San Miguel Corp. (SMC) expressed optimism the vision for the Bulacan economic zone and Freeport could still be realized given the many benefits it will bring to the country such as $200 billion exports annually.
SMC said it will work with the government to address issues on the proposed bill creating the ecozone.
SMC president Ramon Ang gave this statement following the recent veto by Malacanang of House Bill 7575, or “An Act Establishing the Bulacan Airport City Special Economic Zone and Freeport.”
But Malacanang said amendments to the vetoed law does not guarantee it would be certified as urgent and eventually passed into law.
“We respect and abide by the government’s decision. We thank him for recognizing where the proposed Freeport bill can be further improved, and we look forward to working with his administration towards perfecting this. We are eager to continue working with government, and play an active role in helping our country reach its goals as we have faithfully and consistently done,” Ang said in a statement.
SMC is fully financing and building the P740-billion New Manila International Airport (NMIA) project in Bulacan.
Ang said the Bulacan ecozone, if approved, would be managed by the Philippine government, and any tax incentives to be given to investors will still pass the Department of Finance’s (DOF) Fiscal Incentives Review Board review and approval process, to ensure these are aligned with the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law.
“Among our plans for the ecozone is to help create science and technology export hubs with the cheapest logistics cost, because these will be close to the airport and seaport. We are looking to attract world-class semiconductor manufacturers, battery power storage system manufacturers, electric vehicle makers, and even modular nuclear power assemblies and other new and emerging tech industries,” Ang said.
Ang also addressed the issue of NMIA being close to Clark International Airport which was mentioned in the veto and was initially raised by the DOF under the previous administration, which said NMIA would “compete” with Clark airport.
Ang said apart from the considerable distance between the two airports — Clark is approximately some 100 kilometers from Metro Manila — large and progressive cities all over the world employ a multiple airport strategy, such as Tokyo and New York, among others.
He added the airport would address the long-term population and economic growth of Metro Manila and Luzon provinces given the limited expansion of the Ninoy Aquino International Airport
No guarantee
“There is no indication of such certification (as urgent of the bill creating Bulacan ecozone)…(the President) merely wants these things to be sharpened. An approval of this law might result in a delay of its implementation because it might be challenged,” said press secretary Trixie Cruz-Angeles, adding Marcos is not against the law and fully supports the creation of the Bulacan airport, and its special economic zone.
She said Marcos just wants the law “sharpened” and include the necessary audit provisions for the Commission on Audit ; the procedures for expropriating lands that had been awarded to Agrarian Reform beneficiaries; and a master plan with metes and bounds of the full scope of the economic zone.
“It (also) needs to address why there is a rule-making power given to the economic zone to this particular economic zone for environmental issues for environmental concerns. This has not been given to other economic zones. It also seems to include some provisions that might be contrary to some technical operations in relation to transportation laws. And there needs to be a rationalization, first, or a justification that the zone…will be nationally significant. Meaning, it provides benefits to the whole nation and not just to the locality, and that it does not narrow our tax base,” she added.
Policy continuity
For Arsenio Balisacan, National Economic and Development Authority (NEDA) director general, the veto shows policy continuity, as it is consistent with the direction that has been set of a more transparent incentives system.
Balisacan also assured the move will not deter or discourage foreign investors, adding the country has sent the “signal that we want a more transparent incentives system when we passed the CREATE law.”
“(Marcos’ veto move) That’s not uncertainty. I think it will create more uncertainty if you have passed that law, implementing it and then you’re doing something else to undermine it. That is what the business community are so concerned about,” he added.
View from Clark
Clark Development Corp. (CDC) in a statement said the decision of Marcos to interpose his veto on House Bill 7575 emphasizes the significant role of Clark Special Economic Zone in being at the center of economic development, not only to Central Luzon but to the rest of the country.
Manuel Gaerlan, CDC president, said the decision is a “big boost to our marketing efforts and our goals of attracting investments in Clark.
“ God bless this administration for not succumbing to pressures from the proponents of the Bulacan City Special Economic and Freeport,” Gaerlan said.
Meanwhile, Clark International Airport Corp. (CIAC) said the country’s aviation sector is expected to improve to global standards with the appointment of Jaime Bautista, former president of the country’s flagship Philippine Airlines, as the new transportation chief.
CIAC said in a statement it looks forward to working under Bautista’s leadership to develop Clark as a premiere aerotropolis and hub for aviation and international logistics in the Asia-Pacific region. – With J. Montemayor and A. Celis
