Subic FDI down 67% in January-November

MANILA, Philippines – Foreign direct investments (FDI) in the Subic Bay Freeport Zone dropped by more than 67 percent for the first 11 months of the year to $73.82 million, the Subic Bay Metropolitan Authority (SBMA) reported.

A total of $23.1 million were committed by 12 investor-companies in October, while 22 firms pledged a total of $21.32 million in November for their projects.

FDIs recorded in the Subic Bay Freeport actually fell by more than 67 percent in January-November this year compared to the total in the same period last year. The 2008 figure for the first 11 months was $224.82 million, while the 2009 tally was only $73.82 million.

On the other hand, 139 investment projects put up by Filipino companies contributed a total of $96.22 million in investment pledges, or 57.74 percent.

Among the top investors in the two-month period is real estate developer Ayala Land, Inc., which pledged $21.4 million for the construction, development and operation of a retail and commercial center.

Other investors with substantial project commitments included Aeroframe Composites Inc., which pledged $465,000 for the processing of composite parts and materials; Hamomo Corp., with $385,274 for the operation of a real estate business; and Honey & Money Subic Corp., with $321,062 for the development, management, and operations of a condominium, hotel and commercial complex.

After the Filipino investment commitments, the next biggest pledges were put up by 26 Korean firms with a total of $55.86 million, or 33.52 percent; a Swiss project worth $7 million, or 4.2 percent; six Taiwanese projects totaling $2.86 million; and four Japanese projects with a total of $1.27 million.

The 10 biggest investments in the 11-month period were committed by Ocean Nine Philkor Inc., a Korean company that pledged $52.38 million; Filipino developer Ayala Land, Inc., with $21.4 million; Tountzis Shipping Inc. (Filipino), with $20.23 million; Jadelink Subic Inc. (Filipino), $16.85 million; Philip Morris Philippines Manufacturing, Inc. (Swiss), $7 million; Pure Petroleum Corp. (Filipino), $6.22 million; Subic Business and Technology College (Filipino), $4.29 million; Bonsure Evergreen International Corp. (Filipino), $2.21 million; Chifil International Import-Export Manufacturing Co., Inc. (Filipino), $1.41 million; and Eastern Subic Fuel Depot Corp. (Filipino), with $1.05 million.

SBMA Administrator Armand Arreza, who noted the resurgence of investments following a slowdown late last year until early this year due to the global economic crisis, said this is “an encouraging sign.” –Ma. Elisa P. Osorio (The Philippine Star)