POGOs have ‘very small’ impact on property industry — NEDA
MANILA, Philippines — The impact of Philippine offshore gaming operators (POGOs) on the property industry is small, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said on Tuesday.
POGOs, being an important contributor to the property industry, are often cited to defend the continued operation of these gaming hubs.
In a brief interview in Pasay, Balisacan was asked how President Ferdinand Marcos Jr.’s POGO ban might affect the property business. The NEDA chief responded that the benefits outweigh the losses.
For POGOs renting properties in the Philippines, Balisacan said “they’re just very small.”
“When I said that one half of 1% of GDP (gross domestic product) is what the POGOs contribute, that already takes into account the properties. But I think more important than just the economic numbers, I think the social cost and reputational cost to the country of hosting this kind of businesses is not good at all,” Balisacan said.
According to the NEDA chief, China may also impose regulations on cross-border tourism to the Philippines, potentially resulting in a GDP loss of around 1%.
Real estate consultant David Leechiu previously mentioned that a POGO ban may cause a vacancy of 1.05 million square meters of office space.
Balisacan said that investments in information technology could help regain potential losses, with the sector being able to absorb the Filipinos whose jobs are impacted by the POGO ban.
Marcos wants to see legitimate businesses, the NEDA secretary said.
“The president would like to see legitimate businesses, businesses that give good reputation to our country as investment destination, as tourist destination. Not ones that encourage criminality and related negatives,” Balisacan said.
The president banned POGOs at the end of his 2024 State of the Nation Address, following months of clamor from lawmakers.
Numerous raids on POGO hubs have revealed evidence of criminal activities, including digital scams, torture, human trafficking and even killings.
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