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Clark Subic Marketing is a common portal featuring two of the most exciting Philippine Freeport Zones. This Website promotes the incredible economic opportunity and the companies currently located within these Freeport zones. We are committed to create the premier one-stop portal for the Clark and Subic Bay Economic Freeport Zones.

If you are a Clark or Subic locator, click here to contact us to apply for a FREE web page or locator directory listing on this portal. Feel free to give us a call at: 045-499-0695.

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HISTORY OF CLARK - The Clark Freeport Zone in Angeles City , Pampanga, Central Luzon is one of the more well-known among the Philippine Freeport Zones. Formerly known as the Clark Special Economic Zone, It covers a massive 28,000 hectares of property which used to be used by the United States Air Force back in the days when the United States maintained a significant military presence in the Philippines . At the time, it was known as Clark Air Base – the biggest air force facility of the US outside that country.

CLARK TODAY - Today, Clark is being promoted as a major hub for the Asian operations of various medium-sized and large companies. The Clark Development Corp. (CDC) is responsible for managing and operating part of the Clark Freeport Zone spanning 2,200 hectares (out of its total territory of 4,400 hectares.) The other 2,200 hectares (which encompasses the Diosdado Macapagal International Airport ) falls under the jurisdiction of CDC’s subsidiary Clark International Airport Corporation.

INVESTMENTS DELUGE CLARK - Around 389 foreign and domestic investors have relocated to and funneled around US$24.33 billion worth of investments into the Clark Freeport Zone since the CDC was formed in 1993. Investors operating within the zone undertook US$1 billion in exports in 2006 alone. Clark Freeport Zone currently employs more than 47,000 residents of Bulacan, Tarlac and Pampanga, serving as a vital economic engine for the surrounding population.

TAX AND DUTY INCENTIVES - The economic viability of the Clark Freeport Zone stands to improve further after President Gloria Macapagal Arroyo signed Executive Order 619 on April 16, 2007 . E.O. 619 will provide tax and duty incentives to duly-registered businesses that will relocate to “special economic zones” which will be carved out of the existing Clark Freeport Zone territory. These tax and duty incentives are the same as those previously available to investors under Republic Act 7916. Clark Development Corporation marketing manager Raffy Galvez disclosed that companies that opt to relocate within the Freeport Zone are granted “generous” tax breaks by the Philippine government. Corporate income tax for such companies is only equivalent to 5% of their gross income; usually, this tax amounts to a whopping 32%. Also, capital equipment and raw materials can be imported duty free. The Clark Freeport Zone itself will soon be renamed Clark Freeport Philippines , after President GMA approves Senate Bill 2260.

TAX AMNESTY FOR DELINQUENTS - Existing investors in the Clark Freeport Zone who have yet to pay their back taxes will benefit from the impending signing into law of Senate Bill 2259 which grants tax amnesty to those delinquent foreign investors.

100% FOREIGN EQUITY IN ENTERPRISES - Foreign investors (of any nationality) are now permitted to maintain 100% foreign equity in all areas of investment which they will set up in the Philippines – provided such companies are neither financial institutions nor are indicated in the Foreign Investment Negative List. This developed after the foreign investments law was liberalized. Furthermore, foreigners are now permitted to lease privately-owned lands from their Filipino owners for a maximum of 75 years. This boils down to an initial lease period of 50 years, with a possible extension of 25 more years.

BETTER THAN CHINA - Texas Instruments senior vice president Kevin Ritchie revealed that his company bypassed other competitive Asian countries such as Thailand , Viet Nam and China since the Philippines was able to offer quality labor and incentives. Semiconductor and Electronics Industries in the Philippines executive director Ernie Santiago pointed out that the choice of the Clark Freeport Zone of the Philippines proved that the overseas operations of American companies like Texas Instruments need not automatically be relocated to the usually-default choice which is China . Santiago said the Philippines has the skilled workers and has the capacity to offer the right incentives to draw in companies of this type. What the Philippines needs to work on is its ability to promote the advantages of operating in the Philippines to foreign investors, stated Santiago . This, in the light of the growing appeal of the Philippines because of its efforts to ensure nationwide financial stability.

NEW MEGAHIGHWAY IN CENTRAL LUZON - The Bases Conversion and Development Authority (BCDA) has started to focus on the construction of a key transportation pipeline named the Subic-Clark-Tarlac Expressway (also known as the SCTex). This superhighway is expected to directly connect the economic, industrial and tourism zones which can be found in Central Luzon: the Subic Bay Freeport Zone, the Clark Special Economic Zone, the Central Techno Park (found in Tarlac), and the Bataan Technology Park. Upon completion, this major road is expected to help cities and provinces that it passes through to become important participants in the government’s Global Gateways Development Program that aims to transform the Philippines into a globally competitive country. As a result, the Central Luzon region is projected to become even more economically important than Metro Manila, the nation’s capital.

FIRST-CLASS INTERNATIONAL AIRPORT – The vast expanse of space available in the Clark Freeport Zone proved to be a boon towards the development of a world-class airport. The Diosdado Macapagal International Airport (DMIA) occupies 2500 hectares, with two parallel runways each spanning 3.2 kilometers (that can easily be extended to 4 kilometers, if necessary.) This makes this international airport one of the largest in Asia . Large and wide-bodied aircraft can be effortlessly accommodated by the facility. Though the DMIA presently handles only cargo operations, it is projected to eventually become the main international gateway for every commercial aviation service in the Philippines – this is expected to further boost economic activities in the Freeport Zone.

LEISURE AND RECREATIONAL ACTIVITIES - Those who wish to simply enjoy their leisure time within the Zone may opt to patronize any of the 11 duty free shops inside its boundaries. Clark is also home to various bars and fine-dining restaurants, as well as the Mimosa Fontana Resort and Country Clubs which is known for its world-class golf courses. Visitors can choose to stay at either the Holiday Inn Clark, Mimosa, Montevista or Fontana Villas, the new Hotel Stotsenberg, Oxford Hotel or the affordable Clark Hostel – all located within the Zone. For those who are feeling more adventurous, they can select which particular activity raises their adrenaline levels the most - sky-diving, off-road driving, and an aerial visit to nearby dormant volcano Mt. Pinatubo are popular choices for those daring enough to venture outside the Zone.

Aside from the 188-hectare Mimosa Leisure Estate, which is fast taking shape as a premier hub for future leisure and recreational activities, the Zone also showcases Fontana's water theme park and the first Casino in Clark (the Mimosa Regency), found near the Holiday Inn. Holiday Inn Resort Clark Field general manager Michael Weiss noted that tourists will find that the nearby location of the airport will allow them to take advantage of the area’s leisure and recreational facilities easily.

U.P. SETS UP SHOP IN CLARK - For the children of Clark Freeport Zone residents, employees, and corporate leaders, the good news is that the University of the Philippines – Pampanga (or U.P. Pampanga) has broken ground on a new site which is located within the bounds of Clark Freeport Zone. This site (which will house the permanent facilities of the U.P. Pampanga Extension program) will be found within the demarcations of a planned “ University Town ” that will occupy 3.28 hectares. The Philippine Congress had earlier earmarked PhP50 million for the project which is expected to help U.P. create a high-tech window to global education. In return, the youth in the Central Luzon region will get a chance to enjoy U.P.’s excellent brand of education.

RELOCATE TO BERTHAPHIL BUSINESS PARK - For investors who are not sure where to relocate their operations within the Clark Special Economic Zone, they may want to look into the Berthaphil Business Park which is the site of 3 key Berthaphil facilities: Berthaphil I – Industrial Park, Berthaphil II – Office Park, and The Center @ Clark which is the ICT Campus of Berthaphil. Berthaphil, which began operations in 1993, has been able to successfully provide office, warehouse and office space – and even customized Information Technology facilities - to 25 companies from different countries to date. Rolls Royce Helicopter Engines of the UK , H3 Electronics of Germany, Easton Garment of Taiwan, Meisei Electronics of Japan , and EPIXTAR of the US are just some of the satisfied clients currently housed in Berthaphil facilities. Berthaphil has joined forces with the COMFAC Global Group to provide a lend-lease program to corporate clients that will help amortize the cost of build-out throughout the lifetime of the lease. The two partners also offer dedicated facilities management so that corporate clients can avail of dependable inexpensive utilities, advanced backup and disaster recovery systems, and an excellent security system.

CLARK AS OUTSOURCING CENTER - The Department of Trade and Industry, and the Commission on Information and Communications Technology, said that the Freeport Zone can be considered as a viable outsourcing hub by investors. The factors that contribute to its ability to do so are its location, the availability of skilled and trainable labor, and access to investment areas that feature ample amenities.

CLARK SCORES HIGH IN ICT FIELD - Two Philippine government agencies – the Department of Trade and Industry, and the Commission on Information and Communications Technology – recently gave high marks to Clark Freeport Zone as far as its capacity to host information and communication technology activities is concerned. The Freeport Zone scored 9.23 out of 10 since it meets majority of the vital requisites demanded by information and communication technology locators. Such requisites are the existence of incentives, vendor support, telecommunication facilities, real estate, power and transport infrastructure, and support from local government units and the community. Other important points that helped the Freeport Zone earn such a high score are its quality of life and the presence of relevant manpower needed by the industry to function.

TEXAS INSTRUMENTS VENTURES INTO CLARK - The most recent (and perhaps most exciting) business development in the Clark Freeport Zone is the May 2007 announcement by Texas Instruments that it will open a new plant within the Zone valued at $1 billion. The move by this major US-based computer chip manufacturer is believed to be the largest investment of its kind in the Philippines to date – showing, according to American Chamber of Commerce executive director Robert Sears, that the Philippines has the capacity to compete with other top business facilities in the world if its leaders set their minds to it. Sears stressed that Texas Instruments is planning to stay in the Philippines for the long-term because it is comfortable with the country’s business climate.

The new Texas Instruments facility will occupy a total of eight hectares (or 19.7 acres) and will house the company’s assembly plant and test operations. Construction on the facility is expected to start in July 2007 or August 2007, with completion targeted at the end of 2008. When the Clark facility is finished, Texas Instruments is projected to generate at least 7 billion dollars in total exports from its Philippine operations – double the 3.5 billion dollars in exports that it produced in 2006 from its Baguio City facility alone.

Clark Development Corporation has also opted to devote around 30 hectares (or 74 acres) in the Freeport Zone to accommodate the presence of the support industries and suppliers of the company – numbering about 500 on the whole – who will also be based in the Zone.

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HISTORY OF SUBIC BAY -The Subic Bay Freeport Zone in Subic Bay , Philippines (which spans a total of 13,800.60 hectares) used to be the site of the biggest overseas military navy station of the United States of America called Subic Bay Naval Base. The Americans were forced to pull out their forces after the nearby volcano Mt. Pinatubo erupted in 1991.

SUBIC TODAY - Nowadays, the Subic Bay Freeport Zone’s biggest economic draw is the deep water natural harbor of Subic Bay , where over 7000 workers man a high-end ship building facility valued at over $1 billion. Aside from the ship yard, more than 610 companies are based in the Subic Bay Freeport Zone, the sister Freeport Zone of the nearby Clark Freeport Zone. Subic Bay Freeport Zone is divided into four key investment areas, namely, the Central Business District, Subic Gateway, the Subic Bay Industrial Park , and the Subic Techno Park . Aside from ship-building, other commercial activities driving the Freeport Zone’s economic engine are manufacturing-related businesses, electronic communications technology, warehousing and transshipment, banking, and education. All development of the Subic Bay Freeport Zone falls under the jurisdiction of the Subic Bay Metropolitan Authority.

TAX INCENTIVE FOR FOREIGN INVESTORS - The big deal about this particular Philippine Freeport Zone is that foreign companies that opt to relocate to the Subic Bay Freeport Zone stand to benefit from a competitive incentive package offered by the Philippine government. To avail of these incentives, such foreign companies should decide first whether to enlist as a Subic Bay Freeport (SBF) Enterprise or as a Subic Bay Regional (SBR) Enterprise . A company which opts for SBF status must first qualify as nationals and businesses of any country operating in any field of economic activity – excluded from this qualification are any entities who are restricted because of the Foreign Investments Negative List (under the Foreign Investments Act of 1991.) SBR status, on the other hand, may be granted to all multinational firms that aim to participate in regional and/or international trade or services, as well as engage in business activities, by locating their regional headquarters within the Subic Bay Freeport Zone.

There are more tax incentives for SBR-designated Enterprises – such status merits them tax and duty free exemptions for various items. These items could be imported raw materials and supplies, capital equipment and even ordinary consumer products that are meant to be consumed within the Freeport Zone. Case in point - an imported passenger car that was purchased to be driven within Subic Bay is priced 50% less than the same kind of car bought outside. But the most dramatic savings for locators are generated through imported materials and equipment meant for daily production, meaning locators will be able to compete on a significant basis.

Another tax incentive for SBR-designated Enterprises is the Income Tax Holiday which is granted to investors on project basis. Registered enterprises do not have to pay any kind of local and national tax (including franchise taxes, fee for the Mayor’s Permit, property tax, excise and ad valorem taxes, and value-added taxes.)

TAX LIABILITY OF INVESTORS - So do investors have to shoulder any kind of tax liability at all? Actually, Enterprises are only required to declare a 5% final tax for the adjusted gross income they were able to produce from activities conducted within the Freeport . SBF Enterprises, in connection, are permitted certain deductions before they compute for the 5% final tax. SBR Enterprises, on the other hand, have to absorb a 5% final tax on gross income for their business activities with some or all countries located in the Asia-Pacific, and even with nations located elsewhere in the world (including the Philippines .) Those who have to pay this tax may also enjoy more deductions (including those on sales and marketing salaries, and losses from foreign exchange transactions.)

Investors who wish to receive the Subic Special Investors Visa only need to funnel a minimum of US$250,000 in investment into the Subic Bay Freeport Zone. Otherwise, there is no minimum investment required from investors.

COST OF LEASING PROPERTY - To lease industrial land in the Subic Bay Industrial Park will cost investors US$55 per square meter for properties measuring less than 2 hectares. For land surpassing 2 hectares, investors will have to shell out US$50 per square meter. In the Subic Techno-Park, leased industrial land costs US$75-80 per square meter but the lease only covers 50 years. Industrial land for lease in the Subic Bay Freeport is priced at US$0.50-4.00 per square meter.

In the Central Business District, leasing office space amounts to US$3.50-10 per square meter. On the other hand, leasing factory space in the Subic Bay Freeport is tagged at US$2-20 per square meter.

TRANSPORTATION INFRASTRUCTURE OF SUBIC - One great advantage of Subic Bay as a Special Economic Zone is the existence of an excellent transportation infrastructure – for one thing, the Freeport has a vast road network that links land areas within the Zone. The Subic Expressway is advantageous to use since it can reduce travel time from Subic to Manila by 30 minutes while eliminating the need to use the zig-zag road leading to Olongapo City . You only have to spend 5 minutes driving the 6-km. distance from the Industrial Park to the Subic Bay International Airport . In addition, a port development project valued at US$215 million is currently underway – this encompasses construction of a Cubi Point-based container port, the repair of existing Freeport wharves, as well as the purchase of required equipment and facilities (such as four goose-neck type quay gantry cranes that can each accommodate 40.6 tons per load.) These cranes are projected to increase the handling capacity of container vans within the Zone as much as six-fold. The International Airport and the Seaport of Manila are also used as additional means for transportation by certain locators within the Zone. Furthermore, the Subic-Clark-Tarlac Expressway is set to be built soon by the Bases Conversion and Development Authority – guaranteeing increased access to Subic Bay Freeport Zone by the residents of cities and provinces that the new megahighway will cut through.

POWER, WATER AND TELECOMMUNICATION SERVICES - As far as utilities are concerned, the Subic Bay Freeport Zone has adequate power and water supplies to meet the growing needs of its population. The Freeport is dependent on Subic Enerzone to provide as much as 116 megawatts of electricity to consumers (though additional power stations are set to be built within the Zone as well.) Electricity costs PhP5.56 per kilowatt - hour. Subic Water and Sewerage Company Inc. heads a consortium which is responsible for the steady supply of potable water and satisfactory sewerage services. Water capacity from this consortium (that also requires the services of BIWATER, DM Consunji, SBMA, and Olongapo City Water District) amounts to 33,000m3 daily at a cost of PhP23.13 per cubic meter. Telecommunication services are handled by Subic Telecom which, at the moment, can provide 100,000 lines to the Freeport population. At present, the utilities of the Freeport Zone are in the process of being upgraded.

MANPOWER TALENT OF THE ZONE - The Subic Bay Freeport Zone is known for the steady supply of skilled manpower which Subic Bay Enterprises can source from the nearby areas of Hermosa and Morong in Bataan , Subic town proper, and the City of Olongapo . Majority of these workers were previously employed by the US Navy, meaning they possess a high degree of proficiency in English. The SBMA Labor Center assists Subic Bay Enterprises in manpower pooling. Other manpower services providers also exist who can help locators tap into the area’s continuous and steady supply of workers – particularly when the need is immediate.

FINANCE/BUSINESS SERVICES SUPPORT - Businesspeople may opt to patronize any one of the many branches of international banking institutions for their financing, electronic banking and investment activities. Various postal and courier services have set up house within the Zone – these, along with the existence of internet service providers, help residents of the Zone keep in touch with the rest of the world.

HOUSING FOR FOREIGN INVESTORS - As far as the housing needs of Enterprise officers and their families are concerned, Subic Bay features 1,876 housing units which they can readily occupy. These housing units, which were previously occupied by members of the US Navy and their families, are situated within well-maintained and secure areas. Around 1,000 units are still available for future occupancy under short-term or long-term lease arrangements. The children of Enterprise officers may attend the nearby Brent School Subic which uses a predominantly US-based curriculum that is oriented towards the International Baccalaureate Program from Grades 1 to 12.

HEALTH AND FITNESS SERVICES - In the event of a medical emergency, Subic Bay residents can avail of excellent 24-hour emergency and outpatient health care services at three places within the Zone: the SBMA Dispensary at Cubi and at Dewey Avenue , and the New Terminal Clinic within the Subic Bay International Airport . And for those who simply want to relax at the gym after a tough day doing business or recreation, it’s good to know that the Zone is now home to Slimmers World International, conveniently located within the Central Business District.

SPORTS AND RECREATIONAL ACTIVITIES - Subic Bay maintains various sports and recreational facilities – these include parks, bowling alleys, swimming pools, horse-back riding stable, gymnasium, and an 18-hole golf course. Subic maintains a private yacht club within the marina, and various shopping malls abound in the area. For those inclined to appreciate the well-preserved environment of Subic, various eco-activities have been provided – these include hiking the Apaliin trail, being immersed by indigenous Aeta tribesmen in their culture, visiting the dormant volcano Mt. Pinatubo, camping, a journey through the nearby Zambales Mountain Range, and a fun-filled tour of duty with the Jungle Environment Survival Training (JEST) Camp.

If the JEST Camp doesn’t raise your adrenaline levels enough, Subic Bay Freeport Zone also has different theme parks that might appeal to you. There’s the Subic Extreme Adventure Park which offers Tension Traversing, High Ladder Climbing, Canopy Sliding, and High Pole Jumping. Another popular offering at the Zone is the Jungle Life Encounter – you can visit the tiger sanctuary, the serpent and reptile den, the flamingo ponds, the boar pen, the ostrich pen, the farmer’s barn, as well as various lagoons and man-made waterfalls. Those who feel nervous about security need not worry - every entry and exit point of Subic Bay is well-guarded because the Zone is founded on the location of the former US Naval Base.

SUBIC AS HOME FOR RETIREES – Real estate developers have capitalized on the clean, safe, environmentally-friendly and peaceful community of Subic Bay to attract retirees from different countries. Four condominiums have already been put up to cater to this market made up mainly of retirees from Canada , Europe , the United States , Taiwan , China , Japan , and Korea . Subic Bay has been tagged as one of 14 ideal areas for retirees to relocate to in the Philippines . This means Subic Bay developers have the potential to secure a sizeable portion of the $40 billion in revenue that the country may generate by 2015, if the Philippines is transformed into the retirement capital of Southeast Asia , according to the Philippine Retirement Agency.

FOREIGN CARRIERS TO GET AERONAUTICAL FEES DISCOUNTS – The Subic Bay Metropolitan Authority is offering discounts on aeronautical fees that airlines have to shoulder for using the Subic Bay International Airport . Carriers will enjoy an 80% cut in fees on weekdays and 60% discount during weekends. These fees will cover charges such as use of navigational equipment and radar, lighting, parking, and take-off and landing. The SBMA is providing such cuts on its fees because it would like more airlines to use the Subic Bay International Airport . Airlines which are presently using the Subic Bay International Airport for their international flights are Inter-Island Airlines, Mandarin Air, Cebu Pacific Air, and Air Philippines .

SHIPBUILDING THRIVES IN SUBIC - In 2007, Hanjin Heavy Industries Corp.-Philippines, a major ship-building concern headquartered in South Korea, is expected to produce over 30,000 jobs (directly and indirectly) as it spurs its operations in Subic Bay to reach full capacity this year. Hanjin presently employs 6,900 workers in Subic Bay , with around 4,900 of these being skilled staff recruited when its Philippine operations were at the pre-operations and construction stages. With the addition of Hanjin’s ship-building activities in Subic Bay , export industries are expected to expand to around $2 – 3.5 billion this year. (Hanjin is currently ranked as one of the biggest shipyards in the world.)

Hanjin’s Subic Bay facility has been tagged to build new 4,300 Twenty Foot Equivalent Units container ships earmarked for Greece and Germany . Initial production will be composed of six 4,300 TEU capacity container ships ordered by Diorxy Maritime Corp. of Greece which are scheduled for completion and delivery by 2009. During the second series of production, six more ships will be constructed for delivery to the German company NSC Schiffartsgeselhaft.

According to DTI secretary Peter Favila, the local economy – as well as the Hanjin company - are expected to benefit significantly from these two orders. Favila further noted that construction of the 12 new ships will launch the Philippines ’ into its new role as the center of shipbuilding activities in Asia and the Pacific because of its capacity to undertake large-scale shipbuilding. This will become possible because Hanjin has invested in the training of its Filipino workers who have the necessary expertise for the job, and also because Hanjin itself is renowned for its vast stores of knowledge and skills in shipbuilding.

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