Better mobility with the right parking policies

The conventional wisdom is that parking is a public good and that more vehicle parking benefits everyone. Not true. In this column, we explain why parking policy needs to be part of the toolkit of national and local officials. Free or low-cost car parking in urban areas is a magnet for motor vehicle use in already congested city streets — increasing traffic, worsening air and noise pollution, adding to carbon emissions and raising local temperatures. For the benefit of future generations of Filipinos, we should put in place four key measures related to motor vehicle parking.

Proof of private parking space

Today, tempering the demand for motor vehicle ownership is one of the ways we can address increasing road congestion. One way to reduce the demand for motor vehicle ownership is to require each motor vehicle owner to submit proof of a private parking space. While this will limit vehicle ownership to those with the means to have a private parking space, it is also one way to control illegal parking in urban areas.

In countries like Japan and Korea, the requirement for a private parking space is implemented by local governments that prepare and maintain a detailed inventory of all private parking spaces in a locality, recording each on a map with a specific identification code assigned to each space. Each motor vehicle is associated with a specific private parking space on the map, which may be assigned to only one vehicle.

Removal of parking minimums

Except for mandatory motor vehicle parking spaces for persons with disability, property developers and builders should have the discretion to determine the appropriate number of motor vehicle parking spaces appropriate for their locality and type of building.

However, this is not the case today. The implementing rules and regulations (IRR) of the National Building Code (Presidential Decree 1096 enacted in 1977) require, for example, that:

– Shopping centers should provide one parking slot per 100 sqm of shopping area.

– Restaurants, bars and fast-food outlets should provide one parking slot per 20 sqm of customer area.

– Places of worship and funeral parlors should provide one parking slot per 50 sqm of floor area.

These parking space requirements in the IRR of the National Building Code are called “parking minimums.”

Unfortunately, minimum parking requirements lead to many undesirable and harmful impacts that outweigh intended benefits, especially in a country where only six percent of households are car owners. A major negative impact is that parking minimums increase the cost of goods and services for everyone, especially the cost of housing.

Because developers need to reserve space to satisfy parking requirements, building costs naturally increase making housing less affordable. Parking spaces consume valuable floor area and can add 20 percent or more to the cost of a building. This additional cost could be shaved from housing prices; floor area currently devoted to parking could be converted into new residential or commercial space.

In commercial establishments, markets and shopping malls, the extra cost of the required parking spaces are compensated by charging higher rents; higher rents are, in turn, recovered through higher prices of goods and services. While the availability of parking benefits the small minority of Filipinos with motor vehicles, the general public ends up paying the tab for such facilities, whether or not they use cars. This is akin to a subsidy provided to the most affluent six percent of Filipinos financed by a “tax” on the entire population (the 94 percent who are not car owners).

‘Just right’ on-street parking rates

The late Donald Shoup, the author of “The High Cost of Free Parking,” said on-street parking should not be free or priced too cheaply. When parking is perceived to be free or almost free, drivers spend an inordinate amount of time cruising around to find a parking space. Shoup said on-street parking should be priced high enough and on an hourly basis — at a level that results in an enough turnover to leave an average of one or two spaces empty per street block during business hours. This “Goldilocks” approach thereby brings more customers to local businesses. Shoup also suggested that part of the revenues collected should directly benefit the streets and neighborhoods where the parking fees are collected; they can be spent on things like sidewalk improvement, shade trees, street lighting, better signage and CCTV cameras.

A parking levy for public transport

A parking levy on non-residential parking spaces in urban areas collected in the same way as the real property tax can provide a sustainable stream of revenue that is progressive and provides the right incentives. Moreover, a parking levy is one way for society to be compensated for the negative impacts associated with the availability of private non-residential parking spaces. Revenues generated from the parking levy can be earmarked to finance improved public transportation and better infrastructure for walking and cycling, making our cities more livable and sustainable.

The proposed revenue collection method is also straightforward. In every LGU, property owners would be required to declare the number of non-residential parking spaces that each person or entity maintains. The parking levy could then be collected by the LGU in the same way it collects real property taxes. There is also the option for revenues to be shared between the national government and the concerned local government unit. The additional revenues, if earmarked for public transport and active transport, will give local governments the confidence to assume greater responsibility for transportation and mobility outcomes in their localities.

The potential revenue from a parking levy can be substantial. Think of the number of non-residential car parking spaces you find in office buildings, shopping malls, commercial parking lots plus those in front of shops, restaurants and banks. My rough estimate is that there are at least two million private non-residential parking spaces in just the Greater Manila Area (Metro Manila plus surrounding provinces); if a parking levy of P100 were charged for each per day (whether the space is used or not), the revenue collected just for Greater Manila would amount to about P73 billion per year. This could help finance a continuing subsidy for urban public transport and mass transit.

The above parking policy reforms will deliver substantial improvements in our mobility environment without significant cost. They could be important legacies of the Marcos administration. The most important ingredient though is political will.

Source: Manila Times

Negros reunited

The Visayas’ new frontier for renewables, warehousing, and BPO

Negros Island is rewriting its economic story. Once known as the country’s sugar bowl, the newly reestablished Negros Island Region (NIR) is emerging as the Visayas’ renewable energy capital, capturing nearly half of all approved investments in the second quarter (Q2) of 2024.

For decades, residents of Negros Occidental and Negros Oriental were compelled to travel to Iloilo or Cebu for regional government services due to the island’s segregation between Western and Central Visayas. To address this, President Ferdinand R. Marcos, Jr. in 2024 officially reestablished the NIR and fulfilling a long-standing aspiration of Negrenses.

Unlike previous executive attempts, RA 12000 provides a stronger legal and administrative framework, enabling full decentralization of government functions and streamlined inter-agency coordination across Negros Island and Siquijor. The unified regional administration is designed to accelerate investment, stimulate economic growth, and enhance regional competitiveness by harnessing the island’s full potential.

Prior to the creation of the Negros Island Region, Negros Occidental residents were included in Western Visayas, while Negros Oriental and Siquijor residents were included in Central Visayas. In the 2024 census, the exclusion of these provinces resulted in a notable population decline in Central Visayas (-3.9%) and Western Visayas (-1.8%), impacting on the regional demographic profiles and planning considerations.

Beyond the political symbolism, the impact is already visible on the ground. From billion-peso solar farms and biomass facilities fueling the energy grid, to Bacolod’s growing role as a logistics and outsourcing hub, Negros is positioning itself as one of the most dynamic growth centers in the Visayas. This is a clear shift that signals both opportunity and challenge for investors.

AGRICULTURE POWERS NIR’S TRANSITION INTO A DYNAMIC AGRO-INDUSTRIAL AND RENEWABLE ENERGY POWERHOUSE

NIR’s strong agricultural base makes it a hub for agribusiness and value-added industries, fueling demand for logistics and infrastructure expansion. In 2024, the Agriculture, Forestry, and Fishing (AFF) sector generated P83.39 billion, ranking second in the Visayas. Negros Occidental, known as the “Sugar bowl of the Philippines,” also accounts for more than half of national sugar production, supported by 13 sugar mills and six refineries, including Victorias Milling the largest integrated mill and refinery in the country.

Sugar by-products, particularly bagasse and cane trash, have become critical inputs for renewable energy. Biomass facilities now form a cornerstone of the island’s power mix, contributing to the fact that 99.1% of Negros Occidental’s electricity production comes from renewable sources.

The clean energy transition has also reshaped the investment landscape. In Q2 2024, NIR secured P86.5 billion in approved foreign investments, equivalent to 45.6% of the national total, with the bulk directed toward renewable energy. Furthermore, other key projects include AboitizPower’s 173-MWp Calatrava solar farm, Citicore’s 100-MWp Silay facility, and the P6.9-billion Bacolod-Bago solar plant (150 MWp) slated for completion in 2025. In total, more than 1,000 MW of renewable capacity is in the Department of Energy (DoE) pipeline for Negros.

COST COMPETITIVENESS AND NEW INFRASTRUCTURE FUEL BACOLOD’S WAREHOUSING GROWTH

Building on this agricultural and green foundation, the NIR is also seeing steady growth in industrial and logistics activity, particularly in Bacolod City. Demand is driven by its proximity to ports, airports, and major urban centers. Most occupiers are engaged in logistics, distribution, and personal storage, with rising interest from FMCG firms targeting the local consumer market.

At the heart of this activity is the Bacolod Real Estate Development Corp. (BREDCO) port, which serves as the city’s logistics backbone and is evolving into a warehousing hub, with facilities ranging from 1,700 to 5,000 sq.m. While flooding challenges persist within the port area, adjacent sites offer room for expansion that supports sustained growth.

The Negros Island Region accounted for 61% of total shipcalls in the Visayas, underscoring its pivotal role in regional maritime activity. Within the region, Panay/Guimaras recorded 91,337 shipcalls, significantly higher than Cebu’s 39,576, and among the highest compared to major ports in Luzon and Mindanao. In terms of cargo movement, the region handled 37% of the Visayas’ total volume, with Panay/Guimaras emerging as the top contributor in the NIR and the second highest across the Visayas.

The reestablishment of the Negros Island Region presents an opportunity to strengthen logistics and inter-island connectivity, particularly as Negros Occidental accounts for most of the country’s sugarcane output. However, the region’s dependence on sugar leaves it vulnerable to climate risks and price volatility. Thus, the diversification to other industries and services as mentioned above is crucial in sustaining the growth of NIR.

Bacolod also enjoys a cost advantage. Warehouse rental rates range from P150-250 per sq.m. per month, at par with Iloilo and below Cebu’s P185-300, giving the city a competitive edge for occupiers. Looking ahead, strategic infrastructure projects such as the Bacolod–Negros Occidental Economic Highway, the New Dumaguete Airport in Bacong, and the Panay–Guimaras–Negros Island Bridges are poised to enhance connectivity across key gateways. These include the established BREDCO and Dumaguete Ports as well as the Bacolod–Silay and Sibulan Airports, with the upcoming Bacong Airport expected to significantly boost trade and regional integration.

EMERGING OPPORTUNITIES POSITION BACOLOD AS THE NEXT BPO FRONTIER

Bacolod City’s office market is gaining traction, driven by the expansion of the BPO sector. Recognized as a “Center of Excellence” for IT-BPM and one of the country’s “Next Wave Cities,” the industry employs about 40% of the city’s white-collar workforce, underscoring both its reliance on outsourcing and the sector’s confidence in Bacolod as an alternative to Cebu and Metro Manila.

In the first half of 2025, Bacolod’s office occupancy dipped below 80% due to new stock in the market.  The flip-side of the market is that it gives ample room for new entrants and providing occupiers with greater leverage in negotiations. Rental rates average P500-800 per sq.m., comparable to Cebu but well below Metro Manila’s P900-1,100, making Bacolod a cost-efficient option for firms seeking scalability without compromising talent access. This is supported by a steady pipeline of over 20,000 college graduates annually and lower operating costs than in Metro Manila.

Developers are reinforcing this momentum. Megaworld’s Upper East Township delivered Bacolod’s first LEED-certified office building and, in June 2025, became the city’s first PEZA-accredited IT Park, with a second tower underway. Other major developers such as Ayala Land and Robinsons Land also have their respective mixed-use developments in the city.

While Bacolod is gaining ground, its office market will reach its potential only if key hurdles are cleared. Foremost is the difficulty local developers face in securing PEZA accreditation, which limits the supply of fiscally incentivized space that outsourcing firms prioritize when choosing sites. By contrast, Cebu hosts dozens of PEZA-accredited buildings, and Iloilo’s accredited stock is clustered in Iloilo Business Park.

NIR ADVANCES ITS POSITION AS A KEY REGIONAL GROWTH CENTER

Anchored by agriculture, fueled by renewable energy, and supported by competitive industrial and office markets, the Negros Island Region is steadily transforming into a diversified investment hub. This convergence signals its evolution from a traditional agricultural economy into a dynamic center for industry, services, and sustainable growth, firmly positioning it as one of the most promising emerging markets in the Visayas.

Source: Business World

Pinoy new year optimism hits 15-year low

Most Filipinos remain hopeful for the coming year, but pollster Social Weather Stations (SWS) noted that expectations ahead of 2025 are the lowest in 15 years.

The survey, conducted from Dec. 12 to 18, found that 90 percent of Filipinos are entering the new year with hope rather than fear.

While the number remains high, it was six points below the 96 percent obtained in a similar survey in 2023.

SWS said it was the lowest since the end of 2009, when 89 percent said they were entering the new year with hope.

In 2020, at the height of the COVID-19 pandemic, 91 percent of the survey respondents said they were entering the new year with hope.

Meanwhile, 10 percent said they are entering 2025 with fear, up by seven points from three percent in 2023. It was the highest since the 11 percent in 2009.

According to SWS, hope for the new year fell across all areas and educational attainment.

It was highest among those in balance Luzon at 92 percent (from 97 percent), followed by those in Metro Manila at 91 percent (from 97 percent), Mindanao at 89 percent (from 96 percent) and the Visayas at 87 percent (from 93 percent).

Hope for the new year was highest among college graduates at 96 percent, followed by those with some senior high school education at 93 percent (from 96 percent), junior high school graduates at 91 percent (from 96 percent), elementary graduates at 89 percent (from 97 percent) and non-elementary graduates at 83 percent (from 93 percent).

SWS said there was higher hope for the new year among those who expected a happy Christmas this year.

The survey had 2,160 adult respondents and a margin of error of plus/minus two percent.

Source: Philstar