Subic regains lost glory, thanks to Asian investors
(First of 2 parts)
SUBIC Bay Freeport—Once envisioned as the new Hong Kong, this former American naval base hosted the Asia-Pacific Economic Cooperation Leaders Summit in 1996, making it a banner year for the Freeport and the whole Philippines as well.
This free port, however, lost its luster in the next decade as the government restricted duty-free privileges and zero-tariff importation of vehicles. Then came the news in 2005 that American logistics firm FedEx, the largest foreign operator in the free port, would shift its Asian hub from Subic Bay to China.
This leaves electronics manufacturer Winstron Infocomm (formerly Acer) the largest investor in Subic. This single Taiwanese company accounts for more than half of the freeport’s total exports annually.
So when the new leaders of Subic Bay Metropolitan Authority took over in September 2005, with the sudden resignation of chairman Francisco Licuanan, the mood was not exactly upbeat.
Things would miraculously change though, thanks to the tide of giant East Asian investments. When SBMA celebrated its 14th anniversary on Nov. 24, SBMA chairman Feliciano Salonga called 2006 as the banner year for the free port, and for an excellent reason.
As of October 2006, SBMA attracted $1.6 billion in foreign direct investments, representing about 80 percent of total FDI commitments in the country this year. This was nearly 100 times more than the $16 million worth of FDIs committed to Subic in the whole of 2005.
SBMA administrator Armand Arreza said new investments include the $1-billion shipyard being built by Korean shipbuilder Hanjin Heavy Industries and Construction, the $312-million investment by Chinese glass manufacturer Hebei Xintai Jingniu, and the $300-million investment by Taiwan Cogeneration Corp., a subsidiary of Taiwan Power Corp.
By Roderick T. dela Cruz - Manila Standard Today
SUBIC Bay Freeport—Once envisioned as the new Hong Kong, this former American naval base hosted the Asia-Pacific Economic Cooperation Leaders Summit in 1996, making it a banner year for the Freeport and the whole Philippines as well.
This free port, however, lost its luster in the next decade as the government restricted duty-free privileges and zero-tariff importation of vehicles. Then came the news in 2005 that American logistics firm FedEx, the largest foreign operator in the free port, would shift its Asian hub from Subic Bay to China.
This leaves electronics manufacturer Winstron Infocomm (formerly Acer) the largest investor in Subic. This single Taiwanese company accounts for more than half of the freeport’s total exports annually.
So when the new leaders of Subic Bay Metropolitan Authority took over in September 2005, with the sudden resignation of chairman Francisco Licuanan, the mood was not exactly upbeat.
Things would miraculously change though, thanks to the tide of giant East Asian investments. When SBMA celebrated its 14th anniversary on Nov. 24, SBMA chairman Feliciano Salonga called 2006 as the banner year for the free port, and for an excellent reason.
As of October 2006, SBMA attracted $1.6 billion in foreign direct investments, representing about 80 percent of total FDI commitments in the country this year. This was nearly 100 times more than the $16 million worth of FDIs committed to Subic in the whole of 2005.
SBMA administrator Armand Arreza said new investments include the $1-billion shipyard being built by Korean shipbuilder Hanjin Heavy Industries and Construction, the $312-million investment by Chinese glass manufacturer Hebei Xintai Jingniu, and the $300-million investment by Taiwan Cogeneration Corp., a subsidiary of Taiwan Power Corp.
By Roderick T. dela Cruz - Manila Standard Today
posted by OlongapoCity Zambales at
6:09 AM
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