The ban that President Ferdinand “Bongbong” Marcos Jr. announced on all Philippine Offshore Gaming Operations (POGOs) will have a minimal impact on the economic outlook but it will have a profound effect on the property sector, Malaysia-based global banker Maybank said in a review.
It warned that the total ban can further elevate office vacancy.
Real estate trader Leechiu Property Consultants (LPC) estimates that POGOs currently occupy about 1 million of the 18.2 million square meters (sqm) of office space nationwide.
Assuming no new office supply, total office vacancy could rise significantly to 22.5 percent from 17 percent with a scenario of a total POGO ban, the report noted.
Assuming annual gross demand for office space continues to trend similar to the level last year of 1 million sqm, this will further push office equilibrium out by another year to 2028.
Marcos drops bombshell
In the final moments of his State of the Nation Address, President Ferdinand Marcos Jr. instructed gaming regulator Philippine Amusement and Gaming Corp. to wind down and ban all POGO operations by the end of 2024.
The President added that Department of Labor and Employment (DoLE), in coordination with economic managers, shall use the time to find new jobs for displaced POGO employees.
It is estimated there are 22,000-25,000 Filipinos working in legal POGOs in Metro Manila.