News: The Rise of Chinese Gambling BPO’s in the Philippines!

[] Everyone seems to be asking the same question these past few months: “Why are there so many Chinese workers in the Philippines?” – the answer to this will be addressed by the government, and currently, the consensus is that we may have an illegal alien problem that needs to be addressed.

But specific to the BPO industry of the country, this question persists: “Why are there so many Chinese BPO workers?” – the short answer is that the Philippines has become a magnet for Chinese foreign direct investments (FDI’s), that specifically go towards funding Chinese offshore gambling operations.

Read on to find out more.

Duterte Brings Home the Bacon!/?

Rodrigo D., controversial president, visited China sometime in October of 2016. When he went home, he brought with him USD24B worth of Chinese FDI’s (mixed with overseas development aid or ODA’s). Note that some economic experts had a very doubtful view of the declared amount: USD24B is a lot of money, and converting this to actual projects was a bit of a tall order. According to the Central Bank of the Philippines, China-Hong Kong FDI was at USD1.04B as of March 2018. So essentially, we got 1 out of the 24 billion. 23 to go.

Now the majority of the FDI tracked by the central bank went to the offshore gambling sector, which is well and good, if only the jobs actually went to Filipinos. More on this later. But on a semi-positive note, Philippine real estate boomed, pushAUX has gotten reports of whole building floors being rented out to Chinese firms/BPO’s, and houses being rented out to accommodate as much as 40 Chinese workers, which is a few degrees away from sweatshop living.

What The Philippines Has Become

Rodrigo D., the cuss master president, pivoted the Philippines, a democracy, from being aligned with the west (the U.S. mainly) to being aligned with communist China.

Hence the current invasion of Chinese workers.

But can we blame or thank Rodrigo D. for all the Chinese locals walking around in our streets? Again, economic experts can actually explain why we actually got to this situation in the first place. The conditions are twofold:

  1. We grew from a manufacturing A Player to a manufacturing “Saling Pusa”. The government failed to capture relevant amounts of FDI for the manufacturing sector, which could have translated to a strong export oriented economy.
  2. The Philippines looked inward instead of competing with other economies. The country became “consumption based” where local goods are bought-sold by Filipino’s. Think of the top ten corporations of the land and ask if they have brought their businesses to international markets. With Korea, you have Samsung. With Japan, you have Sony and a host of others. How about the Ayala’s, the Sy’s, and the Gokongwei’s – how far have they ventured outside of Philippine shores? Ayala brought us malls and real estate, the Sy’s – SM and condos and hotels, Gokonwei, more malls, and… convenience stores.

The Philippines Versus the Competition!

Looking at the reasons listed above, we arrive at this statement: we attracted offshore/onsite casinos by being a consumption-based country. The Philippines has the perfect environment where these businesses may thrive: luxury hotels, malls, gambling facilities, a very good service oriented workforce.

Indonesia-Malaysia-Thailand may have been good contenders, but these countries are averse to gambling due to regulations guided by religion. But still, admittedly, these three have a semblance of offshore gambling operations, but they are situated in middle-of-nowhere locations, limited to export processing zones.

What hurts is this: Indonesia-Malaysia-Thailand have solid export portfolios, and so Chinese FDI went towards manufacturing, technology, and the utilization of natural resources.

Chinese Offshore Gambling is Here to Stay!

The Philippine economy is powered by consumption – and this has created a market driven by consumerism. Gamblers from all over the world love going here, which makes the country a natural destination for Chinese offshore gambling operations.

Next, we tackle why Chinese BPO’s have a penchant for hiring Chinese nationals as opposed to locals. Stay tuned.