It is the largest private provider of jobs. And it’s changing fast into more money-spinning, cutting-edge outsourcing jobs.

Some 1.071 million jobs to be exact in what has gone beyond mere call centers. Outsourcing is becoming more like tool manufacturing, made here for operations abroad, from animation to zoology. For all that, some 1.345 million more jobs are expected to open next year.

With P25 billion in export revenues now (it was just $3.4 billion in 2006), that’s at par with foreign remittance also worth P25 billion today. Remittances from abroad and local call center earnings will contribute $50 billion to the economy this year.

Although it remains heavily voice-based, call centers have exploded from a global market share of just 5 percent in 2006 to 13 percent projected for 2016, from 5.8 percent of gross domestic product in 2012 to 8 percent by 2016.

Nearly 80 percent of revenues come from North America; 9 percent from Europe and, recently, 9 percent from New Zealand. Japan generates 5 percent, a lot of it in software.

Life sciences outsourcing is a rising star. It covers a wide range of services, mostly human drug trials. Worldwide, it is valued at $596 billion by 2016 because of the growing complexities in the life sciences market, pushing companies to minimize cost and outsource in other countries, said Paul E. Tajon who heads the Infrastructure and Service Industries desk at the Board of Investments.

As early as 2010, the Philippines already had eight of the world’s top 10 life sciences companies “and we at the Department of Trade and Industry had no idea,” he said during the 2015 Philippine Innovation Summit organized by the National Academy of Science and Technology.

Still, contact (voice call) centers remain the big players, getting 60 percent of the seats in 2014, each firm employing anywhere from 5,000 to more than 20,000 Filipinos. Convergys is the biggest of them all with 60,000 agents in 22 “call centers” nationwide.

The next largest are back office operations; the fastest growing are finance and accounting and health information management.

Outbound services now cover telemarketing, advisories, sales verification, credit and collection, loyalty program benefits, reactivation/reinstatement of accounts, customer services, order entry and the like.

Inbound involve inquiries, technical, transcription complaints, customer service, support, sales, marketing and billing.

Information technology (IT) and software development – with each firm employing from 300 to over 15,000 – involves applications development and maintenance; IT operations and infrastructure; software product development; as well as business analysis, project management and education.

Back office companies, each employing 500 to 10,000 and up, provide finance and accounting services as well as human resource, legal outsourcing, business analytics, market research and analysis, procurement, publishing and other back office processes.

Creative services are smaller, with around 50 staff members each, providing 2D/3D animation; flash animation, Web design, graphics and art design; interactive game development (PC gaming and console games); and e-learning (medical and educational).

Firms in engineering services and research and development each employ about 300-plus staff doing printed circuit design, wireless devices and display technology, electronic components, CAD/CAM   and mobile applications.

Headcount-wise, 685,000 Filipinos are in voice centers, 186,000 in back offices and 86,867 in health care. Despite the potential, only 3,850 are in game development. But it’s a surprise that as much as 10,304 Filipinos are working in animation.

The next hubs: opportunities in higher value services like business analytics, health, game development, animation, knowledge process outsourcing and clinical trials.

15 to 18 Percent Yearly growth for the Call Center Industry
The call center industry now on its 14th year of phenomenal growth will continue to grow at a robust pace of 15 to 18 percent year-on-year and will still dominate the information technology-business process management (IT-BPM) sector.

Benedict Hernandez, president of the Contact Center Association of the Philippines (CCAP), said voice services account for  69 percent of the total IT-BPM  and “it’s  fair to say that over the next couple of years voice will still be majority.”

“Healthcare information management continue to grow fast, the global in-house centers are also growing fast,” Hernandez said.

The industry currently employs 700,000 or two-thirds of the over 1 million workers of the entire IT-BPM industry.

The IT-BPM sector targets 1.3 million workers by 2016 when would still grow at a fast clip of 16 to 18 percent. The contact center industry in the past has always been hitting the high side of 18 percent.

 “We are still growing despite the huge base.  Roughly we are seeing a 16 to 18 percent growth year-on-year. It’s still a high number considering the huge base,” he said

The Information Technology-Business Processing Association of the Philippines (IBPAP) is crafting a new roadmap which would plot the strategy of the industry for the next years.

IBPAP is pursuing a collaboration with industry and academe focusing on multiple areas, particularly on the development of structured internship programs that apply theoretical knowledge with practical workplace experience; faculty externship to enable teachers to experience IT-BPM workplace situations; implementation of information strategy underscoring the responsiveness of higher education to IT-BPM opportunities; and joint research and development programs for pertaining to the industry. 

Hernandez said the different university associations as well as the industry associations will create joint secretariat between the  academe and industry and will work on the curriculum, internship as well  employment to address the IT-BPM’s needs.



http://www.malaya.com.ph
​Submitted by Irma Isip / http://www.malaya.com.ph

The Philippine real estate industry, and the economy in general, are quietly moving forward despite the distracting backdrop of various politicians jockeying for position as focus on the campaign for the 2016 national polls takes center stage.

The country’s gross domestic product (GDP) grew by 5.2% during the first half of the year based on the latest Philippine Statistics Authority (PSA) data. This is below the 6%-target, and underspending by the government is the usual punching bag especially now that national elections are looming. But government spending is expected to accelerate due to the number of approved, and ongoing infrastructure projects.

Real estate developers and players are banking on more sales by the end of the year, and are planning to take advantage of the increased spending during the election season.

Wait-and-see?
For top players in  industry, wait-and-see is not the way to go. Armed with double-digit earnings, supported by liquid financial market, and incisive analysis of the different real state markets and segments, they are going for gold. The Ayala Land Group is building township projects in 25 additional cities. One of these is Alviera, a 1,100-hectare large-scale master-planned development, in Porac, Pampanga.

The Ayala Group is likewise redefining the Balitawak-Quezon City landscape and skyline with the development of an 11- hectare property. The first phase includes a two-hectare shopping complex and a 250-bed hospital specializing in cardiology and cancer due for completion in the same year. It is also developing “Vermosa”, a 700-hectare area that spans the Cities of Dasmariñas and Imus in Cavite.

Micro cities, build them and they will come
The SM Group is building “micro cities” around its shopping malls. This includes apartments, offices and hotels to maximize the value of its property holdings. At least fifteen of the SM shopping malls are on large land that can accommodate high- density and mixed-used developments. SM Group intends to pour Php 100 billion of investments in the sprawling 600-hectares Manila Bay reclamation that would turn the property into a master-planned, integrated and mixed- use community.

SM Group also plans to increase its current 52 shopping malls to 75 by 2018. Recurring income from its malls is a main source of profitability of SM Group. It almost doubled its first-half net income from Php 9.8 billion last year to Php 18.7 billion this year. Recurring income accounts for Php 11.2 billion according to a recent study.

The projects for the rest of the year include opening three more malls, 12,000 to 15,000 residential units from subsidiary SM Development Corp., the opening of Conrad Manila at the Mall of Asia Complex as well as the Park Inn by Radisson Clark in Pampanga, and the start of construction of residential projects in Chengdu, China.

Retail mall race, and townships
The Megaworld Group has been busy with its five new townships all over the country. Recently, the group announced its intention of building 20 malls in the next five year. While Megaworld has been successful with its sales, mall operation spells recurring income. Thus, the group is joining the retail mall race.

The Vista Land Group already unveiled 27 projects in the previous months that may rake in Php 20.7 billion of sales. It intends to launch more projects before the year ends at an estimated sales value of Php 15 billion. More importantly, the Group has been beefing up its AllDay and AllHome retail platforms to drive recurring income. Vista Land is also building office spaces presumably to get a slice of the BPO market.

DMCI and Rockwell Groups are also beefing up their residential projects. DMCI is allotting Php 60 billion for its 12 projects next year. Rockwell is developing a township project in Iloilo. It recently launched The Vantage at Kapitolyo in Pasig City and the East Bay Residences in Muntinlupa City.

Bullish office market
 The BPO industry is expected to generate US$ 20 billion by 2016, according to the Information Technology and Business Processing Association of the Philippines (IBPAP),  The World Bank is even estimating a total revenue of US$ 50 billion from the BPO industry by 2020, according to a September study. Major players are already talking about moving up in the value chain.

Whatever the level of growth, the BPO industry is currently filling up office buildings even with the faster pace of new supply. Pinnacle Research monitored a total take up of approximately 40,000 sqm of office space that had been filled up by BPO companies in the past three months.

Residential market on upswing
Delivery of new residential condominium units are expected for the rest of 2015. Approximately 5,500 units are expected to be completed in the major business districts. These upcoming projects include Park Terraces Tower in In Makati CBD; West Tower, Meranti Tower and Sequoia Tower in in Bonifacio Global City; and One Shangri-La Place North Tower in Ortigas Center. Real estate developers are typically motivated to turnover units for them to collect the full payment and realize their profits.

Top players are not shy with their new launches with SMDC leading the way. The SM Group launched projects such as SMDC’s Trees Residences, Grass Residences and Shore Residences 2 with a projected total of more than 9,000 units. DMCI introduced its Asteria and Ivorywood projects, while Ortigas & Company launched “The Maven”, third tower of its Capitol Commons project in Pasig. The Ayala Land Group has consistently packaged its residential projects with mixed used and township developments.

To some, these figures may appear to be high. Based on the previous Pinnacle Report, the National Economic and Development Authority (NEDA) estimated the housing need is over 800,000 per annum; of this, close to 400,000 households annually can afford to buy housing units while the remaining households are mainly from the informal settler families. The private real estate developers typically target to carve a market share from this 400,000 per annum demand for housing all over the Philippines.

The Philippine real estate industry, and the economy in general, are moving forward at a steady pace as the nation gears up for a colourful campaign leading to the national polls in May, 2016.

Real estate developers and property players are banking on more sales by the end of the year, and are planning to take advantage of increased spending as a plethora of local politicians jockey for position during the election season.

Power of recurring income
The retail market with its various platforms is aggressively being pursued by top developers, because of its power of recurring income. While residential sales are generally brisk, once a project is fully sold out, a developer would have to do it all over again for another project in a different location. Unlike a strategically located shopping mall, it would provide steady annual net income.

The SM Group has a total net income of Php 18.7 billion for the first half of the year, and almost 60% comes from recurring income. This is the power of 52 SM Stores, 41 SM Supermarkets, 43 SM Hypermarkets, 127 Savemore stores and 27 WalterMart stores.

Ayala Land Inc. (ALI) is planning to open at least five new shopping malls in the next few years in line with its goal to earn a net income of Php 40 billion by 2020. It also plans to develop the nine-hectare mixed-use complex in Parañaque City with an anchor shopping mall. The Ayala Land Group earlier secured a 45-year lease for the 9.2-hectare property from the Wenceslao group, the owner of the Aseana Business Park complex, for the project.

COSCO Capital Inc., the listed company of Puregold’s Lucio Co, recently acquired RFC mall along Alabang Zapote in Las Piñas City. RFC has a total lot area of about 7,600 sqm and a gross floor area of about 23,000 sqm. The acquisition will add to the Group’s existing 35 stores with a total GFA of 343,000 sqm. Cosco/Puregold Group is planning to open eight stores in the next three years.

The Megaworld Group is joining the race with its plan of putting up 20 malls in the next five years. The Vista Land Group is integrating its retail platforms with its housing projects.

Another player that is making its presence felt is the Cebu-based Gaisano-owned Metro Retail Stores Group, Inc. (MRSGI). It recently opened its 20th branch Luzon, located in Calamba, Laguna. The Gaisano Group has grown its hypermarket portfolio to 12 stores in just three years. In total, it has 46 stores in key cities around the Philippines.

A little bit of a flutter
Hotels with casinos are sprouting up, even with the tight regulation of the Philippine Amusement and Gaming Corporation (PAGCOR).

The Ayala Land Group plans to invest as much as Php 30 billion in the next five years to put up Seda hotels across the country. It is even considering bringing the Seda brand broad. The Ayala group currently has four Seda hotels located in Bonifacio Global City, Cagayan de Oro City, Davao City and Sta. Rosa, Laguna.

Robinsons Land Group is another veteran in hotel development. While it has foreign partners running the Crowne Plaza and Holiday Inn, it has been steadily increasing its budget hotel--- Go Hotel. At present, it is operating nine hotels and is gearing up for its 10th location, probably in Davao. The nine sites are in: Bacolod, Butuan, Dumaguete, Iloilo, EDSA-Mandaluyong, Ortigas Center, Otis-Manila, Puerto Princesa and Tacloban.

To boost hotel development, the Department of Tourism (DOT) is motivating developers by endorsing for incentives a total of over Php 12 billion worth of tourism projects with the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA). DOT identified nine hotels that will add 651 rooms to the industry.

Industrial market
The Philippine Economic Zone Authority (PEZA) has 316 operating economic zones under its supervision, hosting approximately 3,500 companies. Apart from these ecozones, the Clark Special Economic Zone (CLARK) and the Subic Bay Freeport Zone (SUBIC) have offered thousands of hectares to manufacturers in the past. In recent months, even with the sprawling CLARK and SUBIC, vacancy of industrial space is less than 200 hectares.
​
A number of foreign manufacturers have been looking for suitable industrial properties. PEZA intends to expand its Mactan Cebu International Airport (MCIA) by at least 30 hectares. The Bases Conversion and Development Authority (BCDA) intended to privatize the 200-hectare Clark Green City by way of joint venture, but the public bidding failed to enticed investors. While the government is going through its usual process of land development, supply of suitable industrial space is expected to tighten.




By The Standard | http://manilastandardtoday.com

FURTHER opening up the Philippine real estate sector to foreign investors may drive property prices higher in the residential sector, making it too expensive for locals, an official of property consultancy firm Jones Lang LaSalle (JLL) said yesterday.

​“An intended consequence of foreign investment in the residential market that I think we should be mindful of is, housing is a core utility, like healthcare and education. What you don’t want is for the housing market to become unaffordable to citizens,” Christopher Fossick, JLL managing director for Singapore and Southeast Asia, said during the Asia CEO Forum in Makati City yesterday.

For a real estate product to be considered affordable, it needs to track the real income of the residents of the country, Mr. Fossick said.

“In London, if you’re British, you’re unlikely to be able to afford a home in central London even though London is the capital of Britain. If you’re Singaporean, you will struggle to afford a home in the prime locations. Why? Because those markets have allowed foreigners to invest freely in them,” Mr. Fossick said.

Business groups are seeking amendments to the Philippine Constitution to lift the ban on foreign ownership of land, public utilities, media, advertising, and natural resources. Speaker Feliciano R. Belmonte, Jr. has said it is now unlikely for the proposal to secure final approval from Congress.

Raising the cap on foreign ownership -- currently pegged at 40% -- is seen to boost the country’s foreign direct investments, which has trailed its counterparts in the region.

“It’s not that you don’t want foreign investment in the residential market,” Mr. Fossick said.

“You have to ask why you want to have foreign capital in the market. If there is a need to have more capital to build the real estate, which is part of infrastructure, that is a very good reason. If you believe that foreign investors will bring in some best practices in building design and quality, that’s a good thing because at the end of the day it brings competition to the local market,” he added.

As a compromise to allowing more foreign money in Philippine real estate, the government may establish some controls such as residency requirements or higher taxes.

“We’ll have residents, whether foreign or not, to own real estate in the country and that’s one way of saying to people ‘live in our city, work in our city and invest in real estate as well,’” Mr. Fossick said.

“You can try to restrict a number of foreign investment in the city, which is what Singapore is doing, by imposing some taxes on foreigners. You can buy a property as a resident, but if you move out and you’re no longer a resident and you’re renting the property out and there’s a higher property tax for you than when you were living in it as a resident,” he added.

Mr. Fossick sees this debate continuing in other territories as governments strive to strike a balance between having free and open markets and managing its impact on local competition.

“It’s a challenge and it’s being brought up because interest rates are low,” he said.


By Krista A. M. Montealegre, Senior Reporter/ http://www.bworldonline.com

Who says the solution to the hellish traffic in Metro Manila lies with motorists, pedestrians, highway police and the MMDA (Metropolitan Manila Develoment Authority) alone? Certainly, even the property sector has a stake in this issue, for is it not true that a community is also defined by the interrelationship of public and private infrastructures?
Inquirer Property recently asked the following questions to the country’s most prominent property developers: 1) Is overdevelopment contributing to the traffic congestion, and why or why not? 2) What do you think property developers can do to help solve Metro Manila’s worsening traffic?

Here are their responses.

“Development without proper planning and observance to codes and city regulations may lead to problems in the future, and not just in the aspect of traffic but also with flooding and public safety. Whether or not Metro Manila is overdeveloped is a complex discussion in itself, because cities are still in dire need of efficient facilities, mass transport systems and infrastructure,” explained Terrie Fucanan Yu, Century Properties vice president.

Traffic impact study
She added: “One way to solve the traffic problem is to commission a traffic impact study and to consider its valuable findings into a development’s masterplan. Second, consider opening some private roads as additional access points for motorists. Third, encourage pedestrianization and provide ample pedestrian walkways into your plans. Fourth, provide ample parking slots for commercial and retail developments.”

Yu said that Century Properties has applied all of the above for its masterplanned communities, including Century City on Kalayaan Avenue in Makati.

SMDC executive vice president Jose Mari Banzon said the corporation’s residential projects are strategically located so that the need to travel is minimized.

“We locate within walking distance to malls and schools. Many of our projects (such as Light, Grass and Princeton) are also near transportation hubs to encourage residents to commute. If not within transport hubs, we often establish depots for buses, jeeps or tricycles as part of our residential complex. Our objective is to eliminate the need to travel or encourage use of public transport to minimize use of private vehicles,” said Banzon.

Harold Brian Geronimo, Megaworld’s head for public relations and communications, revealed to Inquirer Property that it was Megaworld that pioneered the township community in the country during the early 1990s. One of the reasons for its introduction was to minimize traffic.

Township concept
Geronimo said: “The township concept was first realized in Eastwood City, where all components are found in one community. The ‘live-work-play’ concept encourages walking, since condominium residents can go to work, shop and dine in just one area. We are aggressively expanding the concept in the provinces to generate a reverse migration. People in the provinces who migrated to Metro Manila will be encouraged to go back to where they came from, while new graduates from the provinces will no longer have to leave their towns.”

He cited as an example Megaworld’s latest project, the Iloilo central business district, which has the components of commercial retail and new business process outsource locators (that could generate up to 40,000 jobs for the BPO sector alone). He added that another job-generating industry would be the financial districts.

Geronimo said that a projected 250,000 direct and indirect jobs could be generated in Megaworld’s Iloilo township alone.

Urban sprawl

The Chamber of Real Estate and Builders’ Associations (Creba), an organization of real estate industry players, said in a statement sent to Inquirer Property that urban sprawl is one of the reasons for traffic congestion because land in the city centers are not optimized for vertical residential development, thus increasing vehicles on the streets to shuttle commuters.

The group seeks “a bill that will provide affordable homes to employees in urban areas, or near their places of work.”
It claimed that the bill, if it becomes a law, will help “lessen the daily suburban commute, traffic congestion, fuel consumption, vehicular pollution and urban sprawl, while optimizing land use, manpower productivity and business efficiency—all contributing to economic growth and environmental development.”
​
“The bill, which forms part of a five-point agenda that Creba approved in Iloilo last year to help address the country’s 5.5-million housing backlog, will be presented in its final form at their grand national convention in Bacolod City from Oct. 7 to 10,” said the Creba statement.



By: Tessa R. Salazar/ http://business.inquirer.net

Office rentals in commercial business districts (CBDs) are “still among the lowest priced at an average of P1,477 per square meter,” according to a recent report of KMC MAG Group.

The firm suggested it is “time to consider pre-leasing CBD addresses in time for rental compression in the second half of next year.”

What appears to be inevitable   in rental costs, specially in the Makati CBD, is the rising price of land. Property consultancy firm Colliers Int’l reports that commercial land in Makati costs P453,000 per square meter. The price is seen rising to P486,000 per square meter by 2018.

In comparison, land prices in Fort Bonifacio, a good portion of which is also managed by the Ayala Group, are slightly lower at P394,000 per square meter and expected to go up slightly to P424,000 by next year.

On the other hand, land prices – and consequently office rentals – in Ortigas Center are hardly moving. This year, Colliers said, the price of commercial land in the third CBD is P165,000 per square meter. By next year, the rate is predicted to go up   modestly to P178,000.

According to Colliers International Research, the rise in land prices in Makati is slightly more than two percent on a quarter to quarter basis. Year on year, the increase is 23.55 percent.

What appears to be surprising is the report of 1.97 percent rise quarter on quarter in Fort Bonifacio. On year on year comparison, the predicted increase is 45.28 percent.  

The quarter on quarter rise in Ortigas Center is highest at 2.2 percent among the three CBDs. Year on year, the increase appears most modest at 10.39 percent.

This might well be the explanation Ortigas Center is least preferred.

The office supply forecast of Colliers states there was 2,852,615 square meters rented office space in Makati at the end of last year. The total is seen increasing to 2,912,813 sqm. by next year. This could be a result of scarcity of commercial vacant space in Makati and the highest prices of its land compared to the other two CBDs – Fort Bonifacio and Ortigas Center.

The total in Ortigas as of the end of last year was 1,298,773 sqm. The increase to 1,476,109 sqm. by the end of 2018 is considered too modest.  The reason, property developers told Business Insight, is the fact that Ortigas is a smaller area compared to Makati and Fort Bonifacio.

The rented office space in Fort Bonifacio was 975,157 sqm. last year. The numbers rise steadily such that by the end of 2018, the total office for rent will come to 1,983,067 sqm., not too far from Makati CBD’s 2,912,813.

The forecast of office supply includes eight locations. Their total supply of office space is seen at 9,525,053 sqm. by 2018.  The list includes Andrew Tan’s Eastwood, Mandaluyong and Pasay Manila Bay.

The statement of Colliers that prime office rental cost in the CBD is lowest in the region does not consider the Philippines is also one of the poorest members of the Asean group. The country has a bloated population of 100 million people occupying 300,000 square kilometers of territory.

Indonesia has the biggest population of more than 200 million but its territory is about five times as big as the Philippines.


By Amado P. Macasaet / http://www.malaya.com.ph

WHEN American writer Jonathan Kozol said, “The cause of homelessness is a lack of housing,” he wasn’t just bringing to fore an obvious truth, he was emphasizing the existence of a problem that has persisted despite the fact that the solution is staring everyone in the face.

Some time ago, I wrote about the housing shortage the country was facing. Unfortunately, the problem has escalated since then and, today, the solution has apparently managed to elude everyone concerned. Or, rather, everyone knows what the solution is but there still seems to be no organized, wide-scale effort to pursue it. What we largely see are pocket housing projects here and there that may be well-meaning but, at best, only scratch the surface of the problem.
Despite the improving economy, an impressive expansion in foreign investment and a continuous influx of remittances from Filipino workers overseas, the Philippines continues to lack shelter for a large part of its population.

Figures, Figures
Different reports have been stating differing figures for the socialized housing backlog, which range from 4 million housing units to more than 500 million. Despite the huge disparity in published housing-backlog figures, one thing is clear—the demand for socialized housing in the Philippines has steadily increased and is currently way more than it should be.

Creating safer, cleaner and more livable communities for our less fortunate and underprivileged countrymen has always been a thrust of our national government. However, the government’s efforts are apparently not enough.  As things stand, there are still over 2 million informal settlers in the country right now, which roughly belong to around half-a-million families. And the number is alarmingly growing.

Admittedly, providing socialized housing as it is defined today is not the only solution, considering that most informal settlers still cannot afford supposedly affordable socialized-housing units. To address the issue of informal settlers, there should be a large-scale program that combines new socialized-housing initiatives with resettlement, relocation and livelihood projects.
Just imagine—if we could provide for our low-income earners and informal settlers just around 500,000 housing units, which represent just a fraction of even the most conservative housing-backlog estimate, we would be solving not just one problem, but two, three, or even more. For, if we look closely, the housing shortage and the informal-settlement situation have been contributory to other important national concerns.

For one thing, we know that informal settlers are forced to look for places on which they can set up their makeshift shelters and, oftentimes, they do so along rivers, estero, creeks and shorelines. Without access to an effective waste-disposal system in those areas, they oftentimes just throw their garbage into the creeks, sewers, or waterways. This naturally accumulates over time and everyone knows what this causes.

Moreover, in some areas of Manila, such as some parts of the port area in Tondo, informal-settlers have occupied the sides of truck routes, substantially narrowing road space and severely hampering traffic flow.

These are just a couple of examples. It is clear, however, that addressing the housing shortage and the informal-settlement situation also contributes to solving related, and equally pressing, societal problems.

The Need to Redefine Socialized Housing
The Urban Development and Housing Act was a good start and definitely well-intentioned—requiring property developers to allot 20 percent of their residential subdivision projects to affordable socialized-housing units. However, there have been so many arguments against the Act, such as its financial feasibility to property developers, as well as how it actually defines the term “socialized housing.”

Also, putting middle-income residents side-by-side low-income earners is a difficult proposition right off the bat. Middle-class families set up new homes in areas that allow them access to simple conveniences like stores, schools, transport hubs, and, yes, even malls. On the other hand, low-income families need to be located in places with good employment opportunities for them, like industrial areas with factories, construction sites, or even central markets where they can carve out a living by selling. Finding residential subdivision project sites that address these two different sets of needs would be difficult, if not impossible.

It is flat out wrong to relocate low-income families in suburban areas meant for middle-class convenience as it is wrong to resettle them in isolated areas without any means to eke out a living.

In fact, one of the reasons so many resettlement programs have failed in the past is because most of the relocation sites were situated in far-flung places with limited or totally no employment opportunities.

It is high time that we truly and seriously address the housing backlog and informal-settlement situation through an innovative and integrated national program that involves not just the government, but also property developers, financial institutions, non-governmental organizations and expert consultants, as well.

The first crucial step is to rethink our approach to socialized housing and redefine it to encompass a greater array of possible residential development opportunities—from house and lots to low- and medium-rise apartments. Then, we must look at everything from a totally fresh perspective.



by Amor Maclang - http://www.businessmirror.com.ph

MANILA, Philippines - The country’s largest organization of key real estate industry players is pinning its hope on a pending national land use bill to put the country’s economic and physical development in order.

The National Land Use Act (NLUA) being supported by the Chamber of Real Estate and Builders’ Associations Inc. (CREBA) which is pending in both houses of Congress will set the framework for land use planning involving four major categories of land uses – protection, production, settlements, and infrastructure.

“A national land use plan has long been needed by this country. And if done correctly, it shall be a key policy reference for all local comprehensive land use and development plans in all sectors, including commercial, industrial, housing, and real estate,” said CREBA national chairman Charlie A. V. Gorayeb.  However, Gorayeb said the NLUA bill should be made to adapt to current laws that had already been used by the business community for important investment decisions and made the basis of projects now under way.  Gorayeb was referring to laws such as RA 7279, or the Urban Development and Housing Act of 1992, covering all lands in urban and urbanizable areas; PD 399 limiting the use of strip lands; and RA 7160, or the Local Government Code of 1991, empowering local government units (LGUs) to reclassify agricultural lands deemed by the Department of Agrarian Reform  as no longer economically feasible for agricultural use, or appraised by the LGU to gain greater economic value in other purposes.

“The NLUA bill must also resolve the uncertainty as to where and what exactly is the extent of the ‘protected lands’ that are banned from conversion,” Gorayeb said.

He noted that the bill strived to identify lands under protection and production despite the still pressing need to properly delineate the agricultural lands under these categories.

He stressed the need for a rational and wholistic land use policy that reflects the realities on the ground, covering all areas of land use, and factoring in all the development requirements of every sector to achieve a well-balanced and stable economy.


(The Philippine Star) | http://www.philstar.com

FOR years now, I’ve been talking about disasters and calamities as the “new normal” that every Filipino must be able to anticipate and strategically prepare for—a reality of life that we can only address by harnessing an attitude anchored on “over preparation.”

Now, it’s time to turn our attention to an equally harsh reality—a bigger constant that most people have come to accept as a part of our daily existence, a never-ending headache that has yet to be figured out even by groups of people deemed responsible to take care of it—traffic congestion.

One wouldn’t need to exert so much effort to explain how the Philippine traffic situation has gotten out of hand. In a recent study, the Japan International Cooperation Agency went public after it said that Metro Manila loses more than P2.4 billion a day to traffic congestion. The agency even went on to warn authorities and concerned agencies that this gloomy scenario may even result to a staggering P6 billion worth of losses a day come 2030 if no substantial strategy is carried out to address the problem soon.

Everyone’s on the losing end
From occupying the ninth spot just this January in the list of the world’s countries with the worst traffic situation, the Philippines even sank deeper into the pit after it moved up to fifth place.

“Urban traffic congestion is a significant and growing problem in many parts of the world. Moreover, as congestion continues to increase, the conventional approach of ‘building more roads’ doesn’t always work for a variety of political, financial and environmental reasons,” Australia-based engineer William Zhang and senior lecturer at the University of South Australia wrote in a research entitled, “Alternative Solutions for Urban Traffic Congestion.”

“In fact, building new roads can actually compound congestion, in some cases, by inducing greater demands for vehicle travel that quickly eat away the additional capacity. Against this backdrop of serious existing and growing congestion, traffic-control techniques and information systems are needed that can substantially increase capacity and improve traffic-flow efficiency.”

Enduring the hit
It didn’t help at all when the leadership of the Metropolitan Manila Development Authority recently came out with a statement advising the public to expect the traffic situation to only get worse in the next 15 years. This was rooted from the claim that the government can only start fully implementing the Metro-wide transport plan come 2030—a statement that only added to the disappointment of legions of Filipinos.

As I’ve written in a previous post tackling this issue, real-estate developers carry a huge responsibility to preserve and uplift the quality of life wherever they choose to build. Efficient master planning should be at the core of every developer’s building strategy. Good planning is the best assurance for real-estate developers to retain and increase land and property values. Through this, they can sustainably and effectively attract long-term business, whether it may be through residential, commercial, or other forms of investments.

In Cebu, for example, the local government has begun collaborating with property developers to help minimize the impact of future developments to the existing traffic-congestion situation.

Over the past few years, the Philippines has successfully managed to create a global reputation for being one of the most consistent bearers of progress. However, all the efforts and the milestones attained to achieve this goal will only go nowhere if we won’t be able to establish the appropriate programs to sustain the momentum that we’ve already enjoyed.

Studies have shown that urban congestion remains as one of the biggest threats to sustaining land property values and consumer interest. Real-estate developers have long acknowledged this fact, which is why they have started looking at Metro Manila’s neighboring areas, like Bulacan and Cavite, among others, to host the next generation of central business districts, with the aim of helping decongest the National Capital Region. But until all of these developments are finally realized, we will still have to take part in the continuing drama—that is Metro Manila’s traffic situation.

Carmaggedon grips and paralyzes Metro Manila
CARMAGGEDON – or the state of extreme helplessness after getting stuck in a horrendous traffic jam – gripped thousands of motorists and commuters in Metro Manila and nearby provinces after heavy rains flooded major thoroughfares on Tuesday night.

Flash floods shuttered many roads in Makati, Manila, Quezon City, San Juan and Mandaluyong during the evening rush hour stranding thousands of people.

Many passengers were forced to get off and waded through flooded streets. Commuters helplessly sought shelter as they waited for the flood to subside.

Crisanto Saruca, head of the MMDA Traffic Discipline Office (TDO), said flood control teams were immediately deployed to flooded areas, but were unable to unclog the drains.

“Our teams already cleaned up the drainage system so that flood water would now easily subside. Our flood control team with portable pumps were also on stand by,” he said.

Motorists spent the entire evening sitting in their cars. Those who have mobile Internet connections turned to social media to vent their ire, many blamed the government for the horror they went through.

An executive of a telecommunications company said she’s been stuck for four hours in Makati City while a media company employee used emojis to express her frustration. Both – ironically – came from a media event that launched an online app that meant to help commuters travel with ease.

OFW party-list Rep. Roy Señeres, on his Facebook account, said he left his Batasang Pambansa office at 7 p.m. and arrived home in Las Piñas City at 2 a.m. Wednesday.

Gangs of teenaged boys were also seen preying on stranded motorists.  At the corner of Legarda and Mendiola in Manila, a gang of six pelted a taxicab with stones after the driver refused to let them go on board.

Along E. Rodriguez Ave. near the corner of G. Araneta Avenue in Quezon City, a teenaged boy approached the car of a Times editor and snatched its side mirror. No police or barangay authority were in sight in both occasions.

“Government’s efforts to improve traffic flow along EDSA (Epifanio delos Santos Avenue) and major thoroughfares were greatly hindered last night by heavy rains and flash floods that were experienced during the rush hour of homeward-bound commuting,” Communications Secretary Herminio Coloma Jr. said in a statement.

He said it was already past 11 p.m. when traffic started moving again after the floods have subsided.

“We understand the plight of many who were stranded and delayed considerably in reaching their homes and destinations and we seek their kind understanding,” Coloma, a transport undersecretary in the first Aquino administration, said.

The Highway Patrol Group which has taken over traffic management on EDSA was also caught off guard with the turn of events.

Chief Supt. Arnold Gunnacao, chief of the HPG, said they had anticipated the floods and were already planning to map out alternate routes, but their request for the Metropolitan Manila Development Authority (MMDA) to give them a list of flood-prone areas was overtaken by the thunderstorm and heavy rains.

“I requested MMDA for a copy or a list of areas kung saan magkakaroon ng baha, kaya lang di umabot ang request,” he told reporters.

“At least last night, we were able to identify the flooded areas so we are formulating our plans already if there would be flooding in Magallanes, Guadalupe, Buendia or in front of Camp Aguinaldo,” he added.

“Nag-divert kami ng traffic sa areas na hindi baha at puwedeng daanan. Unfortunately, ‘yung nasa dulo na ng EDSA southbound, hindi na natin mapa-divert kasi wala nang daan. Pero ‘yung mga nasa Guadalupe, napalabas namin ng C-5,” HPG spokesman Supt. Oliver Tanseco added.

Complex problem
Cabinet Secretary Jose Rene Almendras, who was recently designated as the government’s “traffic coordinator”, sought the public’s understanding.

“The problem being complex requires the ‘whole of government’ approach, which also involves other agencies such as DPWH (Department of Public Works and Highways), DILG (Department of the Interior and Local Government), DOTC (Department of Transportation and Communications), LTFRB (Land Transportation Franchising and Regulatory Board), and LTO (Land Transportation Office),” said Almendras.

At the same time, the official acknowledged the “hard work and continuous efforts of the HPG and MMDA for working together in order to address the traffic situation in Metro Manila.”

“The past two days are proof that the initial steps being taken to ease the traffic situation were effective, and government will continue to strive to improve our interaction and interoperability among concerned government agencies,” Almendras stressed.

“We continue to appeal to the public for their cooperation in following traffic rules and regulations that greatly impacts traffic flow and management,” he added.

Turf war
HPG’s Gunnacao complained that contrary to what MMDA Chairman Francis Tolentino had pledged before they took over EDSA, the agency has yet to hand over operational command of the 150 MMDA traffic constables.  He said until Tuesday night, the MMDA had insisted on deploying its personnel separately and beyond the control of the HPG.

Flooding to continue
Widespread flooding in Metro Manila would continue even if all of the government’s 360 flood- mitigating projects worth P8.848 billion are completed, according to the Department of Public Works and Highways (DPWH).  DPWH Maintenance Division chief engineer Rey Rosario on Wednesday said Tuesday’s flash floods was a result of heavy rains and high tide, and non-operational pumping stations.

Rosario clarified though that the DPWH has nothing to do with operations of the 54 pumping stations all over Metro Manila which he said is being managed by the MMDA. Control of the pumping stations were handed over to the MMDA when then Chairman Bayani Fernando was concurrent DPWH Secretary.

Rosario explained that despite ongoing engineering interventions to mitigate flooding in Mero Manila, it could not be totally eliminated because of other underlying factors.

“Even with all the projects we have, we cannot totally eliminate flooding but only reduced it to a minimum degree because Metro Manila is below sea level.” Rosario told The Manila Times.

He also pointed out that the lack of discipline among residents in the disposal of their garbage is another contributory factor to the perennial problem on flooding.

Rosario stressed that there should a “wholistic” approach to the problem, which should involved the participation of the residents and the local government units concerned in coordination with the DPWH and concerned government agencies.
In its budget report submitted early this year, the DPWH allotted some P46 billion for its flood control program nationwide.


Posted by Amor Maclang/ http://www.businessmirror.com.ph
Posted by JOEL M. SY EGCO, SENIOR REPORTER RITCHIE A. HORARIO AND WILLIAM DEPASUPIL, REPORTERS AND ANTHONY VARGAS, CORRESPONDENT http://www.manilatimes.net