Moratorium repeal to create 1.1M IT-BPM jobs in PH
MANILA, PHILIPPINES — The upcoming repeal of the moratorium on Philippine Economic Zone Authority (PEZA) applications for Metro Manila ecozones is expected to generate around 1.1 million IT-BPM jobs in the Philippines, said real estate brokerage firm Leechiu Property Consultants (LPC).
In a press release, LPC explained that IT-BPM companies have consistently driven the growth of Philippine real estate over the past two decades, with the majority establishing their headquarters in the nation’s capital city.
However, Administrative Order 18, implemented in 2019, halted new applications for Metro Manila PEZA ecozones, inadvertently creating an entry barrier for new IT-BPM tenants looking to set up in the metro.
Despite these constraints and the COVID-19 pandemic, the IT-BPM industry hired an estimated 265,000 employees from 2020 to 2022 and projects an additional 110,000 new jobs for 2023.
Lifting the moratorium will stimulate job growth and enhance the office sector, which has seen a net positive absorption in the Philippines. LPC predicts that an additional 2.8 million square meters (sq.m.) of office space will be available over the next decade, with IT-BPM tenants likely to remain the primary occupiers of these spaces.
Therefore, opening new PEZA locations in Metro Manila signals a substantial growth period for both the IT-BPM industry and the real estate market.
LPC’s statement comes as PEZA Director-General Tereso Panga said that the current administration appears receptive to lifting the moratorium within this year.
