WHEN the Congress drafted a legislative bill that would effectively allow government takeover of US military installations in the Philippines, the idea was merely to make use of the vast area covering the American bases in anticipation of its decommissioning in 1992.
The enactment of Republic Act 7227, otherwise referred to as the Bases Conversion and Development Act, effectively created the Bases Development Conversion Authority (BCDA) which oversees the radical transformation of what used to be an exclusive enclave into special economic zones.
The same law created the Subic Bay Metropolitan Authority (SBMA) with clear mandates — to develop the facility aimed at generating tax while extending duty-free privileges and incentives to business locators inside the country’s first freeport.
RADICAL TRANSFORMATION
Thirty-two years later, the 670-square kilometer former US naval facility in Zambales became a prototype of a bustling economy embarking on promoting a balanced development.
Referred to as Subic Bay Freeport Zone (SBFZ), the old military facility is now a self-sustaining tourism, industrial, commercial, financial, and investment center generating revenue for the government while providing jobs to 164,400 local folks with no less than the Subic Bay Metropolitan Authority (SBMA) as the driving force.
More than government revenues, the SBMA fostered a working relationship with a little less than 2,000 business locators inside the Subic Bay Freeport Zone with tax perks, incentives and duty-free privileges.
Under the general business and investments are 372 business locators, 336 companies under the logistics cluster, 924 investors promoting leisure, 126 covering manufacturing and maritime, and 98 into information and communications technology…
MULTI-FACET INDUSTRIES
A web-based list posted on mysubicbay.com.ph portal hinted at 1,856 investments (referred to by the SBMA as business locators) inside the SBFZ.
Investors at the Subic Bay are divided into five clusters — General Business and Investment; Logistics; Leisure; Manufacturing and Maritime, and Information and Communications Technology.
Under the general business and investments are 372 business locators, 336 companies under the logistics cluster, 924 investors promoting leisure, 126 covering manufacturing and maritime, and 98 into information and communications technology.
In a news article published by the Manila Times, SBMA chairman and administrator Eduardo Jose Aliño boasted of the SBFZ’s contribution to the government’s employment program even as he claimed that the freeport zone has steadily provided jobs for no less than 164,000 Filipinos.
GROWING WORKFORCE
Aliño also took note of a growing demand for Filipino workers as manifested in the annual increase in workforce — from 156,811 in 2023 to 164,000 the following year.
The biggest chunk of “new recruits” has been recorded under the manufacturing cluster in view of the expansion of 110 companies which now employ 27,484 workers. The figure is roughly 20 percent higher than 21,433 employees in 2023.
The SBMA chief attributed the employment opportunities inside the SBFZ to “President Ferdinand Marcos Jr.’s aggressive efforts to bring more foreign companies to invest in the country since it has been his administration’s thrust to create more jobs for Filipinos through foreign direct investments.”
SUBIC BAY BACKBONE
Employment opportunities inside the SBFZ is not limited to Zambales local folks. Taking cue from the figures coming from the SBMA, the workforce behind the freeport-based companies come from Olongapo City, Bataan, Zambales, Pampanga, Tarlac and as far as Metro Manila.
Interestingly, the Subic’s services sector has the biggest number of workers with 116,776 employees employed by 4,014 companies in 2024. It recorded an increase of 1,134 workers from 2024’s 116,776 employees, compared to 115,642 recorded in the previous year.
The maritime sector— shipbuilding and marine-related services— has 153 companies employing 6,187 employees; 5,512 male workers and 675 female workers.
The number of employees in the construction sector reached 13,953 and employed by 320 companies.
SUBIC AS NEW HOME
In May last year, the SBMA signed an agreement with the Department of Human Settlements and Urban Development (DHSUD) for the possibility of developing a housing project for Subic Bay freeport workers.
Under the agreement, the project would be a mixture of residential and commercial purposes under the Pambansang Pabahay para sa Pilipino (4PH) program with no less than the backbone behind the freeport zone as beneficiaries.
To start with, the SBMA will take care of preparing the technical, financial and documentary requirements, permits, and licenses required in the project’s implementation.
DHSUD for its part committed to assist the SBMA in complying with the documents and coordination with Pag-IBIG Fund to facilitate housing loan take-out and to pay the corresponding interest subsidy for the project.
SUBIC LIKE NO OTHER
Separately, Deputy Administrator Ronnie Yambao hinted at SBMA’s capacity and operational efficiency to keep up with growing demand for multi-modal logistics in the Asian region, for which he believed would translate to more employment opportunities.
Yambao emphasized three important pillars in enhancing Subic Bay Freeport’s capacity and operational efficiency: automation, investment in infrastructure and equipment acquisition, and expansion.
“Subic Bay Freeport is the only Freeport in the Philippines that has a complete logistics infrastructure in one location that is managed by the SBMA. It has an airport, and a seaport with a modern container terminal, and piers that can accommodate different types of cargo, to be connected to the Luzon Economic Corridor by a railway in the near future,” Yambao said.
