The Philippine Chamber of Commerce and Industry (PCCI) favors a phaseout rather than an immediate total ban on Philippine offshore gaming operators (POGOs) due to the possible negative impact on the economy.
Enunina Mangio, PCCI president, said the group supports the stoppage of POGO operations in the Philippines but cautioned against a haphazard, indiscriminate and sudden closure of all POGOs in the country.
Mangio warned of possible massive loss of jobs and related displacement of many businesses and industries, from food services to administrative support and transport services.
PCCI, however, acknowledged these POGOs, some of which were issued licenses by the Philippine Amusement Gaming Corp. (Pagcor) pose immense social threats as they were exploited as breeding grounds for crime, scams, and human rights violations.
Mangio said PCCI is concerned over the wide-ranging impact on other sectors such as the commercial property sector and spillover effects on the financial institutions which funded new office buildings to accommodate the POGOs.
She said there will be collateral damages for ancillary industries such as real estate and communication services.
“We hence enjoin the national government and Pagcor to carefully manage the POGO phaseout or ban to avoid serious economic displacement,” Mangio said.
PCCI said a tiered phaseout should start with the immediate closure of all POGOs operating illegally and without operating licenses.
PCCI also called on Pagcor and other government agencies involved in regulating the POGO business including the Bureau of Internal Revenue and the Bureau of Immigration to carefully review the mandates from licenses, work licenses and tax obligations of the POGO operators.
Mangio also urged government agencies to create credible alternative employment opportunities for those who will be affected by the POGO closures.
On Wednesday, the Alyansa Agrikultura, Financial Executives Institute of the Philippines, Foundation for Economic Freedom, Institute of Corporate Directors, Justice Reform Initiative, Makati Business Club, Management Association of the Philippines and the
UP School of Economics Alumni Association, issued a statement supporting the recommendation of the Department of Finance and the National Economic and Development Authority (NEDA) for a total ban on POGOs.
They cited NEDA statistics which showed the contribution of POGO investments to the economy is minimal at 0.2 percent of GDP in 2023 compared to the social costs of their operation on the economy.
In Senate hearings and statements by NEDA, the business groups said POGOs have been linked to negative externalities, particularly involvement in crimes such as human trafficking, kidnapping, and money laundering, among others.
“The crimes related to POGO investments can hinder growth, affect investor perception, and potentially affect our bilateral and multilateral relations,” the business groups said.
The groups also called on the government should also help, re-skill, and ensure opportunities for Filipino workers who may lose their jobs due to the ban and allow industries affected by POGOs to find alternative uses for their assets.
“We support foreign investments that are legitimate and will facilitate knowledge and skills transfer as well as provide quality jobs for Filipinos,” the business groups said.
