Philippines: A retirement haven?

Many years ago, the country was harping on the possibility of establishing huge retirement villages for other countries’ aging population. Today, however, the frustration is just as high as that lofty dream and as deep as a retiree’s final resting place. Never fault our line agencies, however, because whether their efforts are inadequate and so limited, it is a fact that they’ve done their best in promoting it. 

We must realize though, that success in every undertaking does not rest solely on best-effort basis.  More often, when we give our best on the more appropriate courses of actions, better results are achieved. 

Just like any business, for this to succeed, we must be customer-focused.  Therefore, first and foremost, we should know their (retirees) preferences.  Definitely, our potential customers are those who are willing to be away from their families and friends and have the money to give away for paid comforts and caresses.  Therefore, rich countries with superior retirement benefits are great potential. 

Though they can be easily identified, let’s not forget that the real issue is, they can recognize us.  For easy recognition, this country should be on top of the list of their preferred destinations.  How? That’s the challenge.  One thing though, these retirees decide based on their priorities.  Priorities include, proximity to their homes, cost of living, weather, availability of telecommunications, infrastructure, safety (peace and order), best health care,  investment priorities and tax incentives (should retirees find a way to invest their retirement pay).  Their main consideration really is whether what we are to offer are far greater than those offered in their home countries. 

With these criteria in place, you can’t see our country on top nor as one of the top ten preferred destinations.  Sadly, in the International Living’s latest survey, we are lagging behind at no. 116.  Though really sad, we are not that bad, we are still better than Afghanistan and Iraq, the tail-ender.  In the top ten preferred destinations, Mexico was on top.  Aside, from its proximity to the USA and Canada, it also offered so many things other countries are giving, like exemption from paying import duties and the best health care provided by US trained professionals.  Other Latin American countries like Ecuador and Panama are likewise on the list.  On the other hand, Italy tops European countries which included Ireland and Belize. 

Surprisingly, however, while Latin American and European countries have the edge and will probably dominate the market due to their proximity to the huge markets, our neighbor, Malaysia, installed itself as Asia’s best by being one of the world’s top as well.  There being on top should not be a source of envy for us but an inspiration.  Since geographically we are similarly situated, then it is not proximity to a huge market but facilities and incentives are the bigger issues.

What they’ve done are not earth-shaking after all.  They simply studied it long and hard.  They started it three years ago when they launched “Malaysia-My Second Home” (MM2H) by offering foreigners, particularly retirees, to live permanently in their country. They started by giving five-year visa with unlimited entry/exit privileges and without minimum annual residence requirement. Permanent residency is also a possibility after a five-year stay.  Retirees may also bring in household effects duty-free, and import or purchase one vehicle locally, tax free.  Income tax incentives are also offered for investing retirees.

Taking it from Malaysia’s experience, we can still be a preferred destination.  All we need to have is the right direction and supported with more appropriate legislations.