Investors’ shifting needs drive upgrades in industrial real estate

Industrial property developers are expanding their land holdings and upgrading facilities to meet the evolving requirements of local and foreign investors, according to industry executives.

“We recognize the importance of staying competitive in terms of infrastructure and capacity, hence we continuously invest in modernizing our facilities, expanding our footprint, and applying efficient, space-maximizing design principles to optimize land use,” Damosa Land, Inc. (DLI) President Ricardo F. Lagdameo said.

“We provide a range of options — from ready-built facilities (RBFs) and warehouses that enable companies to quickly begin operations, to industrial lots for lease or sale for those who wish to construct purpose-built facilities,” Mr. Lagdameo also said.

“This dual offering allows investors to jumpstart their activities in RBFs while their custom facilities are being built, significantly reducing time-to-market.”

The company is also exploring opportunities for horizontal and vertical developments to address the changing needs of its locators, he added.

DLI operates Anflo Industrial Estate (AIE), a 63-hectare special economic zone in Panabo City, Davao del Norte, which hosts 24 locators from six countries.

The Philippines risks missing out on opportunities to attract industrial investments due to limited and aging inventory, according to real estate services and investment firm CBRE.

Industrial property developers said global investors are now seeking strategic hubs that support long-term growth.

“Today, it’s no longer enough to simply offer land or build traditional industrial estates. What global investors need is certainty, scalability, and speed to market,” said Aboitiz InfraCapital, Inc. (AIC), the infrastructure arm of the Aboitiz group.

To meet growing demand, AIC said it has been expanding its industrial landbank annually.

“We continuously open new inventory year after year to meet growing demand, backed by a total landbank of nearly 2,000 hectares of industrial land. This gives locators the ability to scale confidently over time, knowing the space and support will be there as they grow,” it said.

AIC currently offers over 60 hectares of available industrial inventory across its four economic estates: LIMA Estate in Batangas, TARI Estate in Tarlac, and the West Cebu Estate and Mactan Economic Zone 2 Estate in Cebu.

Lot sizes range from two to four hectares and are expandable depending on locator requirements, AIC said.

Tarlac-based Victoria Industrial Park (VIP) has focused on providing fully developed industrial lots with modern infrastructure rather than pre-built warehouses, according to Chief Executive Officer Melissa Yeung-Yap.

“This design philosophy empowers companies to build facilities precisely tailored to their specific operational requirements and international standards from the ground up,” she said.

The masterplan for the 30-hectare VIP, which opened in May, also prioritizes efficient internal flow, disaster resilience, and future expansions, Ms. Yeung-Yap said.

“This proactive approach ensures that businesses can scale operations seamlessly as they grow, and their facilities remain relevant and efficient for decades to come, mitigating the challenges posed by limited space and outdated infrastructure,” she added.

Sustainability has also become a key consideration among global locators, developers said.

“Our flexible space solutions — including RBFs, warehouses, and industrial lots for lease or sale — allow companies to start operations quickly, reducing construction waste and promoting efficient land use,” Mr. Lagdameo said.

AIE has adopted modular and space-efficient designs, as well as sustainable features such as LED lighting, rainwater harvesting systems, and solar-ready infrastructure.

All of AIC’s operating estates have received a 5-Star BERDE (Building for Ecologically Responsive Design Excellence) Certification, the highest rating from the Philippine Green Building Council.

To support sustainability goals, AIC estates also offer renewable energy integration, real-time energy and water monitoring systems, efficient waste management, and green mobility infrastructure, the company said.

“Our investments in smart utilities and resilient infrastructure are designed not only for today’s requirements but to meet the demands of future industries,” it added.

CBRE projects around 79,669 square meters of additional industrial space this year, with most of the upcoming supply located in Laguna, Cavite, and Batangas.

Source: Business World

PHL a top climber in trade facilitation rankings

The Philippines was among the “lead reformers” in the Asia-Pacific region on trade facilitation, the Organization for Economic Cooperation and Development (OECD) said in a report.

Trade facilitation refers to measures that streamline and simplify technical and legal procedures for products at the border.

According to the OECD’s 2025 Trade Facilitation Indicators, the Philippines scored 14.97 across 11 indicators, putting it among the “leading reformers” like Laos, Kiribati, Cambodia, Maldives, Tonga, Vanuatu, Thailand, Indonesia, Myanmar and Vietnam.

The “lead reformers” refer to countries that had the highest percentage change between their average trade facilitation performance in 2022-2024 from 2020-2022.

The Philippines ranked 15th out of 33 Asia-Pacific countries.

“Being one of the fastest nations to adopt positive reforms on trade facilitation is a welcome sign that the country is catching up with its neighboring countries,” Oikonomia Advisory and Research, Inc. economist Reinielle Matt M. Erece said.

However, Mr. Erece emphasized that the Philippines must cut red tape and embrace digital integration to sustain its progress.

“Improvements in these areas will ensure faster trade activity while improving security and transparency on the borders,” he added.

The leading performers in the region in 2024 were Hong Kong, Japan, Singapore, South Korea, Australia; New Zealand, China, Malaysia, Thailand, and India, the OECD said.

Overall, South Korea was the best performer in the Asia-Pacific region with a 20.83 score, while the Federal States of Micronesia was last with a 3.41 score.

The OECD said nearly one in two economies in the Asia-Pacific improved their performance in areas of domestic border agency co-operation and information availability.

“The report shows that border bottlenecks and red tape, as measured by the OECD, were reduced on average by 3%-7% since 2022 across the 163 countries and regions covered,” it said.

The OECD also added that this resulted in trade facilitation reforms that reduced trade costs by up to 5% over the last decade.

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Source: Business World

Investor sentiment likely to improve as Philippines is removed from ‘gray list’

The Philippines’ exit from the Financial Action Task Force’s (FATF) “gray list” is seen to improve investor sentiment, but analysts noted that continued reforms are necessary to sustain progress.

The FATF on Friday removed the Philippines from its list of jurisdictions under increased monitoring for “dirty money” following a “successful” on-site visit.

BSP Governor Eli M. Remolona, Jr. said in a text message that the Philippines’ removal from the FATF’s gray list will “help our overseas Filipino workers (OFWs) and foster more investment in our economy.”

“It also complements our ongoing efforts to make the financial system a stronger driver of sustainable growth,” he added.

Mr. Remolona attended the FATF Plenary and Working Group Meetings that took place in Paris, France from Feb. 17 to Feb. 21.

“Indeed, the Philippines came out of our gray list. They showed our members that they have completed in full the action plan,” FATF President Elisa de Anda Madrazo said at a press conference late on Friday.

The Philippines was on the FATF’s gray list for over three years or since June 2021.

The dirty money watchdog noted the Philippines’ “positive progress in addressing the strategic anti-money laundering and countering the financing of terrorism and proliferation financing (AML/CFT/CPF) deficiencies previously identified during their mutual evaluations.”

“The Philippines has completed their Action Plan to resolve the identified strategic deficiencies within agreed timeframes and will no longer be subject to the FATF’s increased monitoring process,” it said.

Finance Secretary Ralph G. Recto said in a statement that the removal of the Philippines from the gray list is a “seal of good housekeeping that strengthens public confidence in our financial system.”

“By upholding the highest standards of financial governance, we will attract more foreign direct investments and expand more trade partnerships that will help accelerate economic growth,” he said.

This would also support the government’s push to achieve an A-credit rating, Mr. Recto added.

The Anti-Money Laundering Council (AMLC) said the exit from the gray list will “facilitate faster and lower-cost cross-border transactions, reduce compliance barriers, and enhance financial transparency.”

Being part of the gray list for the past years has been a “burdensome process for banks and other financial institutions,” AMLC said.

“This process discourages correspondent banking relationships and international financial flows into the country. The exit will reduce international fund transfer requirements, benefiting Filipino individuals and businesses.”

The AMLC also said that the gray list status had hindered other countries from doing business with the Philippines.

“Moreover, even prior to the gray-listing, some foreign regulators were already imposing stringent requirements or fines on financial institutions dealing with entities in the Philippines and other countries deemed to have weak anti-dirty money regimes.”

“This prompted some banks to just avoid doing business with entities in those countries rather than managing possible money laundering or terrorist financing risks. The FATF decision may prompt foreign banks to review and resume their business relationship and transactions with Philippine financial entities.”

President Ferdinand R. Marcos, Jr. last year directed all concerned agencies to work on efforts to exit the list by October.

In July, Malacañang issued an executive order mandating all government offices to adopt the National Anti-Money Laundering, Counter-Terrorism Financing, and Counter-Proliferation Financing Strategy 2023-2027.

“With our exit from the FATF gray list, we are optimistic that the international community will see the Philippines as an even more attractive destination for business and investment,” Securities and Exchange Commission (SEC) Chairperson Emilio B. Aquino said.

Chester B. Cabalza, founding president of Manila-based International Development and Security Cooperation, said that this is a “celebratory moment” for the country.

“As an aspiring upper middle-income country, such transformation will give it more credibility as an investment destination in the region without fear that our financial buoyancy comes from dirty money,” he said.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said this would increase investor confidence in the Philippines.

“The Philippines would save more processing time and also save on transaction costs, a more desirable scenario if transactions of the country with the rest of the world move with greater ease,” he added.

FATF’s Ms. Madrazo had also noted the Philippines’ efforts “in combating the risk of dirty money running through the casinos.”

The Philippine Amusement and Gaming Corp. (PAGCOR) said it will continue to strengthen regulations and strictly monitor the local gaming industry.

“We also commit to sustain the fight against money laundering and terrorist financing in the entire Philippine gaming industry, including our online gaming operators, land-based casinos and junket operators,” PAGCOR Chairman and Chief Executive Officer Alejandro H. Tengco said.

MOVING FORWARD

However, the FATF said it will be crucial for the Philippines to sustain the measures on strengthening AML/CFT regimes.

“The FATF encourages the Philippines to continue its work in ensuring that its CFT measures are appropriately applied, particularly the identification and prosecution of TF cases, and are neither discouraging nor disrupting legitimate nonprofit organization activity,” it said.

Ms. Madrazo also said the Philippines will face a new assessment in 2027.

“That will be an opportunity for the FATF to verify that the measures are sustained and still in place,” she added.

For its part, the AMLC said that it is committed to “ensuring long-term compliance with international standards.”

Bienvenido S. Oplas, Jr., president of a research consultancy and of the Minimal Government Thinkers think tank, said the Philippines should continue to clamp down on illegal trade, which is a channel for dirty money.

“Illicit trade in tobacco, oil, jewelries, etc., this is a big source of money laundering. The government should crack them down,” he said.

Leonardo A. Lanzona, an economics professor at the Ateneo de Manila University, said the government must accompany reforms with other measures to better attract investments.

“While exiting the FATF gray list removes a major barrier to investments, the Philippines must compete on its strengths, such as its young workforce, service-driven economy, and tourism potential,” he said.

“Regional competitors are also aggressively courting investors, so policy consistency, infrastructure upgrades, and targeted investment promotions will be critical,” he added.

SAFEGUARDS SOUGHT

Meanwhile, Jose Enrique “Sonny” A. Africa, executive director at think tank IBON Foundation, said there needs to be “stronger safeguards to mitigate the heightened risk of continued erosion of civic and democratic space.”

“The FATF itself nominally calls for a targeted risk-based approach — the government should be challenged to uphold the spirit of this with transparent data-driven risk assessments and with sanctions governed by due process with clear judicial oversight,” Mr. Africa said.

The FATF in its statement said that the Philippines’ continued measures should not impede on legitimate nonprofit activities.

“Executive misapplication has already been checked with so-called terrorist financing cases motu proprio dismissed for insufficiency of evidence and no probable cause at least thrice by the courts,” Mr. Africa said.

He said that the government should “stop using AML/CFT as political tools to suppress activism and use them against actual financial crimes.”

“It should stop freezing assets of NGOs and individual activists with trumped-up terrorism financing accusations and redirect enforcement towards systemic financial crimes including those committed by politically connected individuals.”

In 2002, the FATF blacklisted the Philippines for having no legal anti-money laundering framework. It was removed from the blacklist a year later after the passage of the Anti-Money Laundering Act.

Source: Business World