A report from Co-Star observes that there are more than 200 malls with over 250,000 square feet that have vacancy rates of 35 percent or higher, a "clear marker for shopping center distress." These malls are becoming ghost towns. They are not viable now and will only get less so as online continues to steal retail sales from brick-and-mortar stores. Continued bankruptcies among historic mall anchors will increase the pressure on these marginal malls, as will store closures from retailers working to optimize their business. Hundreds of malls will soon need to be repurposed or demolished. Strong malls will stay strong for a while, as retailers are willing to pay for traffic and customers from failed malls seek offline alternatives, but even they stand in the path of the shift of retail spending from offline to online.
And this is why I have long believed that the statistics has understated the real savings rate of Philippines. And it is from such unseen sources of savings that has enabled the Philippines to have 3 out of the 10 largest shopping malls in the world (as of 2008).Yet the informal sector is an offshoot to economies that has been unduly burdened by a labyrinth of regulations, stifling taxes, onerous social security payments, restrictions in the official labor market, mandated wage rates and other labor restrictions, maze of bureaucratic red tape, politicization of economic opportunities and the many other various forms of interventions.
government or infrastructure spending do not guarantee productivity increases. Government spending is consumption even when applied to public works—they are not engineered to produce revenues or profits.Yet such projects will have to be financed through the acquisition of more debt, higher taxes or higher consumer prices.It’s no wonder the current administration has been desperately targeting big industries who gets academic support from foreign institutions to justify the raising of taxes e.g. SIN tax, SMS tax, Mining excise tax and etc…This government has been trying to squeeze the proverbial goose that lays the golden egg in the name of anti-corruption or good governance…Higher taxes also means a crowding effect which implies productive output will be substituted, by rechanneling resources, to politically directed consumption activities which will lead to shortages of capital goods.