Gov’t expands Subic freeport area
The government has issued an executive order extending the Subic Bay Freeport zone by several hundred hectares to accomodate more foreign investors wanting to locate in the area, Trade Secretary Peter B. Favila said.
Favila said he personally followed up the approval of the executive order expanding Subic in order to accommodate more international businesses.
"There is already an executive order. I was the one who personally followed it up with the President," Favila told reporters.
Favila said there is not enough space in Subic anymore as existing locators continue to expand their operations.
The executive order extends the Freeport area beyond the mountains of Olongapo. "It is near Redondo," Favila said.
Businesses within the Freeport zone enjoy fiscal incentives including tax breaks.
With the expansion in place, Favila said what is needed now is enough funds to develop the area in order to attract more locators.
According to Favila, he has already directed Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza to use SBMA funds in order to bankroll the construction of infrastructure like roads and bridges.
Favila said SBMA should not wait for the foreigners to build the roads. He noted that because SBMA has enough money given its efficient operation, it should be able to take care of the developments.
"I was telling Armand (Arreza) to see how SBMA itself can take care of the development. It is very liquid so they can tap the fund to develop the roads and the terrain rather than wait for investors to do it for us," Favila said.
"SBMA should develop it because the foreign businessmen are saying they will only enter if there is infrastructure," he added.
Favila said Subic as well as Clark should start being competitive in order to get more foreign investors because countries like Vietnam and Indonesia are also targeting the same businesses.
To be competitive, Favila said the Philippines should improve its infrastructure.
Investments in Subic Bay Freeport Zone has breached the $1-billion mark as of the first nine months of the year as 123 new business locators entered the freeport.
With a full quarter to go, SBMA has already hit the $1.45- billion mark, which is almost a $30-million increase over last year’s total of $1.425 billion.
By MA. ELISA P. OSORIO - The Philippine StarFavila said he personally followed up the approval of the executive order expanding Subic in order to accommodate more international businesses.
"There is already an executive order. I was the one who personally followed it up with the President," Favila told reporters.
Favila said there is not enough space in Subic anymore as existing locators continue to expand their operations.
The executive order extends the Freeport area beyond the mountains of Olongapo. "It is near Redondo," Favila said.
Businesses within the Freeport zone enjoy fiscal incentives including tax breaks.
With the expansion in place, Favila said what is needed now is enough funds to develop the area in order to attract more locators.
According to Favila, he has already directed Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza to use SBMA funds in order to bankroll the construction of infrastructure like roads and bridges.
Favila said SBMA should not wait for the foreigners to build the roads. He noted that because SBMA has enough money given its efficient operation, it should be able to take care of the developments.
"I was telling Armand (Arreza) to see how SBMA itself can take care of the development. It is very liquid so they can tap the fund to develop the roads and the terrain rather than wait for investors to do it for us," Favila said.
"SBMA should develop it because the foreign businessmen are saying they will only enter if there is infrastructure," he added.
Favila said Subic as well as Clark should start being competitive in order to get more foreign investors because countries like Vietnam and Indonesia are also targeting the same businesses.
To be competitive, Favila said the Philippines should improve its infrastructure.
Investments in Subic Bay Freeport Zone has breached the $1-billion mark as of the first nine months of the year as 123 new business locators entered the freeport.
With a full quarter to go, SBMA has already hit the $1.45- billion mark, which is almost a $30-million increase over last year’s total of $1.425 billion.
Labels: agusuhin, expanded, subic bay freeport
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