Subic downplays risks from China-Taiwan pact

SUBIC BAY FREEPORT ZONE — Subic Bay Gateway Park, home to Taiwanese export companies in this freeport, does not risk losing these locators after China and Taiwan sign their Economic Cooperation Framework Agreement (ECFA) this June. Subic Bay Development and Management Co. (SBDMC) Senior Manager Roland Addun said in an interview at the weekend that SBDMC, the developer and administrator of the 300-hectare industrial park, had even signed new contracts with seven Taiwanese companies with total investments worth $5.97 million and another deal for a $5-million expansion by an existing Taiwanese locator. In a Cabinet meeting last week, the National Economic and Development Authority said the China-Taiwan pact might lure 135 Taiwanese export companies in Philippine economic zones and freeports to relocate to China and for tens of thousands of overseas Filipino workers now in Taiwan to lose their jobs to Chinese from the mainland. In a separate statement, SBDMC President Jeff Lin said stronger US anti-dumping measures would make it more difficult for Chinese firms to export directly to the US, hence, a disincentive for Taiwanese exporters now operating in the Philippines to relocate there. Lin, a Taiwanese, added that free ports such as Subic would become more attractive to Taiwanese investors in the wake of the China-ASEAN free trade agreement whose implementation started last January. Addun identified the seven new Taiwanese locators as Subic 999 Trading Corp., Misung Subic Bay Inc., Bidderford Subic Inc., Subic Advance Screw Inc., Richway Plastics, Cano Subic Corp. and Tapu Corporation, whose combined investments total $5.97 million. These new Taiwanese locators are involved in manufacturing, trading and warehousing and transshipment. Taiwanese-American company Richway Plastics, which will supply shopping mall plastic bags to Wal-Mart USA, is investing $2.146 million. Subic Advance Screw Inc., which manufactures industrial bolts, nuts and screws is investing $1.5 million. Biddeford Subic, Inc. has committed to invest $880,000 to put up a manufacturing plant that will produce and export medical thermometers, digital blood pressure monitors, asthma screen monitors, diagnostic equipment and microcomputer-related equipment. "So far, we haven’t received any request for pullout… from any of our Taiwanese investors. In fact, what we are getting now are requests for expansion and additional hiring of workers," Addun said He cited the ongoing expansion of Tong Lung Philippines Metal Industry Co., Inc., a Taiwanese firm that designs and produces doorknobs and locks. Tong Lung has committed to invest $5 million to set up a new factory near its first production facility at the Subic Bay Gateway Park to meet the growing demand for high-end locks worldwide. Tong Lung’s expansion will entail hiring of 600 new employees on top of about 400 workers it has hired since 1998. SBDMC is a joint venture between the Subic Bay Metropolitan Authority (SBMA) and United Development Corporation of Taiwan. — RMG, BusinessWorld