Philippines

Philippine President Benigno Aquino III has called for deliberations on a minimum wage hike to be fast-tracked. In particular, Aquino mentioned the Eastern Visayas region which has gone for two years without any wage hikes. We caution that should a stronger-than-expected wage hike be implemented, there may be increased pressures on headline consumer price inflation down the line. Meanwhile, the Philippine Chamber of Commerce and Industry (PCCI) and Employers Confederation of the Philippines (ECOP) have also warned that a wage hike may lead to the shutdowns of companies already squeezed by rising costs.

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