Subic Bay Freeport Zone (SBF) which is known simply as Subic Bay is the Philippines' first successful military base conversion through volunteerism into a a tax and duty free zone like Hong Kong or Singapore operated and managed by the Subic Bay Metropolitan Authority or SBMA. It covers the fenced area of the former U.S. Naval Base Subic Bay located in the southwest of Luzon Island in the Philippines and Olongapo City, the municipalities of Subic in Zambales and Hermosa and Morong in Bataan in concurrence of their Sangguniang Bayan pursuant to Section 12 of RA 7227. The harbor is located by Olongapo City facing the Zambales Mountain Range in the west and the Subic Bay opening up to the South China Sea. It is northwest of the Bataan Peninsula and southwest of the Zambales Province. SBF is 110 kilometers north of Manila. Manila Bay and the Bataan Peninsula separate SBF from Manila. The mountain ranges around the Subic Bay area and the deep natural harbor provide excellent and protected anchorage. In addition, these features make SBF naturally sheltered from typhoons as well as from the effects of the eruption of Mt. Pinatubo.Subic Bay Freeport is in Region III or the Central Luzon Region. It is one of the points in the growth triangle and is an engine for economic development in the region. SBF is a supplier of services and products for the Central Luzon Development Program, a regional growth area composed of the provinces of Bulacan, Nueva Ecija, Tarlac, Pampanga, Bataan, and Zambales.
Subic Bay, the Philippines' first free port, continues to be one of the country's major economic engines with more 700 investment projects, including the 4th largest shipbuilding facility in the world (Hanjin Heavy Industries and Construction (HHIC)). Currently upgrading its port facilities through the Subic Bay Port Development Project and forging ties with the Clark Special Economic Zone in Pampanga to form the Subic-Clark Corridor via the 45-kilometer Subic-Clark Toll Road, these once bastions of western military might are now being positioned to become the most competitive international service and logistics center in Southeast Asia.
As a destination, Subic Bay has maintained its allure that once charmed US servicemen and their families. Its community continues to preserve and protect the bay, its surrounding forests and its flora and fauna. Interesting sights to see are its resident eco-tourism theme parks, the Ocean Adventure, the country's only open-sea marine park, Zoobic Safari, and the Pamulaklakin Nature Park which is home to the indigenous Aetas who once trained the U.S. Navy jungle survival tactics.