Skip to main content Skip to footer

Manila Market Intelligence: December 19, 2018


Government, private sector collaborate to implement the Export Plan 


The Philippine Export Development Plan (PEDP) 2018 – 2022 is a five-year roadmap aligned with the Philippine Development Plan (PDP) 2017 – 2022 and the 10-point socioeconomic agenda of the current administration. It aims to support small and medium enterprise and enhance their competitiveness. Government agencies and the private sector will collaborate to improve overall export climate; maximize opportunities from existing trade arrangements; and strengthen export strategies on selected products and services specifically on electronics, food and beverage, IT-BPM and tourism. Tasked to supervise the implementation of PEDP is the Export Development Council (EDC) as mandated by Export Development Act (RA 7844) and Presidential Memorandum Circular 27 series of 2017.



In 3Q 2018, Philippine economy grew by 6.1% which is lower than the projected growth of 6.5% to 7 % by end-2018. One of the reasons for the slower growth is the widening trade deficit. In September 2018, the Philippine trade deficit further widens to $3.9 billion due to weakening exports. The government aims to address the issue through PEDP which will bring export revenues to $130 billion by 2022. Colliers recommends light manufacturing firms including F&B manufacturers to locate within industrial parks in Central Luzon including the provinces of Pampanga and Bataan. Meanwhile, heavy industries including manufacturers of semiconductors, electronics, and other higher value products should consider industrial parks in Batangas area where substantial space is still available. On the other hand, we recommend developers to accelerate and modernize the construction of their projects to capture interest of tenants. We believe that the industrial sector will benefit from the improving infrastructure backbone of the Philippines. 

DMCI unit hits P33.48-B sales in 9 mos


DMCI Homes Inc. is set to reach its sales target of P40-billion for 2018. For the first three quarters of year, sales grew by 7% to P33.48 billion from P31.34 billion in the same period last year. About P18.44 billion of revenues were generated from Kai Garden Residences, Fairlane Residences and Prisma Residences. The developer has also acquired land in Visayas and Mindanao which raised the firm’s land value to P9.0 billion in 3Q2018 from P4.9 in 3Q2017. DMCI Homes Inc. already launched three residential projects and has completed 10 buildings so far this year.

Colliers is projecting take-up of pre-selling condominiums to surpass the 53,000 units sold in 2017. For the first three quarters of 2018, we already recorded about 42,000 units of take-up in the pre-selling market, higher than the 38,000 units sold in the same period in 2017. Colliers Research notes that 18,000 units or nearly two-thirds of all the condominium units launched in the first nine months of 2018 were in the outskirts of central business districts (CBDs) including Mandaluyong, Novaliches, Malabon, Cubao, Pasig, and Katipunan. This reflects the residential strong demand in the fringe locations. Colliers recommends that developers should pursue more projects in the outskirts of business districts to take advantage of the strong demand. 

Bill creating Central Luzon investment authority hurdles committees


House Bill 8637 which creates a Regional Investment and Infrastructure Coordinating Hub (RICH) in Central Luzon has been approved by House committees on Government Enterprises and Privatization, Appropriation and Ways and Means. RICH will replace the Subic-Clark Alliance for Development Council (SCADC). The 13-member board will develop the Central Luzon Investment Corridor Master Plan that will convert the region into a single investment hub “to expand and replicate the rapid growth in the areas hosting special economic and freeport zones”. The bill also intends to improve infrastructure developments and optimize the use of interconnecting highways, railway, seaports, and airports in Central Luzon to help decongest Metro Manila. The measure’s counterpart in the Senate has been approved on third and final reading.
The Philippine government’s plan to decongest Metro Manila is benefiting Central Luzon. The region is becoming a major hub for business opportunities due to the planned construction of key projects such as Clark Airport Expansion, Subic-Clark Cargo Railway, Manila to Clark Passenger Railway, and NLEX-SLEX connector. These projects should compel developers to build more support facilities such as offices, residential condominium, malls, hotels, and industrial parks in the region particularly Pampanga. Given the relatively cheaper developable land in the region, Colliers encourages developers to cash in on the improving infrastructure connectivity in Central Luzon and start acquiring parcels of land.  The infrastructure projects lined up for implementation should unlock land values and stimulate economic activities in the region.



Related Experts

Joey Bondoc

Associate Director



Prior to joining Colliers in March 2016, Joey worked as a Research Manager for a research and consutancy firm where he handled business, political, and macroeconomic analysis. He took part in a number of consultancy projects with multilateral agencies and provided research support and policy recommendations to key government officials and top executives of MNCs in the Philippines.

View expert