[2][3] The SBMA has played a significant part in the development of the Subic Special Economic and Freeport Zone into a self-sustainable area that promotes the industrial, commercial, investment, and financial areas of trade in the zone as well as in the Philippines itself.

Naval Base Subic Bay, parts of Redondo peninsula where the Subic Hanjin shipyard is located, and erstwhile US defence accommodations in the hills consisting of Binictican and Kalayan housing areas.

7227 created the Subic Bay Metropolitan Authority (SBMA) to develop and manage the Freeport which provides tax and duty-free privileges and incentives to business locators in the special economic zone.

[citation needed] Richard Gordon, then the mayor of the City of Olongapo, became the first SBMA chairman.

By that time, the emerging investment haven had already successfully attracted companies such as Federal Express, Enron, Coastal Petroleum (now part of Kinder Morgan), Taiwan computer giant Acer and France telecoms company Thomson SA to establish operations in the freeport.