Dear mindful readers,
Most of you know Subic Bay simply as a tourism destination where you can swim with the dolphins, watch a sea otter show, feed milk to baby tigers, or shop to your heart’s delight at the duty-free shop.
If you’re a keen observer, you’ll also find industrial facilities such as huge factories, warehouses, and service establishments that cater to different sectors of the economy.
So, for the succeeding articles, I will share stories about Subic Bay, a unique and magical place where industry and innovation are a way of life.
Boasting the country’s ease of doing business with significant tax incentives, President Ferdinand Marcos Jr. has successfully encouraged foreign entrepreneurs to invest and experience for themselves how the Philippines is now fast becoming the investment capital of the Southeast Asian region.
In 2023, in a roundtable meeting with Japanese investors, NIDEC-SHIMPO, Japan’s leading electronics industry, headed by President Takeshi Yamamoto, forged a P4.2 billion expansion project in the Subic Bay Freeport Zone.
Yamamoto noted the fact that Subic Bay is beneficial to their plan to market to the European Union, the United States, Brazil, Korea and China.
“We consider your operations significant. You are a prime generator of jobs. You provide support for sectors critical to industrial development, and you carry with you the promise to create value through innovation in global manufacturing worldwide,” President Marcos said.
The NIDEC project is likely to be completed this year and stands to provide over 5,000 local employment opportunities. These would benefit not only the SBMA but also workers from Subic’s neighboring localities in Bataan, Zambales, Pampanga, and Tarlac, as well as those from as far as Manila, Cavite, and Laguna.
Construction of expansion facilities is in its final stage and is expected to be completed very soon. With its current 622 employees and 5,000 job opportunities in the offing, implementing the “Project Kinex” expansion would initially employ 1,074 workers.
These additional workers will manufacture and assemble medium—to large-size gearboxes for industrial robotic gears. Nidec Subic will exclusively craft the new products, which will be called “Gawang Pinoy.”
Valued at over P5 billion, Nidec Subic will directly export 100 percent of its annual production of 288,000 gearboxes.
Ramil San Vicente had a pending application to work as a factory worker in Taiwan, but he shifted gears and applied instead at Nidec Subic for its expansion program. “If I can work here, why do I need to work abroad? My friend is working in Nidec Subic and doing well,” he said in Tagalog. Ramil has long dreamed of better opportunities and a brighter future for his family, especially his four children, who live with limited resources.
Sonia, one of the 622 employees of Nidec Subic, expressed optimism that the expansion project would further boost the workforce’s morale, which would later translate into more benefits. “Expansion is a clear sign that the company is improving and doing great. We’ll soon see how this program helps its current employees. Anyway, the expansion is good for us and the national economy as well,” she noted.
PBBM’s New Era of Investments
President Ferdinand R. Marcos Jr. encouraged foreign investors to establish or expand their businesses there, promising economic growth and improved ease of doing business, which were his administration’s top priorities.
“On the ease of doing business, we have changed many of the rules and many of the systems. And underlying all of that is the digital transformation of the bureaucracy so that the ease of doing business is again an advantage once we get it done thoroughly through the entire
bureaucratic system,” the chief executive said. He added that Philippine laws have been amended to change the tax incentives, tax holidays, tariffs, and tariff structures to attract more foreign investors. The latest is the signed CREATE MORE (Maximize Opportunities for Reinvigorating the Economy) Act.
“In 2023, the Philippines capped the year off with the highest GDP (gross domestic product) growth in all of ASEAN, including China—meeting or even exceeding the expectations of major multilateral organizations such as the IMF, ASEAN+3 Macroeconomic Research Office, and the
World Bank. It is no surprise that investments, particularly in durable equipment and public construction, have emerged as key drivers of our full-year growth,” the chief executive emphasized to convince more foreign investors.
The Subic Bay story
Subic Bay’s transformation from a deserted military base into a bustling economic powerhouse is a story of unwavering hope, grit, and vision. Today, it is home to numerous local and foreign investors, but its journey is far from easy or mundane. Behind the gleaming buildings and thriving businesses lies a history defined by resilience and an unrelenting faith for a better
future.
The community was left in shambles when the U.S. Navy vacated Subic Bay in November 1992. Thousands of jobs disappeared overnight, leaving families uncertain of their future. The once-thriving naval base, a symbol of security and progress, almost became a ghost town. But amidst the struggles, a glimmer of hope emerged. Then-Mayor Richard Gordon rallied 8,000 volunteers—ordinary citizens who refused to allow their beloved Subic Bay to become a wasteland.
They guarded the abandoned base, cleaned its streets, and repaired its facilities, showing the world what unity and determination could achieve. This extraordinary act of Bayanihan—a community coming together—laid the foundation for the Subic Bay Metropolitan Authority (SBMA), a vision to transform the former military base into a world-class freeport.
However, attracting investors to Subic after a massive volcanic eruption and the resulting lahar flow required more than hope—it required innovation, strategy, and faith.
On November 24, 1996, Subic Bay marked its fourth anniversary by stepping onto the world stage. It hosted the Fourth Asia-Pacific Economic Cooperation (APEC) Leaders’ Summit, with leaders from 18 economies in attendance. By then, the freeport had already established itself as an investment hub, attracting major companies such as Federal Express, Enron, Coastal Petroleum (now El Paso Corporation), Taiwan’s tech giant Acer, and French telecoms firm Thomson SA.
SBMA Today and Beyond
“Right now we have a total of 1,900 foreign and local investors already with a cumulative investment of US$ 11.55 billion,” said Karen Magno, SBMA’s Manufacturing and Maritime
Business Department Manager. She says this proves the success of the Freeport Zone through the years. Magno says the workforce in Subic Freeport stands at more than 162 thousand, almost five times greater than the employment number in 1992.
That Subic Freeport has become a desirable commercial location for local and foreign businesses was not borne out of luck. The people of the SBMA rebuilt the lahar-stricken area brick by brick, with government, business leaders, and workers moving to realize the potential of the freeport.
The SBMA LEGACY
What truly sets Subic Bay apart, however, is the spirit of its people, who first came together as a community after the Pinatubo eruption and the departure of the Americans. The breakthrough came when foreign giants like FedEx and Hanjin decided to invest. Their trust in Subic Freeport sent the message to the world that Subic was open for business. Local entrepreneurs followed suit, setting up shops, factories, restaurants, and tourism ventures that turned the freeport into a vibrant hub of economic activity.
SBMA leaders also tirelessly work to entice local and foreign investors to set up shop in Subic Freeport, traveling across the globe, pitching Subic Bay’s business advantages as a freeport zone—a deep harbor with prime logistics, tax incentives, and a highly skilled workforce.
Love and light,
Iamempress22
