An Interview with RGV on The Outlook of the Philippine Property Market
As of January, 2015
By Dr. Jaime A. Cura
Editor of the Real Estate Monitor (REM)
And Executive Director, PhilRES
(Published in the REAL ESTATE MONITOR, a regular publication of the RGV Group of Companies that keeps track of developments, trends and best practices in the Philippine land and property market. It is published online for select clients and allied organizations of the RGV Group)
For its maiden issue, the Real Estate Monitor (REM) interviewed Rodolfo G. Valencia, a widely-recognized and highly-respected real estate icon in the Philippines and multi-awarded public official who served for 25 years as provincial governor and congressman of his province, Oriental Mindoro. To friends and associates, Valencia is best known by his initials RGV.
RGV began his real estate business in the early 1980s and, within two years, grew his company into the list of the top 1,000 corporations and top 600 taxpayers in the Philippines. He established a reputation for expertise in Marketing and Project Management of real estate in Metro Manila and the CALABARZON. He was also considered the most successful real estate broker in the Philippines specializing in “jumbo deals”. The RGV Group was the largest company of its kind, with close to 2,000 real estate practitioners, financial and investment analysts, legal land experts, architects and urban planners, and engineers and contractors in its fold.
It is from the context of such background and perspective that The Real Estate Monitor (REM) sought Valencia’s views on a wide range of developments and issues concerning land, real estate, and the property market, with an eye to the future of the market in the next several years.
REM: As 2015 unfolds, how do you size up the property market in the Philippines?
RGV: I usually like to look at the signs that I see in the present in order to gauge what the future has in store. There are clear signs that augur well for the Philippines, both as a sovereign economy, and as a global real property market.
To me, the news reports and headlines are quite telling in this respect. We keep track of such reports in our company. I have uploaded some of these into my iPad. Here’s one that says “The Philippines is Asia’s Bright Spot.” (New York Times). There are more detailed reports in the business sections of local media. As I scan my e-list, I see some of these headlines. Let me read a few:
“World Bank Raises 2012 PHL Growth Outlook to 6% and 2013 to 6.2%”
“In ’13, PHL Growth May Be Second to China, Says Think Tank”
“PHL to Buck Trend of Slowing AsPac Growth – S&P”
“PHL Gets 3rd Investment Grade”
“Strong Q1 Results Boost Market”
“First-Quarter Remittances Climbed 5.6% to $5.1 B – BSP”
“PHL posts $274-M BOP surplus in April”
“Philippines Capital City a Rising Star for Real Estate Investment”
“BSP On Guard Against Asset Bubbles”
“No Property Bubble - Banks”
“BSP: No Evidence on Real Property Bubble”
“Q1 Tourist Arrivals Hit Record”
“FDI’s Rise to $436 Million in February – BSP”
“FDI seen rising in H2”
“Gov’t Eyes Revival of Industry Sector”
Such headlines are typical of many news reports and analyses in both local and global media. They attest to global recognition that the Philippines is no longer “the sick of man of Asia” (as it was derisively described for nearly three decades). Instead, it is now hailed by the leading global financial institutions as one of the more stable economies and favored property markets in the world today.
REM: How long can this glowing picture of vigorous growth last? Which of our real estate products are our best sellers? And how competitive and sustainable are they?
RGV: To answer your question, it may help if we step back a little bit and consider some of the salient aspects of the current economic growth rate and the real property boom in the PHL.
Take a look at the Residential Market. You will see no let-up in the construction of residential and office condos. Condo living has now become a part of the Pinoy lifestyle. Among the prominent buyers of our new residences are our OFWs whose cumulative economic power is recognized as one of the biggest boosts to our national economy. These OFWs are buying condos as second homes in urban centers.
Also, see the vigorous Competition among Developers. In Project Design & Planning, they are trying to outdo each other in the Integration of “LIVE-WORK-STUDY-PLAY” and the application of Green Technology in their projects. You will see this in the Features and Amenities that they design into their projects. They are adopting Globalized Brands with foreign-sounding names. Pricing of units has become more competitive. And the choice of Project Location is more deliberate. Easier and better access to public transport and peace and order in the neighborhood are key considerations in the choice of location.
The Office Market is also more than vigorous. The Business Process Association of the Philippines tells us that current demand for office space for business process outsourcing and offshoring companies that are relocating in the Philippines has regularly outstripped supply. This has led to the development of new business districts with offices, retail outlets, housing, and leisure facilities in cities and major towns in practically all the regions of the Philippines. These new business centers have become catalysts for new urban development areas.
Both new townships and new business districts are drawing investments in new shopping malls and convenience stores outside of the metropolitan centers.
REM: Surely, there must be some critical concerns among the developers and buyers of these condos and new town units. Can you cite some of these?
RGV: Indeed, there are. Offhand, I can cite the growing scarcity and escalating price of land. Within the metropolitan area, there is less and less land available and prices continue to escalate. This is perhaps one of the reasons why high-rise projects are proliferating. The land owners and developers try to maximize the returns on their investment by going higher and adding more floor area to their projects.
Another concern is what I would call the over-stretched “carrying capacity” of urban centers. Evidence of this is all over the place – worsening traffic, breakdown in basic services (such as water, waste disposal, etc.), erratic and costly power supply, and breakdown in peace and order and neighborhood security.
REM: In terms of new developments, do you see a distinct preference among developers and buyers for going up rather than spreading out?
RGV: Not really. The high-rise structures just catch the attention more easily. But the development of subdivisions continues to be vigorous. As the situation within the metropolitan urban centers deteriorates, there is good reason to move out to places where there is more reasonably-priced land and there are new chances to avoid the mistakes of earlier projects in the urban core.
Thus, we are seeing the emergence of new horizontal developments which are now called Townships. These are new horizontal communities, with residences, commercial centers, offices, and other facilities like schools, recreation, leisure, and entertainment outlets, and the like. In other words, they provide a live-work-study-play environment within self-contained communities, where open space can be better planned and managed. This would include the roads, walkways, and parks.
In general, I think it is safe to say that Filipinos still prefer single-detached homes and townhouses in well-planned subdivisions over high-rise living. For developers of these new townships, the key factors of competition would include location (for easy access to main highways and/or public transport), amenities and facilities (educational, cultural, commercial, services, and the like), pricing, and financing schemes.
In this regard, there are some good news for townships developers. I think we can now look to better inter-connection between urban centers and urban fringes. The Center for Public-Private Partnership (PPP) has announced the roll-out of several PPP projects, especially for infrastructure. These include expanded superhighways and toll roads, new roads and bridges, new and/or improved airports, and the planned expansion of railways,
We note the increasing interest and participation of the big players in the infrastructure sector. These include Manny Pangilinan’s MIPC and MPTC, Ramon Ang’s San Miguel Holdings, the Zobels’ Ayala Land, and the Sys’ SMDC, to cite a few.
REM: Do you see a distinct preference for specific markets?
RGV: From our vantage point, we see that all target markets are active – from low-cost to medium-range to high-end. There is a clear trend towards mixed developments and mixed markets.
Among the housing categories, the low-cost and socialized housing sector is still the largest and the most active due, perhaps, to the large housing backlog in our country. The medium-range category is becoming increasingly popular with the middle-class, which includes the yuppies, corporate executives, and new entrepreneurs. The high-end or luxury category has a very distinct target group and consists of both local and global buyers.
REM: Can you tell us a bit more about the so-called Global Brands?
RGV: You must have noticed the proliferation of foreign-sounding names for the local projects, particularly among the big players. Century Properties, Ayala Land, SM, Megaworld, Eton, Vistaland, and Robinsons Land are, perhaps, the leading exponents of these global brands. This is why you see such names as Versace, or Milano, or Trump, Paris Hilton, and the like.
Is this a sign of colonial mentality? Not really. It merely recognizes the fact that we are a new player in the global property market. Some well-known names locally may not be as recognizable internationally. Our biggest billionaires are not necessarily among the biggest globally. But since the developers are targeting global markets, it makes good marketing sense to associate their projects with names of either personalities or places that are more familiar to the global buyers.
The adoption of global brands has also encouraged innovations in marketing strategies and tactics. For instance, sales activities are being taken to the property capitals of Asia, the Middle East, North America, and Europe. Our sales teams are either traveling more often to those capitals, or select sales representatives from those capitals are being hired to market our inventory. We hear of bulk sales being transacted through middlemen who travel frequently to our country, familiarize themselves with out emerging products, make reservations, and actually initiate purchase and payments for investor groups that provide the funding.
It is safe to say that, based on marketing results, the global brands have helped put the Philippine property market on the map of luxury properties in Asia.
REM: Speaking of funds, what can you say about the availability of real estate financing today?
RGV: One big reason for the burst of investments and projects in real estate is the availability of financing. There are investible funds from different countries in the world that are being managed by global fund managers. They shop around for viable projects and one of their favorites is real estate development. Some of these funds have found their way to the Philippines through joint ventures and partnerships or, simply, through the capital market, and have been a big help in providing additional financing to our local developers.
Additionally, I think it is generally recognized that our local banks are awash with cash. Because of this, both developers and buyers prefer to seek financing through the banks, and there is quite enough for this purpose. For one thing, it is usually easier to transact business with the private banks than the government financing institutions.
One concern, of course, is that some of the big players in the real estate industry, and, therefore, borrowers of capital, are also the owners of banks. This could lead to over-borrowing or lax credit checking, and the like. We are fortunate that the Bangko Sentral Ng Pilipinas has been quite effective in closely monitoring and regulating real estate loans from the banks. The BSP is recognized internationally for its effective role in ensuring a stable fiscal policy in our country.
One continuing financial challenge in real estate and housing is the provision of credit for low-cost and socialized housing. By the nature of the market for this particular category, and because of its size, government has to step in because the private sector may not find the narrow margins for profit too attractive.
Unfortunately, government has not been able to come up with a more vigorous and attractive funding program to attract more developers of low-cost and socialized housing.
REM: Let’s talk about the other markets in the real property sector. What can you tell us about the Office Market?
RGV: The Office Market is alive and well in the Philippines. The demand for office supply continues to be strong, mainly from the BPOO (business process outsourcing and offshoring) sector. The BPOO business is spreading out over the archipelago. This is why I like to call it the great equalizer of development. The investing companies are not concentrating on the traditional urban centers. They are going to cities and towns that were not previously known as global business locations.
By the way, there is also new demand coming from the so-called “Middle Office” sector. This refers to corporate and regional headquarters of global companies that are now relocating to the Philippines, most notably the USA, Europe, the Middle East, Australia, Japan, South Korea, Thailand, and even Taiwan.
Our economic planners also seem to have awakened to the fact that our GDP growth rate has been mostly dependent on OFW remittances and the services sector. There is a new consciousness of the importance of reviving our industrial activities, particularly manufacturing for both domestic and global consumption.
This is now leading to the planning and construction of new industrial estates or the expansion of existing ones to accommodate new locators.
REM: Are there other markets that have become catalysts for the development of the property market?
RGV: Well, I would like to cite one of the obvious markets that has greatly stimulated real estate development, and vice-versa. This is the tourism market. Both global and local tourists have increased by leaps and bounds in all regions of the Philippines. Over 4 million foreigners visited us for the first time in 2012. The Department of Tourism says it is targeting 10 million by 2016.
This naturally calls for more accommodations (hotels, resorts, pension houses, and the like) as well as meetings, convention, conference, or exhibition facilities. Even in our rural areas where natural wonders and assets abound, there is need for world-class amenities and facilities for eco-tourists. And, of course, for some time now, the Philippines has been mentioned as a competitive site for medical tourism and retirement communities for the aging population of the developed countries around the world.
All these will require a more vigorous implementation of infrastructure projects (airports, seaports, highways, and roads to ensure seamless connectivity from point of arrival to destination to point of departure.
Related to a robust tourism market is the emergence of the “entertainment city” concept of development. We see this now at Newport City in Villamor Airbase, Pagcor City in Paranaque, Aseana City in Pasay and Paranaque, The Circuit in Makati, and the like. The Entertainment City in each instance is made up of mixed developments (residential, commercial, leisure, and entertainment) that attract huge investments from global players in partnership with our biggest industrialists and developers.
For those dealing in land, the Tourism Act of 2009 provides for a still largely untapped opportunity through the Tourism Enterprise Zones. These zones are treated similarly as the export processing zones of the PEZA when it comes to incentives. These are new development hubs with locator enterprises as catalysts that spur new housing and other community amenities and facilities. They could be new venues for the “live-work-study-play” model of development for the tourism market.
I would also like to cite the potentials for the real estate market in agribusiness. There is a huge global market for agricultural produce, livestock, and fisheries. World-class cultivation and processing of agricultural and marine products for local and global consumption requires large, consolidated, and well-planned parcels of land. Our economic planners should be more cognizant of the need to return to more vigorous agro-industrial development alongside industrial development.
REM: With your long and in-depth experience as real estate businessman and government executive and policy maker, what are the other land-related challenges that you continue to address and for which you have been a tireless advocate?
RGV: As a legislator for more than a decade, the huge housing backlog in our country remains a challenge that cannot be ignored. You may be interested to know that I was involved either as main author or co-author of several pieces of legislation that aimed to push more vigorously for reforms in our housing program, particularly with regard to production, regulation, financing, and marketing.
Some people refer to me as the Father of the Amended Pag-IBIG Law because I authored the amendment of the law that originally established the Home Development Mutual Fund in order to expand the coverage and scope of the Fund as well as the benefits and incentives for its beneficiaries and managers. My objective was to make the Pag-IBIG a more proactive and vigorous catalyst for housing production through creative financing facilities. I have also co-authored the Comprehensive and Integrated Shelter Finance Act (CISFA).
But even before housing production, I have been deeply involved in bringing rationality and purpose to the use of land for our towns and cities. Thus, I have been a tireless proponent of Comprehensive Land Use Planning (CLUP) as the basis for the comprehensive development plans of local governments and main reference point for the development of new real estate projects.
We need to draw development away from the congested urban centers. We need to rationalize and relate the multiple “pocket developments” of private developers to a master plan that includes commonly shared infrastructure and basic utilities. It is an unending ticklish job to balance multiple and apparently conflicting sectoral demands, and one potent tool is a CLUP that is well done and decisively implemented for compliance by all sectors.
I was involved in monitoring the development of a purported National Land Use Act that seemed to favor certain sectors over other equally, if not more, active contributors to the national economy. Some said the original draft was heavily left of center. It raised alarm among investors and developers because of its stringent interpretation of protection land use over the uses of production, settlement, and infrastructure.
Among my last acts as a congressman was to block the attempt to railroad its passage in the Legislature and appeal for a sober formulation of a land use legislation that is equitable to all sectors of the citizenry and facilitates the active participation of our nation in a globalized economy. Fortunately, a more sober version of the proposed bill seems to be emerging in the Senate. We plan to continue collaborating with our legislators to craft the law that the country needs in this regard.
Another continuing challenge is the Creation of a Department of Housing and Urban Planning that will address the housing backlog forthrightly and effectively. This is a bill that has long been pending in Congress. Unfortunately, it has fallen victim to political horse-trading and misplaced priorities. Even as a private citizen, I feel there should be no let-up in our efforts to push for the passage of this law.
A by-product of a weak national housing and shelter agency is the anemic response of government to the urgent need for the Relocation and Resettlement of entire communities who have fallen victims to the ravages of climate change and natural calamities. In this regard, we have to recognize the urgent need to decongest the primary urban centers. We need to relocate entire communities from hazardous areas and to new well-planned settlements where they can begin a new and productive life. This effort will require expert Syndication of Land Assets as sites of those new communities with appropriate interconnection with the more developed urban centers.
REM: Among your last acts also as legislator was your authorship of the Real Estate Act of 2009, or the RESA Law. How has this law affected the participation of the real estate service practitioners in the boom that we are currently experiencing and which everyone hopes can be sustained?
RGV: In the face of so much opportunity and success in the Philippine property market, the developers have to be assured of reliable and credible support from the players in real estate marketing. These are the consultants, appraisers, and brokers, and the salespersons that operate under the supervision of the brokers.
The RESA law aims to professionalize these players. It makes licensing by the Professional Regulation Commission (PRC) a requirement for anyone to practice as a real estate service practitioner. It also makes membership in an accredited integrated professional organization (AIPO) mandatory for all licensed professionals in this sector. It mandates continuing professional education and compliance with a national code of ethics and responsibilities for all such professionals.
Although change is always slow to take place, some important gains and headway have been achieved in our sector since the RESA began to be implemented in 2011. The Philippine Institute of Real Estate Practitioners, Inc. (PHILRES, for short) has been chosen by the Professional Regulatory Board for Real Estate Service (PRBRES) under the supervision of the PRC as the duly constituted AIPO, or the accredited and integrated professional organization for the real estate sector.
PHILRES now has the largest number of licensed professionals in the country - almost 10,000 members distributed among more than 50 chapters in the major cities and towns of the archipelago. It has a continuing development program (CPD) that conducts continuing education seminars and learning sessions for its members. It has formulated a National Code of Ethics and Responsibilities that now awaits adoption by the PRBRES and the PRC for proper compliance. It screens all applicants for a PRC license or identification card by issuing a pre-requisite certificate of membership in good standing before issuance of the license or ID. It operates a national office and its national board of trustees monitor developments in the industry and maintain liaison with all the members nationwide.
All these give assurance to the land owners and developers that the people whose professional services they hire are competent, current, credible, and trustworthy to transact business in a manner that is honest, fair, and beneficial to all parties concerned.
In the course of my visits and speaking engagements in various parts of the country, I have heard testimonies of new professional real estate service practitioners. They tell me about their sense of pride and self-confidence in facing their clients. Some even show evidence of newly-acquired wealth coming from their business. On the other hand, developers have been quick to see the benefits for their businesses of well-trained and highly professional consultants, appraisers, and brokers who oversee their sales personnel. Proof of this is the support and encouragement these developers have given to their employees to study and take the licensure examinations and become full-fledged professionals.
Our top concern, nowadays, is to help our members tool up for global competition with the advent of the ASEAN Economic Community and prepare to be fully involved in the process of ASEAN Integration insofar as it involves real estate and the property market.
REM: Can you tell us more about your views on ASEAN Integration? Is this good or bad for the Philippine property market?
RGV: Depending on how we prepare for it or take part in it, the advent of ASEAN Integration and the ASEAN Economic Community should be beneficial for our property market.
ASEAN integration offers immense business opportunities for our real estate developers and service providers. Estimates of the economic benefit from such integration place the combined regional GDP at US$2.5 trillion, and intra-regional trade at $1 trillion.
Our enlarged market within the region will consist of 600 million people. We can manufacture our products and market them from anywhere in the region and move them to any point within the region free of tariff and non-tariff barriers. A borderless economy, so to speak.
It boggles the mind. But it will not happen overnight. The process will be step by step, sector by sector. It has to happen on the ground, through people-to-people relationships – the ASEAN people getting to know each other, working with each other, and trusting each other. In a region where there is a diversity of cultures, ethnicities, and religions, building relationships is easier said than done.
So, we must be prepared for it. Some people are afraid that the more advanced economies or business organizations may just gobble up the small ones. Others fear that we may not be up to par with the competition. But there are many others who are excited about the prospects and are eagerly preparing for it.
We are now trying to help the real estate service professionals develop the necessary skills and identify our competitive edge and unique selling propositions (USP), while discovering the basis for partnerships and alliances with our ASEAN counterparts. We are encouraging them to adapt to fast-paced changes in technology and modern management. Our training programs include the use of modern marketing tools and collaterals competitively and ethically. Information technology must be at our fingertips – whether in the form of access to websites, emails, social media, and the like.
We must know how to go where the markets are – through partnerships with international affiliates, road shows, participation in international conferences and seminars, and the like. In the face of globalized competition, our Filipino professionals must learn teamwork, quick response to opportunities, and focused business development in accordance with global best practices.
REM:The present boom or bull run has lasted longer than expected. Are there particular factors that you are monitoring that may end the boom sooner than hoped for?
RGV: I guess those factors will be similar to those that are being monitored by the business community at large. I could mention a few, in no particular order.
For instance, the uncertain quality of leadership in our government that could diminish the confidence of investors and the business community. We are headed towards another national election and, as the fever heats up, the mudslinging that has been a characteristic of our political exercises does not give much encouragement about the kind of leaders we might expect.
I think our people are aware of the negatives in our political culture, such as, too much politics of self-interest, dynasties and cronies, lack of credibility of election results and serious doubts about the electoral system, and the poor quality of emerging candidates.
For the business community, this is a serious cause for concern. We need leaders that can effectively address issues that have bedeviled business practice in our country. These include: 1) erratic and inconsistent public policy and regulation, and judicial legislation on economic issues, 2) the use of tax powers as instrument for political and economic vendetta, instead of growth and development, 3) uncertainty of contractual agreements and obligations, 4) myopic and biased national land use policy and regulation, 5) lack of central planning and inadequate use of modern technology for efficiency and effectiveness, 6) over-stretched carrying capacities of our primary urban centers and the difficulty of access to land for the development of new townships and settlements, 7) lack of efficient mass-transport systems, and 8) weak systemic response to natural and man-made calamities.
It is a very long list and one can lose heart if one takes it all in all at once. But I cite the list just to show you that our sector is very much in touch with reality. And that, despite so many issues, we seem able to go ahead and succeed anyway, as the facts and figures show.
REM: What are the other top concerns?
RGV: Well, maybe I can cite a few more. This would include: 1) The effects of geo-political challenges from China as well as the BBL dynamics; 2) Effective BSP management of the peso, inflation, and regulation of real estate loans; 3) The effects of the turnaround of the US economy on global money that is being invested in emerging economies like the PHL; 4) Prompt and competent decision-making on the public-private partnership projects related to infrastructure, particularly with regard to airports, rail transport, and road transport connectivity; 5) Improvements in the educational system; and 6) The passage of the economic Cha-Cha
REM: We have solicited your views on the Philippine property market as a whole. Can we ask your thoughts on your own home province of Oriental Mindoro where you led in the development of the province for almost a quarter of a century? Do you see any participation of far-flung provinces like Oriental Mindoro in the overall development of the property market?
RGV: Oh, most definitely. And I’m glad you asked that question. I know we don’t have much time or space to discuss Mindoro development more fully at this time, but let me cite a few instances that should give you a hint of how much an island like Mindoro can contribute – or has been quietly contributing – to the overall progress of the Philippine property market.
Do you know that the island of Mindoro is larger than either the entire region of Metropolitan Manila or the city state of Singapore? And that it has some of the most diverse natural resources, including some of the largest mineral deposits in the world?
Now that Metro Manila is bursting at the seams and Singapore is almost totally dependent on world-class services as the lynchpin of its economy, the well-planned development of a resource-rich island like Mindoro provides many exciting prospects for the property market in the coming years.
When I was governor of Oriental Mindoro I took a firm and uncompromising stand in defense of the watersheds on our island against illegal loggers and indiscriminate miners. This is why Oriental Mindoro has come to be known as one of the three truly green provinces in the entire Philippines.
Because of this, we have the most diverse natural resources that can be the basis of well-planned tourism hubs and destinations in accordance with global standards. We have well-preserved forests, rivers, lakes, and waterfalls, and flora and fauna of the richest variety. Puerto Galera is, of course, one of our better known destinations. But there are many more on the entire island. One of them is the cleanest and largest fresh water lake in the Philippines that stretches over 10,000 hectares in our town of Naujan, Oriental Mindoro. Yet, it is only a half hour away from white sand beaches that can rival that of Boracay.
If world-class Boracay has its fine powdery beach sand that lures tourists from all over the world, can you imagine what the far more diverse natural assets of Mindoro can offer? Even now, talks are underway with international groups regarding the need for more world-class hotels and resorts in strategic parts of the island.
This is why our efforts have been focused on infrastructure, particularly an international airport and several seaports, more roads and bridges, and modern land and sea transport systems to facilitate seamless travel to, from, and around the island.
We are also working to have more power plants that use renewable energy to boost power supply and keep costs at very affordable levels. For instance, a 48-megawatt wind power generating plant is now under construction and interconnection with the Semirara coal-powered plant by submarine cable is being pursued. As an island, we also need to ensure internet connectivity with the rest of the world through modern broadband facilities.
Throughout the period that I was governor and congressman, I advocated comprehensive land use planning (CLUP) as the basis for our local government development plans. Even after my official term of office ended, I am tirelessly pursuing the upgrade of the Mindoro CLUP to cover the entire island, meaning both Oriental and Occidental Mindoro provinces and all the cities and towns within them.
I am now talking to an internationally known urban planner to do the master plan of the entire island. We want to develop Mindoro as an agro-industrial hub, a tourism hub, and a world-class services hub. We think it can be a new Singapore, with very significant differences because of our rich natural assets which Singapore does not have.
Already, my group has been quietly developing a mixed development mass housing project in the city of Calapan which has brought the first regional mall and a new business center to the island. Dubbed Neo Calapan, it is now providing a completely new township to the capital city. More such modern townships with varying levels of sophistication are possible in both provinces of the island. Global BPO investors will find these new developments very attractive locations for their operations.
I have so much more to tell you about Mindoro. God willing, we could schedule another interview just on this topic.
REM: We have covered a lot of ground. We appreciate that you have been most accommodating with your time and your views. The range and depth of your perspective is so encompassing because of your unique background as an accomplished business leader and as a respected political leader. We are honored to have been given the chance to interview you. Thank you very much. Any parting shot?
RGV: I am thankful, too, to be given the chance to air my views on matters that are, and have been, of great importance and significance to me. We are fortunate that our economy, despite so many drawbacks, seems to be doing much, much better than expected. We take pride that the real estate sector has been very much a part of this astounding performance. All we want to do is keep doing what we do best and make sure more of our people enjoy its benefits.