Vol. XXII, No. 65 [ BusinessWorld Online ]
Friday, October 24, 2008 | MANILA, PHILIPPINES
MULTINATIONAL firms reeling from the spreading financial crunch are expected to restructure operations and transfer businesses offshore, with the Philippines as a top choice, in six months.
David Leechiu, country head of real estate consultancy and management firm Jones Lang Lasalle Leechiu, said these firms will start coming in by around April next year. "These are Fortune 500 companies. It will take three months for them to restructure, reorganize and start offshoring because of pressure to cost-cut. The Philippines is top of mind...they want to build, expand, restructure in the Philippines as soon as possible, " he said in a briefing.
He said those planning to redirect investments here next year are from the financial, banking, services and manufacturing industries, Mr. Leechiu said.
"Companies are not going to India anymore because it’s easier to do business here because of the cost structure, " he said.
Business Processing Association of the Philippines Chief Executive Officer Oscar R. Sañez said even nontraditional industries are setting their sights on the Philippines particularly publishing, outsourcing, manufacturing, engineering and design process, as well as animation and gaming.
He said firms from Singapore, Malaysia and Hong Kong are also considering transfering to the Philippines.
Mr. Leechiu said "demand in the property sector is growing. We’re not seeing contracting demand."
He said prices will start softening from the fourth quarter of 2008 to March next year due to oversupply of space, but demand should pick up afterwards.
"OFW [overseas Filipino workers] money will always find their way to condominiums because these people always want to spend in their homeland. We also see a big influx in expats, " Mr. Leechiu said. — B. S. Sto. Domingo
