Japanese developer partners at the Subic Techno Park (STEP) agreed to double the dividend payments for the Subic Bay Metropolitan Authority (SBMA) which will amount to nearly $1 million.
SBMA chairman and administrator Jonathan Tan revealed this after the consensus came about during a STEP board meeting in Tokyo, Japan on Nov. 17, 2023. STEP is a joint venture agreement (JVA) between SBMA, Japan International Development Organization (JAIDO) and Toyo Construction Co. Ltd. (TOYO) that was executed in April 1996.
The JVA was executed for the planning, development, construction, operation and maintenance of STEP’s 74-hectare industrial estate inside the Subic Bay Freeport Zone.
SBMA will maintain a 49.97-percent share equity and Japanese developers led by STEP president Ichiro Tsuji and his associates would have 50.03 percent.
Tan said that last year, the SBMA only received dividends of almost half million a million from STEP. This year, the agency stands to receive dividends in the amount of $999,333.64.
Tan and SBMA director Kenneth Rementilla led the SBMA delegation during the Tokyo board meeting recently. The two represented the agency and are nominees to the STEP.
Tsuji said that over the years, STEP has worked diligently to achieve its vision as evidenced by the presence of eight major Japanese locators and ten smaller companies, collectively occupying more than 70 percent of the leasable areas within the industrial estate.
“This, in turn, has led to the employment of approximately 10,000 local and foreign workers, who significantly contribute to the growth of the local economy,” he said.
Meanwhile, companies inside the STEP are expanding their operations due to the Corporate Recovery and Tax Incentives for Enterprises Act (Create) law. One of the companies, Nidec Subic Philippines Corporation, is set to generate employment from its P4.2-billion expansion project in Subic Bay Freeport.
Nidec Subic president Takeshi Yamamoto said the company’s expansion project is expected to generate close to 5,000 jobs until the last incentivized year as the Japanese manufacturing firm has a workforce of 622.
Japanese firm Sanyo Denki also held a groundbreaking for a 30-hectare complex for its $10-million expansion of its computer parts manufacturing this year inside the STEP. Sanyo Denki is expected to hire additional 1,000 workers initially for the production of computer parts that are exported globally.