By Kris M. Crismundo
MARIVELES, Bataan, Dec. 10 (PNA) — Investment pledges in the Freeport Area of Bataan (FAB) in the first ten months of the year surged by 38.2 times reaching to Php84.27 billion, Authority of Freeport Area of Bataan (AFAB) Chair Deogracias G.P. Custodio reported in a briefing here Thursday.
This year’s investment value was higher than the same period in 2013 at Php2.2 billion.
Custodio noted that AFAB is likely to end 2014 at Php80 billion-level investment pledges as there are no other big investments coming in for November and December period.
For January to October period, AFAB has attracted a total of 17 new business projects in power, manufacturing, information technology-business process management (IT-BPM), and port operation.
Bulk of the investment for the said period came from GNPower Ltd., Co. for their coal-fired power plant.
Among the new investors in AFAB include BPO firm Grand Innovasia Concept Corp. (GICC), high-end shoes manufacturer Perpetual Prime Manufacturing inc. (PMPI), and Seasia Nectar Port Services Inc. (SNPSI).
Custodio also said that the Php84-billion worth investment pledges in January-October period are expected to employ additional 5,000 personnel on top 19,379 jobs inside FAB.
In the same period last year, employment in FAB was at 17,490 jobs.
On the other hand, export of FAB locators was posted at USD348.8 million worth of revenue as of November 2014. This is 13.33 percent lower than the USD402.42 million export earnings in the same period last year.
He explained that the lower export revenue for FAB locators this year was due to the Manila port congestion as 99 percent of its companies inside FAB are utilizing the Manila port.
Likewise, more than 90 percent of FAB’s locators are in the export industry.
Meanwhile, Custodio said that the investment promotion agency (IPA) aims to get higher investment commitments next year, although this will be a challenge because of a big ticket project in the power sector invested this year.
He noted that with the increment in labor cost and the effect of one-child policy in China which made it harder for companies to employ personnel, investors are eyeing to locate in other Southeast Asian countries including the Philippines.
For this year, AFAB is the fastest growing IPAs in the country. (PNA)