SBMA gets $1.225M in cash dividends from SBDMC

The Subic Bay Metropolitan Authority (SBMA) received US$1.225 million in cash dividends from the Subic Bay Development and Management Corporation (SBDMC) during a ceremony in Taipei.

According to SBMA Chairman and Administrator Rolen C. Paulino, the dividends is part of the agency’s share from the SBDMC. He added that the company has declared US$2.5-million in cash dividends for its shareholders, wherein the SBMA has a 49 percent stake in the company.

The SBDMC Board of Directors approved the declaration of the US$2.5-million cash dividend during the board’s 68th meeting held on March 29, 2023 in Taipei. 

The SBDMC Inc. is a joint venture company formed in 1995 between the SBMA and Taiwan’s United Development (UD) Corporation to establish, construct, operate and manage the then Subic Bay Industrial Park, now named the Subic Bay Gateway Park (SBGP).

“The SBDMC, Inc. declared US$2.5M cash dividends with the SBMA having a 49 percent equity share. Meanwhile, UD Corporation, with 51 percent equity share in the company, received US$1,275,000,” Paulino said.

Chairman Paulino represented the SBMA in Taipei, Taiwan, along with Directors Cynthia Paulino, Rolando Ampunin, Raul Marcelo, Ma. Cecilia Bitare, and Senior Deputy Administrator Ramon Agregado.

The SBMA Chief also cited that this is first time that the SBDMC has distributed cash dividends from 1994 since the company has been paying religiously to the agency relative to the Supplemental Agreement until 2025.

The SBMA officials were in Taipei for a trade mission, where they attended the inauguration of the Taipei Bioinnovation Park.

During the visit, Paulino expressed his gratitude to TECO Group of Companies Chairman and Century Development Corporation Chairman Theodore Huang, and SBDMC Inc. Chairman Willy Wang for the warm reception.

He cited that the public-private collaboration formula being used by the companies is beneficial for the growth and development of the community, adding that the formula can also be applied in Subic Bay Freeport. (MPD-SBMA)

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Taiwan business mission eyes more economic activities in Subic Bay Freeport

Top honchos of the Taiwanese business community are eyeing new investments inside this premier Freeport during their visit here recently thru the Philippine Trade and Investment Center (PTIC) of Taipei. 

According to Subic Bay Metropolitan Authority (SBMA) Senior Deputy Administrator for Business and Investment Renato Lee III, the Taiwanese businessmen came to the Freeport for the Integrated Investment Campaign: New Southbound PH Taiwan Delegation to the Philippines. 

Lee said that the business mission here is an offshoot of the Integrated Investment Promotion Campaign in Taiwan back in October 2022 where the SBMA participated. 

The group led by Terry Lin, Investment Officer of PTIC-Taipei was welcomed by Lee and other SBMA officials at the Formosa Hall of the Subic Bay Development and Management Corp. (SBDMC) admin building where the delegation was given a presentation of the Subic Bay Freeport business climate as well as advantages of investing here.

Manager of the Business and Investment Department (BID) for Manufacturing and Maritime Karen Magno facilitated the presentation for the Taiwanese delegation, providing insights on the many perks that this premier Freeport has to offer.

Magno cited that there are two Taiwanese industrial parks situated here, the Subic Bay Gateway Park and the Tipo Hightech Eco Park (THEP). She said that both industrial areas are conducive for businesses that intend to make it happen in the Philippines because both are good for businesses dealing in manufacturing various items such as packaging materials and appliances.

Also present in the event was Subic Taiwan Chamber of Commerce President Andy Liu who gave his welcome message to the delegation, sharing that the number of Taiwanese investments in the Freeport is among the biggest in terms of nationality.

Delegates representing ten Taiwanese companies came to the Subic Bay Freeport Zone to conduct an ocular inspection of the area. The group was welcomed by fellow Taiwanese businessmen who located here including SBDMC Inc. President Willy Wang, Wistron Infocomm Philippines Corp. Director Wallice Wang, Subic Technic Inc. EVP Louis Kuo, and Limech Manufacturing and Trading Corp. President Sammy Chou.

Meanwhile, Taiwan investors here also boasted of a diligent and capable workforce who are proficient in English, logistical advantages for having an airport and a seaport, tax incentives due to being an economic zone, capable utilities, electricity and telecommunications.

In his closing remarks, Deputy Administrator for Business Group Atty. John Aquino said that Subic Bay Freeport is not just an industrial and manufacturing area but Freeport also an ideal destination of tourism amenities that will provide rest and relaxation to Taiwanese businessmen who plan to live here with their family.

He also added that Subic Freeport is the number one tourist destination of the region since there are numerous beach resorts, theme parks, and other tourism-related businesses here. (MPD-SBMA)

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Subic firms launch P72-M commercial complex despite Covid pandemic

Companies registered in this Freeport not only continue to do business but are even expanding operations despite the lingering impact of the Covid-19 pandemic in the local economy.

Last Friday, Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Wilma T. Eisma graced the inauguration of the SBGP-FSI Commercial Complex, a P72-miliion commercial project right at the Subic Bay Gateway Park, an industrial enclave populated by mostly Taiwanese companies.

Eisma said the new project, which broke ground last year, “demonstrates the resiliency of the Subic Freeport to rise amid the pandemic because of solid economic foundation and proves that the Subic agency has taken the right response to the challenges posed by the Covid pandemic.”

The newly-inaugurated complex is a two-story building located along Efficiency Avenue that top-bills SBGP Food Services, Inc. (SBGP-FSI), a joint venture between SBGP developer Subic Bay Development and Management Corp., Inc. (SBDMC) and MCOM Subic Corporation, a firm engaged development and management of properties.

SBDMC President Willy Wang, who also heads SBGP-FSI, said the complex has a high-end 7-Eleven convenience store that has the first ever drive-thru in the country.

The complex also features the Royal Park Restaurant that offers authentic Taiwanese cuisine, a TECO home appliances store, a Taiwanese food specialty store that offers authentic Taiwanese food products, and a function hall with a capacity of 100 persons.

In the same occasion, several Taiwanese firms also donated to the SBMA two ambulances, a police patrol car, and a vaccine refrigerator to boost Subic’s capacity in its vaccination program.

Taian Subic Electric donated the vaccine chamber, while the SBDMC and MCOM Subic Corp. donated the two ambulances. Meanwhile, the police patrol pick-up truck was donated by members of the Subic Bay Taiwan Chamber of Commerce: SBDMC, Inc., Universal Philippines Corp., Sky Movement Logistics, Inc., Tailin Abrasives Corp., Haw Cheng Yen (Paul Gan), Le Charme Hotel, Upower Building Corp., Jack Metal, Inc., Limech Mfg & Trading Corp., Tao Hang Corp., and MSK Group Work, Inc.

Taipei Economic and Cultural Office (TECO) Philippine Representative Michael Hsu, who also graced the opening, said the SBGP-FSI project and the corporate donations are “a testament of the strong relationship between the Philippines and Taiwan.”

“Now that the SBGP-FSI has opened, Filipinos here can savor the taste of Taiwanese cooking,” Hsu said, adding that cuisine from different countries can break boundaries, and bring countries together.

Senator Richard Gordon, who was among the virtual guests during the inauguration, commended the SBGP-FSI investment, citing that the Taiwanese were among the first to invest in Subic after the US Navy left. He added that Taiwan has been very supportive of the Philippines in terms of business and aid.

Among the local officials who attended the opening were: Hermosa Mayor Antonio Joseph Inton; Olongapo Vice Mayor Jong Cortez; TECO Chairman Theodore Huang; Philippine Seven Corp. Vice President Robert Tseng; SBDMC Chairman Chin Der Ou; SBGP-FSI Chairman Tung Hai Kao; Taiwan Trade Center Director Clement Chen; Taiwan Chamber of Commerce and Industry in the Philippines Inc. Chairman Michael Lin; Taiwanese Compatriot Association in the Philippines Chairman Simon Su; Subic Taiwan Chamber of Commerce President Andy Liu; Subic Bay Freeport Chamber of Commerce Executive Director Donna Tamayo; SBMA senior deputy administrators Ramon Agregado and Ronnie Yambao; and SBMA Board directos Benasing Macarambon Jr., Rolando Ampunin, Maria Cecilia Bitare, and Marvin Macapagal. (MPD-SBMA)

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Taiwanese firm to manufacture face mask, PPEs in Subic

A newly-formed Taiwanese company in the Subic Bay Freeport will be manufacturing face masks and other personal protection equipment (PPEs) to help address a continuing demand for health safety gears, especially during the Covid-19 pandemic.

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Wilma T. Eisma said the SBMA management has recently green-lighted the operation of Mask Secure King Inc. (MSK) to help increase the country’s production capacity for PPEs and other medical consumables.

Mask Secure King Inc., which is under the umbrella of Taiwanese construction and engineering giant MSK Group Work Inc., will set up a manufacturing facility here at the Subic Bay Gateway Park II where it has leased a 1,860-square meter building space from the Taiwanese real estate developer Xantheng Subic International Corp.

Eisma said the MSK has committed US$500,000 for the manufacturing project and will employ 35 workers during its first year of operation.

The firm will do business under the trade name “Secure Masks and Protective Gears.”

According to the SBMA Business and Investment Department for Manufacturing and Maritime (BID-MM), the Subic agency approved MSK’s proposal early this month after it filed for a Certificate of Registration and Tax Exemption (CRTE).

The firm’s registered business activity focused on the manufacture of medical devices, medical tools and equipment, medical consumable products, and personal protective gears and equipment.

Among the PPEs MSK will produce are medical disposable masks, gloves, foot and eye protection devices, protective hearing devices like earplugs and muffs, hard hats, respirators, and full body suits.

BID-MM manager Karen Magno said the SBMA has already endorsed to the Department of Trade and Industry (DTI) the purchase by MSK of mask machines from Taiwan, as well as the importation of non-woven mask materials for its Subic manufacturing operations.

MSK will be the first Subic-registered company to engage in the manufacture of health and safety products and personal protective gears, Magno said.

Another firm, which had since relocated to Bataan, previously produced in Subic only hospital textiles and garments.

Eisma said the operation of MSK will boost local production of N95 medical masks, PPE coveralls, as well as ventilators which had no known local producer prior to the Covid-19 pandemic.

At the same time, she said it will bolster the growing confidence of Taiwanese manufacturers in the Subic Bay Freeport Zone and further enlarge MSK’s development footprint here. 

The SBMA chief noted that the MSK Group had begun a P2-billion luxury residential project here in 2017 while Xantheng followed it up with a P15-billion green industrial park development project last year.

“Taiwanese investors, particularly the MSK Group, have been thriving here and continuously supporting and contributing to the development of the Subic Bay Freeport Zone. This manufacturing project by MSK will be another welcome addition to our list of timely business projects here in Subic,” Eisma added. (MPD-SBMA)

PHOTO:

Mask Secure King Inc., which will manufacture face masks and PPEs will be located at Phase 2 of the Subic Bay Gateway Park

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Taiwanese traders bullish on Subic business

Taiwanese investors have expressed confidence on the business outlook at the Subic Bay Freeport with the opening here last week of semi-conductor and electronics trader Yubantec, the latest Taiwanese company to locate in this free port.

Dr. Chin Der Ou, chairman of Subic Bay Development and Management Corporation, Inc. (SBDMC), which manages the Subic Gateway Park here, said the ongoing facilities improvement projects being undertaken by the Subic Bay Metropolitan Authority (SBMA) portend better business in Subic.

“There are many facilities improvement projects now. There are road construction and repairs, drainage improvement, as well as capacity expansion of the Subic Expressway. These are all good for investors,” Dr. Ou said during the Yubantec inauguration.

“I’m confident that Yubantec will do well in such a favorable business environment,” he added.

Taipei Economic and Cultural Office (TECO) representative Michael Hsu, meanwhile, said that more companies from Taiwan will locate in the Philippines, which he described as Taiwan’s “closest neighbor.”

“I assure you, the Taiwanese are willing to come to the Philippines to invest. And we have to find enough land for our locators especially in Subic Bay,” he added.

Yubantec, which is the latest addition to the Subic Gateway park locators, will engage in importing, designing, installing and after-sales services of air-conditioners, cold storage equipment and home appliances, as well as designing and sales of semi-conductors and electronic components.

SBMA Chairman and Administrator Wilma T. Eisma said the 61 Taiwanese firms in Subic now comprise the third biggest number of foreign investors here. Most are engaged in manufacturing and trading.

Taiwanese firms were among the pioneer investors in the Subic Bay Freeport Zone, she added, as the Subic Gateway Park, formerly known as the Subic Bay Industrial Park, was the first industrial park to be established in Subic.

Built in 1994, the Taiwanese-owned industrial park is now home to global names like computer giant Wistron Infocomm (Phils.) Corp., air-con specialist Johnson Controls-Hitachi, lock-maker Tong Lung (Phils.) Metal Industry, and footwear manufacturer Datian Subic Shoes, Inc.

Eisma said the entry of more Taiwanese companies helps Subic drive its momentum in investment and employment generation, pointing out that the SBMA approved 77 new projects in the first six months this year, compared to 45 in the first half of 2018.

The new investments, as well as the 21 expansion projects green-lighted in the first half, are projected to create more than 3,600 additional jobs in the Subic Bay Freeport.

Meanwhile, Senator Richard J. Gordon, who also graced the Yubantec opening, welcomed the entry of more Taiwanese investors here and pledged continued support to the SBMA.

Gordon said the government has a lot of infrastructure projects going on, as well as in the pipeline, for this area of Luzon which should also result in increased investments and business.

Gordon likewise called on the Subic business community to contribute in public discussion of issues that impact the Subic Bay Freeport and urged the Subic Bay Chamber of Commerce to drumbeat the advantages of the Subic Bay Freeport to investors abroad. (CAE/MPD-SBMA)

PHOTOS:

[1] SBDMC Chairman Chin Der Ou: “Improvement projects in Subic are good for investments”

[2] TECO Representative Michael Hsu: “More Taiwanese companies will come to the Philippines”

[3] Sen. Richard J. Gordon: “Drumbeat the advantages of Subic to investors abroad”

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Subic shoe factory to hire 1,500 more workers

Datian Subic Shoes, Inc., the manufacturer of popular shoe brands like Vans and Keds, has committed some USD6 million to expand its operations in this Freeport.

Subic Bay Metropolitan Authority (SBMA) chairman and administrator Wilma T. Eisma welcomed the development, noting that the company plans to hire an additional 1,500 employees.

“Although we have experienced a downturn in employment last year because of the layoffs at Hanjin shipyard, we believe that Subic can easily make a rebound because a lot of companies like Datian Subic have been expanding and hiring more skilled workers,” she said.

Eisma said that the company has leased a 29,400-square meter property to extend its existing 42,749-square meter facility at the Subic Bay Gateway Park (SBGP) Phase II.

“The company plans to use half of the USD6-milllion expansion investment to build another factory building in two years,” she said.

Datian Subic initially invested USD10 million in 2017 for its first manufacturing facility at the Gateway Park.

As of February, this year, the company already employs 3,698 workers.

Datian Subic Shoes, Inc. produces shoes under global brands like Keds, Converse, Sperry, and Vans for the American market, as well as Hugo Boss and Dr. Martens for the European market.

Its Subic factory integrates assembly lines for stitching, rubber compounding, outsoles molding, insoles and arches sponging, rubber gluing, as well as foxing operations.

Company officials said the existing factory produces an average of 350,000 pairs of shoes per month.

Eisma also said the SBMA expects more expansion projects among Subic business locators, following the current shift in production from China to other countries in Southeast Asia because of the ongoing trade war between China and the United States.

“The current tax incentives being offered by the SBMA to foreign manufacturing companies is another factor for this expansion surge,” she said.

Eisma pointed out that the expansion projects last year amounted to a whopping PHP25 billion in committed investments from existing business locators. (Malou Dungog, PNA)

PHOTO:

The manufacturing facility of Datian Subic Shoes, Inc., located at the Subic Gateway Park.

http://www.pna.gov.ph/articles/1065111

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Taiwanese computer giant to reopen Subic plant

Wistron Infocomm Corp., formerly one of the biggest export manufacturers in the Subic Bay Freeport Zone, will soon resume production operations here.

Subic Bay Metropolitan Authority (SBMA) chairman and administrator Wilma Eisma on Wednesday said the Taiwanese computer giant conducted recruitment activities here for two days last week to hire workers for some 2,500 positions at its Subic facility.

Wistron’s return to Subic came as a direct result of the emerging trade war between the super-economies of the United States and China, as well as of the threat by the Trump administration to withdraw from the North American Free Trade Agreement (NAFTA).

“You can say that this again validates the inherent strength of Subic as a strategic business location, because when other countries lose their initial advantages in terms of cheap labor or distribution cost, companies opt for Subic,” Eisma said.

She also said that the SBMA expects more global companies affected by the trade war to consider moving out to Subic or other economic zones in the country.

According to SBMA Labor Department manager Severo Pastor, Wistron processed more than 4,000 applications during the two-day schedule of exams and job interviews last week, with 900 workers passing the qualifiers on the first day alone.

“They wanted HOTS -- hired on the spot, so Taiwanese personnel from the company personally conducted the interviews. The SBMA labor personnel simply assisted on the second day to help process the growing number of applications,” he said.

Wistron Infocomm started out in Subic in 1995 as Acer Information Products (Philippines), Inc., a computer manufacturing outfit of Acer, Inc., Taiwan’s biggest computer firm.

It earned its current name in 2006 when Acer, Inc. spun off its Subic operations and infused fresh capitalization of USD36 million to include a Mobile Operations Unit (MSU).

In 2008, Wistron contributed more than a fourth of Subic’s USD977.84 export total with export production of USD274.88 million, leading the top 10 Subic exporters when Korean shipbuilder Hanjin, now the biggest exporter, was just a fledgling operation with USD61.74 million worth of exports.

In 2010, however, Wistron closed its hand-held device plant in Subic, shifting all of its production here to a facility in Zhongshan, China, but leaving its design automation center here.

The move displaced some 700 workers, at least 200 of whom, however, were reportedly sent off to a Wistron plant in the border-town facility of Juarez, Mexico.

In a clear reversal of fortune, Pastor said the newly-opened positions in Subic are the result of the company’s plan to relocate their operations to Mexico due to the threat by President Donald Trump to withdraw from NAFTA, which he has criticized for allowing Mexico to “steal” jobs from the United States and opening the border to cheap, tariff-free goods. (Malou Dungog, PNA)

http://www.pna.gov.ph/articles/1055921

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Toyota dealership breaks ground in Subic Bay

Toyota Subic Inc. (TSI) will start construction of its P150-million multi-level showroom and service center following the groundbreaking of its 10,000 square-meter facility in this premier freeport.

“If there is anything that we can help you even more, don’t hesitate. There are a lot of other business opportunities, and we hope to do more business with you.” Subic Bay Metropolitan Authority (SBMA) Administrator Wilma T. Eisma told TSI during the ceremony held Monday (Feb. 13) at the Subic Gateway District where the facility will soon rise.

For his part, TSI Chairman Dr. David Go said he is confident that with SBMA as partner, their new endeavor in Subic will be able to sail progressively against any tide.

“Opening a new facility is always paved with many difficulties. Nothing really is ever easy at the start, even with a product with key competitive advantages of quality, affordability, and worry free ownership,” Go said.

“It is still backed up with required huge capital funding, strategic location, state-of-the-art facilities, and exemplary employees,” he added.

TSI, a joint partnership between GT Capital Auto Dealership Holdings Inc. (GTCAD) and JBT Global Holdings Inc. together with its automotive subsidiary, Toyota Motor Philippines Corp, is expected to be fully operational on or before December of this year.

Jose B. Tan Jr., President of TSI said Toyota is the top selling brand for passenger and commercial vehicles in the country since 2002.

“Toyota holds 40% share of the Philippine market as of December 2016, with a unique and distinguished dealership personality that they enjoy exploring,” he said.

TSI is the seventh dealership facility with the ongoing construction of the sixth dealership facility in the City of Tuguegarao. (NBM/MPD-SBMA)

PHOTO:
SBMA Administrator Wilma T. Eisma (center) joins Toyota Motors executives (from left) Jose B. Tan, President, Toyota Subic, Inc.; Kei Mizugushi, Executive Vice-President, Toyota Motor Philippines, Marketing Division; Dr. David Go, Chairman. Toyota Subic, Inc. and Carmelo Maria Bautista, President GT Capital Holdings, Inc and Director of Toyota Subic, Inc, during the groundbreaking ceremony at the Subic Bay Gateway district in Subic Bay Freeport Zone. (AMD/NBM/MPD-SBMA)

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Shoe manufacturer now in Subic Bay Freeport Zone (updated)

Construction of a manufacturing facility that will produce branded shoes for export is now in progress in this freeport.

Datian Subic Shoes, Inc. will have its 42,800-square meter area shoe facility located at Phase II of the Subic Bay Gateway Park.

A statement from Datian Subic said the company was established in Taiwan in 1972 and in China in 1992 and is now expanding its scale of business to suffice the capacity of production and comply with international trends.

The statement said the company has chosen the Philippines "thru Subic Bay Freeport Zone, being a strategic location as it is near the (sea) port and airport."

"Its secured environment, accommodating, friendly and well-educated workforce are the key factors why Subic was the choice among the rest of location that was studied for," it added.

Datian Subic will produce branded vulcanized shoes for export and is expected to generate additional jobs for communities around the freeport zone.

Datian Subic President Vincent Chen said the company is looking forward for a strong and harmonious relationship with the Freeport and its community.

"The company’s philosophy is to meet customers need, seek excellent quality service and primary welfare to all employees," Chen said.

"This will be a good start for the year 2017 with the new Freeport Leaders and will be the year for Datian Subic Shoes full operation," Chen added.


PHOTO:

A construction worker pushes his wheelbarrow in front of the building that will house the assembly line for Datian Subic Shoes, Inc. (AMD/MPD-SBMA)

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Interflour bags P998M loan to fund flour mill in Subic

Singaporean-owned Mabuhay Interflour Mill, Inc. (MIMI) has entered into a P998-million, seven-year loan deal with BDO Unibank, Inc. to partly finance the construction of its flour mill within a 5.2-hectare property in Subic Bay Gateway Park Phase II.

MIMI is the Philippine subsidiary of Interflour Group Pte Ltd. of Singapore, one of the largest flour millers in Asia.

The project, which is expected to be completed early 2017, involves the milling of wheat into food flour for direct sale to consumers, distributors and retailers in the country, as well as for the export market. The flour mill has a capacity to produce 500 metric tons of flour per day, which may be doubled to 1,000 metric tons by 2019.

With an estimated 25,000 bakeshops operating in the country, Interflour considers the Philippines an important market in the region.

At present, Interflour is operating nine flour mills – eight in Southeast Asia and one in Turkey – and has a wheat milling capacity of 6,500 tons per day. In June 2014, itsigned a 50-year lease agreement with the Subic Bay Metropolitan Authority, establishing its entry in the Philippines.

“The investment of Interflour in the Philippines is a welcome development. BDO supports initiatives by conglomerates that generate employment opportunities in fast-growing business districts like Subic,” said Edward Wenceslao, BDO senior vice president and head of international desks.

“We welcome the support of BDO and thank them for the cooperation in working with us to develop local employment and more affordable flour for the Philippine community in general,” said Greg Harvey, Interflour chief executive. (Malaya Business Insight)

PHOTO:
SBMA Chairman Roberto V. Garcia (extreme right) and Greg Harvey (4th from right), Managing Director and Chief Executive of Interflour Group, with other officials during the ceremonial ground-breaking of Interflour’s milling facility project in the Subic Bay Freeport in November, 2015. (AMD,EVS/MPD-SBMA)

http://www.malaya.com.ph/business-news/business/interflour-bags-p998m-loan-fund-flour-mill-subic

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Taiwan firm fined P13M for environment damage (INQ Report)

SUBIC BAY FREEPORT— For inflicting “massive” damage to the environment on a lot it has been leasing inside the free port, a Taiwanese warehousing firm was ordered to pay a fine of P13 million, according to an official of the Subic Bay Metropolitan Authority (SBMA).

MSK Group Work Inc., which is engaged in building construction and civil engineering, was served a new notice of violation (NOV) with fines and penalties for its “unauthorized tree cutting, earth moving and land development activities,” said lawyer Ruel John Kabigting, acting head of the SBMA Ecology Center.

Photo shows Taiwanese firm MSK Group Work Inc. at the Subic Bay Gateway Park engaging in construction 
and civil engineering without the proper environmental clearances. (Allan Macatuno / Inquirer Central Luzon)

The company had failed to secure environmental clearances when it cut 60 large trees and about 7,000 smaller trees in a 1,200-square-meter leased area at the Subic Bay Gateway Park, Kabigting said.

MSK had been clearing the area to build a warehouse, but it had not obtained the necessary permits from the Department of Environment and Natural Resources (DENR), SBMA Chair Roberto Garcia said in an earlier interview.

Garcia said the development activities weakened a slope.

On March 11, Kabigting directed the company to stop its work following a hazard call inspection concerning its lot. He issued a cease-and-desist order (CDO) addressed to Kelly Uy, MSK general manager, which also required the firm to replace the fallen trees with 1,752 saplings worth P86,250. (Allan Macatuno, Inquirer Central Luzon)

http://newsinfo.inquirer.net/777265/taiwan-firm-fined-p13m-for-environment-damage

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LOOK: SBMA and Subic locators hold Fire Olympics 2016

Fire brigade teams from different companies at the Taiwanese-run Subic Bay Industrial Gateway Park participate in this year's Fire Olympics organized by the SBMA Fire Department and the Subic Bay Development and Management Corporation (SBDMC) Friday morning.

The fire olympics is an annual event held every March of each year in observance of Fire Prevention Month to promote safety awareness and preparedness among companies and their workers in Subic Bay Freeport.

SBMA Deputy Fire Chief Raul Zapanta said that companies join this annual activity “because it is not only fun to the participants, but also hones their skills in firefighting and enhances rapport among the designated fire marshals from different companies.”

“It helps the volunteers build teamwork and cooperation with other fire volunteers, and also provides and an opportunity to put their skills to test,” he added.

Photos by Jun Dumaguing/MPD-SBMA

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SBMA stops tree-cutting by Taiwan firm in free port (INQ report)

The Subic Bay Metropolitan Authority (SBMA) has stopped a Taiwanese company operating inside this free port from cutting trees for failing to secure an environmental clearance.

Warehousing firm MSK Group Work Inc. was issued a cease-and-desist order (CDO) by SBMA’s Ecology Center on March 11, following a hazard call inspection on a lot being leased by the company inside the Subic Bay Gateway Park.

Lawyer Ruel John Kabigting, Ecology Center officer in charge, has notified officials of the Taiwanese firm about its violations, which included cutting 50 trees and proceeding with construction without obtaining environmental permits.

Addressed to Kelly Uy, MSK general manager, the cease order also required the firm to replace the fallen trees with 1,752 saplings “due to the gravity of the violation.”

Kabigting has also called for a technical compliance conference to discuss the company’s violations.

“The [conference] will allow [MSK] to explain the circumstances of the violation and [to] present a proposal to remedy the deficiency and assure future compliance,” Kabigting told Uy in the letter.

Kabigting also warned the firm that SBMA would suspend or cancel the company’s permit to operate if it does not comply with conditions set by the agency.

SBMA Chair Roberto Garcia said MSK has been clearing its leased area to build a warehouse but has failed to obtain necessary permits from the Department of Environment and Natural Resources (DENR).

“The CDO will remain effective until the company complies with all the requirements set in the order and pays all penalties or fines associated with the violations,” Garcia said.

The replanting program, he said, is part of the sanctions that the DENR imposes on firms responsible for the illegal cutting of trees.

Garcia also said that MSK would be liable for possible landslides due to a weakened slope in the area that had been attributed to the firm’s construction work.

“The company should also have slope protection project in that area,” he said.

He said MSK officials have already apologized about the company’s violations.

“I’ve met with some of the company’s officials and they told me that they were sorry about what they did. But I told them that they should cease operation for now,” he said. (Allan Macatuno, Philippine Daily Inquirer)

PHOTO:
WAREHOUSING firm MSK Group Work Inc. has been issued a cease-and-desist order by the Ecology Center of the Subic Bay Metropolitan Authority (SBMA) on March 11, following a hazard call inspection of a lot being leased by the company inside the Subic Bay Gateway Park. (Allan Macatuno / Inquirer Central Luzon)

http://newsinfo.inquirer.net/774449/sbma-stops-tree-cutting-by-taiwan-firm-in-free-port

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Philippines' Subic seen as investment-worthy for Taiwan

Taiwanese businessmen are coming back to Subic Bay again after a previous investment craze in the 1990s, as the Philippines is once more being seen as an ideal springboard for tapping into the promising Southeast Asian market.

With lingering economic challenges in Europe and only moderate growth in the United States and Japan, developing Asian countries have become a major driving force for the global economy in recent years.

In particular, the Association of Southeast Asian Nations (ASEAN) economies seem to have brighter prospects because they are expected to transform into a single market and production base in the near future.

Jeff Lin (林繼武), president of Subic Bay Development Management Center Inc. (SBDMC), a joint venture between the local government authority and Taiwan's United Development Corp. (世華開發), told CNA that the ASEAN market looks promising in terms of its manufacturing sector and trade, thanks to the region's economic ties with China, Japan, South Korea, India, Australia and New Zealand.

Lin suggested that Taiwanese businessmen should take advantage of the Philippines as a springboard to the ASEAN market, which has a population of 640 million and a combined gross domestic product of US$2.4 trillion.

In the Subic Bay Special Economic Zone (SBSEZ), there are no taxes for investors except for a 5 percent tax on gross income, which can help save costs for investors, Lin said. If at least 40 percent of the investors' products are manufactured locally, their products will be duty-free when sold in the ASEAN market, he added.

Roberto Garcia, chairman of the Subic Bay Metropolitan Authority, said in a recent press conference that the Subic Bay Special Economic Zone is expanding its scale to neighboring areas because of an increasing number of investors who need more industrial land.

The first-phase complex of the Subic Bay Gateway Park, operated by SBDMC, has almost reached its full capacity with more than 170 companies currently operating there, of which roughly 30 percent are from Taiwan.

Taiwanese investment in Subic Bay is estimated at US$700 million. (CNA)

(By Emerson Lim and Jeffrey Wu)

PHOTO:
SBDMC headquarters at the Subic Gateway Park

http://focustaiwan.tw/news/aeco/201510040008.aspx

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'Fire Olympics' highlights Fire Prevention Month in Subic Freeport

Employees of 15 locator companies in this free port tried their hand in connecting fire hoses, climbing ladders, and directing high-pressure water to put out fire, as the Subic Bay Metropolitan Authority (SBMA) fired off the Subic Bay “Fire Olympics” last Friday to promote safety awareness and preparedness among companies and their workers in the Subic Bay Freeport.

The SBMA Fire Department, in cooperation with locators and investors, launched the Olympics at the Subic Bay Gateway Park here in line with the observance of Fire Prevention Month.

The 15 participating companies joined the “games” prepared by SBMA firefighters as training modules, each sending five-man teams and technical crews to tackle the various challenges.

SBMA Deputy Fire Chief Raul Zapanta said that companies join this annual activity “because it is not only fun to the participants, but also hones their skills in firefighting and enhances rapport among the designated fire marshals from different companies.”

“It helps the volunteers build teamwork and cooperation with other fire volunteers, and also provides and an opportunity to put their skills to test,” he added.

Zapanta and fellow deputy fire chief Gerard Johnson, along with 20 crew members from the SBMA Fire Department, coordinated the event that included lectures on safety in the work place.

The one-day activity closed with a simple program where winners in the “fire games” received certificates of recognition and tokens of merit.

Aside from the Fire Olympics, the SBMA Fire Department is also conducting lectures in communities adjacent to the Freeport, teaching residents how to prevent grass and forest fires, and what to do in case fires break out.

“While we want to keep our homes and companies safe against fire, here in Subic it is also our priority to prevent forest fires,” said Johnson, pointing out that the forests here are home to many animals and birds, and an important asset for the local tourism industry.

“This is why it’s really important to train workers and residents in fire safety, and the Fire Olympics is one effective way of doing it,” Johnson said. (RAV/MPD-SBMA)

PHOTOS:

[1] SBMA Fire Chief Norberto Lopez teaches two women workers how to attach fire hose couplings properly during a “Fire Olympics” held at the Subic Bay Gateway Park on Friday, March 13, to provide employees of business locators in the Subic Bay Freeport Zone with basic knowledge and skills on fire-fighting. (AMD/MPD-SBMA)

[2] WOMEN POWER: An all-women team competes in the “Fire Olympics” held at the Subic Bay Gateway Park on Friday, March 13, to provide employees of business locators in the Subic Bay Freeport Zone with basic knowledge and skills on fire-fighting. (AMD/MPD-SBMA)

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SBMA, Singapore’s Interflour Group close $30-M investment deal

Singapore-based Interflour Group Pte Ltd. (Interflour), one of the producers of the finest flour in the world, will be building its Philippine mill in Subic as part of its expansion program to meet flour demand in Southeast Asia.

This developed as Interflour Managing Director and Chief Executive Greg Harvey, Subic Bay Gateway Park President Jeff Lin, and Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia signed a 50-year lease contract paving the way for the construction of the flour mill facility.

The event was witnessed by SBMA COO Joven Reyes, SBMA Deputy Administrator Joy Alvarado and SBMA Investment Manager Ronnie Yambao. Representing Interflour were Group COO Jack Joseph Cwach, Group Marketing Director Angel Umali, Group CFO Ma. Cristina Piguing, Group General Counsel Mark Neo, Mabuhay Interflour Mill Inc. (MIMI) Board Members Jesus Alcordo and Edgardo Gallo, and MIMI General Manager Vicente Magbanua.

Registered under the business name Mabuhay Interflour Mill Inc, the new flour mill is part of the US$30-million committed project investment of Interflour in Subic.

Garcia said the new Subic entrant is proof that the Philippines is “in the screen” of foreign investors who are encouraged by the trust and confidence earned by President Aquino’s good governance program.

The new flour mill will be constructed in a 52,852-sq.m. lot inside the Subic Bay Gateway Park. It is expected to be completed in 24 months’ time.

The company will engage in milling of wheat into food flour for direct sale to consumers, distributors and retailers in the domestic and for-export markets.

Garcia added that the project would provide bakeshops and entrepreneurs in the country with the highest quality flour in competitive or much lower price, as the cost of hauling and transporting flour to parts of Central and Northern Luzon will be cut by as much as fifty percent.

This will also mean additional revenue for SBMA of about P5.5 million a year, for the use of ports by transport ships coming from wheat-growing countries like Australia, United States, Canada, as well as Europe and the Black Sea countries.

For Interflour, Harvey noted that Interflour Group is one of the biggest flour milling companies in the world with seven flour mills located in Vietnam, Indonesia, Malaysia and Turkey. The combined wheat milling capacity of these mills is nearly 6,000 tons per day, which is equivalent to almost 1.5 million tons of flour produced each year.

He added that Interflour holds international certifications for its world-class technology, including Good Manufacturing Practice (GMP), and a certification for producing Halal food products.

The proposed mill in Subic will be capable of producing 500 metric tons a day of flour. However, Interflour plans to expand its capacity with an additional 500 tons by 2019.

“The Philippines is an important market in Asia, with an estimated 25,000 bakeshops and with Gardenia as the largest. Interflour will be offering the finest flour for the local market, particularly in Central Luzon,” Harvey said. (RAV/MPD-SBMA)

PHOTO:
SBMA Chairman Roberto V. Garcia (center) signs a memorandum of agreement for the flour mill project with Interflour Group Managing Director and Chief Executive Greg Harvey (left) and SBDMC Inc. President Jeff Lin.

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Chinese firm pledges P9-billion investment at Subic Freeport

A Chinese steel manufacturer has pledged P9 billion for an export-oriented business project here in the Subic Bay Freeport.

The Panhua Group Co. Ltd. will engage in the pre-painting of steel coils and metal sheets for export and domestic trade and other allied industries.

Subic Bay Metropolitan Authority (SBMA) Chairman Roberto V. Garcia said the SBMA board of directors approved Panhua’s proposal on its 258th board meeting in February 2014.

The Chinese firm is also engaged in shipping, real estate, mining, steel manufacturing and logistics business in China.

Garcia said the entry of Panhua in Subic attests to the growing attractiveness of the country to foreign investments.

“The Philippines is currently enjoying a BBB rating from Standard and Poor’s, which means that the country has adequate capacity to meet financial commitments,” Garcia noted.

He added that more foreign direct investments (FDIs) are pouring into the Philippines because it has earned the trust of investors after it received investment upgrades from different rating firms.

The Panhua Group is a large-scale conglomerate, manufacturer, exporter, and wholesale supplier of cold-rolled steel coil, cold-rolled steel sheet, galvanized steel coil, galvanized steel sheet, pre-painted galvanized steel coil, and pre-painted galvanized steel coil sheet.

With an annual steel production capacity of 1.5 metric tons, Panhua Group Co. Ltd. is listed among the 500 top private enterprises in China.

The firm’s main manufacturing bases, which have a registered capital of $100 million, are located in Zhangjiagang City and Fuling District, as well as Chongqing City in mainland China.

Company officials said its proposed Subic Bay Freeport operations are expected to augment its production, as it has pegged its export target at 42,000 metric tons per month to begin in the first quarter of 2016.

Panhua’s newly-approved project in Subic will be located at Subic Bay Gateway Park Phase 2 and will initially be manned by 100 employees. (RFD/MPD-SBMA)

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More Subic Bay Investors Eyed

The Subic Bay Development Management Center (SBDMC) disclosed that if this premier Freeport could provide an increasing supply of reliable and cost-effective power, more investors are expected to establish their businesses here.

According to SBDMC President Jeff Lin, administrator of the Subic Bay Gateway Park (SBGP), power costs represent a huge chunk of the cost of conducting business here.

The Subic Bay Gateway Park is a world-class industrial park offering approximately 150 hectares of prime industrial land, and is host to about 80 direct locators, and 60 plus sub-lessees made up mostly of manufacturing and production firms.

“The Philippines currently has one of the highest power rates in the Asian region. Foreign or even local businessman looking at locating and investing here will see this as a disadvantage. We believe we have to try to remedy this somehow,” he said.

At the same time, the SBDMC reiterated its support for the Redondo Peninsula Energy (RP Energy), a fellow SBFZ investor and locator.

Lin also disclosed that the SBDMC and its locators support the power project of the RP Energy, being developed within the Freeport.

They have actually been counting on the power to be supplied by the 600-megawatt power project to the Luzon Grid to help address the need for additional reliable and competitively-priced power.

The Department of Energy’s Philippine Energy Plan states that some 11,000-megawatt in additional capacity is needed until 2030 for the Luzon grid alone.

This projection is based on a 4.8-percent annual growth in energy demand.

This means a new 600-megawatt power plant needs to be online every year, starting 2016 onwards.

During the past, a group of Subic locators already projected the need to increase power supply in the Luzon area to keep up with economic development and avoid a power situation as that in Mindanao.

The Subic Bay Freeport Chamber of Commerce (SBFCC) reminded local and national stakeholders to recognize the need to move forward with power investments in the Luzon grid.

According to the chamber, the government needs to fast-track the construction of base-load power plants to augment the capacity and provide cheaper power. (Jonas Reyes, Manila Bulletin)

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Korean ambassador, investors visit Subic to promote trade, tourism

A South Korean delegation visited this free port to help promote trade and boost tourism in the two Asian nations under the auspices of the ASEAN-Korea Centre.

Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia welcomed the Korean delegates headed by Ambassador Hae Moon Chung during a business-to-business networking last Friday at the Subic Gateway Park here.

The event provided a venue for business discussions between the Korean businessmen and investors located at the Subic Bay Freeport.

In a meeting with Garcia, Chung explained that the ASEAN-Korea Centre serves as the de facto chamber of commerce and tourism center for ASEAN-member countries in Seoul.

He said that the center is active in conducting business-to-business networking and investment seminars for ASEAN countries.

He then invited Garcia to visit the center in Korea in order to promote tourism and invite interested investors to Subic.

Chung also noted the well-maintained facilities and structures left by the US Navy at the former naval base here, saying it was like stepping into another page of history.

Meanwhile, Atty. Ruel John Kabigting, officer in charge of the SBMA Business and Investment Group, said that the Korean group’s visit will encourage and motivate the people from the SBMA to do their job better.

“This is indicative of (the Koreans’) continuing trust and commitment to the Philippines in exploring business possibilities for our mutual benefit,” Kabigting said.

He also noted that South Korea is a major trading parter of the Philippines and both governments have established bilateral agreements. South Korea also generated the highest number of tourist arrivals in the Philippines in recent years, with more than half a million visitors arriving in 2010.

According to Ronnie Yambao, SBMA manager for Manufacturing and Maritime Business Development, the business-to-business networking is a platform utilized by several investment promotion agencies to promote their respective investment promotion areas, and SBMA is highly supportive of this initiative.

Yambao also said that the SBMA continues to provide avenues and areas of cooperation between Korean investors and Subic business locators for them to explore business opportunities wherein they can be profitable and continue to forge different areas of cooperation.

The business-to-business networking was organized by the Philippine Trade and Investment Center and the ASEAN-Korea Centre. (FMD/MPD-SBMA)

PHOTO:
SBMA Chairman and Administrator Roberto V. Garcia meets with Korean Ambassador Hae Moon Chung during the latter’s visit to the Subic Bay Freeport last week. Chung, who is also Secretary-General of the ASEAN-Korea Center, urged the SBMA and Subic investors to visit Korea to promote local tourism and invite investors to locate in Subic.

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SBMA grants long-term lease to specialty school

The Subic Bay Metropolitan Authority (SBMA) recently signed an agreement with the Quiz Bee Early Learning Center, giving it bigger facilities to address the school’s rapid growth.

The Quiz Bee Early Learning Center is run by the Quiz Bee Foundation, which is the proponent of the annual National Quiz Bee, a prestigious scholastic competition participated in by some of the brightest students in the country.

The SBMA agreed to give long-term leasehold rights to Bldg. 1154, located on Palm Street at the Gateway Park here, to provide more room to accommodate 50 students.

SBMA Chairman Roberto V. Garcia and Gloria Palarca-Tayag, president of the Quiz Bee Foundation, signed the lease agreement.

The school previously occupied four rooms at Charlie Bldg. of the Subic International Hotel within the free port's central business district, but continuous growth in its enrolment necessitated a bigger venue, said Gloria Linda Tayag, the school directress.

Tayag said that they immediately grabbed at the opportunity to relocate when the SBMA offered them the building.

Tayag also said that the relocation would help the school attract more students, since it will be able to provide them with better learning environment.

She added that the Quiz Bee Early Learning Center will give residents in the Subic Bay area an alternative institution where their children can avail of quality education.

“Our school promotes academic excellence and values formation, and we are at par with existing schools in Manila in terms of quality, but not as expensive,” she noted.

The school was founded in 2010 with 15 students. It now offers pre-school courses up to Grade 3. (FMD/MPD-SBMA)

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