Benefits of POGO ban outweigh costs, NEDA says

MANILA, Philippines — Benefits can outweigh the costs of banning Philippine offshore gaming operators (POGOs), according to the National Economic and Development Authority (NEDA).

“The POGO contributed less than one half of one percent of our GDP (gross domestic product) as of 2022. And that’s what you are likely going to lose or benefit,” NEDA Secretary Arsenio Balisacan told reporters on the sidelines of the post-SONA discussions Tuesday.

He said there were losses to tourism with the presence of POGOs, as China has made it clear that cross-border tourism is to be regulated for countries with POGOs that cater to Chinese individuals.

He said there were also social costs and reputational costs for hosting POGOs in the country.

“Those (costs) are very high. And I think that I would like to see, the President would like to see legitimate businesses, businesses that give good reputation to our country as an investment destination, as a tourist destination, not ones that encourage criminalities and related negatives,” he said.

Balisacan said workers in the POGO industry to be affected by the ban may be absorbed by the information technology-business process management sector, as these individuals already have some IT skills.

Philippine Economic Zone Authority chief Tereso Panga said that while the agency does not have any POGO locators in the ecozones, it can assist in the process of providing training and employment to displaced workers.

“If we need to upskill and reskill them, that’s the job of our agencies, particularly DOLE, CHED (Commission on Higher Education) and other agencies to provide this training as they transition to these new jobs,” Balisacan said. – Mayen Jaymalin, Rainier Allan Ronda, Marc Jayson Cayabyab, Louise Maureen Simeon, Evelyn Macairan, Delon Porcalla