A halt to legislated wage hikes is part of the wish list the private sector wants to share with President Ferdinand Marcos, Jr. as the business community awaits the Chief Executive’s fourth State of the Nation Address (SoNA) this month.
Sergio R. Ortiz-Luis Jr., president of the Philippine Exporters Confederation Inc. (PHILEXPORT) and the Employers Confederation of the Philippines (ECOP), said in a recent interview over DZXL that business establishments are hoping that the President, in his SONA will state that he does not favor any more legislated wage hikes in the future.
The SoNA, which will be held on 28 July, is a platform through which the head of state delivers his report on the country’s status and highlights the priority bills the administration wants Congress to pass.
“Gusto sana naming marinig kay Presidente na ulitin niya na kinonvene na niya ang regional wage board dyan at itinaas na ang sweldo at sunud-sunod na yan. Para mahinto na itong effort na i-refile na naman yan, ulitin na naman yan. Alam naman nilang walang mangyayari dahil pag ginawa yan ang tingin ko i-ve-veto lang ng President,” Ortiz-Luis said in the 17 July DZXL interview.
(“We want to hear the President repeat that he has already convened the regional wage boards and that wages are already being raised so that efforts to refile [legislated wage hike bills] will stop. They know nothing will come out of it because I think [these attempts] will just be vetoed by the President.”)
P50 Metro Manila minimum daily wage
Ortiz-Luis was referring to the fact that the regional wage board has raised by P50 the minimum daily wage in Metro Manila, and that other areas countrywide will soon have their minimum wage rates reviewed and adjusted by their respective wage boards as well.
The P50 daily wage hike for Metro Manila was approved on June 30 and will take effect on July 18, one year after the previous wage increase on July 17, 2024.
Ortiz-Luis’s statement is also in response to reports that several senators have again filed legislated wage hike proposals for the 20th Congress.
To recall, in the 19th Congress, legislated minimum wage hike bills of P200 and P100 were filed by lawmakers but these measures did not see passage.
Relatedly, PHILEXPORT has also identified other priority legislations on its wish list that the exporters’ group hopes the President will give top attention to.
Amend, enhance MSMEs Magna Carta
One of these measures is the bill proposing to amend and enhance the Magna Carta for Micro, Small and Medium Enterprises (MSMEs), the law that mandates the government to promote MSME development by providing various assistance, incentives, and support to small entrepreneurs.
The proposed bill seeks to extend the mandatory allocation of MSME loans by banks and to remove the Bangko Sentral ng Pilipinas regulatory cover on SB Corporation to allow the latter to grant more development loans to MSMEs.
In May, Ortiz-Luis said MSMEs in the Philippines were the most “underbanked” among their peers in the Association of Southeast Asian Nations (ASEAN).
He cited reports that in 2019, banks lent out only US$11.6 billion to Filipino MSMEs, the smallest MSME bank loan total for that year among the ASEAN-5, comprised of Indonesia, Thailand, Malaysia, Philippines and Singapore.
Legislative reforms
Ortiz-Luis had said the business sector’s wish is for the incoming Congress to institute legislative reforms that will put sufficient budget into MSME development amid ongoing initiatives to amend the Magna Carta for MSMEs.
Another bill backed by PHILEXPORT is the Customs Amnesty Bill, which aims to help raise additional government revenues through voluntary disclosure without imposing new taxes, clear the Bureau of Customs of pending liquidation accounts, and prevent alleged harassments of importers using these pending transactions.
PHILEXPORT is likewise pushing for the swift passage of these bills:
• International Maritime Trade Competitiveness Act: The bill will address the high shipping costs to and from the Philippines by ensuring that charges are reasonable and based on international best practices.
• CAAP Charter Amendment: This seeks to propose reforms aimed at transferring the functions of the Civil Aviation Authority of the Philippines to a new entity outside of CAAP.
• National Quality Infrastructure Act: This bill aims to institutionalize the development of a national quality infrastructure to boost Philippine export competitiveness and increase exporters’ participation in the global value chain.
• Konektadong Pinoy Bill: This measure seeks to expand internet access across the country and ease the entry of new players in the data transmission industry.
• PhilPorts Act: The measure wants to decouple the regulatory and developmental functions of the Philippine Ports Authority (PPA), with the PPA focusing on port development and the Maritime Industry Authority taking over its regulatory functions.