Megaworld’s real estate investment trust (REIT) manager MREIT Inc. expressed confidence on Tuesday that the Philippine business process outsourcing industry will remain resilient even as US lawmakers push a bill penalizing firms that move call center operations offshore.
Speaking at the Philippine Stock Exchange’s Strengthening Access and Reach forum, Andy dela Cruz, MREIT’s head of investor relations, said the company “expects the BPO demand to continue growing, despite rhetoric and potential changes in regulations.”
Dela Cruz said the actual impact of the “Keep Call Centers in America Act of 2025” is uncertain, but the Philippines’ large pool of skilled workers and lower operating costs give it a lasting advantage. He noted that similar waves of anti-outsourcing rhetoric in the past did little to slow the sector’s growth.
“I think it makes more sense for them to still outsource to the Philippines, and hence we see the space to continue remaining resilient and to continue growing even with that rhetoric,” he said.
MREIT said office demand remains “constructive” for the rest of the year, led by BPOs and traditional firms. The company expects healthy take-up in both Metro Manila and provincial hubs despite elevated vacancy rates across the industry.
Property consultancy JLL recently reported that BPOs accounted for nearly two-thirds of office space demand in the first half, pushing total take-up up 80 percent year on year. Vacancy rates eased to 18.2 percent in the second quarter from 19.4 percent a year ago.
MREIT said it remains on track to expand its gross leasable area to 1 million square meters by 2027—three years ahead of schedule—through new infusions from parent Megaworld Corp.
Its office portfolio is expected to reach 600,000 sqm by the end of 2025, with expansion eyed in Cebu and Iloilo.
