Businessmirror april 23, 2017

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Sunday, April 23, 2017 Vol. 12 No. 192

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Thriving online gaming market surpassing BPO industry office requirements

‘New kid on the block’ T

By Roderick L. Abad | Contributor

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he online gaming industry is virtually now a “new kid on the block” in terms of office take-up, and is expected to kick out today’s lead tenant—the business-process outsourcing (BPO) sector—in the near future, according to a leading wholly owned Filipino real-estate company.

Leechiu Property Consultants (LPC) CEO David Leechiu said in a media briefing that both of them mainly drive the demand for workspace nationwide, which this year is anticipated to aggregate between 1.2 million square meters (sq m) and 1.5 million sq m. “So, we anticipate the BPO industry to take up maybe 700,000 sq m to 800,000 sq m this year,” he noted. “This online gaming market could easily consume 400,000 sq m [or] 500,000 sq m of office space this year.” They, likewise, have availed themselves most of the supplies

yet to be completed, either for their flagship office or expansion. In fact, the BPO almost accounts for 40 percent of the unprecedented 500,000-sq-m level of precommitments to date. “But the big surprise for all of us is the online gaming market. They went from zero to now the secondlargest demand driver for office space. [They’re] not just the second largest, but they are about equivalent to 50 percent of the BPO sector today,” the top executive said. “And the amount of space we anticipate to take this year will be anywhere from 50 percent to almost equal that of the BPO industry. That’s how big their potential could be. For the last 15 years, the BPO industry has the office market all to itself. Now they have somebody also chasing space from the market. And that’s online gaming market. They did this practically overnight,” he added.

New licenses

Online gaming firms started to make their presence felt in the office market during the Ramos administration when some locators in the Cagayan Economic Zone Authority (Ceza) took space outside, such as in the RCBC Building, PBCom Tower, GT Tower and The Enterprise Center in Makati City. Other players expanded in different geographies. Continued on A2

Spike in pork price amid adequate supply baffles gov’t execs, industry players

Summer of discontent for meat lovers

D

By Jasper Emmanuel Y. Arcalas

espite an “all-time high” of pork inventory, the price of meat in the retail level continued to spike, leaving government officials and industry players perplexed.

On April 17 Agriculture Secretary Emmanuel F. Piñol called a meeting with hog industry stakeholders and players to discuss the reported increase in the retail prices of pork in the market. Edwin G. Chen, president of Pork Producers Federation of the Philippines Inc. (ProPork) and one of those who attended the gathering, said Piñol decided to call for the “urgent” meeting with industry stakeholders following President Duterte’s order. “When they were in Talavera, Nueva Ecija, Piñol said somebody reported to the President that the price of pork is increasing. So, the President ordered Secretary Piñol

to look into the matter on why the price is increasing,” Chen told the BusinessMirror.

‘Hot’ weather

Speaking for ProPork, Chen explained that during this period of the year, the price of pork seasonally increases due to lower local supply, coupled with increased market demand. “We said that the normal meat cycle during this time is that the growth rate of production declines due to climatic factors, while demand increases due to feasts being held left and right in the country,” Chen said. According to Chen, hot weath-

PESO exchange rates n US 49.8120

er conditions affect the conception and reproduction of sows, resulting in lower number of offspring by the time of September. Thus, the piglets that are born by the latter part of the year, which will be harvested by March, would be fewer than normal, Chen added.

Piglet killer

However, on top of the natural business cycle, Bureau of Animal Industry (BAI) Assistant Director Dr. Simeon S. Amurao Jr. said the local hog industry was allegedly hit by porcine epidemic diarrhea (PED) late last year, leading to the deaths of some piglets, which should have been harvested this quarter. “During the latter part of last year, there were reports that the industry was hit by porcine epidemic diarrhea. So there were piglets that were supposed to be harvested this year that died,” Amurao told the BusinessMirror. “So, that really affected the market with the decrease in supply,” Amurao said. Continued on A2

33.07%

The hike in frozen-pork inventory as of March 27 to 15,367.19 metric tons, from 11,548.18 MT recorded volume a year ago. The bulk, or nearly 91 percent, of the total inventory, meanwhile, was comprised of pork purchased abroad, according to the NMIS.

n japan 0.4557 n UK 63.8490 n HK 6.4069 n CHINA 7.2359 n singapore 35.6437 n australia 37.4885 n EU 53.3985 n SAUDI arabia 13.2839

Source: BSP (21 April 2017 )


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