UNIVERSAL, commercial and thrift banks increased their exposure to the real estate sector in 2009 by extending more loans, central bank data showed.
Data released on Friday showed that total exposure of these lenders to the real estate sector reached P393.6 billion as of December, up by 9.4% from the previous year.
Universal and commercial banks accounted for almost three quarters of the total, while thrift lenders accounted for the balance.
“The additional exposure came primarily from real estate loans, which rose [by 9.67% year-on-year] to P383.7 billion,” a statement from the Bangko Sentral ng Pilipinas (BSP) explained.
“Investments in [debt and equity] securities issued by real estate companies also expanded by 1% to P9.9 billion.”
Total real estate exposure as ratio of banks’ total loans excluding loans they made between themselves rose to 14.47% from 13.96% from a year ago.
But Victor J. Asuncion, director for research and consultancy at CB Richard Ellis Philippines, Inc., downplayed the figures, pointing out that while loans to the real estate sector have been growing, the rise has been tempered by other funding sources available to developers.
“Real estate developers, if they can help it, don’t want to borrow from banks anymore... because loans that have floating rates make their borrowing costs more volatile... [Bank loans] are still a part of funding sources, but no longer the primary one,” he said.
Mr. Asuncion added that property companies prefer to fund projects with equity, bonds or from pre-selling projects, and the share of bank loans as a funding source could go down with the introduction of real estate investment trusts or REIT, a company that pools funds and invests these in properties.
Central bank data also showed that real estate loans for construction and development of commercial properties accounted for nearly three-fifths of total real estate loans at P221.1 billion, while the balance was granted for the construction or improvement of residential units by individual borrowers.
Of total real estate loans granted by universal and commercial banks, 73.7% or P203.1 billion were directed to commercial projects, while the balance of P72.6 billion went to residential purposes.
Thrift banks lent out P90 billion to finance the acquisition, improvement or construction of residential units for households, and provided only P18 billion for commercial real estate loans.
Soured real estate loans rose to P23.18 billion from last year’s P22.83 billion, but as percentage of total real estate loans, slid to 6.04% in December from 6.53% a year ago because of a higher growth in loans.
In February, BSP Deputy Governor Diwa C. Guinigundo said monetary authorities may further limit banks’ exposure to the real estate sector from the current 20% of total loans as a way of controlling excessive foreign capital flows that may stoke an asset price bubble.
The deputy governor noted that the central bank had done this before when it limited banks’ exposure to the real estate industry to 20% from 30% after the Asian financial crisis in 1997.
He said that while an asset bubble is unlikely to emerge in the Philippines, this policy tool is available to the BSP in case a slower than expected recovery in developed markets prompts investors to seek higher yields in emerging economies.
Source: Businessworld Online
Monday, March 8, 2010
Saturday, March 6, 2010
Oakridge adds commercial component to business park
CEBU, Philippines - The high demand for office space in Cebu prompted the Oakridge Realty and Development Corporation (ORDC) to go full-blast in developing its three-hectare business park along A.S. Fortuna street, Banilad, in Mandaue City.
Oakridge Business Park, the location of call center giant Tele Tech, is now constructing a commercial component within the park, and eventually develop the entire three hectare property in the next two to three years.
ORDC, used to be a fully-gated business park, is now opening the facility to the community, with the commercial component called OakTree Drive.
“The OakTree Drive will complement the business park facility, offering the support products and services to initially cater the two thousand people working within the park,” said ORDC chief executive officer (CEO) Edmund Liu during the official ground breaking ceremony to start off the OakTree Drive construction.
At present, the park houses 20 tenants including the PEZA (Philippine Economic Zone Authority) registered IT Center currently occupied by Tele Tech operation in Cebu.
While it is tempting to maximize the three-hectare property with available offices and buildings, Liu said the company is committed to make the Business Park, one of Cebu’s landmarks in “green architecture.”
ORDC, is not limited to attracting BPO-related companies, but also to other industries, as aside from Tele Tech, the business park is the home of other service-oriented firms such as Basic Graphics Inc., Golden ABC Corporation, OVF Law Office, among others.
Liu hopes that the Park will attract diverse industry and service-based companies once it will construct sophisticated and modern office infrastructure, with emphasis on “green” development concept.
“The temptation to add more leasable spaces was there, but we are not losing touch of the park ambiance,” Liu said adding that providing an ample green-space within the property is the development’s priority.
The OakTree Drive will offer a total leasable space of 628 square-meters that will host food chain, coffee shops, and other food and retail businesses.
Although the building occupied by Tele Tech is the only PEZA-registered facility within the park, Liu said the company is open to convert some of the buildings to a cyber-zone registered to give way for potential BPO/IT related companies to take advantage of the fiscal perks offered PEZA.
To date, Oakridge Business Park has a total leasable area of 18,000 square meters, it boasts of an integrated road network, well-maintained building facilities, 24/7 security, a one-megawatt generator, ample parking space and easy access by public transportation.
The company is open to possibilities of developing similar infrastructure within the metropolis in the next few years, after it will maximize the business park’s total leasable space.
Source: The Freeman Cebu
Oakridge Business Park, the location of call center giant Tele Tech, is now constructing a commercial component within the park, and eventually develop the entire three hectare property in the next two to three years.
ORDC, used to be a fully-gated business park, is now opening the facility to the community, with the commercial component called OakTree Drive.
“The OakTree Drive will complement the business park facility, offering the support products and services to initially cater the two thousand people working within the park,” said ORDC chief executive officer (CEO) Edmund Liu during the official ground breaking ceremony to start off the OakTree Drive construction.
At present, the park houses 20 tenants including the PEZA (Philippine Economic Zone Authority) registered IT Center currently occupied by Tele Tech operation in Cebu.
While it is tempting to maximize the three-hectare property with available offices and buildings, Liu said the company is committed to make the Business Park, one of Cebu’s landmarks in “green architecture.”
ORDC, is not limited to attracting BPO-related companies, but also to other industries, as aside from Tele Tech, the business park is the home of other service-oriented firms such as Basic Graphics Inc., Golden ABC Corporation, OVF Law Office, among others.
Liu hopes that the Park will attract diverse industry and service-based companies once it will construct sophisticated and modern office infrastructure, with emphasis on “green” development concept.
“The temptation to add more leasable spaces was there, but we are not losing touch of the park ambiance,” Liu said adding that providing an ample green-space within the property is the development’s priority.
The OakTree Drive will offer a total leasable space of 628 square-meters that will host food chain, coffee shops, and other food and retail businesses.
Although the building occupied by Tele Tech is the only PEZA-registered facility within the park, Liu said the company is open to convert some of the buildings to a cyber-zone registered to give way for potential BPO/IT related companies to take advantage of the fiscal perks offered PEZA.
To date, Oakridge Business Park has a total leasable area of 18,000 square meters, it boasts of an integrated road network, well-maintained building facilities, 24/7 security, a one-megawatt generator, ample parking space and easy access by public transportation.
The company is open to possibilities of developing similar infrastructure within the metropolis in the next few years, after it will maximize the business park’s total leasable space.
Source: The Freeman Cebu
Thursday, March 4, 2010
The ABCs of real estate buy and sell business
MANILA, Philippines - A 12-session mentoring course in real estate buy & sell will be conducted by Urban Institute of Real Estate starting March 17, then March 24, April 7, 14, 21, 28, May 5, 19, 26, June 2, 9 and 16 from 3 to 7:30 p.m. at the Maximo Function Room, Max’s Restaurant, Glorietta 3, Makati City.
Buying and Selling real estate is a very attractive investment alternative and this course was designed for investors seeking a better return for their capital but who need more detailed knowledge on how it is correctly and safely done.
The course will cover real estate-related principles of economics; valuation of vacant lots and improvements, analyzing what causes values to go up and down; techniques in searching for bargain properties; buying techniques and frauds avoidance; techniques on improving price and marketability of real properties; financial aspect of buy and sell and its risks; legal and taxation aspects of buy and sell including legal forms and documents needed and tax computation; and many other related topics.
Main lecturer is Engr. Enrico Cruz, who has more than 40 years of experience in real estate, engineering, construction, management and education; together with Professor Atty. Rex Enrico V. Cruz III. Engr. Cruz is also a licensed real estate consultant and 1st and 8th placer in the real estate appraiser’s and broker’s board examinations respectively, and was invested as a “Real Estate Fellow” by the Philippine Council of Real Estate Educators.
Source: The Philippine Star
Buying and Selling real estate is a very attractive investment alternative and this course was designed for investors seeking a better return for their capital but who need more detailed knowledge on how it is correctly and safely done.
The course will cover real estate-related principles of economics; valuation of vacant lots and improvements, analyzing what causes values to go up and down; techniques in searching for bargain properties; buying techniques and frauds avoidance; techniques on improving price and marketability of real properties; financial aspect of buy and sell and its risks; legal and taxation aspects of buy and sell including legal forms and documents needed and tax computation; and many other related topics.
Main lecturer is Engr. Enrico Cruz, who has more than 40 years of experience in real estate, engineering, construction, management and education; together with Professor Atty. Rex Enrico V. Cruz III. Engr. Cruz is also a licensed real estate consultant and 1st and 8th placer in the real estate appraiser’s and broker’s board examinations respectively, and was invested as a “Real Estate Fellow” by the Philippine Council of Real Estate Educators.
Source: The Philippine Star
DOT steps up assessment system
CEBU, Philippines - The Department of Tourism gears up on intensifying its technical assessment system to accurately measure the tourism sector’s contribution to the Philippine economy.
“We have expanded our assessment to include a more systematic and in-depth analysis of top destinations to provide a clearer insight on the tourism movements throughout the country. Understanding these movements allows us to create strategies to further support the development of these destinations. This system also creates awareness for these places in the national level,” said Tourism secretary Ace Durano.
Top destinations are referred to as those that have at least 100,000 foreign tourists annually and have received substantial tourism-related investments.
Since its adoption in 2008, the new system has propelled several previously unknown local sites to the main tourism circuit, such as Camsur, which enjoyed a 117.25 percent growth in foreign and domestic arrivals in 2009.
The Cebuano tourism chief added that the enhanced system also aims to empower local government units (LGUs) to gather information and generate ideas for tourism development in their area.
“We have actively engaged in a campaign, with the help of Japan, to train local officers in monitoring tourism traffic in their respective destinations. Empowering them builds up their capacity to create policies and strategies to stimulate tourism and boost livelihood in their areas,” said Durano.
Since 2006, the DOT has maintained a partnership with the Japan International Cooperation Agency (JICA) for a statistical-capacity building program in the local government level.
The ongoing campaign, called the DOT-JICA Technical Cooperation Program Management (TCPM), taps more than 100 LGUs to standardize their data collection methodology which is used to analyze tourism information culled from hotels, resorts and other tourism accommodations in their areas.
According to Alan Cañizal of the Tourism Development Planning, the campaign capitalizes on the more attuned perception of locals for mining information about their sites.
“It also generates consciousness among community members, from the top to the grassroots, to manage their own destination and help promote it,” Cañizal explained.
DOT’s new documentation process has also started integrating data collected from the newly-released arrival/departure cards (A/D). Bearing more detailed information on passengers, the new A/D cards include questions on Type of Accommodation, Education/ Training, Official Mission, Religion/ Pilgrimage, Health, and Transit.
“These innovations are logical and necessary if we want to keep up with the ever- changing market trends. With this detailed breakdown and analysis of data, the tourism industry is able to respond to needs, create demand and serve our foreign and local tourists. All these lead to a more robust tourism industry which translates to more jobs for Filipinos,” Durano concluded
Source: The Freeman Cebu
“We have expanded our assessment to include a more systematic and in-depth analysis of top destinations to provide a clearer insight on the tourism movements throughout the country. Understanding these movements allows us to create strategies to further support the development of these destinations. This system also creates awareness for these places in the national level,” said Tourism secretary Ace Durano.
Top destinations are referred to as those that have at least 100,000 foreign tourists annually and have received substantial tourism-related investments.
Since its adoption in 2008, the new system has propelled several previously unknown local sites to the main tourism circuit, such as Camsur, which enjoyed a 117.25 percent growth in foreign and domestic arrivals in 2009.
The Cebuano tourism chief added that the enhanced system also aims to empower local government units (LGUs) to gather information and generate ideas for tourism development in their area.
“We have actively engaged in a campaign, with the help of Japan, to train local officers in monitoring tourism traffic in their respective destinations. Empowering them builds up their capacity to create policies and strategies to stimulate tourism and boost livelihood in their areas,” said Durano.
Since 2006, the DOT has maintained a partnership with the Japan International Cooperation Agency (JICA) for a statistical-capacity building program in the local government level.
The ongoing campaign, called the DOT-JICA Technical Cooperation Program Management (TCPM), taps more than 100 LGUs to standardize their data collection methodology which is used to analyze tourism information culled from hotels, resorts and other tourism accommodations in their areas.
According to Alan Cañizal of the Tourism Development Planning, the campaign capitalizes on the more attuned perception of locals for mining information about their sites.
“It also generates consciousness among community members, from the top to the grassroots, to manage their own destination and help promote it,” Cañizal explained.
DOT’s new documentation process has also started integrating data collected from the newly-released arrival/departure cards (A/D). Bearing more detailed information on passengers, the new A/D cards include questions on Type of Accommodation, Education/ Training, Official Mission, Religion/ Pilgrimage, Health, and Transit.
“These innovations are logical and necessary if we want to keep up with the ever- changing market trends. With this detailed breakdown and analysis of data, the tourism industry is able to respond to needs, create demand and serve our foreign and local tourists. All these lead to a more robust tourism industry which translates to more jobs for Filipinos,” Durano concluded
Source: The Freeman Cebu
2GO to expand operations this year
CEBU, Philippines - The total supply chain solutions provider under the Aboitiz Transport System (ATS), 2GO is expanding its operations this year, taking advantage of the dynamic logistic demand in the Philippines.
In an interview with Luigi Cayao, the company’s chain supply consultant, he said that the logistic brand is building a 5,000 square-meter new warehouse or equivalent to a football field this year in Metro Manila.
2GO leverages on unsurpassed local knowledge from over a hundred years of experience and a passion to consistently deliver cargo and information on time while offering simplified solutions to meet the most complex requirements.
It has total control of its network nationwide, operating its own fleet of vessels, aircraft, trucks, container vans, and other delivery vehicles that provide a reliable network of delivery channels.
Already, the company has built large warehouses in Pasig and in Taguig. Combined, these warehouse facilities have a total size of 48,686 square-meters. Last year, the Aboitiz One Distribution Inc., the company that manages 2GO opened the 22,000 pallet positions located in Taguig City.
This year, it will invest on putting up equally sophisticated warehouse, as demand for state-of-the-art storage facility and logistic service is very strong, especially for the fast moving consumer items.
2GO is the first to introduce 136 - a time-based, cost-efficient service that gives customers a time-definite service to get their parcels, documents and cargo to its destination within 1, 3 and 6 days.
Further complementing the freight services for Full Container Load (FCL), 2GO also pioneered the Road RORO Terminal System (RoRo), a superior yet simple, self-driven service that gives back the control to the customers in the movement of their goods. Customers are given priority loading, thereby enabling them to have faster delivery lead-time, reducing costs at unsurpassed speed to market levels, thus ensuring fresher products in the market.
In an earlier interview with ATS president and chief executive officer (CEO) Enrique M. Aboitiz Jr., he said that expansion for ATS has been focused on its value-added business “as we transform beyond being a shipping company to a total transport solutions enterprise.”
In order to boost its supply chain solutions services, via 2GO brand, ATS acquired Scanasia Overseas Inc., a company engaged in the business of sales, marketing, warehousing and transportation of temperature-controlled and ambient food products to its customers in the Philippines.
ATS, the transport and logistics arm of Cebu-based conglomerate Aboitiz Equity Ventures (AEV), had been actively enlarging its logistics network locally and internationally.
To complete its already vast menu of services, 2GO launched its Supply Chain Service in 2007.
With Supply Chain, 2GO handles the release of the goods from the manufacturer to the delivery of the products to trade for end consumers nationwide. The offer to customers is simple - 2GO assures product availability, which in turn translates to product growth through efficiencies brought by the strengths of the 2GO brand.
Source: The Freeman Cebu
In an interview with Luigi Cayao, the company’s chain supply consultant, he said that the logistic brand is building a 5,000 square-meter new warehouse or equivalent to a football field this year in Metro Manila.
2GO leverages on unsurpassed local knowledge from over a hundred years of experience and a passion to consistently deliver cargo and information on time while offering simplified solutions to meet the most complex requirements.
It has total control of its network nationwide, operating its own fleet of vessels, aircraft, trucks, container vans, and other delivery vehicles that provide a reliable network of delivery channels.
Already, the company has built large warehouses in Pasig and in Taguig. Combined, these warehouse facilities have a total size of 48,686 square-meters. Last year, the Aboitiz One Distribution Inc., the company that manages 2GO opened the 22,000 pallet positions located in Taguig City.
This year, it will invest on putting up equally sophisticated warehouse, as demand for state-of-the-art storage facility and logistic service is very strong, especially for the fast moving consumer items.
2GO is the first to introduce 136 - a time-based, cost-efficient service that gives customers a time-definite service to get their parcels, documents and cargo to its destination within 1, 3 and 6 days.
Further complementing the freight services for Full Container Load (FCL), 2GO also pioneered the Road RORO Terminal System (RoRo), a superior yet simple, self-driven service that gives back the control to the customers in the movement of their goods. Customers are given priority loading, thereby enabling them to have faster delivery lead-time, reducing costs at unsurpassed speed to market levels, thus ensuring fresher products in the market.
In an earlier interview with ATS president and chief executive officer (CEO) Enrique M. Aboitiz Jr., he said that expansion for ATS has been focused on its value-added business “as we transform beyond being a shipping company to a total transport solutions enterprise.”
In order to boost its supply chain solutions services, via 2GO brand, ATS acquired Scanasia Overseas Inc., a company engaged in the business of sales, marketing, warehousing and transportation of temperature-controlled and ambient food products to its customers in the Philippines.
ATS, the transport and logistics arm of Cebu-based conglomerate Aboitiz Equity Ventures (AEV), had been actively enlarging its logistics network locally and internationally.
To complete its already vast menu of services, 2GO launched its Supply Chain Service in 2007.
With Supply Chain, 2GO handles the release of the goods from the manufacturer to the delivery of the products to trade for end consumers nationwide. The offer to customers is simple - 2GO assures product availability, which in turn translates to product growth through efficiencies brought by the strengths of the 2GO brand.
Source: The Freeman Cebu
Globe Telecom sets capex at $500M
CEBU, Philippines - Telecommunication giant, Globe Telecom is allocating US$500 million capital expenditures (capex) for this year, large part of this budget will be allocated to expand its broadband business.
The Ayala-controlled company reported that US$230 million of the total capex for this year will be spent to augment its existing capacities of its broadband business, including the expansion of coverage and footprint of the Company’s DSL, WiMax, and 3G broadband services.
The company will also spend about US$170 million is also allocated for its mobile telephone business.
The 2010 capex plan also includes about US$50 million for Globe’s fixed line data networks which primarily caters to the corporate and enterprise sector.
It also includes the investment of about US$50 million in additional one-time investments. This covers costs related to Globe’s participation in the new Southeast Asia Japan Cable (SJC) System which will link Singapore, Hong Kong, Indonesia, Philippines and Japan, and which will further increase the capacity and boost the resiliency of Globe’s international network. The SJC is expected to be operational by 2012.
In 2009, Globe Telecom allocated a total of P24.7 billion capex, included carry-over spend related to the Company’s participation in the TGN-A international cable system, FOBN2 or Globe’s second fiber optic backbone network, domestic transmission loops, as well as the expansion and upgrades of the Company’s broadband and mobile networks.
As of the end of 2009, Globe increased its base stations by 22 percent to 10,333 and cell-sites by seven percent to 6,226 to support its 2G, 3G and WiMax services.
Geographical coverage of service revenues stood at 97 percent while population coverage was at 99 percent.
Total capex as a percentage of service revenues registered 40 percent compared to 2008’s 32 percent, the report indicated.
Excluding the one-time investments, mobile capex as a percentage of mobile revenues was at 13 percent, within regional benchmarks for similarly mature markets.
The company closed the year 2009 with net income after tax of P12.6 billion, 11 percent higher than 2008. Excluding foreign exchange, and mark-to-market gains and losses and non-recurring items, the Company’s core net income closed at P12 billion or two percent higher than the previous year.
Mobile revenues on the other hand, declined by four percent due to intense competition and increase preference of subscribers for value offers on the back of weak consumer economy.
However, the decline was partially offset by a 22 percent improvement in fixed line and broadband revenues on the back of robust subscriber growth in broadband, and the continued growth of the Company’s fixed line data business for the corporate sector.
Mobile revenues of the company accounted for 85 percent of total service revenues, down from 88 percent in 2008. Meanwhile, fixed line and broadband increased its share of consolidated revenues from 12 percent to 15 percent in 2009.
Source: The Freeman Cebu
The Ayala-controlled company reported that US$230 million of the total capex for this year will be spent to augment its existing capacities of its broadband business, including the expansion of coverage and footprint of the Company’s DSL, WiMax, and 3G broadband services.
The company will also spend about US$170 million is also allocated for its mobile telephone business.
The 2010 capex plan also includes about US$50 million for Globe’s fixed line data networks which primarily caters to the corporate and enterprise sector.
It also includes the investment of about US$50 million in additional one-time investments. This covers costs related to Globe’s participation in the new Southeast Asia Japan Cable (SJC) System which will link Singapore, Hong Kong, Indonesia, Philippines and Japan, and which will further increase the capacity and boost the resiliency of Globe’s international network. The SJC is expected to be operational by 2012.
In 2009, Globe Telecom allocated a total of P24.7 billion capex, included carry-over spend related to the Company’s participation in the TGN-A international cable system, FOBN2 or Globe’s second fiber optic backbone network, domestic transmission loops, as well as the expansion and upgrades of the Company’s broadband and mobile networks.
As of the end of 2009, Globe increased its base stations by 22 percent to 10,333 and cell-sites by seven percent to 6,226 to support its 2G, 3G and WiMax services.
Geographical coverage of service revenues stood at 97 percent while population coverage was at 99 percent.
Total capex as a percentage of service revenues registered 40 percent compared to 2008’s 32 percent, the report indicated.
Excluding the one-time investments, mobile capex as a percentage of mobile revenues was at 13 percent, within regional benchmarks for similarly mature markets.
The company closed the year 2009 with net income after tax of P12.6 billion, 11 percent higher than 2008. Excluding foreign exchange, and mark-to-market gains and losses and non-recurring items, the Company’s core net income closed at P12 billion or two percent higher than the previous year.
Mobile revenues on the other hand, declined by four percent due to intense competition and increase preference of subscribers for value offers on the back of weak consumer economy.
However, the decline was partially offset by a 22 percent improvement in fixed line and broadband revenues on the back of robust subscriber growth in broadband, and the continued growth of the Company’s fixed line data business for the corporate sector.
Mobile revenues of the company accounted for 85 percent of total service revenues, down from 88 percent in 2008. Meanwhile, fixed line and broadband increased its share of consolidated revenues from 12 percent to 15 percent in 2009.
Source: The Freeman Cebu
Tuesday, March 2, 2010
Cebu City now Asia's top outsourcing city - survey
MANILA, Philippines - Cebu City emerged as Asia’s top outsourcing city, overtaking Chinese cities Shanghai and Beijing, a survey from one of the global outsourcing advisory firms showed yesterday.
Data from strategic advisory firm for global outsourcing and investments Tholons ranked Cebu City as the top Asian outsourcing city, followed by Shanghai and Beijing in China. Three other Philippine cities were included in the top 18 Asian outsourcing cities: Pasig, Quezon City and Mandaluyong.
However, the survey showed that Makati City, the country’s leading business district has slipped from the survey as a good BPO destination. Tholons showed that Makati City is no longer in the list of Asian cities included in the Top 50 Global Emerging Outsourcing Countries.
“It is unfortunate that the country’s acknowledged financial capital is losing out in the BPO boom. The impact is being felt by mostly the middle class residents of Makati who would otherwise be recipients of jobs and business opportunities in BPOs, especially call centers,” Makati Vice Mayor Ernesto Mercado said.
He also noted that allied sectors like construction and real estate have also been affected.
“While we read glowing accounts of investors being bullish about the Philippines as a BPO destination, most of them are locating in other cities in Metro Manila. As a result, residents in these cities get better opportunities for employment and livelihood, as well as skills training and education,” Mercado explained.
He said the city government has not been able to match the investments poured in by neighboring cities in education and infrastructure to suit the demands of BPO firms.
He also said the city government’s business support services have deteriorated, turning off many investors including BPO firms.
“I have received unflattering reports about the way city hall has been treating our businessmen and potential investors. This has greatly contributed to the drop in the city’s overall competitiveness as a business haven,” Mercado noted.
He said Makati needs to regain its competitive edge, starting with a city government-driven campaign to address weaknesses and problems with key business services.
“Makati needs to regain its competitive edge. The private sector is looking to the city government to institute programs to attract BPO investments. Sadly, city hall does not seem to realize the urgency of the problem,” Mercado said.
Source: The Philipp;ine Star
Data from strategic advisory firm for global outsourcing and investments Tholons ranked Cebu City as the top Asian outsourcing city, followed by Shanghai and Beijing in China. Three other Philippine cities were included in the top 18 Asian outsourcing cities: Pasig, Quezon City and Mandaluyong.
However, the survey showed that Makati City, the country’s leading business district has slipped from the survey as a good BPO destination. Tholons showed that Makati City is no longer in the list of Asian cities included in the Top 50 Global Emerging Outsourcing Countries.
“It is unfortunate that the country’s acknowledged financial capital is losing out in the BPO boom. The impact is being felt by mostly the middle class residents of Makati who would otherwise be recipients of jobs and business opportunities in BPOs, especially call centers,” Makati Vice Mayor Ernesto Mercado said.
He also noted that allied sectors like construction and real estate have also been affected.
“While we read glowing accounts of investors being bullish about the Philippines as a BPO destination, most of them are locating in other cities in Metro Manila. As a result, residents in these cities get better opportunities for employment and livelihood, as well as skills training and education,” Mercado explained.
He said the city government has not been able to match the investments poured in by neighboring cities in education and infrastructure to suit the demands of BPO firms.
He also said the city government’s business support services have deteriorated, turning off many investors including BPO firms.
“I have received unflattering reports about the way city hall has been treating our businessmen and potential investors. This has greatly contributed to the drop in the city’s overall competitiveness as a business haven,” Mercado noted.
He said Makati needs to regain its competitive edge, starting with a city government-driven campaign to address weaknesses and problems with key business services.
“Makati needs to regain its competitive edge. The private sector is looking to the city government to institute programs to attract BPO investments. Sadly, city hall does not seem to realize the urgency of the problem,” Mercado said.
Source: The Philipp;ine Star
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