PRA @ 22 - Philippine Retirement Authority

PHILIPPINE RETIREMENT NEWS www.pra.gov.ph
JUNE 2007
PRA @ 22: Smiling
At Life
O
n July 4, the Philippine
Retirement Authority (PRA)
will celebrate twenty-two
years of continued success. Under
the leadership of former National
Police Director, Gen. Edgar B.
Aglipay, PRA has exceeded its
targets.
For the year ending 2006, PRA
gained a 27.1% increase in
enrollment. “We have received
over US$43 million in retiree
investments,” Aglipay said. “Our
gross income increased by 37%;
while net income after tax
increased by 43%. We have set
our sights higher,” he continued.
“With our intensified marketing
campaign, sustained public
relations campaign, and stronger
partnerships with private firms,
we expect to enroll 3,000 retirees
for this year alone.”
Special events will cap the
anniversary celebration to be held
at the Philippine Army Officers’
Clubhouse on July 13, 2007.
GMA Leads Launch of Retirement
Facilities in Batangas
T
he country’s retirement industry
got a big boost during the
groundbreaking ceremonies of
three retirement villages in Nasugbu,
Batangas.
Pres. Gloria Macapagal - Arroyo
led the launch of Imperial Silvertown,
a multi-million retirement village
designed for the Korean market;
Chateau Evercrest Retirement Project,
consisting of a hotel, medium-rise
condominiums, villas and medical
facilities; and Batulao Monte Grande,
a mixed-use facility for leisure,
retirement and tourism. The
President also took a tour of the
Metropolitan Hospital owned by the
Ever Gotesco Group.
Other than these retirement
destinations in Batangas, other
projects are being developed in
Benguet (Ilimi Project), Pampanga
(Lakeshore), Bohol (Paraiso Village
Development), Tagaytay (Tagaytay
Highlands) and Bonifacio Global City
(Serendra).
Present was Philippine Retirement
Authority Chairman Gen. Edgar B.
Aglipay, who envisions the
Philippines as the retirement haven
in Southeast Asia.
We have formulated new policies to
make the retirement industry more
competitive in the global market.” he
added. These include the reduction of
the required deposit investment;
option for retirees with pension;
Brain-Gain Program and the Long-
Staying Tourists Campaign otherwise
known as the Loyal Visitor Program.
All these initiatives are in line
with Aglipay’s three-fold goal: to
generate annual revenues of
US$16.39 billion, create four million
jobs and welcome 859,250 retirees
by 2015.
The 8 by 08: Investing in People
goals released by the National
Economic and Development
Authority (NEDA) echo President
Arroyo’s thrust towards increased
investment in the retirement
industry.
Pres. Gloria Arroyo with PRA Chair Edgar Aglipay and guests in Batangas
In this Issue:
GM’s Corner: Raising the Bar
on Retirement Housing Facilities… 2
Law Allows Balikbayans To Own
Land In RP. . . . . . . . . . . . . . . . 2
PRA/PRI Hails Korean Importers
Trade Mission. . . . . . . . . . . . . . 3
PRA Implement Stricter
Standards for Facilities…… 3
All Systems Go for Korea
Consortium Project……… 4
Aglipay’s Twin Strategy to Achieve Retirement Goals
en. Edgar B.
G Aglipay, the
indefatigable
Chairman of the
Philippine
Retirement
Authority (PRA), is determined to bring in
retirement-related investments amounting
to US$44 billion by 2015.
To achieve this, Gen. Aglipay embarked
on a crusade that emphasizes the synergy
between foreign investors, business
organizations and government agencies.
Aglipay regularly travels to target retiree
markets such as Korea, Japan, China and
North America to establish strong linkages
with various retirement organizations and
potential investors. To date, there are
several business groups who have
committed to invest in the country. In
addition, foreign organizations have begun
to actively promote the Philippines as best
destination for their employees. To sustain
the momentum of success, Aglipay also
leads nationwide caravans aimed at
soliciting the support and active
participation of local government units
(LGUs) and businessmen. “The continued
cycle of investment and consumption
ultimately leads to economic gains,” he
said, “All levels of our society will benefit
from the presence of retirees. We only
have to work together to make the
Philippines the destination haven of Asia.
We can definitely become number one.”
added.

Page 2
PHILIPPINE RETIREMENT NEWS
GM’s Corner: Raising the Bar on Retirement Housing Facilities
A
s the Philippines
begin to position
itself as the
preferred retirement
destination in Southeast
Asia, it is high time for
existing facilities to shape up and meet
international standards.
Although there is an existing set of
standards implemented by the Philippine
Retirement Authority since 1985, the new PRA
Board of Trustees chaired by Police Director
Edgar B. Aglipay (Ret.), and the new PRA
management team headed by yours truly as
Acting General Manager, with the assistance of
its private sector partner, the Philippine
Retirement, Inc., will be imposing stricter
guidelines to make the industry globally
competitive as well as to ensure the well-being
of foreign and local retirees alike.
The standards will focus on three main areas
of concern: Housing, Healthcare and Lifestyle
Services.
To effectively address the needs of the
retirees, the retirement facilities are further
categorized according to: Active Retirees,
Intermittent Care Dependent, and Continuous
Care Dependent.
Housing – Primarily, any retirement facility must
abide by the National Building Code and
specifications stipulated by PD 857. The interested
party may then apply for accreditation to acquire the
PRA seal of approval. Several aspects will be
evaluated such as the security of the residents
within and around the facility, and safety measures
such as handle bars and correct wheelchair inclines,
where appropriate. The facility must also
demonstrate its financial capability by presenting
supporting documents.
Healthcare – The facility must consider its
proximity to the nearest medical facility in case any
of the residents require medical attention. The
facility must have a tie-up with the hospital or clinic
to expedite medical services. It should be noted,
however, that PRA will not consider any medical
facility until it has passed the standards imposed by
the Department of Health. Access to well-equipped
ambulance service with competent paramedics is
also necessary.
Lifestyle Services – The lifestyle aspect of the
accreditation has no hard and fast rules. While
Housing and Healthcare have minimum standards to
be met, lifestyle serves as a rating scheme akin to
the hotel star rating system. This will help the
retirees decide whether a facility has all the
amenities in its vicinity to address their specific
needs. The facility will receive a better rating if
it is near shopping centers, places of worship,
fitness facilities, continuing education
academies, etc. The facility, through lifestyle
services, must strive to meet the physical,
mental, emotional and spiritual needs of its
residents.
With the intensifying competition in the region,
the Philippines have lagged behind countries
like Thailand and Malaysia in attracting foreign
retirees. The rew retirement concept hatched by
the government and private sectors is expected
to boost confidence in our envisioned retirement
communities. This will benefit not only foreign
retirees but our own aging populace as well.
The idea of placing a loved one in a retirement
facility or nursing home has yet to be the norm
and in fact entails negative connotations of
abandonment. In time, however, the general
public will realize that the elderly have specific
needs that may not be met by a close relative or
an amateur caregiver. Thus, we must support
the burgeoning retirement industry both as a
steady means of earning foreign currency as
well as any alternative way of living for our
retirees.
ABOUT THE AUTHOR: Fernando Z. Francisco worked as a Resident Manager of the Plastic Processing Center, Special Economic Zone (PEZA) for more than a
year in Mariveles, Bataan, Philippines. His responsibility included the general management , human resources and security management of the zone and two plants,
Diversified Plastic Film Systems, Inc. and Modern Plastic Films, Inc. He has over 12 years of experience in distributed information systems, involving project
management, analysis, design, implementation, database, finance and marketing. He is a Microsoft Certified Professional, a former Philippine Army general staff corps
officer and a member of the Philippine Military Academy Class 1971. He took up MS Industrial Engineering at the University of the Philippines, Marketing at York
University in Toronto, Canada and Software Programming at Prime Tech Institute, also in Toronto, Canada. He is currently the Acting General Manager of the
Philippine Retirement Authority.
Law Allows Balikbayans To Own Land in RP
G
ood news for Filipinos based abroad who
would like to retire in the Philippines. By
virtue of Presidential Decree 185
referred to as the Balikbayan Act, any naturalborn
Filipino, at least 18 years old, who has lost
his citizenship due to naturalization abroad, can
now invest in real estate.
The law permits a Balikbayan to be a
transferee of private land, for use by him as his
residence. This is in line with the Philippine
Retirement Authority’s mandate to attract and
keep foreign retirees and former Filipino
citizens.
However, there are limits to the extent of their
purchase. A Balikbayan is allowed to buy either
a maximum of 1,000 square meters of urban
land or one hectare of rural land. Purchase of
either an urban or rural land is mutually
exclusive. One can only acquire either one, but
not both.
In case of married couples, the combined
landholding acquired must not exceed the limit
set by law.
Balikbayans arriving at the airport

PHILIPPINE RETIREMENT NEWS
Page 3
PRA/PRI Hails Korean Buyers
Trade Mission
By: Jun Brual
T
op executives of Korean import
enterprises, otherwise known as the
Korea Importers Association (KOIMA)
recently arrived for a week-long mission in the
country to meet with local exporters. KOIMA,
the lone private sector organization in South
Korea that accounts for 80% of all imports into
their country, was led by its Chairman, Kim
Wan Hee.
Joining Kim Wan Hee for the said trade
mission are presidents, chief executives and
representatives of different importing
companies in Korea. Their interests included
industrial chemicals and mineral products such
as raw materials of manufactured goods,
rattan baskets and furniture products.
T h e Philippine Retirement Authority and
the Philippine Retirement, Inc. played host
to the Korean investment and trade mission
last May 17, 2007 highlighted by a welcome
program and brief presentation led by PRA
Chairman Edgar Aglipay.
By: Janina Caballero-Bernardo
V
eering away from one’s comfort zone is
never an easy feat. All the more so when
it entails moving to a totally different
country to live amongst people whose history
and culture is unlike one’s own.
Nevertheless, the old business adage of
“The greater the risk, the higher the return”
applies even to retirement planning. And
many individuals from industrialized countries
have begun to consider retiring in developing
nations like the Philippines. Here the weather
is perpetually warm and their money, when
converted to peso, allows them to enjoy a life
of relative luxury and ease.
With the global phenomenon of population
decline in industrialized countries resulting in
failing retirement support systems and
dwindling pensions, retirees coming to the
Philippines is considered a win-win situation
RP Woos Retired Japanese Scientists
BAGUIO CITY — The Philippines is
encouraging Japanese retirees to teach and work
in the Philippines under a new visa offered by the
Philippine Retirement Authority (PRA).
Under the PRA’s “Lifetime Visas,” foreign
retirees, like the Japanese experts, will get
special privileges, such as the right to lease
property for 25 years. “These are people who
want to continue working but cannot do so in
Japan, so we offer them a chance here, “Aglipay
said, “The agreement also solves the country’s
brain drain triggered by the exodus of Filipinos
seeking work abroad.”
He also credited a Japanese consultant for
providing Malacañang with the new concept last
year, after the expert realized the country has a
comprehensive tax policy for retirees.
Japan’s strict labor code bans government and
private firms from hiring workers over 60 years
old because of the costly insurance coverage.
However, data from The Future of Retirement, a
study commissioned by a leading global bank, the
PRA Implements Stricter Standards for Retirement Facilities and Services
for both the retiree and the host country. The
retiree benefits from the low cost of living while
the host country’s economy is boosted by the
increased consumption of good and services
thereby increasing foreign reserves and creates
more jobs for the locals.
Yet with all the advantages offered to a typical
foreigner, convincing them to venture into the
unknown isn’t as simple as it seems. For one
thing, many Southeast Asian nations have also
begun to aggressively market their retirement
programs by constantly airing commercials on
international television, developing clever tag
lines and jingles and promoting picturesque ads in
major glossies. This constant bombardment of
advertisements has made arriving at a decision to
relocate all the more confusing. The limited
budget allocated for promotion by the Philippine
government has made competing with more
Japanese look forward to their later years as a
time of good health, family considerations and
continued fulfillment from work. By 2015, it is
predicted that there will be over 40 million senior
Japanese citizens.
“Smile at Life in the Philippines” is the invitation
being extended by the Philippine government to
lure Japanese retirees to the country. The cities of
Baguio, Cebu, Davao and Metro Manila; special
economic zones at Subic Bay and Clark; and the
resort city of Tagaytay are being positioned by PRA
as the country’s retirement destinations.
“We have moved from just selling visas to
actually offering world-class package developments
coupled with the Filipinos’ unparalleled world-class
of care giving,” Aglipay said.
affluent Asian nations more difficult. Not to be taken by
the competition, the Philippine Retirement Authority, with
the assistance of the Philippine Retirement Inc. has come
up with a unique product offering as an innovative global
marketing strategy that would certainly leave the
competition eating the dust.
After several months of consultations with
industry leaders, the Philippines now boasts of a
comprehensive accreditation standards manual and
checklist. With the Accreditation seal of approval
now in place, retirees are assured of quality
products and services at par with global standards.
Last May 22, the Accreditation Standards was
formally launched during a seminar held at the
Citibank Center in Makati City. Present were Gen.
Edgar Aglipay and Col. Fernando Francisco, PRA
Chairman and General Manager, respectively; with
Willie Uy and Ernesto Ordoñez, PRI Chairman and
President, respectively.

Philippine Retirement Authority
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All Systems Go for Korea Consortium Project
By: Jun Brual
T
o date, there are more than 80,000
Korean residents living in various
locations around the country and the
number is increasing.
There are several reasons why they choose
to retire in the Philippines. For one, the
warm, tropical climate suits winter-weary
Koreans. Their pension, which is insufficient
to fund a comfortable life back in their
motherland, is enough to provide a decent
standard of living, even in the metropolis.
Moreover, for the enterprising Korean,
there are numerous opportunities to do
business. Heung-Chui Kwon, Korea Desk
Director of Small Business Corporation/Board
of Investments, echo his compatriots’
observation.
In an interview with a leading
newsmagazine, Kwon, bullish about local
economy, stated that “this year is the right
time for Koreans to invest here.” Last year,
investments from Korean businessmen
amounted to US$10 billion. It is therefore a
most opportune time for the Philippines to
aggressively market to Korean investors and
retirees.
Slated for June and October 2007, the
Philippine Retirement Authority (PRA) is
spearheading trade missions to Korea. This
early, several Korean resort developers and
marketers have confirmed their participation.
For organizations interested to join
international road shows, contact PRA thru
email address inquiry@pra.gov.ph.
Korea’s Jongmyo Jeryeak ritual
HASSLE FREE… LIFETIME VISA
EDITORIAL BOARD
PHILIPPINE RETIREMENT NEWS
Col. FERNANDO Z. FRANCISCO (Ret.)
Editor-in-Chief
ERLINA P. LOZADA
Managing Editor
ROLAND S. CASALS
Layout Artist
Philippine Retirement Authority
Tel: 848-1418
Facsimile: 848- 7106
www.pra.gov.ph
Email:inquiry@pra.gov.ph