CLARK FREEPORT— Clark’s export significantly rose by 93 percent to $747 million during the first six months of the year with electronic products dominating shipments overseas.

The Clark Development Corporation (CDC) through the Enterprise Regulatory Department reported that for first semester, exports reached $747 million this year surpassing the $387 million exports value posted covering the same period last year.

ERD Manager Rod Deang in his report to CDC President Benigno N. Ricafort said that the targeted $1 billion worth of exports could be reached should manufacturers continue to post the same trend towards the second semester of the year.

The report indicated that the increase in exports volume could be credited due to strong showing of Nanox Philippines, Inc., a Japanese manufacturing firm engaged in producing liquid crystal display (LCD) with $493 million export value in the first semester or an increase of 59 percent from the same January to June 2009.

Yokohama Tire Phils., Inc., on the other hand, also contributed in the first semester as it placed second with $106million output–the output is almost the same export volume last year.

On a per sector basis, the electronics sector posted the highest exports at $522 million or 70 percent, followed by tires at 14 percent, garments at $73million at 10 percent of the total export volume during the first semester.

Other notable exporters in the first semester are L&T International Group Philippines, Inc.; L&K Industries Philippines, Inc.; SMK Electronics Corporation; among others.

Export industry in Clark has recently been noted by the Department of Trade and Industry to be one of the prime economic boosters in Central Luzon following a strong export last year that contributes to economic development.

The Central Luzon region usually ranks 3rd among the 16 regions including NCR in terms of export receipts due to the presence of a number of economic zones in Subic, Pampanga and Tarlac provinces. Rey Garcia

CDC President Benigno N. Ricafort said the state-owned corporation is planning to forge partnerships with government agencies like the Department of Science and Technology (DOST), Department of Trade and Industry (DTI), and the Bureau of Food and Drugs for the implementation of livelihood programs for Aetas in the Next Frontier area which is located in Clark’s Sacobia Valley.

Ricafort said the Next Frontier project is in consonance with the Joint Management Agreement (JMA) signed in December 6, 2007 by CDC, National Commission on Indigenous Peoples (NCIP), and leaders of the Tribung Ayta, who have inherent rights over certain areas of the Sacobia Valley under the Ancestral Domain Claims.

“CDC will be pursuing programs and projects that are geared toward capacity-building, entrepreneurship, and cooperativism. These endeavors are aimed at building self-sufficiency among members of Tribung Ayta,” Ricafort said.

Ricafort said: “Foremost in the implementation of livelihood programs will be CDC’s assistance in packaging and marketing of various existing products that Aetas are known for like cultural crafts and root crops.”

The CDC president also said the state-run corporation will ask the assistance of BFAD for the processing of the Aeta farm produce or plants into food, soaps, and other similar products.

“We are making it a point that our activities and projects for the Next Frontier will nurture Aetas into entrepreneurship, and the building of cooperatives to make them self-sufficient, Ricafort said.”

Ricafort also said the CDC also aims to establish common service facilities for Aetas in their respective residential clusters that will be built in the Sacobia Valley.

“These facilities will serve as venues for training, orientation, and even as showcase for their various products,” Ricafort said.

Earlier, Ricafort announced that the CDC is optimistic on the speedy completion of the Implementing Rules and Regulations (IRR) of the JMA.

Ricafort cited the JMA as the prime ingredient of the Next Frontier project that aims to develop more than 2,000 hectares of forested area in the Sacobia Valley – the northern portion of this Freeport.

“The most important role of the JMA is that it ensures the recognition and promotion of the overall welfare of the Aeta tribes in the area aside from enabling the CDC to generate investment potentials in tourism, housing, commercial, institutional and light industry projects in the Sacobia Valley through the Next Frontier project,” Ricafort said.

Also, Ricafort reported that the CDC has trained 21 Aetas, 18 of which have been selected as tour guides after an extensive training spearheaded by the state-run corporation, in cooperation with the Department of Tourism (DOT) Region III office last June 15 to 19, 2009.

The Aeta tour guides are now employed at the Clark Museum, Ricafort said, adding that during their training they were brought to various national museums “to benchmark and observe” the work of curators and guides.

Ricafort added that more than 100 Aetas and residents of the Sacobia Valley here have applied for security force for the Next Frontier.

Dubbed “Special Citizens Armed Forces Geographical Unit Active Auxiliary” (SCAA), the project is a recruitment of Ayta Security Detail for the Next Frontier that seeks more ways to provide livelihood programs for indigenous people in the area.

CDC Tourism and Promotions Office (TPO) Manager Noemi Garcia said this is the sixth year the state-owned corporation has supported the activity which aims to raise money for charity and promote the game of rugby.

Garcia said proceeds of the game will go to the Philippine Rugby Football Union and the Angeles Bahay Center.

She added that the Angeles Bahay Center is a home for street children opened and run by the Rotary Club of Clark Centennial since 1999.

On September 5, more than 10 teams from the Philippines will compete against ruggers from Hong Kong , Taiwan , Shanghai , and other Asian teams.

”The CDC is helping the organizers invite the public to this free activity. No entrance tickets are required. The tournament is not only an opportunity for Filipinos to learn more about rugby but it is also a good time for families to spend time together,” Garcia said.

She said audiences will not only enjoy watching rugby but will also enjoy food, music, cheerleaders, stalls, and rubber castle for kids.

To assure the safety of the players, ambulances and medical staff will also be present in the site. A masseuse is also available to help players with bruises and aching bodies.

On the eve of the tournament there will be a “weigh in” at Sub Delicious along Field’s Avenue in Angeles City . After the tournament, there will be a dinner and auction at the Salakot area of the Bayanihan Park.

Garcia added that the CDC is supportive of activities such as the upcoming rugby tournament. In the past, the CDC has been in the forefront of sports tourism events, among them are extreme outdoor sports and duathlons.

But unlike any other regular international conference, the ICGIA is security demanding as some 4,200 policemen will be tapped to protect local and foreign delegates at the Philippine International Convention Center (PICC) starting Wednesday.

A total of 1,200 expected local and foreign participants are expected to attend the event.

“This international event hosted by the Philippines is another shining moment for the PNP and a great opportunity for the country to open its doors to the international community of nations,” Philippine National Police (PNP) chief Director General Jesus Verzosa said.

President Arroyo will be the keynote speaker when the conference ends on September 11.

“With the PNP’s experience in handling security operations in past international events, we are optimistic this ICGIA Conference will be similarly successful,” Verzosa added.

The highlight of the conference will be the adoption of the ICGIA of the Manila Declaration, a plan of action that will feature a mechanism for the regular review of progress towards the conference’s goals.

The participants include government ministers and senior officials of Asian countries, business leaders, top officials of the United Nations system and other international and regional organizations, the ASEAN secretariat, prominent experts, media and civil society representatives are expected in the conference.

The hosting of the ICGIA this year is through the Department of Environment and Natural Resources (DENR) with the support of the United Nations Industrial Development Organization (UNIDO), the United Nations Environment Programme, and the United Nations Economic and Social Commission.

As a starting ground for security measures, Verzosa said he had already formed a special task force that will be dubbed National Task Force “Greening Industry in Asia” and designated Deputy Director General Jefferson Soriano, PNP Deputy Chief for Operations as its commander.

The group, the official said, will oversee the operations of several Task Groups directly involved in providing security to delegates in the international conference.

Victor Jose I. Luciano, CIAC President and CEO, said the strategic planning workshop, attended by top executives, managers, assistant managers, supervisors and employees of the corporation, was a success as plans and programs were outlined based on the inputs provided by the resource persons.

“The workshop was a success. We were able to formulate CIAC’s 2009 targets for the remainder of the year to improve the level of awareness of our personnel and the challenges facing CIAC, in particular, the Diosdado Macapagal International Airport (DMIA),” Luciano said.

Presented and discussed during the planning-workshop were the presentation of a Balance Scorecard; the performance of CIAC in the first half of 2009; a Program Review Analysis; a review of the second half targets for CIAC; and the actual status of CIAC, among others.

A presentation and review of the proposed CIAC Table of Organization and a workshop on the action plans and targets for 2010 were also discussed.

Resource persons for the three-day planning-workshop include Aviation and Logistics Development Expert Prof. Cherrylyn Rodolfo, Program Director of the Industrial Economics Program of the University of Asia and the Pacific; Retired Pilot Capt. Ben Solis of the Asia Foundation; and City of San Fernando Mayor Oscar Rodriguez. Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arezza also delivered a message during the activity.

Rodolfo made a presentation on the economic situation in the aviation industry that includes economic forecasts and trends for the Philippines, the Asian Region and the global economy; Captain Solis discussed airport logistics and marketing; while Mayor Rodriguez made a presentation on “Good Corporate Governance: The City of San Fernando Experience” wherein he shared insights and wisdom to motivate CIAC employees to have a positive outlook toward the development of the DMIA.

Galang said, “The Balance Scorecard is a strategic planning and management system that will improve the activities and vision as well as strategies of a corporation to meet its targets.”

He also added that the system will improve internal and external communications, including monitoring the performance of the organization in its strategic goals.

The workshop was also attended by Bases Conversion Development Authority representatives headed by Eduardo Policarpio Jr., Corporate Planning Manager, and Arrey Perez of Finance Department. Rendy Isip

SUBIC and Clark’s self-sustaining business environment has resulted in surprising yet modest growth tallies for the first half of the year for the two economic zones as both continue to display resiliency and further beating the odds.

Citing a recently released study on the ongoing impact of the global financial crisis on foreign direct investments (FDIs) in Asia, particularly in the Philippines, the Nomura Research Institute (NRI) of Japan disclosed that Subic has topped all other investment-promotion agencies throughout the country by posting a 13.6- percent increase in committed investments based on year-on-year figures for the first quarter of 2009.

On the other end of Central Luzon’s “New economic corridor,” its counterpart, state-owned Clark Development Corp. (CDC), likewise displayed strong performance in the area of FDI as it has lured both local and foreign firms to put in 36 new projects with P1.05 billion worth of fresh investments in the first six months of the year.

According to the first version of the NRI study, FDI commitments secured by the SBMA for the first quarter amounted to P1.5 billion. On the other hand, all of the other Philippine investment promotion agencies (IPAs) reported a year-on-year decrease in commitments for the same period, the NRI said.

A noted economist told NewsCentral that despite the modest growth displayed by both ecozones (Subic and Clark), “it’s still growth no matter how one puts it.”

He said compared with other neighboring Asian countries which continue to reel from the global economic slump, Subic and Clark remain as the Philippines’ “best bet” in terms of luring more foreign investments for the country.

With its air, sea and land transport facilities, which are now rapidly shaping up as world-class infrastructure developments, the vision of making Central Luzon as the premier investment and economic destination for the country has remained “very much achievable,” he said.

Seaport
Revenue collections by the seaport department of the SBMA in the first seven months have already exceeded the agency’s target for the entire 2009.

SBMA deputy administrator for operations Ferdinand Hernandez said collections from vessel lay-ups in Subic Bay, as well as wharfage fees on imported products, boosted seaport revenue to a total of P319.73 million, or P3.43 million more than the revenue target for this year.

The amount also represented a 15.7-percent growth over 2008 figures, Hernandez pointed out.

Airport

The Diosdado Macapagal International Airport (DMIA) continues to attract more passengers as the airport posted a 21-percent increase in international passenger volume in the first five months of 2009 despite the global downturn in the aviation industry caused by the economic slowdown.

Clark International Airport Corp. (CIAC) president and CEO Victor Jose I. Luciano said the DMIA posted a 21-percent increase in international passenger volume from the period January to May this year compared with the figures posted in the same period in 2008.

Based on a report by the CIAC Corporate Planning Department, 251,719 international passengers passed through the DMIA from January to May this year compared with 208,858 in the same period in 2008, or a difference of 42,861 passengers.

Investments
The NRI, which prepared a presentation for the Japan International Cooperation Agency (JICA), observed that the Philippines, like other Asian countries, is reeling from a decrease in FDI commitments due to the economic slowdown.

However, the NRI noted that the Subic free port, which is being managed by the Subic Bay Metropolitan Authority (SBMA), posted a 13.6-percent increase in committed investments based on year-on-year figures for the first quarter of 2009.

This made the SBMA the only IPA in the country that turned out a positive
figure.

According to the first version of the NRI study, FDI commitments secured by the SBMA for the first quarter amounted to P1.5 billion.

According to SBMA Administrator Armand Arreza, the agency signed up a total of 30 new projects worth P1.5 billion for the first quarter of this year, bringing to 966 the total number of registered investors here. The new projects, meanwhile, are expected to generate some 580 new jobs.

Subic’s investment generation this year was recently boosted further by new investment pledges by South Korean shipbuilder Hanjin, which bared new capital infusions worth a total of $86 million.

Hanjin officials said the new investments would be for the production of ship components at the Subic facility and would be committed in two parts: $29 million starting September this year, and $57 million next year and onward.

Arreza said the growth in investments here was made possible by a self-sustaining business environment created in Subic over the years by the SBMA that was directed toward various industries that require less dependence on foreign markets.

He added that among the industries that kept the local economy afloat was tourism, which has become a major economic driver for Subic Bay, and which has also created various downstream businesses that benefited communities in the Subic Bay area.

The figures on FDI commitments in the Philippines formed part of a study by the NRI for the proposed development of the Philippine Investments Promotion Plan (PIPP).

The PIPP seeks, among others, the creation of an interagency body “to oversee the implementation and monitoring of all programs, activities and projects to improve investment climate” in the country.

The network of IPAs, including the SBMA, “is tasked with formulating and developing strategies to position the Philippines as among the prime investment destinations in Asia,” the NRI said.

The same study pointed to the negative impact on FDI generation in other Asian countries. These included Thailand, which posted a 26-percent decrease in capital commitments; Vietnam, with a 67-percent decrease in capital realization; India, with a 28-percent decrease in FDI realization; and even China, which suffered a 21-percent decrease in FDI realization.

Compared with its Southeast Asian neighbors, however, the Philippines “has attracted far less FDI than the peer Asean countries,” the NRI study found out.

“Really, there’s good news in Clark amid the crisis…and we are even preparing for the economic upturn,” CDC president Benigno Ricafort said.

At least 15 of these are in the services sector, seven each in information technology (IT) and commerce, three in industrial, one each in aviation and housing, and the rest provide institutional support.

“Clark free port was making a strong showing as an investment destination,” Ricafort said.

Texas Instruments poured in $1 billion. It has completed its $300-million building, targeting to hire at least 3,000 workers once it hits full operations.

Singapore Airlines Engineering Co. and Cebu Pacific pooled $10 million for an aircraft-maintenance facility at the Clark Civil Aviation Complex.

With the Global Clark Gateway Logistics, valued at $1.2 billion, and the Clark International Airport Corp. Terminal, valued at $1.3 billion, the free port’s main zone has only 300 hectares left for industrial and commercial development.

“These are signs of steady growth,” Ricafort said.

At least 22 projects are expected to be back on track with the lifting in July of the height restrictions on buildings constructed in the western part of the free port.

Revenues
In terms of revenues, the 417 Clark locators here remitted P1.84 billion in income taxes of employees, customs duties and business taxes to the Bureau of Internal Revenue and the Bureau of Customs (BOC) in 2008.

Subic Bay Free Port has remained one of the top revenue-earning free port and economic zones in the country with a P2.2-billion tax collection during the first six months, up by 21 percent year-on-year.

Arreza disclosed that based on the revenue-collection reports of the BOC, the total cash collections derived from payment of customs duties and taxes significantly went up by 21.84 percent higher compared with last year’s P1.8 billion.

Arreza said the revenue collection from January to June this year increased by over P395 million.

New growth area
The CDC has also turned to the Sacobia subzone to be the new growth area.

Called the Next Frontier (Clark Special Economic Zone), this spans a total of 10,000 hectares, 2,477 hectares of which will be used for ecotourism projects, agro-industrial projects, light industries and community-development projects.

CLARK FREEPORT – Seven Clark firms received awards from President Gloria Macapagal-Arroyo during the Clark Freeport Recognition 2009 spearheaded by the state-owned Clark Development Corporation (CDC) held Monday, July 13, at the Stotsenberg Hotel here.

CDC President Benigno N. Ricafort said Ms. Arroyo was the guest of honor during the recognition rites where she bestowed various awards to top performing Clark investors.

Ms. Arroyo, who was in Porac, Pampanga on Monday to inspect various infrastructure projects, proceeded to Clark to personally give the awards the following investors: Clark Water Corp., Smart Shirts Philippines, Inc., Poongsan Microtech Philippines, Inc., L&T International Group Philippines, Nanox Philippines, Inc., Yokohama Tire Philippines, Inc., and Texas Instruments Philippines.

Ricafort said Clark Water Corp. received the special recognition for “Outstanding Environment and Health Management” while Poongsan was cited for “Outstanding Investment Performance.”

He added that Smart Shirts received the “Outstanding Employment Performance and Human Resource Management” award while Texas Instruments was cited as “Outstanding New Investor.”

Meanwhile, the CDC bestowed the “Outstanding Recognition for Overall Performance” awards to the following locators: L&T, Nanox, and Yokohama.

Also, Ms. Arroyo gave special recognition awards to “Outstanding Clark Freeport Partners to the following: Bureau of Customs – Clark, Bureau of Immigration – Clark, Civil Aviation Authority of the Philippines, Department of Labor and Employment Region III, National Power Corp., National Transmission Corp., Philippine Air Force 600th Air Base Wing, Philippine Economic Zone Authority, and the Clark Investors and Locators Association (CILA).

Ricafort said the CDC has launched the Clark Freeport Recognition 2009 “to recognize the valuable economic, social, development contributions as well as the notable business and people management practices and successes of Clark Freeport locators.”

“The awards program aims to recognize distinct enterprises inside the Clark Freeport which have objectively displayed management and leadership excellence in relevant areas or categories consistent and supportive of CDC’s vision and mission for Clark,” Ricafort said.

“The program also intends to encourage Clark investors to pursue such areas of excellence while serving as models of best practices for developing enterprises,” he added.

CDC President Benigno N. Ricafort said Lazatin on Thursday, July 16, awarded to the CDC a check worth P500,000 which was derived from the solon’s Priority Development Assistance Fund.

Ricafort said the CDC established the prosthesis laboratory and training center last February 15, 2009 which aims to provide more prosthetic legs to hundreds of amputees in Pampanga and other nearby provinces.

According to Ricafort, the prosthesis center is part of CDC’s Corporate Social Responsibility (CSR) program. He added that the CDC has forged ties with the Physicians for Peace (PFP) in close collaboration with Pampanga congressional representatives, mayors, Kapampangan Development Foundation, and various civic groups.

Ricafort added that the partnership between the CDC and the PFP begun more than a year ago with the official launching of the Walking Free Pampanga, a program supported by Lazatin that aims to provide free prostheses and wheelchairs for the indigent amputees.

“The goal is to enable them and their caregivers to go back to productive life. The project has provided 124 prosthetic legs to more than 100 patients and 172 wheelchairs to date,” Ricafort said.

EXPORTERS’ HAVEN. CDC President Benigno N. Ricafort (center) and Philippine Exporters Foundation, Region III, Inc. President Randy Viray shake hands after signing a lease agreement for the establishment of a facility that would showcase locally-made products inside the Clark Freeport. Also in photo are (from left) Willand Kabigting, treasurer; CDC Executive Vice President Philip JB Panlilio; and Reggie Lastimoso, director; Alex Lastimoso, director. CDC-PRD photo

CDC President Benigno N. Ricafort and Philippine Exports Foundation President Randy G. Viray signed the agreement that has a lease term of 15 years with an expected P3.7-million investments.

Ricafort said the CDC and Philippine Exports Foundation’s collaboration aims to establish a tourism café, lifestyle showroom; trading house and pasalubong center for manufactured products in Central Luzon.

He added that the project would rise in a 1,543-square-meter area along C.M. Recto Highway here.

Ricafort said the showroom will display furniture, home accessories, lanterns and food products, among others.

“Central Luzon, specifically Pampanga, is the home to the country’s finest furniture makers whose products found their niche in equally finest stores in the world,” Ricafort said.

But Ricafort lamented that locally-made products seem to lack a showcase center where hotels and owners of residential establishments can scout for top- and world-class merchandise.

“There is a lost of opportunity for local traders since there is nowhere to see a collective presentation or showroom of their products,” Ricafort said.

“Even foreign buyers who want to take a look at these products will have to go to factories in different areas where they are located and this poses inconvenience to them especially if they are under a tight schedule,” he added.

Ricafort said establishing a tradehouse inside the Clark Freeport “would be a boost to our ailing exports and assist manufacturers in riding this tide of recession and uncompetitiveness out.”

He added that the showroom can run parallel to the Department of Trade and Industry’s (DTI) “One town, one product” (OTOP) program and the Pasalubong Center and Tourism Café.

“As a matter of principle and in support of the flagship program of President Gloria Macapagal-Arroyo on providing employment, this project hopes to retain and even generate more jobs for the Kapampangans,” Ricafort said.

“By helping exporters, we help create jobs,” the CDC president stressed.