Dimmed somewhat by the ongoing controversy involving a private corporation and a government agency on the protracted development of a huge former base in Baguio City, this smudge in the otherwise sterling performance of the Bases Conversion Development Authority or BCDA has somehow acquitted itself well beyond expectation with the performance of the Clark Development Corp.
When the country was bogged down by an underperforming export sector which has suffered a slump for consecutive years, Clark Development Corp. or CDC accounted for 8.1 percent of the estimated total Philippine exports of $48.5 billion in 2011. Note that the top five exporting sectors for CDC during this calendar year were: Electronics, with total exports of $3,103,885,248, followed by tires with $298,059,468; garments with $226,884,390; Other manufacturing concerns accounting for $131,355,636; Aviation-Related with $13,246,818; and other sectors at no. 5 position with $139,335,000 bringing the total exports from CDC to $3,919,767,090, a historical high for this agency.
The biggest exporter is still Texas Instruments which accounted for $1.54 billion, while the ICT-BPO sector registered $124 million, still a substantial chunk of the country’s total service exports. This sector of Information Technology/Telecommunication, however, has not grown as rapidly as in previous years, affirming what the BPO umbrella organization has reported at the last quarter of 2011. With an employment growth rate of only four percent as compared to 2010 (I’m talking here only of its contribution to the CDC indicators), it suffers direly from comparison to the top employing sector which is industrial-electronics. With this one, employment grew by 15 percent, employing 13,864 people in the Clark Zone alone.
The most recent report of NEDA at the end of the fourth quarter of 2011 showed that employment generated for 2011 all over the country was 1.2 million. Actual employment for 2011 in the CDC stood at 64,055 personnel, up by six percent from 2010. Note that this figure represents the highest level yet of employment generation at the Clark Development Zone since it started operation.
Garments which include sewing, on the other hand, employed 9,346 (a mere three-percent growth in employment as compared to 2010) at the zone. This is still a slow-moving sector though any positive growth is still a welcome development for this sector which has yet to see the revival of the glory days of garments manufacturing and export.
They have pinned their hopes on the Save Act which has remained pending in the US Senate for years despite serious lobbying efforts of the Philippine community there and have conceded to several revisions in the bill, leaving us with a little more than a pittance to gain. Hopes are high but we still do not see much light at the end of the tunnel. Well, the US itself has problems with its textile and garment industry and their protectionist stand is deemed necessary by many of their legislators. It’s still a wait and see for this one.
Back to CDC, they had 207 projects signed in 2011, with investment commitments of P22,974,896,271. Among the major investment projects signed were with the SPT (Phil) Clark Corporation, a manufacturing, assembly and testing concern for semiconductor precision tools which has committed investment of P285,000,000. I am surprised though that this big concern employs only a total of 138. Bonsure Everrich International which deals with specialized food procession has investment commitments of P192,696,000.00. Again this company employs only 39 (!), and Jamco Philippines which manufactures parts and equipment for aircrafts with P172,000,000.00 in investment commitments and employing 68 people. We saved the best for last: Yokohama Tires which manufactures and exports tires all over the globe has investment commitments of P14,620,000,000, with employment generation of 3,000!
The year 2012 and beyond looks bright for the Freeport Zone as United Asia Automotive Group Inc. is seen to invest on a $35 million assembly for Foton Vehicles of China. This will be for the production of Foton ambulances, pickups, vans and trucks which will be exported to Southeast Asian countries. The manufacturing plant will be constructed on a 50,000 square meter area, so this will be a huge facility. Then there is the state-of-the-art training center for airlines that will soon rise in the freeport zone. This joint project of Cebu Pacific Air and the CAE, a Canadian aviation training firm will cost between $40-$50 million. Two Airbus A320 with capability to expand with two additional simulators will be provided in this training facility.
It does look like the Clark Freeport Zone is enjoying a heyday, but the one sour note in its sterling performance record is in its tourism efforts. Tours, Events and hotel occupancy have remained dull and have even slackened to a negative growth of 8.5 percent. The figure for 2010 was at 730,768 and this went down to 668,785 in 2011. This is one area that needs looking into. Clearly, this destination needs more exciting events and places that will make it a destination for holiday-seeking Filipinos.
Total number of tourists/visitors is up by 3.7 percent to 1,435,894 in 2011, probably because of the good road system in place now. Clark Freeport Zone is allotting a budget of more than P3 billion for key infrastructure improvements inside the zone. This includes the Clark-Mexico Transmission Line Project, the security gates improvement for the main gate entry control facility and initial drainage improvement.
The number of domestic and international passengers who used the Clark International Airport last year also increased by 17.2 percent, with the latest figures showing 767,109 passengers who went through this airport. I myself went through this airport late last year from Singapore. Though service was fast and efficient, I hope investors can be enticed to upgrade this airport which offers another viable alternative to the congested NAIA to a truly international level.
Kudos to the Clark Development Corporation for a good 2011 performance and to its president and chief executive officer Atty. Felipe Antonio B. Remollo. The private sector’s loss of an excellent corporate and litigation lawyer is the government’s gain, and Silliman University’s and Ateneo de Manila’s pride (a law scholar!). He served as mayor of Dumaguete City and won the 1999 Galing Pook Outstanding Environmental Project and was two-time Outstanding City Mayor of the Philippines awardee.
Mabuhay!!! Be proud to be a Filipino.
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