Political realignment: A non-issue to developers

CEBU, Philippines - Political realignment, new leaders, new policies, or a total shift in the Philippine government system is not a threat to big real estate developers, who said any change in leadership, may it be local or national level, is totally not an issue.

Aboitiz Land Inc. president and chief executive (CEO) Andoni  Aboitiz said that business is there to support economic development in a country, and that no matter what change there is in government leadership, business will continue to support projects and ventures for economic development.

According to Aboitiz, expansion plans are on track regardless the transition, hinting that the rosy economic outlook for the country is not threatened by the change of political color.

Likewise, Ayala Land Inc., president and chief executive officer (CEO) Bobby Dy , said the company believes that the Philippines is set to grow, despite the change in political system, which may also change some of the policies, and programs.

For Ayala Land, Dy said the company is anticipating the robust growth in urbanization in the Philippines, and like Aboitiz, he said political movements could not affect the plans of companies, especially real estate developers.

Economist Bernardo Villegas echoed this insight of business decision makers, saying that whoever will lead the Philippines, the country is meant to grow tremendously. In fact, if managed well by President-elect Rodrigo Duterte, ideal GDP growth of eight to 10 percent is achievable.

Considering the country’s stable engines of growth—the OFW remittance, and the robust Business Process Outsourcing sectors, no political change, or change of leadership could ruin this foundation.

In fact, real estate companies, and developers are attributing OFWs and BPO workers as main buyers for residential projects, and consumers in retail and lifestyle products and services.

In 2015, the Philippines recorded US$28 billion remittance money from the over 10 million Filipinos working abroad and this will continue, and even grow regardless of political re-alignment, Villegas said.

 The BPO sector on the other hand, is pushing the economy to climb some more, with the 18 percent annual growth of the sector.

Last year, the BPO industry contributed US$22 billion revenue, and the over one million people working in the outsourcing sector is spending like “there’s no tomorrow,” pouring their money to domestic economy. (FREEMAN)