The country is facing a stall in IT centers due to President Rodrigo Duterte’s ban on economic zone development in Metro Manila.
According to reports, there are a total of 131 applications for information-technology centers and parks dedicated to business-process outsourcing (BPO) firms in the country. However, the current ban can be detrimental to the country’s number open dollar-earning industry when it comes to office space offerings. So far, according to the Business Mirror report, the existing office space availability is not enough to house potential investors.
The industry added 420,000 square meters last year for office spaces. Unfortunately, 2019 is requiring 450,000 square meters to future investors coming into the country.
Through in an interview with Business Mirror, IT and Business Process Association of the Philippines President and CEO Rey E. Untal said “there is going to be a near-term detrimental impact” on the BPO industry from the moratorium.
“A lot of the growth are poised to happen in Metro Manila this year. We [had] said there are potential new locators, so the question is whether the existing availability of [economic] zones in Manila are going to be sufficient in comparison to the demand picture that we are anticipating,” Untal said.
On the other hand, Inquirer.net reported that more than P34 billion worth of projects is awaiting final approval from the President. The Philippine Economic Zone Authority (Peza) said the P34 billion worth of projects are 22 Metro Manila-based projects.
The organisation is asking the Office of the President to extend the duration of the transitory period of the ban as well as increase the coverage of exemptions.
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