FREE Market Commentary: POGO Employees in the Philippines Receive Average Salary of P91,000 per Month

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Market Issue or Event

POGOs or Philippine Offshore Gaming Operators have overtaken the Business Process Outsourcing (BPO) industry as the biggest market for new office space in Metro Manila, according to Leechiu Property Consultants. As of the 3rd Quarter of 2019, POGOs accounted for 375,000 sqm or 38% of new office demand vs. IT-BPO at 294,000 sqm or just 30%.

In terms of contribution to the economy, Leechiu estimated that POGOs contribute $9.9 Billion of salaries vs. $7.5 Billion salaries of BPO employees. At the estimated 470,000 POGO workers and 1.2 Million BPO workers, we computed that the average salary of POGO workers in the Philippines is about PHP 91,000 per month vs. average salary of BPO employees at PHP 27,000 per month.

 

Our Partner Broker’s View and Commentary

The disparity between the average salary levels is significant, but we note that BPO workers pay income taxes and consumption is limited within the Philippines, while POGOs are only starting to pay income tax (and the government has no official count yet on how many actual workers there are).

The positive impact should continue to be felt in the property sector, but we think the Philippine government should prioritize BPOs over the long-run due to inherent risks in the online gaming sector.

 

Check out other useful and exclusive stock reports below from our partner stockbrokers!

Special Report: POGO, Property Sector Outlook & Property Stock Target Prices

IPO Analysis: Metro Pacific Hospital Holdings (HOSP)

AllHome Corp. (HOME) IPO Analysis: Good to Buy or Goodbye?

Special Report: IPO Analysis of Axelum Resources Corp. (AXLM)

 

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AP Securities (formerly Angping & Associates Securities)
AP Securities (formerly Angping & Associates Securities)

AP Securities (formerly Angping & Associates Securities) is one of PinoyInvestor’s partners in delivering superior and reliable stock research reports that help Filipino investors make smart stock investing decisions! Learn more about them here.