Government urged to set up system for foreigners wishing to retire in RP

The European Chamber of Commerce of the Philippines (ECCP), along with other members of the Joint Foreign Chambers, is urging the government to set up a system for retirees coming from its primary target countries.

According to ECCP executive vice president Henry Schumacher, the JFC (which includes the chambers of Australia-New Zealand, Canada, Europe, Japan, Korea, and the United States of America), have formed a retirement committee that would look into priority areas that need to be addressed for the country to become a retirement haven.

"We support the efforts of the government and the private sector towards the full development of the retirement industry in the country. However, before it can be marketed, we must first scrutinize the facilities and the range of accommodations available for foreign retirees," Schumacher said.

Among the list of items the JFC would be looking into are resort projects with special areas for active adults, existing and under construction retirement villages, and model communities that have health centers and agreements with leading hospitals.

Moreover, the JFC would look at the lease and sale contracts of suites, condominium units, and single detached houses that are available to retirees for three to six month use.

"We are optimistic that with several ongoing privately led projects, the Philippines is in a position to become a viable alternative destination for the world’s aging population within a relatively short time," Schumacher said.

Schumacher said there is a need for retirees to be issued special visas, provided special lanes at the airport, make insurance policies accepted at accredited hospitals, and for foreign doctors to be allowed to work in retirement villages.

He added that accreditation, certification, and portability of insurances would be necessary between the Philippines and target countries.

According to Schumacher, the Philippine government can initially look at Filipinos in North America; and the aging Japanese, Korean, and European nationals.

"There are 375,000 modestly estimated Filipino-Americans living in the United States. Japan and Korea are potentials due to their proximity. Also, in five years, cost of service in Europe would be going up while retirement benefits will be going down," Schumacher said.

Currently, China has 50 percent of the world’s aging population of 726.90 million followed by Europe, 23 percent; USA, 15 percent; Japan, eight percent; and Korea, two percent.

The ECCP plans to conduct an inventory of existing facilities in the country that can be utilized to jumpstart the local retirement industry.

The ECCP also urged the government to establish bilateral agreements with its primary target countries for the flagship project that is spearheaded by the newly created Philippine Retirement Agency.

The government, the ECCP noted, has set a modest target of 1,000 foreign retirees for the year on top of the 12,500 that was recorded over the past 20 years.

However, by 2015, when the aging population is projected to reach 918.50 million, the government expects 900,000 retirees going into the country creating four million jobs and an estimated $40 billion in earnings.

"A lot of homework needs to be done before we see these target numbers become reality," Schumacher said.