061606: Foreign retirees and the Filipino farmer

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COMMENTARY
Posted: 2:02 AM | Jun. 16, 2006
Ernesto M. Ordoñez
Inquirer

(Published on Page B7 of the June 16, 2006 issue of the Philippine Daily Inquirer)

LAST May 30, retirement became a presidential flagship program, with Edgardo Aglipay heading the program as "retirement czar."

Officials believe that by attracting the targeted 900,000 foreign retirements to the country over the next 10 years, around four million jobs will be generated, while government may expect $44 billion to go its coffers.

The program will also reverse the prevailing migration trend, allowing many Filipino health workers to come home or stay put.

But what does this have to do with the Filipino farmer?

lining pensions

Health Care Coalition president David Paraiso, a senior consultant of the Commission on Aging at the White House in the United States, discovered that the declining pensions of retirees in most developed countries will not be sufficient for them to live comfortably in their home countries. There will therefore be a "tsunami" of retirees leaving the developed countries for less expensive retirement destinations.

Philippine Retirement Incorporated (PRI), the private sector counterpart of the government's Philippine Retirement Authority (PRA), did an analysis of retirees in six selected markets shown below:

Country	2006	2015
Japan	60.4 M	64.2 M
Korea	16.2	21.0
Taiwan	7.6	9.7
USA	112.0	133.6
Europe	163.3	184.1
China	367.4	505.9
TOTAL	726.9	918.5

The government's minimum target of 900,000 retirees by 2015 represents less than 1/10 of one percent (fewer than one in 1,000) of the number of retirees in the selected markets above.

PRA and PRI

Over the past 20 years, PRA registered only 12,500 retirees, while Malaysia and Thailand each exceeded that number in only one year. Two reasons have been given for this.

The first is that PRA has not been given the importance and support necessary to fulfill its potential. Now that retirement has become a presidential flagship program, this issue is being addressed.

The second reason is that the private sector retirement industry players have never coordinated on this. PRI, a non-stock non-profit corporation, now unites registered operators of retirement facilities, leisure and resort destinations, condominium and housing developers, hospitals, health insurance, transport and travel services, caregiving training schools, HMOs, financial institutions, tourism advocates, brokers, builders, health and wellness organizations, and other service providers nationwide, under one organization.

In the housing industry, among the key movers behind the PRI formation are the Zobel de Ayalas, Gotianums, Gokongweis, Sys, and Tans.

Other players

When talking of retirement, a "retirement village" comes to mind. This is where an enclave of houses and buildings are constructed with support facilities, such as swimming pools, gymnasiums, walking trails, spas, and other amenities. Chinese-Filipino tycoons and big developers may play a significant role in this.

But according to PRI vice chairman Francisco Colayco, the majority of retirees in developed countries live in much less integrated arrangements, such as small buildings and residential houses.

PRA chairman Aglipay relates his own brother's experience in the United States. Though an engineer, Joven Aglipay studied caregiving and started with two retirees in his own home. He now has two more homes with four retirees each.

I saw one such home in Las Vegas. It housed four retirees each paying $3,500, for a monthly total of $14,000, or approximately P750,000. Like all other registered nursing homes, it follows strict standards set by the US government to ensure the quality of service.

For the facilities here to be globally competitive, the PRI, together with PRA, will ensure that these same standards are implemented.

In fact, we expect our retirement offerings to be superior to others because of the Filipino's caring, compassionate, and professional attitude. We are known in almost every part of the world for this, and no other nationality comes close to us.

Examples of this compassion and professionalism are the maid who put herself in front of a speeding car and was killed trying to protect the child under her care in Hong Kong, and the practice of many Middle East executives who entrust their house keys only to their Filipino employees.

The Filipino farmer

Aglipay said that his vision was for a teacher to augment his or her income by taking care of one or two foreign retirees in his or her home. The retirees will likewise benefit, not only from lower costs, but also from the compassionate care they would receive from their Filipino hosts -- something the retirees might not get in their home countries.

For a successful retirement industry, two areas that require strict global compliance are health care services and the diet. It is in the diet area where farmers play an important role. They can provide the high quality food needed by the retirees.

In addition, model farmers can likewise house retirees. There are many retiree farmers in developed countries looking for retirement destinations. These farmers prefer a farming environment. They can also live more productive and fulfilling lives by sharing their agricultural technology and expertise with Filipino farmers.

The Alyansa Agrikultura [Agricultural Alliance] has recommended creating a special window to attract foreign farmer retirees.

This and other opportunities will be discussed in a PRI-PRA Retirement Industry and Investment Summit to be held on July 3 at the Makati Shangri-La Hotel. For more information, please call Ethel Ruffa at +632 8481412 to 16, extension 119.

The author is Agriwatch chairman; former Cabinet secretary for Presidential Flagship Programs and Projects, former undersecretary of agriculture, and former undersecretary of trade and industry. For inquiries and suggestions, email agriwatchphil@yahoo.com or call or fax +632 8522112.