion projects will generate additional employment of 1,200 in the freeport zone.

According to the SBMA Business and Investment Group (SBMA-BIG), the new projects approved in Third Quarter 2021 represented a 233 percent increase over the 12 new proposals in the same period last year. In terms of new jobs, the variance showed thousands-fold increase over the 163 posted in 2020.

SBMA Senior Deputy Administrator for Business Renato Lee III said the biggest investment proposals came from Subic Supreme Industries, Inc., which committed P15.5 billion for a leisure project; Empress Maritime Subic, Inc., with P201.2-million for another leisure project; Bicol Oil (International) & Shipping Corporation, with P179.3 million in logistics; SBGP Food Services, Inc. with P74.62 million in leisure; and Da Fu Yuan Corp. with P57.28 million in general business.

Subic Supreme also topped the employment department with 71,250 projected jobs.

Meanwhile, the biggest commitment for expansion came from Philippine Easepal Technology Ltd. Corporation at P37.45 million. Philippine Easepal, which manufactures sports and leisure articles and apparel, also committed to hire 810 more workers for its expansion.

Lee also said in SBMA-BIG’s Thirds Quarter 2021 report that at least 18 new projects, including co-location agreements with the country’s three leading telecommunications players, are under consideration by the Subic agency.

He said SBMA is also reviewing and amending business processes, including the omnibus policy on the imposition of performance bond, to further reduce the period for processing and issuance of business permits and ensure efficient monitoring of development commitments by business locators here.

Eisma said on Friday that the continuing health crisis may have initially caused the closure of some companies in Subic, “but we’re definitely making a comeback as a preferred investment destination.”

“Aside from sound economic policies that gave investors much-needed support and respite during the pandemic, Subic’s superb safety record, which is due to the cooperation of stakeholders in observing health measures, also played an important part in gaining the trust of new investors,” she added.

Eisma pointed out the SBMA has been a favored destination for “bubble events” like business conferences, sports tournaments, and stay-cations at the height of the Covid-19 pandemic, as well as a hub for international crew change and the repatriation of overseas Filipino workers. (MPD-SBMA)

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SBMA posts P997-M seaport income

The Subic Bay Metropolitan Authority (SBMA) recorded more than P997 million in sea port income in the first nine months of this year, as containerized cargo trade in this free port continued to grow with the gradual reopening of the global economy.

SBMA Chairman and Administrator Wilma T. Eisma said the SBMA Seaport Department recorded a 15 percent increase in revenues in January to September 2021 compared to the P863.7-million earnings posted in the same period in 2020.

“The increase in container traffic definitely carried the day for Subic because it also helped us realize increases in processing fees, SBMA shares from the operation of the container terminal, as well as leases,” Eisma said.

“The positive figures in these revenue sources had offset decreases in other areas like non-containerized cargo, which has markedly fell since the Covid-19 pandemic,” she added.

Eisma said the SBMA further expects container traffic—and Subic port revenue—to grow this year, as third quarter figures placed container cargo volume at 69,355 TEUs (twenty-foot equivalent units) compared to 62,103 in the second quarter.

“The 12 percent increase in containerized cargo volume corresponded to an 11 percent increase in our port revenue, which grew from P317.2 million in the second quarter to P351.9 million in the third quarter. And so far, this upward trend continues,” she added.

According to a report from the SBMA Operations Group, the biggest income earner for Subic seaport was the agency’s share from container terminal operations, which yielded P302.3 million in January to September this year.

The container terminal operation was buoyed by a 32 percent increase in exports, from 24,951 TEUs in January-September 2020 to 32,891 TEUs this year, and a 16 percent rise in imports that grew from 77,663 TEUs last year to 90,019 TEUs this year.

The next biggest income sources for the SBMA sea port are lease rentals, which brought in P252 million, cargo charges with P248.1 million, and vessel charges with P126.1 million.

SBMA Senior Deputy Administrator for Operations Ronnie Yambao said the SBMA shares registered a 46 percent growth over the January-September 2020 record because of increased cargo handling fees, hauling and variable fees, even as a slight dip of 0.4 percent was noted in foreign container vessel ship calls in the same period.

Processing fees, cargo charges and lease rentals, meanwhile showed respective increases of 11 percent, 3 percent and 11 percent, Yambao added.

Yambao also pointed out that while total non-containerized cargo volume decreased by 10 percent in the same period, or from 5.39 million metric tons (MTs) in the first three quarters of 2020 to 4.86 million MTs in the same period this year, the liquid bulk petroleum sector defied the downtrend with an 18 percent increase, or from 1.84 million MTs to 2.17 million MTs this year.

Meanwhile, the SBMA Trade Facilitation and Compliance Department (TFCD), which handles import and export transactions in the Subic Bay Freeport, reported that its revenue grew from P83.66 million in the first three quarters of 2020 to P104.22 million in 2021.

TFCD manager Anna Joy Quito attributed the 25 percent increase to the increase in import-export fees and admission fees brought about by the gradual reopening of the economy.

TFCD records showed a 67 percent increase in Subic export transactions, from $630 million in 2020 to $1.05 billion in 2021, and a 52 percent rise in importations, from $815.9 million in 2020 to $1.24 billion in 2021. (MPD-SBMA)

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SBMA posts P1.66-B midyear revenue, other positive measures

The Subic Bay Metropolitan Authority (SBMA) posted positive records in most of its key performance indicators this year, including a P1.66-billion operating revenue that surpassed last year’s first half profits by 8.62%.

In a report to the Office of the President, SBMA Chairman and Administrator Wilma T. Eisma said the Subic agency “capped its 2021 first semester performance with major accomplishments in its key measures” even when a few areas remain impacted by the Covid-19 pandemic and recorded actual decline.

“The general trend is upward where the SBMA was able to accelerate growth and surpass its performances in the previous year,” Eisma added in her report dated July 15.

Among the measures showing positive growth from January to July 2021 were operating revenue, port operations, employment, business registration, and import and export performance. Only tourism income, non-containerized cargo volume, and committed investments have yet to pick up, Eisma said.

For starters, SBMA’s operating revenue increased from P1.53 billion in the first six months of 2020 to P1.66 billion in the same period this year. Eisma said that while this was still short by P226 million, or 11.96%, when compared to the pre-pandemic record of P1.88 billion in 2019, “it still shows how fast Subic is able to recover from the effects of the Covid-19 health crisis and the resulting global economic slowdown.”

Subic’s revenue growth in the first half is boosted by a P718-million collection from leases, P685 million from port operations, P189 million from regulatory fees, and P69 million from miscellaneous sources.

Meanwhile, SBMA’s port revenue reached P645.8 million in the first semester, which was 17% higher than last year’s figures. The increase came mainly from a 14%-increase in containerized cargo, which rose from 107,740 TEUs in 2020 to 122,862 TEUs this year, even when non-containerized cargo slid by 2.5% from 3.54 million metric tons in 2020 to 3.46 million MTs this year.

Eisma also pointed out that Subic performed better in terms of import and export, with $842.29 million in imports that was 40% higher than the $601.8 million last year, and $636.8 million in export value that was 86% higher than last year.

Meanwhile, the the Subic Bay Freeport workforce kept growing despite the pandemic. From a total of 134,268 in 2019, it grew to 138,110 by the end of 2020 to 138,964 in the first half of 2021. The services sector employed a total of 101,390 workers or about 73%.

Likewise, even when the 2021 first semester committed investment total of P873.75 million was 14% lower than that of last year’s, the number of registered Subic investors continued to grow from 1,691 in 2019 to 1,706 in 2020 and to 1,744 by midyear 2021.

In terms of tourism, meanwhile, Subic posted a modest grown of 32% with 3.2 million same-day visitors in the first half of 2021; a slight increase in tourist arrivals from 149,951 in 2020 to 206,229 this year; as well as a modest growth in hotel occupancy, which increased from 20% in 2020 to 26.7% this year.

Eisma attributed the growth in key sectors to sound economic policies, best practices in anti-Covid measures, and a vision for renewed growth under the new normal. (MPD-SBMA)

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SBMA posts P820.8-M operating revenue in 1st quarter

Despite some unrealized revenue targets as a result of the continuing Covid-19 pandemic, the Subic Bay Metropolitan Authority (SBMA) recorded a total of P820.84 million in operating revenues in the first quarter of 2021, or a 5.23% increase over the P780.08 million posted in the first quarter last year.

SBMA Chairman and Administrator Wilma T. Eisma said income from the SBMA Port Authority Group amounting to P374.54 million shored up the agency’s operating revenue by P60 million, thus creating a positive balance even as four other strategic business units (SBUs) recorded decreases in revenue.

“The good news was that the SBMA Seaport managed a 25% increase in port revenue because of a 10% increase in the volume of containerized cargo,” Eisma noted.

“The pandemic might have caused losses to some of our units, but others—like our core business, which is the sea port—are coming out as winners,” she added.

Among the SBMA SBUs that recorded revenue loses is the Business and Investment Group (BIG), a report from the SBMA Financial Planning and Budget Department (FPBD) indicated. BIG’s operating revenue dropped from P373.69 million in the first quarter of 2020 (Q1 2020) to P3 P371.89 million in Q1 2021, or a decrease of P1.8 million (0.48%).

Meanwhile, the Regulatory Group also posted losses, with P22.34 million in Q1 2020 to P8.39 million in Q1 2021, or a decrease of P13.95 million (62.44%); Chairman and Administrator’s Group, from P5.57 million in Q1 2020 to P1.77 million in Q1 2021, or a decrease of P3.8 million (68.28%); and Support Services Group, from P7.63 million in Q1 2020 to P5.92 million in Q1 2021, or a decrease of P1.71 million (22.43%).

The only other group that recorded an increase in operating revenue was the Public Services Group, which posted P56.87 million in Q1 2021, or an increase of P2 million (3.64%) from P54.87 million in Q1 2020.

The SBMA FPBD also said that the agency’s earnings before interest, taxes, depreciation and amortization (EBITDA), which measures profitability and earnings potential, increased by 8.41% from P36.84 million in the first quarter last year to P474.8 million this year.

Meanwhile, the agency’s operating expenses increased from P293 million in Q1 2020 to P298.35 million in Q1 2021, while operating income rose from P487.08 million in Q1 2020 to P522.49 million in Q1 2021, and bad debts expense decreased from P49.12 million in Q1 2020 to P47.69 million in the same period. 

“We have also recorded substantial income losses in the tourism, and understandably so because of so little visitor traffic since last year. But we have increases, too, in unexpected area,” Eisma revealed.

She said that collections in environmental and tourism fees dropped by 89% to just P3.06 million in the first three months this year, along with a 99% decline in tourism facilities utilities fees; 98.7% drop in tour guide fees; and 100% decline in rental of the Subic Bay Exhibition and Convention Center, which was previously an major income earner.

However, Eisma pointed out that the agency made P241,637 in sports facilities rental at the first quarter this year, compared to zero income last year; P35,000 in location site-shoot, which represented a 116% increase over last year’s figures; and P15,000 in fishing permit collection, which was 113% higher than that last year. (MPD-SBMA)

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SBMA earnings dip by 22% under Covid-19 pandemic

Earnings by the Subic Bay Metropolitan Authority (SBMA) decreased by as much as 22 percent in 2020 because of the economic slowdown last year brought about by the Covid-19 pandemic.

SBMA Chairman and Administrator Wilma T. Eisma said the Subic agency posted a total of P1.69-billion in earnings before interest, tax, depreciation and amortization (EBITDA) at the end of 2020, compared to the P2.17 billion figure it recorded at the end of 2019.

The 2020 figure was lower than the 2019 record by P486.73 million, or 22.35 percent.

Eisma said the Covid-19 pandemic affected not only the operations of business locators in the Subic Bay Freeport, but also those of the SBMA, which is a self-sustaining government-owned agency.

“Subic locked down for close to four months early last year because of Covid-19. That means factories were closed, stores were closed, and there was not much source of income to go around. Moreover, the SBMA was forced to forego much of its collections in the meantime, because there was hardly anything to collect,” Eisma recalled.

She added the economic slowdown “critically diminished the income-generating capacity of registered businesses and sent ripples of disruption across the Freeport that affected even the SBMA income.”

According to the 2020 consolidated year-end report from the SBMA Finance Group, the agency lost P530.31 million in operating revenue last year, whereas it raked in a total of P3.73 billion in 2019.

In terms of operating expenses, meanwhile, the agency was able to save P67.74 million in 2020, as it spent only P1.45 billion, which was 4.45 percent lower than its expenses of P1.52 billion in 2019.

The SBMA Finance Group also reported that the agency’s operating income in 2020 hit only P1.75 billion, which was 20.93 percent lower than the P2.21 billion in 2019, or a difference of P462.56 million.

On the other hand, the agency posted higher bad debts last year— from P32.09 million in 2019 to P56.26 million in 2020, or an increase of 75.3 percent.

Eisma said the agency expects its finances to somehow bounce back this year, as more Freeport firms increase operations under strict health safety protocols imposed by the Inter-Agency Task Force on Emerging Infectious Diseases (IATF).

Last month, the SBMA approved the Economic Relief Assistance (ERA) Payment Scheme that gave Subic locators up to 36 months to amortize bills that remained unpaid since the pandemic hit in March 2020.

Eisma said the measure was intended to help Subic businesses get back on their feet.

“We are now trying to open up the economy here little by little to curtail the lingering impact of the pandemic, and we’re giving every opportunity for our locators to normalize operations,” Eisma said. 

“I am wishing for bigger (financial) numbers this year, and we are getting back on track every little step that we can take forward, that’s why we always stress that we maintain safety protocols so we can get more industry sectors up and running,” Eisma pointed out.

The SBMA chief is scheduled to give her State of the Freeport Address next month to provide a more comprehensive report on the 2020 accomplishments of the agency and its plans for this year. (MPD-SBMA)

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SBMA Chairman and Administrator Wilma T. Eisma meets with members of the Subic Bay Freeport Chamber of Commerce on Feb. 3 to discuss 2021 plans and programs, as well as business concerns and protocols under the continuing Covid-19 pandemic. 

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