BSP, DOF cheer as JCR affirms PHL’s ‘A-’ T HE Philippines credit rating of “A-” with a “stable” outlook was affirmed by Japan Credit Rating Agency, Ltd. (JCR) on the back of the country’s “sustained economic growth.” In a report, JCR said the country’s growth will be driven by solid domestic demand, low-level external debt and resilience to external shocks supported by accumulated foreign exchange reserves. In 2025, JCR said the country’s economic growth is seen to remain in “the upper 5 percent range” despite uncertainties in external environment. “JCR’s affirmation will support and strengthen investment from Japan, one of the Philippines’ most important partners. The BSP
PUREGOLD BAGS TWO INTERNATIONAL AWARDS AT RETAIL ASIA AWARDS 2025. Puregold received the awards for Hypermarket of the Year (Philippines) and Integrated Campaign of the Year (Philippines) at last night's Retail Asia Awards ceremony in Singapore. Left to right: Puregold senior marketing manager Ivy Hayagan-Piedad, Sonny Bautista, Lyle Gonzales and Jeng Galang from Republic Creative Creations, Inc. and Siddharth Pathak, Senior Partner & APAC Leader for Consumer and Retail Practice at Kearney.
ROTARY CLUB OF MANILA JOURNALISM AWARDS
2006 National Newspaper of the Year 2011 National Newspaper of the Year 2013 Business Newspaper of the Year 2017 Business Newspaper of the Year 2019 Business Newspaper of the Year 2021 Pro Patria Award PHILIPPINE STATISTICS AUTHORITY 2018 Data Champion
will continue to safeguard price and financial stability to boost the country’s resilience amid global headwinds,” Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona Jr. said in a statement. Finance Secretary Ralph G. Recto affirmed the government’s commitment to its fiscal consolidation agenda and Road-to-A strategy. “This is very good news. It means credit rating agencies and investors continue to have strong confidence in our country,” Recto said. Following the passage of the CREATE MORE Act and the Capital Markets Efficiency Promotion Act, Recto said the government will “continue to work on creating an investment-enabling environment to increase the country’s eco-
nomic growth potential.” The rating agency also recognized the country’s progress in fiscal consolidation, noting the continued narrowing of the fiscal deficit ratios and a government debt-to-GDP ratio of approximately 60 percent by end-2024. JCR also noted the passage of the Create More Act, which enhances the ease of doing business, clarifies the scope of value-added tax (VAT), rationalizes the VAT and excise tax refund system and streamlines income tax incentives. These measures, the agency said, have strengthened the tax regime and improved the overall investment climate in the country. However, JCR said reducing income disparity through rural de-
velopment and infrastructure development remains an important task that must be addressed. JCR noted that with a population of approximately 113.9 million, the Philippines is considered the second largest Southeast Asian country. The country’s per capita GDP stood at $12,103 in purchasing power parity (PPP) terms in 2024. The credit rating agency said the economy has benefited significantly from personal consumption, remittances, and the growth of fixed capital formation through infrastructure investments. JCR also cited the country’s strong external position and ample foreign exchange reserves as well See “BSP,” A17
BusinessMirror A broader look at today’s business
EJAP JOURNALISM AWARDS
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(2017, 2018, 2019, 2020, 2021) DEPARTMENT OF SCIENCE AND TECHNOLOGY
2018 BANTOG MEDIA AWARDS
FOOD PRICES HIGH AMID INFLATION AT 66-MO LOW www.businessmirror.com.ph
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Friday, June 6, 2025 Vol. 20 No. 236
P25.00 nationwide | 2 sections 30 pages | 7 DAYS A WEEK
By Cai U. Ordinario @caiordinario
HE country’s inflation rate may have slowed to a 66-month low in May 2025 but food prices remain elevated based on the latest data released by the Philippine Statistics Authority (PSA) on Thursday. INFLATION AT A GLANCE (MAY 2025)
Rosemarie G. Edillon, DEPDev: “This reflects the success of our sustained efforts to protect the purchasing power of Filipinos.”
PSA data showed inflation averaged 1.3 percent in May 2025, the slowest rate in 66 months or since the 1.2 percent posted in November 2019. In April, inflation averaged 1.4 percent while the rise in commodity prices averaged 3.9 percent in May 2024.
n Pork: +7.9% (203.3% share of inflation, or 1.4 ppt) n Fish: +5.7% (98.1% share, or 0.7 ppt) n Eggs/Dairy: +4.9% (45% share, or 0.3 ppt)
BOTTOM 30% INCOME HOUSEHOLDS n Overall inflation: 0% (due to rice price drop)
Infographics: Ed Davad
INFLATION DRIVERS
Headline inflation: 1.3% (66-month low, since Nov 2019) n Core inflation: 2.2% (unchanged from Mar–Apr 2025) n
(See: https://businessmirror. com.ph/2025/06/05/inflationslows-to-1-3-in-may-psa/). However, core inflation which excludes volatile food and energy items remained at 2.2 percent in May 2025, the same rate it posted See “Food,” A2
EXPERTS SEE P200 WAGE HIKE AS A DOUBLE-EDGED SWORD
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HE wage increase approved by the House of Representatives (HOR) may be a “just reward” for workers who have become more productive in recent years, but the higher pay could hasten inflation and discourage foreign
businessmen from investing in the Philippines, according to local economists. Former Socioeconomic Planning Secretary Dante B. Canlas said the P200 across the board wage hike, the first in 36 years See “Experts,” A18
SM SUPERMALLS HONORED FOR SUSTAINABILITY AND INCLUSIVITY AT THE 2025 ASIA-PACIFIC TAMBULI AWARDS
SM Supermalls earned two Silver Tambuli Awards at the 2025 Asia-Pacific Tambuli Awards held at the Grand Hyatt in Bonifacio Global City. The highlights SM Supermalls’ significant strides in sustainability through green infrastructure and smart technology, as well as its commitment to inclusivity through the Mall for All campaign. Notable programs include the Happy Walk for Down Syndrome, Angels’ Walk for Autism, and nationwide sensitivity trainings. Proudly representing SM Supermalls at the ceremony were (from left) Vice President for Operations Junias Eusebio, Senior Manager for Sustainability Belinda BartolomeGonzales, President Steven Tan, Executive Vice President for Marketing Jonjon San Agustin, and Assistant Vice President for CSR Marketing Richard Caluyo. SM SUPERMALLS
HIGH HOPES The P10-million NIA-Southroad-Scout Borromeo footbridge—dubbed “Mt. Kamuning” for its height comparable to a four-story building—was photographed on Thursday, June 5, 2025. The footbridge drew flak from pedestrians and transport advocates over safety and accessibility concerns. During the launch of the MRT-3 Pamilya Pass last weekend, President Ferdinand Marcos Jr. ordered its replacement. Construction of the new, redesigned bridge is set to begin this year to ensure safer, more commuter-friendly infrastructure. NONOY LACZA
Ecop on ₧200 wage hike: Ignoring reality By Andrea E. San Juan
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@andreasanjuan
AWMAKERS are “ignoring the realities” by greenlighting the P200 across-theboard daily wage hike as this will only benefit about 10 to 16 percent of the workers in the country, leaving behind small merchants who will be forced to grapple with higher prices of goods once the wage hike is enacted, the head of the Employers’ Confederation of the Philippines (Ecop) said. “What they are doing is actually ignoring the realities. The reality is increasing P200 minimum wage
and the President knows...this will only benefit about 10 to 16 percent of the workers,” ECOP President Sergio R. Ortiz-Luis Jr. told the BusinessMirror in a phone interview on Wednesday night. The Ecop chief noted that the 84 to 90 percent of the workers “do not have employers who will increase their salary, so they are being left behind.” Ortiz-Luis expressed concern that the ones who might get left behind due to what he called a “salary scale distortion” are the farmers, fisherfolks, tricycle drivers, jeepney drivers, market vendors, small businesses, among others.
“No one will give salary to them so they will rely on the government,” he noted. Ortiz-Luis also explained that even those belonging to the 16 percent in the formal sector, which would supposedly benefit from the wage hike, are “micro-industries.” “Eight percent is small, 1 percent is medium, and less than 1 percent is large. The medium and large, they can afford it, but they are paying more than that. The micro, no way,” the Ecop chief also told this paper. Many businesses struggle to pay even “just 13th month pay,” and sometimes seek assistance—or
exemption—and always “have to chase after funds for their payroll,” Ortiz-Luis said, partly in Filipino. The head of the umbrella organization for employers in the Philippines pointed out that once the mandated wage hike is enacted, the small enterprises would have to raise prices. A consequence of having to increase the prices of goods may be the downsizing of businesses and job cuts. “What will happen is those, because this is mandated, they will put up their prices. That is, if the market will still buy it. If not, they See “Ecop,” A2
PESO EXCHANGE RATES n US 55.7890 n JAPAN 0.3909 n UK 75.6276 n HK 7.1119 n CHINA 7.7744 n SINGAPORE 43.3683 n AUSTRALIA 36.1959 n EU 63.6999 n KOREA 0.0410 n SAUDI ARABIA 14.8783 Source: BSP (June 5, 2025)