Investment pledges generated by the Freeport Area of Bataan (FAB) in the first quarter surged by 1,302 percent amid greater investor interest in the former Bataan Export Zone.
Data from the Authority of the Freeport Area of Bataan (Afab) showed that it attracted P849.1 million worth of projects during the first three months of the year, exceeding the P60.5-million pledges with the investment promotion agency in the same three-month period last year.
According to the Freeport Area of Bataan, the big-ticket projects it approved during the first quarter were in the areas of biofuel production (processing of diesel fuel from coconut oil), business process outsourcing (BPO), and development and operation of commercial and tourism estate facilities.
At the end of the first quarter, employment at FAB reached 17,220—higher than the 16,724 reported at the end of 2013.
Exports by locators during the first three months, however, slid by 15.1 percent to P82.2 million from P96.9 million last year.
Exports in 2013 totaled P402.4 million.
This year, the Freeport Area of Bataan “aims to increase investments” and exceed last year’s pledges worth P2.1 billion.
Plans hinged on improving infrastructure by putting up a port or a barging facility for its locators.
According to its website, the 1,742-hectare FAB in Mariveles, Bataan, is positioning itself as a “leading investors’ hub in the Asian region” as it focuses on attracting investments mainly in business process outsourcing, electronics, logistics, manufacturing, power, shipbuilding and repair, and tourism.
In 2013, 46 percent of its locators were into garments and textiles production, 16 percent were manufacturers of bags and rubber products, while just 2 percent were electronics firms.
In terms of nationality, the top investors in the Freeport Area of Bataan as of last year were South Koreans (24 percent), Taiwanese (24 percent), Filipinos (18 percent), Japanese (14 percent) and Americans (10 percent).
Under Republic Act No. 97281, which converted the former Bataan Export Zone into the Freeport Area of Bataan, locators may enjoy up to eight years of income tax holiday (ITH), as well as exemption from a number of duties, taxes and fees.
Also, FAB is reported to be the only freeport in the country that can sell real property.