Mideast war to hit AsPac jobs, incomes–ILO
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HE Middle East crisis is expected to squeeze jobs and incomes across Asia and the Pacific, including the Philippines, with the International Labour Organization (ILO) warning that reduced working hours in the region could reach the equivalent of 11.3 million full-time jobs this year. In its Employment and Social Trends: May 2026 Update released Monday, the ILO said Asia and the Pacific is the most exposed region next to the Arab States because of its heavy reliance on Gulf-linked energy, trade, tourism, migration and remittance flows.
“Although the region as a whole is not directly affected by the conflict in the same way as the Arab States, it is highly exposed through energy imports, transport and logistics networks, tourism, labor migration and remittance flows. These channels connect external shocks to jobs, incomes and enterprises across the region,” the ILO said. The UN agency said hours worked in Asia and the Pacific could decline by 0.7 percent this year and 1.5 percent in 2027 if elevated oil prices persist amid the prolonged conflict. These losses are equivalent to around 11.3-mil-
lion full-time jobs in 2026 and 30.7 million next year. The ILO said labor market pressures from economic shocks typically emerge first through reduced working hours and weaker incomes before translating into higher unemployment. The agency expects real labor incomes in the region to fall by 1.5 percent this year and 4.3 percent in 2027 as rising fuel and logistics costs fuel inflation and erode household purchasing power. The decline in labor incomes could amount to losses equivalent to about $660 billion this year and $1.9 trillion in 2027, the report
showed. The region’s unemployment rate could also rise by 0.2 percentage point this year and 0.8 percentage point in 2027 as firms cut hiring and scale back operations amid higher energy and transport costs. The agency said labor market pressures in Asia and the Pacific are expected to exceed the global average, particularly in economies heavily dependent on imported oil and gas. “The region’s dependence on imported energy and its deep integration into trade, production and mobility networks mean that See “War,” A2
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ULTILATERAL development banks (MDBs) said they are bracing for economic spillovers from the escalating Middle East conflict as disruptions to energy, fertilizer and trade routes threaten inflation, jobs, and food security in developing economies. In a joint statement, major development lenders—including the Asian Development Bank (ADB), World Bank Group (WBG), and the European Bank for Reconstruction and Development (EBRD)—said they are responding to requests from countries seeking support to manage the “heterogeneous and compound impacts” of the crisis. “MDBs are uniquely positioned to combine financing, policy support, private sector instruments, and technical expertise at scale to help countries manage shocks, preserve development gains, and strengthen long-term resilience,” the banks said. Among the measures identified in the statement are support programs aimed at preserving access to essential goods such as energy, food and agricultural inputs, particularly for economies heavily exposed to supply disruptions and commodity price volatility. The MDBs also said they are expanding trade and supply-chain fi-
nance programs to help ensure continued access to critical imports and support efforts to diversify sources of supply. To help governments facing rising fiscal pressures, the lenders said they are prepared to provide fastdisbursing budget support intended to cushion the impact of external shocks on vulnerable households while allowing governments to maintain essential services. The statement also highlighted support for businesses, including micro, small and medium enterprises (MSMEs), utility companies and public-sector clients facing heightened market volatility. This includes the provision of working capital, liquidity support and advisory services aimed at helping firms manage rising costs and protect jobs amid uncertain economic conditions. The MDBs said policy advice and technical assistance would also form part of the response, particularly in
CONSUMERS SNAP AT RISING ELECTRICITY BILLS The Power for People Coalition trooped to the Senate to call for immediate and long-term safeguards amid the worsening energy
situation and rising electricity costs, which they said have been driven by power firms passing on fuel-related charges to consumers. During the protest, one demonstrator wore a crocodile mask, a symbol commonly used to represent corruption in public governance. NONIE REYES
See “M.E. war,” A2
HELBERG: TOP AMERICAN FIRMS KEEN ON PAX SILICA, LUZON HUB By Bless Aubrey Ogerio
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PHILHEALTH’S EXPANDED BENEFITS Expanded benefit packages from the Philippine
Health Insurance Corp. (PhilHealth) now provide measurable relief for members by reducing outof-pocket health expenses, as private hospitals step up participation in the agency’s programs. President Ferdinand R. Marcos Jr. and PhilHealth President and CEO Dr. Edwin M. Mercado recently visited St. Elizabeth Hospital Inc. and The Medical City in Ortigas to observe on-ground implementation of benefits such as YAKAP primary care consultations, cancer treatment support, dialysis services, and inpatient care, including the Alfredo R.A. Bengzon Patient Access Ward at The Medical City, a 51-bed facility offering expanded coverage with minimal to no out-of-pocket costs. Easing financial burdens and widening access to treatment align with PhilHealth’s push to expand accreditation and strengthen partnerships with private healthcare providers nationwide across services including emergency care, maternity, dialysis, cancer care, and Z Benefits for catastrophic illnesses. PHILHEALTH PHOTO
ORE than a dozen major American companies are signaling interest in joining the Pax Silica initiative and the broader Luzon Economic Corridor which will rise in New Clark City, according to a senior government official of the United States. US Undersecretary of State for Economic Affairs Jacob Helberg, who is on a visit to the Philippines and Singapore from May 17 to 21, said the firms currently in the delegation have all indicated willingness to take part in the project. “We have over a dozen companies that are here with us. Several of them are over-a-billiondollar companies,” Helberg told reporters during a site visit in
New Clark City on Monday. He said the current group represents only a fraction of the total number of companies expressing interest, noting that more firms are expected to engage in the initiative in subsequent visits after missing the initial trip due to time constraints. Asked whether the firms are American, Helberg confirmed: “They’re all Americans. That’s right.” The Philippines formally joined the US-backed Pax Silica in April, a program that aims to build integrated industrial ecosystems focused on artificial intelligence, semiconductors, critical minerals, advanced manufacturing, and supply chain resilience. See “Helberg,” A2
DLSU economists cut growth forecast to 3.1%
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HE Philippine economy is staring at another year of underperformance, with economists from De La Salle University (DLSU) slashing their 2026 growth forecast to 3.11 percent as war-driven oil prices and mounting second-round inflationary pressures batter domestic demand. The revised projection is sharply lower than DLSU’s earlier 3.79-percent forecast and well below the 4.4 percent expansion recorded in 2025. If such an outcome were to come true, it would mark the fourth straight year that the Marcos administration falls short of its growth goal, with the government targeting 5- to 6-percent gross domestic product (GDP) expansion for 2026. It would also be the country’s weakest economic expansion since the pandemic-induced 9.5-percent contraction in 2020. “With no end to the war in sight, we expect the Philippine economy to grow well below its potential for the remainder of 2026,” DLSU said in its latest economic report. The think tank said the economy’s 2.8-per-
cent growth in the first quarter was likely the last reading that reflected “pre-shock normalcy,” before elevated fuel prices, tighter financial conditions and supply disruptions fully filtered through the broader economy. DLSU expects growth to remain weak at 2.8 percent in the second quarter before slowing further to 2.3 percent in the third quarter as higher transport, food and energy costs weigh more heavily on households and businesses. A modest recovery may emerge in the fourth quarter, with growth projected at 4.5 percent, driven by catch-up government spending, stronger remittances and a possible improvement in investments should geopolitical tensions ease. For 2027 and 2028, DLSU expects GDP growth to recover modestly to 3.9 percent and 5.7 percent, respectively. Still, both projections remain below the government’s targets, raising the prospect that the Marcos administration could miss its growth goals throughout its term. Household spending, the economy’s main See “Growth,” A2
PESO EXCHANGE RATES n US 61.6840 n JAPAN 0.3888 n UK 82.2124 n HK 7.8778 n CHINA 9.0526 n SINGAPORE 48.1944 n AUSTRALIA 44.0670 n EU 71.7200 n KOREA 0.0412 n SAUDI ARABIA 16.4385 Source: BSP (May 18, 2026)