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By Chloe Mari A. Hufana <\/b>and <\/i><\/span>Ashley Erika O. Jose, <\/b>Reporters<\/i><\/span><\/p>\n PRESIDENT Ferdinand R. Marcos, Jr. <\/span>on Sunday paused the forthcoming restoration of Epifanio de los Santos Avenue (EDSA) that was initially planned to commence next week, referencing the necessity for additional evaluations to discover a \u201csuperior approach\u201d and lessen its anticipated influence on commuters, drivers, and the wider economic framework, potentially even shortening the timeline of the project.<\/p>\n The commencement of the P8.7-billion restoration of Metro Manila\u2019s most congested highway, which was scheduled for June 13, has been postponed to July, although Mr. Marcos did not specify a date.<\/span><\/p>\n The President shared this news during his visit to the Metro Rail Transit Line-3 Kamuning Station in Quezon City, where he responded to stakeholders\u2019 apprehensions regarding the initiative.<\/span><\/p>\n \u201cNumerous individuals [expressed concerns] about the proposed EDSA restoration. Many have come forward, conveying their worries, asking questions such as, \u2018What about our livelihoods?\u2019\u201d Mr. Marcos stated in Filipino.<\/p>\n \u201cWhen we evaluate the cost-benefit analysis, yes, it would be beneficial if we could resolve it, but the sacrifices required \u2014 two, three years \u2014 would be excessive,\u201d he added. \u201cCurrently, it is apparent that too many individuals will bear the burden of the EDSA restoration as it stands. We will seek a superior method \u2014 one that is <\/span>not too diff<\/span>icult for our fellow citizens.\u201d<\/p>\n He noted that the government recognizes the daily challenges faced by Filipino commuters and laborers relying on EDSA, which accommodates around 400,000 vehicles daily and connects essential commercial and residential areas throughout Metro Manila.<\/span><\/p>\n In addition to mobility concerns, Mr. Marcos mentioned that the government has been made aware of emerging technologies that were overlooked in the initial planning of the EDSA restoration, stating that he has already directed the secretaries of the Transportation and Public Works and Highways departments to investigate these.<\/p>\n He also instructed relevant agencies to reevaluate the restoration strategy and investigate methods that could potentially decrease the construction period to as little as six months or <\/span>one year from the original two-year timeline.<\/span><\/p>\n The Department of Transportation communicated in a statement that it is collaborating with its partner agencies to explore all available options to hasten the restoration of the highway to minimize opportunity costs for drivers and commuters.<\/p>\n The Metropolitan Manila Development Authority stated in a separate communication that it will no longer enforce the odd-even scheme on EDSA following the suspension of the restoration project. The existing number coding scheme will remain in effect instead.<\/p>\n The EDSA restoration is part of the Marcos administration\u2019s \u201cBuild Better More\u201d infrastructure initiative, a pivotal element of its economic strategy aimed at enhancing productivity, alleviating logistical constraints, and fostering long-term growth.<\/p>\n The delay arises amidst growing public anxiety about escalating traffic congestion in Metro Manila and the socioeconomic compromises of significant infrastructure renovations.<\/p>\n Rene S. Santiago, former president of the Transportation Science Society of the Philippines, remarked that EDSA\u2019s restoration is \u201clong overdue,\u201d and another pause \u201cmerely postpones the situation.\u201d<\/p>\n \u201cThere is a method to lessen the temporary distress,\u201d he mentioned in a Viber chat. \u201cFrom available work plans, there is space for enhancement, especially on the Metropolitan Manila Development Authority side and the Department of Transportation.\u201d<\/span><\/p>\n Meanwhile, Federation of Free Workers President Jose Sonny G. Matula welcomed the deferment of the initiative, describing it as a demonstration of empathy from Mr. Marcos.<\/p>\n \u201cEven if a project is devised by the brightest minds and aims to yield the best results, it may still face rejection or misinterpretation if the public is not consulted and does not feel a sense of ownership,\u201d he commented in a Viber chat.<\/p>\n The labor leader urged the government to reevaluate the EDSA renovation plan and hold extensive discussions with stakeholders, including labor unions, transport workers, and commuters, to adopt a phased, worker-friendly strategy.<\/p>\n \u201cThe objective should be to modernize our infrastructure without compromising the well-being of the workforce,\u201d Mr. Matula emphasized. \u201cAdvancement should not occur at the expense of the populace. Let us construct better roads but let us also honor the dignity and livelihood of every Filipino worker.\u201d<\/p>\n IMPACT ON COMPANIES \u201cCompanies like SM Investments Corp. (SMIC) and Robinsons Land Corp. (RLC) which depend on mall visitors for income, could experience a drop in foot traf<\/span>f<\/span>ic during the construction phase,\u201d Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce mentioned in a Viber message.\u00a0<\/span><\/p>\n The anticipated traffic congestion and prolonged roadworks might deter consumers from frequenting malls, Mr. Arce noted, which could result in decreased retail sales, lower cinema attendance, and a potential downturn in food and beverage revenues.<\/p>\n \u201cMall and entertainment operations may undergo a short-term revenue decline as consumers adjust their habits, potentially bouncing back post-restoration if improved infrastructure enhances accessibility and convenience,\u201d Mr. Arce stated.<\/p>\n Nevertheless, the anticipated decline in foot traf<\/span>f<\/span>ic would not significantly impact mall operators\u2019 revenue streams, according to China Bank Capital Corp. Managing Director Juan Paolo E. Colet.\u00a0<\/span><\/p>\n \u201cOur preliminary evaluation is that the restoration efforts would not impose a material financial burden on major mall operators with diverse and well-situated properties,\u201d Mr. Colet remarked in a Viber message.<\/p>\n \u201cShoppers are likely to shift some spending online or towards neighborhood centers, so the prominent EDSA malls like SM, Robinsons and others nearby should observe diminished weekend crowds. However, I believe these malls constitute only a small portion of each group\u2019s portfolio,\u201d Seedbox Securities, Inc. equity trader Jayniel Carl S. Manuel similarly noted in an email.<\/p>\n SMIC, through its subsidiary SM Prime Holdings, Inc. (SMPH), operates 88 malls in the Philippines, with 25 situated in Metro Manila.<\/p>\n In the first quarter, SMIC reported a 9.07% rise in its attributable net income to P20.05 billion from P18.39 billion last year.<\/p>\n It indicated that consumption will drive its long-term growth initiatives, led by its property, banking, and retail divisions.<\/p>\n Conversely, RLC manages 55 malls nationwide, with only nine of these in Metro Manila.<\/p>\n The company recorded a 4% rise in its first-quarter attributable net income to P3.48 billion, while revenue was maintained at P11.03 billion.<\/p>\n RLC previously mentioned that it anticipates earnings to grow by 12% annually to achieve its 2030 goal of generating P25 billion in net income. As part of this aim, the company plans to expand its investment portfolio, with intentions to increase its mall gross leasable area.<\/p>\n Analysts suggested that the projected increase in vehicular traff<\/span>ic could even present growth opportunities for businesses as Filipinos adjust their spending and travel habits.<\/p>\n Globalinks Securities\u2019 Mr. Arce observed that mobility challenges will likely hasten online shopping, benefiting companies with robust e-commerce platforms.<\/p>\n For Seedbox Securities\u2019 Mr. Manuel, traffic congestion could also stimulate the growth of real estate firms, positioning companies like SMPH and RLC to tap into the anticipated housing demand.<\/p>\n \u201cThe traffic congestion could actually bolster earnings. Many office employees are likely inclined to pay for accommodation near Makati and Bonifacio Global City to avoid long commutes,\u201d he stated.<\/p>\n
\n<\/b>Analysts last week indicated that the EDSA restoration project may have a short-term effect on the revenues of conglomerates whose businesses depend on foot traff<\/span>ic such as malls and entertainment, but their diversified revenue streams and extensive nationwide presence will help cushion the impact.<\/p>\n