April 21, 2008

Manila’s After Hours Economy

by Jason Tan in Local, Trends, Trends In Asia, Lifestyle, Work & Business, Retail

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.

3 Responses to “Manila’s After Hours Economy”

skiper
Posted from: 210.4.41.224
April 21st, 2008 at 7:11 pm

Thats life of a call center agent in the philippines, one more thing, drinking beer in the morning after work especially if theres an occasion. :)
Datu Daku
Posted from: 58.69.217.138
April 21st, 2008 at 8:43 pm

I am a security and safety professional in Makati and one of my observations with the rise of BPO in my country is the increase in crimes against property mostly with call center personnel as victims. Can the industry do something against this? I pity the young professionals whose graveyard shifts means going home in blinding daylight only to be robbed of their honest day’s…err, night’s?…income. Nonetheless, they make the city hum.
Jason Tan
Posted from: 124.106.132.53
April 21st, 2008 at 9:52 pm

Hey Datu, safety is definitely an issue and this is actually one of the main reasons that retail, residential and office are merging into one space in the Philippines. Ayala, SM, Megaworld and Robinsons are making walled gardens so-to-speak to keep the high value office staff of their tenants isolated from late night crime. This also helps their mall tenants get a more captive retail audience, which would then allow them to charge higher rent. It is a bit cynical but it is a solution all the same.