Real estate, MSMEs drive Pinoys’ spending capacity

CEBU, Philippines - With the surprising 7.1 percent growth of the Philippine Gross Domestic Product (GDP) in the third quarter, the local real estate industry and micro, small and medium enterprise (MSME) sector both claimed to be the key drivers to increase the spending capacity of the Filipinos.

Robert Go, director of Philippine Retailers Association – Cebu Chapter and owner of the Prince Warehouse Club, said that the small-scale businesses have felt the economic development with the enhanced capabilities of consumers to purchase products and services that could be comparable to last year.

He added that the rising infrastructure developments in the locality are evident to the improved confidence level of both local and foreign investors in the country, thus adding to the creation of employment and wealth opportunities.

With such positive impact, he cited that improvement of poverty level among Filipinos could be felt at present.

Vice President of Filipino Cebuano Business Club Vice President and Mr. Liempo owner Cesar Suan considered the MSME sector as the big contributor to the GDP growth since they comprise more than 90% of the economic activities and establishments nationwide.

Having such figure, he said that it also contributes to the increase in employment rate that is trickled down to the notably high buying capacity of consumers.

He cited that people tend to buy his products earlier starting on the month of December compared to last year which peak selling period for holiday season began on the second week of December.

“The higher the demand, the advanced is our sales. It also boosts the number of businesses put up, jobs created and spending capacity of our customers,” he continued.

With 87 outlets all over the country, Suan owns 39 Mr. Liempo stores and employs 40 workers. 

Suan further encouraged aspiring entrepreneurs to venture into franchising for easier entrepreneurial experience since it is already provided with the business system by the franchiser.

With an average investment from P50,000 to P250,000, he added that only management and discipline are required for a franchisee to continue the business.

Encouraging Filipinos to venture into the business arena could help increase the GDP growth rate of the country, he said. 

He further advised the Philippines to avoid complacency in the global market since competition is still present.

Meanwhile, Camella Visayas Operation Head Ma. Pamela Gako said that the real estate industry has played a significant role in the economic growth of the country with the provision of projects, contracts, and jobs.

“In every project that we launch, we tap the network and contractors, we recruit several agencies and we employ workers. By itself, we help grow the economy,” she said.

She also described Cebu as a booming and not-yet saturated market for the industry since a growing interest from locals to buy their own houses could be noted.

“Unlike condominiums, people still want to live in their own houses, have their own title, garden and residential area. People still go for a horizontal project. Iba pa rin ang dating ng house and lots,” she added.

She further noted that even with the economic growth, property values will never depreciate so long as properties continue to be developed.

Cebu Landmasters, Inc. Chief Operating Officer Jose Franco Soberano, on the other hand, said that around 23% of the 7.1% GDP growth could be attributed to the construction industry with the increase on construction-related activities at present.

He cited that the real estate industry continues to grow as it is driven by demographics which reflects the improvement to the consumption of Filipinos and demand for real estate investments.

“Given the better location, there is always the demand and there will be no bubble so long as there is the demand,” he concluded.

With its Base Line Residences project alone, the company has employed 500 laborers.

According to the National Statistical Coordination Board, economic growth drivers include a strong BPO sector, booming construction, increased consumer and government spending, and external trade. (FREEMAN)