China’s investment in Philippines online game industry creates challenges for locals

February 9, 2022 Philippines Crime & Legal Industry Updates

Philippines Offshore Gaming Operations (POGOs), online gambling industry, is considered as employing several thousands of people, however, investments by Chinese companies in it has turned into a sector that promotes illegal entry of Chinese people into the country. These people are snatching jobs from the locals in an industry that cause economic disruptions, social and governance issues and national security challenges, according to media reports.

Underlining that speculative nature of investments into POGOs by Chinese companies since 2016 have been a matter of concern for the Filipinos, The Singapore Post reported that the Philippines Government and Philippine Amusement and Gaming Corporation (PAGCOR) from 2016 to 2019 justified licenses to POGOs for the economic benefits they were supposed to bring to the country. However, on the contrary, the adverse impacts it generated over the years outscored the benefits it was supposed to bring in every way.

Highlighting that youth employment is one of the major concerns in the world, the report by the Bureau of Immigration (BI), and said, as of 2019, out of a total of 166,265 people employed in the POGOs sector only 28,265 people are Filipinos, which comes to only 17 per cent. Rest all are foreigners. A total of 138,000 foreigners are legally employed in the sector and as many as 470,000 Chinese are illegally employed in the industry. Many of them enter the Philippines through visas valid for six months and remain in the country illegally thereafter as was exposed by the Pastilla Scandal, the report said.

According to The Singapore Post, observers view that POGOs provide higher employment to the Chinese than to the local Filipinos, while creating economically harmful situations. Their social consequences are disturbing Filipino society at all levels, physically, economically and psychologically.

They may also further turn into instruments for China’s espionage operations in the Philippines. POGO is a harsh reminder to other countries that allow unrestricted operations by foreigners, especially Chinese that invariably have socio-economic repercussions, affecting the safety and sovereignty of the nation.