SBMA approves 71.34% of ₱46.23-B total FDIs by all IPAs

A total of ₱32.98 billion in foreign direct investments (FDIs) approved in this premier freeport accounted for 71.34 percent of the total ₱46.23 billion approved by all Investment Promotion Agencies (IPAs) in the country during the second quarter of 2022.

These investments were pledges approved by the following IPAs: Authority of the Freeport Area of Bataan (AFAB), Board of Investments (BOI), BOI-Bangsamoro Autonomous Region in Muslim Mindanao (BOI-BARMM), Clark Development Corp. (CDC), Cagayan Economic Zone Authority (CEZA), Philippine Economic Zone Authority (PEZA), Poro Point Management Corporation (PPMC) Tourism Infrastructure and Enterprise Zone Authority and the SBMA. 

According to SBMA Chairman and Administrator Rolen C. Paulino, this figure has recorded a significant year-on-year leap of 160,792 percent from ₱20.5 million of the same period last year to ₱32.98 billion this year.

Paulino attributed the said significant leap mainly to the aggressive efforts of the SBMA business group in attracting investors to make it happen in the Philippines, especially in Subic Bay. 

He also said that this is also partly a result of the implementation of the Fast, Friendly, and Flexible service to the SBMA’s stakeholders to help in the economic recovery from the effects of the pandemic. 

“We want companies to invest inside the Subic Bay Freeport Zone, and to do so, we want them to have a friendlier atmosphere while providing flexible terms for them in a fast and efficient way,” he said.

Paulino, likewise, disclosed that these FDIs approved by the SBMA Board of Directors showed a surge of 30,205.9 percent from the first quarter’s ₱108.83 million to the second quarter’s ₱32.98 billion this year alone. 

Senior Deputy Administrator (SDA) for Business and Investment Renato Lee III said that the biggest FDI accounted for came from Vectrus Subic Corporation (formerly Vector Services Philippines, Corp.) with a whopping ₱14.5-billion investment.

He added that the company is followed by Agila South, Inc. with an investment of ₱10.73 billion; Agila NY Naval Inc. that has an approved investment of ₱6.28 billion; and Agila Subic TC Inc. with an investment of ₱313.13 million, to name a few. 

“The investment growth at the Redondo Peninsula where the biggest approved projects for the second quarter of 2022 will be located will certainly spur growth in the area. The agency expects more influx of FDIs once these companies are in full swing,” Lee stated.

Lee said that Agila would be utilizing the Redondo Peninsula area as an industrial park for ship repair companies.

He said that the biggest foreign investor Vectrus Subic Corporation is engaged in general logistics services and service exports. He added that the company would be subleasing the area currently leased by Agila at the former Hanjin Shipyard facility in Redondo Peninsula.

Meanwhile, apart from the ₱32.98 billion in foreign equity of FDIs, the SBMA also approved ₱2.37 billion in Filipino equity, which is part of the 37 investment projects approved for the second quarter and will generate employment for 433 residents of Olongapo City, Bataan and Zambales. (MPD-SBMA) 

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Subic spurs investor interests in Dubai trade mission

The Subic Bay Metropolitan Authority (SBMA) has successfully pushed the Subic Bay Freeport Zone as a sustainable and competitive business and industrial center in the Philippines during a recent trade mission in the United Arab Emirates (UAE).

As a result, Subic has sparked strong investor interest in the fields of cargo logistics, renewable energy, aviation, vaccine manufacturing, and compliance solutions during business meetings held in the emirate city of Dubai on February 9 to 14, said SBMA Chairman and Administrator Wilma T. Eisma in a report to President Duterte.

Among the groups that Eisma discussed business potentials in Subic with are the Abu Dhabi Ports, a logistics operator and manager of industrial zones and ports in the UAE, and the Philippine Business Council of Dubai and Northern Emirates, which promotes cooperation among business communities in Dubai, the Northern Emirates and the Philippines.

Eisma also offered the Subic Bay International Airport (SBIA) as an alternative hub for the UAE flag-carrier Emirates during a meeting with Orhan Abbas, the firm’s senior vice president for the Far East. “This might increase the number of commercial flights from Dubai to the Philippines and from the Philippines to Dubai,” she added.

During the Dubai sojourn, Eisma likewise attended the Philippine Country Business Briefing headed by Trade Secretary Ramon Lopez on Feb. 11, and participated the following day in the Philippine National Day, which was attended by thousands of Filipinos in Dubai.

“We have high hopes that Subic got the attention of major industry members in the UAE, especially with the endorsement we received from the Philippine Business Council of Dubai and the Northern Emirates,” Eisma said on Tuesday.

SBMA Senior Deputy Administrator for Operations Ronnie Yambao, who joined Eisma in Dubai, said the Subic team briefed businessmen and venture capitalists on trade opportunities in Subic during the weeklong mission and promoted it as a premier investment destination in the Southeast Asian Region.

On Feb. 9, Eisma’s team had a productive meeting with Suchit Kapoor, business director of the Abu Dhabi Ports Company, and Dogus Durhan, business manager of the Abu Dhabi Ports Group, and discussed cargo expansion, integrated technology, and a business model design through partnership.

Next, Eisma met with Jon Salazar, founder and president of Gazelle Wind Power, a Dublin-based producer of hybrid floating offshore wind platform, for a possible project to drive Subic’s renewable energy program.

Eisma then went on to talk with Stephan Thomas, senior director and CFO of Group 42 (G42), an artificial intelligence and cloud computing company with interests in healthcare, finance, oil and gas, aviation, and hospitality. G42 was looking for partners for a joint venture to manufacture and distribute Covid-19 vaccines in the Philippine and the Southeast Asian region.

Following that, the SBMA team met with Angeline Rivera, sales and marketing manager of Prime Group, a leading quality and compliance solutions provider in Asia, Middle East and Africa. Rivera said their company is considering Subic for its expansion program.

Lastly, Eisma coordinated promotion of the Subic Bay Freeport in the UAE with Prof. Gau G. Raganit, chairman of the Philippine Business Council of Dubai and Northern Emirates, which promotes trade among business communities in Dubai, the Northern Emirates and the Philippines. (MPD-SBMA)

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Philippines' total approved foreign investments down by 44.4 percent in Q3 2014

MANILA - Total foreign investments (FI) approved in the third quarter of 2014 by the seven investment promotion agencies (IPAs), namely: Board of Investments (BOI), Clark Development Corporation (CDC), Philippine Economic Zone Authority (PEZA), and Subic Bay Metropolitan Authority (SBMA) as well as the Authority of the Freeport Area of Bataan (AFAB), BOI-Autonomous Region of Muslim Mindanao (BOI-ARMM), and Cagayan Economic Zone Authority (CEZA) amounted to P18.3 billion, 44.4 percent lower than the P32.9 billion recorded in the same period last year.

Meanwhile, total approved FI for the first nine months of 2014 reached P91.8 billion, declining by 35.4 percent from the amount recorded last year at P142.1 billion.

The top three prospective investing countries during the quarter include the Netherlands, Japan, and the United States of America (USA). Netherlands topped the list, pledging P4.4 billion or 24.3 percent share, followed by Japan and USA, committing P3.7 billion and P2.8 billion, or 20.1 percent and 15.3 percent of the total approved FI, respectively.

Manufacturing industry contributed the largest amount of committed foreign investments in the third quarter of 2014, with investment pledges recorded at P8.8 billion or 48.0 percent of the total FI. Administrative and support service activities came in second, contributing 20.8 percent or P3.8 billion worth of investment commitments, followed by real estate activities, which accounted for 13.3 percent or P2.4 billion.

Approved investments of foreign and Filipino nationals reached P159.6 billion during the period, declining by 15.7 percent from last year’s P189.3 billion. Filipino nationals continued to dominate the investments approved during the quarter, sharing 88.5 percent or P141.3 billion worth of pledges.

Bulk of the investments are intended to finance activities in manufacturing, contributing P67.6 billion and with a share of 42.4 percent, followed by real estate activities at P31.4 billion or 19.7 percent share, and construction at P24.8 billion or 15.5 percent share.

Total projects of foreign and Filipino investors approved by the seven IPAs in the third quarter of 2014 are expected to generate 54,606 jobs, an increase of 38.9 percent from last year’s projected employment of 39,314 jobs in the same period. Out of these anticipated jobs, 74.3 percent would come from projects with foreign interest. (PIA) 

http://news.pia.gov.ph/article/view/2131418721159/total-approved-foreign-investments-down-by-44-4-percent-in-q3-2014-

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IPAs to set unified investments goal and strengthen referral system

The government’s investment promotion agencies (IPAs) are expected to come up with a unified investment target as they collaborate to further strengthen a referral system to promote each other in their various investment campaigns, including the huge agricultural potential for Bangsamoro provinces.

Trade and Industry Undersecretary Ponciano C. Manalo Jr. told reporters that heads of the various IPAs met recently in Zamboanga City and agreed to jointly promote the country as an investment destination with a single message “Invest Philippines”.

With that, Manalo said the IPAs should have a common investment target noting that the Board of Investments and the Philippine Economic Zone Authority are the ones accounting for the bulk of investments generation.

At present, each IPAs have individual targets which are later on combined but Manalo, as head of the DTI investment promotion group, said the IPAs, can adopt a unified target where there is a specific target for foreign direct investments and total projects approved.

The IPAs are led by the government’s premier investment premier investment promotion agency Board of Investments (BOI). Other IPAs include the Philippine Economic Zone Authority, Subic Bay Metropolitan Authority, Cagayan Economic Zone Authority, Zamboanga Special Economic Zone, Aurora Special Economic Zone, Philippine Retirement Authority, Phividec Industrial Estate, BOI-Autonomous Region of Muslim Mindanao and the Bases Conversion Development Authority.

In 2010, the IPAs had set an investments growth target of 10 percent in 2010 and 15 percent for 2011 to 2012 and 20 percent by 2013 to 2014. Investments generated by the government’s IPAs in 2009 reached P315.28 billion from P473.25 billion in 2008.

The setting of an investments target could help the IPAs measure their performance in light of the good reviews the country has been getting from the international business community.

“We should be running on all four cylinders,” Manalo stressed.

To push for an aggressive investment promotion campaigns, Manalo also urged the iPA members to work together by providing referrals for each other noting that not every IPA can accommodate all the specific needs of investors. There are small IPAs that can host small manufacturing operations.

“I encourage them to work together that even if they have specific mandate they can refer each other for projects that are suitable in another area,” Manalo said.

He cited the case of the recent P9 billion investment of Panhua Group Co. Ltd. in Subic Bay. The Chinese firm plans to build a pre-paint could and metal sheets factory for export and domestic markets.

The Panhua investment was actually an effort of the BOI, which was referred to the more appropriate Subic Bay Metropolitan Authority because Subic can appropriately serve the requirements of this manufacturing firm.

Manalo also cited the Authority of the Freeport Authority of Bataan, which has already an established players of garments and leather goods making it easier in terms of materials sourcing.

In the case of the Bangsamoro, Manalo was positive that once the law is passed, there will be more investments inflow particularly in agriculture in this region

“I am very hopeful, Mindanao is very rich in agriculture and agri processing,” he said.

It is rich in fisheries, rubber, seaweed manufacturing, tuna and sardines processing.

“Once the Bangsamoro is completed with a plebiscite, I am very hopeful for Zamboanga,” he added.

The incentives to be granted by IPAs to investors will depend on the list of economic activities listed under the Investment Priorities Plan (IPP), an annual list of priority projects that are entitled to government incentives.

Manalo further said the 2014 IPP has identified sectors that need reinvestments the most. (Bernie Magkilat, Manila Bulletin)

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Government sees accelerating inflow of investments in the next 5 years

The investment promotion agencies foresee an accelerating investments inflow in the next five years from 10 percent growth this year to 20 percent by 2014 driven by the eight industry winners.

Based on the final draft of the Philippine Investment Promotion Plan, which was formulated by 11 government investment promotion agencies (IPAs), the industry growth drivers are agro-industry, BPO-IT, electronics-semiconductor, energy, logistics, mining, shipbuilding and tourism.

The IPAs that would work for the attainment of the growth targets include the Board of Investments, Philippine Economic Zone Authority, Subic Bay Metropolitan Authority, Cagayan Economic Zone Authority, Zamboanga Special Economic Zone, Aurora Special Economic Zone, Philippine Retirement Authority, Phividec Industrial Estate, BoI-Autonomous Region of Muslim Mindanao and the Bases Conversion Development Authority.


The PIPP will be launched on Wednesday, April 21, by Trade and Industry Secretary Jesli A. Lapus and Japan International Cooperation Agency representative Norio Matsuda. JICA provided for the funding of the 5-year PIPP.

The PIPP has set out an investments growth target 10 percent in 2010 and 15 percent for 2011 to 2012 and 20 percent by 2013 to 2014.

This medium-term marketing plan of the country’s IPAs is expected to steer the Philippines through the tides of globalization and beef up capital inflows into the economy.

The PIPP will serve as the guiding document for all IPAs to synchronize strategies in investment promotion in order to achieve a world class brand image for the country.

Investments generated by the government’s IPAs in 2009 reached P315.28 billion from P473.25 billion in 2008.

The five-year PIPP has also prescribed for a targeted marketing of investment promotion activities.

In particular, the five-year PIPP has put emphasis on Japan being the country’s number one foreign investor.

The plan has identified Japan as an investor that is going to sustain its investments in the country.

The plan noted of Japan’s propensity for green and greenfield projects.

Based on the PIPP’s Qualitative Goal for Japan, the country’s biggest investor is expected to pour more investments in the motor vehicle sector where it is racing for the production of electric vehicles and also in steel manufacturing. (Bernie Cahiles-Magkilat, Manila Bulletin)

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JICA study shows SBMA as most resilient IPA

Investment generation figures collated by a leading Japanese think tank have shown that the Subic Bay Metropolitan Authority (SBMA) is the only Investment Promotion agency (IPA) in the Philippines that turned out a positive output based on year-on-year figures in the first quarter.

According to the Nomura Research Institute (NRI), which prepared a study on the ongoing impact of the global financial crisis on foreign direct investment (FDI) in Asia, the Philippines is also reeling from a decrease in foreign investments due to the current economic slowdown.

However, the NRI study indicated that despite a generally negative record among IPAs in the Philippines, the SBMA, which manages the Subic Bay Free-Port Zone, has reported a 13.6-percent increase in committed investments based on year-on-year figures for the first quarter of 2009.

The NRI, which is reputedly Japan’s largest firm in consulting and system solutions services, prepared the study for the Japan International Cooperation Agency (Jica).

The study, the SBMA said in reaction, only indicated the “apparent resiliency of the Subic Bay Free Port as an investment location.”

According to the first version of the NRI report, which was dated June 2009, FDI commitments secured by the SBMA in the first quarter of 2009 totaled P1.5 billion.

Meanwhile, all of the other Philippine IPAs reported a year-on-year decrease in commitments for the same period, the NRI said.

These included the Board of Investments, which recorded a 57-percent decrease to P4.3 billion; the Philippine Economic Zone Authority (Peza), with a 50.8-percent decrease to P13.6 billion; and the Clark Development Corp., with a 72.5- percent decrease in commitment basis.

Documents gathered by the BusinessMirror showed the NRI prepared the report on FDI commitments in the Philippines for Jica in connection with a proposal for the development of the Philippine Investments Promotion Plan (PIPP).

The PIPP seeks, among others, the creation of an interagency body “to oversee the implementation and monitoring of all programs, activities and projects to improve investment climate” in the country.

The network of IPAs, including the SBMA, “is tasked with formulating and developing strategies to position the Philippines as among the prime investment destinations in Asia,” the NRI said.

In the same report, the NRI mentioned that FDI generation also fell in other Asian countries as a result of the global financial crisis.

These included Thailand, which posted a 26-percent decrease in capital commitments; Vietnam, with a 67-percent decrease in capital realization; India, with a 28-percent decrease in FDI realization; and even China, which suffered a 21-percent decrease in FDI realization.

However, the NRI particularly noted that the Philippines “has attracted far less FDI than its peer Asean countries.”

The SBMA, however, had somewhat bucked the downtrend in investment commitments when it signed up a total of 30 new projects worth P1.5 billion in the first quarter, bringing to 966 the total number of registered investors here.

SBMA Administrator Armand Arreza said the uptrend in Subic was due to a self-sustaining business environment created by the SBMA in Subic over the years “that was directed toward various industries that require less dependence on foreign markets.”

Arreza added Subic’s 2009 investment generation was recently boosted further by new investment pledges worth $86 million by South Korean shipbuilder Hanjin Heavy Industries & Construction Corp., a firm that has already set up a $1.7-shipyard in Subic.

Hanjin officials said the new investments would be for the production of ship components at the Subic facility and would be committed in two parts: $29 million starting September this year, and $57 million next year and onward. (Henry Empeño, Business Mirror Online)

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