Colliers Urges Government To Accelerate PEZA Approvals
Colliers International Philippines has called on the government to quickly process economic zone accreditation applications, in order to prepare for a slowdown in online gaming investment following China’s crackdown on the industry. According to Richard T. Raymundo, managing director of Colliers, there is a need for more PEZA-recognized space and this can be addressed by accelerating approvals. Raymundo said that Metro Manila will build about 700,000 square meters of new office space this year, of which about 225,000 square meters will be PEZA-compliant. However, only 62,000 square meters of PEZA-approved space will be available for occupancy, as 163,000 square meters are already pre-leased.
Raymundo said the remaining space is not enough with the growing demand, so the industry needs more buildings to be PEZA-accredited. He said quicker processing is one way to address the possible fall-off in online gaming business after China planned to place POGO firms in self-contained designated hubs. Raymundo said China’s move is expected to lead to a decline in office space take-up in the future, but pointed out that the space to be vacated by POGO firms can be used by other occupiers, as demand continues to grow.
