Subic Freeport posts P1.22-billion new investments in 2020

Despite the Covid-19 pandemic, the Subic Bay Freeport Zone still attracted new business projects last year, proving that opportunities abound even during challenging times in this competitive investment destination.

According to Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Wilma T. Eisma, a total of 63 new projects were put up by business locators here in 2020, mostly in the fields of construction, health and wellness, logistics, and information and communication technology (ICT).

Said projects yielded total commitment investments amounting to P1.22 billion, and generated a total of 682 new jobs.

On the other hand, expansion projects by existing business locators in the Subic Freeport totaled 16 in 2020, Eisma said. These are concentrated in construction, leisure, real estate, logistics, and petroleum trading.

The expansion projects generated a total of P163 million in new investments, as well as 264 additional employment.

“Apparently, there emerged some winners and some losers in Subic ever since the Covid-19 pandemic drastically changed how business is done globally. But the SBMA has done its best to help the businesses survive,” Eisma said.

She said that of the more than 3,300 companies operating in Subic when the pandemic broke out early last year, a total of 83 had since opted for non-renewal or pre-termination of their contracts with the SBMA.

“As of last month, there are still more than 200 companies that are not operating, including a few which are not yet allowed to operate under Covid-19 restrictions,” Eisma pointed out.

She said that most, or about 70 percent, of these are in the leisure industry, followed by manufacturing with 22 percent, and ICT at six percent.

As a result, a total of 8,129 workers were also affected by the business slowdown, she said. A total of 4,138 workers were put on forced leave; 2,265 were retrenched; and 3,642 entered into work arrangements with irregular work hours.

Eisma said that Subic had since gradually eased down on business restrictions, but with strict compliance of protocols laid down by the Inter-Agency Task Force on Emerging Infectious Diseases (IATF).

She said that aside from giving business locators various economic relief assistance during the pandemic, the SBMA will continue to be proactive in managing the Covid-19 situation in the Subic Bay Freeport to further stimulate the local economy and generate better benefits for Freeport stakeholders. (MPD-SBMA)

PHOTO:

SBMA Chairman and Administrator Wilma T. Eisma (center) joins the groundbreaking for a two-storey commercial building at the Subic Bay Gateway Park on Jan. 15 with (from right) Subic Bay Development Management Corp. president Willy Wang, Subic Bay Freeport Chamber of Commerce president Benjamin Antonio, and Dinalupihan Mayor Ma. Angela Garcia. 

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Ayala Land eyes free port perks for Olongapo project

The extension of Subic Bay Freeport’s tax and duty-free privileges to the City of Olongapo will be a key component in realizing the P3-billion development project proposed by Ayala Land, Inc. (ALI) for the city’s business district.

ALI president and CEO Antonino Aquino said that fiscal incentives like Subic’s minimal five percent gross income tax, if successfully extended to the 7,000-square meter Olongapo City Central Business District (CBD) Triangle, would set the stage for robust trade in the area.

Aquino said these tax and duty-free incentives would enable the planned tripartite committee to offer attractive deals to win the cooperation of Olongapeños, particularly the business group, which he said would be the “lifeblood of this development.”

SBMA administrator Armand Arreza assured Aquino that this prospect would be realized as soon as President Arroyo approved the implementing rules and regulations (IRR) of Executive Order No. 675, which was signed by the President on November 05, 2007 to expand the area where tax and duty-free privileges would apply.

“Once the President gives her approval, it is up to the City of Olongapo to decide what particular incentives to offer,” said Arreza.

Arreza and Aquino signed a memorandum of understanding with Olongapo Mayor James Gordon Jr. last week for the proposed Olongapo CBD Triangle project.

Per agreement, ALI will commission the master plan for the project free of charge, granted that the city government would give ALI the option to develop or purchase, subject to applicable laws, Olongapo City’s properties inside the 7,000-square meter project area.

The Ayala firm announced recently that it would invest P3 billion for a mixed-use master-planned community in the Subic Bay Freeport — a 7.5-hectare property separated from the proposed Olongapo City CBD Triangle only by a man-made channel.

Arreza, who pushed for the expansion of Subic’s free port regime to nearby communities, said the proposed project would boost Subic’s drive to gain more investments and create more livelihood opportunities for local residents.

He added that the recent moves of ALI, one of the biggest real estate developers in the country today, “clearly demonstrates what EO 675 can do to the regions between Subic and Clark.”

Arreza explained that under the EO 675, tax- and duty-free privileges within the Subic Special Economic and Free Port Zone (SSEFPZ) “shall apply within the secured area consisting of the presently fenced-in former Subic Naval Base and such other areas that may be identified, fenced, secured, or declared as additional secured area by the SBMA.”

The IRR for EO 675, a collaborative work of the SBMA and the Bureau of Customs (BOC) here, details the process of identifying, administering, and regulating the areas where said incentives can be extended.

Among the incentives the SBMA offers to investors registering in the Subic Bay Freeport are tax- and duty-free importation; exemption from all local and national taxes, with only a five percent corporate tax on gross income; unrestricted entry of foreign investments; no foreign exchange control; visas for foreign nationals; and expanded allowable deduction and higher percentage of income allowable from sources within the Customs territory for regional enterprises. (SBMA Corporate Communications)

Photo:
SUBIC-OLONGAPO BUSINESS TRIANGLE: SBMA Administrator Armand Arreza, Olongapo City Mayor James Gordon Jr., and Ayala Land, Inc. president Anthony Aquino sign an agreement for the development of a master plan for the Subic-Olongapo Central Business District Triangle project.

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SBMA approves US$57.74-M new investment projects

The Subic Bay Metropolitan Authority (SBMA) recently approved new investment projects worth a total of $57.74 million, as this free port continues to beat the odds of the global economic downturn and attract fresh capital infusion from both foreign and Filipino investors.

In ceremonies at the conference hall of the Subic Bay Development and Management Corp. on Wednesday, SBMA chairman Feliciano Salonga and SBMA administrator Armand Arreza formally signed in 17 new projects in four different industry sectors here.

These included six new projects in leisure industry worth a total of $ 53.59 million, three in manufacturing and maritime with total investments of $1.3 million, three in general business at a total of $266,274, and five in logistics with a total of $2.57 million.

According to Arreza, the latest additions to Subic’s growing business community “only proves the resiliency of the Subic Bay Freeport in attracting new investors despite the global economic crisis.”

He added that as of August this year, 65 new accounts have been added by the agency to the list of investor firms here that totaled 948 at the end of 2008.

Arreza also said that most of the 17 new investment contracts were signed by new business locators, while a few were by existing Subic firms that opted to expand operations.

The biggest investment commitments in this latest batch of approved projects is the P2.5-billion (about $50 million) commitment by Ocean Nine Philkor, Inc., a South Korean firm involved in the development and operation of hotels, casinos and resorts.

The firm, under its short-term plan, will be renovating a hotel complex in Subic’s Cubi area to start its hotel and casino operation by January 2010, Ocean Nine manager Charles Kim said during the contract-signing ceremony.

The second biggest project in this batch is the P70-million construction of a four-story hotel and expansion of a dining facility by Innasia Corp., which operates Courtyard Inn in this free port. This is followed by the P50-million expansion of Puregold Duty Free (Subic) Corp., and the $1-million project of Lionair Subic Philippines, Inc. for the servicing and maintenance of fixed- and rotary-wing aircraft here.

The new investors whose project proposals were approved by the SBMA under the leisure sector are: Aggressive North Developers, Inc., with P30 million for hotel and restaurant operation; Goltongne Subic, Corp., $368,333 for a restaurant and gift shop; Innasia, P70 million; LG Digital Plaza, Inc., P11.25 million for an authentic Ilonggo restaurant, wholesale and retail operations, and import/export services; Ocean Nine, P2.5 billion; and Puregold Duty Free, P50 million.

Under the manufacturing and maritime sector, the new projects are: Consummare, Inc., with $562,478 for the production of specialty wood products; Pacific Metal Works Corp., for steel fabrication; and Shang Min Construction Corp., $580,000 for trading of construction-related materials and equipment.

Under general business, the new locators are: Golden AI Trucking, with committed investments of $215,074; I Will Communicate, Inc., $30,000; and M&M Subic Bay Development Corp., $21,200.

Meanwhile, five new investments were approved under the logistics sector: Food Entrepreneur and Exporters of the Phil., with $470,000 for trading in grains and meat products; Lionair Subic, $1 million; Omni Aviation Corp., $700,000; Solutions Advancing Global Enterprise International Import-Export Corp., $300,000; and Subic Bay Merlion Trading, Inc., with P5 million for the transshipment of wines and liquors.

In the same occasion, SBMA Chairman Feliciano Salonga thanked the new business locators “for having confidence in the Subic Bay Freeport”, and vowed the agency’s full support and cooperation. (SBMA Corporate Communications)

PHOTO:
SBMA Chairman Feliciano Salonga (3rd from right, second row) and SBMA Administrator Armand Arreza (7th from left, second row) join representatives of new investor-companies at the Subic Bay Freeport Zone after a mass contract-signing on Wednesday.

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One-stop health and wellness center is Subic Bay’s newest attraction

Efforts to make Subic Bay a household name in medical tourism received a big boost recently, with the inauguration here of the George Dewey Medical and Wellness Center (GDMWC) on August 14.

No less than President Gloria Macapagal-Arroyo inaugurated the one-stop medical and wellness facility, which is touted to be the first of its kind in Asia.

The US$30-million center is located inside Villa Amorosa, a self-contained health resort for retirees, medical practitioners and medical students in this free port.

The center, which includes a 100-bed tertiary hospital, is named after Commodore George Dewey of the US Navy, who liberated Subic Bay from the Spanish armada in July 1898. The whole facility is owned and operated by the George Dewey Medical College, Inc..

“The Center is our response — the Philippine response — to the challenge posed by our neighbors like Thailand, Singapore and Malaysia for leadership in medical tourism,” said Dr. Carmen Dinglasan, president of GDMWC.

She added that the center targets to serve patients from Northern and Central Luzon, who previously had to endure long travel hours to Metro Manila or abroad to seek professional medical and health services.

Among the services the new facility provides are: cardiac surgery, joint and hip replacement, reconstructive surgery, corneal transplant, refractive surgery and multi-focal intraocular lens implantation, stem cell rejuvenation, sleep disorder therapy, transplant surgery, laboratory analysis, pain management, fertility clinic, and dental implants.

In addition, the GDMWC is a health resort for retirees. It also caters to persons seeking medical treatment or check-up, or those who have concerns about their well-being.

Dinglasan said the cost of medical care like these are a lot cheaper in the Philippines than in the United States, for example.

“So when they’re in Subic, patients can also enjoy long sabbaticals as tourists with their families,” she said.

Noting that there are now more foreigners who have made Subic their second home after investing here in various businesses, Dinglasan added that the GDMWC also hopes to cater to the expatriate community.

The entire facility is located inside the forest at Subic’s Upper Cubi area — a location that is said to be perfect for rest, taking medication, and strengthening one’s mind and body.

“A healthy environment is one factor that helps improve health, and George Dewey has this advantage,” Dinglasan added.

Aside from the GDMWC, other facilities that are now open at Villa Amorosa are the George Dewey Medical College; a gymnasium, which has separate saunas for male and female; and a chapel.

However, in the next 45 days, the complex will also open to the public a 72-bed retirement facility; a clubhouse for conferences, club meetings and socials; a mini mart, restaurants, mini-sports complex, and a mini-theater that can accommodate 500 guests.

Next year, the construction of a 500-unit condominium for retirees will also start, GDMWC officials said.

When fully completed, the Center will have all the amenities one would expect in world-class destinations, including facilities for sports, shopping, entertainment, leisure and business.

Meanwhile, SBMA administrator Armand Arreza said that the project is in support to President Arroyo’s program on the promotion of greater health consciousness among Filipinos.

Arreza was among the personalities who accompanied the President in gracing the inauguration of the GDMWC. Others included SBMA chairman Feliciano Salonga, GDMWC chairperson Winnie Monsod, Representatives Mitos Magsaysay and Carissa Coscolluela, and Sec. Eduardo Pamintuan of the Subic-Clark Alliance for Development Council.

Arreza said that the new medical facility will benefit both local residents and foreign nationals temporarily living in various economic zones in Central and Northern Luzon, who can now easily access Subic via the Subic-Clark-Tarlac Expressway.

The SBMA official also noted that foreigners appreciate the way Filipinos take care of their elders, which is rarely practiced in other developed countries like Japan, the United States and Europe.

Likewise, the Subic Bay Freeport Zone has an edge in medical tourism because of its clean environment and high level of security, Arreza added.

Among the people behind the GDMWC are: Dr. Fe Hildalgo, former education undersecretary and now president of the George Dewey Medical College (GDMC); Dr. Ruby Cereneo, former dean at the Lyceum of the Philippines, now GDMC vice president for academic affairs; Rony Diaz, former Manila Times publisher, and former labor undersecretary; Winnie Monsod, former NEDA chief, now GDMWC chairperson; Dr. Manuel Chua Chiaco, a well-known heart surgeon from the Philippine Heart Center, now GDMWC medical director; and Jose Araullo, former chairman of the law firm Araullo, Punongbayan and Associates.

The GDMWC now employs 200 medical staff and health-related workers. It would need another 300 for its shopping areas, sports complex, restaurants and condominiums when they open in 2010. (SBMA Corporate Communications)

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GMA inaugurates one-stop wellness center in Subic Bay

President Gloria Macapagal-Arroyo will inaugurate on Aug. 14 the George Dewey Medical and Wellness Center - the only one of its kind in the Philippines- located at the Subic Bay Freeport Zone.

The George Dewey Medical and Wellness Center is a 100-bed tertiary hospital owned and operated by the George Dewey Medical College, Inc., a 5-year old nursing college. It sits on a 12-hectare facility, perched on top of a hill surrounded by a lush forest.

"The Center is our response - the Philippine response-to the Challenge posed by our neighbors like Thailand, Singapore and Malaysia for leadership in Medical tourism," Dr. Carmen Dinglasan, the George Dewey president said.

President Arroyo will lead a group of leaders from Olongapo City, Subic Bay Freeport Zone, Guam and the medical community in the opening of the one-stop medical and wellness center.

Located at Villa Amorosa, Upper Cubi, inside the Freeport, the center has the potential to become a leader in medical tourism. Many of its medical staff were trained in the United States and Europe and are some of the best in their fields of specialization in the country. Many of the doctors are speakers in International conventions.

Because of its proximity to Central and Northern Luzon, the George Dewey Medical and Wellness Center can serve the medical and health needs of the residents from Zambales, Bataan, Pampanga, Tarlac, parts of Bulacan, Nueva Ecija, CagayanValley, Isabela, La Union, the Ilocos provinces and the Clark Economic Zone.

Some of is services include cardiac surgery; joint and hip replacement; reconstructive surgery; corneal transplant; refractive surgery and multi-focal intraocular lens implantation; stem cell rejuvenation; sleep disorder therapy; transplant surgery; laboratory analysis; pain management; fertility clinic and dental implants.

In addition, the Center is a health resort for retirees. It caters to persons seeking medical treatment, checkup or have concerns about their well-being. When fully developed, it will have boutique stores, mini-groceries, a sports complex, a 500-unit condominium, a business center, fine restaurants, coffee shops, a conference center and places of worship for people of all beliefs.

Some of the people behind George Dewey Medical and Wellness Center are Dr. Fe Hidalgo (President George Dewey Medical College, former Undersecretary, Dept. of Education); Dr. Ruby Cereneo (VP for Academic affairs, George Dewey Medical College; former Dean, College of Arts and Sciences, Lyceum of the Philippines; Rony Diaz (former publisher, The Manila Times, former Labor undersecretary and former chief of a regional program of the International Labor Organization based in Islamabad); Dr. Carmen N. Dinglasan (President, George Dewey Medical and Wellness Center and one of the two owners of Makati Eye Laser Center at the Fort); Ms. Winnie C. Monsod (former head of NEDA and the UP School of Economics. She is the George Dewey Medical and Welless Center chairperson) ; Dr. Manuel Chua Chiaco (Medical Director, George
Dewey Medical and Wellness Center, a well-known, highly respected heart surgeon from the Philippine Heart Center); and Jose Araullo (former chairman of the Araullo, Punongbayan and Associates).

George Dewey Medical and Wellness Center is part of Villa Amorosa, a self-contained health resort for retirees, medical practitioners and medical students. A $30 million medical- tourism project, it employs 200 medical staff and health-related workers and would need another 300 for its shopping areas, sports complex, restaurants and condominiums when they open in 2010. It is the first of its kind in the Philippines. (PIA)

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