Delay in PEZA ap­provals ham­pers BPO sec­tor ex­pan­sion

Business World - - Corporate News - Arra B. Fran­cia

EX­PAN­SION of the busi­ness process out­sourc­ing (BPO) sec­tor next year may be ham­pered by the con­tin­ued delay of the Philip­pine Eco­nomic Zone Authority (PEZA) in ap­prov­ing ap­pli­ca­tions, ac­cord­ing to Col­liers In­ter­na­tional Philip­pines.

The real es­tate prop­erty con­sul­tancy noted in a state­ment that only six PEZA ap­pli­ca­tions have been ap­proved in the first nine months of 2018, with no ap­provals seen in the fourth quar­ter.

Since Pres­i­dent Ro­drigo R. Duterte started his term in 2016, only 36 out of 78 PEZA IT Cen­ter and Park ap­pli­ca­tions have been ap­proved, or an ap­proval rate of 46%. The most num­ber of ap­provals were seen in the fourth quar­ter of 2017 at 11 PEZA ap­pli­ca­tions, which prompted an in­crease in take up of of­fice spa­ces in 2018.

“Col­liers be­lieves that a ma­jor rea­son why of­fice de­mand from out­sourc­ing firms picked up in 2018 is the ac­cel­er­ated PEZA procla­ma­tion of of­fice spa­ces in 2017 which are now about 70% oc­cu­pied,” the com­pany said.

PEZA-ac­cred­ited build­ings in­clude Me­ga­world Corp.’s McKin­ley Hill, Fil­in­vest Land, Inc.’s North­gate Cy­ber­zone, Robin­sons Land Corp.’s Bridgetowne, and Ay­ala Land, Inc.’s Ver­tis North, among oth­ers.

“Col­liers en­cour­ages the gov­ern­ment to ex­pe­dite the ap­proval of PEZA ap­pli­ca­tions. We be­lieve that a cou­ple of ap­pli­ca­tions can still be ap­proved be­fore the end of the year, which should con­trib­ute to a stronger pre-leas­ing of of­fice space due to be com­pleted in 2019 and 2020,” it said.

As of the third quar­ter of 2018, there are 821,742.31 square me­ters (sq.m.) of of­fice spa­ces with pend­ing PEZA ap­pli­ca­tions in the coun­try, 637,630 sq.m. of which are in

Metro Manila. Pro­vin­cial sites with pend­ing

PEZA ap­pli­ca­tions in­clude Bataan, Benguet,

Cavite, Cebu, Davao del Sur, Iloilo, La­guna, and Ne­gros Oc­ci­den­tal. —

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