This week, Colliers Research provides insights on Singapore-based Zyllem’s plan to expand operations in the Philippines and electronic payment (e-payment) transactions coursed through Bangko Sentral ng Pilipinas registering double-digit growth in December 2021.
Singapore-based logistics firm to expand in PHL
Logistics technology firm Zyllem is looking to expand in the Philippines. The Singapore-based provider offers distributors and e-commerce companies a platform to build their own logistics distribution networks with their own assets and third-party logistics partners. Zyllem currently caters to the retail, F&B (food and beverage), pharmaceutical, and logistics sectors. Some of their clients in the Philippines include Zuellig Pharma Corp., Metro Drug Inc., Airspeed Philippines Inc., and Suy Sing Commercial Corp.
In H2 2021, vacancy in the Cavite–Laguna–Batangas (CALABA) corridor dropped to 5.2% from 5.7% in H1 2021 as more manufacturing and logistics firms took up space. In our view, growth in the industrial sector will continue to be driven by robust demand from e-commerce and manufacturing firms in 2022. Based on our Q3 2021 Retail Survey, 34% of respondents chose logistics/delivery time as the top factor that e-commerce platforms should improve on. Colliers recommends that retailers strengthen their partnerships with logistics providers and warehouse developers to speed up delivery operations especially with the rising demand for same-day deliveries.
E-payment transactions up in December
Electronic payment (e-payment) transactions coursed through Bangko Sentral ng Pilipinas (BSP) or central bank’s clearing house registered a double-digit growth in December 2021. Data from central bank showed that InstaPay transactions reached PHP289 billion (USD5.7 billion), up 64% YOY. In volume, InstaPay reached 45 million transactions, an increase from 30.6 million transactions in December 2020. Meanwhile, PESONet transactions amounted to PHP502.9 billion (USD9.9 billion) in December 2021, up 37% YOY. PESONet volume rose to 7 million transactions from 5.5 million in December 2020.
Based on the central bank’s Digital Transformation Roadmap, the share of digital retail payments to total retail transactions is targeted to reach 50% by 2023 from only 10% in 2018. Meanwhile, data from mobile e-wallet service, GCash, show that the pandemic has accelerated Filipinos’ financial inclusion as it has now reached 51 million registered users as of the end of 2021 from 33 million in 2020. Colliers recommends that retailers partner with mobile wallet apps for ease of payment, and to minimize physical contact and improve shopping convenience.