NCR wage board begins wage consultations May 22 By Mary Jade Jadormio
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WORLD » A6
UN VOTES TO SUPPORT STRONG ACTION ON CLIMATE CHANGE DESPITE US EFFORTS TO THWART THE EFFORT
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ABOR groups said workers should not expect a substantial wage increase from the National Capital Region (NCR) wage board despite a fresh round of petitions seeking higher pay and the start of public consultations this week. The Regional Tripartite Wages and Productivity Board-NCR is set to begin its consultation process on May 22, starting with the labor sector, followed by discussions with employers on May 28 and a public hearing scheduled for June 18. The latest minimum wage ad-
justment in Metro Manila took effect on July 18, 2025, which raised the daily minimum wage to P695. The wage deliberations come at a time when inflation risks remain a concern, with economists warning that renewed pressures from global oil price increases could spill over into transport, food, and electricity costs, potentially pushing overall price growth higher and further eroding household purchasing power. Labor groups said expectations remain low for any significant increase despite the new round of hearings. Leaders of labor groups said the wage-setting system has consistently produced modest increases
that fail to keep pace with inflation, prompting renewed calls to reform the mechanism. Josua Mata of Sentro ng mga Nagkakaisa at Progresibong Manggagawa (SENTRO) said workers should expect only limited adjustments from the current round of wage deliberations. “To be honest, you cannot expect a three-digit increase. It will only be two digits. It’s just small change,” Mata said, mostly in Filipino. He said any increase is likely to remain within two digits and would not significantly close the gap between current wages and the cost of living in Metro Manila.
He added that labor groups will continue pushing for a P200 wage hike but acknowledged that wage boards have historically granted much smaller adjustments. Partido Manggagawa Secretary General Judy Chan-Miranda said its petition reflects the need to recover lost purchasing power amid rising prices. “The P200 is for wage recovery. A large portion of real wage value has already been eroded due to rising prices,” Miranda said. The labor group representative said workers are seeking what they describe as “wage recovery,” See “Wage board,” A2
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Friday, May 22, 2026 Vol. 21 No. 220
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By Justine Xyrah Garcia
HE government must step up efforts to maximize the country’s demographic dividend before the window narrows and the economic advantages of a young population begin to fade, according to analysts. The World Bank defines demographic dividend as the faster economic growth that can occur when a country has a larger share of working-age people relative to dependents, creating opportunities to boost productivity, investments, and consumption. Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co., said the Philippines should maximize this advantage now by attracting more investments tied to domestic consumption while the population remains relatively young. Ravelas noted that household spending accounts for roughly 70 percent of the Philippine economy, making the country attractive for investors targeting domestic demand. In the first quarter of 2026, household consumption remained the main driver of economic growth despite subdued spending, contributing 2.2 percentage points to the country’s 2.8-percent gross domestic product (GDP) expansion. He said this gives the Philippines an edge over many advanced economies, particularly G7 countries, where aging populations
have dampened consumption growth as older consumers tend to spend less and replace goods less frequently. “You want to make sure that it works well for you. Those things are different when your population is young,” Ravelas said in a recent briefing. Latest data from the Philippine Statistics Authority (PSA) showed that over half (63.9 percent) of the country’s population, or around 69.4 million Filipinos, belonged to the working-age group in 2020. Meanwhile, 30.7 percent or 33.4 million were classified as young dependents, while 5.4 percent or 5.86 million were considered old dependents. This brought the country’s dependency ratio down to 57 dependents for every 100 working-age Filipinos, lower than the ratio of 58 recorded in 2015. The dependency ratio measures the number of dependents supported by every 100 working-age Filipinos, with a lower ratio generally seen as favorable for economic growth. See “Demographic,” A2
SELLING THE LOOK Vendors at Commonwealth Market in Quezon City model uniforms worn over their regular clothing as they wait for customers on Thursday, May 21, 2026. Commonwealth Market is a major public market known for a wide range of goods, including fresh produce and school supplies, and typically sees increased activity ahead of the annual back-to-school season as families prepare for the opening of classes in public schools on June 8. NONOY LACZA
FIRMS MOVING TO LEANER OPS WITH A.I. –START-UP CEO By Bless Aubrey Ogerio
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PAVED WITH QUESTIONS Agriculture Secretary Francisco Tiu Laurel Jr. points to a
cartful of documents as he files complaint-affidavits before the Office of the Ombudsman against Department of Public Works and Highways (DPWH) officials over alleged irregularities in farm-to-market road (FMR) projects on May 21, 2026. The Department of Agriculture’s FMR Watch system has tracked 4,810 projects worth P76.52 billion from 2021 to 2025, covering nearly 2,400 kilometers nationwide, while earlier Senate disclosures cited in BusinessMirror reporting flagged P10.3 billion in potentially overpriced projects in 2023–2024. Eight of the complaintaffidavits involve flagged FMR projects in Davao Occidental. Story in News, page A5 NONOY LACZA
RTIFICIAL intelligence (AI) is no longer confined to experimental use and is now actively reshaping business operations by making companies leaner, faster and more cost-efficient, according to a startup executive. Paolo Angelo Florenda, Velocity AI chief executive officer, told the BusinessMirror that AI is already embedded in everyday business systems and is increasingly being used to streamline workflows, reduce operating costs, and change how work is structured across industries. “If you can be efficient in your workflow, if you can shortcut some processes in your workflow, it has a big impact on the busi-
ness,” Florenda said in an exclusive interview on the sidelines of Kapihan sa Red Dynasty in Manila on Wednesday afternoon. Citing industry estimates shared in his discussion, Florenda said generative AI adoption has grown rapidly in recent years, with usage expanding across both consumer and enterprise applications. He added that companies are now applying AI beyond simple tasks, with use cases expanding into marketing, customer service, and internal operations. Citing content production as an example, Florenda noted that tasks that once required entire teams can now be generated in minutes using AI tools. “We develop tools. Not to replace, but to enhance what people normally do.” See “A.I.,” A7
Bank assets up 8.61% to ₧37.4T as of end-Mar
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HILE the financial system remains “solid and liquid,” analysts said the growth of bank’s resources will hinge on the interplay between the central bank’s policy direction, liquidity conditions, and the “durability” of domestic demand. Experts shared these insights after data from the Bangko Sentral ng Pilipinas (BSP) showed that combined funds and assets of banks (excluding those held by the BSP) and non-bank financial institutions (NBFIs) increased by 8.61 percent to P37.45 trillion as of end-March 2026, from P34.481 trillion in March 2025. Carlo Asuncion, chief economist at Union Bank of the Philippines (UBP), said the increase in the Philippine financial system’s total resources to P37.45 trillion as of end-March 2026 largely reflects “continued” balance sheet expansion across both banks and non-bank financial institutions. Asuncion said this was supported by “steady” credit growth, deposit inflows, and ongoing asset accumulation amid still-resilient
domestic demand. Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co. further explained that banks are still expanding credit, especially to consumers and businesses, while elevated interest rates “boosted” asset values and earnings. He added that non-banks (insurance, funds) also benefited from stronger portfolios. Data from the central bank showed banks accounted for the bulk, or 83.04 percent of total resources, while NBFIs held the remaining 16.95 percent. Resources held by banks climbed 9.19 percent to P31.103 trillion from P28.485 trillion in March 2025. Broken down, universal and commercial banks (UKBs) continued to dominate the sector, holding 92.82 percent of total banking resources, or P28.871 trillion. This is higher by 8.41 percent from P26.631 trillion as of March 2025. Thrift banks accounted for 4.75 percent of all resources in Philippine banks, at P1.478 See “P37.4T,” A2
PESO EXCHANGE RATES n US 61.7250 n JAPAN 0.3886 n UK 82.9707 n HK 7.8804 n CHINA 9.0809 n SINGAPORE 48.3397 n AUSTRALIA 44.1334 n EU 71.7677 n KOREA 0.0412 n SAUDI ARABIA 16.4495 Source: BSP (May 21, 2026)