SINGAPORE FIRM 6X.COM GET CEZA LICENSE
Cagayan Economic Zone Authority (CEZA) recently approved the license to operate of 6X Digital Asset Trading Platform (6X.com) to engage in offshore virtual currency exchange (OVCE) services. The Singaporean firm offers services in the fields of blockchain, cryptocurrency, and financial technology solutions. Its platform can support two million transactions per second and averages transaction volume of more than $200 million per day. Fintech companies like 6X.com are encouraged to locate in CEZA which is poised to become the “FinTech City” or the “Silicon Valley of Asia”. These companies are expected to produce high-paying and highly-skilled information technology jobs.
Colliers has observed that some providers of fintech services have started to operate in Manila as they await the completion of a fintech facility in CEZA. In our opinion, the demand from fintech companies is something that developers and flexible workspace operators should tap. The market is relatively smaller compared to traditional sources of demand such as BPOs and KPOs but the proliferation of e-commerce and various governments’ push to make financial services more inclusive should spur demand for fintech solutions in the near term. This should contribute to greater office space demand and further diversify tenancy mix over the next 2-3 years.
PALACE SAYS WORK FROM HOME LAW TO 'EASE TRAFFIC CONGESTION'
President Duterte has signed into law Republic Act 11165 or Telecommuting Act, among the measures is that it aims to address is the worsening traffic situation in Metro Manila. The law institutionalizes telecommuting as an alternative work arrangement for workers in the private sector on a voluntary basis. The telecommuting employees shall be given the same treatment as those employees working in the office in terms of pay rate, overtime and night shift differential, and other monetary benefits provide in applicable laws.
In 3Q 2018, Colliers recorded flexible workspace supply at 339,000 sq metres. This accounts for about 3.2% of the total Metro Manila office supply and we project this to reach 3.5% by end-2021. We believe that the newly-enacted measure is likely to benefit flexible operators. Given the tight office vacancy in Metro Manila, Colliers recommends flexible workspace operators to consider space in upcoming malls and hotels; partner with developers of worker dormitories; and tie up with local government officials of second tier cities that are viable outsourcing destinations.
SHAKEY'S TO DELIVER 20 NEW STORES
For the first nine months of 2018, Shakey’s Pizza Asia Ventures Inc. (SPAVI) net income rose by 6% to P534.64 million from P503.61 million in the same period last year. This is attributed to the company’s expansion and introduction of new concepts outside Metro Manila. For 2019, the company is set to open 20 new stores in various locations outside Metro Manila. The expansion will expand SPAVI’s store network to 248 by end-2019. Furthermore, SPAVI also plans to open 18 Shakey’s outlets in Middle East, Asia excluding Japan and Malaysia, China, Australia, and Ocenia.
Colliers Research shows that the food and beverage sector (F&B) still dominates retail spending in Metro Manila. The segment covers around 30% to 50% of leasable retail space in shopping centers across the metro. We are optimistic that F&B spending will remain strong over the next 12 months given the entry of new foreign and local brands. Retailers should base their offerings and products on the consumer spending sub-segments to further connect with consumers. Among the fastest growing sub-segments are health, restaurants, recreation, food and beverage, and miscellaneous goods which covers personal care and personal effects.