$100M pharma proposal marks major step in CNMI diversification push

By Bryan Manabat

Saipan—A proposed pharmaceutical manufacturing facility on Saipan is touted to become one of the largest private‑sector investments in the commonwealth’s history, signaling what officials describe as a major step in the CNMI’s long‑term diversification strategy.

According to Commonwealth Economic Development Authority officials, CNMI Investments LLC, backed by Singapore’s Pacific Group, is seeking a qualifying certificate to build the CNMI’s first pharmaceutical manufacturing plant. The proposal was announced during a March 19 press conference at the governor’s office, but details about the Pacific Group are currently not available.

Frank Rabauliman, CEDA chair, said the proposed venture represents a turning point for the commonwealth after years of economic strain.

“Today marks a very pivotal point in our road to economic recovery,” he said. “After the pandemic, we saw many long‑term investments close, and for island communities like ours that rely heavily on tourism, it has been devastating. We still have not fully recovered to pre‑pandemic visitor numbers.”

He said the proposed investment “positions the CNMI as a central manufacturing, distribution and trading center for pharmaceutical products across the Pacific and into the Asian markets” and moves the commonwealth “beyond tourism and toward a more diversified, resilient economy.”

In the 1990s, the CNMI’s economy was driven by the garment industry, but allegations of labor abuse and related controversies led to the sector’s demise in 2008. The commonwealth later experimented with the scandal-ridden casino industry, which shut down at the height of the Covid-19 pandemic, leaving a multimillion-dollar facility unfinished in Garapan. Tourism, the CNMI’s remaining economic engine, has yet to recover from the pandemic-triggered slump.

Derek Sasamoto, CEDA executive director, said the company’s plan to establish a pharmaceutical manufacturing facility in Saipan could reshape the CNMI’s economic base.

He said the company views Saipan as a strategic base “to position themselves as a central manufacturing, distribution and trading hub for pharmaceutical products across the Pacific and into the Asian markets.”

The project is planned as a multi‑phase development with an initial investment of $35 million to $55 million and a total potential investment exceeding $100 million.

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In the initial phase, CNMI Investments plans to roll out non‑prescription pharmaceuticals before moving into more advanced products. Sasamoto said the phased approach allows the company to establish its manufacturing base, build up local capabilities and then expand into higher‑value, critical medications for distribution across the Pacific and Asian markets.

The proposed investment is anticipated to generate more jobs. “They’re hiring not only for manufacturing but possibly even packaging,” Sasamoto said. “They’ll need bottling, labeling and logistical services, and they’ll be looking for these things locally. So there’s opportunity.”

“In the initial phase, we’re looking upwards of about 50 [jobs] or so, eventually moving into upwards of over 100,” Sasamoto said. “But if all phases go through, I believe we’re looking at more than 150 in this one business. That’s a major shift for our workforce.”

While some positions will require specialized pharmaceutical expertise, he said the company is committed to developing local talent. “Some of the jobs will require specialized workers, so they may have to bring in people from outside,” he said. “But they are committed to hiring locally and training that workforce.

“They understand the issues, and they are committed to transition.”

Sasamoto said the pharmaceutical manufacturing proposal is part of a broader wave of interest in the CNMI’s emerging manufacturing sector. “Right now, we’re seeing in the high‑tech sector anywhere from vehicle, equipment manufacturing, food, snack, renewable energy, zero‑emission-type industries, solar panels, renewable energy production, construction and even aerospace and toy manufacturing,” he said. “It’s all there. The Marianas is prime for manufacturing, and because we’re getting the word out there, we’re seeing more interest starting to generate.”

He said the company has also committed to building local value chains and supporting small and medium enterprises. “They are committed to sourcing services and materials locally from qualified vendors as a priority,” he said. “They’re talking about programs on hygiene standards, health and wellness and good manufacturing practices.”

According to Sasamoto, CNMI Investments selected Saipan after evaluating other U.S. territories and international locations. “One of the biggest reasons they chose us was how responsive the government is. That just made all the hard work and the effort and the seven-day-a-week schedule worth it,” he said.

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CNMI Investments is seeking a qualifying certificate, the commonwealth’s primary investment‑incentive tool. Under the Investment Incentive Act, a QC allows CEDA to grant tax rebates or abatements, including reductions in net income tax, gross revenue tax, use or property taxes, to businesses that commit to building or expanding “desirable” economic activities in the CNMI.

A QC is a negotiated agreement that outlines the incentives a company receives and the obligations it must meet in return.

“In exchange for these incentives, companies have to deliver real public benefits,” Sasamoto said. “That means local hiring, training, community contributions and infrastructure support — things that directly help our people.”

The project also leverages the CNMI’s structural advantages, including Covenant‑based tax and tariff benefits, potential economic incentive districts and the ability to use the “Made in the USA” label while remaining close to Asian supply chains and customers.

“Those are powerful tools when you’re talking about export‑oriented manufacturing,” Sasamoto said.

The company’s QC application is now under CEDA’s review. Once certified complete, a 90‑day review period will begin, including a public hearing before CEDA issues its recommendation to the governor, who holds final approval authority.

Sasamoto said the agency views the proposed pharmaceutical facility as a potential anchor for long‑term economic recovery. “This is the kind of investment we’ve been working to attract: high‑quality, export‑oriented and committed to building capacity here at home,” he said. “If this moves forward, it could be a cornerstone project for the CNMI.”

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