THE Cebu Chamber of Commerce and Industry (CCCI) believes that the economy this year is generally favorable for the local business community.
The CCCI — represented by its president Francis Monera, vice president for external affairs Ted Locson, board of trustee Prudencio Gesta, and vice president for business development and management services Edward Gaisano — gave their assessment of the economy during the recent CCCI year-end media briefing.
CCCI president Francis Monera cited indicators of strong economic fundamentals namely, low interest rate, high remittances from overseas Filipino workers (OFWs), the peso’s appreciation as well as the bullishness of the stock market.
He said these are among the “trigger points” that drove up the confidence of many investors in the country.
He added that the present economic fundamentals will trickle down to many industries.
Construction sector
Due to low interest rates, there are more projects in the real estate sector that resulted in higher growth in the construction industry, Monera said. He pointed out the mushrooming of middle- to high-end residential projects as well as office buildings in Cebu.
With more office spaces and cheap rental rates, many business process outsourcing companies have decided to bring their operations to Cebu.
The establishment of business process outsourcing (BPO) companies in key cities in the Visayas, particularly in Cebu, paved the way for more employment opportunities, Monera said.
He cited the e-Bloc — the P900-million, 12-story mid-rise building of Ayala Land Inc. — that is being constructed at the Asiatown IT (information technology) Park (AITP). Gaisano, for his part, said the booming BPO industry of Cebu also increased the profit margins of many local retailers.
He earlier said the high purchasing power of call center employees has changed the buying habits of Cebuanos who now prefer high-end quality items.
The demand for quality goods and services is the reason AITP and some malls house restaurants and entertainment joints that cater to the “nocturnal crowd” or call center employees, said Gaisano, who is also vice president for operations of the Metro Gaisano group.
Tourism
Monera also said that other than unprecedented growth of the BPO sector, Cebu’s other “twin-win” industry, tourism, also grew this year.
This, he said, is evident not only in the entry of big ticket hotel projects and in the increase of foreign visitor arrivals, but also in higher domestic tourist figures.
He said low airfare rates have enabled many Filipinos to travel, either for business or leisure, to different parts of the country.
Gesta, on the other hand, said the Philippine stock market continues to be “very bullish.”
“From 1,000 points, it has grown to more than to 3,000 points (referring to the composite index of the Philippine Stock Exchange). It means we are on the right track,” he said.
Gesta, who is also president and area head for Central and Eastern Visayas area of the Rizal Commercial Banking Corp., said low interest rates offered by banks have also increased consumer lending, which provides funds for people to start their own businesses.
He said the upsurge of OFW remittances has allowed the government to settle international obligations.
When asked about exporters and OFWs who are adversely affected by the peso’s appreciation, CCCI officials said that while there are those who “rejoice” at the present state of the local currency, there are also those who are unhappy with it.
Locson dismissed speculations that economic growth figures are false as these have not resulted in improved living conditions of majority of Filipinos.
“Economic boom does not happen overnight. It will take time for Filipinos to feel the tickle-down effect. It will take months, maybe years. Who knows?” he said. (MMM)
