By Alastair Mcindoe
Philippines Correspondent
alastair@sph.com.sg

 

In Manila

THREE of the world's 10 largest shopping malls are now in the Philippines.

The great malls of China - South China Mall in Dongguan and the Golden Resources Shopping Mall in Beijing are the two biggest.

But coming in a respectable third place, thanks to a 90,000 square metre extension that opened this month, is the SM City North Edsa in the Philippine capital.

A visit to a mall - and I'll say right off that I would not recommend SM City North Edsa - is a must on a trip to Manila, along with the old Spanish walled city of Intramuros and a baywalk stroll at sunset.

The country's jumbo-size mall chains - SM and Robinsons - were founded by Filipino-Chinese taipans: SM by Henry Sy; Robinson's by John Gokongwei. Both are living legends here, who helped shaped this country's vibrant retailing landscape.

The big malls typically have vast food courts; exhibition centres; multiplex cinemas, some with as many as 12 screens; amusement arcades; skating rinks or bowling alleys; health and wellness centres; and, of course, floors of shops from local retailers to famous international names like Marks & Spencer and Ralph Lauren.

On Sundays, Catholic masses in this predominantly Christian country are held in the walkways, where shoppers squeeze past worshippers.

Inside the box, there is not a lot of difference between the two chains: The SMs malls have a shaper look; Robinsons a cosier atmosphere.

Manila's first malls were built back in the 1970s. Rising disposable incomes among the middle-classes spurred a mall boom in Manila (population:12 million) over the past two decades. That malls are now springing up at a rapid rate in the larger provincial towns is an encouraging sign of how the economy is faring, despite the current gloom.

It is unlikely that malls would play such an important part in the lives of ordinary Filipinos - both for shopping and killing time - had it not been for the billions of dollars sent home by the several million Filipinos living and working overseas.

This year, their remittances, despite the global financial meltdown since the fourth quarter, is expected to exceed a record US$15 billion. That's about a tenth of the country's entire gross domestic product to put in perspective.

The hard-earned dollars of Filipinos working as house helpers in Singapore, English-language teachers in Thailand and nurses and searfares in scores of countries are not, of course, being merrily blown in the malls by their loved ones.

The bulk of the money goes on household expenses and the education. All the same, a tidy sum, nobody knows for sure how much, is keeping the tills ringing in the malls and providing a powerful incentive to build new ones.

To be sure, consumer spending has largely underpinned a long run of growth in the economy, which expanded an eye-catching 7.2 per cent in 2007, its best performance in three decades. Growth is expected to fall sharply this year and next because of the global financial crisis. Still, economists, as things stand, aren't predicting a recession.

Despite the hard times, SM City North Edsa's six-storey The Annex got off to a respectable start a few weeks ago, with tenants singing up for 70 per cent of the leasable space. The extension is expected to provide employment to nearly 3,000 workers.

The steel-and-glass dome-fronted complex faces a busy intersection on the Edsa highway in Quezon City, the biggest of 16 cities that make up Metropolitan Manila.

For visitors, its location and the motor madness of Edsa keeps it off my mall picks, which I list below, along with the world's 10 largest malls.

Not all of Manila's malls are large, shiny complexes like the SMs. Many of the older ones have seen better days and know it; their air conditioners and escalators are often turned off to save money. The tattiest ones often sell bootleg items.

I'd be suprised if another mega-sized mall was built in Manila the medium-term. But the city is likely to see more smaller, boutique malls aimed at well-heeled shoppers, like the Power Plant Mall in the Rockwell Center in the financial district of Makati and The Podium next to the ADB in Ortigas.

Here are the world's 10 biggest malls by interior floor space for leasing:

- South China Mall , Dongguan, China - 660,000 sq-m
- Golden Resources Shopping Mall, Beijing, China - 560,000 sq-m
- SM City Edsa North, Manila, Philippines - 425,000 sq-m
- Mall of Asia, Manila, Philippines - 386,000 sq-m
- Dubai Mall, Dubai, United Arab Emirates - 350,000 sq-m
- West Edmonton Mall, Alberta, Canada - 350,000 sq-m
- Cevahir Istanbul, Istanbul, Turkey - 348,000 sq-m
- SM Megamall, Manila, Philippines - 332,000 sq-m
- Berjaya Times Square, Kuala Lumpur, Malaysia - 320,000 sq-m
- Beijing Mall, Beijing, China - 320,000 sq-m

Source: American Studies at Eastern Connecticut State University
Shopping Mall and Shopping Center Studies (http://www.easternct.edu/depts/amerst/MallsWorld.htm) and SM Prime Holdings.

And my top malls in Manila in order of preference:

- SM Megamall in Ortigas: Opened in 1991 and still Manila's best-loved mall. Its 12 cinemas have large screens, there's a good range of restaurants, and its easy to navigate. The galleries of Filipino art on the fourth floor are highly recommended.
- Robinsons Place Manila on Padre Faura, Ermita has a shiny new extension, and it's good starting-point for a walk around one of Manila's most atmospheric quarters.
- The Mall of Asia, Pasay City: Manila's newsest king-sized mall overlooking Manila Bay opened in 2006. It has IMAX cinemas and Olympic-size skating rink. Easy to get lost in.
- Power Plant Mall, Rockwell Center: small but very upmarket mall, focused on fashion, in pleasant surroundings.