Quantcast
Latest Stories

Developers urged to look beyond BPO sector

By

PROPERTY developers should look beyond the business process outsourcing sector and start considering developing “middle office” hubs for financial institutions, said a property expert from global think tank Urban Land Institute (ULI).

While business process outsourcing has “created the buzz for the Philippines in the global property scene, it’s not enough to be a “one-trick pony,” said Simon Treacy—global trustee and chair of ULI South Asia and group chief executive officer at Singapore-based MGPA, a fund manager under the Macquarie Group.

ULI is a non-profit education and research institute focusing on land use.

In an interview during his recent visit to the Philippines, Singapore-based Treacy said that beyond BPO, property players must start looking at new growth areas.

“There are lots of opportunities. It may be home middle office on the professional side (as) cost among the banks is a major issue. We’ve seen that with UBS, Citibank etc.” Treacy said. “This could be a knowledge center for a lot of the financial services industries, why not?”

Middle office refers to the segment or division within a bank or financial service institution that takes care of risk management, calculates profits and losses and handles the information technology platform using the resources of “front” and “back” offices.

“Front” office usually refers to sales and corporate finance team while the back office, where BPOs come in, covers administrative and support services.

“I think the Philippines has a lot of talented people,” Treacy said.

Asked about the prospects for tourism-oriented property, another area where a lot of local developers are pouring money into, Treacy said the trend toward tourism was increasing. “And with the China-Japan issue (tension), you’ll probably see more tourism here, but every now and then you hear soundbytes about someone being kidnapped and from a foreign perspective, especially if you have kids, you want to go somewhere safe,” he said.

Industrial estate is one property segment in the country that has been lagging behind its counterparts overseas as the Philippine economy increasingly becomes service-oriented.

Treacy said the Philippines could go up the value chain in manufacturing and be able to lure back talented overseas Filipinos. He said this was what had been happening in China now “where there’s a big ‘U-turn’ of talents.” He was referring to the return of skilled manpower from overseas to China.

“As the Philippines goes investment grade in the next six months, this may probably happen here, too,” Treacy said. “You’ve got lots of Filipino doctors and nurses. Maybe this could be an education center for Asia.  The country has opportunities to spin off the BPO (story).”

Treacy also continued to hope that the property industry would find a way to work with regulators to introduce real estate investment trusts (REITs) in the country.

“Look at what Kuala Lumpur has done. It has increased transparency, liquidity, confidence. You’ve got banks now moving operations to KL. We’re now seeing Malaysia as a more institutional grade (property hub),” he said.

Based on a research published by ULI and PwC “Emerging Trends in Real Estate® 2013,” Manila ranked 12th out of 22 regional markets in terms of investment prospects and ninth in terms of development prospects, marking a rapid rise from near-bottom rankings in previous years’ polls.

Manila was ranked 18th in the outlook for 2012 and 20th two years before that.  This is the 7th edition of this trends and forecasts publication, which is based on the opinions of more than 400 internationally renowned real estate professionals, investors and other stakeholders.

Manila fared well in specific property segments, especially in the secondary or rental apartment residential segment, where it ranked second to Jakarta.  The ranking was based on the percentage of “buy” recommendations of survey respondents as opposed to “hold” or “sell.” Jakarta had a “buy” rating from 43.62 percent while Manila had 36.46 percent.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: bpo , Business , property developers , urban land institute



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Bernice Lee arrested by NBI team
  • Group: Bataan cop killed to stop him from exposing colleagues linked to drug ring
  • Chemical Engineer licensure examination
  • Troubled history fuels Japan-China tension
  • Palace: Our concern is to ensure MRT runs smoothly
  • Sports

  • NLEX fights off Derulo Accelero to remain unbeaten
  • Mayweather diehard Bieber eats pride, poses with Pacquiao for photo op
  • Power Pinays rip Singapore to enter quarters in Asian volley tilt
  • PBA D-League: Waves edge skidding Superchargers
  • Ilad’s last-second basket lifts Gems over Bakers
  • Lifestyle

  • Miss America: Don’t suspend teen over prom invite
  • Transitions and resurrection in the performing arts
  • ‘Archaeology tour’ of Cebu’s heritage of faith
  • Historic Fort Bonifacio tunnel converted into a septic tank
  • ‘Imports’ from London, and play of the year
  • Entertainment

  • Arrest warrants out vs. Deniece Cornejo, Cedric Lee, et al over serious illegal detention
  • Lindsay Lohan says she had a miscarriage
  • Discovery network cancels Everest jump
  • ‘Captain America’ stays strong atop US box office
  • Easter musings
  • Business

  • Century Pacific Food sets IPO price at P13.75 per share
  • Oil prices down in quiet Asian trade
  • Asian shares mixed in holiday-thinned trade
  • BDO seen keen on bidding for Cocobank
  • Bataan freeport investment pledges up 1,302%
  • Technology

  • PH has slowest internet in Southeast Asia
  • Nintendo’s trailblazing Game Boy marks 25th anniversary
  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Opinion

  • Gigi’s home
  • Palace stonewalls on MRT inquiry
  • Couple of things too
  • There is plenty of water behind Wawa Dam
  • Triduum thoughts of a young boy
  • Global Nation

  • Balikatan could spoil peace talks, says militant group
  • DFA officers hold workshop on aiding human traffic victims
  • Canada in communication with PH on toxic wastes
  • Filipinos in Middle East urged not to panic amid MERS-CoV scare
  • Obama on mission to quiet Asia skeptics
  • Marketplace