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Friday, March 1, 2024

UP Diliman Professors Share Scientists’ Procurement Struggles at Senate Hearing




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College of Science (CS) Dean Giovanni Tapang held up a little white device as he finished his presentation. “This is a ₱150,000 component,” he described. “Isa lang gumagawa nito sa buong mundo, pero ang hirap pilitin sila na magregister sa PhilGEPS,” he continued, referring to the requirement that foreign companies must first register to the Philippine Government Electronic Procurement System (PhilGEPS) before they can sell products to local scientists.

Marine Science Institute (MSI) Deputy Director Dr. Irene Rodriguez explained that the small device is a resin that filters metals in water. “May budget tayo,” she said, “pero ang problema ko ay ‘yung resin na ito.”

This and other bottlenecks brought about by the procurement law, or the Government Procurement Reform Act (RA 9184), slow down research and development in the country. UPD leaders were invited to the Senate hearing to discuss the proposed revision of the procurement law at the House of Representatives on February 21, 2024.

Aside from Dean Tapang and Dr. Rodriguez, among those present were CS Associate Dean Dr. Eizadora Yu, CS Associate Dean Dr. Deo Florence Onda, National College of Public Administration and Governance (NCPAG) Dean Dr. Kristoffer Berse, NCPAG Assistant Professor Herisadel Flores, and NCPAG Atty. Lawrence Villanueva.

The procurement law, enacted in 2003, is a set of rules and regulations for using government funds to acquire goods and services. Although meant to deter corruption and promote transparency, the law introduces numerous problems for researchers and scientists.

Among the problems is that products become exorbitantly priced which hinders research progress. Dean Berse said that when a product cannot be locally produced, foreign-sourced products can be bought through local suppliers. But this method increases and even doubles the products’ prices. “In the event that no local suppliers are interested,” he added, “this will result in the loss of access to the target equipment.”

When researchers fail to procure the necessary equipment, they cannot meet project objectives and need to realign budgets. This will “ultimately delay the dissemination of knowledge and information and in providing solutions to our country’s pressing problems,” Dean Berse said.

Moreover, the procurement law impacts the retention of local scientists. “Once frustrated, they leave [the country] for greener pastures,” Dean Tapang said.

The amended procurement law aims to solve these problems. The revised law, for example, would allow for direct sales and direct acquisition of products in certain circumstances, bypassing the slow bidding process. Under the new law, the sole supplier of resin needed for Dr. Rodriguez’s research would not need to undergo bidding.

UPD professors fully support the amendments to the procurement law. They also proposed further improvements and recommendations, such as on how to counteract “abnormally low bids” or bids that offer equipment and services at suspiciously low prices.

One of the authors of the revised law, Senator Sonny Angara, stated that the law is already in its finalization stage and is expected to be finalized in the next two weeks.












New show highlights take center stage at WORLDBEX 2024!


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Mark your calendars! The Philippines' largest and most awaited event in building and design is back for its 27th edition. Get ready to propel greater heights and ascend boundaries as WORLDBEX 2024 takes place from March 14-17 at the World Trade Center Metro Manila and SMX Convention Center Manila. From local to international innovators, WORLDBEX delivers unparalleled leverage of advanced algorithms and personalized insights through various platforms, learning experiences, network opportunities, and new show highlights!



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With the theme "Drawn to Ascendancy," WORLDBEX 2024 promises to be a groundbreaking event, showcasing the latest trends and innovations in architecture, design, construction, engineering, real estate, and related industries. The diverse world of building and design through the dynamic environment of WORLDBEX is packed with engaging activities and captivating highlights that will surely fascinate your senses. 











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Don't miss these extraordinary opportunities to ascend innovative boundaries! Register for WORLDBEX 2024 today and join us on this exciting journey towards the future of the building and design industry. WORLDBEX 2024 is organized by Worldbex Services International, the leading event organizers in the country. Register for free through https://worldbex.com/

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Charting a stronger course: Metro Manila office to steer clear of 20% vacancy


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Colliers continues to note deals from traditional and outsourcing firms implementing a mix of flight-to-quality and flight-to-cost measures

Leading diversified professional services and investment management company Colliers (NASDAQ, TSX: CIGI) said in a recently held market briefing that the Metro Manila office market performed better than expected compared to initial projections. “In 2023, net take-up has more than doubled compared to the previous year as transactions continue to outpace lease surrenders. Despite new supply driving its marginal increase, vacancy posted as of end-2023 has averted the 20-percent level and is forecasted to stay within the sub- 20% level in 2024,” said Kevin Jara, Colliers Director of Office Services – Tenant Representation. Colliers continues to note deals from traditional and outsourcing firms implementing a mix of flight-to-quality and flight-to-cost measures. The office market has also seen more expansions (50% of total transactions) and new entrants (10% of total transactions) in 2023. Navigating the sub-20% vacancy landscape

As of end-2023, Metro Manila office vacancy reached 19.3%, marginally higher than the 18.7% recorded in Q3 2023, driven by completion of new office buildings and lease surrenders from non-renewals and pre-terminations. Despite this increase, the posted year-end vacancy remains lower than our initial projection of 21.2%. “In 2024, vacancy is expected to reach 19.6% as we project stronger demand for office space despite low pre-commitment levels in upcoming properties and expected surrenders from pre- pandemic leases. Assuming sustained demand from key office market drivers (i.e., traditional and BPO companies), Colliers expects that the office vacancy will remain in the two-digit territory for the next five years and projects a 14.3% vacancy by end-2028,” said Jara. Net take-up exceeds forecast, to increase by 20% in 2024

Given demand continuing to outpace surrenders, net take-up or absorption reached 279,800 square meters in 2023, higher than our initial forecast of a 220,000 square meters net take-up and the 110,500 square meters recorded in 2022. “Colliers is optimistic that net absorption will sustain its momentum in 2024 as we continue to receive inquiries for new setups, expansions, and relocations within the capital region,” said Vida Samaco, Colliers Senior Manager of Office Services – Tenant Representation. “In 2024, we project net absorption to reach 336,000 square meters, with the 20% increase based on pre-pandemic, pre-POGO average annual growth rate.”


Occupiers exercise flight-to-value strategy

With the prevailing tenant-leaning market, existing occupiers continue to secure new and high- quality office spaces in primary CBDs at lower rents, as evidenced by the rollout of their expansion and relocation plans. Based on Colliers’ data, 40% of transactions with known motivations were relocations and out of these relocations, 60% have implemented flight-to- quality/value (i.e., relocations to newer, higher-grade buildings). Traditional, shared services, and third-party outsourcing companies were seen implementing this strategy in Fort Bonifacio, Makati CBD, and Ortigas CBD. Colliers encourages tenants planning to expand or relocate their operations to take advantage of newly completed office buildings in business hubs that offer rental discounts. To capture future demand, landlords with presence in better performing submarkets may consider redevelopment of aging properties and/or building more quality and green spaces, given that sustainability is now a minimum requirement for occupiers in securing spaces.

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