Economy
 
COMMERCE AND INDUSTRY

Commercial Activities

Typical of cities in metropolitan areas, Mandaluyong has its own share of commercial strips and a central business district (Map 40). The former, mostly comprising of banks (Map 41), offices and service establishments stretched along public transport routes thereby serving both local consumers and passers-by from the neighboring localities. Major commercial strips of the city include the stretch of Boni Avenue, Shaw Boulevard, Libertad-Sierra Madre area, Kalentong, San Francisco, part of Martinez, Sgt. Bumatay towards Barangka Drive and Pinatubo towards EDSA.

The city’s Central Business District on the eastern portion of the city is concentrated in the EDSA-Shaw-Pioneer Quadrangle. Adjacent to the central business district is the High Density Commercial area comprising of establishments such as the Megamall, Shangri-La, Podium and the San Miguel Corporation headquarters.

The traditional neighborhood center, on the other hand, is replaced by groceries and convenience stores (Map 42) wet and dry markets (Map 43), sari-sari stores, medical and dental clinics, amusement places and other personal services dominating almost all internal roads in the city.

Industrial Activities

These activities are mostly concentrated within the EDSA-Shaw-Pioneer area and along Pasig River. Although prominent in the manufacture of foods, medicines and laboratory equipment, these industries are gradually declining in number, opting to relocate in newly-developed industrial zones outside the Metropolitan Manila.

In the Pasig River area, particularly in Barangays Namayan and Mabini J. Rizal, areas formerly industrial are now the sites for residential subdivisions and townhouses. In the EDSA-Shaw-Pioneer area, the transformation is toward a more economically profitable and globally competitive commercial activity.

Rate of Increase of Establishments

Given the above situation, it is reasonable that a comparison of the establishments in year 2000 and in 1990, counted at 11,177 and 10,658, respectively, yields a very low rate of increase of 4.9 percent. During the past five years, there is a slow but steady increase in business permits issued, averaging 2.72 percent as shown in Table 4.01. As further manifested in Table 4.02, this is merely due to the shift in the nature of activities and not from any negative factors that may affect business development in the city.

Table 4.01
Number of Business Permits Issued
1998-2002
YEAR
 TOTAL
% OF INCREASE
1998
10,886
1999
10,922
0.33
2000
11,197
2.50
2001
11,788
5.30
2002
12,113
2.75
TOTAL
56,907
(Ave: 2.75)

A great number of establishments consist of retailers and wholesalers which implies that the city’s economy is mostly pedalled by small-scale enterprises with capitalization below P 150,000.00 as manifested in Table 4.03.


        Table 4.03
Summary of Business Capitalization
Capitalization
 No. of Business
Above P 60 m
110
Above P 15 m – P 60 m
187
Above P 1.5 m - P 15 m
1,104
Above P 150,000 - P 15 m
3,754
P 150,000 and below
7,883
TOTAL
13,038

However, it is expected that the city development plan which provides business incentives and higher commercial density will attract more investors in the years to come.

The city’s Business Permits and License Office (BPLO) has projected income from these business establishments to reach P638 million by year 2007 (Table 4.04). This is slowly being realized with the upsurge of investments especially in the development of the Edsa-Pioneer area into a major economic zone that could generate income and propel further growth and development in the entire city.

Table 4.04
Projected Income from Business Establishments
2000-2007
 Year
Projected Income
(In Pesos)
2003
P 479,512,005.12
2004
P 580,209,526.10
2005
P 702,053,526.50
2006
P 527,463,205.60
2007
P 638,230,478.70


Investment Potentials

If the main criterion for a successful business is location supplemented by sound business support policies and excellent peace and order situation, Mandaluyong City is rated competitively with other prime areas in Metro Manila.

For instance, there is a good potential in local market as indicated by the rising urban productivity despite increasing population projection. A comparative analysis of the number of households and household incomes at the city and national levels and the GNP yielded a city product per capita increasing by over 30% in 1997 from 1994 figures as shown in Table 4.05. One consequence is the rising demand for commercial space resulting to rising unit cost of prime commercial land in the city. Similarly, the trend is increasing for unit cost of prime rental per month, while operating costs and statutory charges are dependent on capitalization and floor area occupied by each activity. By 1999, for a 36 sq. meter of rented space, the average cost of doing business in the city is as low as P 39,000.00 per month.

Moreover, as can be seen in Table 4.06, investment performances of the five major sectors per capita continuously increase based on five-year intervals while housing sector decreases due to limitation of vacant lands for housing development. Investments in the manufacturing industry show a modest but steady increase despite the shift in the economy to more service-oriented activities. Consequently, there are significant increases in the service industry and other activities ranging from 65% to 144%.


Table 4.06 Comparative Annual Investment by Sector: 1989, 1994, 1999
SECTOR
PER CAPITA INVESTMENT (in Pesos)
1989
1994
1999
Physical Infrastructure
495.38
35,736.93
38,900.09
Housing
252.94
212.07
181.95
Manufacturing
21,604.57
27,128.75
34,469.68
Services
53,006.22
95,090.31
157,144.67
Others*
46,875.41
44,971.42
109,798.16
* Others: amusement places, amusement device, advertising, ambulant stores, producer/importer, pawnshops/moneyshops and subdivision
                                 

To further illustrate the growing confidence of investors in the city’s economy, Mandaluyong is now host to two (2) major corporate headquarters with annual turnovers of over $100 M (P 5.15 B) and another eight (8) top establishments with annual turnovers ranging from $26 M (P 1.34 B) to close to $100M.

It is worth noting, that in conjunction to the influx of investments is the overwhelming increase in assessed values of real property in the city. Despite having constant land area coverage and minimal land tax rate increases, real property assessment values skyrocketed to as high as 451.29% in a span of ten years from 1988 to 1998 and another 55.02% five years hence in year 2003 (see Table 4.07). These can be attributed to the magnitude of structural improvements not only on prime lots but also at random parts of the city where mixed developments of residential and office/commercial condominium up to seven (7) storeys in height are allowable.

New investments that will soon redefine the city skyline are listed in Table 4.08.

Business Regulatory Measures

To regulate business establishments and facilitate transactions for business permits, taxes and clearances, the city government passed the following legislations:

• Revenue Code Ordinance
• Ordinances in License Plates/Stickers, CGL Insurance
• Regulations & Restrictions in Amusement and Fun Establishments
• Zoning Ordinance

INFORMAL SECTOR

Objectives

In response to the strengthening of global advocacy towards full protection and recognition of the rights of workers in the informal sector, the city government created the City Informal Sector Office through Executive Order 02 Series 2002 to carry out the following objectives:

• To spearhead organization of IS workers’ associations
• To facilitate regulation of IS activities
• To develop and maintain a comprehensive IS database
• To coordinate forums, dialogues between IS groups and LGU officials
• To promote importance of social protection for workers
• To ensure access to skills development and enhancement training programs
• To facilitate access to market and employment
• To facilitate development and improvement of IS support infrastructures and facilities e.g. tricycle terminals, market stalls
• To provide access to social protection, investments and credit
• Zoning Ordinance w/c serves as basis for the issuance of Locational Clearance.

Expected Impacts/Benefits:

• Augmented coverage of BPLO targets for a more efficient registration of business and industrial establishments
• Estimation of IS contributions to the economy
• Increased participation to formal social security schemes
• Accreditation of IS organizations with the IS Office
• Increased productivity/ entrepre-neurial spirit
• Availability of alternative credit options, discouraging IS workers from accessing/resorting to traditional/ illegal loan schemes

• Availability of alternative social security schemes

TOURISM

Attractions and Accommodations

Being centrally located in a most urbanized and inland metropolis has given Mandaluyong both advantages and disadvantages particularly in the Tourism sector. One disadvantage is the absence of sandy beaches, coral reefs and pristine sea and the absence of opportunity for outdoor sports and hobbies typical to those in the hinterlands of northern Luzon and other mountainous regions in the country.

In addition, being a not-so-old locality which only evolved as the spill-over effect of the sprawling development of the cities of Manila and Quezon, Mandaluyong has no historical spots to boast of save for a few landmarks listed in Table 4.09. See also Map 44.

On the other hand, Mandaluyong serves as an ideal stop-over place for tourists whose itinerary includes touring Metro Manila and its periphery. Several accommodations are available with ambience, accessibility and affordability highly competitive with those in the cities of Makati, Quezon and Manila. These accommodations, shown in Map 45, offer daily, weekly, and monthly rates with information readily obtainable through telephone and web inquiry. While nightlife is not as active as those in Makati, Manila and Quezon City, fine dining is available, making even an overnight stay in Mandaluyong as enjoyable as it is affordable. As of year 2000, tourists stay in the city at an average of two (2) nights, with personal expenses (including food and accommodation) averaging from P2000.00 to P5,000.00 a day.

Recreational Facilities

Foremost among the sports facilities in the city is the internationally known Wack-Wack Golf Course which is private and exclusive for members only. For the general public, open courts and sports gymnasiums (see Map 46) are available.

Arts and Culture

Previously, tourism was given low priority as evidenced by the lack of a local Tourism Development Plan and considering the absence of natural features to attract tourists. Today, taking advantage of the rich cultural heritage of the city, local artistic talents, growing interest in sports and availability of facilities, the focus has shifted to developing Mandaluyong as Metro Manila’s center for arts and culture.

As an initial step, the city has realized its cultural programs with other cities via the “sister city” agreement (wherein both Mandaluyong and its sister city will complement each one’s potential for tourism) and cultural exchange programs, as well as hosting various pro-active affairs (Table 4.10), some of which are already being done in the city on special occasions (Table 4.11).

In addition, historical artifacts and paintings of famous Filipino artists are on display for public view in the government-owned “Kaban ng Hiyas” at the City Hall Compound and in art galleries in SM Megamall in Ortigas Center. In the silver screen industry, Mandaluyong is becoming famous for hosting local and international film festivals as well as a favorite location for premiere showing of blockbuster films both local and foreign. On a closer perspective, the City Hall Complex is now frequent choice of the movies and television industry when doing films and TV series on location.

With the opportunity of media mileage through both silver screen and the boobtube, Mandaluyong aims to be known not only for its physical character but also for the competitiveness of its people in joining the elite sector of performing arts. This bold ambition is slowly being realized by the following achievements:

• The Mandaluyong Children’s Chorus

Founded in 1999, the Mandaluyong Children’s Chorus (MCC) is a training program aimed to develop and nurture the musically gifted among the underprivileged. The MCC has since become a spring of hope and pride with its talented trove of 8 to 15 year olds, most of whom are sourced from public schools. Remarkably, the MCC has become a name akin to world class performance.

There must be some truth then to the rumor that the MCC was among the precious few who stood in line when the heavens poured down a hail of finest singing talents.

In only four years, the MCC has drawn a proud list of achievements. Tapping the roster is representing the Philippines and winning a silver medal in the Children’s Choir Category in the 2002 2nd World Choir Olympics in Busan, Korea.

Only Selfless Love, a music video which featured the young choir internationalists, was adjudged Best MTV in the 2002 Catholic Mass Media Awards, a feat reprised recently with the prestigious 2003 Anvil Awards of Excellence.

They have worked in Concert Seasons of the Philippines Philharmonic Orchestra with Maestro Ruggero Barbieri and have had engagements with the Manila Symphony Orchestra II. They also had acclaimed performances of Leonard Bernstein’s Chichester Psalms, Gustav Mahler’s Symphony No.3 and Gabriel Faure’s Messe Basse.

A member of the MADZ et al, the largest network of choirs directed by members and alumni of the Philippine Madrigal Singers, the MCC follows a rigorous calendar of activities. From May to November, the ensemble is abuzz with its annual concert season. Between commitments, as laboratory choir, it is most sought after by Choral Conducting students of the University of the Philippines College of Music.

The MCC has collaborated with both seasoned and budding Asian composers. In many cases, the creative interaction not only has developed a bonding between them but has also helped collect new material that even adult choirs may find difficult to execute. Happily, the involvement between choir and composer continues even after the premier of the original compositions specifically written for the Mandaluyong Children’s Chorus.

• Mandaluyong Center for Performing Arts

Upon the arrival of the Mandaluyong Children’s Chorus from their triumphant stint at the 2nd World Choir Olympics in Busan, Korea, Mayor Benhur Abalos came up with the idea of institutionalizing the project, which was initially conceived for the less fortunate children in the city.

Buoyed by the victory, Mayor Abalos initiated brainstorming sessions to build up a strong center for the performing arts in the city, with masters-teachers being recruited to strengthen the musical and terpsichorean talents of the children of Mandaluyong.

In April 2003, the Mandaluyong Center for the Performing Arts (MCPA) was formally launched. Named director of the MCPA is Sebastian Trinidad, who pioneered obviously the Mandaluyong Children’s Choir.

It is a center that aims to develop the talents of Mandaluyong children and transform them into world-class performers.

Considered to be a landmark project of the Abalos’s administration, the MCPA is being emulated by other local government units (LGUs).

Successful applicants in the program went through rigorous screening by the faculty comprised of musicians from the University of the Philippines College of Music (UPCM).

Once accepted, the applicant is considered a scholar since he or she will be trained and given free quality instruction by the faculty and their talents will be enhanced through performances in the various MCPA ensembles.

These include the Mandaluyong Rondalla under the baton of Maestro Nelson Polvoriza, which won as awardee of the 2003 Metro Manila Filmfest for Best Picture, “Filipinas”. The Mandaluyong Choristers, under the supervision of choir master Shiayenne Dimaguilla, were recently billed together in a concert with Nyoy Volante at the Music Museum. The group is preparing to join the National Music Competition for Young Artists this year.

Another ensemble in the MCPA family is the Mandaluyong String Orchestra, under the supervision of Joshua Legaspi and Isidora Miranda (violin), Rommel Camba (viola), and Theodore Camba (cello). These four artists also make up the Mandaluyong String Quartet, which will release their first album this year.

Aside from the Sight Singing and Ear Training modules that are being taught to the scholars, programs for self development are also carried out through the efforts of operations manager O’ Neil Torres and guidance counselor Nancy Jurado.

Team building workshops and individuals as well as group counseling are done regularly to monitor the child’s growth in and out of the program.

Outreach activities to the community are also being done by the MCPA through the Bahaghari Concert Series, which had eight concerts staged last year and capped was with the awesome Pasko sa Langit at the Grand Atrium of Shangri-La Plaza.

These free concerts, otherwise called “informance” or “information through performance”, had its season opener February of 2004 at the lobby of the Kaban ng Hiyas.

With less than a year in operation, the MCPA recently made an expansion in the organization of the ensembles by opening a program for those who are in the 17-32 age bracket who wish to be a part of a choir. This gave birth to the Mandaluyong Philharmonic Choir. Also known as the Koro ng Bayan, the choir is under the direction of Joshibiah de Juan, a pioneer member of the San Miguel Master Chorale and arranger for the Philippine Madrigal Singers.

This summer, ART is KOOL is launched to gather talented children in the field of visual arts and train them under the supervision of winning visual artists in the city led by Reynaldo Amido.

A long-term plan is also in the offing, to come up with the Mandaluyong Symphony Orchestra. Judging at the rate things are going in the field of performing arts, this is not too far from reality because the groundwork has already been laid.

Beyond the quality music education and emulation that is being done by other institutions in our program for the cross section in our society, the MCPA is envisioned to carry out the values learned in the center and help create a community that lives in harmony and at peace.