Subic Sees Entry of more Taiwanese Investors

Philippine Daily Inquirer
January 25, 2010

The Subic Bay Development and Management Co., developer and administrator of the 300-hectare Subic Bay Gateway Park, expects to host more Taiwanese firms this year, especially with the effectivity of the Asean-China Free Trade Agreement.

SBDMC president Jeff Lin said the FTA, which took effect on Jan. 1, paved the way for the export to China of more goods coming from less developed countries. These countries, on the other hand, could also purchase cheaper manufactured goods from China.

He said Subic presented a strategic location to companies wanting to put up manufacturing facilities that could be used in the conduct of trade with China.

Apart from the FTA, he said the China-US Anti-Dumping Law also presented an opportunity for Taiwanese firms to set up shop in Subic and produce goods that could be exported to the Mainland.

This was because the China-US Anti-Dumping Law made it difficult for Chinese firms to export directly to the United States, he explained.

Another one of Subic’s plus factors, he said, was the direct flight from Taipei to the neighboring Clark Special Economic Zone, via local airline Spirit of Manila.

According to data from the Manila Economic and Cultural Office, seven Taiwanese companies signed an industrial lease agreement with SBDMC in the last quarter of 2009 to locate within the free port.

SBDMC is a joint venture between the state-run Subic Bay Metropolitan Authority and Taiwanese developers China Development Corp. and Century Development Corp.

These seven Taiwanese firms’ total investment commitment amounted to almost $6 million of the $8.9-million total for the fourth quarter of last year.

The seven new Taiwanese locators are Subic 999 Trading Corp., Misung Subic Bay Inc., Biddeford Subic Inc., Subic Advance Screw Inc., Richway Plastics, Cano Subic Corp. and Tapu Corp.

Of the seven, Richway Plastics made the biggest investment commitment at more than $2.1 million.

The company will produce plastic bags for retail giant Walmart in the United States.

Industrial bolt, nut, and screw producer Subic Advance Screw Inc. committed the second biggest investment at $1.5 million, followed by medical equipment manufacturer Biddeford Subic with a commitment of $880,000.

“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,” Meco managing director and resident representative Antonio Basilio said in a statement issued Saturday.

“Taiwanese investor confidence has grown, given the positive experiences of Taiwanese companies successfully operating in the Philippines’ special export processing zones,” he added. – By Abigail L. Ho.