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G3 June 2018 Reports THE PHILIPPINES MARKET President Rodrigo Duterte hates gambling. And situation. The casinos are also heavily reliant on Beijing to shut down the Philippine Offshore drug dealers. Gambling, however, brings in big VIP customers coming mostly from China, Gaming Operations (POGOs). revenues for the Philippines, so he isn’t Korea, Singapore, Thailand and Malaysia and systematically killing that particular industry therefore are vulnerable to economic Likewise when Duterte took office he directed off. The Philippine gaming market is fairly stable downturns, smoking bans, tax changes and, of PAGCOR to boost tourism and turn the nation and one of the most robust in Asia. In 2019, course, global pandemics. into a gambling and entertainment hub, then did gaming revenues generated or overseen by the a heel turn not long after, terminating Philippines Amusement and Gaming Duterte’s views and policies are also incredibly developments planned for Entertainment City Corporation (PAGCOR) hit P256.4bn with the contradictory and often knee-jerk reactions to and withdrawing casino plans on Boracay highest amount of P181.3bn coming from issues, causing some confusion in the gambling island. He’s unpredictable and arbitrary. His privately licensed casinos primarily in industry where revenues have quadrupled extreme drug war and pro-death penalty Entertainment City. during his first three years in office. proposals are causing huge concerns in the US and EU governments. But it is a fragile balance. Thesector is subject to So whilst he abruptly shut down thousands of licensing approval from PAGCOR, which being local lottery operations last year, on the other The Philippines House of Representatives has government run, depends on the political hand he has refused to adhere to pressure from recently approved a bill to re-introduce the P58 NEWSWIRE / INTERACTIVE / MARKET DATA Laws in the Philippines can be passed swiftly. Only recently a new anti- terrorism act came into place when Duterte signed the ATA in July and in doing so has redefined the definition of a ‘terrorist’ or ‘terrorism’ whilst also allowing the government to determine who is considered a terrorist. death penalty, which in turn has led the US and EU governments to warn about imposition of trade restrictions on the Philippines which may impact the economy. EU lawmakers said in September they are recommending revoking the Philippines Generalised Scheme of Preferences Plus (GSP+) status (which provides tariff perks for Filipino goods) if the death penalty is reinstated. The GSP+ status provides duty free entry for more than 6,200 products from the Philippines such as textiles, footwear, vehicle parts, fruits and metals. The trade incentive is issued to countries that have ratified 27 core international conventions on human and labour rights, The Philippines environmental issues and good governance. The Philippines was warned about the removal of GSP+ in 2017 if their human rights issues had not improved. The EU is the Philippines fourth largest The more corrupt the trading partner after China, Japan and the US. The EU accounted for about nine per cent of the Philippines’ total trade in 2018 and exports to the EU increased by 27 per cent a year after the republic, the more Philippines qualified for GSP+. Revoking the GSP+ amid the Covid crisis would only exacerbate the economic situation in the numerous the laws country. The death penalty is on ongoing debate in the Philippines. It was abolished in 1987, reinstated in 1993 and then abolished again in 2006 under The Philippine’s tourism slogan last President Gloria Macapagal-Arroyo. year was “It’s More Fun in the The death penalty push is part of Duterte’s war against drug criminals and will punish all drug Philippines”. With 7,000 plus islands crimes including possession and sales. Laws in the Philippines can be passed swiftly. offering everything from beaches to Only recently a new anti-terrorism act came into place when Duterte signed the ATA in July and in doing so has redefined the definition of a mountains, it’s an appealing ‘terrorist’ or ‘terrorism’ whilst also allowing the government to determine who is considered a proposition, but you don’t need to terrorist. It was fast tracked into parliament and many say will basically kill free press, free scratch too deeply beneath the expression and freedom of speech in one swoop and leave all the power with high ranking surface to have the fun taken right politicians. It is highly controversial and critics say it enables out of things. the government to simply target anyone who campaigns or speaks out against Duterte’s policies. The act for instance defines terrorism to also include vandalism. People can be arrested without a warrant and the government is no NEWSWIRE / INTERACTIVE / MARKET DATA P59 longer accountable for any wrongful acquittals. The act ash been brought to the Supreme Court to question it on constitutional grounds. Meanwhile the EU has also raised concerns over the human rights issues concerning founder and CEO of Rappler news service, Maria Ressa and has asked the Philippines to drop charges against her and also to renew the franchise of the ABS-CBN network which was ordered to shut down by the National Telecommunications Commission in May. Facebook accounts and have bombarded social some he has been associated with several ABS-DBN, the largest television network in the media with propaganda against Ressa. questionable practices, particularly his Philippines was shut down after congress shockingly violent campaign to eradicate crime refused to renew the station’s 25-year licence. There’s a long list of injustices Duterte is accused and drug pushers in the country. This has made It’s not the only media to come under attack. of and many hope that as his health appears to him popular in some respects but also earned deteriorate his ability to run during the 2022 him titles such as ‘Duterte Harry’ and ‘The The independent news website Rappler, which elections may be in question. Punisher’. has published critical stories about Duterte’s drug war, is also under fire. The Philippine At 75 he has revealed several ailments which are Duterte is a previous mayor of Davao City, which Securities and Exchange Commission, an often cited for reasons behind his absences from he served for 22 years and he was a key figure agency under the President, has revoked the official events. On the one hand this elicits behind the extrajudicial killings of drug users, registration of Rappler citing violation of foreign sympathy from his loyal supporters and on the street children and criminals. Human rights ownership. other, raises concerns over his capability to rule. groups have documented over 1,400 killings by If he steps down Vice President Leni Robredo the alleged Davao Death Squad operating Rappler was launched in 2012 as an online news would lead - he is a member of the opposition between 1998 and 2016. An investigation was organisation. In September the European and vocal critic of the President. closed in 2019 with no evidence of the existence parliament called for the Philippine government of the death squad or connecting Duterte to the to drop charges against Maria Ressa, who was The election of Duterte in 2016 as the 16th killings. arrested on ‘cyber libel’ charges in June and is President of the Philippines signified huge facing 100 years in prison for various charges. changes for the country. Later his Presidential campaign came with a promise to kill thousands of criminals and to The government apparently created false But despite an apparent huge mass appeal to end crime within six months. With 7,000 deaths P60 NEWSWIRE / INTERACTIVE / MARKET DATA The country is made up 81 provinces and 38 cities. Colonised by the Spanish, the Americans then invaded early last century and the country has never really emerged from its client-state status. The country is filled with Americanisms with large chain stores and restaurants, even though it is said the vast majority of Filipinos live on less than $2 a day and around 25 per The country has been struggling to contain the cent of the population still lives under the poverty line. Coronavirus outbreak and by October 20 there were a total of 359,000 cases and 6,675 deaths. by 2017 the state apparently stopped publishing The country is made up 81 provinces and 38 There have been strict regional lockdowns and data. Duterte is Chairman of the ruling party cities. Colonised by the Spanish, the Americans many have accused the government of being PDP Laban (Philippine Democratic Party), then invaded early last century and the country unprepared and overwhelmed with the health which is a left wing party and the result of a has never really emerged from its client-state crisis and economic problems that have merger in 1982 between the Partido status. The country is filled with Americanisms followed. Demokratiko Pilipino and Lakas ng Bayan and with large chain stores and restaurants, even was founded by Aquilino ‘Nene’ Pimentel Jr though it is said the vast majority of Filipinos Duterte’s response has always been the (PDP) and Benigno ‘Ninoy’ Aquino Jr (Laban) live on less than $2 a day and around 25 per cent offensive and he is well known for launching and a group of protestors who were against the of the population still lives under the poverty attacks on activists or shutting down media authoritarian government run at the time by line. networks whilst the extrajudicial killings of Ferdinand Marcos and the ruling KBL party. Duterte’s political enemies apparently The country is however one of the most dynamic continued during lockdown with many activists TOURISM AND ECONOMY economies in the East Asia Pacific region with a believing they are now simply ‘sitting ducks’.
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