PCCI Warns Abrupt POGO Closures Could Lead To “Massive” Job Losses

The Philippine Chamber of Commerce and Industry (PCCI) has raised serious concerns over the potential repercussions of the abrupt closure of Philippine Offshore Gaming Operators (POGOs) in the nation. In its statement released on July 18, the PCCI warned that such a sudden shutdown could lead to “massive” job losses and significantly disrupt various sectors, particularly real estate and finance.

While the PCCI supports the decision to halt POGO operations, it emphasized the necessity of a structured and gradual approach rather than a chaotic and immediate shutdown.

“We support a tiered phaseout of POGO operations in the country. First, we call for the immediate closure of all POGOs operating illegally and without operating licenses,” PCCI president Enunina Mangio said in the statement.

“Second, we call on [the Philippine Amusement and Gaming Corp., or PAGCOR] and other government agencies involved in regulating the Pogo business, including the Bureau of Internal Revenue and the Bureau of Immigration, to carefully review the mandates from licenses, work licenses and tax obligations of the POGO operators.”

Moreover, the PCCI expressed alarm over the potential fallout in the commercial property sector. POGOs have occupied a substantial amount of office space in major business districts, driving the construction of new office buildings in response to their growing demand. The sudden exodus of these operators, the PCCI warns, could lead to increased vacancies and a downturn in commercial real estate prices.

The repercussions of these closures are expected to extend beyond just the property market. Financial institutions that invested in the development of office buildings for POGOs may also face significant risks, leading to collateral damage across related industries, including real estate and communication services.

“While PCCI supports the stoppage of POGO operations in the Philippines, it cautioned against a haphazard, indiscriminate and sudden closure of all POGOs in the country because of the possible massive loss of jobs and related displacement of many businesses and industries, from food services to administrative support and transport services,” stated the country’s largest business organization.

Sources: BusinessWorld / Inquier.net