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BY GLENDA SOLOGASTOA
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ILOILO City – SM Group will put up a business process outsourcing (BPO) tower in this city next year, announced Hans Sy, son of SM Group founder Henry Sy Sr.
Sy was in Iloilo on Nov. 11, 2016 to lead the opening of SM City Iloilo Southpoint, the mall’s 2-storey expansion complimented with park and fountain.
This plan only shows that the SM group is not threatened by the possible risk seen on the Philippine BPO industry as Donald Trump, who pushes for US job protectionism, won the presidency. Based on Bangko Sentral ng Pilipinas data, as reported by business.inquirer.net, it was estimated that 70 percent of BPO revenues were sourced from the US.
Sy is confident that the BPO industry will still grow in the country.
“I won’t say it won’t have total effect. Let us be practical, on business side, the BPO labor cost even on our standard is even considered high but [if you] compare it with the US, it is still very, very cheap. I’m not sure in terms of business, if it would be very practical for them to bring it back to the US unless they think of some incentives for the operators to entice them to go back,” said Sy.
On the other hand, Sy further said the market share of the country’s BPO sector to the total world market is actually still very small, that is why they have so much confidence that it will still grow.
“I still believe that there is still growth, may be in a bit slower pace, but growth will still be there. I myself have not stopped any of our BPO buildings that we’re putting up in MOA [Mall of Asia], Megamall, North Edsa, Fairview and Iloilo. I have not stopped or slowed down,” he said.
According to Sy, SM will start the construction of a 200-bed Park Inn Hotel in the first quarter of 2017.
“As a matter of fact the last time I was here was about six months ago. And I kind of regretted that I should have come earlier and see for myself. The way we do business here, we are very hands on and I saw potential in it. That was why we immediately went on putting up the BPO tower. So we are continuously expanding here,” Sy said.
The hotel is expected to be operational within two years and will be connected to the Southpoint building.
The Southpoint, which has a total land area of 7,541.96 square meters, houses 24 tenants, which mostly include restaurants and cafes.
The Southpoint and other future plans for Iloilo City are proofs that SM Group continues to be confident with the city’s growth.
“I always believe property development is always talking about future. And I have very high confidence that Iloilo will do very well,” he said./PN
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