Boasting of the country’s ease of doing business with significant tax incentives included, President Ferdinand R. Marcos Jr., has successfully encouraged foreign entrepreneurs to invest and experience for themselves how the Philippines is now fast becoming the investment capital of the South East Asian region.
Subic Freeport is bound to be busier every year as the Marcos administration attracts more foreign investments to make it a big draw in the Southeast Asian Region.
This dovetails with Pres. Marcos’s vision under the Philippine Development Plan 2023-2028 that renewed focus will be given to the survival, growth, and expansion of local firms in the export and domestic markets to drive productive employment, and increase incomes. Foreign Direct Investments will be harnessed as drivers of export growth, sources of vital technology, and critical enablers of the country’s long-term climate action.
In a roundtable meeting with Japanese investors in 2023, NIDEC-SHIMPO, Japan’s leading electronics industry, headed by President Takeshi Yamamoto, forged a P4.2 billion expansion project in the Subic Bay Freeport Zone.
This shipyard will soon be expanded after President Ferdinand Marcos, Jr. secured over P 4 billion of foreign direct investment from Japanese investors.
Yamamoto noted the fact that Subic Bay is beneficial to their plan to market to the European Union, the United States, Brazil, South Korea, and China.
“We consider your operations significant. You are a prime generator of jobs. You provide support for sectors critical to industrial development, and you carry with you the promise to create value through innovation in global manufacturing around the world,” President Marcos said.
The NIDEC project is likely to be completed this year and stands to provide over 5,000 local employment opportunities that would not only benefit the SBMA, but also workers from Subic’s neighboring localities in Bataan, Zambales, Pampanga, and Tarlac, as well as those from as far as Manila, Cavite, and Laguna.
Construction of expansion facilities is in its final stage and is expected to be completed very soon. With its current 622 employees, and 5,000 job opportunities in the offing, the implementation of the expansion dubbed “Project Kinematix” will initially employ 1,074 workers.
These additional workers will be tasked to manufacture and assemble medium- to large-size gearboxes for industrial robotic gears. The new products will be exclusively crafted by Nidec Subic to be called “Gawang Pinoy.”
Valued at over P5 billion, Nidec Subic will directly export 100 percent of its annual production of 288,000 gearboxes.
NIDEC-SHIMPO, Japan’s leading electronics industry, will pour new investments into Subic, which will create over 5,000 new jobs for workers from Bataan, Zambales, Pampanga, Tarlac.
Ramil San Vicente had a pending application in Taiwan as a factory worker, but he shifted gears and applied instead at Nidec Subic for its expansion program. “If I can work here, why do I need to work abroad? My friend is working in Nidec Subic and he is doing good,” he said in Tagalog.
Ramil has long been dreaming of better opportunities and a brighter future for his family, especially his four children, who have been living within limited resources.
Sonia, one of the 622 employees of Nidec Subic expressed optimism that the expansion project would boost the morale of the workforce further, which would later translate into more benefits. “Expansion is a clear sign that the company is improving and doing great. We’ll soon see how this program helps its current employees. Anyway, the expansion is not only good for us but to the national economy as well,” she noted.
PBBM’s New Era of Investments
President Ferdinand R. Marcos Jr. encouraged foreign investors to establish or expand their businesses in the country, promising that the economic growth and improved ease of doing business are his administration’s top priorities.
President Marcos has tasked SBMA to make Subic Bay Freeport the country’s leader in green tourism destinations by 2030. Subic has become an attractive stop for international cruise lines.
“On the ease of doing business, we have changed many of the rules, we have changed many of the systems. And underlying all of that is the digital transformation of the bureaucracy so that the ease of doing business is again an advantage once we get it done thoroughly through the entire bureaucratic system,” the Chief Executive said.
He added that Philippine laws have been amended to change the tax incentives, tax holidays, tariffs and tariff structures to attract more foreign investors, the latest of which is the newly signed CREATE MORE (Maximize Opportunities for Reinvigorating the Economy) Act.
“In 2023, the Philippines capped the year off with the highest GDP (gross domestic product) growth in all of ASEAN, including China—meeting or even exceeding the expectations of major multilateral organizations such as the IMF, ASEAN+3 Macroeconomic Research Office, and the World Bank. It comes as no surprise that investments, particularly in durable equipment and public construction emerged as a key driver of our full-year growth,” the Chief Executive emphasized to convince more foreign investors.
President Marcos’ vision under the Philippine Development Plan 2023-2028 hopes to attract more new foreign investors, with his government vowing to prioritize economic growth and improved ease of doing business.
The Subic Bay story
Subic Bay’s transformation from a deserted military base into a bustling economic powerhouse is a story of unwavering hope, grit, and vision. Today, it is home to numerous local and foreign investors, but its journey is far from easy or mundane. Behind the gleaming buildings and thriving businesses lies a history defined by resilience and an unrelenting faith in a better future.
When the U.S. Navy vacated Subic Bay in November 1992, the community was left in shambles.
Thousands of jobs disappeared overnight, leaving families uncertain of their future. The once- thriving naval base, a symbol of security and progress, almost became a ghost town.
But amidst the struggles, a glimmer of hope emerged. The then mayor Richard Gordon rallied 8,000 volunteers—ordinary citizens who refused to allow their beloved Subic Bay become a wasteland.
They guarded the abandoned base, cleaned its streets, and repaired its facilities, showing the world what unity and determination could achieve.
This extraordinary act of Bayanihan—of a community coming together—laid the foundation for the Subic Bay Metropolitan Authority (SBMA), a vision to transform the former military base into a world-class freeport.
However, attracting investors to come to Subic after a massive volcanic eruption and the resulting lahar flow required more than hope—it required innovation, strategy, and faith.
On November 24, 1996, Subic Bay marked its fourth anniversary by stepping into the world stage. It hosted the Fourth Asia-Pacific Economic Cooperation (APEC) Leaders’ Summit, with leaders from 18 economies in attendance. By then, the freeport had already established itself as an investment hub, attracting major companies such as Federal Express, Enron, and Coastal Petroleum (now El Paso Corporation), Taiwan’s tech giant Acer, and French telecoms firm Thomson SA.
SBMA Today and Beyond
“Right now we have a total of 1,900 foreign and local investors already with a cumulative investment of US$ 11.55 billion,” said Karen Magno, SBMA’s Manufacturing and Maritime Business Department Manager. She says this proves the success of the Freeport Zone through the years.
Magno says the workforce in Subic Freeport stands at more than 162 thousand, almost five times greater than the employment number in 1992.
That Subic Freeport has become a desirable commercial location for local and foreign businesses was not borne out of luck. The people of the SBMA rebuilt the lahar-stricken area brick by brick, with government, business leaders, and workers moving as one to realize the potential of the freeport.
SBMA Chairman and Administrator Eduardo Jose Aliño said that the agency plans to become the first Philippine port equipped with shore power connections for ships. “By 2028, we hope to complete the project and deploy the shore power facility that looks to reduce the air pollution from ships by 95%. The project cost is around P250 million,” Aliño said.
The Shore Power Connection for Carbon Neutral Ports project will start construction at the New Container Terminal in 2025 for Phase 1, and at the Naval Supply Depot (NSD) and Ship Repair Facility (SRF) from 2026-2027 for Phase 2.
“To ensure that the growth in cargo will not lead to road congestion, we are now in the process of constructing a state-of-the-art truck holding area in our Tipo area. The project will include automated gates, optical plate scanners, and amenities for truck drivers and clients. The project will cost around P100 million and will be completed by 2028,” Aliño said.
SBMA’S LEGACY
What truly sets the Subic Bay apart, however, is the spirit of its people who first came together as a community after the Pinatubo eruption and the departure of the Americans. The breakthrough came when foreign giants like FedEx and Hanjin decided to invest. Their trust in Subic Freeport sent the message to the world that Subic was open for business. Local entrepreneurs followed suit, setting up shops, factories, restaurants, and tourism ventures that turned the freeport into a vibrant hub of economic activity.
SBMA leaders also work to entice local and foreign investors to set up shop in Subic Freeport. They travel across the globe, pitching Subic Bay’s business advantages as a freeport zone—a deep harbor with prime logistics, tax incentives, and a skilled workforce. (Radyo Pilipinas)
