‘Costlier fuel to eat into low wages’ By Justine Xyrah Garcia
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WO labor groups on Tuesday warned that the continued increase in fuel prices might further strain the already stretched budgets of Filipino workers, particularly minimum wage earners. Federation of Free Workers (FFW) President Sonny Matula said rising oil prices would lead to higher transport fares and more expensive basic goods—burdens that will surely hit low-income workers the hardest. “The increase in fuel prices underscores the urgency of a substantial wage adjustment. The proposed P100– P200 nationwide legislated wage hike now becomes not just a demand—but
WORLD » A8
CEASEFIRE TAKES EFFECT: ISRAEL AND IRAN END 12-DAY WAR AFTER US INTERVENTION
ROTARY CLUB OF MANILA JOURNALISM AWARDS
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an emergency or a lifeline to survive,” Matula told BusinessMirror. Currently, the minimum wage in Metro Manila stands at P645—the highest in the country—while the lowest is in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) at P361, highlighting the wide gap in regional pay and the need for a unified wage hike. The FFW president also called on the government to provide direct assistance to vulnerable sectors, especially workers in the transport and agricultural industries, who are among the hardest hit by the ripple effects of the ongoing conflict between Israel and Iran. He added that the Department
of Labor and Employment (DOLE) must ensure that no worker is left behind and that a responsive safety net is in place to protect those affected by inflationary shocks. “Scale up training and support for fuel-impacted sectors to help them transition, adapt, or supplement their incomes,” Matula advised government. Meanwhile, Sentro ng mga Nagkakaisa at Progresibong Manggagawa (Sentro) Secretary General Josua Mata urged the Marcos administration to go beyond issuing advisories and to consider regulatory intervention to prevent unjustified increases in oil prices. He said Republic Act No. 8479 or the
Oil Deregulation Law gives the government authority to act when domestic pump prices become excessive or when there are signs of market abuse. “After an initial spike, global oil prices have already stabilized. Recent geopolitical shocks were swiftly contained, and [Organization of the Petroleum Exporting Countries] has the capacity to keep supply steady. I see no justification for keeping domestic oil prices high,” Mata said. The Department of Energy (DOE) on Monday confirmed that oil companies had initially planned to raise prices by as much as P5 per liter this week, but later agreed to stagger the increases to ease the burden on consumers.
BusinessMirror A broader look at today’s business
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Q2 GDP PROJECTION AT 5.6% DESPITE JITTERS www.businessmirror.com.ph
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Wednesday, June 25, 2025 Vol. 20 No. 255
P25.00 nationwide | 2 sections 22 pages | 7 DAYS A WEEK
By Cai U. Ordinario @caiordinario
HE slowdown in inflation and the strong jobs data will boost the country’s GDP growth in the second quarter, according to the University of Asia and the Pacific (UA&P). straight month of slowing inflation. Based on the report, inflation is expected to average 2.2 percent this year despite the recent surge in crude oil prices in June due to the Middle East conflict. It also noted that while almost 650,000 new jobs were created in April, the unemployment rate increased slightly to 4.1 percent, the third time it was higher than 4 percent in the past 12 months. “NG spending should accelerate starting May. The external sector shows signs of modest improvement and should not pull down domestic demand expansion,” the report stated. “We expect the peso to depreciate in Q3 (third quarter) as the IsraelIran conflict rages” and the BSP cut policy rates by 25 bps (basis points), while the Fed decided to remain on hold, it added. The economists also expect that should the surge in oil prices be transitory, the BSP may continue its monetary easing with another See “GDP,” A5
MOVE TO CUT POLICY RATES WELL JUSTIFIED–THINK TANK
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HE Monetary Board decision to reduce interest rates last week was “well justified” and was expected of an inflation-targeting central bank, according to Global Source Partners. In an economic note, Global Source Partners country analyst and former Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo said the BSP has a large monetary space that supports the decision to reduce rates by 25 basis points (bps). This monetary space is made possible by the low inflation
that has recently slowed to 1.3 percent in May, below the 2 to 4 percent inflation target set by the BSP. “The relatively weak economic growth during the first quarter 2025 at 5.4 percent could be supported by dovish monetary policy. With its nimble performance in terms of assessment and appropriate action, the BSP is expected to deliver another rate cut in the second half of 2025, actual data permitting,” Guinigundo added. Guinigundo said that some quarters were skeptical about See “Move,” A2
DEFENSE ON DECK Japanese Ambassador Endo Kazuya, together with Defense Attaché Col. Aizawa Naoki and Rear Admiral Natsui Takashi, commander of Escort Flotilla Four, hosted a reception
aboard the visiting Japan Maritime Self-Defense Force (JMSDF) vessel JS Ise (DDH-182) at the Port of Manila on the occasion of the 71st anniversary of the Japan Self-Defense Forces (JSDF). Also in attendance were AFP Chief of Staff Gen. Romeo Brawner Jr. and National Security Adviser Eduardo Año. In his welcome remarks, Ambassador Endo highlighted the shared maritime identity and strategic interests of Japan and the Philippines, emphasizing the need to deepen bilateral defense cooperation. He cited the Reciprocal Access Agreement (RAA) as a milestone for expanded collaboration, and noted ongoing discussions on an Acquisition and Cross-Servicing Agreement (ACSA) and a future Security of Information Agreement. NONIE REYES
‘PHL still among top drawers of millionaires’
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HE country’s above-average GDP growth is the main draw for high-net worth individuals to come to the Philippines, according to the Henley & Partners Wealth Migration Report 2025. Its latest report showed a 32-percent growth in the number of millionaires in the Philippines between 2014 and 2024. The data showed there are 12,800 millionaires in the country. This is on top of the 70 centimillionaires or those with net investable assets of a million US dollars and above, as well as 12 billionaires in the country. “In terms of relevance for high-net worth individuals in any country, it
PHL WEALTH STATISTICS AND MILLIONAIRE GROWTH
HOW THE PHILIPPINES CAN COMPETE FOR HIGH-NET-WORTH MIGRANTS
12,800 millionaires* in 2024 — up 32% from 2014
Improve investor visa processes Emulate best practices from neighbors n Provide lifestyle and business incentives n Establish high-quality infrastructure and services n Promote the Philippines as a regional base n
*This is on top of the 70 centimillionaires or those with net investable assets of a million US dollars and above, as well as 12 billionaires in the country.
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NET CHANGE IN MILLIONAIRES IN 2025 (SELECT ASEAN) Singapore Indonesia Vietnam Philippines
Number of Millionaires
-250
0
250
500
750
1000
1250
Singapore leads with +1,600 millionaires, thanks to its golden visa and high-quality lifestyle.
just signals economic progress and general health of the economy. If a country can create new millionaires, it means that the economy is grow-
1500
“In terms of relevance for high-networth individuals in any country, it just signals economic progress and general health of the economy. If a country can create new millionaires, it means that the economy is growing and there’s good opportunities.” — Scott Moore, Henley & Partners
BM Graphics: Ed Davad
In its latest Market Call, economists from the UA&P said GDP will rise to 5.6 percent in the April to June period this year, fueled by consumption spending. This is despite the latest Consumer Expectation Survey (CES) of the Bangko Sentral ng Pilipinas (BSP) which showed consumers were more pessimistic in the first quarter this year compared to last year. “Continued below-target inflation and more monthly jobs in April should support consumer spending, despite BSP’s latest Consumer Expectations Survey [Q1-2025] showing a more pessimistic outlook,” the report stated. “Ongoing infra [infrastructure] projects will accelerate NG [national government] spending by May. External sector performance will likely improve mildly and well-positioned to lift domestic demand growth,” it added. UA&P economists noted that the country’s inflation rate slowed to 1.3 percent in May and 1.4 percent in April. The economists also said this marked the fourth
ing and there’s good opportunities,” Henley & Partners Managing Director for Southeast Asia Scott Moore said in a briefing on Tuesday.
Moore noted that while the Philippines is not part of the list of top countries that are attracting the world’s richest, it remains—as a developing country—an attractive destination for millionaires. “It presents huge opportunities for people to come and start businesses and capture success that would be impossible in developed countries,” Moore said. Meanwhile, he said that even if the country is set to lose 50 millionaires this year, this is an insignificant number, especially when compared to its neighbors. He noted that Vietnam is losing 300 millionaires this year while Indonesia is losing 250 See “PHL,” A2
PESO EXCHANGE RATES n US 57.5840 n JAPAN 0.3942 n UK 77.9112 n HK 7.3358 n CHINA 8.0232 n SINGAPORE 44.8404 n AUSTRALIA 37.1820 n EU 66.6765 n KOREA 0.0420 n SAUDI ARABIA 15.3488 Source: BSP (June 24, 2025)