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The business community inside the Subic Bay Freeport is once again shrouded in a cloud of confusion as the Subic Bay Metropolitan Authority (SBMA) plans to enforce a mandatory Government Service Insurance System (GSIS) requirement for leased properties.

It’s a drastic measure that has caused many locators and investors to contemplate its implications, prompting them to ask for answers from the SBMA officials, especially from its head, Chair and Administrator Jonathan Tan.

The freeport is a thriving business landscape, and suddenly enforcing a policy on leased properties in the middle of the game has far-reaching implications.

The SBMA might find it rationale to impose the GSIS insurance requirement for leased properties and can even argue that its intention is to safeguard the interests of both locators and the SBMA.

Generally speaking, insurance on leased properties is considered a safety net, offering financial protection in case of unforeseen events such as damage, accidents, or natural disasters.

But the skepticism and objection raised by the concerned locators emanate from various factors, which we can also consider valid.

Uneasiness

First, the abrupt introduction of this policy, along with the inevitable financial burden it may impose, especially on small and medium-sized businesses, has caused uneasiness.

Does this policy run counter to the banner campaign of the new administration, which is to ensure the ease of doing business inside the freeport?

Second, the locators are still bewildered when it comes to the complexity of managing and administering the insurance, including the beneficiary, which is the SBMA as the administering agency.

What the locators want right now is for the SBMA to explain this policy broadly and find a middle ground to ensure the protection of businesses in the freeport.

Although there has been an initial public hearing held to discuss this, the locators must be given a better avenue to voice their concerns.

The SBMA must let the business community, which is the heart of this economic zone, know that its concerns are not being taken lightly. FREEPORT INSIDER