{"id":19882,"date":"2024-07-23T03:03:21","date_gmt":"2024-07-23T03:03:21","guid":{"rendered":"https:\/\/energybuzz.ph\/staging\/6915\/marcos-orders-total-ban-on-pogos\/"},"modified":"2024-07-23T03:03:21","modified_gmt":"2024-07-23T03:03:21","slug":"marcos-orders-total-ban-on-pogos","status":"publish","type":"post","link":"https:\/\/energybuzz.ph\/staging\/6915\/marcos-orders-total-ban-on-pogos\/","title":{"rendered":"Marcos orders total ban on POGOs"},"content":{"rendered":"
\n

By Kyle Aristophere T. Atienza, <\/b><\/span>Reporter <\/i><\/p>\n

PRESIDENT Ferdinand R. Marcos, Jr. on Monday announced a total ban on all offshore gaming operations in the Philippines, saying these have been linked to illegal activities including money laundering and financial scams.<\/span><\/p>\n

\u201cEffective today, all POGOs are banned,\u201d he said during his State of the Nation Address (SONA), referring to Philippine offshore gaming operators (POGOs). <\/span><\/p>\n

He also ordered the Philippine Amusement and Gaming Corp. (PAGCOR) to wind down and end the operations of all POGO facilities by the end of 2024. He also ordered the Labor department to <\/span>f<\/span>ind new jobs for POGO workers that will be displaced. <\/span><\/p>\n

\u201cWe hear the loud cry of the people against POGOs\u2026 The grave abuse and disrespect to our system of laws must stop,\u201d Mr. Marcos said.<\/p>\n

Mr. Marcos received a standing ovation after announcing the ban in his third SONA, which analysts said lacked details on the reform agenda and failed to discuss medium-term economic goals.<\/p>\n

POGOs have been \u201cdisguising\u201d as \u201clegitimate entities\u201d but their operations have ventured into illicit areas, he said.<\/p>\n

He linked POGOs to financial scams, money laundering, prostitution, human trafficking, kidnapping, brutal torture and \u201ceven murder.\u201d<\/p>\n

The reputational risk from POGOs, which mostly involve Chinese nationals and cater to Chinese markets, could cost the government P55.36 billion in forgone investments due to crimes linked to them, and P29.01 billion in forgone revenues in tourism, the Finance department earlier said. <\/span><\/p>\n

Several business groups led by the Makati Business Club recently called for a total ban on POGOs, saying their investments accounted for just 0.2% of the Philippines\u2019 gross domestic product (GDP) in 2023 and pointed out significant social costs.<\/p>\n

Over 50% of kidnapping cases in 2022 were POGO-related, according to Philippine National Police (PNP) data.<\/p>\n

Even Senator Ana Theresia Hontiveros-Baraquel, the highest elected official among opposition personalities, joined the crowd in applauding Mr. Marcos\u2019 announcement.<\/p>\n

\u201cThis was something people were expecting, thus the standing ovation,\u201d Maria Ela L. Atienza, a political science professor at the University of the Philippines, said in a Viber message. \u201cHopefully, this can bolster his popularity and trust ratings.\u201d<\/p>\n

Mr. Marcos\u2019 performance and trust ratings dropped in the latest Pulse Asia Research, Inc. poll, which was released as he completed his second year in office.<\/p>\n

Ms. Atienza noted that POGOs are viewed by many in the government as \u201cnegligible\u201d because they are no longer bringing in much revenues.<\/span><\/p>\n

Foundation for Economic Freedom, Inc. President Calixto V. Chikiamco also expressed support for the phaseout of all POGOs.<\/p>\n

\u201cThis will help reduce criminality and corruption and even improve our relations with China, which has called for dismantling of POGOs,\u201d he said.<\/p>\n

Finance Secretary Ralph G. Recto said the President\u2019s decision to ban POGOs would not lead to major revenue losses for the government.<\/span><\/p>\n

\u201cWhen you look at the cost-benefit analysis done by the DoF (Department of Finance), we are spending more than we are earning from POGOs,\u201d he told BusinessWorld<\/i> after the SONA.<\/p>\n

Mr. Marcos began his third SONA speech, which was longer than last year\u2019s, with a discussion of government efforts to address rising prices, touting his executive order that further reduced tariff rates for rice and other key commodities until 2028, as well as the temporary price cap on rice in October.<\/p>\n

The Philippine leader said his government had seized more than P2.7 billion worth of smuggled agro-fishery products through modernized Customs procedures and heightened enforcement, \u201cpreventing them from entering the market and negatively influencing prices.\u201d<\/span><\/p>\n

Mr. Marcos said the government would soon enforce a pre-border technical verification and cross-border electronic invoicing of imports. \u201cThis will send a strong signal that we mean serious business.\u201d<\/p>\n

He also focused on his administration\u2019s \u201caggressive\u201d infrastructure development program, which he said is key to making the Philippines an upper middle-income economy.<\/p>\n

\u201cWith the results that we have seen two years into this administration, we can claim that despite challenges, we are steadily progressing towards our targets in the medium term,\u201d he said.<\/p>\n

The Marcos administration targets a 6-7% gross domestic product (GDP) growth this year. Under the Philippine Development Plan (PDP) 2023-2028, GDP annual growth target was set at 6.5-8% until 2028.<\/p>\n

By 2028, the country also aims for a gross national income (GNI) per capita of $6,044-$6,571, a 3% deficit-to-GDP ratio, and debt-to-GDP ratio of 48-53%.<\/p>\n

\u201cTo sustain the country\u2019s economic gains, we are promoting investment-led growth. We have set in motion policies and programs to create an environment conducive for businesses to thrive, like reforms in the capital markets, and implementation of \u2018green lanes,\u2019\u201d Mr. Marcos said.<\/p>\n

Fiscal analyst Zy-za Nadine M. Suzara said Mr. Marcos\u2019 third SONA heavily focused on the government\u2019s accomplishments in the implementation of existing programs that were mostly initiated during previous administrations.<\/span><\/p>\n

\u201cHe did not detail a reform agenda on improving bureaucratic efficiency and sound fiscal management even if these two are part of his eight-point socioeconomic agenda,\u201d she said in an e-mail.<\/span><\/p>\n

\u201cIt appears that these are not among his governance priorities even if these are actually at the core of achieving the rest of his socioeconomic agenda.\u201d<\/p>\n

On industrial policy, Mr. Marcos said the IT and creative sectors are burgeoning industries, \u201cknowing no territorial bounds, and holding great promise for our talented and hardworking people.\u201d<\/span><\/p>\n

Cielo D. Magno, a professor at the University of the Philippines School of Economics, praised Mr. Marcos for touching on the creative and IT sectors, but said he should have discussed a \u201ccomprehensive industrial policy.\u201d<\/p>\n

\u201cI appreciate clear instructions regarding human capital,\u201d she added.<\/p>\n

Mr. Marcos said in his speech that \u201cschools will serve as the preeminent incubators of the innovative and creative energies of all Filipinos.\u201d<\/p>\n

He said the government would bank on Technical and Vocational Education and Training (TVET) to address joblessness, which hit a four-month high in June.<\/p>\n

\u201cEight out of 10 graduates of TVET ultimately land decent jobs. So with its high employability rate, TVET will definitely be instrumental in capacitating our people.\u201d<\/span><\/p>\n

Jesus Felipe, director of the Angelo King Institute for Economic and Business Studies at De La Salle University, noted that the manufacturing sector accounts for only about 8% of the country\u2019s employment share, making it more impossible for the country to produce jobs that are tech-driven. <\/span><\/p>\n

\u201cLook at the jobs that this economy generates \u2014 people riding motorcycles for delivery, etc.,\u201d he said in a phone call. \u201cDo you really believe that you can have a high-income economy?\u201d<\/p>\n

PHL \u2018CANNOT WAVER\u2019
\n<\/b>Mr. Marcos gained a standing ovation after saying that the Philippines would not yield or waver in defending its features in the South China Sea.<\/p>\n

Philippine officials \u201ccontinuously try to find ways to de-escalate tensions in contested areas with our counterparts without compromising our position and our principles,\u201d he said.<\/p>\n

\u201cThe Philippines cannot yield, the Philippines cannot waver.\u201d<\/p>\n

Mr. Marcos, who has visited over 20 countries since his presidency in June 2022, said a substantial number of investment pledges have already commenced operations, \u201cwith many more at various stages of development.\u201d These could create over 200,000 jobs for Filipinos, he added.<\/p>\n

Among the administration\u2019s priority bills, Mr. Marcos only mentioned the proposed amendments to the Electric Power Industry Reform Act of 2001 and the Corporate Recovery and Tax Incentives for Enterprises Act of 2021, which significantly lowered taxes on domestic and foreign corporations.\u00a0<\/span><\/p>\n

\u201cWhile it\u2019s good to hear promises and instructions, it is important for the public to continuously monitor and engage the government to hold them accountable,\u201d Ms. Magno said. \u201cPromises can dissipate once the spotlights on his speech are turned off.\u201d<\/p>\n

Diwa C. Guinigundo, a former central bank deputy governor, said Mr. Marcos\u2019 headline messages were sound \u201calthough we need to dissect them.\u201d<\/p>\n

The President should have disclosed why the Philippine Health Insurance Corp. needed to remit P80 billion to the National Government \u201cwhen this amount could have secured wider and higher health coverage for its members,\u201d he said in a Viber message.<\/p>\n

British Chamber of Commerce of the Philippines Executive Director and Trustee Christopher James Nelson told BusinessWorld<\/i> in a phone call that was pleased to hear the President discuss agriculture policies, and hoped for Congress\u2019 swift passage of the Anti-Agricultural Smuggling Act.<\/p>\n

He said the real issue for foreign investors is whether the Philippines will continue to open up markets and remove foreign restrictions.<\/p>\n

Senate President Francis G. Escudero told reporters on the sidelines of the President\u2019s address to Congress that Mr. Marcos\u2019 speech showed that he was serious about improving public transportation, agriculture and dealing with crimes linked to POGOs.<\/p>\n

However, the POGO ban could also negatively affect the country\u2019s real estate market, Albay Rep. Jose Ma. Clemente \u201cJoey\u201d S. Salceda, who heads the House ways and means committee, told BusinessWorld.\u00a0<\/i><\/p>\n

\u201cWe just have to find the lost revenues, lost employment [due to the POGO ban],\u201d he said after Mr. Marcos\u2019 SONA. \u201cAnd of course, it will dampen the real estate market.\u201d<\/p>\n

\u201cI hope they make a differentiation with IGLs (internet gaming license), [so that] when they ban POGOs it will not lead to a banning of the entire IGL, because that\u2019s P43 billion [that could be lost],\u201d he added.<\/p>\n

Philippine Exporters Confederation, Inc. and Employers Confederation of Philippines President Sergio R. Ortiz-Luis told BusinessWorld<\/i> by telephone that a less than six-month transition for licensed POGOs to wind down operations would mitigate immediate joblessness within the industry.<\/p>\n

\u201cThe problem is whether we like it or not, there are a lot of investments and contracts, services that revolve around legal POGOs, and I\u2019m sure they are hoping for a way to find an extension (to wind down operations).\u201d<\/p>\n

\u201cOne area I was hoping he would stress on is the ease of doing business. Although he mentioned the CREATE More bill, it is important to make this point with local governments to reduce the bureaucracy and make it easier for businesses to expand here,\u201d Philippine Chamber of Commerce Chairman George T. Barcelon told BusinessWorld<\/i> by telephone.<\/p>\n

He said legal POGO firms affected by the ban could get back on their feet by pursuing other legitimate businesses that would hire Filipino workers instead of Chinese immigrants serving a Chinese market. \u2014 with<\/i> Chloe Mari A Hufana, Kenneth Christiane L. Basilio <\/b>and<\/em> John Victor D. Ordo\u00f1ez <\/b><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

PRESIDENT Ferdinand R. Marcos, Jr. on Monday announced a total ban on all offshore gaming operations in the Philippines, saying these have been linked to illegal activities including money laundering and financial scams.<\/div>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[1],"tags":[614,14644,594,3311,18321,11277],"class_list":["post-19882","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-ban","tag-bworldonline","tag-marcos","tag-orders","tag-pogos","tag-total"],"yoast_head":"\nMarcos orders total ban on POGOs - Energy Buzz<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/energybuzz.ph\/marcos-orders-total-ban-on-pogos\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Marcos orders total ban on POGOs - Energy Buzz\" \/>\n<meta property=\"og:description\" content=\"PRESIDENT Ferdinand R. 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