Manila’s After Hours Economy

The outsourcing of customer service and information-based jobs to the Philippines has created a new upper middle class. Broadly classified as business process outsourcing (BPO) workers, these young (19-30) and educated Filipinos have enjoyed a sharp rise in spending power thanks to the combination of relatively high foreign country wages and relatively low domestic standard of living costs. They also tend to start working late at night because of time zone differences with the overseas markets they are serving. This is creating a lucrative opportunity for businesses willing to work the graveyard shift (22:00 – 6:00) and is transforming life in Manila after hours.

Midnight rush hour-like traffic is becoming frequent on the city’s major roads. Fast food chains such as Jollibee and McDonald’s are now open 24 hours. Convenience stores near BPO centers have been reporting a significant increase in late night condom sales. Major local real estate firms have not only adjusted to later operating hours for their shopping malls, but they are also beginning to merge retail, residential and commercial office spaces into singular mixed use community properties. In the future, more Filipinos may live, shop and work in the same multi-purpose mall.