China-Based Firms Are Looking at Philippines for Backup Offices

(Bloomberg) -- Multinational companies mainly based in China are looking to set up backup offices in the Philippines as part of their business continuity plans, according to broker Leechiu Property Consultants.

“These corporations intend to set up disaster recovery centers in the country,” Chief Executive Officer David Leechiu said in a statement on Thursday. They are drawing from the success of online casinos that employ thousands of Chinese in the Philippines, he said.

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• Deals for office spaces in the first quarter dropped 47% year-on-year to 157,000 square meters, according to Leechiu’s report. Workspace requirements being transacted now and likely sealed in the second half would total about 636,000 square meters.
• Traditional outsourcing and offshore gaming operations will rebound in coming quarters or once travel bans are lifted.
• Lockdown of main Luzon island reduces threat of office supply glut on construction delay. The forecast for new workspace supply this year was cut by 44% to 842,000 square meters from a previous estimate of 1.498 million square meters.

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