- New report from Open for Business estimates LGBTQ+ discrimination costs The Philippines between PHP 65.6 – 147.6 billion (or 0.30 – 0.67% GDP) per annum
- ‘Brain drain’ data indicates talent from the Philippines is moving to more inclusive countries such as Australia and the United States
- SOGIE inclusion can help boost tourism from all communities – not just those who are LGBTQ+
Open for Business, a coalition of leading global companies, haslaunched a new report exploring the economic case for inclusion in the Philippines, as well as five other Southeast Asia focus countries (Indonesia, Malaysia, Singapore, Thailand and Vietnam). The report, which combines findings from a range of quantitative and qualitative research methods, explores several factors that if addressed could improve economic performance.
The report estimates LGBTQ+ discrimination costs The Philippines between PHP 65.6 – 147.6 billion (or 0.30 – 0.67% GDP) per annum.
Increased efforts to reduce ‘brain drain’*, improve reputation and tourist appeal and close the LGBTQ+ wage gap all present opportunities to grow GDP and be more competitive with other economies.
The report indicates countries with more inclusive policies are usually less corrupt, and that the former tends to precede the latter. The Philippines had the poorest corruption score among the six countries in Open for Business’ report. While the Philippines’ Trade Secretary will be enlisting help from the Indo-Pacific Economic Framework for Prosperity (IPEF) to address corruption-related offences, this would imply that any work to further LGBTQ+ inclusion could have a positive knock-on effect on corruption levels in the country.
Next, it looks at the actual cost to the Philippines of LGBTQ+ exclusion. For example, the cost of LGBTQ+ depression costing between PHP 8.4 billion and PHP 25.3 billion. According to APCOM data, over one quarter (26 per cent) of LGBTQ+ adults in The Philippines have been diagnosed with moderate to severe depression. Secondly, in terms of healthcare costs, the report estimates the cost to society of government response to HIV and AIDS accounting for between PHP 24.3 billion and PHP 73.0 billion.
The wage gap between LGBTQ+ people and those who aren’t LGBTQ+ is estimated to cost the Philippines between PHP 32.9m and PHP 49.3bn. Despite this, research from Boston Consulting Group shows that programs in Southeast Asia that support LGBTQ+ employees are growing at less than half the speed of those which support women or other minorities. LGBTQ+ advocacy group APCOM is calling for the Philippines (and other countries in the region) to enact legislation to protect LGBTQ+ people from workplace discrimination. Currently, Thailand is the only country in the region to provide this.
LGBTQ+ discrimination can shape perceptions on a world stage, leading to a negative impact on talent attraction, export markets for consumer goods and tourism. The international reputation of a country has become a significant factor in the global competitiveness of its economy. A strong international reputation underpins trade-building activity and access to global markets. The Philippines’ recent efforts to market itself as a hotspot for LGBTQ+ tourists and their loved ones is an effective example of how to harness inclusion to strengthen economic impact.
Stephanie Galera, Head of Southeast Asia, Open for Business said: “This report demonstrates the potential economic impact improved LGBTQ+ laws and support can have on economies, business and individuals’ performance. The Philippines continues to make strides for LGBTQ+ citizens and visitors alike, and we hope this report helps strengthen the brilliant work being done by civil society and business leaders to take this and its economy even further.”
Aris Ambal, VP, PRIDE APAC Regional Lead, JPMorgan Chase, said: “In Southeast Asia, where cultural diversity and economic potential intersect, embracing LGBTQ+ inclusion can unlock unprecedented opportunities for innovation and growth. This report highlights a pivotal truth: businesses that champion and embrace LGBTQ+ inclusion not only attract top talent but also build stronger, more innovative teams. At JPMorgan Chase, we’ve seen how diversity, equity and inclusion enrich our workplace and drives success for our employees, customers, and clients. Together, we can create a more equitable and inclusive Southeast Asia.”
