Easing of travel restrictions benefitting PH property market

The easing of travel restrictions, especially for foreigners, has positive impacts on the Philippine real estate market, a property advisory firm said.

Leechiu Property Consultants (LPC) chief executive officer David Leechiu said one of the positive outcomes of relaxing travel restrictions for foreigners is the comeback of Philippine offshore gaming operators (POGOs), which accelerated the growth of the office space market before the pandemic.

“With travel restrictions easing up, we anticipate POGOs to start reopening their offices and begin to grow by the second quarter of 2022,” Leechiu said in a press briefing Thursday.

The POGO sector, where workers are mostly Chinese nationals, has given up around 30 to 40 percent of the office space and a higher rate of vacancy in the residential space amid the coronavirus disease 2019 (Covid-19) pandemic.

“Right now they are in the moat of stability. But when they start expanding again, I think it depends on the rate of expansion, they could easily wipe out all these vacant spaces in the market in the next two years,” he added.

Leechiu also recalled how POGOs grew since 2016 when they are only occupying 200,000 square meters (sqm), to peaking at 1.7 million sqm. before the onset of the Covid-19 pandemic.

Leechiu said both the office and residential properties will be boosted with the return of POGOs in the country.

Aside from POGO, the easing of travel restrictions is also attracting business process outsourcing (BPO) companies to expand in the Philippines.

He added that many BPO firms, particularly newcomers, will be putting up their operations in the country. Most of these BPO companies are in the healthcare sector coming from the United States and Europe.

“I think the next administration will have to appreciate that we need more PEZA (Philippine Economic Zone Authority) zones in Manila. We continue to meet new brands, names you never heard before… who are coming to the Philippines for the first time, and they need to be in Manila,” Leechiu said.

PEZA has been pushing for the lifting of the ban on new ecozones in the National Capital Region (NCR) to encourage new investors from the BPO sector to open their operations in the Philippines.

Leechiu emphasized those BPO firms that have been in the country for a long time are already expanding in other parts of the country, bringing more jobs and economic activities outside NCR. However, new entrants in the market will have to establish their offices in Metro Manila.

Moreover, with the infrastructure projects being established by the government particularly airports, it will attract more tourists to the country and will boost the tourism market, Leechiu said.

He added that direct flights coming from abroad to provinces with key tourist destinations will encourage more foreign travelers to visit the country for leisure trips.

“I think tourism will be the biggest industry in the Philippines within 10 years. It will be larger than the BPO sector, it will be larger than the overseas remittances,” Leechiu said.

Source: PNA

PHL companies projected to raise worker salaries by 5.6% in 2022

Companies in the Philippines are expected to raise the salary of employees by an average of 5.6% next year, as the economy is seen to rebound from the coronavirus pandemic, according to a Willis Towers Watson report.

In its latest Salary Budget Planning Report, Willis Towers Watson said companies in the Philippines are looking to hike salaries of employees amid challenges hiring new workers and retaining the current workforce.

Next year’s projected pay rise of 5.6% will be higher than the 5% average salary increase actually implemented this year.

This is also above the 5.3% average salary rise projected by companies in the Asia-Pacific for 2022, while countries in Western Europe and North America expect salaries to remain flat.

Willis Towers Watson data showed Philippine firms involved in medical technology (MedTech) are seen to give the biggest average raise at 7.3% in 2022, after raising wages by an average of 5.7% this year.

Construction, property and engineering companies are projected to increase salaries by 6.2% versus 4.8% this year.

Firms involved in pharmaceutical and health services, and business support services, including business process outsourcing, are looking to hike salaries by an average of 6.1%.

On the other hand, firms in energy and natural resources are only expected to raise salaries by 4.7% in 2022, while insurance firms will increase pay by 4.8%.

“Although there is a positive outlook among businesses, companies are also monitoring the Philippine economic landscape, hence, organizations may further adjust their 2022 salary budget forecast in the later part of this year,” Rewards, Data and Software Practice Leader of Willis Towers Watson Philippines Chantal Querubin said.

Nearly half of companies in the Philippines expect their business performance to be in line with targets this year, the report showed.

Organizations are also looking to create more jobs in sales, information technology and engineering in the next 12 months, Willis Towers Watson said.

The survey also showed 65.3% of companies will keep their headcount in the next 12 months, while 25.8% are planning to add more employees and 8.9% are seeking to cut jobs.

“Companies are between a rock and a hard place when it comes to compensation planning. On the one hand, employers need to continue effectively managing fixed costs as they rebound from the pandemic. On the other hand, companies recognize they need to boost compensation, especially in sectors where there may be a manpower crunch,” Ms. Querubin said.

Foundation for Economic Freedom President Calixto V. Chikiamco said the projected pay increase is possible for some companies “which did well during the pandemic” such as those in the telecommunications, information technology companies, and food and beverage industries.

With inflation hovering near 5% with fuel and food prices expected to escalate, Mr. Chikiamco said some companies may feel compelled to give workers an increase to just keep up with inflation.

However, enterprises that were badly hurt by the pandemic “would likely be unable to increase pay, or even 13th month pay,” he added.

Willis Towers Watson conducted the survey between April and June this year, covering 1,405 companies representing a cross section of industries from 13 markets in the Asia-Pacific region. In the Philippines, 266 companies participated.

Opening of Newly Renovated Cafeteria at the Public Market

The local government of San Carlos formally opened its newly renovated cafeteria and parking/night vendors’ area at the Public Market Phase II and had it blessed on Oct. 18.

The reconstruction of the 8-unit cafeteria includes interior renovation, hallway improvement, electrical and plumbing works, parking/night vendors area, covered area, landscaping, façade restoration, food display counter, mirrors, barriers, steel countertops, chairs and tables with plastic barriers where per unit has 21 square meters.

The said renovation cost of P7,958,898.96 was taken from the capital outlay and development fund and was under the supervision of Architect Kimbie Acabal of the City Planning & Development Coordinator’s Office (CPDCO).

Public Market and Slaughterhouse Department Head Leila B. Mansueto urged the cafeteria tenants to keep their units clean all the time to make it presentable to customers. Mansueto added that she had notified the tenants that they are not allowed to use coal to avoid staining the walls.

She also said that they have more plans for the public market to make it vibrant including repainting of the interior to make it look clean and new.

The tenants pay P168 for the rent per day.

City Mayor Renato Gustilo together with 1st District Congressman Gerardo Valmayor Jr., Vice Mayor Christopher Paul Carmona and Public Market staffs were present during said event.

Source: San Carlos City, Neg. Occ. -LGU Information Page