14 firms to invest $8.9 million in Subic

MANILA, Philippines - Fourteen new locators including seven Taiwanese companies, will invest a total of $8.9 million at the Subic Bay Freeport Zone.

The firms have signed an industrial lease agreement with the Subic Bay Development and Management Co. (SBDMC). The new Subic locators are involved in various business activities such as manufacturing, trading and warehousing and transshipment.

Manila Economic and Cultural Office MECO managing director Antonio I. Basilio said this development shows the unwavering Taiwanese investor confidence in the Philippines as a prime investment site despite stiff competition offered by other Asian countries for Taiwanese producers seeking cheaper land and labor costs.

 “With our vigorous marketing strategies and series of investment missions, we expect to attract more Taiwanese investors to locate in our export processing zones like Subic and Clark. Taiwanese investor confidence has grown, given the positive experiences of Taiwanese companies successfully operating in the Philippines ‘ special export processing zones,” Basilio said.

Meanwhile, the head of SBDMC predicted more business for locators in the Philippines with the start this year of China’s free trade pact with ASEAN. 

Jeff Lin, president of SBDMC, said Subic should become more attractive to Taiwanese investors because of the positive effects on the Philippines of the China-ASEAN free trade agreement whose implementation started at the beginning of the year. 

 SBDMC is the developer and administrator of the 300-hectare Subic Bay Gateway Park (SBGP) located in the Subic Bay Freeport Zone, where internationally renowned companies such as Wistron Infocom, Hitachi, Tonglung, Sanyo Denki and Taian Electric, have been successfully operating since Subic began operations. 

“Less-developed countries can export their goods to China, and they can also buy cheaper manufactured products from China. So people from both ASEAN and China can have more choices and better prices on products,” said Lin.

Secondly, Lin cited that the China–US anti-dumping law makes it harder for Chinese companies to export directly to the US, and therefore companies in Taiwan will now be encouraged to set up their manufacturing operation in Subic and then export their products to the US.

Another advantage of Subic is the direct flight from Taipei to Clark, according to Lin. He said Spirit of Manila, a Filipino-owned airline company, has already launched its maiden flight to Taipei last Jan. 1 and will operate a regular flight twice a week. 

The seven new Taiwanese locators are Subic 999 Trading Corp., Misung Subic Bay Inc., Bidderford Subic Inc., Subic Advance Screw Inc., Richway Plastics, Cano Subic Corp. and Tapu Corporation whose combined investment total $5.966 $5.966 million.

Richway Plastics, a Taiwanese-American company which will supply shopping mall plastic bags to Wallmart USA, is investing $2.146 million while Subic Advance Screw Inc. which manufactures industrial bolts, nuts and screws is investing $1.5 million.

Biddeford Subic Inc., which is engaged in the manufacturing, processing, trading, importing and exporting of thermometer, digital blood pressure monitor, asthma screen monitor, diagnostic equipment, medical equipment and microcomputer related equipment, is investing $880,000.