PCCI expresses concern about impact of total ban on POGOs

The Philippine Chamber of Commerce and Industry (PCCI), the country’s largest business group, on Wednesday expressed apprehension over possible impact of a total ban on Philippine Offshore Gaming Operators (POGOs) in the country.

At a press briefing in Manila on Wednesday, PCCI president George Barcelon said that one of the sectors that will be affected badly if POGOs will be totally shut down is the real estate sector.

“A lot of buildings built in the last five years were solely focused on POGOs. It will have a trickle down effect on residences, on services, and hospitality,” he said.

Barcelon said that there “should be a balance between some of the ‘social ills’ POGO brings about in the land, some of the crimes related… and the impact of downsizing of POGOs.”

Real estate analyst David Leechiu has estimated that if POGOs are shut down, the Philippine economy could lose around P200 billion annually from taxes and fees, office space and residential lease rentals, meals, retail shopping, electricity and others. 

Both administration and opposition lawmakers have called for a total ban on POGOs.

They argued that the proliferation of illegal POGO operations and undocumented workers, as well as criminal syndicates using POGO operations as front, are clear proof that the government is unable to effectively regulate the sector.

But the association of Service Providers and POGOs (ASPAP) earlier warned that some 23,000 Filipinos would lose their jobs if POGOs are banned from the country.

Senator Sherwin Gatchalian also said that POGOs directly and indirectly contribute 1% to the country’s gross domestic product (GDP). 

While the 1% effect on GDP is “quite big and a cause for concern,” Finance Undersecretary Bayani Agabin said that the Philippines can recover the potential losses should the country do away with offshore gaming operators.

Last month, Finance Secretary Benjamin Diokno said the country should do away with POGOs, citing “social” and “reputational” risks.

For is part, Agabin said the country is looking at tapping other foreign industries to invest in the country to offset the potential losses should POGOs completely exit the country.

Among the industries being looked at are healthcare, manufacturing, mass housing, infrastructure, environment, energy, and exports, along with green ecosystems and defense.

Barcelon, likewise, said that the government can focus its “attention to more legitimate investments such as manufacturing.”

The PCCI chief added that while the business group neither opposes or supports POGOs, “I would go along the line of security, peace and order.  That should take precedence over the revenue.”

But he pointed out that registered POGOs provide a revenue stream to the government and also generate “some job opportunity.” —LBG, GMA News