Church, jewelry & real estate

From the United States to Europe to Asia, more and more people are going back to their faith due to uncertain times. This trend has become even more apparent in the Philippines where Filipinos can be religious to the extreme, even getting themselves nailed on the cross during Holy Week.

No doubt the recession is driving a lot of people down on their knees, seeking Divine intervention for all kinds of financial problems. After all, it’s a well-known fact that people pray harder and more often when they find themselves in a difficult situation, perhaps acknowledging that only a higher power can bail them out of trouble.

A parish priest commented to me that people he has not seen for so long have been going back to church when the global financial crisis hit our shores. This upsurge in church attendance has been notable especially in places like Baclaran, where devotees normally flock only on the first Wednesday of the month. But nowadays, the crowd has been overflowing even on ordinary days of the week. I am told Brother Mike Velarde has also noticed an increase in his El Shaddai flock, most probably because people take comfort in his preaching that miracles can still happen if they just have faith and believe.

The fact is, prayers and petitions are on the rise, with majority having to do with finding jobs whether here or abroad. There are prayers for healing, for payment of bills, school tuition – all of them indicative of the fact that money is getting tighter for many Filipinos. According to the Labor department, some 300,000 people could lose their jobs in the first half of the year, with unemployment rates expected to hit as high as 10 percent if the global crisis worsens. Recruitment industry consultants have also warned of waning job opportunities despite news that employment opportunities are available in the United Kingdom, Dubai, Qatar and other countries.

Aside from church attendance, one other significant increase is seen in the pawnshop business. One reason why the pawnshop industry continues to thrive is the fact that people – mostly those who have no access to bank credit – find it easier to deal with pawnbrokers when they need to get money fast. No tedious paperwork, no complicated documents required. All one has to do is leave an item as collateral for the loan, usually 40 percent of the item’s assessed value. Some pundits have even dubbed the Philippines the pawnshop capital of the world, with 14,000 pawnshops all over the country – slightly less than the US which has an estimated 15,000 pawnbrokers.

Aside from jewelry and watches, all kinds of items are being pawned such as cell phones, appliances and even cars especially in the provinces. But it’s not only the lower sector that is resorting to pawning as a means to cope with the tight financial crunch. In the US for instance, the rich are pawning boats, Harleys, violins and even works of art like Van Goghs. All done discreetly, of course, but all pointing to the reality that the global meltdown is starting to hit all sectors of society.

Interestingly, it’s not only the hard-up or broke who are doing business with pawnshops but also those who still have disposable incomes, buying up unredeemed jewelry. Pawnshops are good venues for those looking for bargains since the selling price of the unredeemed items are significantly lower than their actual value. Perhaps one other reason why a lot of people continue to buy jewelry despite the crunch has to do with Filipinos’ experience during the Japanese occupation. During those times, the easiest items to secure that were of value were jewelry since people could easily hide and bring them as they fled from the Japanese soldiers.

Other than jewelry, more Filipinos continue to invest in real estate – still one of the safest investments since more often than not, their value appreciates as time goes by. While analysts see a slight decline in demand for commercial property, demand continues to be strong for the middle income and high-end condos.  More overseas Filipino workers are buying up mid-end condominiums and town houses since these are concrete proof of all the sacrifices they went through working hard in foreign countries, plus, they see it as their home when they retire.

No doubt Filipinos are starting to feel the effects of the financial crunch. But as long as Filipinos know they still have a roof over their heads, they will always find the optimism that that they will be able to weather the crisis because of their newfound reliance on the power of prayer – plus the fact that they can always go to the nearest pawnbroker if money becomes a tight squeeze.

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Asia CEO Agenda

Senior business executives will be gathering in Singapore this May for a high-level conference to discuss new trends that are reshaping Asia’s economic landscape, as well as challenges and other issues that businesses are facing with the onslaught of the global financial crisis.

Dubbed the “Asia CEO Agenda,” the meeting is organized by the Economist Conferences with Weber Shandwick Worldwide tapped as the official PR partner for the event. Senior executives will be sharing and comparing notes on various strategies for specific business challenges, with expectations that the meeting will provide valuable inputs for various business sectors.

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