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San Miguel Corp. is keeping its fingers crossed that its proposed economic zone in Bulacan will still be realized, citing its potential benefits to the economy
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SMC president and CEO Ramon Ang says if all issues raised by President Marcos in vetoing the project could be addressed, and recognizing that the ecozone is primarily for the benefit of the country and Filipinos, its full potential could still be realized
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The government stands to reap more than US$200 billion in export revenues annually from potential investments in the airport ecozone, as well as trillions of pesos in tax revenues from the ecozone and the airport, SMC says
San Miguel Corp. (SMC) remains positive its proposed economic zone in Bulacan, where its P740-billion New Manila International Airport (NMIA) project would be built, will still be realized, citing its potential economic benefits to the country.
SMC president and chief executive Ramon Ang said the conglomerate “respects and abides by the government’s decision” to veto House Bill 7575, which proposes the establishment of the Bulacan Airport City Special Economic Zone and Freeport.
President Ferdinand Marcos Jr., on his first day in office on July 1, vetoed HB 7575, which also calls for the creation of the Bulacan Airport City Special Economic Zone and Freeport Authority (BACSEZFA).
BACSEZFA would have had jurisdiction over SMC’s NMIA, located on a 2,500-hectare property in Bulakan, Bulacan. An airport city will also be constructed beside the airport. The project broke ground in October 2020 and the first phase of construction began in March 2022.
Marcos’ veto of the bill does not affect the concession agreement for NMIA, which was signed by the Department of Transportation and SMC in September 2019.
Marcos, who released his July 1 veto letter on July 3, said he “cannot support the bill considering the provisions that pose fiscal risks to the country and its infringement on or conflict with other agencies’ mandates and authorities.”
Ang, in a statement issued on July 4, maintained a positive outlook about the decision. He said if all the issues raised in the President’s veto could be addressed, and recognizing that the primary intent of the ecozone is to benefit the country and Filipinos, its full potential could still be realized.
The SMC chief said the government stands to reap US$200 billion or more in export revenues annually from potential foreign investors from the aviation, manufacturing, technology, education, healthcare, and tourism industries, if the vision for the Bulacan Airport economic zone is realized.
He added that the SMC Bulacan Airport economic zone, if approved, would be managed by the Philippine government.
As such, any tax incentives to be given to investors would still have to pass the Department of Finance Fiscal Incentives Review Board (FIRB)’s scrutiny and approval process to ensure these are aligned with Republic Act No. 11534, or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
“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,” Ang said.
“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. We estimate these industries alone will add some US$200 billion in annual exports – a big boost to our GDP,” Ang said.
He expressed his firm belief that the long-term benefits of the ecozone to the country would far outweigh and outnumber any supposed “losses” due to the grant of incentives to potential investors.
He said these benefits include hundreds of thousands of new jobs to be generated. The transfer of knowledge and technology from foreign investors and locators, as well as access to world-class education and healthcare opportunities and services – industries the ecozone also looks to attract – would also be invaluable.
“These are on top of the trillions of pesos in tax revenues that will accrue to the government for the entire lifetime of the ecozone and airport, coming from the various industries and institutions that will set up facilities and operations there to take advantage of the low cost of logistics, incentives, and our country’s primary asset: a high-quality workforce,” Ang said.
Ang also addressed the issue of NMIA’s proximity and likely competition with Clark International Airport (CRK) in Angeles City, Pampanga.
Ang said that apart from the considerable distance between the two airports – Clark is some 100 kilometers from Metro Manila – large and progressive cities all over the world have a multiple airport strategy, such as Tokyo and New York, among others.
Anticipating the long-term population and economic growth of Metro Manila and Luzon provinces in the next 20-30 years, and considering the limited room for expansion of the Ninoy Aquino International Airport (NAIA), Ang said the country would need several airports to serve Filipinos, tourists, and industries efficiently.
“What we don’t want is to repeat the mistakes of the past where we were not quick enough to develop new infrastructure, giving rise to overcapacity and congestion on our aging roads, ports, and other facilities, and even in our skies,” Ang said.
“Temporary fixes will not do anymore. We are building for the future, with a clear vision of a fully developed and progressive, prosperous Philippines.”
Ang said that regardless of the outcome of any further government review or action on the proposed ecozone, SMC remains fully committed to building NMIA.
In a statement on July 3, Press Secretary Rose Beatrix Cruz-Angeles said Marcos fully supports the creation of the Bulacan Airport economic zone and his decision to veto House Bill 7575 was meant to cure the defects found in the measure.
The Philippine Economic Zone Authority (PEZA), meanwhile, encouraged SMC to register its Bulacan Airport City as an economic zone under PEZA.
Senator Joel Villanueva said the Senate will “study refiling this bill, and even consider other possible proposals such as strengthening the PEZA law.”
Albay 2nd District Representative Joey Salceda, in a separate statement, said he will refile an amended version of the bill, taking into consideration points raised by Marcos in his veto letter.
