Metro Manila (CNN Philippines, October 4) — The Senate wants to determine if government revenues from the Philippine offshore gaming operators (POGOs) are directly benefitting Filipinos.
Speaking to CNN Philippines’ New Day on Tuesday, a day after the upper chamber opened deliberations on the issue, Sen. Sherwin Gatchalian said the industry’s contribution to the overall economy only comprises 0.03% of the country’s gross domestic product.
“If you look at employment, POGO generates 20,000 at best for Filipinos in terms of employment,” said Gatchalian, who chairs the Senate Committee on Ways and Means.
“In terms of a macro point of view, it’s not so significant in terms of revenue and economic contributions,” the senator explained. “But then again, if you look at the nominal value of POGO, it’s contributing ₱3 billion in terms of government revenues and about ₱44 billion in terms of contributions to the economy.”
“It’s still quite significant, that’s why we need to have another hearing to look at the economic contribution and analyze whether the economic contribution trickles down to our constituents,” he added.
At Monday’s hearing, Leechiu Property Consultants said the Philippine economy could lose up to ₱200 billion a year if the government decides to shut down POGO operations.
Closing down these companies would lead to an ₱18.9 billion loss in annual office rent, ₱28.6 billion loss in annual housing rent, 347,000 losses in employment, among others, it added.
READ: POGO shutdown could cost PH as much as ₱200B annually
Gatchalian, meanwhile, said that kidnap for ransom crimes involving POGOs have increased from 30% in 2021 to about 50% this year.
And apart from bearing the cost of hosting and deporting illegal aliens, there is also a cost in POGO-related crimes “taking away attention from other local enforcement activities.”
The next Senate hearing will be held next week with different POGO associations, independent consultants, and the National Economic Development Authority among the resource persons to be invited, the senator added.
“We want to get a full view, not only from the government side, but also the private sector side especially from economists and also business practitioners,” Gatchalian added.
