The Management Association of the Philippines (MAP) is urging the government to focus on reducing high costs across commodities and services to alleviate the burden on minimum-wage-earning Filipino workers and their families.

MAP, comprising the country’s leading business executives, stated that the executive and legislative branches of the government should focus their attention on the unbalanced wage-to-cost ratio nationwide.

“We have the third highest minimum wage in Asia, and some of the highest costs—especially of food, power, transportation, and housing,” MAP said.

“Our basic problem is not low wages, but high costs,” it added.

The influential business group stated it does not support the recent passage of the proposed ₱200 daily minimum wage increase in the House of Representatives.

While MAP said it supports initiatives to improve the lives of minimum-wage workers, the group argues that the proposed wage hike necessitates further review and consultation.

“We, in the [MAP], support initiatives that help improve the lives of all minimum-wage earning Filipino workers and their families. However, we do not support the ₱200 daily wage increase which was approved recently by the House of Representatives,” it said.

MAP said the bicameral conference committee—comprising the Senate and the House—should conduct further consultations with all affected sectors before reaching a decision.

Since many factors have to be taken into account, the group emphasized the need to include the views of employers, employees, consumers, and government agencies.

MAP likewise urged the committee to consider the potential impact of the proposed wage hike on inflation and business sustainability.

It noted that this could particularly impact the millions of small enterprises that “struggle just to survive.”

“We also suggest that it be researched as to whether setting a national minimum wage, or regional ones instead, be considered,” it added.

As such, MAP said the government should prioritize reducing costs to help make the Philippines more export-competitive,

The group, headed by its president Al Panlilio, said there should be a strong push to address “inefficiencies across all sectors to improve overall productivity and reduce all forms of waste.”

“We also make an appeal to employers to help alleviate the plight of the minimum-wage earners by implementing urgent measures, like paying their employees’ share in SSS, Pag-IBIG and PhilHealth contributions, sharing with their employees at least 20 percent of their organizations’ net income before tax, among others,” said MAP.

Aside from MAP, other business groups such as the Makati Business Club (MBC), the Philippine Chamber of Commerce and Industry (PCCI), and the Employers’ Confederation of the Philippines (ECOP) have expressed their opposition to the House-approved wage hike measure.